Fuel conversion project at RaMRefinerySTRATEGIC RESPONSE TO 2020 CHALLENGE

Xander de Jong

Agenda

Background information

Oil market trends

Refinery share holder agreement

Technical information Refinery

General configuration

Conversion units

Strategic plan and identification projects

Identified & implemented projects

Final step 0% fuel oil production

Overview available technology

Selected technology

Oil market trends

Worldwide (IMO) After 2020 ships use marine fuels with < 0.5wt% Sulphur

Europe

Environmental regulations

Power generation switches to gas

More solar & wind power generation

Better fuel oil qualities (sooth &

Sulphur)

Increasing (environmental) taxes

Declining demand Diesel & Gasoline

Alternative fuels

Improving fuel efficiency

Petrochemical demand increasing

Raffineria di Milazzo highlights

Italy, island of Sicily

Built 1961, strategic location Mediterranean sea

JV between ENI and Q8 (1996)

Processing both Low & High Sulphur Crudes

Capacity 10 Mtons/yr, >90% conversion

FCC: Complex Residual

Catalytic Cracker

LC-Finer & Hydrocracker:

deep conversion, >45%

diesel production

Shareholders agreementKey business drivers

❑ Make the Refinery competitive long term, with Solomon first

quartile sustainable operating performance and a return tothe Shareholders on capital employed in line with the bestEuropean market leaders.

❑ Ensure that the Refinery operates in accordance with bestindustry practice with respect to Health, Safety and

protection of the Environment.

❑ Enable the Refinery to run substantial quantities of heavy

sour crude, such as Kuwait Export Crude.

Changing markets

IMO regulations (0.5% sulphur limit for marine fuels):

Enforce 2020 rather than defer to 2025

Global ULSFO availability is limited

Refinery heavy sour crudes processing will be penalized most

Low ULSFO availability is opportunity for deep conversion refiners to

capture value from processing high Sulphur crudes

KPI RaM refinery view:

Increased use of distillate bunker fuel supports gasoil crack spreads

This supports investments to convert into a 0% fuel refinery

Configuration

Conversion units

Hydrocracker

FCC

LC-Finer

Conversion unit: Hydrocracker

Furnace

Hydrogen

High PressureSeparator

Vacuum Gasoil

Hydrogen Recycle

Diesel

Hydrogen Quench

Debutaniser

LPG

Low PressureSeparator

Separator

Fuel gas

Fractionator

Separator

Naphtha

Fuel gas

Kero

VGO to FCC

ReactorsOperating data

Licensor UOP

T [°C], P [barg] 390; 110

Feedstock VGO

Conversion >65%

Process Steps ReactionH2 recoveryFractionation

Hydrocracker

Startup1995

Once through

Fixed bed

Desulphurisation

Hydrocracking

Conversion unit: FCC

Operating data

Licensor KBR

T [°C], P [barg] 520; 2

Feedstock LS AtmResidueVGO

Conversion >85%

Process Steps Reaction RegenerationFractionationEnergy recovery

Residue FCC

Startup1972

Catalytic conversion

Fluidized bed

Direct Atmos Residue injection

Upgraded & Turbo expander

Furnace

Vacuum GasoilLow Sulphur Atm Residu

Light Cycle Oil

Fractionator

separator

Naphtha

To gas plant

Regenerator

Catalyst

Catalyst

Reactor

Lift steam

Cyclones

CatalystFines

Air

Fuel Oil

TurboExpander

Flue gas to treating

Conversion unit: LC Finer

Operating data

Licensor ABB Lummus

T [°C], P [barg] 410; 180

Feedstock Vac ResidHCGO (FCC)

Conversion 65%

Process Steps ReactionFractionationCatalyst handlingH2 Purification

LC-Finer

Startup1998

HydroCracking

Ebulated bed

Furnace

High PressureSeparator

Gasoil

Vacuum tower

Low PressureSeparator

To vacuumsystem

Atmos Tower

Separator

Naphtha

Fuel gas

Reactor

Recycle pump

Vacuum Resid

Hydrogen Reactor

Recycle pump

Reactor

Recycle pump

H2 Purification

VGOto FCC

Fuel Oil

Liquid Quench

Catalyst

Furnace

Furnace

Long term strategic plan

Objective: To reach 100% conversion on distillates

Including the capability to process More different Crude’s, especially High Sulphur

Fuel Oil main outlets at risk

Poor quality due to high conversion (S, Asphalthenes & Metal)

Power generation switch to gas

Market needs better Fuel Oil qualities (environment)

Desulphurise very costly

Price trends

IMO regulations → increased spread Diesel/Fuel oil

Opportunity: reduce fuel oil to 0%

Vacuum unit

- Increase yield HVGO

Identified projects

Supporting

- Solar: 1350 MWh/jr

- Steam/power

- H2 production

- Sulphur units

FCC

- Max. residue processing

- Debottleneck

LC-Finer

- Debottleneck flow & Q

- Lower Fuel Oil yield

Overview Projects to increase

conversion

Identified projects

❶ Revamp vacuum tower (2012)

❷ Revamps LC-Finer (2014)

❸ Increase Hydrogen production (2014)

❹ Revamp FCC (2015)

❺ Lower CO2 footprint (2016)

❻ Throughput increase LC-Finer (2019)

❼New SDA & Gasification

Projects: Vacuum unit

Straight run Vacuum unit

Increase cut point VGO/Residue

Redesign vacuum system

Replace internals

Projects: FCC revamp

Update (1970) technology:

Debottleneck

Lower contact time

Increase conversion

Lower catalyst make up

Lower energy use

Improve feed flexibility

Process De-Asphalted Oil

Projects: LC Finer

Lower fuel oil yield (2014)

Increase VGO recovery (vacuum tower)

Injection of slurry oil in 3rd

reactor

Improve catalyst injection

system

Throughput increase (2019)

Feed preheat

Feed pumps

Feed used as quench

Supporting processes

Effects of lowering Fuel Oil yield:

More Sulphur production

Higher Hydrogen demand

Higher electricity and steam

demand

Increased CO2 production

EST: ENI Slurry Technology (Residue Hydrocracker)

SDA: Solvent De-Asphalting

Final step: Options 0% Fuel Oil

• Innovative & rewarding with high investment

• Small capacity not viable

EST

• High investment

• Critical due to environmental issues

Coking & Gasification

• Critical due to emissions containment

SDA & CFB Boiler

• The RaM way to 0% Fuel Oil

SDA & Gasification

Final step: SDA & Gasification

SyngasCO & H2

DAO(75%)

Pitch(25%)

H2S to Sulphur Recovery

Hydrogen

Solvent De-Asphalting

Gasification Plant Gas cleaning PSA

Sustainable Refinery

Reduced feed cost

H2

product

Only distillate product

Response to 2020 challenge

Stepped approach

Study to screen options at start of project

Start with end result in mind

Investment spread

Lowers risk

Return on investment for revamps start early

Operational experience → solid design basis

Smaller projects easier to manage

Thank you for

your time