Hydrocarbon Processing 03 2016(2).pdf

(1)

HARNESS THE POWER

OF ADVANCED HRSG TECHNOLOGY

The industry leader in Heat Recovery Steam Generators for gas

turbines up to 30 MW, RENTECH offers a full range of HRSG systems

to meet your toughest project requirements.

We custom engineer our

crossflow two-drum and waterwall designs to perform superbly in the most demanding applications and operating conditions. We master every detail to deliver elemental power for clients worldwide.

HARNESS THE POWER WITH RENTECH.

HEAT RECOVERY STEAM GENERATORS WASTE HEAT BOILERS

FIRED PACKAGED WATERTUBE BOILERS SPECIALTY BOILERS

(2)

MARCH 2016 | HydrocarbonProcessing.com

MAINTENANCE AND RELIABILITY

Detect and prevent boiler leaks in H2 plants

using a temperature profiling approach

HEAT TRANSFER

Fired heater case study examines high thermal efficiency, low emissions

ENVIRONMENT AND SAFETY

Design and install an enclosed ground flare

CORROSION CONTROL

(3)

HARNESS THE POWER

OF ADVANCED HRSG TECHNOLOGY

The industry leader in Heat Recovery Steam Generators for gas

turbines up to 30 MW, RENTECH offers a full range of HRSG systems

to meet your toughest project requirements.

We custom engineer our

crossflow two-drum and waterwall designs to perform superbly in the most demanding applications and operating conditions. We master every detail to deliver elemental power for clients worldwide.

HARNESS THE POWER WITH RENTECH.

HEAT RECOVERY STEAM GENERATORS WASTE HEAT BOILERS

FIRED PACKAGED WATERTUBE BOILERS SPECIALTY BOILERS

WWW.RENTECHBOILERS.COM Select 52 at www.HydrocarbonProcessing.com/RS

(4)

MARCH 2016 | Volume 95 Number 3

HydrocarbonProcessing.com

SPECIAL REPORT: CORROSION CONTROL

39 Improved corrosion prevention with acid-aided regeneration technology

D. Lee, J. Klinkenbijl, T. Brok, J. Critchfield and D. Valenzuela REGIONAL REPORT

45 Central American nations beef up import infrastructure, fuel production amid demand shift

M. Rhodes and M. Nogarin HEAT TRANSFER

53 Calculate thermal efficiency to optimize fired heater operation

V. D. Shirpurkar and M. E. Ibrahim

57 Minimize unplanned shutdowns of fired heater operations

C. Baukal, B. Johnson and R. Newnham MAINTENANCE AND RELIABILITY

63 Detect boiler leaks upstream of the shift reactor in H2 plants K. R. Ramakumar

FLUID FLOW AND ROTATING EQUIPMENT

67 Limit the rate of change of fuel gas properties with mixing drum

H. Pandya and A. M. Fantolini

NEW IN CATALYSTS—SUPPLEMENT

C-73 Taking bio-R&D to commercialization through partnering

D. Sudolsky, J.-P. Burzynski and J.-L. Nocca ENVIRONMENT AND SAFETY

95 Meet EPA Tier 3 clean fuel regulations through improved blending processes

M. Carugo and P. Truesdale

101 Design and implement a totally enclosed ground flare

M. Choroszy, A. Bourji and P. Prather

PROCESS CONTROL AND INSTRUMENTATION 105 Linear position sensors gain preference

in industrial process control applications

E. Otto

Cover Image: MOL Group’s Danube refinery, located near Budapest, Hungary, has a capacity of 165 Mbpd. It is one of the largest refineries in the Central and Eastern European region.

DEPARTMENTS

4 Industry Perspectives

10 Business Trends

21 Industry Metrics

23 Global Project Data

107 Marketplace 108 Advertiser Index 109 Events 110 People COLUMNS 9 Editorial Comment Corrosion prevention is a necessary cost 25 Reliability

Avoid pump shaft failures 27 Automation Strategies

Data analytics solutions require valid data

29 Project Management

Protect operating margins with outsourced asset management 35 Petrochemicals

Investigation into West Fertilizer blast shows room for safety improvement 37 Engineering Case Histories

Case 89: Cracking of welds due to weld fatigue

38

(5)

4 MARCH 2016 | HydrocarbonProcessing.com

P. O. Box 2608

Houston, Texas 77252-2608, USA Phone: +1 (713) 529-4301 Fax: +1 (713) 520-4433

[email protected] www.HydrocarbonProcessing.com

Industry Perspectives

President/CEO John Royall

Vice President, Downstream and Midstream Bret Ronk

Vice President Ron Higgins

Vice President, Production Sheryl Stone

Business Finance Manager Pamela Harvey

Publication Agreement Number 40034765 Printed in USA

In a presidential election year in the US, the hot topic on the minds of many industry leaders in 2016 is the impact those election results might have on the downstream sector.

As a result, it comes as little surprise that the majority of the headline speakers at this month’s Annual Meeting of the American Fuel and Petrochemical Manufacturers (AFPM) come from the political realm.

Meeting details._{The event (}FIG. 1_{), which brings together top} executives and leading personnel from across the entire spec-trum of the US downstream industry, kicks off on Monday, March 14 with a general session featuring Mark Halperin and John Heilemann, the managing editors of Bloomberg Politics and co-hosts of the “With All Due Respect” television show on Bloomberg and MSNBC.

“With unmatched insider access and keen-eyed perspec-tives, Halperin and Heilemann will provide an unvarnished take on the headlines and the broader forces shaping American politics,” AFPM said in a statement.

The Annual Meeting will also include a special breakfast session on government relations and a speech at the annual luncheon from retired US Gen. Colin Powell.

A year ago, those sessions were led by an address from for-mer Hewlett-Packard CEO Carly Fiorina, who dropped hints to industry attendees that she would likely make a run for the US presidency in 2016. A few weeks later, she did exactly that.

Full event coverage._{As the exclusive show daily provider for}

the Annual Meeting, Hydrocarbon Processing will be live at the meeting in San Francisco with full coverage of all conference presentations. The HPInformer blog will include PDFs to the official conference newspapers, as well as pictures and separate news stories regarding all of the meeting’s technical content.

Stick with HydrocarbonProcessing.com throughout March for updates from AFPM, as well as many other prominent downstream industry gatherings.

EDITOR/ASSOCIATE PUBLISHER Lee Nichols

[email protected]

EDITORIAL

Executive Editor Adrienne Blume

Managing Editor Mike Rhodes

Technical Editor Bob Andrew

Digital Editor Ben DuBose

Reliability/Equipment Editor Heinz P. Bloch

Contributing Editor Alissa Leeton

Contributing Editor Loraine A. Huchler

Contributing Editor William M. Goble

Contributing Editor ARC Advisory Group

MAGAZINE PRODUCTION / +1 (713) 525-4633

Vice President, Production Sheryl Stone Manager, Editorial Production Angela Bathe Dietrich

Artist/Illustrator David Weeks

Senior Graphic Designer Amanda McLendon-Bass Manager, Advertising Production Cheryl Willis

ADVERTISING SALES

See Sales Offices, page 108.

