Creating Value Through
Challenging Times
Eric Benazzi
1
Context
SLOWDOWN
CRUDE ECONOMY
GDP PRODUCTION
SUPPLY
PRICE
INVESTMENT GROWTH
CONSUMPTION
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 2
Road Map to Value Creation
Market
Value Creation
Refining &
1
Petrochemical
Integration 2 3
Resources Optimization
Bottom of the Energy efficiency
Barrel Conversion Water footprint
Catalysts management
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 3
Road Map to Value Creation
Market
Value Creation
Refining &
1
Petrochemical
Integration 2 3
Resources Optimization
Bottom of the Energy efficiency
Barrel Conversion Water footprint
Catalysts management
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 4
Increase Integration and Conversion Rate
EUROPE CIS
NORTH AMERICA 40,000 40,000
40,000
35,000 35,000
35,000
30,000 30,000
30,000
25,000 25,000
25,000
Integrated 20,000 20,000
20,000
15,000 15,000
15,000
Not 10,000 10,000
integrated 10,000
5,000 53% 5,000
5,000
23% 0 0
27%
0
MIDDLE EAST ASIA
SOUTH AMERICA AFRICA 40,000
40,000
40,000 40,000
35,000 35,000
35,000 35,000
30,000 30,000
30,000 30,000
25,000 25,000
25,000 25,000
20,000 20,000
20,000 20,000
15,000 15,000
15,000
10,000
15,000
10,000
10,000 12% 10,000
51%
5,000 5,000
5,000 5,000
0
3% 0 45% 0 0
Source: HART WRFS 2015, Nexant
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 5
Refining & Petrochemical Flow Exchanges
Refining Technology Petrochemicals Final Products
Unsaturated ROG (C2=)
FCC C3 cut PRU PE, PVC
FCC C4-C5 cuts
Conversion to C3= (C3=)
Coker C3-C4 cuts PP
Saturated ROG Purification (C4=)
Excess of C3, C4 Dehydrogenation
Steam SBR
H2, C4, Pygas Cracker (Benzene)
SR Naphtha Styrene,PS
HDT & Splitter
Cracked Naphtha (Paraxylene)
Gasoline Pool Bases PET
Raffin. Pygas
CCR Reformate
Gas Oil
HC bleed Aromatics
BoB Conversion Complex
VGO Schemes Abbreviations : ROG : Refinery Off
Gas, PRU : Propylene Recovery Unit,
PE : Polyethylene, PVC : Polyvynil
AR/VR PetChem (R)FCC PRU Chloride, SBR : Styrene-butadiene
Rubber, PS : Polystyrene, PET :
Polyethylene terephthalate
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 6
World-Class Integrated Project: PetroRabigh
Ethylene, Propylene, Aromatics & Fuels Production
Ethane Ethane Ethylene
Cracker
C4
DCC Light Ends
1-Butene 1-butene
MD
C4 Alkyl. & Isom
ADU
Pool
Crude
Paraxylene
Naphtha Reformer & & Benzene
Aromatics
Propylene
complex DCC
VGO HDT Light Ends
Gasoline Pool
Gasoline
VDU
VGO HDT VGO
HDT Mid. Distillate Pool
Fuel Oil Pool
Products:
Refinery Capacity: 400 000 bbl/d
Fuels: Gasoline, Middle Distillate (Diesel, Jet)
Steam Cracker Capacity: 95 MMscfd
Petrochemicals: Ethylene, Propylene, 1-Butene => further
Axens technologies processed
CCR & Aromatics complex: under start-up
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 7
Increase Integration and Conversion Rate
EUROPE CIS
NORTH AMERICA 40,000 40,000
40,000
35,000
8.2 35,000 5.4
35,000
30,000
11.1 30,000 30,000
25,000 25,000
25,000
Integrated 20,000 20,000
20,000
15,000 15,000
15,000
Not 10,000 10,000
integrated 10,000
5,000 53% 5,000
5,000
23% 0 0
27%
0
MIDDLE EAST ASIA
SOUTH AMERICA AFRICA 40,000
40,000
40,000 40,000
4.2 35,000 5.2 35,000 6.9
35,000 6.2 35,000
30,000 30,000
30,000 30,000
25,000 25,000
25,000 25,000
20,000 20,000
20,000 20,000
15,000 15,000
15,000
10,000
15,000
10,000
10,000 12% 10,000
51%
5,000 5,000
5,000 5,000
0
3% 0 45% 0 0
Source: HART WRFS 2015, Nexant
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 8
Axens Recent Award: Maximizing Heavy Naphtha
Crude to PX Scheme
LN
AGO Diesel Isomerization
HCK
ADU
GO Ex H-Oil HN Aromatic Complex
VGO SR VGO ParamaX
HCK
VDU
AR
KERO China Spec
VR Kero Pool
H-Oil VGO Ex H-Oil
DIESEL China V Spec
Full Diesel Pool
Conversion
HCK UCO Group III Lube
UCO Complex
DAO
SDA
SOLVAHL PITCH
GASIFICATION
Pitch
Axens technologies
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 9
Axens Recent Award: Maximizing Heavy Naphtha
Crude to PX Scheme
LN
AGO Diesel Ebullated Bed Residue Conversion : H-Oil Suite
Isomerization
HCK
ADU
Conversion
wt%
GO Ex H-Oil HN Aromatic Complex
VGO 90% SR VGO ParamaX
HCK
VDU
AR
80%
KERO China Spec
VR Kero Pool
H-Oil 70% VGO Ex H-Oil
DIESEL China V Spec
60% Full Diesel Pool
Conversion Feed
HCK UCO Difficulty
50% Group III Lube
UCO Arabian Arabian
Light Heavy
Shengli Ural Complex
Athabasca Zuata Maya
DAO
SDA
SOLVAHL PITCH
GASIFICATION
Pitch
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 10
Road Map to Value Creation
Market
Value Creation
Refining &
1
Petrochemical
Integration 2 3
Resources Optimization
Bottom of the Energy efficiency
Barrel Conversion Water footprint
Catalysts management
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 11
Resources Optimization
Energy Efficiency Challenge
Something is more energy efficient if it delivers more services for the same
Something is more energy efficient if it delivers more services for
energy input, or the same services for less energy input.
the same energy input, or the same
International services
Energy Agencyfor less energy input.
