PROF. DR. J. CLIFFORD JONES OIL REFINING: THE INTERNATIONAL SCENE

2 Oil Refining: The International Scene 1st edition © 2019 Prof. Dr. J. Clifford Jones & bookboon.com ISBN 978-87-403-3003-8 Cover picture shows an in Houston, Texas

3 OIL REFINING: THE INTERNATIONAL SCENE Contents

CONTENTS

Foreword 8

1 Preambulary discussion 10 References 11

2 The EU and non-EU European countries 12 2.1 Country-by country coverage of the EU 12 2.2 Further comments on EU countries 34 2.3 European countries other than EU countries 35 References 37

3 The OPEC countries and former OPEC countries 46 3.1 Overview 46 3.2 Supplementary comments 64 3.3 Non-OPEC Middle East countries 64 References 66

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4 OIL REFINING: THE INTERNATIONAL SCENE Contents

4 The USA and 75 4.1 Overview of the USA 75 4.2 Overview of Canada 103 4.3 Concluding remarks 106 References 107

5 Central America, South America and the Caribbean 118 5.1 Overview of Central America 118 5.2 Overview of South America 122 5.3 Overview of the Caribbean 129 5.4 Further comments 130 References 130

6 The Former Soviet Union 136 6.1 Overview by country 136 6.2 Further remarks 143 References 144

7 The Indian Subcontinent 146 7.1 Introduction 146 7.2 The Indian refineries classified by location 146 7.3 Pakistan 153 7.4 Bangladesh 154 7.5 Sri Lanka 154 7.6 Afghanistan 155 7.7 Further comments 155 References 156

8 Japan, South Korea and North Korea 158 8.1 Refineries in Japan 158 8.2 Refineries in South Korea 165 8.3 North Korea 168 8.4 Further comments 168 References 168

9 China, Taiwan and Mongolia 172 9.1 Major refineries in China (strictly People’s Republic of China, PRC) 172 9.2 Teapot refineries 180 9.3 Refineries in Taiwan 181 9.4 Mongolia 183 References 183

5 OIL REFINING: THE INTERNATIONAL SCENE Contents

10 Australia, New Zealand and Papua New Guinea 187 10.1 Past and present refineries in Australia 187 10.2 New Zealand 190 10.3 Papua New Guinea 190 10.4 Further comments 190 References 191

11 The Far East 192 11.1 Malaysia 192 11.2 Thailand 195 11.3 Vietnam 196 11.4 The Philippines 197 11.5 Singapore 197 11.6 Other countries in the region 201 References 201

12 Africa 204 12.1 Introduction 204 12.2 Cameroon 204 12.3 Chad 204 12.4 Côte d’Ivoire 205 12.5 Egypt 205 12.6 Ghana 207 12.7 Kenya 208 12.8 Morocco 208 12.9 Senegal 209 12.10 South Africa 210 12.11 Sudan 211 12.12 Tanzania 212 12.13 Tunisia 213 12.14 Small refineries in other African countries 213 12.15 General afterword 214 References 214

6 OIL REFINING: THE INTERNATIONAL SCENE

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7 OIL REFINING: THE INTERNATIONAL SCENE Foreword

FOREWORD

Oil refineries are a critical part of the global industrial infrastructure providing energy & chemical products on which the world depends. Professor Clifford Jones’ book provides a whistle stop tour round the many and varied refinery facilities that exist today stretching right around the globe. Each one is different. Each one is shaped by its history and the location’s particular challenges in terms of crude supply and market requirements. The result is an amazingly diverse network of facilities essential to growing the world’s economies and serving society’s needs not only today but for the foreseeable future.

When I started my career in the downstream oil industry in 1975, there were 19 refineries in the UK and today there are only 6. And yet the importance of those oil refineries has never been more important in securing the resilience of the nation’s energy supplies.

The geographical pattern of refinery capacity has changed markedly in those intervening years too with many facilities closing in the developed world, and with new, larger and more complex refineries springing up in oil producing countries and in the rapidly developing economies of Asia.

This has impacted on the oil product supply balances with the developed world moving from significant exporters of oil products to significant importers, and with a growing reliance on product supply from those new refineries.

Over the same period, there has been a substantial growth in global demand for oil products but also a marked change in its makeup. There has been a significant decline in residual , a marked shift from petrol to diesel, a sustained growth in aviation turbine fuel and an unrelenting pressure to reduce environmental impact of both facilities and oil products. These developments have provided significant challenges to refineries in terms of investments, which coupled with low and sometimes volatile margins, have impacted on their economic viability.

The pattern of ownership has changed too. National oil companies/state owned enterprises play a much bigger role. Joint venture activities help spread risk and the oil majors play a much smaller part of the makeup which has opened up opportunities to new market entrants.

Professor Clifford Jones’ book provides a truly global perspective on oil refining activity. The diversity of the facilities in terms of size & complexity reflect the interplay of historic, economic and political factors as refineries attempted to find their particular niche in matching available crude supply sources to their market demands economically and sustainably in a very interconnected world.

8 OIL REFINING: THE INTERNATIONAL SCENE Foreword

The detailed snapshot Professor Clifford Jones provides of the global refinery scene shows a vibrant and important international business sector delivering the energy and chemical products that society needs. Refineries will continue to play an important role in the years ahead, whether as a provider of a transitional fuel supply on the journey to a sustainable low carbon economy or of a vital pathway to producing the chemicals & pharmaceuticals on which the world depends.

The recently published BP Energy Outlook 2019 shows oil consumption of 4.5 billion tonnes in 2017 with projections ranging from 4 to 6 billion tonnes for 2040. One way or another oil refineries, which convert crude oil into useful and saleable products & intermediates, are going to be an important part of our global industrial base for a significant time into the future.

Ken Rivers June 2019

Ken Rivers is currently President of the Institution of Chemical Engineers. His extensive international career in the downstream oil industry spans 40 years and included being CEO of Refining NZ and responsibility for Shell’s UK refining operations. He is a past President of UK Industry Association. He also chaired the ‘ Oil Sector Government and Industry Task Force’, which considered ways of improving the resilience of the UK oil product supplies following the government’s review of the Refining and Fuel Import Sectors in 2014.

9 OIL REFINING: THE INTERNATIONAL SCENE Preambulary discussion

1 PREAMBULARY DISCUSSION

It is one of the most widely known facts of the oil industry (e.g. [1]) that the first in the US was that at Titusville Pennsylvania, developed by E.L. Drake and first producing in 1859. It is much less widely known where the oil from it went for refining. In fact it went in fact to a refinery in Pittsburgh owned by one Samuel Kier [2]. There the oil was heated in horizontal receptacles (‘stills’) capable of holding about 200 gallons. That there was a ‘ready-made’ refinery at the time of the Drake well is remarkable. Samuel Kier was in the salt well business, and frequently brine from a salt well was contaminated with crude oil from seepage. Kier did not dismiss the oil as an annoyance but started to collect and refine it to make illuminating oil, which was sold for $1.50 per gallon. That was several years before the Drake well, oil from which was naturally directed to Kier’s refinery. At $1.50 per gallon the illuminating oil was a highly expensive commodity. Application of an online ‘purchasing power calculator’ indicates that this is equivalent to about $50 per gallon at the 2019 value of the US dollar. Samuel Kier’s illuminating oil would have had to compete on the market with whale oil and possibly with tallow candles.

The average daily amount of crude oil refined in 2018 was 82.2 million barrels [3]. A useful approximate correlation is the ‘7 per metric tonne rule’, according to which a tonne of crude oil contains 7 barrels = (7 × 0.159) m3 = 1.113 m3 or (7 × 42) US gallons = 294 US gallons. Obviously, this is precisely true only for a particular crude oil density, but the rule is often applied in an approximate fashion without knowledge of the precise density as indeed it is in several places in this text. The ‘particular crude oil density’, for which 1 tonne has a volume of exactly 7 barrels, is 898 kg m-3 as the interested reader can easily confirm. It sometimes comes as a surprise to the newcomer to petroleum technology that API (American Petroleum Institute) gravity, for over a century the way of expressing the density of a particular crude oil, is an inverse scale, that is, the higher the density the lower the API gravity. That is for the following reason.

When in the early 20th Century the motor car proliferated, was by far the most important product from crude oil. The lighter the crude the more plentiful the gasoline fraction, so lighter crudes attracted higher prices than heavier ones. It was thought desirable to have an ‘index’ which increases with increasing gasoline content and therefore has to be an inverse density. Imagine trying to explain to untutored purchasers of crude oil why a crude scoring a low value of an important quality index was more expensive than one scoring a high value! That is the origin of the API gravity. It was introduced when there was reliance on straight-run gasoline, that is, distillate having a sufficiently high octane rating to be used in gasoline engines. As will become abundantly clear in later parts of this book, conversion of heavier refined products to lighter materials suitable for use in spark

10 OIL REFINING: THE INTERNATIONAL SCENE Preambulary discussion ignition engines is now very widely carried out. One wonders therefore whether the API gravity still has its original significance. Even so its use continues to be prevalent and there are numerous references to API gravity in this book. The expression is:

API gravity (degrees) = (141.5/density relative to water) - 131.5 so a crude oil having a density equal to that of water (rare without being an impossibility) would have an API gravity of 10 degrees. The density of 898 kg -3m from the previous paragraph corresponds to an API gravity of 26 degrees.

Returning to the figure of 82.2 million barrels per day for the daily amount refined in 2018, that is a precise number. ‘Refining capacity’ is less so. That is because at a refinery there are processes which interactively influence the total throughput at any one time, which is why ‘debottlenecking’ is practised. There is a detailed example of ‘debottlenecking’ later in the text. Moreover, when a refinery switches from one source of crude oil to another, post- fractionation operations such as reforming and might need to be adjusted, with an effect on the capacity of the refinery. Published ‘capacities’ for particular refineries abound in this text and care has been taken that they are up to date. Let a reader retain in his or her mind the points made in this introductory chapter.

REFERENCES [1] Jones J.C. ‘Drake’s 1859 oil well’ Chemistry in Australia December 2013 p. 7. [2] https://www.acs.org/content/acs/en/education/whatischemistry/landmarks/ pennsylvaniaoilindustry.html [3] https://www.reuters.com/article/iea-oil-refining/oil-refining-capacity-to-grow-at-record- pace-this-year-iea-idUSL8N1ZI28B

11 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

2 THE EU AND NON-EU EUROPEAN COUNTRIES

2.1 COUNTRY-BY COUNTRY COVERAGE OF THE EU BREXIT has not been fully implemented at the time of preparing this chapter, so the UK will be included. The table below lists the EU countries in alphabetical order and gives details of their refining capacities. Comments follow the table.

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12 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Country. Details.

Schwechat Refinery (Österreichische Mineralölverwaltung Austria. a.k.a. OMV) 176000 bbl per day [1]. Commissioned in 1960 replacing a refinery on the same site having been bombed.

The location of two of the largest oil refineries in Europe: TOTAL Antwerp Refinery (0.36 million bbl per day) and Belgium. ExxonMobil Antwerp Refinery (0.33 million bbl per day). A smaller refinery at Antwerp discussed in the main text.

LUKOIL Neftochim Refinery at Burgas 194000 Bulgaria. bbl per day. In operation for > 50 years.

Rijeka Refinery (Industrija Nafte a.k.a. INA) 90000 Croatia. bbl per day [9]. Commissioned in 1964 [10]. Sisak Refinery (INA) 60000 bbl per day [11].

Cyprus. No current activity. Previously oil refining at Lanarca [14].

Litvinov Refinery (Unipetrol RPA) 120000 bbl per day [16]. Czech Republic. Kralupy Refinery (Unipetrol RPA) 80000 bbl per day [17].

Kalundborg Refinery () 110000 bbl per day. Also receives natural gas condensate from the Sleipner field Denmark. [21]. Fredericia Refinery (Shell) 68000 bbl per day. Receives oil from the Danish sector of the North Sea [22].

Porvoo Refinery (Neste) 206000 bbl per day [23]. Finland. Naantali Refinery (Neste) 58000 bbl per day [24].

Nine refineries in operation ranging in capacity from 0.35 million bbl per day at the TOTAL Normandy Refinery [28] to 2700 bbl per day at the Fort de France Refinery [29]. Also the Donges Refinery [30] capacity 0.23 million bbl per day, the Feyzin Refinery [31] capacity 0.12 million bbl per day and the Grandpuits Refinery [32] capacity 0.10 million bbl per day, all France. three TOTAL refineries. Also the Port Jérôme-Gravenchon Refinery [33] capacity 0.27 million bbl per day and the Fos-sur-Mer Refinery [34] capacity 0.17 million bbl per day both operated by ExxonMobil, the Berre L’Etang Refinery [35] capacity 0.1 million bbl per day operated by LyondellBasell, and the Lavera Refinery [36] capacity 0.21 million bbl per day operated by Ineos.

13 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Country. Details.

Schwedt Refinery (Shell, et al.) 240000 bbl per day [46]. Ingolstadt Refinery (Bayernoil) 262000 bbl per day [47]. Ingolstadt Refinery () 110000 bbl per day [49]. Ruhr Oil Refinery (BP et al.) 266000 bbl per day [50]. Rheinland Werk Godorf Cologne Refinery (Shell) 190000 bbl per day [52]. Rheinland Werk Wesseling Cologne Refinery (Shell) 160000 bbl per day. MiRO Karlsruhe Refinery (Shell, Germany. ExxonMobil et al.) 320000 bbl per day [55]. Burghausen Refinery (OMV) 70000 bbl per day [56]. TOTAL Refinery Mitteldeutschland (TOTAL) 227000 bbl per day [58]. Emsland Lingen Refinery (BP) 90000 bbl per day [62]. Elbe Mineralölwerke Hamburg-Harburg Refinery (Nynas) 110000 bbl per day [63]. Hamburg (Holburn) Refinery 100000 bbl per day. Heide Refinery (Klesch) 85000 bbl per day [65].

Aspropyrgos Refinery (Hellenic Petroleum) 148000 bbl per day [67]. Corinth Refinery (Motor Oil Hellas) 185000 bbl per day [72]. Greece. Elefsina Refinery (Hellenic Petroleum) 100000 bbl per day [75]. Thessaloniki Refinery (Hellenic Petroleum) 93000 bbl per day [78].

Szazhalombatta Refinery (Magyar OLaj- és Gázipari Hungary. Részvénytársaság, abbreviated to MOL) 161000 bbl per day [80].

Ireland. Whitegate Refinery () 75000 bbl per day [82].

Sarpom Trecate Novara Refinery (ExxonMobil et al.) 250000 bbl per day [86],[87]. Augusta Refinery () 190000 bbl per day [89]. Falconara Marittima Ancona Refinery (Anonima Petroli Italiana) 85000 bbl per day [91]. Impianti Sud Refinery ( et al.) 214000 bbl per day [92]. Impianti Nord Refinery (Lukoil et al.) 160000 bbl per day [93]. Milazzo Refinery (Eni Italy. and Kuwait Petroleum) 200000 bbl per day. Sannazzaro de’ Burgondi Refinery (Eni) 160000 bbl per day [95]. Taranto Refinery (Eni) 90000 bbl per day [99]. Livorno Refinery (Eni) 84000 bbl per day [100]. Iplom Busalla Refinery (Piedmont Mineral Processing Industry) 40000 bbl per day [102]. Sarroch Refinery, Sardegna (Saras S.p.A.) 300000 bbl per day [105].

Lithuania. Mazeikiai Refinery (PKN Orlen) 290000 bbl per day [108].

Shell Pernis Refinery () 404000 bbl per day [111]. Botlek Refinery (ExxonMobil) Rotterdam, 195000 bbl per day [112]. BP Rotterdam Refinery (BP), 400000 bbl per day. The Netherlands. Gunvor Refinery Europoort (Gunvor, previously Q8) 80000 bbl per day [113]. VPR Refinery (Vitol) 80000 bbl per day [114]. Zeeland Refinery (TOTAL and Lukoil) 149000 bbl per day [117].

Slagen Refinery (ExxonMobil) 110000 bbl per day [121]. Norway. Mongstad Refinery (Statoil) 200000 bbl per day [122].

14 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Country. Details.

Plock Refinery (PKN Orlen) 330000 bbl per day [123]. Gdansk Refinery (Grupa LOTOS) 210000 bbl per day. Trzebinia Refinery Poland. (PKN Orlen) 4000 bbl per day [126]. Jedlicze Refinery (PKN Orlen) 2800 bbl per day. Glimar Refinery (Hudson Oil) 3400 bbl per day.

Porto Refinery () 110000 bbl per day [127]. Portugal. Sines Refinery (Galp Energia) 220000 bbl per day [127].

Petrobrazi Refinery Ploieşti (Petrom/OMV) 90000 bbl per day [131]. Petromidia Constanşa Refinery (Rompetrol) 100000 bbl per day Romania. [134]. Petrotel Lukoil Refinery Ploieşti (LUKOIL) 68000 bbl per day [136]. Vega Ploieşti Refinery (Rompetrol) 20000 bbl per day [138].

Panşevo Refinery () 90000 bbl per day [140]. Serbia. Novi Sad Refinery (Naftna Industrija Srbije) 52000 bbl per day [141].

Slovnaft Bratislava Refinery (MOL), 110,000 bbl per day [144]. Slovakia. Petrochema Dubová Refinery 3000 bbl per day [146].

Bilbao Refinery () 22000 bbl per day [149]. Puertollano Refinery () 140000 bbl per day [151]. Tarragona Refinery (Repsol) 186000 bbl per day [152]. A Coruña Refinery (Repsol) 125000 bbl per day [153]. Cartagena Refinery (Repsol) 220000 bbl Spain. per day [154]. Tenerife Refinery (CEPSA) 90000 bbl per day [159]. Palos de la Frontera Refinery (CEPSA) 200000 bbl per day [160]. Gibraltar-San Roque Refinery (CEPSA) 240000 bbl per day. Castellon Refinery (BP), 240000 bbl per day [162].

Refineries at Lysekil and Gothenburg (both Sweden. Preem). Jointly 340000 bbl per day [164].

Switzerland. Cressier Refinery 68000 bbl per day [166].

England. (ExxonMobil) 330000 bbl per day [167]. (), 221000 bbl per day [170]. (TOTAL) 223000 bbl per day [171]. Stanlow Refinery (Essar Oil) 272000 bbl per day. United Kingdom. Scotland. (Petroineos) 205000 bbl per day [174].

Wales. (Valero) 215000 bbl per day [175].

EU countries and their oil refining details.

15 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

The Schwechat Refinery near Vienna (first row of the table) is the only oil refinery in Austria. It processes of the order of 0.2 million barrels of oil per day [1]. In addition to domestic oil from the Vienna basin, Schwechat receives oil from countries including Kazakhstan and [2]. The domestic oil accounts for about 10% of the total [3]. The refinery produces motor fuel and also which is pipelined to Vienna Airport.

The TOTAL Antwerp Refinery (next row) receives crude oil from the Rotterdam-Antwerp Pipeline as does the ExxonMobil Antwerp Refinery [4]. A discussion of Antwerp is a suitable point at which to discuss the Nelson complexity index [5]. Introduced in the early 1960s, this index is a measure of the importance at a particular refinery of processes additional to fractionation. A refinery engaged in fractionation only would have a complexity index of 1.0. In the calculation of Nelson complexity index, whatever increment is set for a particular 360° operation is multiplied by the proportion of the fractionation product (distillate + residue) which undergoes the operation. A simple, pedagogic calculation will help reinforce this in a reader’s mind and this is in the boxed360° area below. thinking. thinking.

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© Deloitte & Touche LLP and affiliated entities. OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Atmospheric distillation sets a baseline Nelson complexity index of 1.0. Consider a hydroskimming refinery, that is, one at which the only operations are atmospheric distillation and catalytic cracking of naphtha, where 10% of the distillate experiences . Using an increment of 5 for the catalytic reforming, the Nelson complexity index of this hypothetical refinery would be:

1.0 + (0.10 × 5) = 1.5

Now imagine that, perhaps because of use of a particularly light crude, 20% of the distilled material was suitable for reforming. The Nelson complexity would then be:

1.0 + (0.20 × 5) = 2.0

For a more advanced refinery like TOTAL Antwerp, such devices as desulphurisers and crackers have their ‘increments’. A value of about 15 represents a refinery heavily capitalised with such processes so as to obtain a high degree of conversion (‘deep conversion’). The Nelson complexity index will vary as crudes of different API gravity are received. There is a calculation similar to this one in Chapter 12 when Societe Africaine de Raffinage in Senegal is considered.

The TOTAL and refineries at Antwerp are both complexes with capability for a miscellany of post-distillation operations, some of them state-of-the-art. Also at Antwerp is a 0.1 million barrels per day refinery, once operated by Petroplus and now by Gunvor, which receives high-sulphur crudes from Russia [6]. It is expected to operate at a Nelson complexity of 4.5 [6]. (See also the discussion in the next chapter of the Skikda Refinery in Algeria.) The Nelson complexity index is linked to equivalent distillation capacity (EDC, units barrels per day), and this is discussed for particular refineries at later stages of the book.

We are informed [7] and [8] that input to the Neftochim Refinery in Bulgaria is 9.5 million tonnes of crude oil per year. One can use the ‘7 bbl per metric tonne rule’ (see Chapter 1) to convert that to about 0.2 million barrels per day, totally consistently with the figure given in the table. The crude oil received by the refinery is entirely imported and some of the refined products are exported, notably to the USA. Both of the refineries in Croatia (next row of the table) are fairly small, >100000 barrels per day. Their capabilities beyond fractionation include desulphurisation and (FCC), and the Nelson complexity index is 5.8. That at the Sisak Refinery is 6.1 [12], and it is expected to rise to 9.5 when proposed expansion is carried out [13]. Each of the refineries receives imported as well as domestic crude oil. When oil refining there ceased, Lanarca in Cyprus (next row) became the site of a strategic petroleum reserve [15]. This is shown in Plate 2.1 below.

17 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Plate 2.1 Strategic petroleum reserve at Lanarca, Cyprus, formerly the location of a refinery. Image taken from [15].

The Litvinov Refinery in the Czech Republic (next row of the table) was originally the scene of liquid fuel production from lignite during the Second World War [16,18]. Conventional refining began there in 1945. At the Kralupy Refinery, where processing includes FCC, desulphurisation and reforming, the Nelson complexity index is reported as 7.5 [19]. FCC was introduced at the Kralupy in 2001. When in September 2014 there was leakage of hydrocarbon from the FCC unit, the entire refinery shut down for about a week [20]. Production was not seen as being viable without the FCC unit.

With reference to the comment in the next row of the table that the Kalundborg Refinery in Denmark receives, in addition to crude oil, natural gas condensate from the Sleipner field, it should be noted that Sleipner is in the Norwegian sector of the North Sea not the Danish. Condensate refining is of course over a narrower temperature range than crude oil refining, and there is no heavy residue. The Frederecia Refinery, though now receiving as reported in the table, predates North Sea oil production having been operating since the mid 1960s when it received only imported oil. Alphabetically Estonia, an EU member since 2014, would have belonged in the next row of the table. This country is unique in its reliance on domestic oil from shale (kerogen), and does not refine conventional oil.

At the Porvoo Refinery in Finland (next row of the table) there are 40 units for processing beyond fractionation, and the fairly high Nelson complexity index of 12.1 is consistent with

18 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries that [25]. The Porvoo Refinery has been operating for a little over 50 years and receives both North Sea and Russian oil [26]. The latter is Russian Export Blend (REB). Four million barrels per day of REB – two percent of the total world production – are produced. It has an API gravity of 32 degrees [27], signifying a density of 865 kg m-3. Some of it finds its way to North American markets. The Naantali Refinery also receives Russian crude [24] though of lower API gravity than REB.

Moving on to France (next row of the table), TOTAL’s Normandy Refinery has about the same capacity as its Antwerp Refinery (second row of the table). The Fort de France Refinery was set up 50 years ago to supply oil to French-speaking countries in the Caribbean and in South America [37], notably French Guiana. EU sulphur specifications for liquid fuels have become more and more stringent, and this has resulted in export of refined product from TOTAL’s Donges Refinery which did not meet the specifications. This will change in the near future when desulphurisation sufficient to meet EU requirements is installed at Donges [38]. The Feyzin Refinery entered use in 1964. In early 1966 there was a fire there which claimed eighteen lives [39]. The fire began in a spherical (LPG) vessel. The Granpuits Refinery supplies a large fraction of the automotive fuel used in Paris. In late 2018 there was major disruption to several of TOTAL’s refineries in France because of industrial action [40]. There is white oil production at the ExxonMobil

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19 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Port Jerome-Gravenchon Refinery [41]. White oils are used in the manufacture of products including pharmaceuticals and cosmetics. Marcol™ and PrimolTM are trade names for white oil produced by ExxonMobil [42] and they are food grade. Other refiners including TOTAL produce white oils. At the Fos-sur-Mer Refinery industrial action in 2016 was accompanied by a barricading of the entrance as shown in Plate 2.2 below.

