Upgrading Oil Refineries for Clean Fuel Production
25 27 October 2010 Kingdom of Bahrain Organized Jointly by Organization of Arab Petroleum Exporting Countries (OAPEC) and National Oil and Gas Authority (NOGA) 2 GREAT SOCIALIST PEOPLES LIBYAN ARAB JAMAHIRIYA NATIONAL OIL CORPORATION UPGRADING OF AZZAWIYA REFINERY FOR PRODUCTION CLEAN FUEL 2010 3 TRIPOLI TOBRUK BREGA RASLANUF AZZAWIYA SARIR BANGHAZI SABHA REFINERIES LOCATIONS Refinery Capacity bbl/day Starting Date Type RASLANUF 220,000 1985 Topping AZZAWIYA 120,000 1974 Hydro skimming TOBRUK 20,000 1986 Topping SARIR 10,000 1988 Hydro skimming BREGA 10,000 1962 Hydro skimming Libyan refineries Capacities and Types Total Capacity = 380,000 bbl/day 5 Product Production Domestic / Demand Surplus/ Deficit(-) LPG 203 326 (123) Gasoline 770 2,907 (2137) Jet 1,876 588 1288 Diesel 4,163 5,059 (896) HFO 6,719 2,653 4066 Production / Demand Comparison k t/y -2009 Total Production = 13,731 k t/y 2010 Comparison of EU and Libyan Gasoline @ Diesel Specifications INDUSTRIAL DEPT 2010 Certain Libyan and EU Gasoline Specifications INDUSTRIAL DEPT Parameter Libyan Spec. EU Spec. RON 95 min 95 min Sulphur, ppm 150 max 10 max Olefins, vol. % 18 max 18 max Aromatics, vol. % 35 % max 35 % max Benzene, vol.% 4 %max 1 % max Oxygen, wt % 2.7 max 2.7 max 2010 Parameter Libyan Spec. EU Spec. Cetane index 50 min 46 min Sulphur, ppm 1000 max 10 max Flash point, 0 C 60 min 55 min Aromatic, wt % 11% max 11% max Density @ 15 0 C kg/m 2 Reported 820 - 845 Certain Libyan and EU Diesel Specifications INDUSTRIAL DEPT 2010 Libyan refining sector needs upgrading after years of sanctions. Libyans refining sector was hard hit by UN sanction which banned Libya from importing refinery equipment. Libya is seeking a comprehensive upgrade to its entire refining system, with a particular aim of increasing output of gasoline and other light products and enabling them to conform with new global fuel specifications. INDUSTRIAL DEPT NOC Strategies to meet the Latest Clean Fuels Specifications With the current trends for tighter specification for both gasoline and diesel, National Oil Corporation (NOC) has adopted a long - term strategy for meeting these new goals. The steps involved in the NOC strategy development are: 1. Producing clean fuels at the lowest possible cost, at the same time giving the best return on investment. 2. Developing a wide range of ideas for possible solutions to meet the objectives. 3. Developing a selected options for further consideration. 4. Costing the options and assessing the economic viability. 5. Recommending a strategy and an investment roadmap. 11 Improve Gasoline /Diesel Specifications. Conversion of HFO to Lighter Products. Maximize Diesel Production. Increase Gasoline Production to Cover Domestic Market. Refinery Petrochemical Integration. Transfer Latest Technology to Libya. Libyan Refineries Plans and Targets 2010 AZZAWIYA REFINERY UPGRADING PROJECT INDUSTRIAL DEPT Introduction Azzawiya Oil Refinery is the first Refinery to be built by National Oil Corporation in Libya. In 1974, the refinery began production with a nameplate capacity of 60,000 b/d and in 1977, capacity doubled to 120,000 b/d. The two units with an identical capacity of 60,000 b/d process Al Shararah (43 API) and Hamada ( 38 API ) crude oil with a ratio of 90 % and 10 % , respectively. Azzawiya Principal Activities 1. Refining of Crude Oil to produce LPG, St. Run Naphtha, Gasoline, Kerosene, Gas Oil and Fuel Oil. 2. Processing of Reduced Crude Oil to produce Asphalt. 3. Lubricating Oil Blending Plant (including Filling and Canning) to produce different grades of Lubricating Oils. 10/31/2010 . 90 1294 750 1000 1300 5000 REFINERY DESIGN CAPACITY Kerosene LPG Gasoline Gas Oil Fuel Oil Crude Quantities in KT/Y Azzawiya Refinery INDUSTRIAL DEPT. Atmospheric Residue Kerosene Gas Oil CRUDE Azzawiya Oil Refinery Existing process units block diagram C.D.U Light Gas Oil Heavy Gas Oil Jet Kerosene Gas LPG Naphtha LN HN LPG Reformate Kerosene HDT Stable unit Reformer NHDT 10/31/2010 17 Parameter Libyan Spec. Azzawiya Spec. Proposed Spec. RON 95 Min 95 Min 95 Min Lead, ppm Nil Nil Density, Kg/m 3 Min 720 & Max 775 757 Aromatics, vol. % 35 max 42 Benzene, vol. % 4 Max 3.6 1% max Sulphur, ppm 150 89 10 RVP, KPascal 45 Min S-70 W-90 60 Oxygen, wt. % 2.7 Max 1.5 2.7 max Azzawiya Gasoline Specifications REFENING DEPT 10/31/2010 18 Parameter Libyan Spec. Azzawiya Spec. Proposed Spec. Sp. Gr. @ 15.5 0 C Reported 0.84 Pour Point, 0 C In S Max +4 In W Max -1 - 9 Sulphur, ppm 1000 Max 700 10 - 50 Cetane Index 46 Min 53 Diesel Index 52 Min 61 Flash point, deg. C 60 Min. 66 Azzawiya Diesel Specifications REFENING DEPT 2010 Maximizing the production of Light Fuels and increasing Returns by conversion of Heavy Fuel Oil. Meeting the International Market Standards, new Specifications and Environmental Regulations. Satisfying the Local Market demand for refined Products. Azzawiya Refinery Upgrading Objectives INDUSTRIAL DEPT Future Upgrading Project Future upgrading project target the enhancement of Azzawiya Refinery economical resources through increasing the revenue against refining crude oil when production output is increased so that produced amounts can cope with consumed amounts; eventually, this helps overcome the shortage of gasoline now encountered. Furthermore, this aims to the improvement of oil products, enabling them to conform with global specifications. It also helps in the treatment of gas wastes and oil residue in order to protect the environment and the surroundings. Within these project, the Harbor in intended to be expanded to meet importation and exportation requirements of the oil and oil products. Azzawiya Refinery Upgrading Project Naphtha Conversion Process Units Residue Conversion Process Units Azzawiya Refinery Upgrading Project Naphtha Conversion Process units This phase targets: 1. Upgrading the refining capacity and the multiplication of gasoline production. 