Conference on

Upgrading Oil Refineries for Clean Fuel Production

25 27 October 2010
Kingdom of Bahrain
Organized Jointly by
Organization of Arab Petroleum
Exporting Countries (OAPEC)
and
National Oil and Gas Authority (NOGA)
2
GREAT SOCIALIST PEOPLES LIBYAN ARAB JAMAHIRIYA
NATIONAL OIL CORPORATION
UPGRADING OF AZZAWIYA REFINERY FOR
PRODUCTION CLEAN FUEL
2010
3
TRIPOLI
TOBRUK
BREGA
RASLANUF
AZZAWIYA
SARIR
BANGHAZI
SABHA
REFINERIES LOCATIONS
Refinery Capacity
bbl/day
Starting
Date
Type
RASLANUF 220,000 1985 Topping
AZZAWIYA 120,000 1974 Hydro skimming
TOBRUK 20,000 1986 Topping
SARIR 10,000 1988 Hydro skimming
BREGA
10,000 1962 Hydro skimming
Libyan refineries Capacities and Types
Total Capacity = 380,000 bbl/day
5
Product Production Domestic /
Demand
Surplus/
Deficit(-)
LPG 203 326 (123)
Gasoline 770 2,907 (2137)
Jet 1,876 588 1288
Diesel 4,163 5,059 (896)
HFO 6,719 2,653 4066
Production / Demand Comparison k t/y -2009
Total Production = 13,731 k t/y
2010
Comparison of EU and Libyan
Gasoline @ Diesel Specifications
INDUSTRIAL DEPT
2010
Certain Libyan and EU Gasoline Specifications
INDUSTRIAL DEPT
Parameter Libyan Spec. EU Spec.
RON 95 min 95 min
Sulphur, ppm 150 max 10 max
Olefins, vol. % 18 max 18 max
Aromatics, vol. % 35 % max 35 % max
Benzene, vol.% 4 %max 1 % max
Oxygen, wt % 2.7 max 2.7 max
2010
Parameter Libyan Spec. EU Spec.
Cetane index 50 min 46 min
Sulphur, ppm 1000 max 10 max
Flash point,
0
C 60 min 55 min
Aromatic, wt % 11% max 11% max
Density @ 15
0
C kg/m
2
Reported 820 - 845
Certain Libyan and EU Diesel Specifications
INDUSTRIAL DEPT
2010
Libyan refining sector needs upgrading after years of sanctions.
Libyans refining sector was hard hit by UN sanction which banned
Libya from importing refinery equipment.
Libya is seeking a comprehensive upgrade to its entire refining system,
with a particular aim of increasing output of gasoline and other light
products and enabling them to conform with new global fuel
specifications.
INDUSTRIAL DEPT
NOC Strategies to meet the Latest Clean Fuels Specifications
With the current trends for tighter specification for both gasoline and
diesel, National Oil Corporation (NOC) has adopted a long - term strategy
for meeting these new goals. The steps involved in the NOC strategy
development are:
1. Producing clean fuels at the lowest possible cost, at the same
time giving the best return on investment.
2. Developing a wide range of ideas for possible solutions to meet
the objectives.
3. Developing a selected options for further consideration.
4. Costing the options and assessing the economic viability.
5. Recommending a strategy and an investment roadmap.
11
Improve Gasoline /Diesel Specifications.
Conversion of HFO to Lighter Products.
Maximize Diesel Production.
Increase Gasoline Production to Cover Domestic
Market.
Refinery Petrochemical Integration.
Transfer Latest Technology to Libya.
Libyan Refineries Plans and Targets
2010
AZZAWIYA REFINERY
UPGRADING
PROJECT
INDUSTRIAL DEPT
Introduction
Azzawiya Oil Refinery is the first Refinery to be built by National Oil
Corporation in Libya. In 1974, the refinery began production with a
nameplate capacity of 60,000 b/d and in 1977, capacity doubled to
120,000 b/d. The two units with an identical capacity of 60,000 b/d
process Al Shararah (43 API) and Hamada ( 38 API ) crude oil with a
ratio of 90 % and 10 % , respectively.