Plate 2.2. Industrial action at the ExxonMobil Fos-sur-Mer Refinery in May 2016. Image taken from: www.dailymail.co.uk/travel/travel_news/article-3604632/People-fighting-pumps-Tourists- stranded-France-country-hit-fuel-strike-s-led-violence-forecourts.html

At Berre L’Etang there were two simultaneous tank fires in 2015 [43], one in a tank of gasoline and the other in a tank of naphtha. The latter is of higher boiling range than the former and therefore of higher reactivity: hydrocarbon reactivity increases with carbon chain length. The higher reactivity might have been a factor in the observation [43] that the naphtha fire took much longer to bring under control than the gasoline one did. Refined fuel from Lavera, which is on the Mediterranean coast, goes by pipeline to markets in France, Switzerland and southern Germany [44]. The refinery and the crude oil terminal at the nearby Port of Marseilles are part of the ‘Mediterranean crude oil trading basin’ [45].

Refineries in Germany are listed in the next row of the table. The Schwedt Refinery in Brandenburg has many processes additional to fractionation and the correspondingly quite high Nelson complexity index of 9.1 [46]. Most of its crude oil is from Russia, and is received via the Druzhba Pipeline. Oil entering this pipeline is from diverse sources including

20 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries the . The oil is blended to REB specifications (see the discussion of the Porvoo Refinery). At the Bayernoil Refinery at Ingolstadt in Bavaria there was an explosion in a fractionation tower in September 2018 [48]. There were eight non-fatal injuries and structural damage indicative of an overpressure [48]. The refinery at Ingolstadt operated by Gunvor receives via the Trans Alpine Pipeline crude oil, offloaded at the port of Trieste in Italy. The nearest coastline to Ingolstadt is the English Channel about 600 miles away, so refined products have to be taken to the markets by road or rail tanker. Most is supplied locally in Bavaria, though some finds its way to Austria. The Ruhr Oil Refinery is close to the German-Dutch border. This enables it to receive crude oil from the Rotterdam-Rhine Pipeline (Rotterdam Rijn Pijpleiding) [51].

Rheinland (anglicised form ‘Rhineland’) Werk Godorf Cologne Refinery and Rheinland Werk Wesseling Cologne Refinery can be considered jointly having merged in 2002 [53], and on that basis they constitute the largest refinery in Germany. The refinery receives oil by pipeline from Rotterdam, but some of its products are taken away by inland tanker vessels on the Rhine. Low water levels can preclude the loading of inland tankers to their full capacity as has recently happened on the Rhine [54], with the knock-on effects of that on distribution and supply. Moving on to the MiRO (Mineraloel Raffinerie Oberrhein GmbH) Karlsruhe Refinery, this receives crude by pipeline from Marseilles and from Trieste, venues having featured previously in this chapter in the discussion of Lavera and Ingolstadt respectively. Karlsruhe is inland, so ocean shipment of refined products does not take place. Some of the products from this refinery (about 40%) are taken to inland vessels on the Rhine for delivery, so the MiRO refinery has also been affected by the recent low water levels [56]. The Burghausen Refinery, like the Gunvor Refinery at Ingolstadt, receives oil from the Trans Alpine Pipeline. Commonality in crude oil source across the refineries is clear, and this aids one in understanding the term ‘Mediterranean crude oil trading basin’. The refinery supplies jet fuel by pipeline to Munich airport, and will soon be making for uses including the manufacture of synthetic rubber [56]. The manufacture of synthetic rubber from butadiene originated in Germany with IG Farben [57]. The TOTAL Refinery Mitteldeutschland is in Leuna. It has recently been producing 70000 tonnes per year (about 1300 barrels per day) of benzene [59] and this is conveyed, for use as a chemical feedstock, by pipeline. A further proposed activity is the production of methanol by gasification of the heavy residue [60]. There will be the disadvantage that methanol made in this way is not carbon neutral, but that is also true of the huge amount of methanol made from natural gas e.g. by Methanex [61].

The Emsland Lingen Refinery, which is in Lower Saxony, receives imported crude oil from a pipeline operated by Nord- Oelleitung GmbH (NWO) [62]. It also receives some domestic oil and some from Schoonebeek oilfield across the Dutch border, an oilfield brought back into production after decommissioning by means of (EOR)

21 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries methods. The Elbe Mineralölwerke Hamburg-Harburg Refinery was acquired by Nynas from Shell in 2019. Nynas are concerned not with such things as automotive fuels, jet fuels and marine fuels but with what they describe as ‘specialist oils’ [64]. Nynex produces a wide range of these and they include transformer oils, refrigeration fluids, heat exchanger fluids, lubricants and feedstock for chemical conversion, e.g. to synthetic rubber. These require crude petroleum products for their manufacture, and it is Nynas’ policy to obtain some of these from self-owned refineries. The Elbe Mineralölwerke Hamburg-Harburg Refinery is one such. The others are at Nynäshamn in Sweden, at Gothenburg in Sweden and at Eastham in (jointly with Shell). The raison d’etre of the Elbe Mineralölwerke Hamburg-Harburg Refinery changed, after transfer from Shell to Nynas, from general- purpose refining to make conventional fuel products to supplying a manufacturer of widely varying organic substances. Heide Refinery supplies Hamburg airport with jet fuel [66]. Like the Rhine, the River Elbe is suitable for oil tankers and some of the products from Heide are transported in this way. The Refinery in Woerth, Germany closed in 1995, and much later Germany’s loss became India’s gain. The mothballed distillation columns went to the Cuddalore Refinery in Tamil Nadu, which features in Chapter 6.

The next row of the table is concerned with refineries in Greece. The , which supplies Athens International Airport, is reported as having a Nelson complexity

22 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries index of 10.6 [67]. It is also reported as being state-of-the-art in FCC [68]. FCC processes have a significant NOx release [69]. The NOx is formed in the regenerator part of the FCC unit, that is, where the catalyst having been deactivated by coke is regenerated by burning the coke for return to the FCC reactor. Typically half the NOx emissions from a refinery are due to this regeneration process [70]. At the Aspropyrgos Refinery a Denox additive is used in the regenerator and the result is NOx emission 65% lower than in the absence of the additive [71]. This was motivated by the need for compliance with the EU Industrial

Emissions Directive. The alternative to NOx control in FCC would have had to be a NOx reduction in another refinery operation, possibly by use of low-NOx burners.

The Corinth Refinery is operated by Hellas. Most of the motor fuel from it goes to Shell Hellas retails outlets. These result from the acquisition in 2010 of Shell’s downstream operations in Greece by Hellas [73], [74]. Plate 2.3 below shows such an outlet on the island of Syros.

Plate 2.3 Image of the Shell Hellas on Syros. The Greek words on the display mean ‘Best performance’. Image taken from: https://www.bing.com/images/search?view=detailV2&id=3252ACD3210A4E399201EAC868 F3972ACB9C7920&thid=OIP.mvVdbWM5Q7l71tRd5dQeSgHaE8&mediaurl=https%3A%2F%2Fgreece. terrabook.com%2Fwp-content%2Fuploads%2F7%2FDSC_0633-web_F5720.jpg&exph=428&expw=640&q=shel l+hellas+gas+station&selectedindex=3&ajaxhist=0&vt=0&eim=1,6&ccid=mvVdbWM5&sim id=608011039541495682

23 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

The Elefsina Refinery, like the Aspropyrgos Refinery, is owned by Hellenic Petroleum. At Elefsina there is gasification of the petroleum coke, a process increasing in importance widely and sometimes directed at chemicals formation including methanol and ammonia [76]. At Elefsina the gasification product of the petroleum coke is used as a fuel gas, partly in power generation for the refinery [77]. There is a return to this practice in Chapter 8 when the Toa Oil Keihin Refinery in Japan is described. Also owned by Hellenic Petroleum is the Thessaloniki Refinery. Hellenic Petroleum obtains crude oil from Saudi Arabia, Iran, Libya (all OPEC countries) and Russia. The aggregate Nelson complexity index for the three refineries in Greece operated by Hellenic is 9.6 [79].

At the Szazhalombatta Refinery, a.k.a. the MOL Danube Refinery, has been in operation for over 50 years so straddles in time pre-communist Hungary and post-communist Hungary. Its owners MOL also have a significant holding in the Rijeka Refinery in Croatia, discussed above. The Rhine and Elbe have featured previously as rivers providing a means of conveying refined product. At the Hungarian refinery being described the Danube serves its turn, and again low water levels can make for difficulty [81]. The Whitegate Refinery in Ireland (next row of the table) obtains crudes from the North Sea and from Africa. The refinery can receive vessels of displacement up to 100000 tonnes [83], which is the within the displacement range for tankers of the Aframax type [84]. We are informed [85] that in January 2018 the Aframax tanker Thornbury departed Sullom Voe in Shetland with a cargo of 0.6 million barrels of crude oil destined for Whitegate. The Thornbury also carries fuel to the refinery at Stanlow in the north of England, to be discussed later in this chapter. In so doing it uses the oil terminal at Tranmere on Merseyside. It is also a frequent visitor to the Port of Rotterdam. The significance of the smallness of the Whitegate Refinery is discussed close to the end of the chapter.

It is clear from the next row in the table, appertaining to Italy, that there are several quite large refineries in that country. Crude oil for refining at the Sarpom Trecate Novara Refinery is conveyed by tanker to a terminal at Vado Ligure where there is storage capacity for > 1 million barrels of oil [88]. The port at Vado Ligure can take ships up to 35000 tonnes deadweight, a figure corresponding to a payload of about a quarter of a million barrels. Such amounts are carried by a ‘general-purpose’ or ‘coastal’ [84]. From the terminal the crude oil is transferred by pipeline to the refinery. The Esso Augusta Refinery is in Sicily and passed from ExxonMobil to Sonatrach in 2018 [90] but is still referred to by the Esso name. Sahara blend, domestic to Algeria, will be taken to the Augusta Refinery and the products returned to Algeria and distributed locally, not exported further. Falconara Marittima Ancona Refinery is on the Adriatic coast. It receives crude oil from tankers up to about 400000 tonnes, which is in the VLCC (very large crude carrier) range [84].

24 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Impianti Sud and Impianti Nord jointly constitute the Priolo Gargallo Isab Refinery, which has a Nelson complexity index of 9.3. The Milazzo Refinery in Sicily can receive crude oil from tankers of the ULCC (ultra large crude carrier) type, which can hold in excess of a million barrels. There was a major fire at this refinery in September 2014, which occurred in a tank of gasoline [94]. The Sannazzaro de’ Burgondi Refinery is near Milan. It aims to produce a maximum of light products by suitable choice of crudes and by conversion of heavier products into lighter ones. This has earned the refinery the soubriquet ‘The white refinery’ [96]. There was a fire at this refinery in December 2016 [97] (see below). There were no deaths or injuries. There had been two fires at this refinery in July of the same year.

Plate 2.4. Fire at the Sannazzaro de’ Burgondi refinery on st1 December 2016. Image taken from: https://www.sott.net/article/335410-Huge-fire-engulfs-one-of-Italys-biggest-oil-refineries

Consistently with its ‘white refinery’ image, the Sannazzaro de’ Burgondi refinery employs Eni Slurry Technology whereby heavy residual liquid and petroleum coke are converted to the equivalent of light distillates [98]. This uses hydrogen and a molybdenum catalyst. The process was initially used on a demonstration scale (1250 barrels per day) at Eni’s Taranto Refinery and success there was followed by implementation at the Sannazzaro de’ Burgondi refinery. The Livorno Refinery in Tuscany is the only Eni refinery which produces lubricants [101]. This is of course in addition to its fuel output. Livorno is a port town, and vessels bringing crude oil for the Eni refinery there include the Hermione [102]. Its deadweight is 74000 tonnes signifying a payload of around half a million barrels meaning that the vessel is of the Suez-Max type [84]. Plate 2.5 below shows the Hermione in port at Livorno.

25 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Plate 2.5 Oil tanker Hermione in the Port of Livorno. Image taken from: https://www.shipspottersteve.com/crude-oil-tankers.html

The Busalla Refinery distributes its products by road, rail and pipeline [103]. The refinery receives crude oil by pipeline from the Multedo oil terminal. In April 2016 there was leakage of crude oil from this pipeline [104].

The Sarroch Refinery is on the Island of Sardinia. At approaching a third of a million barrels per day, it has a claim to being the largest refinery in the Mediterranean region. The refinery is about 12 miles from Cagliari, which is a busy port. As would be expected of a refinery of the size, it has FCC. In FCC, a process which has featured several times previously in this book, the catalyst particles are typically up to 100 µm in diameter. They become entrained in the exit gas from the reactor in which they perform their catalytic role and are taken to a catalyst regenerator where they are heated to oxidise carbon having deposited during cracking as noted above. 535oC would be a typical temperature for FCC. Downstream of the regenerator there is removal by electrostatic precipitation of any remaining particles. Exit gas from that will be at a temperature quite high enough for use in a turbine to create mechanical power, and that is practised at Sarroch as it is at many refineries especially larger ones. Uses to which the power can be put include compressors. Sarroch refinery is planning to become a supplier of bunker fuel [106], indicating that major amounts of residuals are sold on as such.

26 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Like Estonia, Latvia has to be left out of the table above because it does not currently refine oil. This is likely to change in the 2020s [107]. With reference to the Mazeikiai Refinery in Lithuania (next row of the table), PKN Orlen are a Polish concern, and their operations in Lithuania were previously carried out by Mazeikiu Nafta [109]. Mazeikiai Refinery receives most of its crude oil from the Butinge oil terminal, itself an initiative of PKN Orlen when it took over the refinery [110]. This oil terminal can receive from tankers of deadweight up to 80000 tonnes.

Luxembourg and Malta, which would otherwise have featured in the next two rows of the table, do not have oil refineries. Eni haver a major presence in Luxembourg for marketing. Next in the alphabetical sequence then is the Netherlands, which is a major oil refining country. The Shell Pernis Refinery is the largest refinery in Europe. At the Botlek (ExxonMobil) Refinery oil is received by pipeline from tank farms at Maasvlakte and Europoort which are on reclaimed land. All of the BP filling stations in the Netherlands are supplied by the BP Rotterdam Refinery, and some refined products are exported to places including the US and the UK. Luxembourg (see above) also receives fuel from this refinery. Gunvor Refinery Europoort can receive oil from Very Large Crude Carriers (VLCCs). Gunvor refineries at Antwerp, Ingolstadt and Rotterdam have all featured in this section of the book. At its commencement of operations in 1993 the VPR Refinery was for natural gas condensate

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27 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries only; it was a ‘condensate splitter’, and was later extended to petroleum products. For this to happen in reverse – for an obsolescent oil refinery to become a condensate splitter – is much more common, and the best known example is probably the Marcus Hook Refinery in Philadelphia [115]. In fact the VPR refinery in the Netherlands still receives natural gas condensate in addition to light crudes. A point relevant to this is that the density ranges of condensate and light crude oil overlap [116]. There is a return to this point when the Mina Al-Ahmadi Refinery in Kuwait is discussed.

The Zeeland Refinery is the only one of the Dutch refineries in the table that is not located at the Port of Rotterdam although it is not very far away, about 40 miles from Rotterdam, and it receives crude oil from the Port of Rotterdam. A recent study has indicated that the refineries of Holland could furnish 8.5 to 17.5 petajoules (PJ) annually of heat for use elsewhere [118]. That signifies an rate of up to 550 MW of heat. This will shortly happen at Pernis, where the heat will be supplied to households [119]. It has already happened at Zeeland [120]. Some of the heat from there goes to a nuclear waste processing facility and some goes to a local waste management facility, enabling both to obtain CO2 reductions. The financial benefit to the recipients of the heat is also clear: natural gas in a quantity sufficient to raise 17.5 PJ would cost of the order of $US 45 million. The same amount of heat from fuel oil would cost about half an order of magnitude more.

The Slagen Refinery in Norway (next row of the table) was in operation from 1961, exactly a decade before the first oil production in the Norwegian sector of the North Sea which was at Ekofisk. (Ekofisk is only now being decommissioned.) Refining at Mongstad began in 1975. Moving on to Poland, we first note that there was oil refining in Jasło (close to Jedlicze) in the mid 19th Century [124]. It was motivated by a desire to produce illuminating oil which was cheaper than whale oil. Lubricants were also produced at Jasło. At that time animal fat (tallow) was used in the lubrication of machinery so the lubricant at Jasło was a novel product. Poland produces very little oil, and the viability of a refinery depends on supply. For that reason PKN Orlen have a long-term agreement with for supply of crude oil to the refinery in Plock. Plock has visbreaking, by which is meant thermal cracking of heavier material to reduce the viscosity. Sometimes ‘visbreaking’ is applied to heavy crude oils, to reduce their viscosity sufficiently for them to be flowed in a pipeline. Poland has only a short coastline, and that is with the Baltic Sea. The B3 field in the Polish Economic Zone of the Baltic Sea has been producing oil since the early 1990s, and that goes to the Gdansk Refinery [125] which also receives Russian crude. The other Polish oil refineries in the table, Trzebinia, Jedlicze and Glimar, are all very small and all date back > 100 years.

28 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

The two refineries in Portugal (next row of the table) can be considered jointly. Portugal produces no crude oil. Oil import for refining is via the Port of Sines and the Port of Leixões. Portugal exports refined petroleum products, that accounting for about 4% of Portugal’s revenue from exports. Unlike the other ‘Iberian country’ which is Spain, Portugal has its coastline not with the Mediterranean but with the Atlantic. That is propitious for its refining industry.

Like the coverage of Poland, that of Romania (next row of the table) will begin with a point of historical interest. At Ploiesti in Romania oil refining commenced in 1857 [128] and the quantity was 50 barrels (about 7 tonnes) per day. Heat for the refining was obtained by burning wood fuel. The oil refined at Ploiesti was from a local field and the desired product was illuminating oil. In 1857 Bucharest became the first city in the world to have public buildings and spaces illuminated by crude oil distillate. In countries where is still used in lighting, performances of up to 0.2 lumens per watt of energy released by the kerosene can be realised [129]. 7 tonnes per day of crude oil will yield about 2 tonnes per day of illuminating oil and if that is burned over a period of darkness of say 8 hours the rate of energy release is:

2 × 103 kg × 43 × 106 J kg-1/(8 × 3600 s) = 3 MW 600000 lumens

A modern 60 W light bulb is capable of about 11 lumens per watt of electrical energy [130], so 600000 lumens would require 600000/(60 × 11) = 900 such bulbs. No more than the roughest of comparisons is possible, but the calculated result that equivalent lighting could in the 21st century be achieved by about a thousand 60 W bulbs is intuitively sensible.

There is currently oil refining at Ploiesti. At the Petrobrazi Refinery in Ploiesti (see plate 2.6) there has been refining since 1943. At many of the refineries featuring in this book there is breakdown of heavier components to give gasoline equivalents and this is referred to as ‘residuum conversion’. The building up (oligormerisation) of lighter material to give a product in the boiling range of gasoline is less common. It is nevertheless taking place at the Petrobrazi Refinery [132]. The feedstock is , either from the LPG from fractionation or from FCC. The daily yield of gasoline [133] is about 35000 barrels (1500000 US gallons).

29 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

Plate 2.6. Petrobrazi Refinery in Ploieşti, Romania. Image taken from [131].

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30 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

The Petromidia Constanţa Refinery is at the Black Sea coast [135]. It receives crude oil by tanker via the terminal at Midia, which can receive tankers of the Suzmax type [84]. The refined products are sold not only in Romania but also in Bulgaria, Georgia and the Republic of Moldova. A Russian refinery having a Black Sea coast location is described in Chapter 6. The Petrotel Lukoil Refinery receives domestic oil as well as oil imported from Russia by tanker. It receives electricity from a wholly owned power plant which uses petroleum coke as fuel in a circulating fluidised bed [137]. At the scene of this conventional electricity generation there is also generation using photovoltaic cells. At the Vega Ploieşti Refinery there is production of ‘Eurobitumen’ [139] for use in road construction. This involves addition of a to bitumen to adjust properties including the elasticity.

Moving on to Serbia (next row of the table), Naftna Industrija Srbije operate two refineries. In a ‘bottom-of-the-barrel’ process, the refinery at Pančevo has extended the quantity of middle distillate and has produced petroleum coke, something it previously imported from Bulgaria [142]. The Novi Sad Refinery was bombed by NATO in 1999. Since 2016 it has been used to make oils for the manufacture of products including lubricants, like the refineries at Nynäshamn and Gothenburg in Sweden (see above). The similarity between these Swedish refineries and the Novi Sad refinery in its post 2016 role is emphasised in [143]. The Slovnaft Bratislava Refinery (next row of the table) receives crude from the Druzhba pipeline. This is one of the world’s longest pipelines, across its several branches having a length of 5550 km. It carries oil from the Caspian Sea as well as from Siberia and the Urals [145]. The low production at the Dubová Oil Refinery is due partly to reliance on rail transportation of crude. There are plans for this also to receive from the Druzhba pipeline [147] in which case expansion of the refinery will be possible. Slovenia is another absentee from the table. Up to 2000, the Lendava Refinery there produced about 40000 barrels per day [148].

Spain (next row) is well capitalised with refineries, and major amounts of refined product are exported. Petronor, who operate the Bilbao Refinery, are partly owned by Repsol who are themselves headquartered in Madrid. Interestingly, what is believed to be the first European import of crude oil from Canadian tar sands was received at Bilbao in 2014 in a quantity of just over half a million barrels [150]. It was for trying out the refinery with crude oil from tar sands. Puertollano Refinery, Tarragona Refinery, A Coruña Refinery and Cartagena Refinery are all owned by Repsol. Puertollano Refinery has been in operation for over 50 years. In 2003 there was an explosion there which claimed three lives [155]. A notable activity at Tarragona is dehydrogenation to make , in an annual quantity of 350000 tonnes. It goes to a polypropylene plant at Tarragona [156]. A Coruña Refinery was the scene of a fire in 2012 [157]. The high production rate at the Cartagena Refinery was made possible by expansions about a decade ago [158]. Accompanying the increase in fractionation capacity was installation of a number of features previously absent, including

31 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries a delayed coker by which is meant cracking with multiple reactor passes. This breaks down heavy material to give middle distillates, similarly to the ‘bottom-of-the-barrel’ process at Pančevo refinery described above. (See also the discussion of the Lyondell Houston Refinery in TX.) The Tenerife Refinery has been in operation since 1930. At that time national policy precluded oil refining in mainland Spain. It is operated by CEPSA as is the Palos de la Frontera Refinery. This, as well as producing fuels, supplies feedstock for the manufacture at a nearby plant of chemicals including phenol and acetone.

A traveller from Spain to Gibraltar is required to go through passport control at La Linea San Roque. The Gibraltar-San Roque Refinery, the largest refinery in the Iberian Peninsula, is on the shore of the Bay of Gibraltar. As might be expected from its location, it supplies bunker fuel to vessels as Sorrach Refinery does. The Detal-Plus™ process was recently introduced at the Gibraltar-San Roque Refinery [161]. This is used in the production of linear (unbranched) alkylbenzenes for detergent manufacture. There is a return to this theme when the Visakhapatnam Refinery in India is described. Products of the Gibraltar-San Roque Refinery include petroleum coke, which has featured in discussions of other refineries. One can conceive an expanded market for petroleum coke in the 2020s and beyond. For example, vehicles using a fuel cell are increasing in number and in importance, and electrodes are commonly metal on a carbon support [163].

Moving on to Sweden, additionally to the specialist activity at Gothenburg and Nynäshamn discussed above there is the conventional activity outlined in the table. The refineries at Lysekil and Gothenburg each receive crude oil by tanker. Lysekil accepts residual material from other refineries for upgrading at its vacuum distillation unit [165]. Vacuum distillation enables the material resisting evaporation at atmospheric pressure (‘bottoms’) to be distilled without cracking them. Their evaporation at atmospheric pressure might require a temperature high enough for cracking. The Cressier Refinery (next row) is the only oil refinery in Switzerland. It receives crude oil from a shipping terminal at Fos-sur-Mer in France where, as noted above, there is an Exxon-Mobil Refinery. Conveyance of the oil from the terminal to the Cressier Refinery is by the Southern European Pipeline, which supplies to France, Switzerland and Germany.

