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Key Drivers and Trends for - KTI · PDF fileKey Drivers and Trends for Retrofits of ......

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Page 1: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature
Page 2: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Key Drivers and Trends forRetrofits of

High Temperature Reaction Furnaces and

Fired Heaters

Yukong, Crude Charge & Distillate Heaters, Ulsan, South Korea

Steam Reformer, Wilmington, California

Shell Refinery

Page 3: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

To Retrofit or Not to Retrofit!

• If William Shakespeare were alive today – and working as a refinery manager – what would he suggest you do?

That is the question.

Page 4: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Types of Retrofits

• Individual components

– Simple retrofit such as Low NOxburners

• Complete systems & processes

– Overhaul of idled systems

• Retrofit entire refineries

– Switch refinery to support new type of crude

Page 5: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Retrofit Drivers

Page 6: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Primary Drivers for Retrofit Decisions

• Capacity expansions

• Regulatory compliance– i.e., emissions reduction

• Refurbishment – i.e., extended life

• Efficiency improvement– Reduce operating costs

• Reliability/Maintenance

• Correct performance degradation

• Implement process changes

Page 7: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

More Retrofit Drivers

• Improvement of operating controls

• Addition of waste heat recovery equipment

• Integration of gas turbines with equipment

Page 8: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

And Yet More Retrofit Drivers

• Introducing new refined products

• Introducing new forms of crudeBP PLC [NYSE:BP], one of the world's largest energy companies, will spend US$3 billion to retrofit its Chicago-area refinery in order to become a primary processor of heavy Canadian oilsands crude.

--- Resource Investor

Chevron Richmond refinery (commissioned in 1902) was retrofitted to run higher volumes of sour crude and reduce emissions. US$1 billion retrofit.

--- Downstream Today

Page 9: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Be Aware of Hidden Costs• Judgment errors:

– Incomplete scope– miscalculated turnaround

time; – Misjudged complexity

• Cranes• Change orders

– Thorough studies and RFQs save money!!!

• Site transportation• Unrestricted access • Permits & Safety

Page 10: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Engineered Retrofit Approach• Evaluate Collect design and operating data Create simulation model Correct model for actual performance Simulate changes based on client

requirements Develop Recommendations

• Engineer and Procure Engineer solution based on

recommendations Develop detailed design package Procure materials

• Execute Develop detailed execution plan Execute field construction

10

Platformer Rebuild Fully Modularized

Page 11: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Scope of Retrofit ServicesIt begins with

the study

Strong Logistics

capability is critical

Construction services

• Studies• Engineering• Procurement• Fabrication• Inspection• Modularization• Construction• Start-up

Page 12: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Crude & Vacuum Heater Expansion Project

• An “epic” expansion– 275,000 bpd to

600,000 bpd

• Once complete – will be largest refinery in the US– and 12th largest in the

world

• Many contractors and equipment suppliers on site

Motiva, Port Arthur, Texas

Page 13: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

FCCU Retrofit with SCREmissions Reduction Project

• Citgo Clean Skies Initiative

– 94% reduction of emissions of nitrogen oxide (NOx)

– 98% reduction of emissions of sulfur dioxide (SO2)

– 96% reduction of emissions of particulate matter (dust) Citgo

Lemont Refinery

Page 14: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

More SCR Retrofits

ExxonMobilConfidential

Page 15: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Rebuilds

ChevronTexaco Nova Chemical

Planned Unplanned

Page 16: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Worst Case Scenario Planning

ConfidentialEthylene Cracker Emergency Rebuild

Page 17: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

High Temperature Reaction Furnaces

Mega Hydrogen ReformerSteam Reformer

Page 18: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Reformers

Reformer Radiant Modules Modularized Reformer Penthouse

Page 19: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Reformers

Vertical Convection SectionPenthouse Details

Page 20: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Fired Heaters

Flue gas replacement Full EPC Project Management

Page 21: Key Drivers and Trends for - KTI  · PDF fileKey Drivers and Trends for Retrofits of ... Chevron Richmond refinery (commissioned in 1902) ... Confidential. High Temperature

Thank you very much

Peter ArmstrongDirector of Business Development & Global [email protected]


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