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September 2017

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Hydrocarbon Engineering

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Copyright© Palladian Publications Ltd 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying,

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do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK. Uncaptioned images courtesy of www.shutterstock.com.

CONTENTS

THIS MONTH'S FRONT COVER

September 2017 Volume 22 Number 09 ISSN 1468-9340

03 Comment05 World news12 The UK in focus

Nunzia Florio, UKPIA, UK, discusses the downstream oil sector in the UK, and the challenges it is set to face following the nation’s decision to leave the EU.

118 A digital ecosystemMarcio Donnangelo, Emerson Automation Solutions, USA, discusses how installing wireless transmitters can help refineries to improve operations and reduce the number of unscheduled outages, while being safer and more energy efficient.

125 Tracking trendsMichael Sanches, Airswift, USA, presents an objective perspective on petrochemical hiring trends in the downstream sector.

129 The recruitment round-upAndrew Duffy, Petroplan, USA, analyses the ongoing trends for recruitment in the downstream oil and gas industry, particularly following the rise of LNG projects.

131 Right here, right nowDavid Wright, Bilfinger, UK, discusses the art of resourcing plant turnarounds and finding the right people, in the right place, at the right time.

133 Training to be the bestJennifer Gaines, Sulzer, USA, explains why it is essential that every business has a skills training programme in place to ensure that the next generation retains the skills and expertise of experienced workers.

138 Defend against silicon poisoningPeter Piotrowski, Honeywell UOP, USA, and Austin Schneider, Crystaphase, USA, provide a case study in how refineries can proactively protect against unexpected silicon poisoning.

143 A refreshing boostGene Mueller, Dr Michael Severance, and Dr Axel Düker, Clariant Catalysts, examine how a new generation of phosporic acid catalysts can lead to more profitable and sustainable fuel upgrading in FCC refineries.

149 Achieve high, aim lowAndy Huang, Gary Cheng, Ann Benoit, and Bob Riley, W. R. Grace & Co., USA, explain how refiners can meet the need for higher octane gasoline while ensuring sulfur content remains within regulations.

155 Afterburn reliefRon Butterfield, Tom Ventham, Paul Diddams and Martin Evans, Johnson Matthey, explore how to prevent FCC afterburn in the downstream industry.

161 Optimum design of fuels blend headerDr Suresh S. Agrawal and Meena S. Agrawal, Offsite Management Systems LLC, USA, discuss the design of a fuels blend header for an in-line blending system.

167 Rising from the ashesThomas R. Kline, Structural Technologies, USA, explores how a solution-oriented response and effective decision-making can restore a refinery safely after a fire incident.

173 Keeping a watchful eyeScott W. Sexton, Haldor Topsoe Inc., USA, discusses how monitoring furnace fireboxes, burners and tube temperatures improves operations, safety, reliability, efficiency and life cycle.

178 Take advantageChris Wajciechowski, Alfa Laval, USA, explains how the introduction of welded plate heat exchangers has optimised naphtha hydrotreater efficiency at a major refinery on the US Gulf Coast.

183 Heating upIlan Toledano, Wattco, USA, advises on how to pick the right thermal fluid heating equipment and provides an overview of the use of circulation heaters in the petrochemical industry.

187 Focus on right temperaturesHarpal Singh, Bartec Singapore, explains why heat tracing systems are a crucial element of petrochemical production, with reference to a recent project carried out for PTT Phenol in Thailand.

190 Tanks of steelQuinten Eyckmans and Daria Astakhova, Madesta, Switzerland, outline the important role that steel plays in the construction of storage tanks.

195 Casting callUwe Kellner and Hans-Jürgen Steinhart, Zollern GmbH & Co. KG, Germany, introduces high performance metals and alloys for use in the downstream oil and gas industry.

101 New mediaGregory Hallahan and Caleb Smathers, ProSep, USA, and Jeff Myers, Williams, USA, examine the effective removal of BTEX from rich water to reduce the concentration of BTEX in reclaimed methanol using a new media system.

106 Water treatment Q&AHydrocarbon Engineering questions a number of water treatment experts about R&D, regulatory compliance, productivity improvements and the overall market outlook.

As silicon’s popularity in upstream processes has soared, refineries are discovering a nasty side effect: shorter catalyst life, more unit reloads and unplanned downtime due to silicon contamination in the refinery chain. Learn how refineries can proactively protect against unexpected silicon poisoning with this informative case study from Crystaphase and Honeywell UOP (p. 38).

