LC-MAX

Upgrading Residual Oil Products for the

Maximum Production of Diesel

Jan Steegstra

European Fuels Conference

Paris
March15, 2012

A Chevron and Lummus Technologies Joint Venture

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Chevron’s refining network can
process over 600,000 barrels of heavy
crude and residuum per day
n  In the United States, our El Segundo Refinery,
integrated with our nearby heavy oil production,
continues to upgrade its heavy oil processing
capacity and flexibility.
n  In South Korea, Chevron is a 50 percent partner in
the 840,000 barrel-per-day GS Caltex Yeosu
Refinery complex that is currently expanding its
heavy oil capacity.
n  And our 350,000 barrel-per-day Pascagoula,
Mississippi, refinery is one of the world’s most
advanced heavy oil processing facilities.

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Chevron’s Heavy Oil Production in
California

n  San Joaquin Valley

n  Headquarters: Bakersfield,
California
n  Manages oil and gas production operations in 8 area fields,
with a focus on heavy oil.
n  Largest producer in the state of California.
n  Leaders in the application of new technology to enhance
recovery operations, particularly around the use of steam.
n  Home to Chevron’s global Heavy Oil Center of Excellence.

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Types of Crude Oil

100% 5%

19% 13%
90%
27%
37%
80%
19%
70% 33% LPG
23% Naphtha
60%

50% 26% K+D

30%
VGO
40%
29%
VR
30%
49%
27%
20% 31%
19%
10%
8%
0%
Arab XL Arab M Maya Boscan

A Chevron and Lummus Technologies Joint Venture

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 Global Heavy Oil Resources
Oil-in-Place Oil Production

Light + Medium Light + Medium

Extra Heavy +
30% 91%
Bitumen
15% 55% 9%
Heavy +
Heavy Extra Heavy
+ Bitumen
Alaska
UK
Netherlands Russia
Canada
E. Europe
USA Italy Turkey
Jordan Kuwait
Lower 48 Egypt Iran
Mexico Saudi Arabia India China
Trinidad
Nigeria Oman
Barrels in Place Indonesia
Colombia Venezuela
1 Billion Ecuador
10 Billion Peru Brazil
Angola
100 Billion Madagascar Australia
> 1 Trillion Argentina

A Chevron and Lummus Technologies Joint Venture Source: Chevron

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 Future Downstream Challenges
n  Available crude oils are
becoming heavier with
higher contaminants
n  Diesel demand growing
n  Environmental concerns
make product specifications
more difficult
n  Very heavy crudes favor
upgraders close to fields
n  Bio-renewables, F-T wax
(from GTL plants) need
upgrading

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 CLG Downstream Technology
Hydroprocessing for the Future
n  Hydrotreating cleans up
contaminants
n  Hydrocracking converts
heavy oils to high quality jet
and diesel
n  Chevron hydroprocessing
developed 50 years ago to
handle SJV crudes – heavy
and high in nitrogen
n  LC-FINING hydrocracks
vacuum resid

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What is LC-FINING?
n  An Ebullated Bed Resid Hydrocracking
Process Designed to Process Heavy, High
Metals, and/or High Solids Feeds
l  Atmospheric and/or Vacuum Residues
l  Bitumen From Oil Sands
l  Deasphalted Oil

n  Ebullated (Expanded) Bed Reactor is Key

Process Feature
l  Isothermal Reactor Operation
l  No Pressure Drop Build-Up
l  Catalyst Can Be Added and Withdrawn
On-Stream
l  Greatly Extends Unit Run Length Versus
Fixed Bed Hydroprocessing

n  Process Features High Distillate Yields and

High Heteroatom and Metals Removal

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 LC-FINING Commercial
Unit Summary
10 Modern Plants (13 Trains) in Operation or Under Construction
Shell
BP Syncrude Slovnaft RAM 1 and 2 Neste Oil Shell 3 Northwest GS Caltex
Unit USA Canada Slovakia Italy Canada Finland Canada Canada Korea
Athabasca
Various Atm/Vac Urals /Mid Vac. Vac. Mid East
Feed Type Urals VR Urals VR /Cold Lake
VR Bitumen East VR Bitumen Bitumen VR
VR
Capacity,
75,000 50,000 23,000 25,000 79,000 40,000 47,000 29,000 60,000
BPSD
No. of
3 1 1 1 2 1 1 1 2
Trains
Resid
High Medium Medium Medium High Medium High High High
Conv.
Max
Process Max CCR Max CCR Stab Stab Stab
SCO Diesel SCO SCO
Goal Reduction Reduction LSFO LSFO LSFO
Yield

LC-FINING Mod Sulfur Mod Sulfur

Feed to Feed to Stab Stable LSFO Gasif. Stable
Bottoms Heavy Heavy
Coker Coker LSFO LSFO Feed LSFO
Utilization SCO SCO

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GSCaltex LC-FINING Unit

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 Residue Hydrocracking Challenges
n  Conversion restricted by the nature of feed
n  Sediment formation rises rapidly at higher conversions;
conversion often limited by back-end fouling
n  Full reactor potential (capital utilization) often restricted by
sediment specification on UCO
n  Unconverted oil from residue hydrocracking will not meet
future IMO bunker fuel oil specifications
n  Hydrogen is wasted in hydrogenation of asphaltenes in
UCO

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LC-MAX
Block Flow Diagram
Make-up H2

Gas Cooling
Purification &
Compression

First HP/HT
Resid Separator
LC-FINING
Feed
Reaction
Stage
Atm
Fract
Atmospheric
Distillates

H2 Rich Treat Gas Vac

Fract
Second Vacuum
LC-FINING Distillates
Reaction
Stage
Vacuum
Residue
DAO Solvent
70-80% lift
Deasphalter