Note that all of the refineries in the UK (next row) are > 200000 barrels per day. The first oil refining there was at Skewen in Glamorganshire in circa 1920. Prior to that gasoline was imported in cans from Europe. The Fawley refinery near receives oil from the North Sea and from the Middle East [168]. The terminal for crude oil tankers delivering to the refinery can take tankers of up to 350000 tonnes deadweight, that is, into VLCC range [169]. There was a refinery at the site almost 100 years ago. The Humber Refinery receives most of its crude oil from the North Sea. It is a major producer of petroleum coke, which finds application as a metallurgical reductant. In 2001 there was a major fire at the refinery

32 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries in which 170000 tonnes of LPG burnt. A heater at an adjacent unit provided an ignition source for the leaked hydrocarbon [170]. The Lindsey Oil Refinery, like the Humber Refinery situated in the English County of Lincolnshire, is linked by pipeline to Buncefield where in 2005 the ‘largest fire in peacetime Europe’ [172] occurred. Crude oil for the refinery is taken by tanker to Immingham and from there to the refinery by pipeline [173]. The oil terminal at Immingham can take vessels of only up to 100000 tonnes deadweight, which is in the Suezmax range [84]. Grangemouth is the only oil refinery in Scotland. It long predates North Sea oil, and was once used to refine shale oil originating at nearby Pumpherston. It later received conventional oil from the Anglo-Persian Oil Company, which was of course the forerunner to BP. More recently it has received crude oil by pipeline from the Forties field in the UK sector of the North Sea. Chevron were the owner of the Pembroke Refinery when an explosion causing four deaths occurred there in 2011 [176]. More recently it has been owned by Valero, whose US refineries feature later in the book.

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33 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

2.2 FURTHER COMMENTS ON EU COUNTRIES The capacities of all of the refineries in the table add up to about 15 million barrels per day. There will therefore be about a million barrels of refinery processing gain which is fairly constant across a wide range of crudes at ~7%. Ireland is not of course leaving the EU when the UK does. Member states are required to have oil in reserve for contingencies and this is part of the oil stock of the EU [177]. Ireland has 1.5 million tonnes of crude oil in its contingency reserve [178]. About two thirds of it is stored in Ireland and the rest in the UK, Holland, Denmark and Spain, all EU countries until BREXIT comes into effect [179]. This is consistent with the idea of pooling the oil from the respective countries to form an EU reserve, and the amount in the UK is about 200000 tonnes (1.4 million barrels) which is stored at refineries. As things stand, after BREXIT part of the EU oil stock will be in a non-EU country, an untenable situation. The oil will have to be removed to one or more EU countries and it has been suggested it might in fact be taken to France [179]. Alternatively ‘crude swaps’ like those of Caspian oil and Iranian oil [180] might be devised. The only refinery in Ireland (Whitegate, see above) is a small one. The part of the oil reserve currently kept in Ireland is at ports. It is noted above that Whitegate receives crude oil from the UK Sector of the North Sea. That will soon cease to be trade between two EU countries.

More general points on the effects of BREXIT on oil refining in the UK have been made in a ‘position paper’ by the UK Association [181]. At present the UK like other EU countries has to register chemical substances with REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals [182]. Petroleum substances originating in the UK subject to REACH occur in amounts of 971 million tonnes annually. This converts to about 18 million barrels per day, and one should note the approximate correspondence of this to the figure in the previous paragraph obtained by summing the refinery capacities. As an example of REACH we consider its application to oil which, of course, goes to refineries. Compliance with REACH is confirmed by issue of a certificate: that for Brent crude can be downloaded from [183]. REACH has its basis in the EU, yet in [181] it is recommended that after BREXIT it should continue to apply to petroleum products in the UK. Essar have expressed the view that their refinery at Stanlow in Cheshire stands to gain from BREXIT [184]. This is not so much due to BREXIT per se as to the fact that the Great Britain Pound dropped sharply in value against the $US in the lead-up to the final BREXIT vote in parliament, when the Essar Refinery was meeting its own costs in GBP and selling its products in $US.

34 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

2.3 EUROPEAN COUNTRIES OTHER THAN EU COUNTRIES Such countries are listed below.

Country. Details.

Ballsh Refinery 20000 barrels per day Albania. [185]. Fier Refinery 10000 [186]. Both Albanian Refining & Marketing of Oil

Bosanski Brod Refinery (Zarubezneft) Bosnia and Herzegovina. 30000 barrels per day [187].

A refinery planned for West Fjords Iceland. (Westfjords) [189]. Target capacity 150000 barrels per day.

Skopje Oil Refinery (Hellenic Petroleum). North Macedonia (Republic of). 50000 barrels per day [191].

Kirikkale Refinery (Türkiye Petrol Rafinerileri A.Ş. a.k.a. Tupras). 100000 barrels per day [192]. Izmit Refinery (Tupras). 210000 barrels per day [192]. Batman Refinery (Tupras). Turkey. 22000 barrels per day [192]. Izmir Refinery (Tupras) 210000 barrels per day [192]. In Europe and Western Asia. Doğu Akdeniz Petrol Refinery (Çalik Enerji) 210000 barrels per day [194]. STAR Refinery (State Oil Company of Azerbaijan Republic a.k.a. Socar) 34000 barrels per day [195].

At the time of going to press the two refineries in Albania in the first row of the table are both out of service, and their return to service awaits investors [187]. Previously, products of the Ballsh Refinery included Mazut 40 fuel oil as at the Komsomolsk Refinery in Russia. At Fier heavy fuel oil and were major products, and some of the distillate becomes solvents. At the Bosanski Brod Refinery in Bosnia and Herzegovina there are vacuum distillation, catalytic cracking and hydrocracking, giving it the capability to get a good conversion from a heavy crude. In October 2018 there was an explosion at this refinery which claimed a life [188].

The planned refinery in Iceland is limited in proposed capacity by the inhospitable coastline close to it, which would preclude visits by large tankers. It will bring employment to the area, where there is currently unemployment because of the dwindling fishing industry. The oil consumption of Iceland (population 0.34 million) is only of the order of 15000 barrels per day [190]. Iceland currently imports refined petroleum products from Norway. Obviously Iceland will become an exporter if the planned refinery is built. At present the largest single export

35 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries from Iceland is aluminium. The Skopje Oil Refinery in North Macedonia is a hydroskimming refinery with one or two extras including hydrodesulphurisation of refined products.

The Tupras Kirikkale Refinery in Turkey has capabilities including reforming and hydrocracking, and its Nelson complexity index is 6.3 [192]. It receives crude oil at the Mediterranean coast of Turkey via the Ceyhan-Kırıkkale pipeline, and it despatches refined products by road tanker. The Tupras Izmit Refinery has a Nelson complexity index as high as 14.5 [192]. That is because of what is termed in [192] its ‘Residuum Upgrading Facility’. That a high degree of residuum conversion results in a high Nelson complexity index is a point made with emphasis throughout this book, for example in the discussion of the TOTAL Antwerp Refinery earlier in this chapter. By contrast the Tupras Batman Refinery, which has been in operation for over 60 years, has a Nelson complexity index of 1.8. It is avowedly not a conversion refinery [193]. The Tupras Izmir Refinery has a Nelson complexity index of 7.7 and has a wide product range, from LPG to wax.

The Çalik Enerji Doğu Akdeniz Petrol Refinery is in Ceyhan. It receives foreign oil by tanker and by pipeline. The Socar STAR Refinery commenced operations in 2018. It supplies motor fuel and jet fuel, and also substances including xylene which by an established scheme are passed along to a particular petrochemicals plant. Reformate is also produced at this refinery (see section 11.2).

36 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

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37 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

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38 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

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[70] Wei F., Luo G., Li J. ‘A multistage NOx reduction process for a FCC regenerator’ Chemical Engineering Journal 173 296-302 (2011). [71] https://www.digitalrefining.com/article/1001518,Reducing_NOx_emissions_from_an_ FCC_unit__TIA_.html#.XG5tMvZ2uUk [72] https://www.moh.gr/Default.aspx?a_id=10538

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39 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

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40 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

[100] https://www.eni.com/docs/en_IT/enicom/publications-archive/publications/brochures- booklets/countries/Livorno_eni%20ING.pdf [101] https://www.eni.com/enipedia/en_IT/international-presence/europe/enis-activities-in- italy.page [102] http://abarrelfull.wikidot.com/iplom-busalla-refinery [103] https://www.emerson.com/documents/automation/iplom-refinery-gets-highest-level- accuracy-using-emerson’s-wireless-tank-gauging-system-en-81154.pdf [104] http://www.ansa.it/english/news/2016/04/18/oil-pipeline-breaks-between-port-and- busalla-refinery_a5253cbe-c3f6-4589-8867-891a93204e7e.html [105] https://www.hydrocarbons-technology.com/projects/sarroch-refinery/ [106] https://www.tanknewsinternational.com/saras-to-construct-new-bunkering-terminal/ [107] https://www.reportsnreports.com/reports/1526646-2018-latvia-long-term-refinery- market-outlook-report-supply-demand-of-gasoline-lpg-diesel-fuel-oil-planned-refineries-fids- competition-and-new-opportunities-to-2025.html [108] http://www.orlenlietuva.lt/EN/Company/OL/Pages/Refinery.aspx [109] https://www.orlen.pl/EN/PressOffice/Pages/MazeikiuNafta-Thebiggestt.aspx [110] https://www.fluor.com/projects/butinge-oil-terminal-pipeline-epcm [111] https://www.shell.co.uk/content/dam/royaldutchshell/documents/corporate/shell- pernis-infographic.pdf [112] http://abarrelfull.wikidot.com/bp-rotterdam-refinery [113] http://www.gunvor-nederland.nl/en/ [114] https://www.vitol.com/what-we-do/refining/vpr-energy/ [115] Jones J.C. ‘Hydrocarbon Process Safety: A Text for Students and Professionals’ 2nd Edition Whittles Publishing, Caithness (2014). [116] Jones J.C. ‘Dictionary of Oil and Gas Production’ 288pp. Whittles Publishing, Caithness (2012). [117] https://www.smartdeltaresources.com/en/participants/zeeland-refinery [118] https://www.portofrotterdam.com/en/news-and-press-releases/refining-sector-produces- enough-residual-heat-for-230000-420000-households [119] https://www.portofrotterdam.com/en/news-and-press-releases/residual-heat-from-shell- keeps-16000-households-warm [120] https://www.smartdeltaresources.com/en/participants/zeeland-refinery [121] https://www.exxonmobil.no/en-no/company/operations/operating-locations/slagen- refinery [122] https://www.equinor.com/en/what-we-do/terminals-and-refineries/mongstad.html [123] https://www.thisismoney.co.uk/wires/reuters/article-5371413/Polands-Plock-refinery- eyeing-sulphur-rules-install-visbreaking-unit.html [124] http://www.angelfire.com/scifi2/rsolecki/ignacy_lukasiewicz.html [125] https://oilprice.com/Energy/Energy-General/The-Baltic-Sea-Europes-Forgotten-80- Billion-Oil-Play.html

41 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

[126] http://abarrelfull.wikidot.com/trzebinia-refinery [127] https://www.hydrocarbons-technology.com/projects/porto/ [128] https://www.worldrecordacademy.org/technology/worlds-first-oil-refinery-ploiesti-218277 [129] https://saurorja.org/2011/07/18/kerosene-vs-klean-lighting-up-rural-india-cost-and- emission-analysis/ [130] http://www.thelightbulb.co.uk/resources/lumens_watts/ [131] http://abarrelfull.wikidot.com/petrobrazi-ploiesti-refinery [132] https://www.romaniajournal.ro/omv-petrom-invests-eur-60-m-in-a-new-innovative- polyfuels-technology-at-petrobrazi-refinery/ [133] https://www.process-worldwide.com/omv-selects-axens-polyfuel-technology-a-569807/ [134] https://www.industryabout.com/country-territories-3/204-romania/oil-refining/514- petromidia-navodari-oil-refinery [135] https://rompetrol-rafinare.kmginternational.com/en/rompetrol-rafinare/petromidia- refinery [136] http://petrotel.lukoil.com/en [137] http://legr.lukoil.com/en/About/Generalinformation [138] https://www.industryabout.com/country-territories-3/204-romania/oil-refining/518- vega-ploiesti-oil-refinery

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42 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

[139] https://www.kmginternational.com/mediaroom/press-releases/vega-refinery-first- romanian-modified-bitumen-producer-id-577-cmsid-471 [140] https://www.hydrocarbons-technology.com/projects/nis-pancevo/ [141] http://abarrelfull.wikidot.com/novi-sad-refinery [142] https://www.nis.eu/en/presscenter/nis-starts-constructing-bottom-of-the-barrel-plant- key-project-in-the-second-stage-of-modernising-pancevo-oil-refinery [143] http://ir.nis.eu/fileadmin/template/nis/pdf/Reporting/Presentations/English/NIS_ BP_2014_2016_eng.pdf [144] http://abarrelfull.wikidot.com/slovnaft-bratislava-refinery [145] https://www.iaot.eu/en/oil-transport/druzhba-pipeline [146] https://www.industryabout.com/country-territories-3/220-slovakia/oil-refining/571- petrochema-dubova-oil-refinery [147] https://spectator.sme.sk/c/20029718/petrochema-given-reprieve-by-russians.html [148] http://www.world-petroleum.org/docs/docs/pdf/oil_industry_slovenia_3.pdf [149] https://www.industryabout.com/country-territories-3/96-euskalherria/oil-refining/212- petronor-bilbao-oil-refinery [150] https://www.theguardian.com/environment/2014/jun/06/first-tar-sands-oil-shipment- arrives-in-europe-amid-protests [151] http://abarrelfull.wikidot.com/puertollano-refinery [152] https://www.hydrocarbons-technology.com/projects/tarragona-refinery/ [153] http://abarrelfull.wikidot.com/la-coruna-refinery [154] http://abarrelfull.wikidot.com/cartagena-refinery [155] http://gasandoil.com/news/europe/48d9590333ebdada131e41dc731c17c8 [156] https://www.chemicals-technology.com/projects/tarragona-propane-dehydrogenation/ [157] https://uk.reuters.com/article/repsol-refinery-fire/repsol-a-coruna-refinery-fire- extinguished-idUKL6E8LAOEX20121010 [158] https://sacyrfluor.com/proyectos/repsol-cartagena-refinery-expansion [159] http://abarrelfull.wikidot.com/tenerife-refinery [160] http://www.grupoditecsa.com/en/portfolio-item/cepsa-refineria-la-rabida/ [161] https://www.digitalrefining.com/news/1005138,CEPSA_selects_solid_bed_Detal_ Plus____technology_from_Honeywell_UOP.html#.XHU4uvZ2umQ [162] https://www.energia16.com/castellon-refinery/?lang=en [163] https://www.cataler.co.jp/en/aee2018/electro/fcv.php [164] https://www.preem.se/en/in-english/about/refineries/ [165] https://www.constructionboxscore.com/project-news/preem-advances-lysekil-refinery- expansion-project.aspx [166] https://varoenergy.com/what-we-do/refining [167] https://www.exxonmobil.co.uk/en-gb/company/uk-operations/refining-and-marketing [168] https://www.fawleyonline.org.uk/fawley-tour-virtual-visit-fawley-oil-refinery/ [169] http://www.ukpia.com/industry_information/refining-and-uk-refineries/exxonmobil.aspx

43 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

[170] https://www.hydrocarbons-technology.com/projects/humber/ [171] http://www.ukpia.com/industry_information/refining-and-uk-refineries/total-lindsey- oil-refinery.aspx [172] https://www.bbc.co.uk/news/av/uk-35063700/devastation-of-buncefield-blast-10-years-on [173] http://www.ukpia.com/industry_information/refining-and-uk-refineries/total-lindsey- oil-refinery.aspx [174] https://www.ineos.com/sites/grangemouth/ [175] https://www.valero.com/en-us/Pages/Pembroke.aspx [176] https://www.theconstructionindex.co.uk/news/view/hse-takes-seven-years-to-bring- pembroke-refinery-case-to-court [177] https://www.ceicdata.com/en/indicator/ireland/oil-consumption [178] https://ec.europa.eu/energy/en/topics/energy-security/eu-oil-stocks [179] http://www.irishnews.com/news/northernirelandnews/2018/07/16/news/republic- to-remove-all-oil-reserves-from-the-uk-after-almost-20-years-as-part-of-its-brexit- preparations-1382967/ [180] Jones J.C., Russell N.V. ‘Dictionary of Energy and Fuels’ Whittles Publishing, Caithness and CRC Press, Boca Raton (2007). [181] www.ukpia.com/docs/default-source/default-document-library/fuelseurope-ukpia-brexit- position-paper-final.pdf?sfvrsn=0

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44 OIL REFINING: THE INTERNATIONAL SCENE The EU and non-EU European countries

[182] https://www.concawe.eu/reach/petroleum-substances-and-reach/ https://echa.europa.eu/regulations/reach/registration/data-sharing [183] https://www.shetland.gov.uk/ports/oilterminal/loading-discharging/documents/ BrentDataSheet.pdf [184] https://www.essar.com/turnaround-stanlow-reflects-essar-oils-global-vision/ [185] https://www.industryabout.com/country-territories-3/8-albania/oil-refining/1-armo- ballsh-oil-refinery [186] https://www.industryabout.com/country-territories-3/8-albania/oil-refining/2-armo- fier-oil-refinery [187] http://abarrelfull.wikidot.com/bosanski-brod-refinery [188] https://www.rferl.org/a/29534696.html [189] http://www.savingiceland.org/2007/08/disaster-plans-for-the-westfjords/ [190] https://www.theglobaleconomy.com/Iceland/oil_consumption/ [191] https://www.industryabout.com/country-territories-3/152-macedonia/oil-refining/408- okta-skopje-oil-refinery [192] https://www.tupras.com.tr/en/rafineries [193] http://www.taca.com.tr/sayfalar.asp?LanguageID=2&cid=3&id=19&id2=84 [194] http://www.contractorsunlimited.co.uk/news/100728-shaw-turkey.shtml [195] https://www.azernews.az/oil_and_gas/143525.html

45 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

3 THE OPEC COUNTRIES AND FORMER OPEC COUNTRIES

3.1 OVERVIEW As with the previous chapter the information will be given in tabular form with comments following.

Country. Details.

Riyadh Refinery (). Rabigh Saudi Arabia. Refinery (Saudi Aramco/Sumitomo). Ras Tanura Refinery (Saudi Aramco). Yanbu Refining capacity ~ 3 million bbl per day [1]. Refinery (Saudi Aramco). Yanbu Refinery (SAMREF). Jubail Refinery (SATORP). YASREF Production ~ 11 million bbl per day [2]. Refinery, location Yanbu. Jazan Refinery (Saudi Aramco). Jubail Refinery (SASREF).

Basra(h) Refinery (Iraq , Iraq. INOC). Daurah Refinery (INOC). Kirkuk Refinery (INOC). Baiji Salahuddin Refinery Refining capacity > 1 million bbl per (INOC). Baiji North Refinery (INOC). day. Expansion under way [19]. Khanaqin/Alwand Refinery (INOC). Samawah Refinery (INOC). Haditha Refinery (INOC). Production ~ 4.5 million bbl per day [20]. Muftiah Refinery (INOC). Gaiyarah Refinery (INOC). Erbil Refinery (KAR Group).

Kuwait. Mina Al-Ahmadi Refinery (KNPC). Mina Abdullah Refinery (KNPC), Al Zour Refining capacity 1.4 million bbl per day [40]. Refinery, Kuwait National Petroleum Production 2.8 million bbl per day [41]. Company (KNPC, under construction).

Iran. Abadan Refinery (NIODC). Arvand Oil Refinery (Arvand Free Oil Refining Company). Refining capacity 1.6 million bbl per day [46]. Arak Refinery (NIODC). Tehran Refinery (NIODC). Isfahan Refinery (NIODC). Tabriz Production 3.9 million bbl per day [47]. Refinery (NIODC). Shiraz Refinery (NIODC). Lavan Refinery (NIODC). Star NIODC = National Iranian Oil Refining Oil Refinery (NIODC). Kermanshah Refinery and Distribution Company. (NIODC). Bandar Abbas Refinery (NIODC).

Production 1.2 million bbl per day [67]. Three more refineries under construction, with a combined capacity Production 1.35 million bbl per day [76]. of 0.45 million barrels per day.

46 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

Country. Details.

Zawiya Refinery (NOC). Ra’s Lanuf Refinery (NOC). El-Brega Refinery (NOC). Sarir Refinery (AGOC). Tobruk Refinery (AGOC).

Libya. NOC = .

Refining capacity 0.38 million bbl per day [66].

Production 1.2 million bbl per day [67].

AGOC = Arabian Company.

Skikda Refinery (Sonatrach, HQ in Algiers). Adrar Refinery (CNPC, Sonatrach). Algiers Refinery (Sonatrach). Arzew Refinery (Sonatrach). Hassi Messaoud Refinery (Sonatrach). Algeria. CNPC = China National Refining capacity 0.56 million bbl per day [75]. Petroleum Corporation. Production 1.35 million bbl per day [76].

Abu Dhabi Refinery (Abu Dhabi Oil United Arab Emirates (UAE). Refining Company). Fujairah Refinery (VITOL Group, HQ in Amsterdam). Refining capacity ~ 0.8 million Ruwais Refinery (Abu Dhabi Oil Refining bbl per day [89]. Company). Jebel Ali Refinery (ENOC). Production 2.8 million bbl per day [90]. ENOC = Emirates National Oil Company.

Qatar*.

Refining capacity > 0.4 million Umm Said Refinery (). Laffan bbl per day [97]. Refinery 1 (Qatar Petroleum, ExxonMobil , TOTAL et al.). Laffan Refinery 2 (Qatar Production 0.6 million bbl per day [98]. Petroleum, ExxonMobil , TOTAL et al.)

* Withdrew from OPEC on 1st January 2019.

47 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

Country. Details.

Nigeria.

Refining capacity 0.45 million Kaduna Refinery (NNPC). Port Harcourt bbl per day [103]. Refinery (NNPC). Warri Refinery (NNPC). Ogbele Refinery (Niger Production 2 million bbl per day [104]. Delta Petroleum Resources Ltd).

Two others under construction one of which, the Dangote Refinery, will have a capacity of 0.65 million bbl per day. Commencement of operation in 2020 hoped for.

Equatorial Guinea. Aspirations for a refinery in with Refining capacity nil [114]. support from PDVSA (Venezuela) [117]. Further comments in the main text. Production ~ 0.2 million bbl per day [115].

Gabon.

Refining capacity 12000 bbl per day [118]. Sogara Refinery. (TOTAL et al.).

Production 0.2 million bbl per day [119]

Pointe Noire Refinery (CORAF: Congolaise de Raffinage, HQ in Brazzaville).

Republic of the Congo.

Refining capacity 21000 bbl per day [122].

Production 0.35 million bbl per day [121].

Indonesia*. Plaju (Musi) Refinery (). Balongan Refinery (Pertamina). Dumai Refining capacity 1.1 million bbl per day [124]. Refinery (Pertamina). Cilacap Refinery (Pertamina). Balikpapan Refinery Production 0.75 million bbl per day [125]. (Pertamina). Sungai Pakning Refinery (Pertamina). Cepu Refinery (Pusdiklat *Withdrew from OPEC in 2008. Migas Cepu). Kasim Refinery (Pertamina).

48 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

Country. Details.

Luanda Refinery (Sonangol and Eni). Angola.

Refining capacity 65000 bbl per day [140].

Production 1.55 million bbl per day [140].

Amuay Refinery, CRP (PDVSA). Cardón Refinery, CRP (PDVSA). Bajo Venezuela. Grande Refinery, CRP (PDVSA). Refining capacity 1.3 million bbl per day [146]. Puerto La Cruz Refinery (PDVSA). Production 2.4 million bbl per El Palito Refinery (PDVSA). San day (2017 figure) [147]. Roque Refinery (PDVSA).

Neither production nor refining in Venezuela CRP = Centro de Refinación de Paraguaná is at full capacity at the present time. = Paraguaná Refinery Complex.

