Innovative Solutions to Tackle India Transportation … Presentation final - Puneet-RL...Innovative...

A World of Solutions

Innovative Solutions to Tackle India Transportation

Fuel Outlook Concerns:

CDTame® & CDAlky®

Global Refining and Petrochemicals Congress

May 25-26, 2017

Mumbai, India

Puneet Puri

A World of Solutions

This presentation contains forward-looking statements regarding CB&I and

represents our expectations and beliefs concerning future events. These

forward-looking statements are intended to be covered by the safe harbor

for forward-looking statements provided by the Private Securities Litigation

Reform Act of 1995. Forward-looking statements involve known and

unknown risks and uncertainties. When considering any statements that

are predictive in nature, depend upon or refer to future events or

conditions, or use or contain words, terms, phrases, or expressions such as

“achieve,” “forecast,” “plan,” “propose,” “strategy,” “envision,” “hope,” “will,”

“continue,” “potential,” “expect,” “believe,” “anticipate,” “project,” “estimate,”

“predict,” “intend,” “should,” “could,” “may,” “might,” or similar forward-

looking statements, we refer you to the cautionary statements concerning

risk factors and “Forward-Looking Statements” described under “Risk

Factors” in Item 1A of our Annual Report filed on Form 10-K filed with the

SEC for the year ended December 31, 2016, and any updates to those risk

factors or “Forward-Looking Statements” included in our subsequent

Quarterly Reports on Form 10-Q filed with the SEC, which cautionary

statements are incorporated herein by reference.

1

Safe Harbor Statement

A World of Solutions 2

➢ Pressing Needs to Improve Air Quality

➢ Indian Transportation Fuel Outlook & Gasoline

Specification

➢Options for Improving Octane Balance

➢ CB&I Innovative Value Proposition

➢ CDTame®

➢ CDAlky®

➢ Concluding Remarks

Presentation Outline


Pressing Needs to Improve Air Quality

Beijing at 2pm

➢COP 21 in Paris 2015

➢Worldwide Pressing Needs:▪ Addressing SMOG Concerns

▪ Improving Air Quality

➢Transportation Fuels:▪ Diesel

▪ Gasoline


Contribution to Ozone & Smog Formation

Mr. Bill Piel, Tier Associates, USA

50 100 150 200 250 300 350

0.5

1

2

5

10

Boiling Temperature ( F )Ozo

ne Y

ield

(

g

m O

zo

ne /

gm

VO

C

)Paraffins

Olefins

Aromatics

Oxygenates

Higher Temperatures increases Cold Cycle Exhaust HC's

High RVP increasesEvaporative Emissions

MTBE

ETBE

Ethanol AlkylateIsomerate

Hvy. Reformate

Lt. FCC gasoline

Ozone Reactivity and Boiling Temperatures of Gasoline Alternatives

Toluene

N butane

Ideal BoilingTemperatures

CARB & CEC "created" a low cost, external supply of Lt. Alkylate to replace Oxygenates in RFG

Boiling Point, oF

➢ Olefins are Photo-Chemically Reactive

➢ Olefins are also Known to Cause Carbon Deposit/Gum in Car Engines

➢ Light olefins & Heavy Aromatics = Biggest Ozone Yield Contributor

= SMOG and Greenhouse Effect


45%

55%

42%

57%

1%

Diesel

Gasoline

Hybrid

Indian Fuel Demand Outlook: Personal Transportation

➢ Tremendous Increase in Personal Transportation Fuel by 2040

▪ 2014: 43Mtoe

▪ 2040: 132Mtoe

➢ Shift in Transportation Types:

▪ Cars

Indian Energy Outlook, IEA 2015 report *PLDV: Personal Light Duty Vehicle

AutoFacts 2016 Q1 Forecast Release **Mtoe: Million tonnes oil equivalent

➢ Resurgence of Gasoline for Transportation Fuel

0%

10%

20%

30%

40%

50%

60%

PLDV Bus 2/3-Wheelers

2014 - 43 Mtoe 2040 - 132 Mtoe


➢ High Octane Components Being Removed from Gasoline Pool

▪ Tighter Government Mandates

▪ Higher Performance Engines Requirements

▪ Environmental Impacts (including RVP Reduction)

▪ Overall Octane Deficit:

Gasoline HDS

Olefins

Aromatics

Trends in Gasoline Specification: Octane Deficit

Bharat

Stage IV

Bharat

Stage VI

China

IV

Beijing

V

China

V

US

Tier 3

California

CaRFG3Euro 5

Sulfur, ppm 50 10 50 10 10 10 15 10

Olefins, % 21/18 21/18 28 25 24 10 4 18

Aromatics, % 35 35 40 - 40 25 22 35

O + A, % 60

Benzene, % 1 1 1 1 1 1 0.7 1

RVP, kPa

Winter/Summer60 60 85/68 85/65 85/65

7.0 psi

~48 kPa

7.0 psi

~48 kPa60

Effective2017 2020

Jan. 1,

2014

June 1,

2012

Jan. 1,

2018

Jan. 1,

2017

Jan. 1,

2012

Jan. 1,

2009


• Decoupling of Gas and Oil Prices

– Gas Yield from Reformer Hurts Reformer Cost of Octane

• Octane Value Increasing (Spread Regular vs. Premium):

– MTBE/ ETBE/ TAME/ TAEE

– Bio-ethanol Blending

– Iso-Octane / Iso-Octene

– Alkylate

• Large Demand for Octane in North America

Trends in Gasoline Demand, Octane Blending


▪ Refinery▪ Few options available to refiners

▪ Meeting fuel specifications has already reduced octane capacity

▪ Refineries depleted of Alkylate feed

▪ Steam Cracker▪ Tightened availability of mixed C4s

▪ Conversion to propylene via metathesis

▪ New crackers use light feedstock

▪ Demand for butadiene

▪ Converting Butanes▪ Excess butanes available at low costs

▪ Proven routes via butanes dehydro

▪ Different options available▪ MTBE/ ETBE

▪ iso-Octane/iso-Octene

▪ Alkylate

Sources of High Octane Blending Components

US Prices


▪ Bio-ethanol▪ High octane value, but unfavorable vapor pressure

▪ Price generally higher than that of other octane enhancers

▪ Blending challenges, infrastructure required

▪ Food vs. fuel dilemma

▪ Iso-Octane / Iso-Octene▪ Excellent octane blending components

▪ Low vapor pressure

▪ High octane value

▪ Olefinic iso-Octene, may need to be saturated to iso-Octane

▪ Double the required capacity of IB compared to Alkylate

▪ Source: refinery FCC / cracker

Options for Improving Octane Balance


▪ MTBE / TAME▪ Excellent octane blending components

▪ Low vapor pressure

▪ High octane value

▪ Upgrade methanol to higher value MTBE or TAME

▪ Source: refinery FCC, steam crackers, butane dehydro

▪ Alkylate▪ Excellent octane blending component, well accepted

▪ Upgrade C4s to higher value alkylate

▪ Source:

▪ Traditionally - refinery FCC

▪ New route –butanes to alkylate

Options for Improving Octane Balance, cont’d


➢TAME & Alkylate :▪ Excellent Octane Blending Component

▪ Accepted in the Marketplace (TAME)

▪ TAME Characteristics Alkylate Characteristics

High Octane Value High Octane Value

Low Vapor Pressure Low Vapor Pressure

No Olefins No Olefins

No Aromatics No Aromatics

Low Sulfur Low Sulfur

➢ CB&I Innovative Pathway for Improving Octane Balance & Reducing RVP:

