VCCTM – Proven Flexible

Technology for Residue

Upgrade and Higher Margins

CASSANDRA SCHOESSOW, SR. TECHNICAL PROFESSIONAL LEADER - PROCESS

KBR TECHNOLOGY

Agenda

Changing Market Trends

Slurry Phase Hydrocracking

Why VCC™?

Commercialization Update

Key Take-Aways

Changing Market Trends

World Refined Product

Demand

Reduction in Fuel Oil Demand

In all Regions, Fuel Oil demand will drop, offset by increases in naphtha, gasoline and diesel.

Capitalize on Fuel Oil

Reduction

Fuel Oil Demand Reduction from:

Implementation of IMO Marpol standards

Desire for Reduction in GHG from Power Production

Alternative outlets for refinery fuel oil required

Maximize refinery margin by converting refinery fuel

oil and other stranded streams to transportation

fuels or petrochem feedstocks

If possible, add flexibility to change product slate as

demand changes

Slurry Phase Hydrocracking

Highest Feedstock Flexibility

0

2

4

6

8

10

12

14

16

18

20

1 10 100 1000 10000

Ni + V Content (ppm)

Conradson Carbon (wt%)

Resid FCC

Ebullated Bed

Fixed

Bed HC

Coking or

Slurry Hydrocracking

High Liquid Yield, Distillate Selective

Market Challenge Opportunity From VCC

Falling Residual Fuel Demand • High residue conversion

• High liquid yield

• High feedstock flexibility

Changing Product

Specifications

• Directly marketable clean fuels

• Flexible product selectivity:

• Transport fuels

• Petrochemical feedstock

Low Refining Margins • Proven reliability

• Reasonable CAPEX

• No expensive catalyst

Why VCC ?

VCC Process Principles

Primary conversion and product upgrading should be decoupled

Catalyst is not needed for primary conversion and may cause

undesired reactions

Primary conversion should be once through -- no recycle of unconverted product

Maximize heat integration between the two stages

Primary

Conversion

Slurry

Phase

Reactor

High

Pressure

Separator

Additive

Product

Upgrading

Fixed

Bed

Reactor

Hydrogen

Feedstock

Residue

Naphtha

LPG

Gases

Distillates

Conventional + New Technology

Residual Oil

Additive

Hydrogen

Slurry ReactorsHot

Separators

VGO

Residue

Diesel

Gas Clean-up

& Separation

Light Ends

Naphtha

Fixed Bed

Reactors

Vacuum

Flash

Conventional Technology

New Technology

Energy Advantages of Combi

Unit

Once through resid feed reduces energy consumption

Excess heat from slurry hydrocracking stage:

No heater for second stage

Additional steam generation which is used to drive equipment

Second stage allows for additional feed processing without separate unit

Highest Conversion & Large

Single Train Capacity

Once through hydrocarbon

Highest reaction rates and asphalteneconversion

Overall 95wt% (525°C- basis)

Asphaltene 90wt%

Fully back mixed hydrodynamics

Near isothermal reaction conditions

No hot-spot formation

Safely operate at high temperature

Single train capacity up to 65 kbpd (3.6 MMTPA)

Higher resid train capacities possible by utilizing KBR Rose technology

Fuel Oil and Coke Reduction and

Upgrading

Coke yield converted to

Diesel Yield

Why Additive and Not

Catalyst?

Operating in a temperature window above 435°C makes thermal cracking the dominant cracking mechanism

Additive developed based on a practice from the 1950s

Asphaltene conversion and metal absorption improved

Impregnation with catalytic metals was not helpful

Benefits

Adsorb coke precursors and contaminant metals to eliminate fouling

Increase liquid residence time = higher per pass conversion, higher asphaltene conversion

Use of Additive is more environmentally friendly

Less utilities to produce

Less disposal issue with limited metals

Multiple Configuration Options

Single stage

Single stage – DHT

Two stage – HYT

Two stage – HYC

Two stage – Recycle

Slurry

HYC

Slurry

HYCDHT

Slurry

HYCHYT

Slurry

HYCHYC

Slurry

HYCHYC

Naphtha

Diesel

VGO

Naphtha

Diesel

Naphtha

Diesel

VGO

Naphtha

Diesel

VGO

Naphtha

Diesel

VGO

Directly Marketable Products

Naphtha

Sulfur <1 ppmReformer Feedstock

Nitrogen <1 ppm

Jet

Sulfur <1 ppmJet A

Smoke Point >25 mm

Diesel

Sulfur <10 ppmEN590 – ‘Euro V’