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APPLICABLE ONLY TO USA & CANADAHydrocarbon Engineering (ISSN No: 1468-9340, USPS No: 020-998) is published monthly by Palladian Publications Ltd GBR and distributed in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831. Periodicals postage paid New Brunswick, NJ and additional mailing offices. POSTMASTER: send address changes to HYDROCARBON ENGINEERING, 701C Ashland Ave, Folcroft PA 19032

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COMMENTCALLUM O'REILLYEDITOR

W hile many of us in the northern hemisphere have been enjoying our summer holidays over the last couple of months, September

is often synonymous with a return to work, school or university/college. It also signals the

start of graduate recruitment season – that time of year when a horde of new graduates take their first steps into the big wide world of work.

For an industry with a well-publicised skills shortage, attracting this new generation of workers is essential. It is particularly pertinent given the rising emergence of digitalisation within the sector, which has elevated the importance of IT expertise. In a recent survey of 2000 workers in the energy sector, Petroplan found that 34% of respondents concur, citing IT skills as a growing requirement in the industry.1

Petroplan’s report emphasises the increasingly important role that graduates have to play as they “can provide the new ideas that will make the future easier to navigate.” The report rightly argues that it shouldn’t be difficult to engage younger employees in the oil and gas industry due to the wealth of innovation within the sector. However, it warns that the next generation of workers are “seeking roles with more collaboration and open communication and less top-down decision making.”

This, of course, leads us onto the next big workforce challenge for the sector. Attracting the next generation of talent is one thing, but retaining them is quite another. While corporate culture, pay, benefits, and job security are all important to workers, so is the opportunity to learn and develop their talents. And just as it is critical to teach the older generation of workers the new skills that they will need to thrive in an era of increased digitalisation, it is essential to ensure that practices are in place to enable the younger workforce to absorb the knowledge and skills of their more experienced colleagues. Airswift’s Global Energy Talent Index (GETI) suggests that just 6% of the workforce in the downstream sector is aged 18 – 24. Although this is a higher proportion of young workers compared to other energy sectors, it is still relatively low, highlighting the importance of adequate knowledge transfer from one generation to the next.

In this issue of Hydrocarbon Engineering, Sulzer outlines the value of investing in a comprehensive skills training programme and provides details about its approach to internships (p. 33). The company argues that effective training is essential to gather, retain and share knowledge, which is the ultimate goal to benefit both its internal staff and its customers.

You can also read more about Airswift’s GETI and the company’s perspective on hiring trends in the petrochemical sector, starting on p. 25 of this issue. Continuing the theme, Petroplan has contributed a piece looking at the recruitment market in the downstream oil and gas industry (p. 29) and Bilfinger has offered its insights on how to tackle resourcing challenges during a plant turnaround (p. 31).

1. ‘Talent Insight Index 2017’, Petroplan, (July 2017).

WORLD NEWS

September 2017HYDROCARBON ENGINEERING

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Russia | Mammoet extends work at ZapSibNeftekhim

P JSC Sibur has announced that it has extended its contract with

Mammoet Russia, which will cover the unloading of more than 300 oversized and heavy components, with a combined weight of 20 000 t, from the river port in Tobolsk. Subsequently, Mammoet will transport and install these components at the ZapSibNeftekhim Petrochemical Complex construction site in West Siberia.

ZapSibNeftekhim will become the largest modern petrochemical facility in Russia. The project incorporates a steam cracker with a capacity of 1.5 million tpy of ethylene, around 500 000 tpy of propylene and 100 000 tpy of butane-butylene fraction (BBF). Alongside the steam cracker, units are being constructed to produce various grades of polyethylene and polypropylene to a total capacity of 2 million tpy. The facility is designed for deep conversion of a substantial portion of byproducts of oil and gas extraction, including associated gas. It also aims to provide import substitution for polymers that are in high demand for the Russian market. The facility will contribute significantly to the economic development of Tobolsk.

USA | Wood Group awarded refinery maintenance contract

Phillips 66 has awarded Wood Group a five-year contract to

provide supplemental maintenance services and support for small capital construction projects and turnarounds to the Sweeny Refinery.

Wood Group confirmed that 175 of its employees will be based at the refinery, which is located approximately 65 miles southwest of Houston, Texas. These employees will provide the maintenance services.

Wood Group has supported the refinery for more than 20 years, providing speciality heating, ventilation and air conditioning (HVAC) and construction services, and upgrades to the process controls, alarms and environmental data management systems.

