Hydrocarbon Processing - January 2022 - 30

Sustainability
factor for catalyst changeover
every 2 mos. Therefore, if no
emergency shutdown occurs,
there will be no shutdown during
the first year of operation. In a
mixed crude case, if all ARDS
trains are available, the ATB
processing capacity (55,000 bpd
× 6 = 330,000 bpd) is higher
than its production (305,400
bpd) from the crude columns.
In this case, the entire ATB
will be routed to ARDSs to
produce 0.5% sulfur VLSFO
without bypassing the ARDSs.
The VLSFO production for
MEW/export is expected to be
235,240 bpd after an internal
consumption of 10,000 bpd.
2. Normal operation of the
CDU and ARDS shutdown
for catalyst changeover.
A one-train shutdown of an
ARDS for a period of 25 d is
considered, as per design. The
ATB processing capacity at
the ARDS (55,000 bpd × 5
= 275,000 bpd) is lower than
its production (305,400 bpd)
from the crude columns. No
ATB bypass is required to meet
0.5% sulfur specifications:
around (30,400 bpd × 25 d)
760,250 bpd of ATB will be
required to be stored over this
shutdown duration, which can be
processed later when the unit is
back in operation. Total VLSFO
production for MEW/export
is estimated to be 210,830 bpd
during this period.
3. Normal operation of the CDU
and emergency shutdown
of ARDS. The ARDS will be
required to run continuously
at maximum capacity since
each ARDS train will be
out for catalyst replacement
each alternating month. Any
unplanned upset affecting ARDS
availability will require CDU
throughput reduction.
The cases are evaluated considering
mixed crude processing.
Upgradation/modifications required
in the existing configuration. Considering
these cases, it was concluded that
no modifications to the existing process
30 JANUARY 2022 | HydrocarbonProcessing.com
units facility are required to meet the
new IMO specification. However, the
operational flexibility of the refinery is
highly compromised and the handling
of dual qualities is extremely challenging.
Hardware modifications in shipment
lines/tankage are required to produce
two grades of fuel oil.
It is planned to evaluate alternate catalyst
for ARDSs, along with modifications
in the refinery line-up for handling
two grades of fuel oil specifications.
Additional chemicals required. No
additional chemicals or additives are
required to meet the new IMO specification.
However, the use of a hydrogen
sulfide (H2
S) scavenger additive can be
S streams-such as
optimized or stopped in view of nonblending
of high-H2
CDU residue from high-sulfur crudes
like KHC, Eocene or Lower Fars-to
the new product.
Blending facilities. With the implementation
of the new specification, bunker
fuel oil will be become a straight-run
product rather than a blended product.
Note: the high-sulfur content of CDU
residue makes it impossible for blending;
so, with the current configuration, no additional
blending facilities are required.
Takeaway. The IMO 2020 regulation
has affected both shippers and refiners:
shippers must upgrade their ships by installing
scrubbers to process the HSFO
or use VLSFO as their bunker; and
refiners must adapt by installing new
units, changing the crude slate or blending
light products with fuel oil to meet
the specification. The regulation is being
met with high demands for VLSFO,
which made its price rise by the beginning
of the year 2020.
The regulation on reduced sulfer
will be beneficial for KIPIC refinery
margins. From the unit product specification
and shutdown scenarios, it can
be noted that no additional modifications
are required for meeting the new
specification. With the increased focus
on operational availability and reliability
of the ARDS, KIPIC capacity utilization
is expected to be more than design
and, therefore, reap the benefits of the
new regulation.
Further modifications in the future
for sulfur content in fuel oil will cause
KIPIC to either revamp their ARDS
or change the activity of the catalyst
to meet the specification. Pricing for
crude oil, VLSFO and other products
will continue to rebound. Future studies
can examine the market after the crises
are over and if new IMO regulations
are applied.
LITERATURE CITED
1
Odey, F. and M. Lacey, " IMO 2020-Short-term
implications for the oil market, " Schroders, August
2018.
2
Billing, E., T. Fitzgibbon and A. Shankar, " IMO
2020 and the outlook for marine fuels, " McKinsey &
Company, September 2018.
3
Grimmer, R., J. Ahrens and L. Noda, " IMO 2020
rule: Refiner's perspective, " 2018, online: www.
shipandbunker.com/news/features/industryinsight/547131-imo-2020-rule-refiners-prespective.
4
5
Fuels
Institute, " Literature review summary: IMO
2020, " April 2019.
Billing, E. and T. Fitzgibbon, " What shipowners,
refiners and traders should know about IMO 2020, "
McKinsey & Company, November 2019.
6
Ship & Bunker, " Global average bunker price, "
online: www.shipandbunker.com/prices/av/global/av-glb-global-average-bunker-price.
7
Saville,
K., " Low-sulfur fuel prices plummet as IMO
2020 transition fades, " The Journal of Commerce
online, 2020, online: www.joc.com/maritime-news/
low-sulfur-prices-plummet-imo-2020-transitionfades_20200131.html.
8
Breakthrough,
" How COVID-19 eliminated IMO
2020's impact on over-the-road diesel prices, " 2020,
online: www.breakthroughfuel.com/blog/sulfur2020-diesel-prices/.
9
U.S Energy Information Administration (EIA),
" WTI crude oil futures prices fell below zero because
of low liquidity and limited available storage, " 2020,
online: https://www.eia.gov/petroleum/weekly/
archive/2020/200422/includes/analysis_print.php
10
OilPrice.com, " Oil price charts, " online: https://
oilprice.com/oil-price-charts
11 International Maritime Organization (IMO),
" Sulfur 2020-Cutting sulfur oxide emissions, "
2020, online: www.imo.org/en/MediaCentre/
HotTopics/Pages/Sulfur-2020.aspx.
12 U.S. Energy Information Administration (EIA),
" The effects of changes to marine fuel sulfur limits
in 2020 on energy markets, " March 2019.
ABDULWAHAB BIN NASER
is an Engineer in the Operational
Planning section of Technical
Services at Al Zour Refinery.
He plays an imperative role in
establishing the business work
process of the group and played
a vital role in the commissioning and startup of
the refinery. He is a Chemical Engineer and is in
the final stages of his MS degree in chemical
engineering from Kuwait University.
FATHIMA SHAMEEHA is a
Chemical Engineer with more
than 13 yr of experience in
planning. She now works as an
Operational Planning Engineer
at KIPIC Refinery.

