Improvements in the

RFCC process

Feb 22nd. 2011

I. Outline of S-OIL Refinery

II. Improvements of RFCC after 2010 T/A1. Introduction of O2 Enrichment System

2. Flue Gas Cooler Modification

III. Summary

I. Outline of S-OIL Refinery

SPM

R&DR&D

#1/#2 CDU#1/#2 CDU

Lube/AromaticLube/Aromatic

BCC / #3 CDUBCC / #3 CDU

NHCNHC

※ Total Area : 2.5 mil. m2

■ View of Refinery

Outline of S-OIL Refinery

Improvements Of RFCC ’10 T/A

Summary

JAPAN

CHINA

O

SSeoul

UlsanOnsanPusan

Seoul ↔ Ulsan : 400 KmPusan ↔ Ulsan : 50 Km

CDU : 580,000 B/DHOC : 253,500 B/DLube : 30,000 B/DP-X : 700,000 TPABTX : 900,000 TPA

II. Improvements of RFCC after 2010 T/A

■ Outline of RFCC Unit

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

Feeds

Products

Objectives

R2R(RFCC)

HYVAHL-Residue (from HVL, storage)Treated VGO (from MHC, storage)Low sulfur Wax

Fuel Gas, Propane, Propylene, Butane, LCN (LLCN, MLCN, HLCN), HCN, LCO, SLO

Maximizing GasolineMaximizing Propylene

R2R is a proprietary commercial RFCC process name of Axens. (1 Reactor, 2 Regenerators)RFCC : Residue Fluid Catalytic Cracking

■ RFCC Scheme

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

SLURRY

LCO

HVY GASOLINE

GAS RECOVERYSECTION

FUEL GAS

PROPYLENE

PROPANE

C4

FEED

Fractionator

RISER

2nd Regenerator

1st Regenerator

CatalystCooler

R2 FLUE GASR1 FLUE GAS

750 ℃1.3 KSCG

660 ℃2.2 KSCG

525 ℃1.5 KSCG

COMBUSTION AIR

Stripper Packing

Disengager / Stripper

FGTU

L-L. GASOLINE

M-L. GASOLINE

H-L. GASOLINE

SHU

O2

■ Introduction of O2 Enrichment System

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

• Combustion Air Constraints (#1 Reg. Cyclone & Superficial Velocity Limitation)

• Feed Heaviness (MCR) Increase Charge Down 73,000 BPD (MCR 3.5 wt%) 62,000 BPD (MCR 4.8 wt% T-VR)

Operational Difficulty

• Secondary Air Blower Installation (2007 T/A)69,000 BPD 73,000 BPD (for 4 months of summer)

• Introduction of O2 Enrichment System (2010 T/A)73,000 BPD (MCR 3.5 wt%) 73,000 BPD (MCR 4.7 wt%)

• Additional Tube Cluster Installation of Catalyst Cooler (2010 T/A)+ 2 MMkcal/h heat duty is expected by O2 Enri. utilization (studied by S&W)

Progress

■ Introduction of O2 Enrichment System

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

• Actual Result In 2010T-VGO 2,000 BPD T-VR (MCR 3.77 3.89 wt%)

• Additional Treatment of T-VR according to feed availability

Results

• Slide / Plug Valve Size-up (2013 T/A)Conversion decrease due to treating heavier feed stock and CCR LimitationCCR Increase (C/O Ratio increase) in order to increase conversion

In the Future

■ O2 Injection Package

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

< O2 Injection Package> < O2 Diffuser>

• O2 Injection Package (O2 Skid, Control V/V, Flow Meter etc)• O2 Diffuser Installation at Main Air Tie• O2 Pay Meter Installation by Vendor (near B/L Gas O2 Pipe)

Installation Item

Investment Cost

Effect

1.4 mil. US $

Effect

T-VGO to T-VR 2,000 BPDT-VR Max (Test Run)

Outline of S-OIL Refinery

SummaryImprovements

Of RFCC ’10 T/A

Profit 5.8 mil. US $

IRR / Pay Out 764 % / 0.1 yr

■ Economic Analysis

■ Flue Gas Cooler Modification

Outline of S-OIL Refinery

SummaryImprovements

Of RFCC ’10 T/A

-. Flue Gas Treatment Unit Scheme

■ Flue Gas Cooler Modification

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

• Enforced Domestic Environmental Regulation In case of FGC Tube Leak, Unit S/D is needed due to CO regulation

• FGC Outlet Temp. High (near Mech. DSN Temp.)

Operational Difficulty

• Case Study ( FGC 1 Train Install. Vs FGC Modification)FGC Modification due to economics (studied by DuSan Heavy Industry)

• FGC ModificationSeparate 4 Modules for blocking leaked moduleInstall. Of Leak Detection SystemAnti-vibrating Device install. (Ultrasonic)New Economizer Install.

Progress

■ Flue Gas Cooler Modification

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

• HP Steam Production Increase (13.1 Ton/h)

Effect• Require reliability of leak detection system• Consistent Monitoring

In the Future

• Energy ConservationNew Economizer Install. (Solomon EII 0.17, HP Steam + 13.1 Ton/h)

• No Charge Loss in case of Tube LeakNo Tube Leak in 2010. (Future expectation)

Results

■ Flue Gas Cooler ModificationBefore Revamping

Outline of S-OIL Refinery

SummaryMajor Function

Of Q.M

■ Flue Gas Cooler ModificationAfter Revamping

Outline of S-OIL Refinery

SummaryMajor Function

Of Q.M

■ Economic Analysis

Investment Cost

Effect

10.1 mil. US $

Effect

HP Steam : + 13.1 Ton/h

Outline of S-OIL Refinery

SummaryImprovements

Of RFCC ’10 T/A

Profit 7.1 mil. US $

IRR / Pay Out 66 % / 1.7 yr

■ Summary

Outline of S-OIL Refinery

SummaryImprovements Of RFCC ’10 T/A

• O2 injection at #1 Regenerator• Additional Treatment of T-VR

O2 Enrichment

• Flue Gas Cooler Superheater Modification (4 Module)• New Economizer Installation• Additional HP Steam Production• No Charge Loss in case of Tube Leakage

Flue Gas Cooler Modification

■ Fluidization

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

the operation by which the fine solids are transformed into a fluid-like state

through contact with a gas or liquid

* R2R uses air and steam to fluidize catalyst.

Solid-like state Fluid-like state

■ Fluidization Regimes

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A

■ Fluidization Regimes

Outline of S-OIL Refinery Summary

Improvements Of RFCC ’10 T/A