PDVSA = Petróleos de Venezuela S.A.

Ecuador. Esmeraldas Refinery (Petroecuador). Refining capacity 188000 bbl per day [159]. La Libertad Refinery (Petroecuador). Shushufindi Refinery (Petroecuador). Production 0.53 million bbl per day [160].

The Riyadh Refinery, which is in the national capital, came into service in 1973 and its current capacity is 0.12 million barrels per day [3]. Its operator Saudi Aramco has its HQ in Dhahran. The Rabigh Refinery (0.4 million barrels per day) is a joint activity of Saudi Aramco and the Japanese concern Sumitomo. The origins of Sumitomo can be traced to the early 17th Century when its business was metals extraction from their ores [4]. Its petrochemicals range is expansive, and it is reported in [5] that 18 million tonnes of refined products and 2.4 million tonnes of petrochemicals are produced at the refinery annually. It ought to be possible to do an approximate mass balance on this, invoking the ‘7 barrel per metric tonne rule’ (Chapter 1).

Total annual amount of products = 20.4 million tonnes = 143 million barrels resulting from (143/1.07) = 134 million barrels of crude oil = 0.37 million barrels daily.

The approximation that the weight of the petrochemicals is the same as that of the oil from which they are derived is not difficult to justify. Cracking and hydrogenation involve

49 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries respectively loss and gain of hydrogen atoms, which have only 1/12th the mass of a carbon atom, so the mass of the hydrocarbon before and after such treatment is not strongly affected. Noting that the refinery capacity is 0.4 million barrels per day, the mass balance closes at 7.5% on the low side. Before hypothesising that this is due to residues which have not been converted to equivalents of fractions, it would be prudent to fine-tune the ‘7 barrel per metric tonne rule’ from knowledge of the densities of the particular crudes received by the refinery. To this can be added the factors causing uncertainties in ‘capacities’ discussed in Chapter 1 as well as the issue of refinery gain. For fractionation alone this is 7%. Residuum conversion processes are chemical and the 7%, which is for the physical process of distillation, cannot be applied to the products of that as it could be if residuum conversion was simply the equivalent of fractionation at higher temperatures, volume being a function of state.

The Jeddah Refinery, also a Saudi Aramco refinery, ceased operations in 2017 [6]. Its capacity was 0.1 million barrels per day. Ras Tanura Refinery has the very large capacity of 0.55 million barrels per day and receives crude oil from the Ras Tanura oil terminal, which is the largest such terminal in the world. Co-existence of the refinery and the terminal is noted in [7]. The refinery has been in operation for over seventy years [8]. Its initial capacity was 60 million barrels per day. Its expansion has been made possible by the fact that it is in a

50 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries sparsely populated area: the population of the city of Ras Tanura is 74000. That of Jeddah is 3.4 millions, and that that restricts further expansion was a factor in the closure of the refinery there described above. The Saudi Aramco Yanbu Refinery has a capacity of 0.4 million barrels per day [9]. SAMREF stands for Saudi Aramco and Mobil Yanbu Refining Company [10]. Its refinery at Yanbu can process 0.4 million barrels per day. Jubail Refinery also has a capacity of 0.4 million barrels per day. In 1933 Jubail was the scene of the first exploration for oil in Saudia Arabia (which had taken that name only the previous year). The refinery there, which commenced production as recently as 2014 [11], has a capacity of 0.4 million barrels per day and its operator is Satorp (Saudi Aramco TOTAL Refining and Petrochemical). The refinery takes Arabian Heavy crude, API gravity 27.4 (density 890 kg m-3) [12]. Some of its refined products are exported, including jet fuel to the UAE and gasoline to Kuwait [13]. There is another refinery at Jubail called SASREF (Saudi Aramco Shell Refinery) which has a capacity of 0.3 million barrels per day [14]. YASREF stands for Yanbu Aramco Refining Company, and its refinery in Yanbu on the Red Sea coast has a capacity of 0.4 million barrels per day [15]. It uses Arabian Heavy crude and is directed at transportation fuels, yielding 87000 barrels per day of diesel and 105000 barrels per day gasoline. This obviously involves breaking down the heavier material, and ~6000 tonnes per day of petroleum coke remains for domestic or international sale [16]. The Jazan Refinery is the most recent refinery in Saudi Arabia to come into service (2016) [17]. It receives crude oil at a terminal capable of accommodating VLCCs [18]. Refined products will be used domestically.

The presently low refining capacity of Iraq (next row of the table) is of course due to war. The Basrah Refinery has a capacity of 0.14 million barrels per day [21]. Expansion is taking place there [22]. The Daurah Refinery has a capacity of 0.1 million barrels per day [23]. The oilfield at Kirkuk has been producing since the 1930s [24]. The refinery there is recent and its initial production was set at 70000 barrels per day [25]. It will supply refined products to the ‘semi-autonomous region of Kurdistan’. The Baiji Salahuddin Refinery was once the largest refinery in Iraq, producing at 0.3 million barrels per day. It was taken out of service in 2014 because of war damage, and is now back in production and performing at something like a third of its nameplate capacity [26]. Plate 3.1 is an illustration of this refinery.

51 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

Plate 3.1 Baiji Refinery in Salahuddin province. Image taken from:https://www.iraqinews.com/iraq-war/isis-controls-80-baiji-refinery-salahuddin-province-says- us-official/

In view of what has been said in Chapter 1, it is possibly advisable to see a nameplate capacity as being for a particular crude.

Baiji North Refinery has a capacity of 0.15 million barrels per day [27]. The Khanaqin/ Alwand Refinery has also been a victim of war and is currently operating at 10000 barrels per day [28]. In Khanaqin is the Naft Khana oilfield which extends over the border with Iran where it is known as the Naft Shahr oifield (see the discussion of the Kermanshah Refinery in Iran). The Samawah Refinery went out of operation for fourteen years after the Gulf War, and its current production stands at 27000 barrels per day [29]. There are proposals for a new refinery at that location with a capacity of 70000 barrels per day [30]. The Haditha Refinery in northern Iraq is also in ‘re-opened’ status [31] and produces 16000 barrels per day. The Muftiah Refinery is near Basra and produces 4500 barrels per day [32]. It receives local crude oil by pipeline from the Basra Refinery [33]. The Gaiyarah Refinery has a capacity of 16000 barrels per day [34] and has terminals for the reception of crude oil and the despatch of refined products. It takes oil from the Gaiyarah oilfield. This oil is heavy (API gravity 15 degrees, density 965 kg m -3) and also sour and that is the reason for the low production. The Erbil Refinery is in Kurdistan and is a relatively large refinery, 0.1 million barrels per day [35], and its operator is the KAR Group who are a Kurdish company.

Not surprisingly, there are a number of refineries under construction in Iraq [36]. They include one at Port of Fao a.k.a. Al Faw Grand Port, a Persian Gulf location. This refinery is expected to have a capacity of 0.3 million barrels per day. Refineries of half that capacity

52 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries are planned for Nassiriya and for Anbar province [36]. The locations are respectively on the southern bank of the Euphrates and in western Iraq. Nassiriya will be a grass roots refinery, that is, a newly constructed refinery and not an extension or recommissioning of an existing one [37]. It will take crude oil from the Nassiriya Mishrif field, where production began in 2009 [38]. The API gravity of this crude oil is 27.8 degrees. That will sometimes be blended with crude oil from Basra. Sometimes light and heavy crudes are blended to a target density or viscosity. Basra crude is itself fairly light, and the reason for the blending with Nassiriya Mishrif is more likely to be extension of supply. The refinery at Anbar will also be grass roots [39]. A refinery of capacity 0.1 million barrel per day is planned for Mosul in Northern Iraq.

The refining capacity of Kuwait (next row) includes that of the Al Zour Refinery which, as noted, is under construction. The Mina Al-Ahmadi Refinery has a capacity of just under half a million barrels per day [42]. Natural gas is processed there in a quantity of up to 2458 million cubic feet per day [42]. There is major production of LPG at the refinery. There is also condensate [43]. Here condensate does not have the simple meaning that it has say for gas from one of the condensate fields off the coast of East Anglia. There it means hydrocarbons up to about C5 6 co-existing with the methane in non-associated natural gas. At such a place as the Mina Al-Ahmadi Refinery where there are many simultaneous operations involving crude oil and associated gas, condensate means any product conforming in composition range and in API gravity range to condensate in the sense explained in the previous chapter. In concluding this discussion, the oilfield glossary will be drawn on. It states [44] that condensate is ‘a low-density, high-API gravity liquid hydrocarbon phase that generally occurs in association with natural gas’, and clearly this definition allows for other sources of condensate. (One might question whether ‘association’ is the best word here: ‘comprises the heavier components of natural gas’ might have been better as the condensate is in the same phase as the methane in the reservoir.)

The Al Zour Refinery is a grass roots refinery and its capacity will be 0.615 million barrels per day [45]. Start-up before the end of 2019 is now thought to be improbable. A significant proportion of its products – 225000 barrels per day of refined product – will be used in the thermal generation of electricity within Kuwait. It is straightforward to show that this would, with a steam turbine or with a gas turbine, generate about 5 GW of electricity. Al Zour will be the largest refinery in the Middle East and amongst the largest refineries in the world.

The Abadan Refinery in Iran (next row of the table) commenced operations in 1912 and was for a period the biggest oil refinery in the world [48]. It experienced major war damage in 1980. Modernisation has recently been taking place at the refinery, including replacement of a distillation column which was installed over 70 years ago [49]. The Arvand Oil Refinery is situated in the Arvand Free Zone. It has a capacity of 0.12 million barrels per day and

53 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries receives heavy (low API gravity) crude oil. The Arak Refinery has a capacity of 0.25 million barrels per day [50] and receives crude oil from the Ahwaz field in south west Iran. This is sometimes blended with other oils of Iranian origin for refining. At the Teheran Refinery (where there was a fatal fire in 2017 [51]), the capacity is 0.2 million barrels per day [52]. It too receives crude oil from Ahwaz, as well as from the Marun and Shadegan oilfields in Iran. It receives some crude oil from the Former Soviet Union.

The ‘Caspian Littoral States oil swap’ was alluded to briefly in section 2.2 of this book. Crude oil so swapped has been received at Iranian refineries including Teheran. The Caspian Littoral States are Iran, Azerbaijan, Turkmenistan, Kazakhstan, and Russia. They all have a coast with the Caspian Sea as shown in the map below.

.

54 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

Map showing the Caspian Littoral States. Image taken from https://www.tehrantimes.com/news/415944/Iran-restarts-oil-swaps-with-Caspian- states-after-7-year-hiatus

Under the ‘swap’ arrangement, Iran receives oil from the Caspian region at its port of Neka on its Caspian coast. These go to Iranian refineries as noted, and in return an equivalent amount of Iranian oil is despatched from a location on Iran’s coast with the Persian Gulf to purchasers of Caspian oil. The distance from Neka to the Gulf coast of Iran is of the order of 1000 km, so the swap eliminates the need for the Caspian oil to be conveyed this distance. Infrastructure is in place for daily swaps of up to half a million barrels [53]. The Tehran Refinery receives from crude oil from Neka along the Sari-Rey pipeline [54].

The Ishafan Refinery also receives from Shadegan and Marun, and can refine up to 0.37 million barrels per day [55]. Expansion to beyond that is under way with the installation of new refining capability [56]. The Tabriz Refinery began operations in 1978 [57]. Having a capacity of > 0.1 million barrels per day, the refinery receives domestic crude oil by pipeline from Ahwaz as well as Caspian oil by the Sari-Rey pipeline.

The Shiraz Refinery is a condensate refinery, with a capacity of 120000 barrels per day [58] . The condensate, having been stripped from natural gas from the South Pars field, is in its origin similar to that from the fields off eastern England discussed previously. The condensate is conveyed to the refinery by pipeline from Asaluyeh. The Lavan Refinery is at an island

55 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries location in the Persian Gulf and it receives oil from three offshore fields in the Gulf. It has a capacity of 55000 barrels per day [59] of crude oil. It too receives condensate from the South Pars gas field, in a quantity of 20000 barrels per day. The Persian Gulf Star Oil Refinery receives condensate only, from which it produces gasoline [60]. The Kermanshah Refinery in western Iran is undergoing upgrading which will bring its daily capacity to 20000 barrels per day [61]. It receives crude oil from sources including Ahwaz. It also receives from the Naft Shahr field which, as noted above, extends over the border with Iraq. The Bandar Abbas Refinery has a capacity of > 0.3 million barrels per day [62]. Like several of the other refineries featuring in this part of the book, it receives condensate as well as crude oil [63]. Refinery operations in Iran have been focused on making the country self-sufficient in gasoline [64]. Iran imported 40 million barrels of gasoline in 2017 [64]. That is the motive for refining condensate, and a comparison can be made with the fact that traditionally light crudes rich in gasoline are more saleable than heavy ones containing less gasoline. This point is developed in Chapter 1. Even so a great deal of the condensate originating in Iran is exported [65] instead of being refined locally.

The Zawiya Refinery in Libya (next row of the table) has a capacity of 120000 barrels per day [68]. There have recently been security issues at the refinery [69]. The El-Brega Refinery has a capacity of 8000 barrels per day [70]. In March 2018 there was an explosion there [71]. The fire was at the methanol plant, where petroleum material is converted to methanol via syngas. The Sarir Refinery is a small one at 10000 barrels per day [72]. It receives oil of 37 degrees API from the Sarir field. The Tobruk Refinery, which is on the Mediterranean coast, can refine 120000 barrels of crude oil per day [73]. It receives crude from the Sarir and Messla fields combined as a blend [74]. The blend has an API gravity of 38.9 degrees, signifying a density of 830 kg m-3. The point is made in [74] that 38.9 degrees is almost exactly the API gravity of Brent crude.

The capacity of the Skikda Refinery in Algeria (below) is > 0.3 million barrels per day [77] making it the largest oil refinery in Africa. It receives light crudes from within Algeria. Its Nelson complexity index is a modest 3.9 [78]. That is because heavy products are sold as fuel oil instead of having plant to convert them to distillate equivalents as at several of the refineries discussed in this book.

56 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

Plate 3.2. The Skikda Refinery in November 2018. Image taken from [79].

The Adrar Refinery receives condensate from the Touat gas field and has a capacity of 12500 barrels per day [80]. The Algiers Refinery can refine 100000 barrels per day of crude oil [81]. Over the period 2012 to 2015 this refinery underwent improvements (‘rehabilitation’ [82])

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57 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries which raised its capacity. Plate 3.3 below shows lifting of a distillation column in readiness for installation of a new one [83]. The removed column weighed 188 tonnes. The new column will enable the refinery to produce gasoline conforming to EU specifications (see also the discussion below of the Arzew Refinery).

Plate 3.3. Lifting of a column at the Algiers Refinery during modernisation. Image taken from [83].

Arzew Refinery has a capacity of 60000 barrels per day [84]. It receives Saharan blend, a light crude (API gravity 45.3 degrees), which is conveyed 419 km along the Haoudh El Hamra-Arzew Oil pipeline [85]. The refinery will soon manufacture 200000 tonnes per year of methyl tertiary butyl ether (MTBE) for distribution to refineries throughout Algeria for use as an octane enhancer [86]. This will enable the refineries to produce fuel of Euro 5 quality. The use of benzene or other aromatics for this purpose can cause particulate emissions exceeding those permitted by the Euro 5 specs. The Hassi Messaoud Refinery has a capacity of 27000 barrels per day [87]. It receives crude from an oilfield of the same name where there is associated gas [88]. There is a compressor at Hassi Messaoud by use of which 120900 tonnes of natural gas will be despatched annually for pipeline distribution [87]. The monetary value of this quantity of natural gas is of the order of $US30 million.

58 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

The Abu Dhabi Refinery in the UAE (next row of the table), capacity 85000 barrels per day, receives condensate as well as crude oil. Fujairah Refinery can refine a similar daily amount [91]. The Ruwais Refinery is much larger at 0.4 million barrels per day [92]. It takes condensate as well as crude oil. It receives for refining crude oil from sources including the Murban Bab offshore oilfield. Crude from this source is both sweet and light. Ruwais also receives crude from the Upper Zakum oilfield which is 80 km offshore Abu Dhabi. It is expected that supply of this will eventually totally replace supply of Murban crude and because it is denser than Murban and has more residue this will require a means of converting heavy material to light [93], a recurrent theme in this book. When a crude oil is fractionated the sulphur content becomes concentrated in the higher boiling components [94] and this can make for difficulties with such conversion. It is intended at Ruwais that atmospheric residue desulfurization (ARDS), catalytic sulphur removal prior to residuum conversion, will be used to address this [95]. Internationally, sulphur removed in refinery operations becomes ‘refinery sulphur’, a valuable product. A major part of the world’s supply of elemental sulphur is ‘refinery sulphur’, and to that can be added sulphur recovered from the sweetening of natural gas. The Jebel Ali Refinery entered service in 1999 and is undergoing expansion which will take its capacity to 0.21 million barrels per day [96]. After expansion the refinery will have storage space for almost 3 million barrels of refined product some of which will go to the domestic market and some to the export market.

The Umm Said Refinery in Qatar (next row of the table) has been in operation for over 65 years [99]. Its initial capacity was 600 barrels of oil per day. That was at a time (1953) when international oil production was 13 million barrels per day. In 1977 there was an explosion there which claimed six lives [100]. It was caused by failure of a tank containing refrigerated propane. At Umm Said is a terminal where oil from Qatar’s onshore Dukhan field is sent, either for conveyance to the refinery or for export [101]. Laffan 1 and 2 refineries are for condensate from the Qatar North field [102]. The matter of the identity of condensate with light crude has featured in the discussion of Kuwait and in the discussion of the Netherlands. It will be continued below in the discussion of Nigeria.

Can an OPEC country incorporate the production figures for condensate with those of crude oil in reporting production or claiming conformity with quotas? There is no unequivocal answer, and the point is addressed in some detail in [105]. An important role of OPEC is avoidance of oversupply, which is why it imposes quotas on member countries. Does a combined oil and condensate quantity in excess of the quota signify non-compliance? Or is the quota for crude oil only? This question has been asked recently in connection with Nigeria [106]. Crude oil and condensate are sometimes mixed together, for example to control the viscosity [107], but OPEC quotas are for amounts produced having had no processing such as mixing. Possible arbitrariness of distinction is alluded to in [106].

59 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

The Kaduna Refinery in Nigeria has a capacity of 0.1 million barrels per day. It was idle for several months in 2018 [108]. The Port Harcourt Refinery, which has a capacity about twice that of Kaduna, is in an extremely poor (‘shocking’ [109]) state of repair. The nameplate capacity of the Warri Refinery is 0.125 million barrels per day, and it has recently been operating at 63% of that [110]. The capacity of the Ogbele Refinery is > 5000 barrels per day [111] and growth of the refinery is expected. Commissioning of the refinery was in 2011, and its products include diesel for the local market. The Dangote Refinery is near Lagos. It will have one distillation unit, so there will be a single influx stream of crude oil for the entire refinery. That makes it by definition a single-train refinery, and it will be one of the largest such in the world [112]. (See also the discussion of the Phillips 66 Alliance Refinery in a later chapter.) The refinery will take crude from particular suppliers and return the refined products to them [113]. There is no oil refining at all in Equatorial Guinea, which has been an OPEC country only since 2017 [116]. In the hoped for joint undertaking with PDVSA (Petróleos de Venezuela, S.A.), the fact that Equatorial Guinea and Venezuela both have Spanish as the primary language is seen as being auspicious.

The refining capacity given for Gabon (next row of the table) is about half the nameplate capacity of the sole refinery there, the Sogara Refinery. For reasons including the effects of civil unrest, the refinery is operating well below nameplate capacity [118]. It receives oil from the Rabi Kounga oilfield, which is close to the Equator. That the refinery, which came

60 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries into operation in the 1960s, lacks a means of converting the residue to lighter products is ruefully noted in [119]. The residue from the refining is therefore sold on for processing elsewhere. It is first taken to storage tanks in the national capital Libreville by the tanker vessel Cap Ferret, which can hold only about 70000 barrels of hydrocarbon inventory. All of this sounds unsatisfactory, and that there are plans for a new refinery is not surprising [120]. The target production figure is 60000 barrels per day.

The Republic of the Congo is the most recent entrant (2018) to OPEC. Pointe Noire Refinery is the sole refinery there. Its capacity is below national requirements of gasoline, jet fuel and diesel, and this necessitates the import of some refined petroleum material [123]. Moving on to the refineries in Indonesia, the Plaju (Musi) Refinery (next row of the table) is in Sumatra. Its capacity is 0.13 million barrels per day and it receives imported as well as domestic oil [126]. The Balongan Refinery is in West Java, and receives imported oil from numerous sources including Gabon and Australia [127]. There was a fire at the refinery in early 2019 [128]. It was possibly started by welding, an example of ‘hot work’. The Dumai Refinery has a capacity of 170000 barrels per day [129] and uses Duri crude and Minas crude. The latter is heavy and the former light; both originate at Sumatra. This refinery is elderly, having been in service when Sumatra was part of the Dutch East Indies which was a major supplier of oil to pre-WW2 Japan. The Cilacap Refinery, which is on Java, processes 0.35 million barrels per day of oil [130]. Having begun operations in 1974, the Cilacap Refinery has undergone a number of enlargements and upgradings. The most recent development is an RFCC - residue fluid catalytic cracking - unit for converting residue to light material, commissioned in 2015 [131]. This will produce gasoline of Research Octane

Number (RON) > 93 which is also compliant with EU requirements for emissions of NOx,

SO2 and particulate. The difference between FCC and RFCC is one of degree. RFCC can be applied to heavier material than FCC and uses higher temperatures, and it is possible for RFCC to eliminate the need for vacuum distillation. There is a return to this point when the Cadereyta Refinery in Mexico is discussed in a later chapter. The Balikpapan Refinery in East Kalimantan has similarly been equipped with RFCC [132]. The capacity of the refinery is 90000 barrels per day. This refinery features briefly in the next chapter. It is possible for a refinery to have both FCC and RFCC. One example of this is the CNPC Lanzhou Refinery (Chapter 9).

The Sungai Pakning Refinery is a small one (50000 barrels per day) and over 60 years old, lacking a means of residuum conversion. Even so it receives heavy crude, and > 50% of the crude oil weight becomes Low Sulfur Waxy Residue (LSWR) [133]. This practice has been prevalent at Indonesian refineries [134] and the LSWR is exported. Its uses include blending with bunker fuel. It has been reported that Japan, Thailand and South Korea have experienced a reduction in LSWR availability from Indonesia, and this is attributed to retention of the LSWR by Indonesia for its own use [135]. It is reasonable to conjecture

61 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries that as Indonesian refineries have gone to RFCC this has been a factor in reduced amounts of LSWR. The Cepu Refinery in East Java, which has been described as a ‘mini refinery’, can refine 3800 barrels per day [136]. The Kasim Refinery in West Papua has a capacity of 10000 barrels per day [137]. It performs distillation only [138] so one expects it to have a Nelson complexity index not far in excess of unity. The refinery is expressly excluded from Pertamina’s refinery upgrading budget [139]. That and its location in West Papua do not augur well for its continued existence.

The Luanda Refinery in Angola (next row of the table) has a capacity of 57000 barrels per day [141] and has been in operation for sixty years. It receives crude from sources including the Palanca oilfield (offshore Angola, API gravity 37.2 degrees) and the Kuito oilfield (also offshore Angola, API gravity 19.7 degrees). It will shortly undergo modifications to increase the gasoline output by conversion of the heavy material. Note that one of the crudes received is itself very heavy [142] and therefore not in distillation as productive of gasoline as a light crude. There are plans for a grass roots refinery at Cabinda, part of Angola though separated from the rest of it by a strip of land belonging to the Democratic Republic of the Congo. The target capacity of this refinery is 60000 barrels per day [143]. There is at Cabinda at present only a topping refinery, which can receive up to 16000 barrels per day for basic distillation, fractions from which are passed along for processing into final products. It is operated by Chevron [144].

Moving on to Venezuela (next row of the table), the CRP comprises Amuay Refinery, Cardón Refinery and Bajo Grande Refinery. At Amuay there was a fire in 2012 in which 41 people died [145]. The combined nameplate capacity of the refineries in the Paraguaná Refinery Complex is almost a million barrels per day [148]. The three member refineries were all originally independent and were combined into the CRP. CRP has recently been operating at well below nameplate capacity, largely because of condition decline [149]. Recently repair work there has been carried out by volunteers [150]. See Plate 3.4 below.