http://www.shipandbunker.com/news/features/industry-insight/547131-imo-2020-rule-refiners-prespective http://www.shipandbunker.com/news/features/industry-insight/547131-imo-2020-rule-refiners-prespective http://www.shipandbunker.com/news/features/industry-insight/547131-imo-2020-rule-refiners-prespective http://www.shipandbunker.com/prices/av/global/av-glb-global-average-bunker-price http://www.shipandbunker.com/prices/av/global/av-glb-global-average-bunker-price http://www.joc.com/maritime-news/low-sulfur-prices-plummet-imo-2020-transition-fades_20200131.html http://www.joc.com/maritime-news/low-sulfur-prices-plummet-imo-2020-transition-fades_20200131.html http://www.joc.com/maritime-news/low-sulfur-prices-plummet-imo-2020-transition-fades_20200131.html http://www.breakthroughfuel.com/blog/sulfur-2020-diesel-prices/ http://www.breakthroughfuel.com/blog/sulfur-2020-diesel-prices/ https://www.eia.gov/petroleum/weekly/archive/2020/200422/includes/analysis_print.php https://www.eia.gov/petroleum/weekly/archive/2020/200422/includes/analysis_print.php http://www.OilPrice.com https://oilprice.com/oil-price-charts https://oilprice.com/oil-price-charts http://www.imo.org/en/MediaCentre/HotTopics/Pages/Sulfur-2020.aspx http://www.imo.org/en/MediaCentre/HotTopics/Pages/Sulfur-2020.aspx http://www.HydrocarbonProcessing.com

Hydrocarbon Processing - January 2022

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