CIRCULATION / +1 (713) 520-4440 / [email protected]

Manager, Circulation Alice Murrell

SUBSCRIPTIONS

Subscription price (includes both print and digital versions): Print—One year $239, two years $419, three years $539. Digital format—One year $239. Airmail rate outside North America $175 additional a year. Single copies $35, prepaid. Because Hydrocarbon Processing is edited specifically to be of greatest value to people working in this specialized business, subscriptions are restricted to those engaged in the hydrocarbon processing industry, or service and supply company personnel connected thereto.

Hydrocarbon Processing is indexed by Applied Science & Technology Index, by

Chemical Abstracts and by Engineering Index Inc. Microfilm copies available through University Microfilms, International, Ann Arbor, Mich. The full text of Hydrocarbon

Processing is also available in electronic versions of the Business Periodicals Index.

ARTICLE REPRINTS

If you would like to have a recent article reprinted for an upcoming conference or for use as a marketing tool, contact Foster Printing Company for a price quote. Articles are reprinted on quality stock with advertisements removed; options are available for covers and turnaround times. Our minimum order is a quantity of 100. For more information about article reprints, call Rhonda Brown with Foster Printing Company at +1 (866) 879-9144 ext. 194 or e-mail [email protected].

Hydrocarbon Processing (ISSN 0018-8190) is published monthly by Gulf Publishing

Company, 2 Greenway Plaza, Suite 1020, Houston, Texas 77046. Periodicals post-age paid at Houston, Texas, and at additional mailing office. POSTMASTER: Send address changes to Hydrocarbon Processing, P.O. Box 2608, Houston, Texas 77252. Copyright © 2016 by Gulf Publishing Company. All rights reserved.

Permission is granted by the copyright owner to libraries and others registered with the Copyright Clearance Center (CCC) to photocopy any articles herein for the base fee of $3 per copy per page. Payment should be sent directly to the CCC, 21 Congress St., Salem, Mass. 01970. Copying for other than personal or internal reference use without express permission is prohibited. Requests for special permission or bulk orders should be addressed to the Editor. ISSN 0018-8190/01.

EUROMONEY INSTITUTIONAL INVESTOR PLC

Directors: John Botts (Chairman), Andrew Rashbass (CEO), Sir Patrick Sergeant, The Viscount Rothermere, Colin Jones, Martin Morgan, David Pritchard, Andrew Ballingal, Tristan Hillgarth

Part of Euromoney Institutional Investor PLC. Other energy group titles include:

World Oil and Petroleum Economist.

Political analysts shed light on US

election implications for the downstream

FIG. 1. AFPM’s Annual Meeting typically draws a large downstream crowd, including at last year’s event in San Antonio, Texas.

(6)

THE POWER

TO PROTECT

Five industry leaders in gas and flame detection have united giving you the power to protect in more ways and in more applications than ever before. Together we detect. Forever we protect.

Learn more at www.TycoGFD.com

(7)

April 5-6, 2016 | Norris Conference Centers - CityCentre

SCM Strategies + Best Practices

in a Low-Cost Environment

In today’s low-price environment, responding to changing demand with the right capacity, quickly, effi ciently and cost-eff ectively, can make or break profi tability. This creates even more imperative for oil and gas companies to build more effi cient, cost-eff ective oil and gas supply chains.

At the inaugural O&G Supply Chain Forum (OGSC), you’ll hear from supply chain management experts regarding the latest strategies, trends, and best practices in SCM.

Sessions focus on:

• Driving operational excellence thru strategic distribution, planning and scheduling

• Cost management

• Innovation in technology and research for SCM excellence • Best practices

• Developing eff ective collaborations for an effi cient supply chain ecosystem • Effi ciencies in shale play operations

Attendees will get a better understanding of:

• The framework for building a contemporary and global supply chain: the people, process, product and technology aspects

• Current challenges faced by manufacturers and distributors in an environment of lowest total cost

• How to use “Big Data” to drive sustainable cost-reduction • New ways of contracting and working internally to deliver substantial cost reductions

• 5 key collaborations essential to effi cient SCM

• The short and long term benefi ts of category based procurement • The role supply chain solutions play in sand logistics

• And much more

Five Key Collaborations Essential to

Effi cient Supply Chain Management

Just as secure supply lines are a key element in military campaigns, eff ective and effi cient supply chain management is critical to success in our global economy. Collaboration with numerous internal and external links in the chain is especially important to manufacturers and distributors operating on the international stage. Freking has 20 years of experience in

manufacturing, supply chain management and continuous improvement in a variety of industrial companies including Exterran LLC, Goodyear Tire and Rubber Company, Danaher Corporation and Siemens Stromberg-Carlson. A veteran of the US Marine Corps, he holds a bachelor’s degree in management science from St. Cloud State University and an MBA from Rollins College. He is certifi ed in production and inventory management by APICS, the premier professional association for supply chain management and the leading provider of research, education and certifi cation programs in that fi eld.

This presentation will focus on the top fi ve collaboration areas that are critical to successful supply chain management, using examples gleaned from his company’s experience as a global manufacturer of wellhead products for a variety of applications and pressure ratings.

Keynote: Craig Freking

Vice President Manufacturing and Supply Chain

Weir Oil and Gas

OGSupplyChain.com

Lanyard Sponsor: Exhibitors:

(8)

Capturing cost efficiencies in the market

Lea Souliotis

Global Wells Procurement/ Supply Chain Manager Alaska

BP

Implementing category based procurement

Sandeep Singh

Manager, Procurement Excellence and Process, Procurement and SCM

Cairn India Limited

Steve Martin

VP – Operations

Ryder Dedicated East

Soft money approach in bid evaluation

Saleh A. Hassoubah

GM Contracts, Purchasing and Warehouse Dept

Saudi Aramco Mobil Refinery Co Ltd (SAMREF)

Pioneering new uses of “Big Data” to drive substantial and sustainable cost-reduction Paul Smith

VP – Oil and Gas

Power Advocate

“Breaking new ground” – A supply chain transformation Pravin Tampi

VP – Global Sourcing of Supply Chain

Newpark Drilling Fluids

Julian Flores

Head of Energy Solutions

Panalpina

Risk mitigation for efficient capital deployment

Douglas Polk

VP – Industry Affairs

Vallourec USA Corp

Efficiencies in shale play operations Mark Sen Gupta

Senior Consultant

ARC Advisory Group

Five key trends of oil & gas consolidation Uday Turaga

CEO

ADI Analytics LLC

>> Download the complete agenda at OGSupplyChain.com

For more information about the event / speaking opportunities: contact Tranessa Hunt, Events Coordinator

at +1 (713) 520–4470 or [email protected]

For sponsor and exhibit opportunities: contact Melissa Smith, Events Director at +1 (713) 520-4475

or [email protected]

Save 15% with code: HPMarch

Registration Type with code: HPMarch Regular Admission

Visit OGSupplyChain.com to register online. To register offline, contact Tranessa Hunt at +1 (713) 520–4470 or [email protected].