Cetane Index >50

VGO

Sulfur <100 ppm

High Quality FCC

Feedstock

UOP K >12

CCR <0.1 wt%

Ni + V <1 ppm

VCC Unlocks Crude to

Petrochem Chain

ROSE (SDA)

VCC Stage

I

VCC

Stage II

KBR K-

COT

Aromatics

Complex

Naphtha and VGO

Naphtha

Distillation

Unit

Max VGO or

Max

Naphtha

Design

DAO

BTX

OlefinsAR/VR

Pitch

SR Distillate for

Hydrotreating

KBR

MAXOFINOlefins

Naphtha

KBR

SCORE

Naphtha,

DieselOlefins

VCC Residue Upgrading Economics

Upgrading Refinery Margin vs. Crude Price (NG 14 $/MMBTU)

0

20

40

60

80

100

120

-

5

10

15

20

25

2000 2005 2010 2015

Du

ba

i ($

/bb

l)

Gro

ss M

arg

in (

$/b

bl)

Base Refinery

VCC Scheme

Dubai

VCC creates an incremental average 5.7$/bbl gross margin across a broad range of crude oil prices

Natural Gas Price Effect on

VCC Margin

15.0

17.0

19.0

21.0

23.0

25.0

27.0

40 60 80 100

Ne

t M

arg

in (

$/b

bl)

Crude Oil ($/bbl)

NG= 10$/MMBtu

NG= 15$/MMBtu

NG= 20$/MMBtu

Experience

Historical Units

12 operated from the 1930s to 1950s

Large Demonstration Unit

3500 BPD, operated from 1980s to 2000

Large Pilot Plant

200 BPD, operated from 1980s to 2000s

Small Pilot Plants

1–3.5 BPD, operated from 1980s to present

Largest Feedstock Database

• Bachaquero• Bolivar Costa Fil• Boscan• Ceuta• Guahibo Lache• Merey• Morichal• Tia Juana• Zuata

• Russian Export

Blend

• Urals

• Nigerian

Med

• Arabian Light

• Arabian Heavy

• Maya

• Hondo

• Athabasca

• Cold Lake

• Lloydminster

• Peace River

• Amna

• Souedi

• Sirtica

• Visbreaker

Residue

• SDA Pitch

• FCC Cycle Oils

• Coal Tars

Commercialization Update

VCC Licensees

Licensee

Yanchang

Petroleum

Company

Yanchang

Petroleum

Company

TAIF

Cambodia

Petrochem.

Corporation

Riverview

Energy

Corporation

Jordan Petroleum

LocationYulin City,

ChinaShenmu, China

Nizhnekamsk,

RussiaCambodia

Indiana,

USAJordan

FeedstockFCC Surry Oil +

CoalCoal Tar

Vac. Residue

+ VGOVacuum

ResidueCoal Vacuum Residue

Capacity 450 KTA 500 KTA2.7 MMTA +

1.0 MMTA1.2 MMTA 1.6 MMTA 1 MMTA

ProductsNaphtha 17%

Diesel 59%

Naphtha 23%

Diesel 64%

Naphtha 14%

Distillate 60%

VGO 12%

Naphtha 21%

Diesel 62%

Naphtha 21%

Diesel 42%

Naphtha 12%

Diesel 51%

VGO 22%

Status Operating Operating OperatingMoved to Phase

2 of projectEnvironmental

permittingEngineering

Start-up 2015 2016 2017 TBD 2022 2021

VCC Process is Proven

Naphtha sulfur: <1 ppm

Diesel sulfur: 8 ppm

TAIF VCC Integration with Refinery

Kerosene

Diesel

VGO

Cycle Oil

C4 Olefins

C3 Olefins

Vacuum

Residue

7.3 MMTPA

Crude

Naphtha LPG

Naphtha

Gasoline

Kerosene

Diesel

Bitumen

Treated

VGO

Naphtha

CDU

VDU

DHT

Ble

nd

ing

FCC NHT

MTBE

VCC

Key Take-Aways

VCC™: The Choice for Residue

Upgrading

Alternate outlet for refinery fuel oil that will produce high value products

Highest conversion and feedstock flexibility

Configuration options to fit all needs

Experience from historical operations, demonstration units and pilot plants

Unmatched database of feedstocks

High capacity single train units

Directly marketable products

Three units commercially operating currently