AM-11-19 Refinery Configurations for Maximum Conversion to Middle Distillates

Description:

The International Maritime Organization’s (IMO) newly proposed limits of 0.5 wt % sulfur in bunker fuel implies that refiners will have to either replace the traditional bunker fuel oil (3.5% S) with diesel or increase conversion capability to convert low value fuel oil to diesel. In either case, the spread between diesel and fuel oil is likely to increase. Gasoline demand is dropping relative to diesel even in traditionally gasoline-oriented markets such as North America, and this trend is expected to continue. The trend has led to most recent major grassroots projects selecting distillate-oriented conversion technologies; very few, if any, refineries have its entire conversion strategy focused on FCC and many FCC units are operating at low severity (“distillates mode”) or occasionally converting to a propylene producer. Therefore, modern conversion strategy is based on reducing or eliminating production of fuel oil, maximizing diesel and only producing the amount of gasoline that makes strategic sense in the local context. Chevron Lummus Global (CLG) explores several configurations including some novel process configurations developed by CLG that are based on commercially proven technologies to maximize conversion to diesel in grassroots units and in revamp situations. Implications of eliminating traditional gasoline-oriented units such as reformers and FCC are examined. A brief discussion on phasing in investments is also included. These strategies will permit a refiner to remain competitive even in periods of depressed margins.