CDTame® + CDAlky®

CB&I Innovative Value Proposition



Methanol

➢ CDTame & CDAlky:▪ Octane Boost through olefin upgrading

▪ Upgrading C4s to Gasoline

▪ RVP Reduction

Spent Acid

Pre-Treatment:Depentanizer

CDHydro®

CDAlky®

CDTame®

Light Cat. Naphtha

RON 89-91

RVP 18-20 psia

HaldorTopsoe*

WSA

Fresh Acid

C5 Raffinate

TAMERON 112RVP 2-2.5 psia

AlkylateRON 92RVP 2-12 psia

Isobutane

*Haldor Topsoe Partnership for Acid Regeneration Technology: WSA



Octane Number Data for Base Gasoline and TAME-Gasoline Blends

RON MON

Alkylate Only 92 91

with 10% TAME 95 92.4

Light cut catalytic cracked gasoline 89 80.5

with 5% TAME 90.2 81.4

Unleaded Gasoline 89.1 80.1

with 10% TAME 91.2 82

with 20% TAME 93.5 84.5

Handbook of MTBE and Other Gasoline Oxygenates

➢ Alkylate with TAME yields a very significant octane boost in the gasoline blend!


World’s Leading Etherification Licensor

CDMtbe or CDTame

CDEtbe or CDTaee Over 130 Ethers and Bio-Ethers Licenses!

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Conventional TAME Process

Fixed Bed

ReactorCooler FractionatorPump Fixed Bed

ReactorPump

➢ Isoamylene conversion is limited by equilibrium

➢ Requires multiple reactors

➢ Shorter catalyst run length


CDTame KEY Process Features

Fixed Bed Reactor

Catalytic Distillation

Column

Pump

➢ No Equilibrium Limitations!➢ Avoids equilibrium limit as the reaction products

are removed continuously

➢ Unique Catalytic Distillation Technology➢ Reaction and distillation occur simultaneously

➢ Isothermal operation

➢ Low capital cost and utility requirements

➢ Long catalyst run length➢ Self cleaning system

➢ Commercially well proven technology!

Ethanol

WireMesh

Catalyst

Isoamylenes

TAEE

Methanol

WireMesh

Catalyst

Isoamylenes

TAME

CDModules


CDModules KEY Features

➢ Superior robustness and mechanical sturdiness prevent catalyst abrasionand generation of dust or fines

➢ No mechanical damage to the catalyst during loading

➢ Pressure drop is very low and remains constant over the run length of thecatalyst

➢ Long commercial run length is unmatched by competing technologies

➢ No loss of catalyst so that conversion is sustained over a period of time andproduct quality is not affected.


Iso-olefin Conversion - Comparison

*At typical fixed bed reactor outlet conditions

~96%*IB= + MeOH MTBE

Equilibrium

Conversion

IB= + EtOH ETBE ~90%*

IA= + MeOH TAME ~75%*

IA= + EtOH TAEE ~50%*

~98 to 99.x%

CD

Conversion

~97 to 99.x%

~95%

~90%


▪ HF alkylation▪ High quality alkylate, low acid consumption, more feedstock flexibility ▪ Extremely hazardous; not preferred anymore▪ Refiners are considering shutting down existing units

▪ Solid acid alkylation▪ Essentially eliminates the safety and hazard issues of liquid acid alkylation▪ Optimized for low to average alkylate capacities ▪ CB&I and Albemarle have commercialized solid acid alkylation technology in a

2,700 BPD unit, using AlkyClean technology*

▪ Sulfuric acid (SA) alkylation▪ Alkylation technology of choice for refiners▪ Currently the best choice in balancing the safety/operability issues with benefits of

high quality alkylate (Particularly Low Temperature)▪ CDAlky has become technology of choice for sulfuric acid alkylation**

Alkylation Options

*Awarded the Presidential Green Chemistry Award from the U.S. EPA for the “Providing Greener Synthetic Pathways”

