HARNESS THE POWER
RENTECH engineers build unmatched power and performance into
every boiler we deliver.
Our 80-acre manufacturing facility—the industry’s most technologically advanced—includes heavy bay and light bay areas with direct access to rail, cross-country trucking routes and shipping facilities. We master every detail to deliver elemental power for clients worldwide. Take an expanded tour of our facilities today at www.rentechboilers.com/facilitiesHARNESS THE POWER WITH RENTECH.
OF MANUFACTURING INNOVATION
HEAT RECOVERY STEAM GENERATORS WASTE HEAT BOILERS
FIRED PACKAGED WATERTUBE BOILERS SPECIALTY BOILERS
HydrocarbonProcessing.com | MARCH 2015
®
ROTATING EQUIPMENT
New API guidelines improve design of compressor sealsREFINING
DEVELOPMENTS
Better modeling optimizesshale oil processing
PLANT DESIGN
Rethinking secondary reformertemperature enhances ammonia production
SPECIAL REPORT:
Corrosion Control
New duplex stainless steels reduce
HARNESS THE POWER
RENTECH engineers build unmatched power and performance into
every boiler we deliver.
Our 80-acre manufacturing facility—the industry’s most technologically advanced—includes heavy bay and light bay areas with direct access to rail, cross-country trucking routes and shipping facilities. We master every detail to deliver elemental power for clients worldwide. Take an expanded tour of our facilities today at www.rentechboilers.com/facilitiesHARNESS THE POWER WITH RENTECH.
OF MANUFACTURING INNOVATION
HEAT RECOVERY STEAM GENERATORS WASTE HEAT BOILERS
FIRED PACKAGED WATERTUBE BOILERS SPECIALTY BOILERS
WWW.RENTECHBOILERS.COM Select 52 at www.HydrocarbonProcessing.com/RS
MARCH 2015 | Volume 94 Number 3
HydrocarbonProcessing.com
SPECIAL REPORT: CORROSION CONTROL
35 How caustic stress leads to failures of incinerator caustic spray nozzles
E. Al-Zahrani, A. Al-Meshari and M. Maity
41 Extend heat exchanger lifecycle with hyper-duplex stainless steel
E. Perea
47 Evaluate the reliability of a reformer heater convection tube
H. Yoon, J. Nam and S. Kim
PLANT DESIGN
53 Determine the design metal temperature for a secondary reformer
B. K. Sharma
HEAT TRANSFER
55 Improve the operation of fired heaters
K. Malhotra
REFINING DEVELOPMENTS
61 Shale oil characterization optimizes refining process
S. Sayles
67 Update on the catalytic cracking process and standpipes—Part 1
P. K. Niccum
PROCESS CONTROL
73 Optimize online monitoring of base oil
H. Kim and G. Fannin
ROTATING EQUIPMENT
77 Contain ‘normal’ leakage from primary seals
R. Smith and S. Shaw
WHAT’S NEW IN CATALYSTS—SUPPLEMENT
C-84 2015 catalyst developments: Innovation and value creation
HP staff
Cover Image: Austrian OMV installed a SNOX plant, a fuel gas desulfurization process licensed by Haldor Topsøe, to remove SO2 and NOx from the flue gases of the power and steam generation facilities at its Schwechat refinery
near Vienna, Austria. The facilities are fired primarily with high-sulfur heavy residual oil. Photo courtesy of OMV.
DEPARTMENTS 4 Industry Perspectives 10 News 17 Industry Metrics 103 Innovations 106 Marketplace 108 Advertiser Index 109 Events 110 People COLUMNS 9 Editorial Comment
Downstream has good news for 2015
19 Reliability
Consider oil-resistant cable terminations to increase electric motor reliability
21 Project Management Energy efficiency: Getting in early pays off exponentially
23 Global
Latin America’s refinery product demand is decelerating
27 Petrochemicals
Fatal DuPont leak shows need for improved chemical safety systems
29 Engineering Case Histories Case 83: What are useful questions to ask before starting a vibration analysis?
31 Boxscore Construction Analysis How low oil prices are affecting new project announcements
34
4MARCH 2015 | HydrocarbonProcessing.com
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Notables from BP’s Energy Outlook 2035
In mid-February, BP released its outlook for the next 20 years. As reminded by BP’s new chief economist, Spencer Dale, the outlook is a projection of what is most likely to occur based on the influences of technology, global and regional econom-ics, and political policy. So, what can the energy industry expect over the next 20 years?
• The global GDP will double by 2035, largely driven by growing populations and increased productivity in developing nations. GDP growth will be supported by a 37% increase in energy consumption.
• After 2015, there will be a clustering of hydrocarbon energy resources. Crude oil, coal and natural gas will make up similar percentages (26% to 28%) of the energy supply over the next decade as natural gas gradually replaces coal in the power sector (FIG. 1).
• Consumption of liquid fuels (oil, biofuels and other liquids) will rise by 11 Mbpd over the next 20 years, driven by non-OECD nations’ transport and industry demands. • Looking ahead, new energy sources, such as renewable
fuels, shale gas, tight oil and oil sands, will account for 8% of total energy consumption (FIG. 2).
The energy industry is a long-term business. The full report can be found online at www.bp.com/energyoutlook.