Andrew Stewart, CEO for Wood Group’s Asset Life Cycle Solutions business in the Western region, said: “This contract builds

on our long-standing relationship with Phillips 66 supporting the Sweeny facility and other downstream and chemical assets across the US.

“We look forward to providing cost-effective services and efficient manpower practices to improve the refinery’s performance across our maintenance, small capital construction, and shutdowns and turnarounds programmes.”

Kuwait | Saipem wins Al Zour refinery contract

Saipem has been awarded a contract worth approximately

US$850 million. Its activities under the contract involve engineering, procurement, construction and commissioning for the ‘Feed Pipelines for New Refinery Project’ (NRP) in relation to the development of the new Al Zour refinery, which is located in the south of Kuwait.

The contract was awarded to Saipem by the Kuwait Oil Co. (KOC), a subsidiary of the Gulf country’s

national oil company, the Kuwait Petroleum Corp. (KPC).

The scope of work comprises the construction of a system pipeline of various diameter and approximately 450 km in length, for the transportation of crude oil and gas from various KOC South Tank Farm manifolds to the new Al Zour refinery. The project also includes the realisation of a network for the transportation of the refined products to the storage areas present in the refinery of Mina Al Ahmadi.

USA | KPE wins contract from Targa

Targa Pipeline Mid-Continent WestTex LLC, a subsidiary of Targa

Resources Corp., has awarded KPE a contract to provide engineering, procurement and construction (EPC) for a 200 million ft3/d natural gas cryogenic processing facility located near Midkiff, in the Permian Basin of West Texas.

The facility will include a condensate stabiliser, low pressure compression, intermediate compression, custody transfer metering, slug catchers and a control system for processing raw natural gas into merchantable natural gas by extracting NGLs and removing

impurities. KPE has confirmed that the contract is valued in excess of US$100 million.

William E. Preston, KPE’s President and Chief Operating Officer (COO), said: “This award, the third major project for Targa within the past 18 months, is the result of substantial collaboration between Targa and KPE that ensured the project’s advanced process design is efficient and cost-effective [...] The cryogenic gas plant will allow Targa to increase its NGL extraction capacity, and we look forward to helping them build on their gas processing capabilities in the Permian Basin.”

WORLD NEWSIN BRIEF

September 2017 HYDROCARBON ENGINEERING

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USA | Jacobs extends master services agreement with Chevron

Jacobs Engineering Group Inc. has signed a master services

agreement (MSA) expansion amendment with Chevron Products Company (Chevron) to provide elective construction management (CM) services on an as-needed basis at the company’s refineries in El Segundo and Richmond, California; Pascagoula, Mississippi; and Salt Lake City, as well as at various terminals across the US.

In addition to providing existing engineering and procurement services, the MSA amendment allows Jacobs to provide integrated project delivery (IPD) solutions to Chevron in the above-mentioned locations.

IPD is a project delivery approach that integrates people, systems, business structures and innovative practices into a process that optimises project results, increases value to facility owners, reduces hours in the field and rework and maximises efficiencies through all phases of the project.

Jacobs Global Field Services Senior Vice President and General Manager, Valerie Roberts, said: “As an experienced IPD provider, we will support Chevron’s facility and business objectives while delivering engineering, procurement and construction management services at the company’s US refineries and terminals.”

Saudi Arabia | Shell completes sale of SADAF share to SABIC

Shell has announced that it has completed the sale of its 50%

share in SADAF to SABIC for US$820 million.

The sale of the petrochemicals joint venture, located in Al Jubail, was originally announced in January 2017.

Completion follows anti-trust filings in the relevant countries and regulatory approval from the Kingdom of Saudi Arabia.

This acquisition will enable SABIC to optimise operations at SADAF and further invest in the facilities, integrating them with the company’s other affiliates.

In a statement, Shell said that the sale will enable the company to focus its downstream activities and make selective investments to support the growth of its global chemicals business.

malaysiaPetronas Refinery and Petrochemical Corp. Sdn. Bhd has awarded Fluor Corp. an engineering, procurement and construction management contract for an isononanol plant located in Pengerang, Johor. The project is part of Petronas’ Refinery and Petrochemical Integrated Development (RAPID) project and the US$27 billion Pengerang Integrated Complex development.

usaUS state agencies have recently announced final approval of new regulations to strengthen workplace and environmental safety at oil refineries across California. The regulations take effect on 1 October 2017. The regulations implement key recommendations of the Governor’s Interagency Working Group on Refinery Safety, which was created after the 6 August 2012 Chevron refinery fire.

finlandNeste has announced plans to begin a two-month shutdown at its refinery in Naantali. The major turnaround will complete a plan that was first introduced in 2014 to implement closer integration of the operations of two Finnish refineries under uniform management. The Finnish refinery operations of Neste consist of four production lines at the Porvoo refinery, and one in Naantali.

indiaMetso has signed four non-exclusive distribution agreements in India for its valve products. The agreements with Fluidline Systems, General Energy Management Systems Ltd, SB Enterprise and Proflo Systems were signed during 1H17.

