SK’s Lube Base Oil Production- Successful Completion of 2nd LBO Project
Sook-Hyung (Sam) Kwon
Vice President & Project Director
Byeong-Yong Park
Process Manager
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Overview of SK Corporation
Establishment October 1962
Asset 14.9 Billion US$ (2004)
Employees 4950 Persons
Sales 17.4 Billion US$ (2004)
Business
Areas
Oil Exploration & Production
Petroleum Refining
Chemicals
Gas, Coal, Lubricants
Technology Business
New Business ( Online / Offline )
SK Corp’s highly
integrated Ulsan
Complex is one of
the largest
single-site refinery
in the world, having
refining capacity of
840,000 bpsd.
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History of SK’s Lube Base Oil Production
#1 LBO Plant
• 1995: Commissioned #1 LBO Plant, Hydroprocessing-based, Conventional MLDWincluded SK UCO Lube Process Technology
• 1997: Revamped to ISODEWAXING/HydrofinishingUnit with ICR 408/407, Better Yield and Quality
• 2003: Applied New ISODEWAXING Catalyst of ICR 422, Better Yield and Quality
CDW ICR 408 ICR 422
Yield, LV % Base +20 +23
Viscosity Index Base +10 +12
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History of SK’s Lube Base Oil Production
#2 LBO Plant
• 2004: Commissioned #2 LBO Plant, Hydroprocessing-based, included SK UCO Lube Technology
• 2004: Increased Throughput by 20%
• 2005~6: Planned to Revamp
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Application of Two LBO Plants
LPG
Naphtha
Diesel
Kerosene
Vac.
Distill
Fuels
HCK
#1 CDWVac.
Distill
#2 CDW
UCO
Vac.Distill
70D
100D
150D
70D
100D
150D
250D
Yubase
3,4,6,8
AR
VGO
#2 LBO Plant
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Overview of 2nd LBO Project
Project Period August, 2002~ June, 2004(23 months)
Mechanical Completion : May 20, 2004
100% Operation : June 29,2004
Capital Investment US$ 120 Million
Vac. Distillation Unit
Catalytic Dewaxing Unit
Utilities and Offsite & Tankage
Project Target Fast-Track Schedule
Quality and Safety
Cost Saving
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2nd LBO Project
• Fast Track Schedule
– Involvement of Experienced Process Engineers from Planning to Start-up
– Speedy Decision Making based on SK’s Accumulated Technology and Experience
– Early Freezing of Process & Basic Engineering
– Early Purchasing of Long-Delivery Equipment
– Utilization of 3D Model Design
– Optimization of Precom. & Commissioning Activities
– Dramatic Savings of Document Approval Period
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• Quality and Safety
– Reflected Experienced Data and Procedure of 1st LBO Project in Design, Procurement, Construction, and Start-up Operation
– Audited Major Engineering Design Results by 3rd Party
– Crosschecked Design Quality between CDW Licensor and Basic Engineering Co.
– Dispatched Resident Experts to Manufacturing Shop of Major Equipment Vendors
– Strengthened Safety Mind and Behavior through Periodic Safety Committee
– Double Checked High Pressure Welding Qualities
2nd LBO Project
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2nd LBO Project
• Cost Saving
– Minimized Spare Parts and Bump Factor by 3D Model Design and SK’s Experience
– Minimized Trial and Errors from #1 LBO Experience
– Optimized Design by Removing Unnecessary Items
– Optimized Precom. & Commissioning Activities
– Purchased Major Equipment Economically
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Start-up Performance
Description Planned Actual
Throughput, B/D 7,000 7,000
Reactor Temperature, Deg. C
- Isodewaxing
- Hydrofinishing
350
232
360
232
Lube Product Yield, % Base +2.0
Product Quality
- Viscosity Index Base Base +1
Any Bottlenecked Items
- Towers- Heaters and H-exchangers- Rotating Machine- Utilities
None
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Summary of 2nd LBO Project
Description Planned Actual
Fast-Track Schedule
EPC Schedule, months
Commissioning and Start-up, months
26
3
21.7
1.3
Quality and Safety
Number of Accidents Consecutive No Accidents Recorded, MH
-
-
None
2,950,000
Cost
Cost Saving, % of TIC 5 22
Capacity, B/D * 7,000 8,400
Product Yield and Quality Base Better
* Feed rate was increased within one month after start-up.
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• Design Review
– CLG reviewed all important design documents related to the IDW unit.
– CLG assisted conformity check of equipment and plant.
• Catalyst Selection
– SK and CLG did joint testing for catalyst selection .
• Start-up Assistance
– CLG supported technical services for start-up.
Success through Partnership with CLG
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• SK challenges CLG to improve lube quality/yield further by developing next-generation ISODEWAXING and ISOFINISHING catalysts.
• SK/CLG’s driving forces to improve lube qualities are now extending to the Hydrocracking catalysts.
• SK/CLG collaborate on validation of new technology and ideas in Hydroprocessing chain related to lube base oil production.
Future Partnership with CLG