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LC-MAX
Process Features
n  Permits conversion limits to be extended to 85 wt%, even for
very difficult residuum
n  Fully integrated multi-stage process
n  Whole VR is hydrocracked in a first reaction stage
n  Unconverted oil is de-asphalted to remove heavy asphaltenes
l  hydrogen not wasted in asphaltenes hydrogenation and cracking;
cleaner operation
n  DAO is hydrocracked in a dedicated reaction stage
l  much higher reaction rate constant à smaller reactor

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LC-MAX
Process Features cont’d
n  Increases crude processing flexibility – enables opportunity
crudes to be processed
n  First stage conversion is limited to 48 to 60% to limit sediment
formation
l  Permits operation at relatively high temperature and high
space velocity (reduced reactor size)
l  Permits conversion to be achieved in a single reactor
(reduced capital)
n  Second stage conversion is maintained between 80 and 95%
l  Thanks to negligible asphaltene content of DAO second
stage can be run hot ~ 438°C (820°F) (reduced reactor size)
l  Low asphaltenes content results in negligible sediment
formation (cleaner operation, much less fouling)
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Comparison of Reactor Operating Conditions
Stand-alone LC-FINING vs LC-MAX

Stand-alone LC-MAX
LC-FINING
1st Stage 2nd Stage
Flow Rate Base Base 0.4 Base
Reactor Temp °C Base +10 +28
Reactor Volume Base 0.45 Base 0.35 Base
Chemical H2 Cons Base 0.7 Base 0.4 Base
Catalyst Addition Rate Base 0.75 Base 0.13 Base

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LC-MAX Features
n  Reactor volume for high conversion <= conventional
LC-FINING unit
n  Catalyst addition rate equal to or less than that
consumed in units producing low sulfur fuel oil
n  Downstream equipment fouling is much reduced

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Disposition of Asphalt
n  Coker
n  Gasifier
n  Pelletized
n  Blended to make Fuel Oil
n  Burned hot as fuel with minimal cutterstock

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 Case Study
n  Base refinery has no residue upgradation, only Visbreaking
n  Case 1: VR is sent to a Delayed Coking Unit
n  Case 2: VR is sent to a LC-FINING unit
n  Case 3: VR is sent to a LC-MAX unit

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 Case Study: Base Refinery
n  Base refinery is processing 200,000 BPD of Arab Light/
Arab Medium (50/50 vol) crude blend and consists of:
l  FCC: 22,800 BPD
l  Hydrocracking: 25,800 BPD
l  Distillate HDT: 63,000 BPD
l  Hydrogen Plant: 76 MMSCFD
l  26,400 BPD Visbreaking Unit to be replaced by Primary
Upgrading Unit
n  Other units: 14,500 BPD reformer; 11,400 BPD naphtha
HT; 4,400 BPD alkylation; 310 TPD sulfur

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Overall Yield of Products (Volume)

Product Yield Base Delayed LC-

LC-MAX
on Crude, Vol % Refinery Coking FINING

LPG 3.8 5.0 4.7 5.3

Naphtha 9.2 14.5 12.6 13.7
Gasoline 13.3 12.5 12.4 12.7
Jet 15.0 15.0 15.0 15.0
Diesel 35.9 52.2 49.0 56.5

C3+ Distillate Yield, Vol % 77 99 94 103

0.5% S Fuel Oil

1.5% S Fuel Oil 10.9
3.5% S Fuel Oil 19.8
Asphalt 5.0 3.0
Fuel Grade Coke 5.6 (FOE)
Volume Gain,% on Crude 1.98 -0.8 4.66 6.30

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Overall Yield of Products (Weight)

Product Yield Base Delayed

LC-FINING LC-MAX
on Crude, Wt % Refinery Coking
LPG 2.4 3.2 3.0 3.3
Naphtha 7.1 11.3 9.9 10.8
Gasoline 11.3 10.8 10.7 11.0
Jet 13.5 13.6 13.6 13.7
Diesel 34.3 49.7 46.9 53.8
C3+ Distillate Yield, Wt% 69 89 84 93
1.5% S Fuel Oil 12.3
3.5% S Fuel Oil 22.1
Asphalt 6.0 3.8
Fuel Grade Coke 7.4

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Summary of Incremental Capacities

Delayed
Capacity LC-FINING LC-MAX
Coking
Delayed Coking, BPD 37,600 - -
LC-FINING, BPD - 38,300 -
LC-MAX, BPD - - 36,400
Hydrocracking, BPD 13,900 9,500 26,000
Distillate HT, BPD 20,400 16,600 23,000
Hydrogen Plant, MMSCFD 34 73 103
Sulfur Recovery, TPD 121 212 237

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Upgrading Economics
2,500 33.0
32.3
TIC MM $, NPV MM$

2,000 32.0
31.1

IRR, %
1,500 31.0

1,000 30.0
29.1
500 29.0

0 28.0
Delayed
LC-FINING LC-MAX
Coking
TIC, MM $ 1,047 1,115 1,443
NPV, MM $ 1,265 1,590 2,269
IRR, % 29.1 31.1 32.3
MD Yield wt% 63 61 79

Economics are incremental to Base Refinery, Debt/Equity=0/100, 30% tax rate, 4 years of construction, straight-line
depreciation over 15 years of project economic life, and 15% discount rate for NPV calculations

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 LC-MAX Process
Summary
n  Process concept has been proven and is ready for
commercialization
n  Maximizes residue conversion to ~85 wt %
n  Increases flexibility to handle more difficult feeds
n  Reduces dependency of conversion on type of feed processed
n  Rejects heavy asphaltenes from process
n  Reduces reactor volumes, catalyst and hydrogen consumption
n  Has very attractive return on investment
n  Process can be applied to revamp and grassroots scenarios

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