Azzawiya Principal Activities
1. Refining of Crude Oil to produce LPG, St. Run Naphtha,
Gasoline, Kerosene, Gas Oil and Fuel Oil.
2. Processing of Reduced Crude Oil to produce Asphalt.
3. Lubricating Oil Blending Plant (including Filling and
Canning) to produce different grades of Lubricating Oils.
10/31/2010
.
90
1294
750
1000
1300
5000
REFINERY DESIGN CAPACITY
Kerosene
LPG
Gasoline
Gas Oil
Fuel Oil
Crude
Quantities in KT/Y
Azzawiya Refinery
INDUSTRIAL DEPT.
Atmospheric Residue
Kerosene
Gas Oil
CRUDE
Azzawiya Oil Refinery
Existing process units block diagram
C.D.U
Light Gas Oil
Heavy Gas Oil
Jet Kerosene
Gas
LPG
Naphtha
LN
HN
LPG
Reformate
Kerosene HDT
Stable unit
Reformer
NHDT
10/31/2010 17
Parameter Libyan Spec. Azzawiya Spec. Proposed Spec.
RON 95 Min 95 Min 95 Min
Lead, ppm Nil Nil
Density, Kg/m
3
Min 720 & Max 775 757
Aromatics, vol. % 35 max 42
Benzene, vol. % 4 Max 3.6 1% max
Sulphur, ppm 150 89 10
RVP, KPascal 45 Min
S-70 W-90
60
Oxygen, wt. % 2.7 Max 1.5 2.7 max
Azzawiya Gasoline Specifications
REFENING DEPT
10/31/2010 18
Parameter Libyan Spec. Azzawiya Spec. Proposed Spec.
Sp. Gr. @ 15.5
0
C Reported 0.84
Pour Point,
0
C In S Max +4
In W Max -1
- 9
Sulphur, ppm 1000 Max 700 10 - 50
Cetane Index 46 Min 53
Diesel Index 52 Min 61
Flash point, deg. C 60 Min. 66
Azzawiya Diesel Specifications
REFENING DEPT
2010
Maximizing the production of Light Fuels and increasing
Returns by conversion of Heavy Fuel Oil.
Meeting the International Market Standards, new
Specifications and Environmental Regulations.
Satisfying the Local Market demand for refined Products.
Azzawiya Refinery Upgrading Objectives
INDUSTRIAL DEPT
Future Upgrading Project
Future upgrading project target the enhancement of Azzawiya Refinery
economical resources through increasing the revenue against refining crude oil
when production output is increased so that produced amounts can cope with
consumed amounts; eventually, this helps overcome the shortage of gasoline now
encountered.
Furthermore, this aims to the improvement of oil products, enabling them to
conform with global specifications.
It also helps in the treatment of gas wastes and oil residue in order to protect the
environment and the surroundings.
Within these project, the Harbor in intended to be expanded to meet
importation and exportation requirements of the oil and oil products.
Azzawiya Refinery Upgrading Project
Naphtha Conversion
Process Units
Residue Conversion
Process Units
Azzawiya Refinery Upgrading Project
Naphtha Conversion Process units
This phase targets:
1. Upgrading the refining capacity and the multiplication
of gasoline production.
2. Updating the control and measurement systems.
3. Improving diesel specifications and treating oil
residue so as to protect the environment.
4. Contribution to economical growth.
Residue Conversion Process units
This phase is still under consideration. It targets the cracking and
transforming of heavy fuel oil into highly economical white products,
and also increasing the produced gasoline and optimizing the
economics of the Refinery in a way that achieves good profitability.
Naphtha Conversion Process units
Hydrobon and Reforming Units
- Necessary modification of the existing units for increasing the refining
output.
- Naphtha Stabilizer Unit.
To remove most of the Butanes and lighter component.