Oil Coal Gas Hydro Nuclear Renewables* Shar es of primary ener gy , % 1965 1975 1985 1995 2005 2015 2025 2035 Source: BP’s Energy Outlook 2035
*Includes biofuels 0 10 20 30 40 50
FIG. 1. Shares of primary energy, 1965–2035
2035 2020
2005 Renewables in power Shale gas
Tight oil, oil sands and biofuels
Pr oduction, Bt oe 1990 0 1 2 3
Source: BP’s Energy Outlook 2035
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• Consider new designs for sour water strippers, Saudi Aramco
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Editorial
Comment
STEPHANY ROMANOW, EDITOR
The outlook is optimistic for down-stream companies. Independent refiners are positive on present and future de-mand for transportation fuels.
Investments by US independent.
Valero Energy Corp. continues to strate-gically invest in its refining and logistics assets. New projects are focused on in-creasing the company’s ability to process greater volumes of light shale oil. Valero is building two crude topping units at its Corpus Christi, Texas and Houston, Texas refineries. When completed, the new units are expected to reduce feed-stock costs at both refineries and add 160 Mbpd of total processing capacity for 50 °API crudes.
Distillate expansions. Valero is also expanding hydrocracking capacity within its network. The Meraux, Louisiana hy-drocracker project was completed in the fourth quarter of 2014. Other expansion projects are underway at the St. Charles, Louisiana and Port Arthur, Texas refiner-ies. Both hydrocracker projects will add 30 Mbpd of capacity and are expected to start up in the second half of 2015.
Focus on light domestic crude. Simi-lar to Valero, Marathon Petroleum is in-creasing light sweet crude and conden-sate processing capacity. The company recently finished building a 25-Mbpd condensate splitter at its Canton, Ohio refinery. A 35-Mbpd splitter is slated for completion by the second quarter of 2015 at the Cattesburg, Kentucky refin-ery. Both refineries are near the Utica shale play. Also, a 30-Mbpd revamp is planned at the Robinson, Illinois refinery to improve the processing of light crudes; project completion is expected in 2016.
In December 2014, Flint Hills Re-sources began construction at the Cor-pus Christi West refinery. The project, named Project Eagle Ford, is expected to cost approximately $600 million. Con-struction will take 36 months. After the project is complete, the West refinery will have the capability to process 100% domestic crude. The West refinery is a 230-Mbpd refinery and is located near the Eagle Ford play.
Projects are moving forward in the US to handle greater volumes of domestic crudes and incorporate more flexibility and efficiency.
INSIDE THIS ISSUE
23
Global. Latin America had been a growing market for transportation fuels and petrochemicals. This region was on a super-cycle for products and energy. Things have changed for this region, according to John Galante with ESAI. What is the future demand for energy and HPI products for this region?34
Corrosion control. In the HPI, corrosion is an ongoing and dynamic issue for processing facilities and equipment. It is often the root cause for equipment failure, leaks and accidents. Several case studies by SK Innovation Co., Sandvik Materials and SABIC Technology Center investigate leaking and cracking equipment events, and the use of new steels to extend equipment service life.55
Heat transfer. Fired heaters are huge energy consuming units and widely used in HPI facilities. The safe and reliable operation of fired heaters is critical. Several case histories demonstrate better methods to design and operate fired heaters.61
Refining developments. The abundance of shale oils has redefined the crude slate in North America. These new crudes have different characteristics from conventional oils. Better crude evaluation methods will help refiners process these new oils with minimal impact on operating conditions.77
Rotating equipment. New advances, such as dry containment seal technology, can limit fugitive emissions, especially in refinery environments. These seals can also provide a lower-cost solution to liquid dual-seal systems.Downstream has good news for 2015
FIG. 1. Valero’s Corpus Christi petroleum refinery was commissioned in 1983. It is one of the world’s most complex refineries.
| News
Labor union strike affecting
US refining industry
There is no end in sight to the United Steelworkers Union (USW) strike affecting several US refineries. The USW has filed unfair labor practices charges against nine refineries operated by BP-Husky, LyondellBasell Industries NV, Marathon Petroleum Corp. and Tesoro Corp., and is seeking wage increases, health benefits, tougher worker fatigue prevention measures, and an end to non-union contract workers performing refinery maintenance. Royal Dutch Shell is bargaining on behalf of employers. The USW says a fair agreement is impossible until the companies “show respect for the union workers who have made them and their shareholders very wealthy,” while Tesoro claims its plants can run for a “very long period” during the walkout. The middle ground seems smaller than ever.
Photo: The Anacortes refinery in Washington State, with a capacity of 120 Mbpd, is one of three Tesoro facilities affected by the USW strike.
MIKE RHODES, TECHNICAL EDITOR
News
Halder Topsøe brings
Sweden demonstration
biogas plant onstream
Swedish energy company Göteborg Energi announced that GoBiGas, the world’s first large-scale demonstration plant for the production of biogas through the gasification of biofuels and residues from forestry, is now in operation supply-ing gas to the country’s natural gas grid.
GoBiGas is an abbreviation of Gothen-burg Biomass Gasification Project and represents a large investment for Göteborg Energi. The project has received funding from the Swedish Energy Agency and con-sists of two primary phases: Phase 1 has focused on establishing the demonstration plant now in operation, while Phase 2 is to expand to a full-scale commercial plant.
Haldor Topsøe A/S provided licens-ing, catalyst and engineering for the gas cleaning, and the methanation section for the project, enabling the plant to produce substitute natural gas (SNG) by thermal gasification of forest residues such as branches, roots and tops. The biomass is converted to gas with a methane content of over 95%. The plant has a capacity of 20 MW of SNG.
Until now, all running industrial refer-ences related to SNG in Haldor Topsøe have been based on coal gasification or coke oven gas. With the successful startup of GoBiGas, Haldor Topsøe has demon-strated that catalytic solutions and pro-cess technology also make it possible to efficiently carry out biomass to SNG con-version (FIG. 1).
