INSIGHT: Saudi Aramco’s multi-track approach to crude-to-chemicals can change the global game

Joseph Chang

01-May-2019

DHAHRAN, Saudi Arabia (ICIS)–Saudi Aramco is working on multiple technology tracks for crude oil-to-chemicals that would offer greater competition to US shale gas-based crackers, changing the game in global petrochemicals.

Source: Saudi Aramco

Its planned mega project with SABIC in Yanbu could include one or more of these routes, or simply a reconfiguration of the refinery/cracker integration to maximise petrochemicals capacity.

“Aramco is taking a different approach on multiple technology tracks – it’s not a one-trick pony. We are looking at converting crude oil to chemicals with minimal processing steps,” said a senior technologist, at a press tour at Aramco’s headquarters.

THERMAL TRACK
One of the technology tracks involves thermal crude-to-chemicals (TCTC) which is a two-step process, he noted.

The first step is a “crude conditioning phase” where oil is sent to a hydroprocessing plant where it undergoes hydrotreating and hydrocracking, removing contaminants such as metals, sulphur, nitrogen and salt.

In the second step, the processed crude is sent to a steam cracker to produce petrochemicals, said the technologist.

The goal in this TCTC process is to transform around 70% of the oil barrel to chemicals versus 8-12% from a conventional refinery/cracker configuration.

In addition, the process should result in about a 30% reduction in capital expenditures (capex) for a project, he added.

For the TCTC technology track, Aramco is partnering with engineering and process technology firm McDermott and Chevron Lummus Global (CLG), the latter being a joint venture between Chevron and McDermott. McDermott merged with CB&I in May 2018. Aramco announced the deal with CB&I and CLG earlier in January 2018.

Aramco expects the TCTC technology to achieve “commercial readiness” by 2020. This technology could be used to build a world-scale cracker with 1.5m tonnes/year of ethylene capacity, processing around 120,000 bbl/day of crude oil, said the technologist.

CATALYTIC PROCESS TRACK
Aramco is also engaging in a distinct technology track on catalytic crude-to-chemicals (CCTC) with Axens and TechnipFMC. This involves processing oil in a high temperature fluidized bed reactor, and builds on past Aramco successes in high severity fluid catalytic cracking (HS-FCC), he said.

The aim in this CCTC process is to convert 60-80% of the oil barrel to chemicals, with a similar 30% capex reduction. Aramco is targeting commercial readiness for this technology a year after that for TCTC, or in 2021.

The CCTC route would also process around 120,000 bbl/day of crude but into a basket of olefins – not just ethylene, said the technologist.

Both the TCTC and CCTC routes bypass the refinery step, thus reducing the capex requirements, he said

Beyond these technologies, Aramco at its R&D centre in Dhahran is working on “other unpublicised high risk/high reward technology tracks that would change the game in petrochemicals – the Holy Grail in crude to chemicals”, said the technologist.

One reason for taking multiple tracks is to utilise different oil feedstock slates. The TCTC process would use Arab light crude as well as other grades.

THIRD TRACK – RECONFIGURATION
In the meantime, Aramco’s planned mega project with SABIC announced in 2016 can be considered a third track, using existing proven technologies but reconfiguring the refinery/petrochemical integration to skew towards more chemicals production on the order of 40-50% of the oil barrel versus the traditional 8-12%, said the technologist.

This project targets 3m tonnes/year of ethylene and total petrochemicals and base oils capacity of 9m tonnes/year. It is in the front-end engineering and design (FEED) stage with a targeted start-up of 2025.

Aramco is also in the process of acquiring SABIC in a $69bn deal that would significantly bulk up its downstream operations.

KEEPING OPTIONS OPEN
With its multiple technology tracks, Aramco is keeping its options open on which process or processes to use, and how and where it will apply the technologies, including within the mega project.

A world-scale petrochemical project using new crude-to-chemicals (CTC) technology could cost $5bn or less, he noted.

If one or more of the technologies proves viable, Aramco could deploy CTC in separate additional projects.

Aramco is clearly “all-in” on commercialising ground breaking technologies to go directly from crude oil to chemicals, bypassing the refinery to gain a greater focus on petrochemical economics.

By Joseph Chang

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