China | Mogas receives valves order

Mogas Industries Inc. has received contracts to supply severe service

isolation valves for a new heavy oils construction project on ChangXing Island in Dalian City Liaoning, China.

Mogas will provide Hengli Petrochemical (Dalian) Refinery Co. Ltd, China, a subsidiary of Hengli

Group, with over 950 valves that will be used in a variety of severe service applications in the ebullating bed unit, including high pressure letdown isolation, catalyst isolation and many high cycle, thermal shock applications.

Delivery of these valves is scheduled for early 2018.

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WORLD NEWSIN BRIEF


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USA | Calumet to sell Superior refinery

Calumet Specialty Products Partners L.P. has signed

agreements to sell the ownership of its Superior, Wisconsin refinery and various related assets to Husky Superior Refining Holding Corp.

Tim Go, CEO of Calumet, said: “This transaction provides both financial and strategic benefits for our unitholders, as we further position Calumet to move forward on our stated objectives including strengthening our balance sheet, lowering our leverage, and freeing up capital resources that will allow

us to better invest and fund future EBITDA enhancing growth strategies within our core Specialties portfolio. The transaction also reduces our go-forward exposure to commodity pricing and volatility.”

Under the agreement, Husky will pay US$435 million in cash, plus an additional payment for net working capital, inventories, and reimbursement of certain capital spending. The transaction is subject to customary closing conditions and regulatory approvals.

canadaGreenfield Global Inc. has commenced a feasibility study to significantly expand operations for sustainable biofuel production at its biorefinery in Varennes, Quebec. The potential expansion stands to increase its annual ethanol production capacity by 70%. The feasibility study will also incorporate the adaptation of emerging advanced biofuels technologies using non-traditional feedstocks and processes, including cellulosic ethanol, renewable diesel and renewable natural gas.

swedenThe Linde Group has received a contract to engineer and supply a modular hydrogen manufacturing unit for the St1 Refinery in Gothenburg. Linde’s Engineering Division will start the engineering and construction of the unit immediately, with the completion estimated for the end of 2018.

usaHoneywell Process Solutions has announced that its ControlEdgeTM Programmable Logic Controller (PLC) has received ISASecure® Embedded Device Security Assurance (EDSA) Level 2 certification by exida, the ISO 17065 accredited certification body who conducted the assessment.

pakistanWAKGROUP and Guangdong Electrical Design Institute (GEDI) have singed an EPC agreement to engineer, design and construct the state-of-the-art Falcon Oil Refinery at KP Pakistan. The oil refinery is a deep conversion and has the capacity to produce up to 100 000 bpd. The project is expected to be completed 30 months after work has commenced.

Mexico | Jacobs wins ammonia rehabilitation project contract

PEMEX Fertilizantes has awarded Jacobs Engineering Group Inc. a

contract to deliver project management contract (PMC) services for the Ammonia IV Rehabilitation Project in the Cosoleacaque Petrochemical Complex in Veracruz.

The Ammonia IV plant and its associated auxiliary facilities are

being rehabilitated in order to restore its operating design capacity and reduce the risks associated with non-programmed shutdowns and abnormal operations.

As PMC contractor for PEMEX Fertilizantes, Jacobs will supervise the EPC contractor developing the Ammonia IV Plant Rehabilitation.

India | IndianOil to expand Gujarat refinery capacity

IndianOil has approved the expansion of its Gujarat refinery

from its existing 13.7 million tpy crude oil processing capacity to 18 million tpy. The project will cost approximately Rs 15 034 crore.

The project will include the proposed upfront execution of a new 15 million tpy atmospheric vacuum unit (AVU) with associated utilities to replace the four atmospheric units and two vacuum units that are currently installed at various stages of the refinery’s phase-wise capacity.

The execution of the 15 million tpy AVU in 50 months after Stage-1 approval, ahead of other units by about 11 months, will provide impetus to the total project execution and will accrue significant savings and improved energy efficiency by way of operation of a new, large size AVU in place of existing small units. Commissioning the new AVU almost a year ahead of other units will also help in smooth commissioning and stabilisation of other downstream secondary processing units.