Industry performance
increases industrial
valves demand in US
The need for industrial valves in the US is forecast to increase 4.9%/yr to $19.8 B in 2018, according to a new study from Cleveland, Ohio-based industry market research firm The Freedonia Group Inc.
The construction market will post the strongest increases in valve demand,
the study says, as both residential and nonresidential construction spending increase at double-digit growth rates, rebounding from the declines recorded during the 2008–2013 period. Utilities construction will also recover, bolstering the large associated valve market.
Process manufacturing will remain the largest end-use market for valves, and gains here will be supported by growth in manufacturing output, particularly in the chemical industry.
Demand for automatic valves is fore-cast to outpace increases in standard valve sales as a result of consumer efforts to improve operational efficiencies. The positive outlook for most valve-using in-dustries will lead companies to opt for
automatic products in applications where they may have purchased standard valves in weaker economies. Automatic regula-tor valves will post the strongest gains of any product, as a result of their wide-spread use in petrochemical/chemical, oil and gas, and utility applications (TABLE 1).
Second-generation
biofuels market expected
to reach $23.9 B
According to a new report by Allied Market Research, the global second-gen-eration biofuels (advanced biofuels) mar-ket will reach almost $24 B by 2020, reg-istering a compound annual growth rate (CAGR) of 49.4% during 2014–2020.
TABLE 1. US industrial valve demand in millions of dollars
Annual growth, %
Item 2008 2013 2018 2008–2013 2013–2018
Industrial valve demand 14,184 15,600 19,800 1.9 4.9 Process manufacturing industries 5,150 5,875 6,885 2.7 3.2 Public utilities 4,432 4,775 6,065 1.5 4.9 Resource industries 2,476 2,990 3,960 3.8 5.8
Construction 1,594 1,445 2,250 -1.9 9.3
Other 532 515 640 -0.6 4.4
Source: The Freedonia Group Inc.
FIG. 1. The GoBiGas plant in Sweden produces biogas through the gasification of biofuels and residues from forestry.
12MARCH 2015 | HydrocarbonProcessing.com
News
Second-generation biofuels are devel-oped to overcome the limitations associ-ated with traditional biofuels, such as bio-diversity and food vs. fuel issues.
Financial incentives and supportive regulations in the US and Europe are in-strumental in driving the commercial pro-duction and adoption of advanced biofu-els—the Renewable Fuel Standard in the US is one such initiative. However, com-plexities associated with the production process, high initial capital investment and the availability of land (for plant setup) in the vicinity of the source of feedstock are factors impeding the growth of the market.
Biodiesel is the highest produced second-generation biofuel, but the more commercially viable cellulosic ethanol will soon surpass biodiesel and eventually lead the market by 2020 (FIG. 2). North
America (NA) generated the largest rev-enue with over 50% of the globally in-stalled capacity base.
The cellulosic ethanol market is fore-cast to grow at a CAGR of 52.2% dur-ing 2014–2020 due to the rapid growth in technologies for mass production. At present, NA accounts for approximately 82% of the global market share, chiefly due to the supportive regulatory envi-ronment. Recently, Procter & Gamble announced a collaboration with DuPont to use cellulosic ethanol, replacing corn-based ethanol in its Tide detergent in NA. Other major players that have recently begun production of cellulosic ethanol in NA are INEOS New Planet BioEnergy, Poet-DSM Advanced Biofuels LLC, Can-ergy LLC, Abengoa BioenCan-ergy, Amyris and Enerkem, among others.
Many companies are setting up pro-duction plants for second-generation biofuels. Some of the key players operat-ing in different market segments include Algenol Biofuels, Abengoa Bioenergy, GranBio, INEOS Bio, Inbicon, Clariant, ZeaChem and DuPont Industrial Biosci-ences. POET-DSM Advanced Biofuels LLC has recently opened its first-com-mercial scale cellulosic ethanol plant with a production capacity of 20 MMgal/yr.
Composites institute
provides Dow with
collaborative platform
The Dow Chemical Company, in part-nership with its JV, DowAksa, and a con-sortium of composites-related businesses, academic leaders and government
organi-zations, has been selected by the Obama Administration to establish the Institute for Advanced Composites Manufacturing Innovation (IACMI).
IACMI will help advance the state of knowledge and commercialization of carbon fiber composites technology in response to market demands for strong, lightweight materials. It will create a plat-form to overcome technological and cost barriers to the wide-scale adoption of carbon fiber composites in a variety of in-dustrial sectors including pressure vessel, infrastructure and wind, and automotive.
DowAksa, a 50/50 JV between Dow and Aksa Akrilik Kimya Sanayii A.Ş., one of the world’s largest acrylic fiber manu-facturers, has become a leader in the pro-duction of carbon fiber, carbon fiber in-termediates and high-quality composite materials, which are valuable for down-stream high-tech manufacturing.
Mergers abound in the gas
and liquids flow, control
and treatment market
The last two years have seen hun-dreds of acquisitions in the $400-B mar-ket that treats and controls air, gas, water and other liquids.
The largest segment is industrial valves, while one of the smaller segments is air filtration. Recent acquisitions in these two segments are listed in TABLE 2.