International Energy Agency
Refining typical operating costs
Europe Asia Pacific North America
A small fraction of energy
savings
17% 30%
11% 20%
15% 69%
58% 11%
7% can translate into
4% 34% 9%
3%
6% 6% millions of $
Energy
Maintenance Source Solomon, 2015
Non-Maintenance Personnel
Taxes, Insurance & Other fixed
Other Volume Related
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 12
Resources Optimization
58% of RP sites are in areas subject to medium to extreme water stress
Water Consumption Challenge
24% of them in areas where precipitation are expected to decrease
ENEA Consulting analysis, based on World Resource Institute, IPCC and Axens data
Projected decrease
in average precipitation
drawals (municipal, industrial, and agricultural) expressed as a percentage of the total annual available blue water. Higher values
ct; FAO AQUASTAT; NASA GLDAS-2; Shiklomanov and Rodda; Flrke et al.; Matsutomi et al.
n Clients and Markets - Workshop February 5, 2014
Source: ENEA Consulting analysis
based on WRI, IPCC and Axens data
58% of refining and petrochemical sites are in areas
subject to medium to extreme water stress
Projected decrease
in average precipitation
People in Saudi
Something is more Arabia
energyare being
efficient if ittaxed
delivers formore water, as the
services for government
the same energy
Baseline Water Stress (WRI) measures total annual water withdrawals (municipal, industrial, and agricultural) expressed as a percentage of the total annual available blue water. Higher values
indicate more competition among users. Sources: WRI Aqueduct; FAO AQUASTAT; NASA GLDAS-2; Shiklomanov and Rodda; Flrke et al.; Matsutomi et al.
input, or the same servicesbelieve for less energy input. groundwater
Environmental and social challenges - Impacts on Clients and Markets - Workshop February 5, 2014
warns of an impending crisis. Experts the countrys
will run out within the next 13 years.
International Energy Agency
Various newspapers, February 2016
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 13
Basic Engineering is a Key Step of a Project
Client project
Project launch
schedule
Licensor
Selection
2- Basic
Basic
Engineering Engineering
The licensor
is the units
Architect
Detailed
Engineering
1- Technical 4- Construction
Consulting
3- Detailed Construction
Engineering
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 14
Axens Innovative Approach
Work together to develop a
P P Preparation of
Preparation of
F PID, Equipment I lines,
Licensor D D instruments
Selection Custom & Efficient Early Design
CEED
During an Early phase of the Basic Engineering Design
Basic Using qualitative & quantitative analysis to evaluate
Engineering
alternate Cschemes pros & cons
E
E
D
Selecting the most appropriate options taking into account:
Energy and/or Water constraints
CAPEX, OPEX, flexibility/operability
To ensure your project is built on solid process
foundation and to provide the best possible return
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 15
Case Study
Presentation
Axens selected for a new VGO Hydrotreatment Unit
Located in Donges Refinery, France
Parties involved:
Total (Refinery, Headquarters, Project)
Axens (Technologists, Process, Energy Efficiency Specialists)
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 16
Case Study
CEED Achievements
A lot of exchanges with customer in a tight schedule...
15 15
After licensor
10 10 selection
5 5
Typical
0 0
Number of weeks before Number of meetings/ conf. call With CEED
H&MB / PFD finalization before H&MB / PFD finalization
To propose 3 tailor-made options
Base Index
100 for Option A Operational & flexibility
Options
100.0 comparison report for all 3 options
A
50.0 B Total made its final decision based
C on Investment Cost, Operating
0.0 Expenses and Flexibility
CAPEX Utility Cost
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 17
Road Map to Value Creation
Market
Value Creation
Refining &
1
Petrochemical
Integration 2 3
Resources Optimization
Bottom of the Energy efficiency
Barrel Conversion Water footprint
Catalysts management
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 18
Main Metals Reserves
+ Increased risk on mid-term availability -
100%
Increased risk of supply disruption
Tungsten Platinum +
90%
Market share of the 3 main
Molybdenum
80%
production countries
Indium Rhenium
70%
Lead Iron Aluminium
60%
Copper Cobalt Titanium
50%
Zinc
Nickel
40%
30% Gold
20%
10%
-
0%
10 20 100 1000
Reserves (years, at 2008 production level)
A scarce resource, expensive, and mining industry is highly emitting
Source: ENEA Consulting, 2014
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 19
Responsible Catalysts Management
Disposal
Catalysts Metal Carrier Metal Carrier
Cycle Life Unit A
Manufacturing Unit B
Valorisation
1
Product
Supply
5 2
Pool Reactor UNLOADING
Management Management
4 Regeneration
Used Product 3
Management Operation
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 20
Succeed together!
Market Value Creation
Refining &
1
Petrochemical
Integration 2 3
Resources Optimization
Bottom of the Energy efficiency
Barrel Conversion Water footprint
Catalysts management
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 21
Axens Succeed Together Blog
axens.net/blog
Abu Dhabi International Downstream Summit - WRA - 9-10 May 2016 22