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WORLD NEWS


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China | DuPont wins repeat order

DuPont Clean Technologies has been awarded a contract to

supply the China Petroleum & Chemical Corp. (Sinopec) with a second STRATCO® alkylation unit. This unit is for Sinopec Qilu Petrochemical Corp., a large scale refiner and producer of petrochemicals, fertilizers and chemical fibre in Zibo, Shandong Province.

In order to comply with the China V standard of 10 ppm sulfur content for fuel, Sinopec commissioned DuPont for the license, engineering and equipment of a the alkylation unit. It will enable Sinopec Qilu to generate low-sulfur, high-octane, low-Rvp alkylate with zero olefins that meets

the criteria of the China V standard. Startup is targeted for mid-2018.

The Sinopec Tianjin Company (TPCC) had previously awarded a contract to DuPont for a STRATCO alkylation unit at its oil refinery in the Tianjin Binhai New Area district in northern China. The Tianjin alkylation unit startup is scheduled for mid-2018.

Due to plot space limitations within the refinery, DuPont has designed the alkylation unit with Model 74 ContactorTM reactors, which have been developed to reduce the number of reactors in an alkylation unit. This reduces the required plot space and lowers overall capital cost, while offering high reliability and on-stream time.

Oman | DRPIC to award US$2 billion contract

In a 50/50 joint venture, Samsung Engineering and

Petrofac have received notification of intent by Duqm Refinery and Petrochemical Industries LLC (DRPIC) for a contract worth approximately US$2 billion in southern Oman.Petrofac and Samsung’s scope of

work includes engineering, procurement, construction, commissioning, training and start-up operations for all of the utilities and offsites at Duqm.

Work on the 47-month project will commence soon, subject to financial closure and full notice to proceed from DRPIC.

France | Amec Foster Wheeler receives refinery FEED contract

Amec Foster Wheeler has been awarded a front-end engineering

design (FEED) contract by Total Raffinage France, a subsidiary of Total, for its Donges refinery.

The project, comprising a new vacuum gas oil hydrotreater unit and sour water stripping unit, as well as modification of existing units and new interconnections, is part of the investment planned by Total to upgrade its Donges refinery, improving its performance. The refinery

currently lacks desulfurisation capacity, and a significant proportion of its fuels are, therefore, exported as they no longer meet fuel quality European Union specifications.

Amec Foster Wheeler will support the modernisation of Total Raffinage’s Donges refinery by combining its refinery FEED expertise, integrated engineering systems capabilities and its Asset Information Hub with the visualisation and digital asset virtual plant technology.

DIARY DATES27 - 28 SeptemberTank Storage AsiaSingaporewww.tankstorageasia.com

2 - 4 October AFPM Operations & Process Technology SummitAustin, Texas, USAwww.afpm.org/conferences

7 - 10 October Middle East PetrotechBahrainwww.mepetrotech.com

10 - 12 October ASIA-TECH / ASIA-CATBali, Indonesiawww.europetro.com

31 October - 2 November 2017 Chem ShowNew York City, USAwww.chemshow.com

6 - 9 November Sulphur 2017Atlanta, Georgia, USAwww.sulphurconference.com

13 - 15 November ERTC Annual MeetingAthens, Greeceertc.wraconferences.com

29 - 30 November Tank Storage GermanyHamburg, Germanywww.tankstoragegermany.com

4 - 7 December BBTC MENA 2017 / ME-CAT 2017Bahrainwww.bbtc-mena.biz / www.me-cat.biz

11 - 15 June 2018ACHEMA 2018Frankfurt, Germanywww.achema.de

At the end of the day, you want a technology supplier who works with you.

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You’re committed to progress and success. We’re committed to you. And we demonstrate our commitment through licensing world-class refining, gas, chemical technologies and specialty catalysts that drive exceptional performance. You can count on our proven technology and long-term collaboration to help you keep pace with the increasingly complex challenges of today’s evolving marketplace. From initial consultation through plant startup and beyond, our global team offers you practical guidance based on years of real-world operating experience. Our goal is your success. Learn more about how we can work together to grow your business. www.catalysts-licensing.com

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You’re committed to progress and success. We’re committed to you. And we demonstrate our commitment through licensing world-class refining, gas, chemical technologies and specialty catalysts that drive exceptional performance. You can count on our proven technology and long-term collaboration to help you keep pace with the increasingly complex challenges of today’s evolving marketplace. From initial consultation through plant startup and beyond, our global team offers you practical guidance based on years of real-world operating experience. Our goal is your success. Learn more about how we can work together to grow your business. www.catalysts-licensing.com

September 2017 12 HYDROCARBON ENGINEERING

Nunzia Florio, UKPIA, UK, discusses the downstream oil sector in the UK, and the challenges it is set to

face following the nation's decision to leave the EU.