Single Attendee $842 $990

Team of Two $1,543 $1,815

Team of Five $3,577 $4,208

(9)

SUPERIOR RESULTS. SUSTAINED.

For more than 30 years, KBC has provided best practice consulting solutions

and simulation software to the refining and petrochemical industries.

SUPERIOR RESULTS.

SUPERIOR RESULTS. SUSTAINED.

SUSTAINED.

[email protected] • www.kbcat.com • blog.kbcat.com AMER:+1 281 293 8200 APAC:+65 6735 5488 EMEIA:+44 1932 242424

KBC

Advanced Technologies

Most major oil and energy companies have engaged KBC to help them formulate and execute corporate strategy while managing environmental and operational risk. Have you?

KBC has the technology and expertise to empower you to maximise your refinery margins, improve the effectiveness of your existing assets, optimise refinery maintenance, increase energy efficiency and generate

superior return-on-capital investments.

KBC will be at the AFPM Annual Meeting in San Francisco, CA on 13-15 March 2016.

Visit us at our Hospitality Suite in Union Square 14 for food and drinks, entertainment, and market insights!

Most major oil and energy companies have engaged KBC to help them formulate and execute corporate strategy Most major oil and energy companies have engaged KBC to help them formulate and execute corporate strategy Most major oil and energy companies have engaged KBC to help them formulate and execute corporate strategy Most major oil and energy companies have engaged KBC to help them formulate and execute corporate strategy Most major oil and energy companies have engaged KBC to help them formulate and execute corporate strategy

The Industry’s Most Complete and Detailed Set of Simulation Models Detailed Set of Simulation Models

Detailed Set of Simulation Models Energy System Modelling, Optimisation and Performance Monitoringand Performance Monitoring Purpose-Built Process Simulation

for Refining and Petrochemicals for Refining and Petrochemicals for Refining and Petrochemicals

Advanced Technologies

(10)

Editorial

Comment

ADRIENNE BLUME, EXECUTIVE EDITOR

[email protected]

Hydrocarbon Processing | MARCH 2016 9

INSIDE THIS ISSUE

38

Special Report.

A commonly applied process for the removal of acid gas contaminants from gas is amine treating. At its heart lie the absorption of acid gases into an amine solution and the regeneration of this solvent to be fed back to the absorption column. The interplay between these two steps is important, as the treating performance can be majorly influenced by the amount of acid gas dissolved in the lean solvent returning from the regenerator. Shell Global Solutions discusses corrosion prevention improvements with acid-aided regeneration technology.

45

Regional Report.

Due to the growth in the region’s middle class, Central America has seen tremendous petroleum product demand growth over the past decade. This month’s regional report dives into an overview of the region and the future of Central America’s downstream hydrocarbon processing capacity buildout.

57

Heat Transfer. Four rules to minimize unplanned shutdowns of fired heater operations are shown, as well as examples of potential negative consequences of not following each rule.

105

Instrumentation.

Today’s industrial process control applications increasingly use automated systems to optimize operations and ensure a safer, more productive process. Linear position sensors used in these automated systems provide machine controllers with highly accurate feedback on product parameters, control states and outputs. Eileen Otto discusses how linear position sensors have become the preferred technology for critical and reliable linear displacement measurements in an array of industrial process control applications.

Corrosion prevention is a necessary cost

Corrosion is a major maintenance and reliability concern because it has the poten-tial to impact not only plant operations and costs, but also the environment and worker health and safety. It starts as a small prob-lem that can quickly turn into several larger ones. Equipment failures, leaks, plant and unit shutdowns, environmental and prod-uct contamination, and worker accidents are a few examples of bigger problems that can occur as a result of corrosion.

Given the wide and far-reaching scope of these issues, it comes as no surprise that failure to prevent or mitigate corro-sion in critical areas translates into corre-sponding high costs.

Recent incidents emphasize risk.

Two high-profile corrosion-related in-cidents have made headlines in recent months in the US. In late January, a natural gas storage facility near Los An-geles, California was discovered to have released over 150 million tons of meth-ane into the atmosphere since late Oc-tober 2015. The cement casing of the underground portion of the facility was discovered to be significantly corroded, amid other operational, safety and equip-ment issues. The incident caused health and relocation problems for thousands of residents. It also required the drilling of a relief well to mitigate the leak.

Outside of oil and gas, a public health emergency occurred in Flint, Michigan, when lead-tainted water filtered into the city’s drinking water supply. The Michigan Department of Environmental Quality (MDEQ) decided not to require corrosion control treatment for Flint’s switchover from the Detroit water system to the Flint River in 2014. This caused iron- and lead-lined service pipelines to corrode and leach unsafe levels of lead into Flint’s drinking water, as discovered in August 2015.

The high costs of corrosion.

Accord-ing to research by inspectAccord-ing and consult-ing company G2MT Laboratories,

cor-rosion will cost the US economy more than $1.1 trillion in 2016. This estimate, based on data provided by NACE Inter-national, includes direct (operator/own-er) costs of corrosion, as well as indirect (non-operator/owner) costs. Design, manufacturing, construction and man-agement costs are included for operators, while non-operator costs may encom-pass penalties, litigation, environmental cleanup, medical treatment and services suspension. Indirect costs may become direct costs as operators assume respon-sibility for corrosion-related incidents, when applicable.

Among direct costs, money spent on corrosion-prevention measures is gener-ally considered to be money well spent. Such measures include, but are not lim-ited to, the use of specialty coatings, sealants, inhibitors and other protection products; proper materials selection; and regular maintenance, inspection, repair and replacement of corroded equipment and corrosion-prone areas.

In the case of the gas storage facility in California, safety and operational risks by the operator combined with undetected corrosion to allow an extended methane release. This release, in turn, translated into mounting public health care, indus-trial and litigation costs for the company and the state, as well as damaged public perception for the operator. In Flint, the MDEQ’s decision to omit corrosion-prevention measures was made in an ef-fort to cut costs. However, this decision ultimately resulted in much higher public health, environmental and repair costs than if corrosion-prevention measures had been installed initially.

Both incidents show that prevention and mitigation are the most important costs related to corrosion, as well as the primary tools for addressing it. If applied properly, corrosion-prevention and cor-rosion-mitigation measures will reduce most other direct and indirect costs asso-ciated with corrosion.

(11)

| Business Trends

This month’s Business Trends focuses on five major trends affecting the downstream industry. These include: a forecast on global demand for industrial valves to 2020, how the approval of Chinese teapot refinery crude import licenses could lead to a fuel supply glut, the surge in US ammonia and urea plant construction, the start of Nigeria’s DSDP program and the consolidation of Japan's refining industry.

Photo: Iowa Fertilizer, a wholly owned subsidiary of Netherlands-based OCI N.V., is building a world-scale fertilizer plant in Wever, Iowa. Once completed, the $1.9-B facility will be able to produce between 1.5 MMtpy and 2 MMtpy of nitrogen fertilizer. Construction on the plant began in 1Q 2013 and is scheduled to begin operations in early 2016. Photo courtesy of Iowa Fertilizer.