There are a variety of motivations in-volved in acquisitions, including expan-sion of the technology and product base. Lydall makes filter media for HVAC, but not for dust collection. Andrew Filtration makes media for dust collectors, so Ly-dall has more than doubled the filter me-dia sales potential with the acquisition. Clarcor took a similar course, but one step down the supply chain. Clarcor
fur-TABLE 2. Recent fi ltration and valve company acquisitions
Air fi ltration acquisitions
Acquiring company Acquired company
Eastman Chemical Knowlton
Neenah Paper Crane Technical Materials Lydall Andrew Filtration Mann + Hummel Vokes
Clarcor GE–BHA Filtration Group Porex
SWM DelStar
PGI Fiberweb
Valve company acquisitions
Acquiring company Acquired company
IMI Bopp & Reuther MAT Holdings Dorot
SPX (divesting) Flow Control Graco Alco Valves; High
Pressure Equipment Siemens Dresser Rand AVK Premier Valves Group Dover WellMark
Curtiss Wright Engelmasa (Brazilian valve division) Rotork Xylem (UK solenoid
valve division); Young Tech; G. T. Attuatori; Renfro Assoc. Admiral Valve CPV Krones EvoGuard KITZ Micro Pneumatics Klinger Westad
Samson Group Ringo Válvulas Emerson Virgo; Enardo COOPER Valves Accuseal Cameron Douglas Chero
FIG. 2. Global second-generation biofuels (advanced biofuels) market, segmentation and forecast (2013–2020).
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14MARCH 2015 | HydrocarbonProcessing.com
News
nishs HVAC filters, so, with the purchase of BHA from GE, the company is now the leading dust collector bag company.
Another motivation is to gain access to a geographical market, as witnessed by Curtiss Wrights’ Brazilian valve ac-quisition. A third reason is vertical inte-gration. An earlier acquisition by Clarcor moves it into the media business for face masks and HVAC. Another impetus is to streamline companies and make them more profitable. The SPX decision to separate its flow control from other busi-nesses is a case in point. Xylem is still in
a repositioning mode several years after it was separated from ITT.
Sasol picks GE for
compression trains
on Louisiana PE project
GE Oil & Gas has been awarded a contract from Sasol North America for the provision of the main compression trains required for its new low-density polyethylene (LDPE) plant being de-veloped in Lake Charles, Louisiana. The LDPE plant is a central element of Sasol’s proposed $8.9-B petrochemical complex, which will include world-scale ethylene and ethylene derivative plants.
GE’s LDPE Hyper compressor, a unique, 20-cylinder, two-stage compres-sor with discharge pressures of 45,000 psi, will sit at the heart of the plant. The com-plex will produce 1.5 MMtpy of ethylene, with approximately 90% of ethylene out-put converted into a diverse slate of com-modity and specialty chemicals (FIG. 3).
BASF opens Malaysia
polymer dispersions plant
BASF is further strengthening its foot-print in Asia-Pacific with the startup of its first production plant for polymer disper-sions in Malaysia (FIG. 4).
The plant has been built at the existing BASF production site in the Pasir Gudang Industrial Park of the Johor Free Trade Zone, and is the company’s third poly-mer dispersions plant in the Association of Southeast Asian Nations (ASEAN),
complementing the existing Jakarta and Merak, Indonesia facilities.
The new plant, which will benefit from close proximity to raw materials like the acrylic monomer complex at BASF Petro-nas Chemicals in Kuantan, will focus on the production of a variety of acrylic base poly-mer dispersions for the decorative coatings, construction and adhesive industries. Com-mercial production began in early 2015.
By 2020, BASF aims for local produc-tion of approximately 75% of the products it sells in the Asia-Pacific region. To achieve this, BASF is investing €10 B with its part-ners to further develop its local production footprint to 2020.
The Dispersions and Pigments divi-sion of BASF develops, produces and markets a range of high-quality pigments, resins, additives and polymer disper-sions worldwide. These raw materials are used in formulations for coatings and paints, printing and packaging products, construction chemicals, adhesives, fiber bonding, plastics and paper, as well as for electronic applications.
ESC signed by Steelhead
LNG, WorleyParsons
In Canada, Huu-ay-aht First Nations and Steelhead LNG signed a contract with WorleyParsons for the provision of environmental, engineering, geotechnical and regulatory services at their proposed LNG Project at Sarita Bay on Vancouver Island (FIG. 5).
The 24-MMtpy land‐based facility is one of the largest proposed LNG proj-ects in British Columbia. The new con-tract, which could be worth in excess of $30 MM, will encompass environmental impact assessments, preliminary front-end engineering and design (pre-FEED) stud-ies, geotechnical investigations and per-mitting approvals support.
The new contract is an extension of the strategic relationship that already exists between WorleyParsons, Steelhead LNG and Huu-ay-aht First Nations. WorleyP-arsons played a key role in the recently completed preliminary assessment and screening stage of the proposed project. Over the past 25 years, WorleyParsons has also worked with numerous First Na-tions groups across BC and has provided specialized services for some of the largest projects in the province. The contracted activities will begin immediately.
FIG. 3. GE will supply its LDPE Hyper compressor technology for Sasol North America’s LDPE plant in Lake Charles, Louisiana.
FIG. 4. The opening of the BASF polymer dispersions plant in Malaysia.
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Industry Metrics
MIKE RHODES, TECHNICAL EDITOR
The global market is experiencing a potential temporary recovery from a prolonged decline, possibly followed by the continuation of the downtrend. This is reflected in continued growth in the US tight oil production and strong global supply amid weaker global oil demand growth, contributing to rising global oil inventories.
Pr oduction, Bcfd Gas pric es, $/Mcf 0 10 20 30 40 50 60 70 80 0 1 2 3 4 5 6 7
Monthly price (Henry Hub) 12-month price avg. Production J D N O S A J J M A M F J D N O S A J J M A M F J 2013 2014 2015
Production equals US marketed production, wet gas. Source: EIA.