September 201713HYDROCARBON ENGINEERING

T he downstream oil sector in the UK is a significant contributor to the country’s economy and growth, and provides vital products that are relied upon daily. From lubricants, petrochemicals and heating fuels, to road and

construction, paints and solvents, and carbon electrodes for the aluminium sector, the downstream oil industry is responsible for providing the building blocks for many products that are fundamental to the way life is lived today and for future innovations.

Today, the sector supplies over 34% of the UK’s primary energy needs and powers 96% of its transportation energy demand.1 Domestic UK oil refining and marketing assets also make a substantial contribution to the UK economy, supporting the employment of 88 100 people and many more jobs in related industries that depend on a strong, competitive refining and marketing industry. The annual


14

contribution of the six UK refineries to the economy is some £2.3 billion,2 with each estimated to inject approximately £60 million locally,3 in addition to the value of its production output. If the activities of the UK’s North Sea oil production sector are included, an additional £9 billion4 can be added to the annual contribution to the UK economy.

Crude oil in its natural state is of no use until it has been processed at an oil refinery and converted into usable products. Therefore, refineries somewhere are required to process UK production and the two sectors cannot be entirely segregated. The UK downstream oil industry also fosters skills, knowledge and expertise in associated scientific, engineering and technical disciplines in areas of the UK economy that require the high quality jobs the sector provides directly and through the industries that are linked to its production.

To 2035 and beyond, is it projected that the transportation sector in the UK will continue to rely on petroleum products for approximately 90%5 of its energy needs, due to a combination of factors such as their comparatively low cost and an established infrastructure. The chemical sector will continue to depend upon petrochemical feedstocks for the production of plastics and polymers that are used in everything from medical

equipment and pharmaceutical products, cosmetics and clothing, to computers, wind turbines and solar panels. Overall, petroleum products are expected to continue powering over one-third of the UK’s total energy needs.4

With oil products expected to continue representing an essential part of the nation’s energy supply mix well into the future, the critical importance of the downstream oil sector cannot be overstated. Globally, the outlook is not dissimilar with vital oil derived feedstocks’ demand from refineries to the chemical sector expected to increase by approximately 45%5 to 2035, with rising prosperity stimulating demand for fertilizers, plastics and other chemical products. Global transportation demand is also expected to continue being largely fuelled by petroleum products, as no other transportation fuel provides more energy by volume than gasoline, and diesel is more easily stored as an energy source in lorries and cars. Liquid petroleum-based fuels currently account for well over 90%6 of global transport energy demand. By 2040, the International Energy Agency (IEA)6 estimates that the total global passenger vehicle stock is to increase by a factor of two, to around 2 billion vehicles, and that demand for road freight transport is to

grow strongly, representing around one-third of net global oil demand growth. Demand in areas such as aviation and international shipping is also set to increase.

Road transport fuels in the UKIn the year ending September 2016, the Department for Transport estimates that 320 billion7 vehicle miles were travelled on Great Britain’s roads, with total traffic 1.8% higher than the pre-recession peak of 2007. Rolling annual motor vehicle traffic has continued to increase each quarter in succession for the past 15 quarters due to a number of factors, including population growth, personal travel choices and a growth in demand for goods and services. Over the last 20 years, traffic has increased across all vehicles types, with car traffic increasing by 12%, van traffic by 70% and lorry traffic by 5.5%. Currently, petrol and diesel powered vehicles account for 99% of the UK’s passenger car fleet, with petrol cars representing 61.2% of the total and diesel vehicles 37.8%. The balance is made up of LPG and other gas and electric vehicles.

To 2035, it is estimated that petrol and diesel cars will continue to account for just under 90% of total new car registrations across Europe.9 At present, they account for the vast majority

Figure 1. Licensed cars in Great Britain by fuel type (thousand).8

Figure 2. UK new passenger car registrations (thousand).8

Latest News

JAX LNG RECEIVES FACILITY AND BUNKERING APPROVAL JAX LNG LLC has received a letter of acceptance from the US Coast Guard (USCG) for the operation of its waterfront LNG facility, along with approval to conduct ship-to-ship (STS) LNG bunkering operations with TOTE Maritime’s Marlin Class ships and the LNG barge, Clean Jacksonville. This STS LNG bunkering operation is expected to commence in early 2018.