(12)

LEE NICHOLS, EDITOR/ASSOCIATE PUBLISHER

[email protected]

Business Trends

World valve demand to reach nearly

$100 B by 2020

The Freedonia Group has forecast that world demand for industrial valves will climb to $98.5 B through 2019 (TABLE 1_). That represents an annual increase of 4.3%. The company’s lat-est forecast is detailed in its World Industrial Valves study. The industrial valve market’s greatest growth is in the developing regions of Asia, Africa, Middle East, Central and South Amer-ica, and Eastern Europe. Out of these regions, China will post the strongest value growth, accounting for 23% of all addition-al vaddition-alves saddition-ales on a globaddition-al basis. A number of smaddition-aller nationaddition-al markets, such as Indonesia, Malaysia, Thailand and Turkey, will see a healthy increase, as well.

Although the US, Western Europe and Japan will see growth in valve demand, they will lag behind the demand growth of developing nations. This is due to below-average in-creases in process manufacturing output and associated fixed investment expenditures.

Market advances will be driven by growth in chemicals and other process manufacturing output, electric power generation and construction activity. Ongoing efforts to expand water infra-structures in developing countries and maintain water and waste-water treatment and distribution systems in developed nations will also contribute to sales increases. The report goes on to say that dollar gains will be boosted by greater use of “smart” valves and actuators, and other better-performing, higher-priced items.

The demand for automatic valves (including control and regulator valves, as well as separately sold valve actuators) is pro-jected to grow at a faster pace through 2019 than sales of stan-dard (conventional) hand-operated valves. Automatic valves will continue to take market share away from standard valves because of the advantages they offer, which include improved safety and reduced operating costs. The fastest sales gains of any major product type will be posted by automatic actuators, fu-eled by valve users’ ongoing efforts to automate standard valve operation by installing automatic actuators as a less costly alter-native to replacing units with automatic valves.

Will Chinese teapots worsen

China’s fuel glut?

In 2015, China loosened restrictions on independent refin-ers’ ability to secure crude oil from the international market. These refiners, known as teapots, have a capacity of 20 Mbpd to 100 Mbpd. Although these refineries tend to be less com-plex than their nationally-owned counterparts, teapot refin-eries account for one-third of China’s total domestic refining capacity. China’s total refining capacity topped 14 MMbpd in 2015. Also within that year, expansions in teapot refining op-erations increased the independent refining sector’s total

refin-ing capacity to nearly 4.5 MMbpd, or nearly one-third of total domestic refining capacity.

Allowing teapot refineries to access international crude is another step being taken by the Chinese government to deregu-late its oil market. China’s administration, headed by President Xi Jinping, wants market forces to play a more decisive role in the industry. Allowing additional crude oil imports from small, independent refiners will increase competition, as well as allow additional entrants into the industry. For 2016, the Chinese government has more than doubled non-state crude import quotas to nearly 88 MMtpy, or approximately 1.75 MMbpd.

The new import licenses have restrictions, though, that include:

• The refiner must have one crude distillation unit with processing capacity of at least 2 MMtpy (40 Mbpd) • The refiner must have an available credit line of $1 B

certified by commercial banks

• The company must have at least five people with over five years of international trading experience

• The company must have at least 300 Mt of oil storage capacity

• The refiner must meet certain environmental conditions, which include the decommissioning of older, more-polluting units.

The first import license was awarded in early August 2015 to independent Chinese refiner Baota Petrochemical Group. By mid-August, two additional Chinese independent refiners re-ceived import licenses. These were Shandong Dongming Petro-chemical Group and Panjin Beifang Asphalt Fuel Co. By the end of September, Linjin Petrochemical Plant Co. and Shandong Kenli Petrochemical Group were also awarded crude import li-censes. At the time of this publication, additional crude import licenses have been awarded to:

• Shandong Huifeng Petrochemical Group • Chambroad Petrochemicals Co.

TABLE 1. World industrial valve demand forecast through 2019

Total industrial valve

demand, US $ MM Annual growth, %

2009 2014 2019 2009–2014 2014–2019 North America 14,300 19,300 22,650 6.2 3.3 Western Europe 13,400 15,800 18,100 3.3 2.8 Asia-Pacific 19,640 26,900 35,250 6.5 5.6 Central and South America 3,340 4,650 5,870 6.8 4.8 Eastern Europe 4,710 6,450 7,800 6.5 3.9 Africa/ Middle East 4,810 6,800 8,830 7.2 5.4 Total 60,200 79,900 98,500 5.8 4.3

(13)

Business Trends

• Sinochem Hongrun Petrochemical Corp. • Tianhong Chemical

• Shandong Shouguang Luqing Petrochemical Co. In 2015, 10 teapot refineries were awarded crude import li-censes totaling over 43 MMtpy. An additional 10 applications, representing over 38 MMtpy, are awaiting government approv-al. These include:

• Dongying Qirun Chemcial Co. • Hebei Xinhai Chemical

• Henan Fengli Petrochemical Co. • Shaanxi Yanchang Petroleum Group • Shandong Haiyou Petrochemical Group • Shandong Hengyuan Petrochemical Co. • Shandong Jincheng Petrochemical • Sinochem Hongrun Petrochemical Co. • Shandong Qingyuan Group

• Wudi Xinyue Ran Hua Co.

If approved, total crude imports by Chinese teapots could surpass 82 MMtpy, or nearly 1.7 MMbpd, in 2016. The major-ity of this crude will flow to the Shandong province. Located in northeast China, the province contains approximately 80% of China’s teapot refineries. The province has already received license approvals for nearly 31 MMtpy of crude imports, with an additional 26.8 MMtpy awaiting approval. An additional 25 MMtpy of crude import licenses awaiting approval are located in the Liaoning, Ningxia, Henan, Hebei and Shaanxi provinces (FIG. 1_{). Should all crude import licenses be} ap-proved, China could overtake the US to become the world’s largest crude oil importer.

The big question is how will the increased market share of crude oil processing for China’s teapot refineries affect domes-tic output and the region as a whole? Now that Chinese inde-pendent refiners can utilize crude oil in lieu of low-quality fuel oil, non-state refineries are expected to boost run rates. This, in turn, will create more refined products, which could add to the fuel supply glut already being witnessed domestically and in many countries in the Asia-Pacific region. Since the majority of Chinese independent refiners lack infrastructure to export their

products to the global market, their refined products will be sold primarily to the domestic market. This will ultimately eat into market share held by state-owned entities China National Petroleum Corp. (CNPC), the parent company of PetroChina; China Petroleum and Chemical Corp. (Sinopec); and China National Offshore Oil Corp. (CNOOC). Chinese teapots’ growing crude processing market share may force state-owned refiners to either find additional export markets or cut run rates.