Monthly price (Henry Hub) 12-month price avg. Production
US gas production (Bcfd) and prices ($/Mcf)
Oil pric es, $/bbl 40 55 70 85 100 115 130 Dubai Fateh W. Texas Inter. Brent Blend J D N O S A J J M A M F J D N O S A J J M A M F J 2013 2014 2015 Source: DOE
Selected world oil prices, $/bbl
Global refining margins, 2014–2015*
WTI, US Gulf Arab Heavy, US Gulf Brent, Rotterdam Dubai, Singapore LLS, US Gulf
-5 0 5 10 15 20 Margins, US$/bbl
Jan 14 Feb 14 Mar 14 April 14 May 14 June 14 July 14 Aug 14 Sept 14 Oct 14 Nov 14 Dec 14 Jan 15
Global refining utilization rates, 2014–2015*
50 60 70 80 90 100 Utilization rates, % US EU 16 JapanSingapore
Jan 14 Feb 14 Mar 14 April 14 May 14 June 14 July 14 Aug 14 Sept 14 Oct 14 Nov 14 Dec 14 Jan 15
US Gulf cracking spread vs. WTI, 2014–2015*
-10 0 10 20 30 40
Cracking spread, US$/bbl
Prem. gasoline unl. 93 Jet/kero
Gasoil/diesel, 0.05% S Fuel oil, 180c
Jan 14 Feb 14 Mar 14 April 14 May 14 June 14 July 14 Aug 14 Sept 14 Oct 14 Nov 14 Dec 14 Jan 15
Rotterdam cracking spread vs. Dubai, 2014–2015*
Prem. gasoline unl. 98, 10 ppm S Jet/kero Gasoil, 10 ppm S Fuel oil, 1% S -20 -10 10 20 30
Cracking spread, US$/bbl
0
Jan 14 Feb 14 Mar 14 April 14 May 14 June 14 July 14 Aug 14 Sept 14 Oct 14 Nov 14 Dec 14 Jan 15
Singapore cracking spread vs. Brent, 2014–2015*
-20 -10 0 10 20 30
Cracking spread, US$/bbl
Prem. gasoline unl. 92 Jet/kero
Gasoil, 50 ppm S Fuel oil, 180 cSt, 2% S
Jan 14 Feb 14 Mar 14 April 14 May 14 June 14 July 14 Aug 14 Sept 14 Oct 14 Nov 14 Dec 14 Jan 15 78 80 82 84 86 88 90 92 94 96 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 Stock change and balance
World demand World supply 2016-Q1 2015-Q1 2014-Q1 2013-Q1 2012-Q1 2011-Q1 2010-Q1
Supply and demand, MMbpd
St
ock change and balanc
e, MMbpd
Source: EIA Short-Term Energy Outlook, February 2015.
Forecast
World liquid fuel supply and demand, MMbpd
* Material published permission of the OPEC Secretariat; copyright 2015; all rights reserved; OPEC Monthly Oil Market Report, February 2015. Brent Dated vs. sour crudes
(Urals and Dubai) spread, 2014–2015*
Light sweet/medium sour crude spread, US$/bbl
Dubai Urals -4 -2 0 2 4 6
01 Sept 08 Sept 15 Sept 22 Sept 29 Sept 06 Oct 13 Oct 20 Oct 27 Oct 03 Nov 10 Nov 17 Nov 24 Nov 01 Dec 08 Dec 15 Dec 22 Dec 29 Dec 05 Jan 12 Jan 19 Jan 26 Jan 02 Feb An expanded version of Industry Metrics can be found online at HydrocarbonProcessing.com.
Vapor pressure and viscosity -
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HEINZ P. BLOCH, RELIABILITY/EQUIPMENT EDITOR
[email protected]Consider oil-resistant cable terminations
to increase electric motor reliability
Most engineers are familiar with adhesive-coated insulating tape used by electricians in the field and maintenance shop. If we use this tape in the engine compartment of an automobile, it will soon become gummy and will unravel. Although a common product will suffice in most applications, “standard” stretchable insulating tape will not serve well as an oil-resistant cable termi-nation. Oil resistance is an important consideration, especially regarding terminal boxes of oil-mist-lubricated electric motors.
However, excessive swelling can occur near the stator wind-ings, thus impeding motor cooling effectiveness, as shown in
FIG. 1.
Insufficient heat transfer can drastically reduce the service life of the winding. What is the maintenance cost due to poor cooling of the motor’s winding? Assume that the average motor, operating in a plant with 1,008 electric motors, has a service life of 12 years with non-swelling terminal leads vs. 6 years of operation when cooling is impaired due to swelling. In this case, the yearly repair and replacement frequencies are 84 and 168 motors, respectively.
Spend wisely. Assume that the cost of purchasing and install-ing an electric motor is $6,000. The possible recoverable funds of avoiding 84 events/yr could exceed $500,000. Conversely, the outlay for a superior T-lead material has an almost negligent in-cremental cost when compared to the calculated benefit-to-cost ratio of doing things right the first time.
True reliability focus includes selecting superior materials whenever the cost can be justified. Compliance with applicable standards is needed. Many standards are associated with the Un-derwriter Laboratories, and address properties such as tempera-ture and voltage ratings, abrasion resistance, hardness, allow-able bend-radius-to-diameter ratio, tensile strength, elongation, flame-test compliance, oil resistance, chemical resistance and dielectric strength. Oil resistance is often linked to a maximum temperature; the standards define the test duration and percent-age of original tensile and elongation retained.