PEMEX TO CARRY OUT REFINERY MAINTENANCE WORKPetróleos Mexicanos (Pemex) has announced that it will carry out an extensive and intense maintenance programme at the Francisco I. Madero refinery in Ciudad Madero, Tamaulipas, Mexico.

BASF TO PROVIDE CATALYSTS FOR ENERGY STORAGE PROCESSBASF and bse Engineering have signed an exclusive joint development agreement, under which BASF will provide custom-made catalysts for a new chemical energy storage process. The process will enable economically viable transformation of excess current and off-gas carbon dioxide into the chemical energy storage methanol in small scale, delocalised production units.

CLOUGH AMEC SECURES AMMONIA MAINTENANCE CONTRACTAmec Foster Wheeler’s joint venture (JV), Clough AMEC, has entered into Australia’s petrochemicals sector after securing a contract to provide maintenance services to the Yara Pilbara Fertilisers Pty Ltd (YPFPL) and Yara Pilbara Nitrates PTY (YPNPL) ammonia facilities. This is a five-year deal, with an option to extend to 2027.

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16

(approximately 97%) of all new cars sold in the UK, with the balance made up of LPG and other gas and electric vehicles. On average in the UK, 2 – 2.5 million new cars are registered every year and, typically, a vehicle will remain in the car parc for a period of 12 years.

Across Europe, in around two-thirds of Member States, registrations of new passenger cars powered by diesel engines have outnumbered new petrol powered cars for a number of years.10 Principally owed to a fiscally driven dieselisation of the private car fleet and a marginal growth in commercial diesel consumption, diesel demand in the UK has been increasing steadily for the past three decades and now accounts for over 63%1 of total road fuel sales in the UK. This has created a substantial imbalance with refining output. The UK has only six refineries remaining and they are unable to produce sufficient volume to cover this demand. For this reason, significant diesel imports (48%1 of demand) mostly from Russia are now required to maintain the UK’s diesel supply/demand balance while, at the same time, the UK exports surplus petrol production. However, diesel demand is expected to peak in 2017 before declining to 2008/09 levels by 2035,9 also owing to greater vehicle efficiency gains. The UK is already classed at high energy security and resilience risk for diesel and jet fuel, importing around 60% jet fuel and, as indicated, 48% of diesel demand, according to the IEA’s Model of Short-Term Energy Security (MOSES). It is estimated that further refinery closures would result in jet and diesel imports increasing to more than 80% of market demand, leaving the UK even more exposed to the international traded product market for those products already at high risk. For this reason, sustaining and maximising domestic production will be key to ensuring a secure and reliable energy future, and one that underpins the UK’s economic strength and growth.

Powering the UK’s futureLooking ahead, it must be ensured that an environment where the sector can continue to thrive to the benefit of all is created, particularly as the UK looks to build a new relationship with the EU and a meaningful energy and industrial strategy. In terms of what industry wants more broadly from an industrial strategy, above all, it must ensure confidence in the business and regulatory environment. The downstream oil sector competes in a global market and requires a stable, long-term legislative framework, which promotes a level playing field, ensuring competitiveness both within Europe and also globally.

A sound industrial strategy for the UK should thus be based on clear guiding principles, including a competitive free market operating within a clear, robust and well designed legal, fiscal and

regulatory framework. If such a framework is lacking, it not only discourages investments but disadvantages domestic manufacturing with respect to other world regions with which UK industries compete. This, in turn, has the potential to further erode the country’s energy resilience, industrial fabric and subsequent opportunities for employment and growth. For this reason, getting an industrial strategy right is a precondition for the success of the wider economy. The government must also value and remain cognisant of the downstream oil sector’s value in terms of research, development and innovation efforts, which are important drivers of competitiveness and widely recognised as key to improving prosperity and growth. For example, the industry employs one of the largest percentages of highly skilled labour amongst manufacturing sectors, and has one of the highest knowledge intensities. The downstream oil sector is also important in the employment arena for chemical and engineering graduates, those with related vocational skills, and training and apprenticeship opportunities. These unique capabilities should be fully acknowledged and enabled through the promotion of a long-term vision in collaboration with UK industry to aide both productivity and social mobility. Designed correctly, an industrial and energy strategy for the UK can provide the necessary focus and the visibility that the sector deserves. In addition, following the UK’s vote to leave the EU in June 2016, it is vitally important that the government works collaboratively with industry to ensure that the many challenges arising can be tackled, risks managed and opportunities seized.