Large, state-owned refiners are already adding to a diesel supply glut in the region, however. According to China’s Na-tional Bureau of Statistics, domestic refining output increased by nearly 4% in 2015, reaching nearly 10.5 MMbpd. The in-crease in crude oil processing was in response to a surge in domestic demand for gasoline. Chinese refineries were built mainly to satisfy domestic diesel demand. However, overcapac-ity and slowing industrial buildout have created an oversupply of diesel, which led the country to become a net diesel exporter in 2014. China’s shift to a more consumer- and service-based economy has lessened the demand for diesel from the construc-tion and heavy-duty trucks sector. As China’s middle class ex-pands and car sales rise, additional gasoline demand has caused domestic refiners to produce more gasoline supplies. In doing so, these refineries ultimately produce additional diesel sup-plies. Now that the country’s industrial growth is slowing, ex-cess Chinese diesel supplies could end up flooding the Asian market. With Chinese teapots likely to increase refinery run rates, state-owned refiners will have to combat independents eating into their domestic market share. Should state-owned refiners be unable to find export markets for excess diesel sup-plies, and both independent and state-owned refiners neglect to cut refinery run rates, then fuel stocks will inevitably begin to rise, and the nation’s fuel glut will continue to worsen.

US 2016, the year of ammonia-urea

plant capacity growth

It is not breaking news that the US shale gas boom has sparked a surge in the construction of new processing capacity. Some of the largest capital-intensive investments are being made in the US petrochemical and gas processing/LNG sectors. Total an-nounced capital investments in the US petrochemical sector have eclipsed $135 B. New capacity includes a sharp increase in the construction of ethane cracking and derivatives capacity, metha-nol plant construction and propane dehydrogenation units.

The availability of cheap shale gas is also expanding the US fertilizer industry. Over $16 B in new ammonia-urea plant projects have been announced. The majority of these projects are located in the Midwest, near agricultural demand centers. FIG. 2_{provides the location for active ammonia and urea projects} in the US. Total capital expenditures have decreased from over $20 B. In 2015, CHS abandoned its $3-B Spiritwood project in North Dakota, and EuroChem scrapped its $1.5-B Louisiana ammonia plant. CHS announced that its Spiritwood project was abandoned due to increasing construction costs, water supply challenges, overall risk profile and time required for the project to be built. In the end, CHS decided that the return on invest-ment could not justify the project’s cost. EuroChem shelved its $1.5-B Louisiana project due to difficulty in securing financing. Also, Western sanctions against Russia closed off many

financ-Shaanxi Waiting: 3.6 MMtpy Ningxia Approved: 6.16 MMtpy Henan Waiting: 2.93 MMtpy Shandong Approved: 30.73 MMtpy Waiting: 26.8 MMtpy Hebei Waiting: 5.4 MMtpy Liaoning Approved: 7 MMtpy

FIG. 1. Breakdown on the approval status of Chinese teapot refiners’ crude import licenses by province.

(14)

Downtime. A word often associated with high cost and low production. Team has been helping companies minimize downtime for over 40 years with our global online inspection, mechanical, and heat treating services. We’re here to help you repair, maintain, and ensure the integrity of your equipment to keep your facility up and operational.

Team experts are available 24 hours a day, 7 days a week, 365 days a year.

Call TEAM today: 1-800-662-8326 www.teamindustrialservices.com

Minimizing Downtime. Maximizing Performance.

IndustrIes served:

Your sIngle source for servIce: + Bolting/Torquing + Concrete Repair + Emissions Control + Exchanger Services + Field Machining + Fitness for Service + Heat Treating + Hot Tap/Line Stop + Isolation Test Plugs + Leak Repair

+ Manufacturing/Engineering + Mechanical Integrity + NDE/NDT Inspection + Specialty Welding + Turnkey Tank Program + Valve Insertion + Valve Repair

Keep it online.

(15)

Business Trends

ing options for the company. EuroChem decided to abandon the 800-Mtpy project in the second half of 2015.

Regardless, the US will see a hefty buildup of ammonia-urea capacity through the end of the decade. Over 5 MMtpy of addi-tional capacity is scheduled to go online in 2016. This includes capital-intensive projects such as CF Industries’ Donaldson-ville, Louisiana plant (began full-ramp up operations in 4Q 2015) and its Port Neal, Iowa plant, and Dyno Nobel’s Wag-gaman project. Total new ammonia-urea capacity could top 10 MMtpy by 2020 if all projects are completed.

Nigeria begins DSDP program

to aid transparency

Beginning this month, Nigeria will replace its oil swaps scheme, also known as offshore processing arrangements, with a direct-sale-direct-purchase (DSDP) program. The new DSDP program will allow state-owned Nigerian National Pe-troleum Co. (NNPC) to sell crude oil and buy refined prod-ucts directly from international refineries. The new program is intended to end the country’s oil swaps program, as well as save the country millions of dollars in costs.

The oil swaps program was started in 2010 when the cash-strapped NNPC could no longer pay for imported gasoline and diesel with cash. The oil swaps program was basically an oil bartering scheme that utilized a middleman to pay for refined products from foreign partners. The Nigerian government provided crude oil to traders in exchange for refined imports, such as gasoline and diesel. It is believed that these types of contracts lacked transparency and may have cost the Nigerian government billions of dollars over the past five years.

The Nigerian government has decided to combat unreliable oil swaps with its DSDP program. The DSDP program’s goal is to provide a more transparent system of crude oil and refined product purchases, as well as save the Nigerian government billions of dollars by eliminating the cost of using a middle-man. If the DSDP initiative is successful in saving the Nigerian government billions of dollars, then the savings could be used

Dakota Gasification Magnida JR Simplot Northern Plains Nitrogen OCI

CF Industries _ChemicalsCronus Ohio Valley Resources Austin Powder Southern Co. (ammonia byproduct) LSB Industries AM Agigren CF Industries Dyno Nobel Gulf Coast Ammonia (no site yet)

Pallas Nitrogen Midwest Fertilizer

Grannus Koch

Koch

Total ammonia-urea capacity startup 2016 = 5.5 MMtpy

2017 = 4.3 MMtpy 2018 = 2.5 MMtpy

BASF-Yara

FIG. 2. Active ammonia-urea plant projects in the US. Source:

Hydrocarbon Processing’s Construction Boxscore Database.

Multi-Stage Decoking Separator

Meets Permitting Requirements

281-987-0726

www.dyna-therm.com

High effi ciency

decoking separators!

SEPARATION AND STEAM DRUM SOLUTIONS SINCE 1961

Dyna-Therm has been supplying decoking separators since the 1970s. We have con-stantly modifi ed and improved the durability and life cycle of our separators to operate reliably even under the harshest solid/gas separation service environments including:

• High temperatures

• High erosion

• High solids loading

Our model DRLH has a guaranteed emis-sions rate to meet PM 2.5* emission standards for decoking service (*particulate matter smaller than 2.5 microns).

If you need to decoke one or multiple furnaces simultaneously, we can design a DRLH separator to meet your needs. It’s time to clean up air quality emissions for good; let us solve your problem today.

Performance is what we guarantee!

(16)

SUPERIOR SPRAY. SERIOUS RESULTS.