- Naphtha Reforming Unit.
To convert Hydrotreated Naphtha into high Octane Motor Gasoline.
- Light Naphtha Isomerization Unit.
- This unit isomerises normal C5 and C6 paraffin to their respective isomer, which
have higher-octane value.
- Diesel Hydrobon Unit.
This unit reduces diesel sulphur content for improving product quality.
- Naphtha Hydrobon Unit.
- This unit designed to Hydrotreat heavy Naphtha by removing Sulphur and
Nitrogen in order to protect the reforming catalyst from poisons.
A schematic diagram showing Naphtha Conversion Project
Crude
oil
Heavy Fuel Oil
Gasoline
Pool
Kerosene
Diesel
Existing units
New units
Burning gas
LPG
C.D.U
Diesel Hydrobon
Kerosene Hydrobon
Naphtha Stabilization Naphtha Hydrobon Naphtha Platforming
Isomerization
Naphtha Platforming
Naphtha Hydrobon
Naphtha Stabilization
Residue Conversion Project
Heavy Fuel Oil FCC Unit.
The FCCU break up the heavy oil into more volatile gasoline and diesel
range materials.
LPG treating unit.
This unit remove mercaptans so that final product meets sulphur
specification.
Gasoline Hydrobon Unit.
MTBE Unit.
MTBE used as an octane enhancer.
Cycle Oil Treatment Unit.
Sulfur Extraction Unit.
This unit remove sulfur from crude oil thus reducing sulfur dioxide emission
from refinery plants and combustion engines.
Production after Post Naphtha and
Residue Conversion Project (KT/Y)
Post Residue
Conversion
(6 million ton)
Post
Naphtha
Conversion
Present Prod. Product S. No.
245 164 90 LPG 1
- - 566 Untreated Naphtha 2
955 776 1,000 Kerosene 3
2,583 1,568 750 Gasoline 4
1,750 1,704 1, 294 Diesel I * 5
298 - - Diesel II ** 6
0 1,648 1,300 Heavy Fuel Oil 7
213 - - Heating Oil 8
* Diesel containing less than 10 PPM of sulfur.
** Diesel containing less than 500 PPM of sulfur.
Conclusions:
Producing Clean fuel is clearly a challenge in term of environmental
impact and capital investment. The need for converting heavy fuel oil to
valuable lighter products and for producing low sulfur gasoline and diesel
fuel will continue to encourage refiners to evaluate proven hydrotreatment
and residue conversion process options.
Fluid Catalytic Cracking and Hydrotreatment units are powerful tools that
refiners can use to meet future market demands and product specifications.
These tools offer solutions to address major challenges such as the
decreasing heavy fuel demand, the need for low sulfur diesel fuel, reduced
sulfur emission, reduced sulfur content in gasoline, and the increasing of
gasoline and diesel production.
28
INVESTMENT OPPORTUNITIES
IN
LIBYAN OIL REFINERIES
AND
PETROCHEMICALS
29
Investment Projects
Investment Scope:
Inviting international companies for investment and joining in executing,
funding, and management of oil and gas processing projects.
Refineries Investment projects:
- Upgrading of Azzawiya Refinery.
- Upgrading of Tubrok and Sarir Refineries.
Petrochemicals Investment projects:
Upgrading of Ethylene plant.
Upgrading Polyethylene plant.
Upgrading of Methanol plants.
Investment Basis
Projects shall be based on joint venture with NOC.
Participation shares shall range from 0-100% for
partners.
Joint venture companies shall be independently run
according to their articles of association to be
established and shall have their own salary,
compensation, and employment system.
Tax exception for at least five years.
Costumes duties and dues for the common projects
during construction and up to start up date are
excepted.
Costume duties and Harbor handling fees for
operating materials imported for project
requirement will be excepted for a certain period to
be defined during detailed joint venture setup
discussions.
The investing companies shall enjoy the
following facilitation:
Thank you
www.noclibya.com