Plate 3.4. Volunteers from the Workers’ Productive Army who have carried out maintenance and repair work at the Paraguaná Refinery Complex in Venezuela. Image taken from [150].

62 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

The Paraguaná Refinery Complex has received crude oil from Lake Maracaibo and from the Orinoco Belt. Maracaibo crudes have API gravities of > 22 degrees signifying a density not more than 920 kg m-3 [151]. Crudes from the Orinoco Belt have API gravities down to 9 degrees, signifying crude oil as dense as or denser than water [152]. One would expect that in the processing of such crudes residuum conversion would be very important. Totally consistent with this is the fact that the Amuay has a ‘flexicoker’ capable of processing 64000 barrels per day [153]. FlexicokingTM is a process originated by ExxonMobil for residuum conversion. It takes place in a fluidised bed. The flexicoker at Amuay is the biggest in the world. Flexicoking features in other parts of this book.

The Puerto La Cruz Refinery also receives crude oil from the Orinoco Belt [154]. It is a deep conversion refinery [155], a term which was introduced in the previous chapter in the discussion of the TOTAL Antwerp Refinery. Such a refinery will have a Nelson complexity index of at least 12. One must avoid the view that deep conversion refineries are necessarily the most productive and beneficial. There is the obvious point that heavy fuel oil and petroleum coke are valuable products as is base material for lubricants, and in producing these a refinery with deep conversion capability will not draw on it. Sometimes such a refinery will draw on its deep conversion capability when there is a need to increase amounts of gasoline and kerosene and perhaps when receiving a more than usually dense

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63 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries crude. An example of a refinery where some of the residue is converted into saleable materials instead of being broken down is the Caltex Yeosu Refinery in Korea, the fourth largest in the world, which is discussed in Chapter 8. The El Palito Refinery in Venezuela has a capacity of 280000 barrels per day and receives crude oil from Orinoco [156]. The PDVSA San Roque Refinery has a capacity of only 5800 barrels per day [157] and is set up for distillation only. There has been some emphasis on wax residue at this refinery. It has produced food grade paraffin wax as well as wax for candles and polishes [158].

The Esmeraldas Refinery in Ecuador (next row of the table) has a capacity of 0.11 million barrels per day and is undergoing maintenance and expansion. That includes the FCC, which had become unreliable [160]. The La Libertad Refinery is rated at 45000 barrels per day [161]. The Shushufindi Refinery is a topping refinery [162]. All three refineries in Ecuador have needing guarding against guerrilla attack [163]. Also under guard is the Balao oil shipping port near the town of Esmeraldas, from which oil is exported.

3.2 SUPPLEMENTARY COMMENTS The sum of all of the refining capacities in the table for the OPEC countries is 12.3 million barrels per day. It is intended that by 2021 this will have increased to 13.3 million barrels per day [164]. The expansion will be met partly by expansion of existing refineries and partly by new ones. Three examples in the second category follow. A refinery is planned for location in Manabi Province in Ecuador [165]. An ambitious capacity of 0.3 million barrels per day was originally hoped for. Manabi is on the Pacific coast of Ecuador and it is intended that refined products from it will be exported to Asia. In Algeria, the proposed Tiaret Refinery will have a capacity of 0.1 million barrels per day [166]. In the previous section the point was made that major amounts of crude oil from Algeria are taken to Sicily for refining, and the refined products returned to Algeria. Obviously the Tiaret Refinery will help eliminate the need for that. Lobito, Angola is expected to be the scene of a grass roots refinery. It is a coastal location and will receive oil from offshore Angola [167].

3.3 NON-OPEC MIDDLE EAST COUNTRIES Jordan has borders with Saudi Arabia and with Iraq, both OPEC countries. Bahrain is the Persian Gulf. Each of these has a single large oil refinery, and Israel, which has a border with Jordan, has two major oil refineries. Yemen, which has a border with Saudi Arabia, has two refineries. These countries will be discussed in turn.

64 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

Zarqa Oil Refinery (Jordan Petroleum Refinery Jordan. Company), capacity 105000 barrels per day [168].

Sitra Refinery (Bahrain Petroleum Company a.k.a. BAPCO) Bahrain. Refinery, capacity 230000 barrels per day [169].

Ashdod Refinery (Paz Oil Company), capacity 90000 barrels per day Israel. [170]. Haifa Refinery (BAZAN), capacity 196000 barrels per day [171].

Aden Refinery (Aden Refinery Company), capacity 150000 Yemen. barrels per day [174]. Marib Refinery (Yemen Hunt Oil Company), capacity 10000 barrels per day [175].

Homs Refinery (Homs Refining Company), capacity 120000 Syria. barrels per day [176]. Banias Refinery (Banias Refinery Company), capacity 125000 barrels per day [177].

The Zarqa Oil Refinery in Jordan (near Amman) has catalytic reforming, naphtha hydrotreating, vacuum distillation and FCC. It also produces asphalt. It receives crude oil from Iraq. The BAPCO Refinery gets about a fifth of its crude oil from an onshore field in Bahrain and the balance from the offshore Abu Safah field. It is the oldest refinery in the Persian Gulf region.

The Ashdod Refinery in Israel is well equipped with post-fractionation facilities having, for example, vacuum distillation, FCC and visbreaking. Its Nelson complexity index is 7.5 [170]. The Haifa (BAZAN) refinery is similarly well set up, and has a Nelson complexity index of 7.4 [171]. Israel imports large amounts (~ 0.3 million barrels per day) of crude oil, about three quarters of it from Kurdistan. The promoters of the formation of the State of Israel in 1948 would have done well to put a stable oil supply high on the agenda, yet such stability was precluded by the geographical location and proximity to Arab countries. The two refineries in Israel, being ‘versatile’ as reflected in their Nelson complexity indices, make for flexibility of crude processing and this to a degree mitigates supply issues.

The Ashdod Refinery commenced operation in 1973, the year of the oil crisis which is described in [172]. By contrast the Haifa Refinery predates the State of Israel, having come into operation in 1939. On 30th December 1947, Zionist paramilitary forces aimed grenades at Arab workers at this refinery killing six of them and injuring 42 more [173], and there were many deaths and injuries in the escalation resulting from the Arab response. This became known as the Haifa Oil Refinery massacre.

65 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

The Aden Refinery in Yemen commenced production in 1954 at a capacity 20% lower than the present one [174]. It is a hydroskimming refinery, and uses PlatformingTM. It has received crude from many sources over its 65 year life The Marib Refinery in Yemen is a topping refinery. The Homs Refinery in Syria, which commenced operation exactly 60 years ago, receives domestic crude oil of varying API gravity [178]. The Banias Refinery is the newer of the refineries in Syria, postdating Homs by about 20 years. It too uses domestic crude oil.

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[128] https://www.rambuenergy.com/2019/02/pertaminas-balongan-refinery-facility-caught- by-fire/ [129] http://abarrelfull.wikidot.com/dumai-refinery [130] https://www.hydrocarbons-technology.com/projects/pt-pertamina-cilacap-refinery- upgrade-project-indonesia/ [131] https://www.rambuenergy.com/2015/09/pertaminas-rfcc-refinery-project-in-cilacap- enters-commissioning-phase/ [132] https://www.hydrocarbons-technology.com/projects/balikpapan-refinery-expansion/ [133] https://www.industryabout.com/country-territories-3/120-indonesia/oil-refining/304- pertamina-sungai-pakning-oil-refinery [134] https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/lswr/ [135] https://www.spglobal.com/platts/en/market-insights/latest-news/oil/070816-asia-low- sulfur-waxy-residue-market-seen-tightening-in-july-on-dearth-of-indonesian-exports [136] https://www.industryabout.com/country-territories-3/120-indonesia/oil-refining/305- pusdiklat-migas-cepu-oil-refinery [137] https://www.industryabout.com/country-territories-3/120-indonesia/oil-refining/301- pertamina-kasim-oil-refinery [138] ‘Indonesia Mining, Oil and Gas Industry Export-Import, Business Opportunities Handbook’ Volume 1 ‘Strategic and Practical Information’ LPB Publishing Ltd. (2009) accessible online as an e-book.

72 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

[139] https://www.thejakartapost.com/news/2013/08/30/pertamina-upgrade-aging-refineries. html [140] https://www.export.gov/article?id=Angola-Oil-and-Gas [141] www.sonangol.co.ao/English/AreasOfActivity/Downstream/Pages/Refinery.aspx [142] https://africaoilandpower.com/2019/02/28/luanda-refinery-to-quadruple-gasoline-output/ [143] https://macauhub.com.mo/2018/11/12/pt-construcao-da-refinaria-de-cabinda-em- angola-adjudicada-a-consorcio-united-shine/ [144] http://www.washingtonpost.com/wp-adv/specialsales/spotlight/angola/article12. html?noredirect=on [145] Jones J.C. ‘Hydrocarbon Process Safety: A Text for Students and Professionals’ 2nd Edition Whittles Publishing, Caithness (2014) [146] https://www.eia.gov/beta/international/analysis_includes/countries_long/Venezuela/ venezuela_exe.pdf [147] https://oilprice.com/Energy/Energy-General/Venezuelas-Oil-Production-Could-Fall- Below-700000-Bpd-Next-Year.html [148] https://hyperleap.com/topic/Paraguaná_Refinery_Complex [149] https://www.reuters.com/article/us-refinery-operations-pdvsa-paraguana/top-venezuela- refineries-at-34-percent-of-capacity-union-documents-idUSKBN1CL2T0 [150] https://venezuelanalysis.com/news/14059 [151] http://archives.datapages.com/data/bulletns/1982-83/data/pg/0067/0002/0200/0242.htm [152] http://theoildrum.com/node/7342 [153] https://www.hydrocarbons-technology.com/features/feature-top-ten-largest-oil-refineries- world/ [154] https://www.hydrocarbons-technology.com/projects/puerto-la-cruz-refinery-deep- conversion-project-anzoategui/ [155] https://www.hydrocarbons-technology.com/projects/puerto-la-cruz-refinery-deep- conversion-project-anzoategui/ [156] https://www.ogj.com/articles/2012/07/pdvsa-lets-contract-for-el-palito-refinery- expansion.html [157] https://www.industryabout.com/country-territories-3/268-venezuela/oil-refining/815- pdvsa-san-roque-oil-refinery [158] http://killajoules.wikidot.com/archive:san-roque-refinery-incorporates-technology-to- increase [159] https://www.opec.org/opec_web/en/about_us/148.htm [160] https://af.reuters.com/article/commoditiesNews/idAFL2N1WS0Y1 [161] http://abarrelfull.wikidot.com/la-libertad-refinery [162] http://abarrelfull.wikidot.com/shushufindi-refinery [163] https://www.argusmedia.com/en/news/1663962-ecuador-military-guarding-oil-assets- amid-threats [164] https://www.opec.org/opec_web/en/650.htm

73 OIL REFINING: THE INTERNATIONAL SCENE The OPEC countries and former OPEC countries

[165] https://newsbase.com/topstories/scaled-down-pacific-refinery-project-possibility [166] https://www.mees.com/2013/3/15/refining-petrochemicals/algeria-preparing-tender- for-biskra-and-tiaret-refineries/9a8115c0-8673-11e7-82ec-c1100938ad1c [167] https://www.afrra.org/sites/default/files/newsletter/Sonangol_Refinery%20Presentation.pdf [168] https://www.industryabout.com/country-territories-3/136-jordan/oil-refining/376- jordan-petroleum-zarqa-oil-refinery [169] https://www.reuters.com/article/us-bahrain-oil-refinery-idUSKBN1QR08T [170] http://abarrelfull.wikidot.com/ashdod-refinery [171] http://abarrelfull.wikidot.com/haifa-refinery [172] Jones J.C. ‘OPEC: Its Role and Influence since 1960’ Ventus Publishing, Fredericksberg (2014). [173] https://worldhistoryproject.org/1947/12/30/haifa-oil-refinery-massacre [174] https://mohammedjabr.wordpress.com/economy/aden-refinery/ [175] https://www.industryabout.com/country-territories-3/274-yemen/oil-refining/820- yorc-marib-oil-refinery [176] https://www.industryabout.com/country-territories-3/240-syria/oil-refining/601-homs- oil-refinery [177] http://abarrelfull.wikidot.com/banias-refinery [178] http://wikimapia.org/1832763/Homs-refinery

74 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

4 THE USA AND CANADA

4.1 OVERVIEW OF THE USA All of the states of the US having refineries are listed in the table below, with details of capacity in the right hand column and further information in the main text. Note that the states additional to the lower 48, Alaska and Hawaii, are both well capitalised with refineries.

75 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Saraland Refinery (Shell). Tuscaloosa Refinery (Hunt Refining Co.). Atmore AL Refinery (Goodway Refining). Total capacity 150000 bbl per day [1].

Kenai Refinery (Marathon Petroleum Company). North Pole AK Refinery (Petro Star). Prudhoe Bay Refinery (BP) Prudhoe Bay Refinery (ConocoPhillips). Valdez Refinery (Petro Star).

AR El Dorado Refinery (Delek, HQ in Israel). Smackover Refinery (Cross Oil Refining).

Bakersfield Refinery (Delek). Bakersfield Refinery (Kern Oil & Refining Co.). Bakersfield Refinery (San Joaquin Refining Co.). Benicia Refinery (Valero). Carson Refinery (Tesoro). El Segundo Refinery (Chevron). Golden Eagle Refinery (Marathon, previously Tesoro). Long Beach Refinery (World Energy LLC, previously Delek). CA Los Angeles Refinery (Phillips 66). Los Angeles Refinery (Marathon). Martinez Refinery (Shell). Paramount Refinery (Paramount Petroleum). Richmond Refinery (Chevron). San Francisco Refinery (Phillips 66). Santa Maria Refinery (Greka Energy). South Gate Refinery (Lunday Thagard Co.). Torrance Refinery (PBF Energy). Wilmington Refinery (Valero). Wilmington Asphalt Refinery (Valero).

CO Commerce City Refinery ( U.S.A. Inc.).

DE Delaware City R efinery (PBF).

GA Savannah Refinery (NuStar Energy).

HI Kapolei Refinery (Hawaii Pacific Energy). Hawaii Refinery (Chevron).

Lemont Refinery (Citgo, a subsidiary of PDVSA). Joliet Refinery IL (ExxonMobil). Robinson Refinery (Marathon Petroleum Company). Wood River Refinery (WRB Refining).

IN Whiting Refinery (BP). Mount Vernon Refinery (Countrymark Co-op).

Coffeyville Refinery (Coffeyville Resources). KS El Dorado Refinery (HollyFrontier) McPherson Refinery (CHS Inc.),

Catlettsburg Refinery (Marathon). Somerset Refinery KY (Continental Refining Company).

Alliance Refinery (Phillips 66). (ExxonMobil). Chalmette Refinery (PBF Energy). Convent Refinery (Shell). Cotton Valley Refinery (Calumet Lubricants). Garyville Refinery (Marathon). Krotz Springs Refinery (Delek). Lake Charles Refinery (Calcasieu Refining). Lake Charles Refinery (Citgo). LA Lake Charles Refinery (Pelican Refining). Lake Charles Refinery (Phillips 66). Meraux Refinery (Valero). Norco Refinery (Shell). Port Allen Refinery (Placid Refining). Princeton Refinery (Calumet Lubricants). Shreveport Refinery (Calumet Lubricants). St. Charles Refinery (Valero). St. Rose Refinery (Shell).

MI Marathon Detroit Refinery (Marathon).

MN St. Paul Park Refinery (Marathon). Pine Bend Refinery (Flint Hills Resources).

76 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Pascagoula Refinery (Chevron). Vicksburg Refinery (Ergon). MS Rogers Lacy Refinery (Hunt Southland Refining).

Billings Refinery (Phillips 66). Billings Refinery (ExxonMobil). Calumet MT Montana Refinery (Calumet Lubricants). Laurel Refinery (Cenex).

NV Eagle Springs Refinery (Foreland Refining).

Bayway Refinery (Phillips 66). Paulsboro Refinery NJ (PBF). Perth Amboy Refinery (Chevron).

NM Navajo Refinery (HollyFrontier). Gallup Refinery (Marathon).

ND Mandan Refinery (Marathon). Dakota Prairie Refinery (Marathon).

Canton Refinery (Marathon). Lima Refinery () Toledo OH Refinery (BP/Husky Energy). Toledo Refinery (PBF).

Ardmore Refinery (Valero). Ponca City Refinery (Phillips 66). Tulsa Refinery East and OK Tulsa Refinery West (HollyFrontier). Wynnewood Refinery (Wynnewood Refining).

Bradford Refinery (American Refining Group). Philadelphia PA Refinery (Philadelphia Energy Solutions). Trainer Refinery (Delta Air Lines). Warren Refinery (United Refining Company).

TN Memphis Refinery (Valero).

Baytown Refinery (ExxonMobil). Big Spring Refinery (Delek). Beaumont Refinery (ExxonMobil). Borger Refinery (WRB Refining). Corpus Christi Complex (Flint Hills Resources). Corpus Christi Refinery (Citgo). Corpus Christi East and West Refinery (Valero). Deer Park Refinery (Shell). El Paso Refinery (Marathon). Galveston Bay Refinery (Marathon). Houston Refinery (Lyondell). Houston Refinery (Valero). TX Independent Refinery (Independent Refining). McKee Refinery (Valero). Nixon Refinery (Blue Dolphin). Pasadena Refinery (). Port Arthur Refinery (TOTAL). Port Arthur Refinery (Motiva Enterprises). Port Arthur Refinery (Valero). San Antonio Refinery (Calumet Lubricants). Sweeny Refinery (Phillips 66). Texas City Refinery (Valero). Three Rivers Refinery (Valero). Tyler Refinery (Delek).

North Salt Lake Refinery (Big West Oil). Salt Lake City Refinery UT (Chevron). Salt Lake City Refinery (Marathon). Woods Cross Refinery (HollyFrontier). Woods Cross Refinery (Silver Eagle Refining).

Shell Anacortes Refinery (Shell). Marathon Anacortes Refinery (Marathon). Cherry WA Point Refinery (BP). Ferndale Refinery (Phillips 66) Tacoma Refinery (TrailStone).

WV Newell Refinery (Ergon).

Superior Refinery (Husky Energy). WI Currently out of service because of fire and explosion damage. See main text.

Cheyenne Refinery (HollyFrontier). Douglas Refinery (Genesis Energy). Evanston WY Refinery (Silver Eagle Refining). Sinclair Casper Refinery (Sinclair Oil). Sinclair Refinery (Sinclair Oil). Newcastle Refinery (Wyoming Refining Company).

The abbreviations for the respective states are those from ISO 3166: Country codes and codes for their subdivisions. 77 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

The Saraland Refinery (below), as well as producing fuels, supplies Shell Chemicals with olefin feedstock [2]. That is where the heavy material is diverted, so there is no residuum conversion at this refinery.

Plate 4.1. Saraland Refinery in Mobile AL. Image taken from [2].

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78 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

The capacity of the Tuscaloosa Refinery is 72000 barrels per day, about 10% lower than that of Saraland. ‘Residuum conversion’ has made several appearances in this book. At Tuscaloosa naphtha, the fraction between gasoline and kerosene in boiling range, is converted to gasoline blendstock by reforming [3], a less vigorous process than cracking. This uses the Continuous Catalytic Reforming (CCR) Platforming™ Process developed by Honeywell [4] which is widely applied, for example at the Balikpapan Refinery in Indonesia which features in the previous chapter [5]. ‘Reforming’ is of course a general term for a process effecting a change in composition. The CCR Process can be applied not only to making gasoline but to making other products from oil, e.g. jet fuel as at the Balikpapan Refinery in Indonesia [5] (see previous chapter). ‘Platforming’ in this sense is also a general term: it simply means ‘platinum reforming’, and was coined 70 years ago. Another Honeywell process is Polybed™ for removal of hydrogen from process streams. This is outlined later in the book with the Haldia Refinery in West Bengal as an example. Atmore, capacity 4000 barrels per day, is a topping refinery [6].

Moving on to the refineries in Alaska, the Kenai Refinery processes 42000 barrels per day of oil from the Cook Inlet (offshore, currently being decommissioned [7]) and the Alaska North Slope. Through a 68 mile pipeline the refinery supplies Anchorage International Airport and the Port of Anchorage. The Petrostar North Pole Refinery, located in the town of North Pole fourteen miles from Fairbanks, has a capacity of 22000 barrels per day [8].

The Flint Hills Resources Refinery in North Pole ceased operations in 2014 [9]. One reason for the closure of the refinery, which commenced operations in 1977, was contamination of the ground occupied by the refinery and its spread beyond the refinery. One of the contaminants is sulfolane:

which is used as a solvent, notably for butadiene, having been developed as a solvent for that by Shell. There is a return to sulfolane in Chapter 11 when the Petron Bataan Refinery in the Philippines is described. The BP Prudhoe Bay Refinery is a topping refinery processing 15000 barrels per day. It is referred to in [10] as a COTU: crude oil topping unit. The ConocoPhillips Prudhoe Bay Refinery performs atmospheric distillation only [11]. The Valdez Refinery, located in a town of the same name, refines 60000 barrels per day of crude oil from the Alaska North Slope [12]. It produces ultra-low sulphur diesel (ULSD) in both marine/highway grade and Arctic grade. The most important difference is in the

79 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada cloud point, at which solid starts to deposit. This obviously has to be very low in Arctic grade and cloud points < -50oC are possible [13].

The El Dorado Arkansas Refinery has a capacity of 80000 barrels per day [14]. It receives Arkansas crudes, West Texas crudes and domestic offshore crudes [15]. In February 2019 there was an injury-free fire at this refinery [16]. The Smackover Refinery in AR is a much smaller one than El Dorado, 7500 barrels per day [17], but comparison with El Dorado is not sound as Smackover Refinery is not a conventional refinery producing gasoline, diesel and so on. Smackover Refinery, which is 100 miles from Little Rock, specialises in naphthenic base oils a.k.a. pale oils [18]. Manufacture of these is by distillation naphthenic crude oil, crude oil with a high cycloalkane content. These are used in the manufacture of products including automatic transmission fluids.

Moving on to California (next row of the table), we note that this state has a refining capacity of 2 million barrels per day [19]. That is across nineteen refineries, giving an average refinery capacity of 0.1 million barrels per day. Anticipating the later discussion, the biggest refineries in California are El Segundo, Carson and Richmond, each at around a quarter of a million barrels per day. The three refineries in Bakersfield are discussed together below.

Capacity 70000 bbl per day [20]. Delek Bakersfield Refinery. No activity since 2013.

Supply of gasoline and diesel Kern Oil & Refining Co. Bakersfield Refinery. for use in CA [23].

Receives naphthenic crude oils. Processing San Joaquin Refining Co. Bakersfield Refinery. into diesel fuel and naphthenic oils [25].

Prior to 2013 the Delek Bakersfield Refinery obtained crude oil from the San Joaquin Valley, which produces > 0.4 million barrels of oil per day [21]. Plans to transport Bakken oil (ND/ MT) to the refinery by rail have met with resistance [22]. From the San Francisco Bay area to Los Angeles is a drive of about 370 miles. The Kern Oil & Refining Co. Bakersfield Refinery has seen itself as the only refinery along this route which is producing gasoline [24]. The San Joaquin Refining Co. Bakersfield Refinery is a specialist refinery as noted. The Benicia Refinery, commissioned over 50 years ago, now has a capacity of 170000 barrels per day. It receives both domestic (San Joaquin and Alaska North Slope) and foreign crude oil. The Carson Refinery can process 0.265 million barrels of crude oil per day and has the high Nelson complexity index of 13.2 [26] reflecting its capabilities beyond fractionation including residuum conversion. It receives crude oil from the Alaska North Slope, from West Africa and from the Middle East. The Panama Canal is of course used by hydrocarbon-bearing vessels, and the term ‘Panamax tanker ‘ was coined with reference to it.

80 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

This is a suitable point at which to introduce the equivalent distillation capacity (EDC) of a refinery:

EDC = capacity/bbl per day × Nelson complexity index

The EDC of a refinery is the capacity of a topping refinery (Nelson complexity index = 1) which would require the same resources for operation. So on this basis Carson requires resources equivalent to those of a hypothetical topping refinery of daily capacity 3.5 million barrels. There will be a return to EDC at later stages of the book.