ConclusionTo help shape this new reality for the UK, with the right policy environment, the downstream oil sector stands ready to apply maximum effort in its contribution to jointly work towards a secure energy future for the UK, strengthen and grow the economy, and ensure a thriving industrial base and supply chain for the benefit of generations to come.

References1. 'Digest of United Kingdom Energy Statistics (DUKES)',

BEIS, (2016).2. 'The role and future of the UK refining sector in the

supply of petroleum products and its value to the UK economy', IHS, (2013).

3. UKPIA data.4. BEIS, 'Updated energy and emissions projections

(including aviation)', (2016).5. 'BP Energy Outlook', BP, (2017).6. 'World Energy Outlook', International Energy Agency

(IEA), (2016).7. DfT, Provisional Road Traffic Estimates Great Britain:

October 2015 – September 2016. Cars and taxis: 249.4 billion vehicle miles. LGVs: 48.2 billion vehicle miles. HGVs: 17.1 billion vehicle miles. Other: 5.4 billion vehicle miles.

8. 'Vehicle Data', SMMT, (2017).9. 'Energy View to 2035', Wood Mackenzie, (2016).10. 'Passenger cars in the EU', Eurostat, (2016).

Legal Notice: The information contained in this publication is believed to be accurate and reliable, but is not to be construed as implying any warranty or guarantee of performance. Sulzer Chemtech waives any liability and indemnity for effects resulting from its application.

Tower Technical Bulletin Troubleshooting distillation columns – Part 1: The basics

Background Properly designed and operated distillation columns can provide long-term, trouble-free service. However, mechanical failure, process upsets, and other factors can occur, preventing the distillation system from achieving the expected design performance.

Taking a tower off-line is time consuming and expensive; before doing so it is important to have a good idea of what is causing the problem. A systematic study of the column should be made (often with the assistance of the column equipment provider). After careful study, a tower inspection should be performed to confirm the cause of the problem and to determine and/or provide a proper solution. In emergency cases, expected replacement equipment may need to be on site prior to the column opening.

Understanding mass transfer fundamentals is criticalKnowledge of the column thermodynamic and hydraulic functions is the key starting point. Any problem that develops that does not allow the vapor and liquid to contact each other in the manner for which the device was designed, or keeps the vapor and liquid from separating after contact, will adversely affect column performance. For example, the packing shown below will not provide good flow or vapor/liquid contacting efficiency because some of the packing is blocked off by fouling.

Where to startAsk yourself the following questions:

• What specifications are not being met? What could happen internally to create this issue?

• Is this a capacity problem? Has the column ever run successfully at these rates? If not, the internals may be at their capacity limit.

• Have there been any upset conditions that may have damage internals?

Working toward a solutionThe simple checks should be made first. Check the instrumentation to ensure that flows, levels, temperatures, and pressures are correct. Check to make sure that feed compositions and analyses are correct. Conduct a single gauge pressure survey and a temperature survey as possible. Perform a mass balance across the column—a closure of 3-5% is normally considered acceptable.

Once you have this information, review the information with plant engineering and operations. Consult with your equipment vendor to further investigate the problem. Decide on the feasibility of a column gamma scan. If practical, schedule a tower inspection at the first opportunity in order to personally examine the internals.

In the meantime, the problem may be temporarily alleviated by reducing rates, changing the reflux and reboiler duties, changing the feed location, and increasing or decreasing the tower pressure.

The Sulzer Applications GroupSulzer has over 150 years of in-house operating and design experience in process applications. We understand your process and your economic drivers. Sulzer has the know-how and the technology to design internals with reliable, high performance.

Sulzer Chemtech

North and South America Sulzer Chemtech USA, Inc.8505 E. North Belt Drive Humble, TX 77396, USAPhone: +1 281 604-4100 [email protected]

Europe, Middle East and India Sulzer Chemtech Ltd. P.O. Box 658404 Winterthur, SwitzerlandPhone: +41 52 262 50 [email protected]

Asia PacificSulzer Chemtech Co., Ltd. 10 Benoi Sector Singapore 629845Phone: +86 65 6515 [email protected]

Hydraulic evaluationSymptoms of hydraulic flooding include excessive or erratic pressure drop, reduced bottoms flow, reduced column temperature profile, and excessive liquid carryover. Conversely, low pressure drop is an indication of missing trays or packing.

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