Improving operations

Like many refiners today, JsC Ukrtatnafta’s Kremenchug refinery in Ukraine was at a crossroads, facing a business imperative to increase production of better quality fuels, improve revenues and meet forthcoming stringent fuel regulations, a manifestation of the sulphur paradox.

With refining capacity of four to 10 million tonnes of crude oil per annum, Ukraine’s largest refinery needed strategic replacement and phased upgrading of aging assets.
Even though gasoline sulphur content was a priority, the refiner also needed to improve quality of diesel fuel, focusing not only on production of Ultra-Low sulphur grades but also on producing winter grades with enhanced cold flow properties. These improvements would allow Ukrtatnafta to gain revenue opportunities largely fed by the country’s growing share of commuter and commercial diesel vehicles.

To help Ukrtatnafta achieve its goals within its financial parameters, Shell Global Solutions and Criterion Catalysts & Technologies provided integrated, comprehensive and customised technology solutions as part of the Sulphur Technology Platform. Ukrtatnafta also adopted the Shell Global Solutions Pentagon Model, approaching its refining process by maximising use of its existing assets (first pentagon), revamps (second pentagon) and phased investments (third pentagon). This approach helped Ukrtatnafta not only survive but thrive, as it optimised its operations and improved margins as a result.

Key success factors

Drawing on deep experience and knowledge gained as an owner and operator of large, complex refining facilities, Shell Global Solutions and Criterion Catalysts & Technologies worked with Ukrtatnafta to implement solutions from the Sulphur Technology Platform and to ensure that the key requirements of a successful revamp were met:

• Quality - ensure that the right project is well executed; invest with no regrets; and identify all potential value that can be unlocked during the revamp.
• Speed - execute fast with no delays and target to start producing high quality fuels within the shortest period of time (i.e. months rather than years).
• Cost - maximise use of existing equipment as an application of the first pentagon; define depth of project requirements and invest wisely in a quick win project with room for longer term improvement as an application of the third pentagon.
• Implementation - use an experienced technology group and deliver on time to benefit from improved fuel qualities.

Diagnose

To begin the project, Shell Global Solutions and Criterion Catalysts & Technologies worked with Ukrtatnafta to seamlessly analyse the refinery’s key requirements and collaboratively bring forward solutions with minimal infrastructure changes. Together, the team developed a customised solution to revamp a diesel hydrotreating unit (DHT) in two phases that would ultimately produce Euro 5 diesel.

Recognising another opportunity to bring Kremenchug closer to its business objectives, Criterion Catalysts & Technologies and Shell Global Solutions also recommended a cost-effective solution focused on improvement of catcracker feed, and hence quality of gasoline pool, that could be achieved by conversion of another DHT unit to treat vacuum gasoil.

Design

To optimise production capabilities with minimal infrastructure changes, one DHT unit (LCh-24-7/68 DHT), consisting of two trains in parallel, underwent a two-phased revamp. A second unit (LK 6U-300 DHT) was converted to treat straight-run vacuum gasoil in line with the application of the second pentagon.

Revamp of LCh-24-7/68 DHT Unit

Phase one improvements enable uninterrupted production of automotive diesel based on the move to Euro 3, which requires no more than 350 wppm sulphur content. With lighter feedstock, the solution allows the refiner to produce shipments of diesel with sulphur content of no more than 50 wppm to meet Euro 4 guidelines. The solution included utilisation of offerings from Shell Global Solutions’ Sulphur Technology Platform:

• Criterion Catalysts & Technologies’ new generation of catalyst technology, ASCENT™ DC-2531, a high-activity CoMo catalyst providing a full range of sulphiding options as well as handling and loading flexibilities;
• Reactor modifications with Shell Global Solutions’ reactor internals, HD Trays and UFQs, to enhance unit performance, distribute gas and liquid uniformly, minimise thermal instabilities and maximise reactor catalyst inventory and catalyst utilisation.

Conversion of LK 6U-300 DHT Unit

Criterion Catalysts & Technologies and Shell Global Solutions recommended the conversion of another DHT unit to treat straight-run vacuum gasoil, with minimal changes, that enables production of vacuum gas oil with 0.2 per cent sulphur content. The customised catalyst solution extends catalyst lifespan to a cycle of about 24 months, thus yielding longer intervals between scheduled maintenance. The unit conversion included:

• Supply of full set of reactor internals including HD tray and UFQs;
• ASCENT™ DC-2551 specially developed for medium pressure VGO hydroprocessing applications, providing high coke stability, metals uptake capacity and high activity; and
• ASCENT™ NiMo DN-3551 that provides protection to catalysts from feed metal contaminants.

Deliver

Identifying challenges and working as a team towards the optimal solutions, Criterion Catalysts & Technologies, Shell Global Solutions and Ukrtatnafta successfully implemented a series of strategic, cost-effective technology improvements that enabled the Kremenchug refinery to meet competitive challenges, improve margins and increase production at a time when fuel standards were also becoming more stringent.

During a 12-month period ending in mid-2010, Ukrtatnafta realised sales and revenue increases of more than 49 and 129 per cent, respectively. During the same period, crude intake increased 51.5 per cent. While the focus was on enabling Kremenchug’s gasoline grades to meet Euro 3 standards, upgrades for production of low-sulphur diesel fuels significantly improved refining efficiency. With sustained feedstocks, improvements also facilitated full production of Euro 4 diesel fuel well ahead of the mandate deadline.

With help from Shell Global Solutions and Criterion Catalysts & Technologies, Ukrtatnafta was able to implement a full integration of services, catalysts and licensing which form part of the Sulphur Technology Platform. By applying the Pentagon Model approach with the Sulphur Technology Platform solutions, the refinery will be in a position to comply with Euro 4 and 5 standards, manage the sulphur paradox and not only survive but thrive.