The El Segundo Refinery in southern California has about the same capacity as Carson [27]. It started production in 1911 when kerosene for illuminating oil was at least as saleable as gasoline, if not more so. The refinery shortly after its opening is shown in Plate 4.2 below; at that time it belonged to .

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81 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Plate 4.2. El Segundo Refinery shortly after commencement of operations in 1911. Image taken from [28].

The Golden Eagle Refinery in northern California has a capacity of 166000 barrels per day [29] and, like El Segundo, goes back over a century. As well as distillate fuels, this refinery produces petroleum coke. Some of this is used by an electricity utility in California, and some is exported [29]. It uses both domestic and imported oil. It is pointed out in [30] that at Golden Eagle, as at many elderly refineries, modifications to plant and installations over a long period preclude a holistic approach to troubleshooting. There is a return to this point when the Joliet Refinery in Illinois is discussed. The Delek Long Beach Refinery, capacity 34000 barrels per day [31], is a topping refinery and produces major amounts of asphalt. There are a range of , distinguished on the basis of viscosity (at 60°C). Asphalt from this refinery is taken to an asphalt terminal from which it is passed on for further processing into the respective grades.

The Phillips 66 Los Angeles Refinery is at two sites 5 miles apart which are linked by pipeline [32]. Fractionation takes place at one site and further processing at the other, and the capacity is 139000 barrels per day. The Marathon Los Angeles Refinery, capacity 0.36 million barrels per day, receives oil from within the US and from overseas countries including Ecuador [33].

The Martinez Refinery near San Francisco, which uses crude oil from San Joaquin, is also more than a century old and its current capacity is 155000 barrels per day [34]. A speculation (no more) on why so many refineries were built in California in the very early 20th Century follows. There had been successful trials of oil production offshore California in the 1890s and this was with a view to supplementing onshore supply from the traditional ‘oil states’ such as NJ and PA. In the meantime the oilfields of Texas proliferated and there was a loss of interest in production offshore CA. Offshore production therefore ceased. In the mid 1940s offshore oil production began in the , but it was not resumed off California until about 1960. In the late 19th Century, Cleveland OH was the

82 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada most important refining location in the US. The Paramount Refinery belongs to a later era, having begun in the 1930s [35]. Situated at Long Beach, where as we have seen there are several refineries, it has a capacity of 34000 barrels per day and (like the Delek Long Beach Refinery) is a major supplier of asphalt. The Richmond Refinery came into service in 1902. As well as supplying liquid fuels across the boiling range is it also a major supplier of base oils for such things as lubricants [36]. Interestingly, they are made not from residual material but heavy distillate (‘gas oil’). The Phillips 66 San Francisco Refinery receives a variety of crudes, from CA, elsewhere in the US and foreign countries [37]. It comprises two previously independent refineries, Santa Maria (operating since 1955) and Rodeo (operating since 1896). Fractionation at Santa Maria is followed by transfer to Rodeo for final conversion to products. The capacity is 120000 barrels per day and products are marketed within California. There have been discussions of possible use at this refinery of oil from Canadian tar sands instead of conventional crude oil [38]. Also at Santa Maria is a refinery owned by Greka energy and it too produces asphalt for roads as well as kerosene and distillate feedstock for petrochemical manufacture [39]. Greka are also producers of crude oil, and they tend to divert some of their oil to this refinery at times when oil prices are low. The PBF Energy Torrance Refinery has a capacity of 155000 barrels per day and a high Nelson complexity index, 14.9 [40]. It produces liquid fuel right across the boiling point range as well as petroleum coke and sulphur.

Both the Wilmington Refinery and the Wilmington Asphalt Refinery are operated by Valero (HQ in San Antonio TX), who have featured previously in this book in the coverage of the Benicia Refinery and of the Pembroke Refinery in the UK. Wilmington Refinery takes 135000 barrels of crude oil per day for processing, or sometimes influx to the refinery is partly unfinished product from topping refineries [41]. Valero operate fourteen refineries, and crude oil prices are obviously of the utmost importance to them. Daily the company posts prices for benchmark US crude oils (e.g. [42]). These are Texas Panhandle, WTI, South Texas Light, Mirando (TX), North Texas Sweet, Oklahoma Panhandle, NW Oklahoma Sweet and Light Louisiana Sweet (LLS). What is very noticeable is that on any one day LLS is up to $10 per barrel more expensive than the others and is closer to the Brent (N. Sea) price than to the prices of the US crudes. On a particular day in March 2019 Brent was $67 per barrel to the nearest dollar, and LLS $61 per barrel. On the same day the WTI () price was $53. The OPEC basket price was $65. Some of the heavy material from the Wilmington Refinery goes to the Wilmington Asphalt Refinery where it is processed into grades along the lines described for the Delek Long Beach Refinery.

The Commerce City Refinery in Colorado (next row of the table) has a capacity of the order of 100000 barrels per day [43]. It produces asphalt as well as the usual gamut of liquid fuels. The Delaware City Refinery has a capacity of just under 0.2 million barrels per day [44]. There was a fire there in 2019 [45]. Crude oil is conveyed by barge to the refinery,

83 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada and some of it is transferred to a PBF Refinery in NJ. There have been issues with taking the oil by barge to other venues [46]. The Savannah Refinery GA receives Venezuelan crude from PDVSA [47]. It is an asphalt refinery [48] and its products include asphalt emulsions. The Kapolei Refinery in Hawaii (next row of the table) produces across the whole range of distillate and residual fuels as well as asphalt [49]. Its capacity is 94000 barrels per day. It supplies jet fuel to Honolulu International Airport, also petroleum fuels for shipping to remote and undeveloped Pacific regions [50]. Its Nelson complexity index of 5.7 probably reflects the production of heavy fuel oil and of asphalt instead of residuum conversion. Chevron’s Hawaii Refinery has a capacity of 58000 barrels per day and supplies jet fuel to the Hickam Air Force Base which operates jointly with the Naval base at Pearl Harbour [51].

The Lemont Refinery in Chicago IL (next row of the table) has a capacity of 167000 barrels per day [52] and (as would be expected from the link with PDVSA) imports sour crude oil from Venezuela. The sulphur removal process is at a sufficiently high temperature for the elemental sulphur product to be molten. It can easily be kept in the melted state for ease of handling as is done at Lemont amongst many other refineries, and a leak of molten sulphur at a Japanese refinery will be discussed in a later chapter. The Joliet Refinery was opened in 1972 and is still the second newest refinery in the US. Then newest is the Yuma Refinery in Arizona which postdates Joliet by > 35 years. Obviously the oil refining capacity of the US

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84 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada increased enormously over that time, and this was accommodated by expansion of existing refineries. Safety in the oil refining industry can be adversely affected by this [53]. (See also the discussion of the Krotz Spring Refinery in Louisiana.) Joliet receives conventional crude oil (not oil from tar sands) by pipeline from Canada. Wood River Refinery, located in Roxana IL and close to the IL/MO state border, can refine 0.3 million barrels of crude oil daily [54]. Some of its crude oil supply is from the Gulf of Mexico though it also receives Canadian oil having been made from tar sands and exported via the Keystone Pipeline [55].

The Whiting Refinery in Indiana has long been a major one, having come into operation during the regime of J.D. Rockefeller [56]. It is now the largest BP refinery in the world, having a capacity of > 0.4 million barrels per day [57]. Mount Vernon Refinery is much smaller and receives domestic oil via pipeline [58]. A gusher well erupted at Mount Vernon about 80 years ago, and the refinery came into existence shortly afterwards [59]. The Coffeyville Refinery in Kansas (next row of the table) has a capacity of 108000 barrels per day [60]. It receives Gulf Coast oil and its refined products are sold in AR, OK, KS, MO, NE, IA and SD. The El Dorado Refinery in Kansas has a capacity of 135000 barrels per day and can access oil from the Cushing hub in Oklahoma [61]. This has storage capability for 94 million barrels of crude [62], which is more than a day’s international consumption and about a seventh of quantity of oil in the Strategic Petroleum Reserve.

The Catlettsburg Refinery KY (next row of the table) is a large one, capacity ~ 0.3 million barrels per day [63]. It is an obvious example of the expansion in US refineries instead of the construction of new ones: it opened in 1916 with a capacity of 1000 barrels per day. It receives a broad range of crudes and also condensate. Somerset Refinery is very small (5000 barrels per day [64]). It takes crude oil in the API gravity range 30 to 45 degrees [65] from domestic onshore sources. Continental Refining Company, the operators of this refinery, practice Transmix [66]. That means that distillates – gasoline, jet fuel and possibly diesel – which have unavoidably mixed in are separated to make saleable products.

Louisiana (next row of the table) has eighteen refineries, and these will be described in turn. The Phillips 66 Alliance Refinery near New Orleans has a capacity of about a quarter of a million barrels per day [67]. A fatal accident in the ‘slips, trips and falls’ category occurred there in 2018 [68]. The refinery receives oil from the Gulf of Mexico by pipeline and also – oil from reservoirs with very low permeability – by tanker [69]. A single-train refinery, it produces across the boiling range of distillate fuels having FCC capability. Interestingly, the petroleum coke it produces in ‘anode grade’. That makes it suitable for use in lithium ion batteries which, of course, are becoming increasingly important as electric cars and hybrid cars become more numerous. Oil production will continue into the era of electric cars, and a rough speculation has been that in 2040 crude oil production will be at about the 2000 level. It would be a remarkable example of reciprocity if petroleum coke

85 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada from oil refining was diverted to lithium ion battery manufacture. Anode grade petroleum coke also features in the discussion of the Shell Norco Refinery. The ExxonMobil Baton Rouge Refinery has a capacity of half a million barrels per day [70]. It is currently proposing to expand its polypropylene production there to 400000 tonnes per year [71]. It was at the Gulf Coast about 90 years ago that the production of olefins from petroleum material began.

The Chalmette Refinery is dual-train, and has a capacity of about 200000 barrels per day [72]. Its products are transported along the Collins Oil Products Pipeline. City of Collins is a major centre for wholesale supply of petroleum products. The Chalmette Refinery has ownership (PBF) in common with two refineries already discussed in this chapter: Torrance Refinery and Delaware City Refinery. The Shell Convent Refinery, situated between Baton Rouge and New Orleans, processes daily a quantity of crude oil approaching a quarter of a million barrels [73]. It produces distillates and their equivalents obtained by FCC. The Cotton Valley Refinery has a capacity of 13500 barrels per day. It used atmospheric distillation to produce solvents for applications such as paints and organic drilling fluids [74]. The Garyville Refinery, operated by Marathon, can refine daily over half a million barrels of oil [75]. Its product range is extremely wide, and includes fuel grade petroleum coke. Fuel grade petroleum coke is a substitute for coal or lignite and tends to be from vacuum rather than atmospheric distillation. It is higher in sulphur than the anode grade coke produced at the Phillips 66 Alliance Refinery as discussed above. If the petroleum coke is burnt in a fluidised bed the sulphur dioxide resulting can be trapped by injecting calcium oxide. Notwithstanding this disadvantage, petroleum coke as a fuel does have one clear edge over lignite viz. a higher calorific value. There is a brief return to fuel grade petroleum coke when the Phillips 66 Billings Refinery in Montana is discussed.

Before the Yuma Refinery came into operation, the Krotz Spring Refinery was the newest grass roots refinery in the US [76]. Its input crudes include Louisiana Light Crude which, as discussed above, is an expensive crude. At 74000 barrels per day it is of moderate capacity, and the products are distributed within the south east US. Like the several refineries at Bakersfield PA, those at Lake Charles LA will be discussed together.

Capacity 32000 bbl per day [77]. 22000 Lake Charles Refinery (Calcasieu Refining). bbl per day when commissioned.

Lake Charles Refinery (Citgo). Capacity 45000 bbl per day [78]

Lake Charles Refinery (Pelican Refining). Capacity 56000 bbl per day [79].

Lake Charles Refinery (Phillips 66). Capacity 0.25 million bbl per day [80].

86 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

The Lake Charles Refinery is close to the Calcasieu Ship Channel. By analogy the Essar Refinery in England discussed in the chapter on EU countries is close to the . The Calcasieu Refining Lake Charles Refinery produces jet fuel and diesel but no gasoline. The lightest material is sold as naphtha for the petrochemical industry. There is no vacuum distillation. At the Citgo Lake Charles Refinery there is both FCC and vacuum distillation. It uses crude from Venezuela. At the Pelican Refining Lake Charles Refinery some of the refined material is ‘semi-finished’ and is passed on for further processing. The refinery produces jet fuel and asphalt. There is vacuum distillation. Crude oil is received by barge along the Calcasieu River and that is true of other Lake Charles refineries. The Phillips 66 Lake Charles Refinery is a large one, and receives both domestic and foreign crudes. It also receives ‘advantaged crude oil’, by which is meant oil produced at lower than usual development cost and therefore saleable at a discount. The ‘development cost’ includes exploration, and there is a record [81] of a GoM reserve of 200 million barrels of oil the existence of which was indicated by imaging of the geological formation. That in itself is not of course new, but this particular oil would not have become apparent with imaging methods even in the late 20th Century. Oil so discovered has a low exploration cost and so is ‘advantaged’ in marketing. The margin is even greater if oil so discovered can be produced at existing infrastructure. It is intended that the newly discovered oil reserve in the GoM referred to will be tied back to BP’s platform at the Atlantis field [82]. There is a strong movement towards advantaged oil in the North American downstream oil industry at present, and Phillips 66 have identified strongly with it [83] not only at Lake Charles but also at its California refineries described above and at their NJ refinery (see below). It obtains advantaged crude from onshore US fields and from Canada.

The Meraux Refinery has a capacity of 135000 barrels per day [84], making it quite a major refinery. At a quarter of a million barrels per day, the Shell Norco Refinery is bigger still [85]. The land which it occupies was once sugar cane fields. As might be expected from a refinery on this scale, its products are numerous and varied. They include the full range of distillate fuels as well as olefins for the manufacture of products including plastics and detergents. It also produces anode grade petroleum coke. Placid Refining, owners of the Port Allen Refinery (see plate 4.3), have a policy of purchasing only domestic crude oil for their 80000 barrel per day refinery [86]. That might be connected with the fact that its customers include the US defence forces to whom it supplies jet fuel. Its domestic and industrial sales extend as far along the eastern US as Virginia.

87 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Plate 4.3. Placid Port Allen Refinery in Louisiana. Image taken from: https://www.mca-llc.com/?creativo_portfolio=placid-refining-co-port-allen-la

The Calumet Lubricants Princeton Refinery is a specialist refinery making such commodities as solvents and waxes some of which are exported [87]. That is not to the exclusion of conventional products. It conducts atmospheric distillation to obtain the starting materials and these are at the heavy end of the distillation range. Those at the lighter end are put to fuel use in the usual way. The same company at its Shreveport Refinery takes 60000 barrels per day of paraffinic crude oil and makes both conventional and specialty products. There was a fatal accident at this refinery in 2016 [88]. The Valero St. Charles Refinery has a capacity of 340000 barrels per day [89]. A remarkable 185000 barrels of distillate is produced daily [90], about 50% of the total. That plus the amount of distillate means that 80% of the total product – the ‘product slate’ – is light material [91]. The Shell St. Rose Refinery has a capacity of 55000 barrels of crude oil per day [92] and supplies the petrochemical industry [93].

The Marathon Detroit Refinery (next row of the table) has a capacity of 140000 barrels per day [94]. It is the only refinery in Michigan and obtains some of its crude oil from Canada. The Marathon refinery in (next row of the table) has belonged to Marathon only since Q2 2018 [95]. At 102000 barrels per day it is the smaller of the two refineries in Minnesota. The Flint Hills Resources Pine Bend Refinery has a capacity at least three times that of the Marathon refinery [96]. The Pascagoula Refinery in Mississippi (next row of the table) has a capacity of 330000 barrels per day [97]. It uses imported crude and is set up for liquid fuels production. These are distributed via the Plantation pipeline [98]. This

88 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada pipeline conveys 700000 barrels of refined material per day in pipes of varying diameter up to 30 inches (0.762 m). In a 30 inch pipe the linear speed of flow would be:

700000 × 0.159 m3/[(24 × 3600 s) × (π × 0.3812 m2)] = 2.8 m s-1 or 6.3 m.p.h.

If one uses a value of 2.5 × 10-4 m2 s-1 for the kinematic viscosity of the refined material in the pipeline (based on a value for kerosene given in [99]), the Reynolds number for flow in the 30 inch diameter pipe is:

2.8 m s-1 × 0.762 m/(2.5 × 10-4 m2 s-1) = 8500 indicating turbulent flow. A Reynolds number below a third of that would have signified laminar flow. A similar calculation is performed in Chapter 6 for the Volgograd Refinery in Russia.

The Vicksburg Refinery in Mississippi is small, 25000 barrels per day for production of naphthenic oils as at several of the other refineries covered in this book e.g. Smackover. Vicksburg is the largest naphthenic oils refinery in the world and a major exporter of them [100]. It obtains crude oil from sources including the North Sea. The Hunt Southland

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89 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Rogers Lacy Refinery has a capacity as low as 11000 barrels per day [101]. It has its origins in the discovery of an oilfield in Heidelberg MS in the 1940s [102] and its development by the Texan oil magnate (‘wildcatter’ [103]) Rogers E. Lacy (1882-1963).

The Billings Refinery (Phillips 66) in MT receives crude oil from the US and from Canada [104]. Distilled products go to MT, WY, ID, UT, CO and WA and it produces fuel grade petroleum coke. The Billings Refinery (ExxonMobil) can process 60000 barrels of crude oil per day [105]. The refinery produces fuels across the range from LPG to diesel. It is not a supplier of materials such as olefins for petrochemical manufacture as most of the ExxonMobil refineries in the US (six in all) are. Two PBF (formed jointly by Petroplus Holdings Blackstone Group and First Reserve) refineries described in this book, Torrance Refinery CA and Chalmette Refinery LA, were until fairly recently ExxonMobil refineries [106]. In recent years there has been speculation that ExxonMobil’s Billings Refinery will also change hands [106]. It has only around third of the capacity of Torrance or Chalmette, and in relation to prospects of sale the view has been expressed that Billings is ‘small for majors’ [106]. The Calumet Montana Refinery in Great Falls takes relatively inexpensive heavy crude from Canada and converts the highest boiling distillate to gasoline equivalent by hydrocracking [107]. When carbon-carbon bonds are broken in cracking they are replaced by carbon-hydrogen bonds, and in hydrocracking elemental hydrogen is provided for that purpose. The H2 can be made in situ by steam reforming hydrocarbons (as at the Calumet Montana Refinery ) or it can be obtained from a supplier: the latter is becoming increasingly prevalent [108]. If cracking is without hydrogen the valency requirement will be met by recombination and synthesis of a heavy residue additional to the wanted products. That is not necessarily unacceptable, especially if there is on outlet for the residue such as gasifying it or (as is quite common: guidelines apply) blending it with heavy fuel oil. The Cenex Laurel Refinery in Montana has been in operation for over 70 years and now refines 60000 barrels per day of crude oil which it obtains from Kansas [109]. Eagle Springs Refinery in Nevada (next row of the table) at 1700 barrels per day [110] is fairly minuscule and its products are asphalt and heavy fuel oil. If at a refinery hydrogen availability is restricting processes requiring hydrogen – if the steam reformer is a ‘bottleneck’ – reforming conditions can be adjusted to promote the shift reaction:

CO + H2O H2 + CO2 and frequently the agent in the promotion is the catalyst. In that way there can be ‘debottlenecking’ of hydrogen production.

The Phillips 66 Bayway Refinery in NJ (next row of the table) is in New York Harbour and has a capacity of > 230000 barrels per day [111]. It receives oil from foreign countries including Canada and also advantaged oil from within the US. In the coverage of the Lake

90 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Charles Refinery it was noted that Phillips 66 is obtaining major amounts of advantaged oil. The Bayway Refinery has FCC and also produces large amounts of propylene. The PBF Paulsboro Refinery in NJ previously belonged to Valero [112] and has a capacity of 180000 barrels per day. Its ‘slate’ is expansive, from gasoline to base oils, and it is a producer of petroleum coke [113]. It receives foreign crudes including Arab Light (API gravity 33 degrees [114]) and Arab Heavy (API gravity 27 degrees [114]), both from Saudi Arabia. It also receives Hamaca crude oil from Venezuela. This is from the Orinoco Belt and has an API gravity as low as 8 degrees. It can be upgraded by operations including hydrocracking to API gravity 26 degrees and a viscosity which permits pipeline flow [115]. PBF Paulsboro Refinery also receives Urals crude (API gravity 32 degrees [116]), which is a blend of Russian crudes, and Kirkuk crude from Iraq. The Chevron Perth Amboy Refinery has since the 1980s been producing asphalt only. It does not itself process distillate products.

The Navajo Refinery in NM (next row of the table) can process 100000 barrels of crude oil per day [117]. It has vacuum distillation and FCC. It also has hydrofluoric alkylation, that is, alkylation with an HF catalyst of olefins to produce branched alkanes up to about

C8 which, if blended with gasoline, enhance its octane rating. Being branched these can more easily release alkyl radicals which will combine with and neutralise the effects of reactive intermediates which would otherwise have caused knock. For a very long time until proscribed, lead tetraethyl performed this role. Sulphuric acid instead of hydrofluoric can be used in alkylation at refineries. The Marathon Gallup Refinery in the NM town of the same name can process 26000 barrels per day of crude oil [118]. Most of the crude it receives is ‘Four Corners Sweet’, a US crude additional to those already discussed e.g. Louisiana Light Crude. As is widely known, Four Corners is where the borders of CO, UT, AZ and NM come together and the Marathon Gallup Refinery is situated in what is loosely called the Four Corners area. The 3C 4 compounds in LPG can be converted to C6 8 with a hydrogen fluoride catalyst, and this is done at the refinery in Gallup. The heavier material so obtained can be incorporated into gasoline. (See also the discussion of the Chevron Salt Lake City Refinery.)

The Mandan Refinery in ND (next row of the table) has a capacity of 74000 barrels per day and obtains most of its crude oil from Bakken (see the discussion of the Delek Bakersfield Refinery above) [119]. Crude oil is conveyed to this refinery by the crude oil pipeline, a.k.a. the High Plains crude oil pipeline, where in 2013 there was a leak as a result of which 20000 barrels of oil were released [120]. There were no consequences. At the Dakota Prairie Refinery in Dickinson ND, which came into existence in 2013, diesel is the sole end product. The refinery acts as a topping refinery, and the other fractions are passed along to other refineries for completion into products [121]. The diesel is sold locally.

91 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Ohio (next row of the table) was in J.D. Rockefeller’s time the refining capital of the US. He bought up the refineries there in what was dubbed the Cleveland Massacre. (In an unpublished paper presented in 2012, the author said apropos of this ‘To strengthen the metaphor, it was the antitrust laws which prevented the massacre from becoming a holocaust’.)

The Canton Refinery has a capacity of 93000 barrels per day [122]. Its oil supply is not entirely of conventional crude. It also receives condensate from the Utica tight gas play [123] and delete ‘from’ as shown. This has an API gravity of 60 degrees. What has been said previously about the possible merger of identities of light crude and condensate is relevant here. The Lima Refinery in OH is one of the oldest in the world, having been in service since 1886 [124]. Until 2007 it was called the Solar Refinery. It has had several changes of owner but has not over that entire time shut down except for maintenance. It is noted for 360° being the scene of the first removal of sulphur from crude oil by use of copper oxide. Its current capacity is 165000 barrels per day [125]. There was some consternation amongst local residents on a January evening in 2018 when one of the flares had what seemed to thinking them to be a dangerously large flame360° (see plate 4.4). In fact nothing was amiss. Some . hydrocarbon inventory had had to be removed from an undisclosed part of the refinery and was in a controlled way diverted to the thinkingflare [126]. Comments follow. below the illustration.

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© Deloitte & Touche LLP and affiliated entities. OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Plate 4.4. Refinery flare at Lima OH onth 8 January 2018. The larger than usual flame caused unnecessary panic amongst local residents. Image taken from [126].