Hazards. Another document describes the restriction of haz-ardous substances (RoHS) compliance requirements as set forth by the EU. It represents the directive to establish environmental guidelines and legislation to reduce the presence of six materi-als that are listed as hazardous to the environment. To comply, products entering the EU must not have a homogeneous pres-ence of these materials according to the weight percentages:
• Lead (Pb) < 0.1% • Mercury (Hg) < 0.1% • Cadmium (Cd) < 0.01%
• Hexavalent chromium (CrVI) < 0.1%
• Polybrominated biphenyls (PBB) < 0.1% • Polybrominated diphenyl esters (PBDE) < 0.1%.
Venders’ role. Top venders recognize their responsibility as suppliers of coaxial connectors, cable assemblies and compo-nents used within products that are targeted for RoHS compli-ance. Likewise, reliability-focused user companies must make sound choices. These companies may elect to work with respon-sible and trustworthy electric motor manufacturers who make it their goal to fully understand their customer’s priorities.
By disclosing the range of capabilities of their products and components, the vendor/manufacturer becomes the purchaser’s technology resource. Alternatively, a reliability-focused user-purchaser will groom subject matter experts whose tasks include the development of rigorous motor specifications. These speci-fications should ensure that motors incorporate only irradiation cross-linked polymeric insulation. Reliability engineering in-cludes hundreds of details similar to the ones highlighted here.
HEINZ P. BLOCH resides in Westminster, Colorado. His professional career began in 1962 and included long-term assignments as Exxon Chemical’s regional machinery specialist for the US. He has authored over 600 publications, among them 19 comprehensive books on practical machinery management, failure analysis, failure avoidance, compressors, steam turbines, pumps, oil-mist lubrication and practical lubrication for industry. Mr. Bloch holds BS and MS degrees in mechanical engineering. He is an ASME Life Fellow and a professional engineer.
FIG. 1. Swelling cable terminations can impede motor cooling effectiveness and drastically shorten winding life.
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Project
Management
ALAN ROSSITER, PRESIDENT
Rossiter & Associates
Energy efficiency: Getting in early
pays off exponentially
There are many situations and circumstances when it makes good sense to pursue energy efficiency for industrial processes. But when is the best time for such action?
Better operating practices. In existing facilities, improved operating disciplines and procedures often lead to significant energy savings without capital investment. Identifying real-time key performance indicators and optimizers can increase savings. Making data more accessible to operators and engi-neers through energy “dashboards” can reinforce better operat-ing conditions and make them more sustainable.
Dedicated maintenance and energy “housekeeping” have a demonstrated track record of energy savings. Key areas to focus on include fixing steam leaks and monitoring steam traps, as well as repairing insulation and cleaning heat exchangers.
Revamps. Often, revamp projects are undertaken to increase energy efficiency through improved heat integration, steam/ power system balancing, equipment upgrades, and, sometimes, fundamental process changes. However, even though the eco-nomics can be attractive, these projects are inherently difficult to justify and to implement because they require working with-in the confwith-ines of existwith-ing process unit and equipment. Further-more, when replacing a piece of equipment with an “upgrade,” you typically pay full price for the new item while only gaining the incremental benefit between it and the old equipment.
Optimized energy efficiency. The best economics for energy-efficient processes and equipment occur in new plant designs and major plant expansions. There are many different areas where energy efficiency can be “baked in” during various design stages of new facilities.
Basic technology selection. Early in design, the key issue is technology selection. Often, there are several competing tech-nologies that can be used to achieve the required process objec-tives, such as material transformations and separations. Many factors must be considered. Due to the multi-dimensional na-ture of the selection parameters, the most energy-efficient op-tion may not always be the top choice. Energy should always be a serious consideration in the selection procedure.
Beyond basic technology selection, there are many addition-al design decisions that affect the energy performance, such as:
Heat integration. It is often possible to recover additional
energy from “waste-heat” sources without fundamentally changing the underlying process technology. Pinch analysis is a good technique used to identify such opportunities.
Equipment selection. Pumps, compressors, turbines,
mo-tors and other mechanical equipment can vary greatly in effi-ciency. It is often beneficial to invest a little more in high-effi-ciency machines to lower energy costs.
Process and utility interfaces. Individual process designs
are very well optimized by contractors. However, material and energy are transferred between process units and utility systems, and the interconnections can vary. There are invariably oppor-tunities to fine-tune the design. For example, this can include incorporating options for hot and/or cold transfer of materials from one process to another, adding steam turbines, generating steam from surplus heat, and changing steam header pressures.
Control. A great deal of energy is consumed in process
con-trol—for example, in throttling or recycling the discharge flow from pumps. Alternative control options, including variable fre-quency drive control, should be considered during design. In addition, excess air control of boilers and furnaces using stack gas oxygen and carbon monoxide measurements should be in-corporated in new designs where appropriate. These measures can greatly improve overall equipment efficiencies and mini-mize environmental impact.
Maintenance facilities. Various maintenance activities are
important for sustaining energy efficiency over the service life of a project. Examples include provision of bypass piping and valves to allow onstream cleaning of key heat exchangers, along with washing facilities for turbines and compressors, and clean-ing facilities for boilers and furnaces.
Process design is a complex combination of science and art. Energy efficiency must never be handled in isolation from other design considerations. However, when properly managed, an energy efficiency assessment of the design for a new facility or for major expansions can lead to significant energy savings over the service life of the project and, consequently, provide an ex-cellent return on investment.
EDITOR’S NOTE
Editorial is based on Dr. Rossiter’s book, Energy Management and Efficiency for
the Process Industry, published by AIChE/Wiley partnership, April 2015.