2. Updating the control and measurement systems. 3. Improving diesel specifications and treating oil residue so as to protect the environment. 4. Contribution to economical growth. Residue Conversion Process units This phase is still under consideration. It targets the cracking and transforming of heavy fuel oil into highly economical white products, and also increasing the produced gasoline and optimizing the economics of the Refinery in a way that achieves good profitability. Naphtha Conversion Process units Hydrobon and Reforming Units - Necessary modification of the existing units for increasing the refining output. - Naphtha Stabilizer Unit. To remove most of the Butanes and lighter component. - Naphtha Reforming Unit. To convert Hydrotreated Naphtha into high Octane Motor Gasoline. - Light Naphtha Isomerization Unit. - This unit isomerises normal C5 and C6 paraffin to their respective isomer, which have higher-octane value. - Diesel Hydrobon Unit. This unit reduces diesel sulphur content for improving product quality. - Naphtha Hydrobon Unit. - This unit designed to Hydrotreat heavy Naphtha by removing Sulphur and Nitrogen in order to protect the reforming catalyst from poisons. A schematic diagram showing Naphtha Conversion Project Crude oil Heavy Fuel Oil Gasoline Pool Kerosene Diesel Existing units New units Burning gas LPG C.D.U Diesel Hydrobon Kerosene Hydrobon Naphtha Stabilization Naphtha Hydrobon Naphtha Platforming Isomerization Naphtha Platforming Naphtha Hydrobon Naphtha Stabilization Residue Conversion Project Heavy Fuel Oil FCC Unit. The FCCU break up the heavy oil into more volatile gasoline and diesel range materials. LPG treating unit. This unit remove mercaptans so that final product meets sulphur specification. Gasoline Hydrobon Unit. MTBE Unit. MTBE used as an octane enhancer. Cycle Oil Treatment Unit. Sulfur Extraction Unit. This unit remove sulfur from crude oil thus reducing sulfur dioxide emission from refinery plants and combustion engines. Production after Post Naphtha and Residue Conversion Project (KT/Y) Post Residue Conversion (6 million ton) Post Naphtha Conversion Present Prod. Product S. No. 245 164 90 LPG 1 - - 566 Untreated Naphtha 2 955 776 1,000 Kerosene 3 2,583 1,568 750 Gasoline 4 1,750 1,704 1, 294 Diesel I * 5 298 - - Diesel II ** 6 0 1,648 1,300 Heavy Fuel Oil 7 213 - - Heating Oil 8 * Diesel containing less than 10 PPM of sulfur. ** Diesel containing less than 500 PPM of sulfur. Conclusions: Producing Clean fuel is clearly a challenge in term of environmental impact and capital investment. The need for converting heavy fuel oil to valuable lighter products and for producing low sulfur gasoline and diesel fuel will continue to encourage refiners to evaluate proven hydrotreatment and residue conversion process options. Fluid Catalytic Cracking and Hydrotreatment units are powerful tools that refiners can use to meet future market demands and product specifications. These tools offer solutions to address major challenges such as the decreasing heavy fuel demand, the need for low sulfur diesel fuel, reduced sulfur emission, reduced sulfur content in gasoline, and the increasing of gasoline and diesel production. 28 INVESTMENT OPPORTUNITIES IN LIBYAN OIL REFINERIES AND PETROCHEMICALS 29 Investment Projects Investment Scope: Inviting international companies for investment and joining in executing, funding, and management of oil and gas processing projects. Refineries Investment projects: - Upgrading of Azzawiya Refinery. - Upgrading of Tubrok and Sarir Refineries. Petrochemicals Investment projects: Upgrading of Ethylene plant. Upgrading Polyethylene plant. Upgrading of Methanol plants. Investment Basis Projects shall be based on joint venture with NOC. Participation shares shall range from 0-100% for partners. Joint venture companies shall be independently run according to their articles of association to be established and shall have their own salary, compensation, and employment system. Tax exception for at least five years. Costumes duties and dues for the common projects during construction and up to start up date are excepted. Costume duties and Harbor handling fees for operating materials imported for project requirement will be excepted for a certain period to be defined during detailed joint venture setup discussions. The investing companies shall enjoy the following facilitation: Thank you www.noclibya.com