A refinery flare is of course a burner, and it enables a flame, an intrinsically dynamic phenomenon, to be kept stationary. That is because flame propagation towards to burner mouth and cold gas movement away from it are equal and opposite. Such stabilisation is possible only across a range of thermal delivery defined by:

rate of supply of fuel (kg s-1) × calorific value of the fuel (J kg-1) ÷ burner mouth area (m2) so the thermal delivery has units J m-2s-1 or W m-2. The specifications of the flare would have given the range of thermal deliveries within which it could anchor a flame, and on 8th January 2018 it would have received at a thermal delivery higher than usual but within the range. See also the discussion in Chapter 5 of the ENAP Aconcagua Concon Refinery in Chile and the discussion in Chapter 10 of the Altona Refinery in Melbourne.

The BP/Husky Energy Toledo Refinery has a capacity of 155000 barrels per day [127]. Its vacuum distillation capacity is nearly half the atmospheric distillation capacity. It has FCC and hydrocracking. (2019 is the centenary year of this refinery.) The PBF Toledo Refinery, which has been in operation since the 1890s, produces diesel [128]. Its other products

93 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada include toluene and xylene as well as propylene trimer and propylene tetramer, respectively

C9H18 and C12H24. Many isomers are possible for each. These substances are used to make detergents. It obtains crudes from sources including Bakken, the Gulf Coast and Canada. It is also set up for UDEX, extraction of aromatics from gasoline by glycol [129]. Nitrobenzene is manufactured in large quantities and benzene from the UDEX process is suitable for that, being ‘nitration grade’.

The refinery in Ardmore OK owned by Valero (next row of the table) has a capacity of 90000 barrels per day and has a very wide product range including, in addition to distillate fuel, propylene and asphalt [130]. Not surprisingly it can receive oil from the hub at Cushing OK, although that is not its sole source. When the refinery opened in 1913 it received crude from the Cushing oilfield. Ponca City Refinery, operated by Phillips 66, also dates back to about the time of WW1. It uses domestic crude from locations including the Gulf Coast, also some imported crude conveyed by pipeline from the Gulf Coast [131]. It takes advantaged oil, like the other Phillips 66 refineries featuring in this chapter. Tulsa Refinery East and Tulsa Refinery West will be considered jointly as they have since 2019 been operated as a single refinery. Such integration was made possible by the installation of pipelines for transfer of processing streams between the two [132]. The combined capacity is 125000 barrels per day. The Wynnewood Refinery, which also receives advantaged crudes, can process 70000 barrels of oil per day [133] and this has a significance beyond being an indicator of refinery size. US refineries are required under the Renewable Fuel Standard (RFS), originally signed into law by President George W. Bush in 2005, to blend specified proportions of carbon neutral fuels into conventional fuels. That usually means blending ethanol with gasoline and biodiesel with conventional diesel. A refinery not meeting these conditions is required to purchase credits called Renewable Identification Numbers. The EPA has the authority to waive this requirement in the case of a refinery of capacity lower than 75000 barrels per day, and such a waiver was in fact granted to the Wynnewood Refinery in 2018 [134].

Moving on to Pennsylvania (next row of the table), oil from the 1859 Drake well [135] was refined in Pennsylvania [136] as fully described in Chapter 1 of this book. Bradford Refinery commenced production in 1881 [137]. At that time it produced 10 barrels per day and this has risen to 10000 barrels per day in 2019 [138]. The PES Philadelphia Refinery can process 335000 barrels of oil per day [139]. This is nearly five times the capacity below which a waiver of the RIN obligation can be applied for. This has been linked to recent financial difficulties at the refinery [140]. Trainer Refinery, now owned by the airline Delta as noted, has a capacity of 185000 barrels per day [141].When Delta acquired it in 2012 it was with a view to supplying its own fleet of aircraft with fuel more cheaply. As noted in [141], the refinery continues to function conventionally and offers refined products right across the range.

94 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

The United Refining Company Warren Refinery, which can process 70000 barrels per day of crude oil [142], is supplied by the Kiantone Pipeline. This pipeline and the refinery have a common owner. The pipeline receives crude oil from western Canada. Some of the refined products are marketed under the name Citgo (operators of the Lemont Refinery IL and the Lake Charles Refinery, see above) since United Refining purchased a filling station chain from PDVSA [143]. The Memphis Refinery in Tennessee (next row of the table) has a capacity of 195000 barrels per day [144] and has residuum conversion to a degree that almost 100% of the products are light, that is, those that did not originate as distillates became the equivalent of distillates in terms of boiling range and API gravity.

There are twenty-four refineries in the next row of the table, which is for Texas. ExxonMobil is amongst the largest in the world, having a capacity of 584000 barrels of crude oil per day [145]. Some of the crude oil it receives is from Mexico [146]. Adjacent to the refinery is the ExxonMobil synthesis gas unit, which uses solid residue from the refinery as feedstock [147]. The synthesis gas is passed along to Air Products at their Baytown plant, and they make hydrogen from it which they supply to users including the ExxonMobil Baytown Refinery [148]. Part of ExxonMobil’s ‘Baytown area operations’ is the Mont Belvieu plastics plant which produces large amounts of polyethylene using monomer which it obtains from the refinery. That some refineries have produced anode grade petroleum coke

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95 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada for lithium ion manufacture has already been noted. A battery also requires a separator, by means of which the two electrodes are kept apart so that the e.m.f. they produce can be made available to an external circuit. ExxonMobil have developed a separator for the lithium-ion battery [149] and it is composed of thin strata of polyethylene. On 16th March 2019 there as a fire at the ExxonMobil Baytown Refinery [150].

The Delek Big Spring Refinery has a capacity of 73000 barrels per day and a Nelson complexity index of [151]. It processes WTI and WTS (West Texas sour) crudes. At any one time the former is likely to be about $4 per barrel more expensive than the latter. In describing the ExxonMobil Beaumont Refinery we first note that Beaumont TX was the scene of the ‘Spindletop gush’ in 1901 [152]. This refinery began as a Standard Oil refinery only two years later. Its present capacity is 366000 barrels per day [153]. A significant increase by 2022 is planned. The Borger Refinery near Amarillo, owned by WRB and operated by Phillips 66, receives both crude oil and natural gas liquids (NGL). It can refine 22500 barrels per day of NGL and a considerably larger quantity of crude oil [154]. The distinction between condensate and NGL has been a matter for debate. One distinction is that condensate is separated at the scene of production whereas NGL are separated during natural gas processing [155]. Obviously there is no reason why a particular condensate and a particular NGL cannot be identical in content, but NGL is usually richer in heavier components (C5+) than condensate. The refineries at Corpus Christi TX will be considered together.

Capacity ~ 300000 bbl per day. Crude Corpus Christi Complex (Flint Hills Resources). received from Eagle Ford [156].

Corpus Christi Refinery (Citgo). Capacity 57000 bbl per day [158].

Capacity 315000 bbl per day [160]. Corpus Christi East and West Refinery (Valero). Previously two separate refineries a mile apart.

The Eagle Ford shale play, which supplies crude oil to the Flint Hills Resources complex in Corpus Christi, is believed to contain 3 billion barrels of ‘tight oil’ [157]. There will be export of refined products from the Flint Hills Resources refinery to Mexico. Output from the Citgo Corpus Christi Refinery has recently been jeopardised by US sanctions against Venezuela [159]. The Valero refinery in Corpus Christi also receives tight oil from Eagle Ford [161].

The El Paso Refinery owned by Marathon, capacity 135000 barrels per day, receives domestic crude from places including NM [162]. Some of the refined product is exported by pipeline to Mexico. The Galveston Bay Refinery operated by Marathon is the second largest oil refinery in the US (the largest is the Motiva Refinery at Port Arthur, to be described below) at 585000 barrels per day [163]. It began in 1934. The refinery receives crudes from diverse sources and

96 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada its products take in the whole range of distillate and residual fuels. Its petroleum coke is fuel grade like that from the Garyville Refinery, another Marathon refinery. It produces chemical grade propylene. This is of less stringent specification than polymer grade propylene. Use of chemical grade propylene to make polypropylene is not totally excluded, but the chemical grade is more widely used to make such products as acrylic acid and propylene oxide [164].

Methyl acetylene CH3C≡CH occurs as a side product in propylene manufacture, and if it is present at > 15 p.p.m. the propylene becomes refinery grade [164], and there is a return to this when the Newcastle Refinery in Wyoming is discussed. Electricity is produced at the El Paso Refinery at a rate of just over 1 gigawatt (GW) more than half of which is sold on to the grid. That is an annual quantity of electricity of about 4.5 TWh, saleable for a sum of the order of $500 million.

The Lyondell Houston Refinery has a capacity of 270000 barrels per day [165]. Again, as would be expected from a refinery of this size the product range is comprehensive and includes refinery grade propylene (see the discussion immediately above) and carbon black. In general, solid carbons such as carbon black are formed as a residue in cracking processes where there is no added hydrogen. The Valero Houston Refinery has a capacity of 145000 barrels per day and imports crude oil from Saudi Arabia and Iraq [166]. Again there are a wide range of products and they include No. 2 fuel oil and No. 6 fuel oil. These terms have their origin in an ISO standard. No. 2 fuel oil is distillate and No 6 fuel oil is residual, often blended with some distillate. It is sometimes necessary to dye distillate fuel oils to prevent their illegal use as automotive diesel. Distillate fuels for home heating, a major application of No. 2, will be less heavily taxed than diesel for vehicles or perhaps not taxed at all, so to use No. 2 fuel oil as a vehicular fuel is to evade tax. The Valero Houston Refinery produces distillate for both uses. It also produces isooctene C8H18, used to make ethylene–octene copolymer. Such a product manufactured by Dow is called DowEngage® and is an elastomer. The refinery in Houston operated by Independent Refining has a capacity of 100000 barrels per day [167]. Independent Refining is part of Stratnor (Strategic Northern). Headquartered in Houston, Stratnor once owned a refinery at Lake Charles LA.

The McKee Refinery, which is located in Sunray TX, obtains crude oil from TX, OK, KS and CO. It entered operation in 1933 [168]. In 1956 there was a fire at this refinery in which nineteen firefighters died [169]. The fire began when vapour escaped from a tank containing pentane and hexane. The vapour diffused and ignited some distance from the tank. Later there was tank rupture and explosion of the contents on release. In other words there was a BLEVE (boiling liquid expanding vapour explosion) although the term ‘BLEVE’ was not coined until 1958 [170]. The Nixon Refinery owned by Blue Dolphin is near San Antonio. Once in mothballed status, it was recommissioned when oil from Eagle Ford became available [171]. Information in the table for the refineries in TX is a little out of date in just one detail: in early 2019 the Petrobras Pasadena Refinery became the Chevron Pasadena Refinery [172]. It is the first Chevron refinery in TX and will bring Eagle Ford

97 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada tight oil within Chevron’s downstream portfolio. The refineries at Port Arthur TX will be considered together.

Port Arthur Refinery (TOTAL). 185000 bbl per day [173].

> 600000 bbl per day [175]. The Port Arthur Refinery (Motiva Enterprises). largest oil refinery in the US.

310000 bbl per day [177]. In Port Arthur Refinery (Valero). operation for over a century.

At the TOTAL Port Arthur Refinery expansion of steam cracking to make ethylene from ethane is under way. It is sometimes stated that in ‘steam cracking’ the steam is just a diluent. Its role is in fact chemical. It removes any solid carbon featuring in the many possible reaction steps by:

C + H2O CO + H2

This reaction influences the concurrent reactions, and under some reacting conditions acceleration of the ethane cracking is brought about by steam [174]. The ‘condition’ most

98 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada strongly affecting that is the steam-to-ethane ratio. A new steam cracker at the TOTAL Port Arthur Refinery is expected to come into service in 2020. It will produce a million tonnes per year of ethylene [173]. The Motiva Port Arthur Refinery (see plate 4.5 below) has been the biggest refinery in the US since a 2012 expansion [176]. It is only the eighth largest refinery in the world. The Paraguaná Refinery Complex described in Chapter 3 is bigger, and there are others which significantly exceed Motiva Port Arthur in capacity, notably in India and in South Korea. These will be covered in their due places in this book.

Plate 4.5 The Motiva Port Arthur Refinery in Texas, the largest oil refinery in the US. Image taken from: https://www.google.co.uk/search?q=motiva+port+arthur+refinery &source=lnms&tbm=isch&sa=X&ved=0ahUKEwjnnvSLm47hAhUsXhUIHS7vBq oQ_AUIECgD&biw=1200&bih=859#imgrc=1DvLofaZ8A4YDM:

The Valero Port Arthur Refinery is set up to receive heavy crude, which is hydrocracked. It receives crude oil from Mexico [178]. There was an explosion, involving no injuries or deaths, at this refinery in 2017 [179]. Shortly before, the refinery had been closed down because of Hurricane Harvey [180]. The other two refineries in Port Arthur Refinery each had a period of closure as a result of the hurricane. It was because of the proneness of the area to hurricanes that Motiva made a decision not to expand its refinery at Port Arthur from its already huge size [181]. Port Arthur is Motiva’s only refinery in the US and it had been intended to raise its capacity by 50%. That would have made it the third largest refinery in the world, after Jamnagar Refinery in India (1.24 million barrels per day [182]) and Paraguaná.

Restricted supplies of gasoline as a result of the impact of Hurricane Harvey caused gasoline prices to rise sharply [183]. Such a rise reflects an increase in the crack spread, that is, the difference in price between crude oil and refined product. There are formulae for calculating crack spread which incorporate as well as gasoline [184]. The simplest approach is just to regard it as the gasoline price minus the crude oil price. In early 2019 petrol was selling in TX for about $2.20 per gallon. Deducting Federal (18.4 cents per gallon) and State (20 cents per gallon) taxes gives $1.82 per gallon or $76.44 per barrel. Using a WTI price of $65.58 per barrel which applied on the day on which the calculation is being performed, the crack spread is $10.86 per barrel and this is a typical value although

99 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada values twice this or more can occur. At the time of Hurricane Harvey unusually high crack spreads – up to > $35 per barrel – were being reported [185], [186].

The Calumet Lubricants San Antonio Refinery receives 20000 barrels of oil per day [187]. It produces liquid fuels as well as substances for making lubricants. The Phillips 66 Sweeny Refinery has a capacity > 250000 barrels per day [188]. In 2021 it will start to produce hydrogen by reforming methane:

CH4 + H2O CO + 3H2 at what will be the largest hydrogen producing facility in the US [189]. It receives advantaged crude, a trend with Phillips 66 refineries as already noted. The Valero Texas City Refinery commenced operations in 1908 with a capacity of 10000 barrels per day [190] which has increased by an order of magnitude. The Valero refinery at Three Rivers TX, which began operations in 1974, has received crude oil from Eagle Ford since 2010, at first concurrently with foreign crude [191]. The Delek Tyler Refinery has a capacity of 60000 barrels per day [192]. It receives only light and sweet crudes, including WTI crude [193] and has FCC. 90% of the refined material becomes distillate or equivalent. There is also hydrodesulphurisation of the diesel product. This has a simple basis in organic chemistry:

-SH + H2 -H + H2S where denotes an organic structure. A catalyst is used. It is noted in a later chapter that in 2015 there was an explosion in the hydrogen production unit at a Brazilian refinery.

The Big West Oil North Salt Lake Refinery in Utah (next row of the table) has a capacity of 35000 barrels per day and receives crude oil from the Uinta basin in UT [194]. It also receives supplies from WY and Canada. The latter supply is syncrude, made from tar sands. A considerable proportion of the syncrude so made is sent to the US for refining [195]. Between extraction of the tar sands and existence of the syncrude there are a number of processes including hydrogenation and blending, and some control over the API gravity is possible. A value of 32 degrees is typical. The Chevron Salt Lake City Refinery has recently observed its 70th anniversary [196]. Recently the alkylation unit at this refinery was taken out of service and replaced by one using ISOALKY™, a novel process developed by Chevron [197]. In this the catalyst is not HF but an ionic liquid. Generalising the discussion, these are salts having a melting point below 100oC. The term ‘molten salt’ would not be incorrect for such a substance in its liquid state, but as that usually means something like sodium chloride for which the melting point is 801oC the term is usually avoided for ionic liquids. An ionic liquid will have an organic cation and an inorganic anion [198]. One such cation + + is C3N2H5 , obtained by protonating imidazole. Another is C3H10N ,obtained by protonating - - - pyrrolidine. Anions is such substances include AlCl4 , PF6 and BF4 . ISOALKY™ makes use

100 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada of an ionic liquid as a catalyst for alkylation. Quite apart from the performance benefits there is the elimination of highly corrosive HF which was previously used. Ionic liquid catalysis of alkylation features in Chapter 9 when the Anqing Company Refinery in China is discussed.

The Marathon Salt Lake City Refinery at 61000 barrels per day is the largest oil refinery in Utah [199]. Its products are distributed in UT, ID, WA and NV and it supplies jet fuel to the Salt Lake City International Airport. The HollyFrontier Woods Cross Refinery was for a period running at below its nameplate capacity of 45000 barrels per day because of a fire there in January 2019 [200]. It receives crudes from within the US and also, like the Big West Oil North Salt Lake Refinery, syncrude from Canada [201]. The other refinery at Woods Cross, that owned by Silver Eagle Refining, has a capacity of 10250 barrels per day. The refinery receives ‘yellow wax crude’ from the Uintah basin in Utah as its sole supply. This oil is of good API gravity (42 degrees) and is waxy. Since 2015 this refinery has practiced Mobil Isomerization Dewaxing (MIDW™) [202]. Not all straight-run material in the diesel boiling range might be suitable for fuel use, for example the cloud point might be too high. That necessitates a narrower cut for saleable diesel. MIDW™ is a solution to this. It is branched hydrocarbons which tend to lead to wax at sufficiently low temperatures, and in MIDW™ branched hydrocarbons are catalytically isomerised to structures having a lower waxing propensity [203]. At the Silver Eagle Woods Cross Refinery the diesel yield has been raised by 40% by this means.

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101 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Alphabetically Virginia (VA) would have followed, but there has been no oil refining there since the closure of the Yorktown Refinery in 2010 [204]. Moving on to the next row of the table, the Shell Anacortes Refinery in Washington (state) processes crude from the Alaska North Slope. It also receives crude (not syncrude) from Canada. The Marathon Anacortes Refinery has a capacity of 119000 barrels per day [205]. It was previously the Tesoro Anacortes Refinery and in 2010 there was an explosion and fire at this refinery in which seven persons died [206]. It was caused by escape of naphtha from a heat exchanger. The BP Cherry Point Refinery in WA has a daily capacity of a little under a quarter of a million barrels, and supplies jet fuel to the international airports in Seattle, Portland and Vancouver [207]. Petroleum coke from the refinery is heated to a temperature > 1200oC so as to remove all residual volatiles (it is ‘calcined’) and then supplied to the aluminium industry for electrode use [208]. The BP Cherry Point Refinery is one of major world suppliers of anode material to the aluminium industry. The Phillips 66 Ferndale Refinery, close to the Canadian border, has a capacity of 100000 barrels per day. When earlier in the chapter crack spread was considered for Texan refineries it was a 1:1 model, 1 barrel crude 1 barrel gasoline. An alternative is the 3:2:1 model, 1 barrel crude ⅔ barrel gasoline plus ⅓ barrel of diesel. Neither the 1:1 model nor the 3:2:1 model would have any validity at all for refining in which residuum conversion (a term used several times previously in this book) did not take place in a high degree. Across its entire refining portfolio, Phillips 66 has been obtaining crack spread values on the 3:2:1 model which are widely fluctuating (‘volatile’ [209]). The refinery in Tacoma has a capacity of 42000 barrels per day [210]. Amongst its products is jet fuel for the Joint Base Lewis-McChord, made to US Army specifications. It is the only refinery owned TrailStone Energy, which has its origins in the Ukraine and has had gas trading as its chief activity [211].

The Ergon Newell Refinery in WV (next row of the table) takes domestic paraffinic crude oil which it refines at a rate of 20000 barrels per day [212]. Its products include petroleum resins which are used to manufacture the Ergon product Coherex® which is an emulsion of petroleum resins in water and used as a dust suppressant [213]. The Husky Energy Superior Refinery is currently out of action following a fire and explosion in 2018 [214]. Repairs are under way and a return to production is expected.

The HollyFrontier Cheyenne Refinery (final row of the table) has a capacity of 52000 barrels per day [215]. In the discussion of the Chevron Salt Lake City Refinery it was described how in alkylation processes ionic liquids were being used as a catalyst instead of HF. At the HollyFrontier Cheyenne Refinery HF has been retained as a catalyst for alkylation, though the safety of its handling has been improved by advanced laser detection of leaked HF [216]. The Genesis Energy Douglas Refinery has a capacity of 3800 barrels per day [217] and is a topping refinery. The Silver Eagle Refining Evanston Refinery is also small (3000 barrels per day) but is not a specialist refinery. Its primary product is gasoline which it extends by

102 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada catalytic reforming of heavier material in the naphtha boiling range. The Sinclair Casper Refinery has a capacity of 25000 barrels per day, and supply to it includes syncrude from Canada [218]. The Sinclair Refinery in the town of the same name, 126 miles from Casper, has a capacity of 85000 barrels per day [219]. The larger refinery has a wider product range than the smaller, and its products extend beyond distillate fuels to asphalt. Both refineries date from the 1920s and have supplied automotive fuel to the ‘Mountains states’ over that time. The Newcastle Refinery, owned by Wyoming Refining Company, is also small at 14000 barrels per day [220]. Its most recent development is benzene removal by the ExxonMobil BenzOUTTM process [221]. This converts benzene in fractionated material to substituted benzenes by reaction with an olefin, and ‘refinery grade propane’ is suitable for this. The substituted benzene product is suitable for blending back.

4.2 OVERVIEW OF CANADA As with the US, the information will be in a table followed by comments. It was explained in the previous section how several US refineries accept syncrude from Canada for processing. A major supplier of Canadian syncrude, for local or US refining, is Syncrude Canada Ltd. often just referred to as Syncrude. Its HQ is in Fort McMurray Alberta. The term ‘bitumen’ is frequently used for the unprocessed hydrocarbon from tar sands. This has an API gravity of 10 degrees or lower.

Scotford Refinery (Shell Canada). Refinery (Suncor Energy). Alberta. Sturgeon Bitumen Refinery (North West Redwater Partnership). Suncor Refinery (Suncor). Husky Lloydminster Refinery (Husky Energy).

British Burnaby Refinery (Parkland Fuel). Prince George Refinery (Husky Energy). Columbia.

New (Irving Oil). Brunswick.

Newfoundland North Atlantic Refinery (North Atlantic Refining). and Labrador.

Nanticoke Refinery (). Sarnia Refinery (Imperial Oil). Ontario. Sarnia Refinery (Suncor Energy). Shell Corunna Refinery (Shell).

Quebec. Montreal Refinery (Suncor Energy). Quebec City Refinery (Ultramar).

CCRL Refinery (Federated Co-operatives). Moose . Jaw Refinery (Gibson Energy).

103 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

The Shell Scotford refinery itself makes syncrude at its [222]. It receives bitumen (in the sense of the term explained above) which it hydrogenates to make syncrude. The capacity of the refinery is 100000 barrels per day of syncrude and the products go to Shell outlets. On the petrochemicals side, the refinery produces benzene to make styrene. Ethylene glycol is also produced at Scotford. The carbon capture and sequestration there has become known as the Quest CCS Project [223]. It uses amines for carbon dioxide removal, a well characterised process. Its performance is of the order of a million tonnes of CO2 per year. Sometimes in compilations of Canadian oil refineries scenes of upgrading only, not subsequent fractionation, are included. An example is Long Lake Alberta, where 26000 barrels per day of syncrude are made from bitumen [224]. Another is the Horizon Oil Sands facility at the aptly named location of in Alberta [225].

The Sturgeon Bitumen Refinery in Alberta initially received syncrude for fractionation, but will soon be set up to receive bitumen and convert it to syncrude [226]. Entering service in 2017, the refinery produced 7.7 million barrels of diesel in its first year. The Suncor Oil Sands Refinery refines 142000 barrels per day of syncrude [227]. The Husky Energy Lloydminster Refinery, like the Shell Scotford Refinery, has its own upgrader. Asphalt is a specialty product and it is made available across a range of specifications. (See the discussion of the Delek Long Beach Refinery in CA.) In what is known as the Husky Tucker Energy

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104 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

Project bitumen from Tucker, Alberta is taken to the upgrader at the Lloydminster Refinery for conversion to syncrude [228]. Its transfer along a pipeline requires dilution, and once ‘upgraded’ it is refined not at Lloydminster but at other Canadian refineries. Returning briefly to the theme of the OPEC chapter, Venezuelan crudes frequently require dilution for pipelining. Naphtha is commonly used as a diluent in such applications. That ‘visbreaking’ can be applied to heavy crude oils to enable them to be conveyed by pipeline has been noted in an earlier chapter.