ALAN P. ROSSITER, PhD, PE, is president of Rossiter & Associates, a consulting company based in Bellaire, Texas, which provides consulting services on energy efficiency for the oil refining and chemical industries. Dr. Rossiter holds BA and MEng degrees as well as a PhD in chemical engineering, from the University of Cambridge. He has more than 30 years of experience in process engineering and management. Dr. Rossiter is a chartered engineer (UK) and a registered professional engineer in the state of Texas. He is a past chair of the South Texas Section of AIChE.
Global
JOHN GALANTE, LEAD ANALYST FOR LATIN AMERICA
ESAI EnergyLatin America’s refinery product demand
is decelerating
The trajectory of refined product balances in Latin Ameri-ca and the Caribbean is changing. With demand growth slow-ing and throughput expected to rise by 2020, the region’s com-bined deficits for primary petroleum products, led by gasoline and diesel, will not continue to expand in the same manner as in the past decade. This matters not only for economies in the region that are dependent on refined product imports, but also for market fundamentals and prices in the Americas, the Atlantic Basin and beyond. ESAI Energy’s recent study, “Tip-ping the Scale,” investigates the country-level and region-wide forecast of regional product balances through 2020.1
Super-cycle growth. During the past decade through 2013, demand for refined products in Latin America and the Carib-bean grew precipitously. The so-called super-cycle in global commodities markets and an expansion of the middle class and consumer credit led regional oil demand to rise by 2.6%/ yr or 2.1 MMbpd, despite a global recession. At the same time, throughput fell by 300 Mbpd. A number of refineries in the Caribbean closed, while utilization rates dropped in some of the region’s oldest refining sectors.
The net result was the emergence of a roughly 1.5-MMbpd shortfall of primary refined petroleum products (not includ-ing a fuel oil surplus), accordinclud-ing to ESAI Energy estimates. Because of this deficit, Latin America and the Caribbean emerged as a key region in determining trade and pricing dy-namics in the Atlantic Basin. The region also became a vital outlet for refined-product exporters, especially from the US Gulf Coast, but also from Europe and Asia. The jump in prod-uct spreads following the late-2012 fire at Venezuela’s Amuay refinery was a potent illustration of the dependence of prod-uct margins and flows on the region’s balances.
Deceleration of growth. In 2014, these conditions began to unravel. The region’s total oil demand growth continued to decelerate, to around 100 Mbpd from a peak of 400 Mbpd in 2007. Yet, this slowdown in demand was met by a 110-Mbpd decline in refinery throughput last year. Refineries in Ecua-dor, Mexico and Trinidad and Tobago saw heavy maintenance shutdowns, and Ecopetrol shuttered its aging 80-Mbpd plant at Cartagena, Colombia, in March 2014. Result: The gaso-line deficit in Latin America and the Caribbean increased by 50 Mbpd to 710 Mbpd last year. ESAI Energy estimates that, while the diesel shortfall climbed 70 Mbpd to 690 Mbpd, jet fuel and LPG deficits each grew by 20 Mbpd.
From 2015 to 2020, the trajectory of these deficits will change. Conditions will vary considerably across countries and
across products.1 Broadly speaking, however, a less-robust
de-mand outlook, combined with upcoming additions to through-put, means that product deficits will level off in many cases, and even narrow in some markets, through the end of the decade.1
Capacity additions. Year-on-year changes in product sup-ply are set to turn positive as downstream investment pro-duces throughput gains of 900 Mbpd between 2014 and 2020. Crude processing will grow despite a host of greenfield projects being delayed indefinitely. Petrobras’ 230-Mbpd RNEST refinery at Abreu e Lima should be fully operational by year’s end, while Ecopetrol’s new and highly sophisticated 165-Mbpd Reficar plant in Cartagena should launch by mid-2015. Petroecuador will complete its year-long revamp of the 110-Mbpd Esmeraldas refinery around the same time, while Mexican and Trinidadian throughput will not see the same maintenance-related yearly declines this year. Further out, the 165-Mbpd first phase of Petrobras’ Comperj refinery in Rio de Janeiro should be completed by 2019.
In a number of refining sectors around Latin America and the Caribbean, operators are investing in expansion, revamp and upgrading projects in place of new greenfield refinery construction. Investments are planned or underway at Pe-mex’s Salamanca and Tula refineries, Petroperu’s Talara refin-ery, Ecopetrol’s Barrancabermeja refinery and Bridas Corp’s Campana refinery, among others. In some cases, these up-grades will also incorporate adjustments in diesel and gasoline sulfur specifications in their respective countries. “Tipping the scale” includes balances divided by sulfur specifications.
At the same time that some long-delayed downstream in-vestments in Latin America and the Caribbean will finally produce results, total oil demand growth should be more
39.7 39.4 40 36.8 34.9 31.6 0.5 0.7 0.9 1.1 1.3 1.5 1.7 1.9 2.1 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Refined product deficits, %
FIG. 1. Refined product demand in Latin America and the Caribbean: 2010–2020. Products include diesel, gasoline, jet fuel, LPG and naphtha.
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Global
moderate through 2020, ESAI Energy believes. Growth should recover from the 1% posted in 2014, but it will only av-erage 1.9% in the second half of the decade. Macroeconomic imbalances in a number of the region’s major economies will be difficult to resolve, especially as global commodity markets fail to return to recent rates of growth. There will, of course, be significant variation among countries.