**Top 5 Finalist of 2015 Kirkpatrick Chemical Engineering Achievement Award


Sulfuric Acid Alkylation Known Challenges…

▪ Conventional SA Alkylation Technologies Known Challenges• Non-Optimum Operating Conditions: A Low Temperature Barrier

• Treating/Washing of Reactor Effluent

• Equipment Corrosion

• Poor Equipment Reliability

▪ Inherent Consequences of these Challenges: • Reduced Alkylate Quality

• High Acid Consumption

• Significant Waste Water and Spent Caustic Effluents

• High Maintenance Cost

• Low On-Stream Time

• High Safety Risks

➢ CDAlky Innovative Design Tackles All these Challenges


LicenseeCapacity

Start-up Awarded FeedstockBPD KTA

Sincier, PRC (1) 5,000 200 2013 2012 C4 Raffinate

Haiyue, PRC (1) 15,000 600 2014 2011 C4 Raffinate

Tianheng, PRC (1) 5,000 200 2014 2012 C4 Raffinate

YuTianHua, PRC 6,800 265 2016 2014 C4 Raffinate

S-Oil, Korea (2) 16,000 624 2018 2014 C4s

Pertamina, Indonesia (2) 7,400 290 2019 2016 FCC C4s

Undisclosed, USA (2) 23,000 900 2020 2016 FCC C5s

Undisclosed (ZPC), PRC 14,000 555 2018 2016 C4 Raffinate

Yanchang, PRC 5,000 200 2019 2016 C4 Raffinate

Undisclosed Location 1, PRC 12,000 420 2018 2017 C4 Raffinate



CDAlky Commercial Experience List

➢ CDAlky® Has Become the Alkylation Technology of Choice:

▪ ~115 kBPD Alkylate Capacity by 2020

▪ Only Technology Awarded On Purpose C5 Alkylation

One of the top 5 finalists for the 2015 Kirkpatrick Chemical Engineering Achievement Award

Footnotes: (1) Exceeded all performance guarantees(2) Operate conventional sulfuric acid alkylation unit


Refrigeration Propane

Alkylation Contactors

OlefinFeed

Isobutane Make-up

Acid-HCSettlers

Spent Acid

Fra

ctio

natio

n

Alkylate

n-Butane

iC4Recycle

Fresh Acid

WaterAcid

Waste

Water

EffluentPost

Treatment

Caustic

M

Conventional Sulfuric Acid Alkylation Approach



AlkylationContactors

Olefin

Feed

Isobutane Make-up

Acid-HCSettlers

Spent Acid

Fra

ctio

na

tion

Alkylate

n-Butane

iC4

Recycle

FreshAcid

WaterAcid

Waste

Water

Effluent

Post

Treatment

Caust

icM


Lower Operating Temperature Improves Alkylate Quality but Increases the Acid Emulsion Viscosity and thus Limits Conventional Contactor Operation due to:

• Increase Mass Transfer Limitation

• Increase Heat Transfer Limitation through Internal Bundles

• Increase Tremendously Power Requirement for mixers

• Increase the Number of Contactors due to Size, Power & Heat Transfer Requirements

Hence Higher Operating Temperature is Required for Conventional Contactors which Results in:

• Higher Acid Consumption

• Lower Octane Value

Conventional Contactors have Moving Parts =

Greater Maintenance and Downtime Exposure



Alkylation

Contactors

OlefinFeed

Isobutan

e Make-up

Acid-HC

Settlers

SpentAcid

Fra

ctio

na

tion

Alkylate

n-Butane

iC4

Recycle

FreshAcid

WaterAcid

Waste

Water

Effluent

Post

Treatment

Caust

icM


Difficult Separation of the hydrocarbon-acid

emulsion

• Fine emulsion Longer settling period

• Large settlers required




OlefinFeed

Isobutane Make-up

Acid-HCSettlers

Spent Acid

Fraction

ation

Alkylate

n-Butane

iC4 Recycle

Fresh Acid

WaterAcid

Waste Water

EffluentPost Treatment

Caustic

M

Conventional Sulfuric Acid Alkylation ApproachElaborate effluent treatment required