Whether you need to cool gas, dissolve salts in an overhead line or inject chemicals to prevent corrosion, we can help optimize injector performance. Here's how:

• Assistance with nozzle selection, spray direction and injector placement. There are dozens

of factors to consider before choosing a spray nozzle, determining whether to spray co- or counter-current and identifying the proper placement of an injector in a vessel. We can help you evaluate your process conditions and then design an injector to provide optimal performance

• Design validation using Computational Fluid Dynamics (CFD) and Fluid Structure Interaction (FSI). We use powerful modeling tools to simulate your environment, confirm the injector will provide the expected spray performance and withstand process conditions such as thermal stresses, heat transfer, vortex shedding and more

• Proven track record. Companies like Technip, Mustang Engineering, Bechtel, Shell and many others

rely on us to manufacture B31.1 and B31.3 code-compliant injectors and conduct radiographic, hydrostatic, ferrite tests and more

Learn More. Call 1.800.95.SPRAY or visit spray.com/injectors

This water wash injector uses an offset flange and a WhirlJet® hollow cone nozzle. A CFD study determined that this design provides the best coverage without heavy wall impingement.

WIDE RANGE OF HYDRAULIC & GAS ATOMIZING NOZZLES INCLUDING CLOG-RESISTANT STYLES

SLURRY RECYCLE INJECTOR. DOZENS OF OTHER TYPES ALSO AVAILABLE CFD MODEL ILLUSTRATES PERFORMANCE BASED ON INJECTOR PLACEMENT UDING STANT STYLE

Unmatched Global Engineering, Manufacturing & Technical Support Nozzles | Control Systems | Headers & Injectors | Research & Testing

1.800.95.SPRAY

(17)

Business Trends

to finally update the country’s downstream processing sector. The majority of downstream activities in the country are located in the Niger Delta. The area contains three of the country’s four operating refineries. Nigeria’s four refineries (Port Harcourt I and II, Warri, and Kaduna) have a total op-erating capacity of 450 Mbpd. This refining capacity, which is frequently underutilized, is not enough to meet domestic de-mand. The country’s crude oil production is nearly eight times higher than domestic consumption (FIG. 3_{), but poor refinery} utilization forces the country to rely on refined fuel imports to satisfy demand. Numerous refinery projects have been an-nounced in recent years, but few have come to fruition.

Projects._{Although the country has witnessed its fair share}

of project holds and cancellations, multiple downstream proj-ects are likely to move ahead. The most notable project is the construction of Africa’s largest privately owned refinery. The Dangote Industries Ltd. (DIL) integrated complex will be con-structed in Lekki, Lagos State, Nigeria, and will include a pet-rochemical complex and fertilizer facility (FIG. 4_{). The project} will be the first of its kind in Nigeria.

The $9-B, 650-Mbpd refinery will include a petrochemical plant that will produce 750 Mtpy of polypropylene, and a fer-tilizer plant that will produce 2.8 MMtpy of urea and ammonia for the nation’s agriculture sector. The refinery will produce

gasoline, diesel, aviation fuel and slurry to be used as a raw ma-terial for carbon black. The refinery’s primary goal is to supply the local market and reduce refined fuel imports. The project was also a nominee for Hydrocarbon Processing’s 2015 Top Proj-ect awards for refining. Completion is scheduled for 2018.

The announcement of the DIL refining and petrochemical complex has motivated additional companies to pursue large-scale projects. Brass Fertilizer is planning to construct a world-scale methanol, ammonia, urea granulation and gas processing plant on Brass Island. The $3.5-B Brass Fertilizer project will produce 5 Mtpd of methanol, 2.2 Mtpd of ammonia and 7.7 Mtpd of urea for domestic and export markets. Operations are scheduled to begin in 2018.

Indorama is expected to ramp up its $1.8-B Eleme fertilizer plant to full commercial operations in 1Q 2016. The 1.4-MMt-py single-train urea plant is the largest in Nigeria. The project was created in response to the Nigerian government’s plan to privatize the country’s fertilizer industry. The gas-to-urea-based plant is part of Indorama’s aim to create the continent’s largest petrochemical hub. The complex will ultimately reduce urea imports, as well as provide affordable nitrogen-based fer-tilizers to the growing agriculture industry.

Quantum Petrochemical recently built a grassroots petro-chemical and methanol complex. The $1.5-B facility is located in southern Nigeria on the Gulf of Guinea. The facility will produce ethylene derivatives such as polyethylene, polypro-pylene and methanol.

Gulf of Guinea Methanol Ltd., a subsidiary of Nigeria’s Gulf of Guinea Oil Exploration Ltd., is still looking into develop-ing a $1.1-B plant to convert natural gas into methanol. The methanol produced would be used as a feedstock for the petro-chemical industry.

Lastly, Nigeria LNG is still committed to building a seventh train at its Bonny Island LNG terminal. Construction of Train 7 would cost approximately $2.5 B. The project has been in limbo for numerous years, and no date for a final investment decision has been announced. If built, Train 7 would raise total capacity at Bonny Island from 22 MMtpy to 30 MMtpy.

Attacks on oil facilities declined following the implementation of the amnesty program (2009–2010). However, oil production has been stagnant or declining over the past few years because of supply disruptions and natural production declines. Crude output falls by more

than 25% from 2005 to 2009 as infrastructure attacks and oil theft escalate.

Total oil consumption Net exports 2006 2007 Pe troleum and o ther liquids pr oduc tion and c onsumption in Nigeria, MMbpd 2008 2009 2010 2011 2012 2013 2014 2005 0.0 0.5 1.0 1.5 2.0 2.5 3.0

Total oil production Crude oil production

FIG. 3. Petroleum and other liquids production and consumption in Nigeria. Source: US EIA.

(18)

Self-Suffi

cient

Operation

C R I T I C A L P R O J E C T E X E C U T I O N F O R T H E R E F I N E RY A N D P E T R O C H E M I C A L I N D U S T R I E S

Experience our experience

on your next project.

MEMBER:

PICS PEC ISNetworld BROWZ

Specialty

Refractory

Installer

API-936

Management

Team

ALL

Independent

Anchoring

Systems

100+ FCCU Turnarounds since 1999. This is Refractory beyond satisfactory.

And we have performed those turnarounds with an impeccable safety record. We’ve worked with virtually every major refi nery in the country, and 85% of our clients come back for new projects. Coincidence? We

don’t think so—Diamond is self-suffi cient, using our own equipment, plus our “Diamond Certifi ed” craftsmen bring a passion to the job that’s rare for any industry…let alone one that’s so challenging. diamondrefractory.com [email protected] 713.378.9200

3 +

years

of

ZERO

recordable

injuries

85%

of Diamond

customers come

back for new

projects

Proven

Safety & Quality

Programs

Modules &

Blankets

Furnaces

and

Heaters

Power

Boilers

Turnkey

FCCU

Services

Hex

Mesh

Fireproofi ng

& Acid Proofi ng

Intricate

Brick

Installation

(19)

(20)

Business Trends

19

The future of Japan’s refining industry

The island nation is embarking on a massive reduction in refining capacity. Oil products consumption in Japan has de-creased for over a decade due to a shrinking population that is transitioning to more efficient hybrid vehicles for transpor-tation. The substantial decrease in demand for transportation fuels has resulted in excess domestic refining capacity. In turn, refinery utilization has been reduced or eliminated.

