The Catalyst Review April 2024 - 9

SPECIAL FEATURE
The change in the focus of production to the
maximum added value to the crude oil through
the production of high added value petrochemical
intermediates or chemicals leads to a minimum
Figure 12. Saudi Aramco crude oil to chemicals concept.
Source: IHS Markit, 2017.
production of fuels. As aforementioned, big players
such as Saudi Aramco Company have made great
investments in COC technologies, aiming to achieve
even more integrated refineries and petrochemical
plants, raising considerably their competitiveness
in the downstream market. The major technology
licensors as Axens, UOP, Lummus, Shell, ExxonMobil,
etc. have applied resources to develop technologies
capable of allowing a closer integration in the
downstream sector aiming to allow refiners to extract
the maximum added value from the processed
crude oil, an increasing necessity in a scenario where
refining margins are under pressure.
Beyond the advantages presented by closer integration between refining and petrochemical assets, it is important to understand
that the players of downstream industry are facing a transitive period where the transportation fuels are responsible for a great part
of the revenues. In this business scenario, it is necessary to define a transition strategy where the economic sustainability achieved by
the current status (transportation fuels) needs investment to build the future (maximize petrochemicals). Keeping the eyes only in the
future or only in the present can be a strategic mistake.
Opportunities and Challenges for the Catalyst Producers
As described above, the current and future scenario of the downstream industry requires higher capacity of bottom barrel conversion
from the crude oil refineries to achieve a better competitive positioning in the market, mainly due to the stricter quality regulations
over petrochemical intermediates in comparison with the fossil transportation fuels. This scenario represents a great opportunity but
at the same time, a great challenge to catalyst producers. The opportunity is related to the higher demand as a result of refiners'
dependence of catalysts, as a more intensive use of bottom barrel conversion units like FCC and hydrocracking units will lead to a
higher demand by catalysts and associated services which can favor the catalyst market for the next years. On the other hand, it is
expected that there will be a higher pressure to develop more stable and high performance catalysts aiming to deal with heavier
feeds in order to minimize the operating costs of the refineries to meet the petrochemicals market maximizing the operating lifecycle
of the processing units. Furthermore, the trend of biomass coprocessing in the crude oil refineries is another factor which tends to
put pressure on the catalysts developers once these feeds can demand specific catalysts formulation to ensure an adequate and
economic operating lifecycle of the processing units.
Conclusions for Parts I and II
The scenario faced by the players of the downstream industry requires even more competitive capacity to ensure higher value
addition to the processed crude oils, mainly considering the current trend of reduction in transportation fuels demand followed by the
growing market of petrochemicals that requires a higher conversion capacity in the refining hardware aiming to ensure higher yields
of added value derivatives. In this scenario, high integrated refining configurations based on residue upgrading and flexible refining
technologies can be economically attractive.
The combination of FCC and steam cracking units in the refining hardware can ensure a high yield of light olefins, mainly ethylene
and propylene, which presents growing demand ensuring closer integration with petrochemical assets as well as economic results.
In the current scenario of the downstream industry, a refining hardware capable to maximize light olefins is a significant competitive
advantage and the combination of FCC, steam cracking, and paraffin dehydrogenation technologies can help the refiners to reach
this goal.
Despite these advantages, it is important to consider the high capital investment in petrochemical and integrated refining
technologies. The timing of these investments is a strategic decision for refiners aiming to be prepared for the future of the
downstream market. Among these risks, petrochemical integration seems a significant driver to the future of the crude oil refining
market and the FCC and steam cracking technologies can develop a highlighted role in this scenario. Despite the benefits of
petrochemical integration, it is fundamental to consider the necessity to reach a circular economy in the downstream industry, to
achieve this goal, the chemical recycling of plastics is essential. As presented above, there are promising technologies which can
ensure the closing of the sustainability cycle of the petrochemical industry.
The Catalyst Review
April 2024
9
The Catalyst Review April 2024

Table of Contents for the Digital Edition of The Catalyst Review April 2024
