Refinery FCCs tailored to propylene, diesel can lift margins
Cuckoo James
02-Apr-2014
Interview article by Cuckoo James
BARCELONA (ICIS)–Tailoring fluid catalytic crackers (FCC) to produce more propylene and diesel could lift low European refinery margins, a senior executive at UOP said on Wednesday.
“On an FCC you can make propylene as well as gasoline by running at a higher severity. The usual problem is you have to manage the increased quantity of co-products such as butene or pentenes ” said Nigel Orchard, UOP general manager, Europe, Africa and CIS, in an interview with ICIS on the sidelines of the 8th annual Global Refining Summit in Barcelona.
In an FCC – primarily used in producing additional gasoline in the refining process – the butane and lighter hydrocarbons are processed further to separate them into fuel gas – mostly methane and ethane – propane, propylene, butane, and butane for end-markets or for further processing.
“We are developing a technology to help the FCC make more propylene at the same time as making diesel by converting light olefins to diesel,” he added.
In effect, refineries will have the option to use new
technologies at their FCC units to correct the imbalance
between market demand for diesel and gasoline, whilst
producing more propylene.
Propylene supply has been tight in Europe in recent
times, which makes it an interesting market for refiners keen
to increase profit margins while simultaneously producing
high-demand transport fuels.
Europe is net short on diesel and is currently importing to
meet its increasing demand.
Orchard says the closure of European refineries has outpaced
European growth in diesel demand, increasing the
opportunities for diesel importers, especially from the
commonwealth of independent states (CIS) and the Middle East,
and more recently the US.
“There will be some diesel coming from the US but it is
nowhere near CIS and Middle East imports into Europe,” he
added.
When asked about the European petrochemical industry he
added, “It is going to have a tough time because of higher
feedstock cost versus the US and the Middle East.”
The impact of US shale gas on Europe will be “only to the
extent shale gas liquids or NGLs [natural gas liquids] get
shifted to Europe. Already ethane is being contracted into
Europe,” he said.
“Also, downstream petrochemical products such as polymers
made using the NGLs can be imported from the US,” Orchard
added.
“These products based on US NGLs would be cheaper in the same
way Middle East products are cheaper. The shale gas impact on
petrochemicals would be the same as shale gas impact on oil
products.”
The senior executive at the technology firm, which provides
technology solutions to the refining industry, said it was
not aware of any shift in LPG production versus naphtha among
European refiners.
“LPG production is pretty much involuntary except for FCCs.
The amount of LPG that is made is fixed by the crude type and
by the severity of conversion processes. The higher the
severity, the more LPG you produce,” he said.
Production of naphtha on the other hand is about making a
choice between gasoline and naphtha, he said. “It is driven
by the markets. Naphtha margins today are weak but nor is it
very profitable to make gasoline,” he said.
However, refineries are committed to making gasoline for
technical reasons, Orchard said: “The problem is that
refiners have to run their reformers to produce gasoline in
order to make enough hydrogen.”
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