Forecast. The outlook for product balances will similarly vary, but deficits should moderate or narrow, especially in the near term with the completion of announced new plants and upgrading projects. Among products, the greatest changes will occur in the diesel market because new refineries and deep-conversion units will favor additional output of middle distil-lates. Among sub-regions, the Pacific coast of South America will add the least refining capacity, and deficits will increase. The combination of these trends is visible in FIG. 2, which
il-lustrates how the “Pacific South America” region should in-crease its share of the entire region’s diesel shortfall to 40% in 2020 from 26% last year.
The refined product shortfalls in Latin America and the Caribbean are not disappearing. Instead, they are changing and not growing as they have in recent years. Trade flows and benchmark product margins will have to adjust to a new real-ity in this market that has absorbed much of the excess prod-ucts in the Atlantic Basin during the past decade—and so will product exporters, who have come to rely on these deficits.
NOTE
1 ESAI Energy’s recent study, “Tipping the Scale,” provides a detailed, country-level
and region-wide forecast of regional product balances through 2020.
JOHN GALANTE is ESAI Energy’s lead analyst for Latin America and the Caribbean and for the global gasoline market. He manages ESAI Energy’s data collection and forecasting for Latin America and the Caribbean, and publishes the firm’s monthly Latin America Watch publication. He also forecasts US demand for gasoline and leads ESAI Energy’s global analysis for that market. Mr. Galante previously worked as a markets reporter at Energy Intelligence Group. Caribbean Basin: Caribbean Islands, Central America, Colombia and Venezuela
Atlantic South America: Argentina, Brazil, Paraguay and Uruguay Pacific South America: Bolivia, Chile, Ecuador and Peru
25 24 22 34 22 25 26 35 40 16 19 13 0 20 40 60 80 100 2014 2015 2016 2017 2018 2019 2020
Total diesel deficit, %
Caribbean Basin Atlantic South America Pacific South America Mexico
FIG. 2. Sub-region percentages of total diesel deficit, 2014–2020.
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Petrochemicals
BEN DUBOSE, ONLINE EDITOR
[email protected]Fatal DuPont leak shows need for improved
chemical safety systems
The November 15 chemical leak at DuPont’s plant in La Porte, Texas was the company’s third fatal US accident in five years and the deadliest of them all. The blast took the lives of four workers, including two brothers. According to US Chemi-cal Safety Board (CSB) investigators probing the case, it ap-pears to have been preventable.
“We have found that not only DuPont, but the industry as a whole, must do much better,” said Rafael Moure-Eraso, chair-person of the CSB. “Complex process-related accidents with tragic results are taking place across the country at companies of all sizes,” he said. “This problem includes major corpora-tions such as DuPont, not just smaller companies that some refer to as ‘outliers.’ It is clear that the current process safety regulatory system is in need of reform, and that companies themselves must do more.”
The La Porte case follows two other fatal accidents in 2010 at DuPont facilities in Belle, West Virginia and Buffalo, New York. “The frequency of these incidents is a concern for the Board as well as for DuPont, its workers, [their] family mem-bers and the communities nearby,” Moure-Eraso said.
Investigation findings. In the most recent case, the board found that a ventilation system at the La Porte plant (FIG. 1) had
been broken, allowing methyl mercaptan to build up undetect-ed. When the chemical mixed with the air, it became a toxic gas. Four workers were killed during the release of what DuPont es-timates to be more than 23,000 pounds of methyl mercaptan.
Investigators have already identified four design issues. First, the process included several interconnections between the methyl mercaptan supply line and a chemical ventilation system, which allowed a toxic leak to occur in an unexpected location where workers were exposed.
Second, the chemical vent system, which was intended to safely remove harmful vapor from process vessels, had a design shortcoming that allowed liquid to accumulate. This liquid buildup regularly caused pressure buildups in the vent. The liquid needed to be manually drained by operators to prevent safety issues from interconnected equipment, such as reactors.
Third, the vent drain that operators were required to use was open to the atmosphere, meaning that workers were ex-posed to any chemicals drained from the vent system.
Fourth, the building was designed in such a way that, even if ventilation fans had been working on the day of the acci-dent, they likely would not have effectively protected work-ers from chemical exposure. “We found that those ventilation fans were not, in fact, working at the time of the accident,” Moure-Eraso said.
DuPont stresses safety commitment. DuPont said in a statement that safety has been a value of the company and a constant priority since its founding. “We first implemented safety rules in 1811, and we have been engaged in a continu-ous process to improve ever since,” the company said. “We are responding to this tragedy in a way that reinforces our absolute focus on safety and enables us to learn from it. We have an ex-pert team leading an intensive effort to understand exactly what happened, and how we can ensure that it never happens again.”
DuPont added that it remains committed to working with the CSB and the Occupational Health and Safety Administra-tion, in their investigations, noting that the results from those reviews will guide actions going forward.
CSB representatives visited the La Porte plant, which opened in 1956, in early February and commended the company for its attitude. “I was encouraged by DuPont’s commitment, which was restated to me, to thoroughly investigate this tragedy, to learn from it and to make all needed changes,” Moure-Eraso said.
The CSB says it has conducted about 50 interviews and has spent hundreds of hours reviewing documents and evaluating the incident scene. The field phase of the investigation is roughly 50% complete, with further testing of field equipment and veri-fication of critical instrumentation planned in coming months.
Conclusions for industry. Nonetheless, from what it knows thus far, the CSB believes the La Porte case is neither an outlier nor a DuPont-specific problem. Rather, it is a symptom of a larger industry issue that must soon be corrected.
“This accident, like many investigated by the CSB, demon-strates that regulators and companies should place greater em-phasis on making designs as safe and possible and updating them on a constant basis,” Moure-Eraso said. “I believe that there will be many important and valuable lessons learned that will benefit local citizens, regulators, and the chemical community.”
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