According to BP’s Statistical Review of World Energy 2015, recent Japanese refining capacity peaked at 4.65 MMbpd in 2008, and has been in decline ever since (FIG. 5_{). By 2015,} Ja-pan’s refining capacity had dropped over 900 Mbpd to nearly 3.75 MMbpd.

On top of declining demand, the Japanese government is seeking to promote operational efficiency through its Refining Ordinance. The plan was introduced in 2010 by the Japanese Ministry of Economy, Trade and Industry (METI), and called for a new mandatory cracking-to-crude distillation capacity ratio of 13%. The new rules became effective in March 2014.

The country’s second phase of its Refining Ordinance is likely to shed up to 400 Mbpd of additional domestic refining capacity by 2017. To adhere to the mandatory requirements, Japanese refiners are expected to decrease utilization rates, consolidate operations or shut down facilities. By the end of 2015, four of the five largest refining companies had already announced mergers. Idemitsu Kosan will take over Showa

Shell Sekiyu, and JX Holdings, Japan’s largest refiner, will merge with TonenGeneral Sekiyu. These mergers are expected to take place by the end of 2Q 2017, and will result in two firms dominating the Japanese domestic fuels market.

With declining domestic fuels demand, the METI’s refining ordinances and domestic refiners merging operations, Reuters’ analysis forecasts that Japanese refining capacity could decrease to 3.2 MMbpd by 2020, and down to 2.3 MMbpd by 2030. If this scenario plays out, Japan would be dependent on refined fuels imports to meet demand, especially for gasoline.

SILICON is the global leader in refractory anchor manufacturing and installation using Rapid Arc Welding.

We oﬀ er refractory anchors for: Brick Linings

Concrete Linings Dual Linings Ceramic Fiber Linings Metallic Fibers

Contact us for all your refractory anchor needs and ﬁ nd out what diﬀ erence we can make.

0 1 2 3 4 5 6 Refining capacity Consumption 2030 2020 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 MMbpd Forecast

FIG. 5. Oil consumption vs. refining capacity in Japan with refining capacity forecast to 2030. Source: BP Statistical Review of World

Energy 2015, Reuters’ analysis.

Select 155 at www.HydrocarbonProcessing.com/RS Select 154 at www.HydrocarbonProcessing.com/RS

(21)

Modular

Refining

UOP delivers complete modular process units for the petroleum refining, petrochemicals and gas industries. Modular delivery minimizes overall project schedule, cost and risk by maximizing prefabrication of complex process units under quality controlled conditions and under the watchful eye of the process licensor. UOP has delivered more than 1,400 fully engineered and fabricated UOP process units to the global oil and gas industries.

For more information about UOP modular solutions, visit www.uop.com

Maximize project benefits

and minimize overall project

risk and execution time

(22)

Industry Metrics

MIKE RHODES, MANAGING EDITOR

[email protected]

Hydrocarbon Processing | MARCH 2016 21 Refinery margins weakened in the US due to lower winter demand. In

Europe and Asia, stronger regional demand amid a tightening environ-ment and export opportunities allowed for a recovery in crack spreads at the bottom of the barrel, which, along with continued strength in the gaso-line market, allowed refinery margins to rise. Refinery utilization rates rose, mainly in Asia, following the end of the heavy maintenance season.

Pr oduc tion, Bcf d Gas pric es, $/Mcf 0 20 40 60 80 100 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 2014 2015 2016

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 20 30 4050 60 70 8090 100110 120 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 2014 2015 2016 Source: DOE

Selected world oil prices, $/bbl

Global refining margins, 2015–2016*

Margins, US$/bbl 4

Jan.-15 Feb.-15 Mar.-15 April-15 May-15 June-15 July-15 Aug.-15 Sept.-15 Oct.-15 Nov.-15 Dec.-15 Jan.-16 WTI, US Gulf Brent, Rotterdam Oman, Singapore 0 10 15 20

Global refining utilization rates, 2015–2016*

60 70 80 90 100

Utilization rates, % US_{EU 16} Japan_Singapore

Jan.-15 Feb.-15 Mar.-15 April-15 May-15 June-15 July-15 Aug.-15 Sept.-15 Oct.-15 Nov.-15 Dec.-15 Jan.-16

US Gulf cracking spread vs. WTI, 2015–2016*

Cracking spread, US$/bbl

Prem. gasoline Jet/kero Diesel Fuel oil -20-10 0 10 20 30 40 50 60

Rotterdam cracking spread vs. Brent, 2015–2016*

Prem. gasoline Jet/kero Fuel oilGasoil -20 -10 10 20 40 30

Cracking spread, US$/bbl

0

Singapore cracking spread vs. Oman, 2015–2016*

-20 -10 0 10 20 30

Cracking spread, US$/bbl Prem. gasolineJet/kero GasoilFuel oil

Supply and demand, MMbpd

Stock change and balance, MMbpd

Source: EIA Short-Term Energy Outlook, February 2016 82 84 86 88 90 92 94 96 98 100 -3 -2 -1 0 1 2 3 4 5 6 Stock change and balance

World demand World supply

Forecast

2011-Q1 2012-Q1 2013-Q1 2014-Q1 2015-Q1 2016-Q1 2017-Q1

World liquid fuel supply and demand, MMbpd

An expanded version of Industry Metrics can be found online at HydrocarbonProcessing.com.

Brent dated vs. sour grades (Urals and Dubai) spread, 2015–2016*

Light sweet/medium sour crude spread, US$/bbl

Dubai Urals -4 -2 0 2 4 6

(23)

(24)

Global Project Data

LEE NICHOLS, EDITOR/ASSOCIATE PUBLISHER

[email protected]

Hydrocarbon Processing | MARCH 2016 23 Presently, Hydrocarbon Processing’s Construction Boxscore

Database is tracking over 2,100 projects around the world. The map below shows a breakdown of total active downstream projects by region and status. At the time of this publication, approximately 60% of active projects are in the preconstruction

stage. The Asia-Pacific region continues to lead in total active projects, followed closely by the Middle East. Approximately 40% of active projects in both regions are under construction. New project announcements increased in February, primarily from India and the US.

Boxscore new project announcements, January 2015–present 72 12 29 96 37 46 22 165 72 185 60 16 79 59 150 20 9 9 4 21 30 14 13 16 33 Africa Asia-Pacific Canada Latin America Planning Study Feed Engineering Under construction Middle East 65 19 8 65 80 41 20 14 47 87 Europe US

Detailed and up-to-date information for active construction projects in the refining, gas processing and petrochemical industries across the globe | ConstructionBoxscore.com

Market share breakdown of downstream HPI projects by sector

Feb.-16 Jan.-16 Dec.-15 Nov.-15 Oct.-15 Sept.-15 Aug-15 July-15 June-15 May-15 April-15 Mar.-15 Feb.-15 Jan.-15 27 20 ₁₈ 27 13 21 24 26 25 30 22 17 18 26

36%

Refining

33%

Petrochemicals

25%

Gas processing/LNG

6%

Other

(25)

Full Circle

Bringing your project

Concept through facility start-up

832.809.8909

www.woodgroup.com/mustang

(26)

Reliability

HEINZ P. BLOCH, RELIABILITY/EQUIPMENT EDITOR

[email protected]

Avoid pump shaft failures

We welcome and thrive on questions from reliability engi-neers and try to answer some as best we can. Inquiries do not only inform us of the state of knowledge and the issues con-fronting industry; our answers often require research, and our selections are appreciated by other readers.