• Acid wash required on Hydrocarbon phase

• Caustic wash required to neutralize residual acid

• Water wash needed to remove residual caustic




OlefinFeed

Isobutane Make-up

Acid-HCSettlers

Spent Acid

Fraction

ation

Alkylate

n-Butane

iC4 Recycle

Fresh Acid

WaterAcid

Waste Water

EffluentPost Treatment

Caustic

M


• Water carry over from wash water leads to corrosion issues in the Fractionation Section


CDAlky Features – The Basics

Acid-HCCoalescers

AlkylationContactor

• Novel contactor: vertical down-flow reaction system

• Proprietary reactor internals

• Boiling point operation (direct cooling)

• Operation at < 0 oC (< 32 oF)

• More effective phase separation no rotating mixers in the reactor

Operate reaction zone at lower temperature. Promote alkylation reactions, suppress side reactions and effectively separate the acid and hydrocarbon product phases.


▪ CDAlky® Technical Advantages▪ CDAlky produces the highest quality alkylate, particularly with respect to

octane number. (at Least +1.0 RON)

▪ CDAlky has the lowest acid consumption rate among competing sulfuric acid alkylation technologies. (30-50% Saving)

▪ CDAlky has the most effective Acid/HC Separation System, without any post-treatment required.

▪ CDAlky has Feed Flexibility Advantages. nC4=, iC4=, C5= & C3= (up to 100%)

▪ CDAlky® Economic Advantages▪ CDAlky has the lowest capital investment, and lowest operating cost, among

competing options.

▪ CDAlky requires the smallest plot space.

▪ CDAlky® Operation Advantages▪ CDAlky has key advantages in terms of reliability and operability.

CB&I Client Value Proposition– CDAlky®*

CDAlky® = Innovative & Technology Proven * Top 5 Finalist of 2015 Kirkpatrick Chemical Engineering Achievement Award


Comparison of CDAlky® and Conventional Technologies

Conventional CDAlky Process

Operates at +7oC, or higher Operates below 0

oC

Baseline acid consumption Reduced acid consumption

Baseline octane Improved octane (+ 1 RON minimum)

Difficult separation of acid droplets from HC Significantly improved separation of acid - HC

Uses large settlers Uses Coalescers

Requires caustic and water wash steps No alkylate effluent treatment required

Corrosion common in fractionator Fractionator corrosion eliminated

Uses Mixers, Drivers, Mechanical Seals No moving parts in reaction System

High Intensity & Frequent maintenance Conventional maintenance

Lower reliability High reliability

Exposure to downtime and safety risks High on-stream factor - reduced safety risks

Multiple horizontal reactors (large plot) Single vertical reactor (small plot)


➢Expecting Increase in High-Octane Gasoline Demand:▪ Environmental Pressure

▪ Government Mandates

▪ Higher Performance Engines Requirements

➢ CB&I Innovative Value Proposition: CDTame + CDAlky▪ Commercialized & Recognized Technologies:

▪ Recent Awards Speaks for Itself!

▪ Numerous etherification licenses

▪ Repeat clients

▪ Key advantages brought to end-users by CDTame:• Simple, stable and highly flexible operation

• Long catalyst run length

• Superior TAME product quality

• Lower operating costs (high conversion/ yield, low energy consumption)

• Low investment cost (small plot requirement and all Carbon Steel equipment)

Concluding Remarks


▪ Key advantages brought to end-users by CDAlky:▪ Lower operating costs (high yield and lower acid consumption)

▪ Easier to operate and maintain (no rotating contactor, no water induced corrosion)

▪ Better product quality (higher octane)

▪ Low Investment Cost ( lower piece count and foot-print)

Concluding Remarks

Innovative Solutions to Tackle India Transportation … Presentation final - Puneet-RL...Innovative...

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