We were asked to provide some direction relating to a reader’s research on potential causes of catastrophic pump shaft and im-peller failure. “In the course of my work as a pump and vibration specialist,” the reader said, “I have encountered a number of such failures. One root cause of these failures that has been suggested is a failed check valve, which allows the pump to freewheel in reverse due to backflow. However, I have found no documenta-tion that supports or explains this failure mode. In conversadocumenta-tions with various pump and field service technicians, it has been sug-gested that, when a pump is started while spinning in reverse, the starting torque exceeds the shaft strength and catastrophic shaft failure occurs. However, this explanation is counter to my understanding of electric motor starting torque.”

Pumps and pumps._{Our reply highlighted first what our}

read-er, of course, knew: There are cheap pumps and there are well-designed, more expensive pumps. In the days when there was still an abundance of common sense, some wise man wrote that we always get what we pay for.

User experts Ed Nelson and John Dufour1 _{noted that nearly}

all impeller fastening arrangements for single-stage pumps are threaded in a direction that is counter to the as-designed pump rotation. This reduces the chances of loosening in case the pump is driven in the reverse direction. But, the probability of reverse rotation is close to zero if the motor’s direction of rota-tion is checked before coupling the driver to the driven shaft. If the motor and pump are installed in the as-shipped and coupled condition, the chances of an impeller coming off are, of course, 50%.2_{Nelson and Dufour remind us that some impellers are}

screwed onto (or into) the wet end of the pump shaft (FIG. 1_).

These impeller types are particularly vulnerable to backward rotation in the case of product backflow.

Backflow can be prevented by discharge check valves, but not all pumping loops have working check valves, and user com-panies rarely include these valves on their periodic turnaround inspection and repair schedules. That fact is kept in mind by users who, for that and other reasons, favor pump designs that safely secure impellers to the shaft.

Know the impeller fastening method._{No pump}

manu-facturer has a universal fastener suitable for all pump sizes and service environments. In fact, the fastening method is not usu-ally shown on the manufacturer’s standard drawings. Also, rela-tively few user-purchasers include process pumps in a thorough

upfront machinery quality assessment (MQA).3_{The fasteners,}

in general, are standard items that the pump manufacturer pur-chases in bulk from a competitive seller. Like pump owners, pump manufacturers want to purchase parts from the lowest-cost supplier of buy-out or third-party items.

However, these fasteners can be a source of problems. Hard-ness and metallurgy must be observed, which brings us back to an MQA. Usually, an impeller spins off only if it is not properly secured, but even a keyed impeller fit jeopardizes reliability if the key is loosely fitted. Whatever their size and speed, pump impellers secured by castellated nuts or washers must retain the impellers in a manner that does not allow them to come off while operating in any direction. That is why we should exam-ine drawings before we purchase; we should know how parts or machines work before we buy parts; and we must ask a lot of relevant questions before buying plant assets.

Some superior pump designs use keys to secure impellers. A good key fit is a snug fit, meaning that hand-fitting is needed. Whereas, a vulnerable keyway has sharp corners, a keyway with low-stress concentration has bottom fillet radii, which then in-creases shaft safety factors. A well-designed shaft end also has a generous fillet radius at the shaft shoulders. In some applica-tions, the fillet contour is purposely made so large that special care must be taken so that it does not interfere with the mating radius at the bearing inner ring. Verification takes time. The in-different do not take the extra time, and the uninformed do not even know what to do with the extra time management allocat-ed for higher-quality work. Pardon us for quoting Mark Twain by saying, “The man who has a book and does not read it is no different from the man who cannot read.”

For the record._{The starting torque of many motors is seven}

times the full running torque. It is agreed that discharge check

A

FIG. 1. A screw-on style impeller, which is particularly vulnerable to backward rotation in the case of product backflow.2

(27)

Reliability

valves rarely leak to the point of allowing substantial reverse flow. “Lean and mean” plants don’t always install these check valves, and, if they do, those valves are not usually included in preventive-maintenance routines. In any event, a pump reli-ability and/or failure analysis review should include the piping and all related systems.

In the reader’s repeat-failure example, it is also possible that several seemingly small deviations can combine. It is easy to get away with one or even two deviations, but it is rare to succeed with four or five. Next to an electric motor, a pump is the sim-plest machine used by man. It typically has 40 parts and yet fails relatively often. An aircraft jet engine has more than 8,000 parts and rarely fails. Why? Jet engine manufacturers strive for perfec-tion; they disallow every known deviation. Their quest to find root causes of failure and their refusal to tolerate known devi-ances require trained personnel, strict adherence to checklists and procedures, and the time to do things correctly.

In this instance, we were not given enough information to accurately determine why the reader’s pump shafts failed. We can only vouch for the greatly increased probability of com-bining a few seemingly minor deviations from best practice so as to cause trouble. As deviations combine, safety factors will vanish, impellers will come off and shafts will break. There will never be a good substitute for following procedures and for un-derstanding what happened. Replacing parts and restarting the rebuilt machine without addressing the true root cause is the perfect setup for repeat failures. Finding the root causes of

fail-ure and implementing sound remedial steps are the common sense courses of action.

From our response, the reader correctly inferred that verbal hints at failed check valves causing catastrophic shaft failures are not supported by much factual evidence. He found nothing in the physics of how electric motors develop torque that could justify the over-torque reports. He suspected that such an expla-nation for a pump shaft failure was a convenient, but unverifi-able, explanation, when identifying the real cause is somewhat inconvenient. We essentially agreed, but gave him additional food for thought.

LITERATURE CITED

1_{Dufour, J. W. and W. E. Nelson,}_{Centrifugal pump sourcebook, McGraw-Hill, New}

York, New York, 1992.

2_{Bloch, H. P.,}_{Pump wisdom: Problem solving for operators and specialists, John Wiley}

& Sons, Hoboken, New Jersey, 2011.

3_{Bloch, H. P. and A. R. Budris,}_{Pump user’s handbook: Life extension, 4th edition,}

The Fairmont Press, Lilburn, Georgia, 2013.

HEINZ P. BLOCH resides in Westminster, Colorado. His professional career commenced in 1962 and included long-term assignments as Exxon Chemical’s regional machinery specialist for the US. He has authored over 650 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 maintains registration as a professional engineer in New Jersey and Texas.

Forget about paint, polymers or chemicals.

SilcoTek’s patented CVD coating solutions bring innovation and superior corrosion protection to reﬁ nery and petrochemical operations.

Discover the possibilities at www.SilcoTek.com

• Super alloy corrosion performance at a fraction of the cost • A more reliable and durable replacement for PTFE or PFA • Ideal for harsh processing or sampling environments