The Parkland Fuel Burnaby Refinery in BC was until 2018 a Chevron refinery [229]. It is the only refinery in Vancouver. It is only able to supply 40% of the jet fuel for Vancouver International Airport: the balance is brought by road tanker from Cherry Point Refinery in WA [230]. There has been considerable lobbying for another refinery in Vancouver. The Husky Energy Prince George Refinery has a capacity of 12000 barrels per day and receives light conventional crudes [231]. That the same company sells syncrude from its upgrader at Lloydminster has been noted. The Irving Oil Refinery in St. John NB is the largest oil refinery in Canada, fractionating 300000 barrels per day [232]. Most of the crude oil it receives is foreign. NB has a border with Maine, and the products of the refinery are largely sold in the US. The North Atlantic Refinery in Newfoundland and Labrador is located in the whimsically named town of Come by Chance, and is often referred to as the Come by Chance Refinery. Its capacity is 130000 barrels per day [233]. It has recently started taking local crude from the White Rose Field, API gravity 30 degrees [234]. For processing this is blended with other crudes which might include tight oil from the US.

The Imperial Oil in Ontario (next row of the table) has a capacity of 112000 barrels per day [235]. It supplies about a quarter of the gasoline used by the motorists of Ontario. When in 2007 the refinery temporarily ceased production after a fire there were shortages of gasoline and high prices of gasoline where it was available. The difficulties were exacerbated by industrial action on the part of Canadian National Railways [236]. The Imperial Oil Sarnia Refinery is, at 120000 barrel per day capacity, a large one [237]. It has been in operation for over a century, and a major source of its crude has been the oilfield at Lambton County Ontario [238]. There will be a return to Lambton in the closing section of this chapter. The Suncor Energy Sarnia Refinery has a capacity of 85000 barrels per day [239]. In service since 1953 it receives conventional crude oil and, since 2007, syncrude from bitumen sands. The Shell Corunna Refinery, capacity 75000 barrels per day, receives conventional crude oil by pipeline. At commencement of operations in 1952 it was owned by Canadian Oil Companies Ltd. It was acquired by Shell in 1963, and another change of ownership is expected [240]. There are several major refineries in Ontario which have been decommissioned. They include the Shell Oakville Refinery, which was in production from 1953-1983. The land which it occupied now contains residences [241]. Similarly, the Suncor Oakville Refinery which began producing in 1958 was decommissioned

105 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada in 2005. In this case the site was retained by the refinery owner and used for storage of hydrocarbon products.

The Suncor Energy Montreal Refinery, capacity 137000 barrels per day [242], receives crude oil from North American sources, some of it via the Line 9B pipeline. This came into operation in 1976 with its origin in Alberta and its terminus in Quebec. In 1998 the direction of flow was reversed so that imported oil could be transferred to Alberta which, as can be seen from the table above, is the strongest refining province. In 2015 the flow was returned to the original direction, and the Suncor Energy Montreal Refinery receives oil from it [243]. There will be changes of altitude along the pipeline as well as pumping stations, and the circumstances of flow at a particular location along the pipeline will be different for the two directions. The change of direction cannot be made at a moment’s notice, but requires a risk assessment. The Ultramar Quebec City Refinery has a capacity of 265000 barrels per day and uses foreign crude [244]. Since the reversal in 2015 of the flow in the Enbridge Line 9B pipeline it has received oil from western Canada, making for less reliance on imports. This pipeline conveys conventional crude from Alberta, not syncrude. In Alberta at any one time, production of syncrude and its precursor bitumen significantly exceed production of conventional crude. Even so, daily production of the latter is half a million barrels [245].

The Federated Co-operatives CCRL (Consumers Co-operative Refinery Limited) Refinery in Regina Saskatchewan (next row of the table) has a capacity of 130000 barrels per day [246]. An upgrader was installed there because of fears as a result of the of the 1973 oil embargo that Canada might become short of petroleum fuels. In view of the Canadian setting, the term upgrader needs tightening. It does not mean conversion of bitumen to syncrude as at Lloydminster in Alberta. It means conversion of a heavy conventional crude to a lighter one by vacuum distillation and FCC (see the discussion of the refinery at Lysekil in Sweden). Moose Jaw is a specialist refinery [247]. Its products include asphalt across a viscosity range and base material for non-aqueous drill fluids.

4.3 CONCLUDING REMARKS In the coverage of Ontario, production of oil at Lambton County in the 19th Century is described. That was the location of the first oil well in Canada in 1858 [248]. It predates the Drake well by a year and was therefore the first oil well in North America. Oil from the Drake well was refined in Pittsburgh as noted. That from the 1858 well at Lambton County was refined locally. This section has information ranging in date from time of the Civil War to the presidency of Donald Trump. An OPEC document [249] predicts a rise not exceeding a million barrels per day in the joint oil distillation capacity of the US and Canada between the present time and 2040 and that most of that rise will pre-2025.

106 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

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107 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[15] https://www.instituteforenergyresearch.org/fossil-fuels/coal/arkansas-an-energy-and- economic-analysis/ [16] https://www.usnews.com/news/best-states/arkansas/articles/2019-02-06/no-one-hurt- after-fire-breaks-out-at-el-dorado-refinery [17] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/671-cross- oil-smackover-oil-refinery [18] http://resoluteoil.com/products/ [19] http://www.caloilgas.com/california-oil-refineries/ [20] https://everything.explained.today/Delek_US/ [21] http://sjvgeology.org/oil/index.html [22] http://www.kallanishenergy.com/2019/01/17/california-county-ends-bakersfield-refinery- project/ [23] http://kernoil.com/ [24] https://www.arb.ca.gov/lists/lcfs-lifecycle-ws/79-kern_oil__refining_co_-_comments_ on_lcfs_rd_tallow_pathway_081809.pdf [25] https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=6466404 [26] http://abarrelfull.wikidot.com/carson-los-angeles-refinery [27] https://www.mesotheliomasymptoms.com/california/chevron-el-segundo-refinery [28] https://elsegundo.chevron.com/about/history [29] https://www.revolvy.com/page/Golden-Eagle-Refinery [30] https://hose-coupling-world.com/end-user-interview-larry-wilkerson-golden-eagle-refinery/ [31] http://abarrelfull.wikidot.com/long-beach-refinery [32] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/763-phillips- 66-carson-oil-refinery [33] http://www.marathonpetroleum.com/content/documents/fact_sheets/MPC_LosAngeles_ FactSheet-1218.pdf [34] https://www.nrel.gov/docs/fy03osti/32615.pdf [35] https://www.bing.com/search?q=Paramount+Refinery&form=EDGSPH&mkt=en-gb& httpsmsn=1&refig=8a1e96d8b2c24e7b8201bcdcf3013301 [36] https://www.hydrocarbons-technology.com/projects/richmond-refinery/ [37] https://www.phillips66.com/refining/san-francisco-refinery [38] http://www.cbecal.org/wp-content/uploads/2018/05/San-Francisco-Refinery-Tar-Sands- Expansion-Fact-Sheet.pdf [39] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/742-greka- energy-santa-maria-oil-refinery [40] https://www.pbfenergy.com/refineries#torrance [41] https://www.valero.com/en-us/ProductsAndServices [42] https://www.valero.com/en-us/Documents/Crude%20Price%20Bulletins/2019-03- Crude%20Price%20Bulletin.pdf [43] http://abarrelfull.wikidot.com/commerce-city-refinery

108 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

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109 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[75] http://www.marathonpetroleum.com/Operations/Refining_and_Marketing/Refining/ Garyville_Refinery/ [76] http://www.alonusa.com/refining/krotz-springs-refinery [77] http://abarrelfull.wikidot.com/calcasieu-lake-charles-refinery [78] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/667-citgo- lake-charles-oil-refinery [79] http://abarrelfull.wikidot.com/pelican-refining-company [80] https://www.phillips66.com/refining/lake-charles-refinery [81] https://www.oilandgas360.com/we-are-all-about-advantaged-oil-and-21st-century-data- processing-capacity-bp/ [82] https://www.offshoreenergytoday.com/bp-approves-expansion-of-atlantis-field-makes- two-oil-discoveries-near-na-kika-platform [83] www.cccounty.us/DocumentCenter/View/28454/Fox-Report-Exh-17-and-18-Philips- 66-Delivers-Advantage-Crude-Strategy?bidId [84] https://www.valero.com/en-us/Pages/Meraux.aspx [85] https://www.shell.us/about-us/projects-and-locations/norco-manufacturing-complex/ shell-norco-manufacturing-complex.html [86] https://www.linkedin.com/company/placid-refining-company-llc [87] https://www.reuters.com/finance/stocks/company-profile/CLMTu.F

110 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[88] http://www.ksla.com/story/32027515/calumet-employee-fatally-injured-at-shreveport- refinery/ [89] https://www.valero.com/en-us/Documents/VRSC%20Fact%20Sheet.pdf [90] https://www.reuters.com/article/refinery-operations-valero-stcharles- idUSN2510171620110225 [91] https://www.reuters.com/article/refinery-operations-valero-stcharles- idUSN1448364120080214 [92] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/706-shell- saint-rose-oil-refinery [93] http://www.dnr.louisiana.gov/assets/TAD/reports/refinery_survey/refinsurvey_2012.pdf [94] http://www.marathonpetroleum.com/Operations/Refining_and_Marketing/Refining/ Detroit_Refinery/ [95] http://www.startribune.com/marathon-petroleum-buying-st-paul-park-oil- refinery/481268921/ [96] https://pinebendrefinery.com/ [97] https://www.hydrocarbons-technology.com/projects/chevronpascagoula/ [98] https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/plantation- pipeline/ [99] https://www.engineersedge.com/fluid_flow/kinematic-viscosity-table.htm [100] https://ergon.com/refining-marketing [101] https://inflationdata.com/articles/oil-refineries-united-states/ [102] https://msbusiness.com/2001/10/in-mississippi-southland-oil-equals-steadfast-production/ [103] https://flashbackdallas.com/2014/08/28/dallas-frank-lloyd-wright-skyscraper/ [104] https://www.phillips66.com/refining/billings-refinery [105] https://corporate.exxonmobil.com/en/Locations/United-States/Billings-refinery-operations [106] https://www.reuters.com/article/us-refinery-sale-exxon-mobil-idUSKCN1152FR [107] https://www.ogj.com/articles/2016/02/calumet-wraps-montana-refinery-expansion.html [108] https://www.eia.gov/todayinenergy/detail.php?id=24612 [109] https://www.chsinc.com/energy-and-industrial/refining [110] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/741-foreland- refining-eagle-springs-oil-refinery [111] https://www.phillips66.com/refining/bayway-refinery [112] https://www.machinerylubrication.com/Read/26803/PDF-acquire-Valero-refinery [113] https://www.pbfenergy.com/refineries#paulsboro [114] http://www.oocities.org/twokdiamond/saudi_arabian_crude_oil_specifications.htm [115] https://www.hydrocarbons-technology.com/projects/hamaca/ [116] https://www.quora.com/What-are-the-different-types-of-crude-oil-from-Russia [117] https://www.hollyfrontier.com/operations/refineries/navajo/default.aspx [118] http://www.marathonpetroleum.com/content/documents/fact_sheets/MPC_Gallup_ FactSheet-1218.pdf

111 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[119] http://www.andeavor.com/refining/mandan/ [120] https://www.ogj.com/articles/2013/11/tesoro-logistics-to-restart-north-dakota-crude- pipeline.html [121] https://www.hydrocarbons-technology.com/projects/dakota-prairie-refinery-stark- north-dakota/ [122] http://www.marathonpetroleum.com/Operations/Refining_and_Marketing/Refining/ Canton_Refinery/ [123] https://shale.typepad.com/utica_shale/api-gravity/ [124] https://www.hydrocarbons-technology.com/projects/lima-refinery/ [125] https://www.hydrocarbons-technology.com/projects/lima-refinery/ [126] https://www.limaohio.com/news/279227/large-flare-concerns-husky-refinery-neighbors [127] https://www.hydrocarbons-technology.com/projects/bp-husky/ [128] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/698-pbf- toledo-oil-refinery [129] http://www.klmtechgroup.com/articles/article%20A%20001.htm [130] https://www.valero.com/en-us/Pages/Ardmore.aspx [131] http://abarrelfull.wikidot.com/ponca-city-refinery [132] http://abarrelfull.wikidot.com/tulsa-east-refinery [133] http://abarrelfull.wikidot.com/wynnewood-refinery [134] https://oilprice.com/Latest-Energy-News/World-News/EPA-Gives-Biofuel-Waiver-To- Billionaire-Icahns-Oil-Refinery.html [135] Jones J.C. ‘Drake’s 1859 oil well’ Chemistry in Australia December 2013. [136] https://www.secret-bases.co.uk/wiki/Samuel_Kier [137] http://abarrelfull.wikidot.com/bradford-refinery [138] https://www.amref.com/Refinery/Refinery-History.aspx [139] https://pes-companies.com/ [140] https://www.biofuelsdigest.com/bdigest/2018/02/01/whats-the-real-story-behind- philadelphia-energy-solutions-bankruptcy-crude-oil-and-the-renewable-fuel-standard/ [141] https://www.reuters.com/article/us-delta-air-m-a-refinery/delta-air-lines-seeks-buyers- for-a-stake-in-its-refining-subsidiary-idUSKCN1LM02U [142] http://abarrelfull.wikidot.com/warren-refinery [143] https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=563377 [144] https://www.valero.com/en-us/Pages/Memphis.aspx [145] https://corporate.exxonmobil.com/en/Locations/United-States/Baytown-area-operations- overview [146] http://abarrelfull.wikidot.com/baytown-refinery [147] https://www.globalsyngas.org/resources/world-gasification-database/baytown-syngas-plant [148] http://killajoules.wikidot.com/archive:air-produts-to-expand-texas-plant-to-supply- addition

112 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[149] https://cen.acs.org/content/cen/articles/90/i5/ExxonMobil-Casts-Off-Battery-Venture. html [150] https://abc13.com/officials-investigating-cause-of-fire-at-exxonmobil-refinery/5198827/ [151] http://www.deleklogistics.com/static-files/2ea4984e-6823-40cc-89a3-8ce08077f28a [152] https://www.history.com/topics/landmarks/spindletop [153] https://corporate.exxonmobil.com/locations/united-states/beaumont-operations/about- exxonmobil-in-beaumont [154] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/762-phillips- 66-borger-oil-refinery [155] https://www.eia.gov/petroleum/workshop/ngl/pdf/definitions061413.pdf [156] https://www.fhr.com/newsroom/2006/FLINT-HILLS-RESOURCES-COMMISSIONS- NEW-FUEL-TERMINAL [157] https://www.sciencedirect.com/topics/engineering/eagle-ford-shale [158] https://www.citgo.com/press/news-room/news-room/2018/citgo-corpus-christi-refinery- honors-community-partners [159] https://cyprus-mail.com/2019/01/31/u-s-refiner-citgo-caught-in-venezuela-political- upheaval/ [160] https://www.hydrocarbons-technology.com/projects/valero-bill-greehey/ [161] http://abarrelfull.wikidot.com/valero-corpus-christi-refinery

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113 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[162] http://andeavor.com/refining/el-paso/ [163] http://www.marathonpetroleum.com/Operations/Refining_and_Marketing/Refining/ Galveston_Bay_Refinery/ [164] https://www.digitalrefining.com/article/1000939,Optimising_distillation_column____ product_quality_____.html#.XI9_rvZ2umQ [165] https://www.lyondellbasell.com/en/houston-refinery/ [166] http://abarrelfull.wikidot.com/valero-houston-refinery [167] https://static.tti.tamu.edu/tti.tamu.edu/documents/409186/PP-14-01.pdf [168] https://www.valero.com/en-us/Pages/McKee.aspx [169] http://firebuffpatrol.createaforum.com/historical-fires/1956-mckee-refinery-fire-part-1/ [170] Abbasi T, Abbasi S.A. ‘The boiling liquid expanding vapour explosion (BLEVE) is fifty . . . and lives on!’ Journal of Loss Prevention in the Process Industries 21 485-487 (2008). [171] https://www.mysanantonio.com/business/article/Nixon-refinery-benefits-from-Eagle- Ford-crude-4221647.php [172] https://www.bizjournals.com/houston/news/2019/01/31/chevron-to-buy-petrobras- refinery.html [173] https://www.total.com/en/energy-expertise/projects/refining-petrochemical-platform/ port-arthur-sustainable-platform [174] https://www.total.com/en/media/news/press-releases/le-vapocraqueur-de-port-arthur- au-texas-traite-de-lethane-issu-des-gaz-de-schiste [175] https://uk.reuters.com/article/us-refinery-operations-motiva-chemical/saudi-aramco- eyes-new-petrochemical-plant-in-texas-sources-idUKKCN1HD32V [176] https://www.rigzone.com/news/oil_gas/a/150291/saudi_aramco_plans_up_to_30b_ investment_in_motiva_by_2023/ [177] https://www.valero.com/en-us/Pages/PortArthur.aspx [178] http://abarrelfull.wikidot.com/valero-port-arthur-refinery [179] https://www.simmonsandfletcher.com/blog/valero-oil-refinery-explosion-port-arthur-texas/ [180] https://www.chron.com/business/energy/article/Harvey-forcing-Valero-refinery-shutdown- in-Port-12161510.php [181] https://uk.reuters.com/article/us-usa-weather-refinery-lessons-exclusiv/exclusive-hurricane- worries-prompt-refiner-motiva-to-shift-expansion-plans-idUKKCN1J00DU [182] http://www.ril.com/OurBusinesses/PetroleumRefiningAndMarketing.aspx [183] https://www.reuters.com/article/us-global-oil/u-s-gasoline-in-first-slide-since-harvey- oil-under-pressure-idUSKCN1BC3EQ [184] https://www.cmegroup.com/tools-information/calc_crack.html [185] http://tastytradenetwork.squarespace.com/tt/blog/crack-spread [186] https://www.genscape.com/blog/aftermath-hurricane-harvey-lingers-over-us-refinery- markets [187] https://www.expressnews.com/business/eagle-ford-energy/article/Troubled-San-Antonio- refinery-undergoes-80-6762851.php

114 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[188] https://www.phillips66.com/refining/sweeny-refinery [189] https://www.praxair.com/news/2018/praxair-signs-new-long-term-hydrogen-supply- agreement-for-phillips-66-sweeny-refinery [190] https://www.houstonpress.com/news/why-is-a-99-year-old-oil-refinery-still- running-8235961 [191] https://www.valero.com/en-us/Pages/ThreeRivers.aspx [192] https://www.industryabout.com/country-territories-3/264-usa/oil-refining/734-delek- tyler-oil-refinery [193] http://abarrelfull.wikidot.com/tyler-refinery [194] http://abarrelfull.wikidot.com/big-west-north-salt-lake-refinery [195] https://www.syncrude.ca/our-process/understanding-our-process/ [196] https://www.bicmagazine.com/departments/operations/oct-18-chevrons-gm-mitra- kashanchi-slc-refinery-celebrating-70-years/ [197] https://americanalloyflange.com/chevrons-salt-lake-city-refinery-plans-alkylation-unit- revamp/ [198] http://en.solvionic.com/family/ionic-liquids [199] http://www.marathonpetroleum.com/content/documents/fact_sheets/MPC_SaltLakeCity_ FactSheet1218.pdf [200] https://www.ogj.com/articles/2018/03/fire-results-in-reduced-rates-at-hollyfrontier-s- wood-cross-refinery.html [201] https://www.futureseas.net/page/news/view/woods-cross-phase-2-expansion-in-2018 [202] ‘MIDW™ Technology as a Drop-in Catalyst Solution’ ExxonMobil White Paper (2017). Accessible online. [203] https://www.digitalrefining.com/article/1001473,MIDW_technology_as_a_drop_ in____catalyst_solution.html#.XJImz_Z2umQ [204] https://www.ogj.com/articles/2010/08/western-refining-idling.html [205] http://www.marathonpetroleum.com/content/documents/fact_sheets/MPC_Anacortes_ FactSheet-1218.pdf [206] https://www.historylink.org/File/9717 [207] https://www.bp.com/en_us/bp-us/what-we-do/refining/cherry-point.html [208] http://www.laserpointawards.com/staff/bp-cherry-point-refinery/ [209] https://seekingalpha.com/article/3962367-phillips-66s-volatile-crack-spreads-pose- risk-long-term-holders [210] https://www.digitalrefining.com/news/1002954,TrailStone_acquires_U.S._Oil_and_ Refining_Company.html#.XJJIRvZ2umQ [211] http://trailstonegroup.com/ [212] http://abarrelfull.wikidot.com/newell-refinery [213] https://msds.ergon.com/files/ergon-asphalt-&-emulsions/2015_04_29-sds-us-_-coherex.pdf [214] http://www.fox9.com/news/explosion-at-superior-wisconsin-oil-refinery-multiple-injuries [215] https://www.hollyfrontier.com/operations/refineries/cheyenne/default.aspx

115 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[216] https://www.senscient.com/HollyFrontier_Cheyenne_Refinery1.html [217] https://www.ridgewoodenergy.com/news/1826.pdf [218] http://abarrelfull.wikidot.com/evanston-refinery [219] https://www.sinclairoil.com/about/refineries [220] http://abarrelfull.wikidot.com/newcastle-refinery [221] https://www.exxonmobilchemical.com/en/library/asset/7ed75c8202154960b8d0bc5 ebfae042d [222] https://www.shell.ca/en_ca/about-us/projects-and-sites/scotford.html [223] https://www.shell.com/media/news-and-media-releases/2015/shell-launches-quest- carbon-capture-and-storage-project.html [224] https://www.ogj.com/articles/2018/09/nexen-starts-work-on-long-lake-expansion.html [225] https://www.cnrl.com/operations/north-america-exploration-and-production/oil-sands- mining/horizon-oil-sands [226] https://www.jwnenergy.com/article/2018/9/sturgeon-refinery-approaching-switch- oilsands-bitumen-feedstock/ [227] https://www.suncor.com/about-us/refining [228] https://www.rigzone.com/training/heavyoil/insight.asp?i_id=254 [229] https://www.parkland.ca/en/investors/news/article?news-id=2018-04-09-Parkland-Fuel- Corporation-Announces-Successful-Completion-of-Turnaround

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116 OIL REFINING: THE INTERNATIONAL SCENE The USA and Canada

[230] https://www.oilsandsmagazine.com/news/2016/3/03/why-vancouver-desperately-needs- a-new-oil-refinery [231] https://business.financialpost.com/commodities/energy/husky-energy-puts-500-retail- operations-and-prince-george-refinery-on-the-block [232] https://irvingoil.com/en/operations-and-partners/operations/saint-john-refinery [233] https://www.silverpeak.com/investment/come-by-chance-refining/ [234] https://business.financialpost.com/commodities/energy/canadas-come-by-chance- refinery-in-newfoundland-samples-new-crude-on-own-front-door [235] http://enacademic.com/dic.nsf/enwiki/11793977 [236] https://toronto.citynews.ca/2007/03/16/imperial-oil-nanticoke-refinery-back-to-full- production/ [237] https://www.imperialoil.ca/en-ca/company/operations/refining-and-supply/sarnia [238] http://www.sarniahistoricalsociety.com/story/a-brief-history-of-imperial-oil/ [239] https://www.suncor.com/about-us/refining/sarnia-refinery [240] https://royaldutchshellgroup.com/2019/01/09/shell-looking-to-sell-corunna-plant/ [241] https://www.facebook.com/pages/Oakville-Refinery-Shell-Canada/139702262715296 [242] https://www.suncor.com/about-us/refining/montreal-refinery [243] https://www.cbc.ca/news/canada/montreal/enbridge-line-9-reversal-alberta- montreal-1.3360848 [244] http://abarrelfull.wikidot.com/quebec-city-refinery [245] https://www.oilsandsmagazine.com/energy-statistics/alberta [246] http://everything.explained.today/CCRL_Refinery_Complex/ [247] https://www.gibsonenergy.com/our-operations/storage-facilities/processing-facilities/ [248] https://www.lambtonmuseums.ca/exhibit/black-gold/historic-figures/ [249] https://www.ief.org/_resources/files/events/ief-lecture---world-energy-outlook-weo- 2017-and-world-oil-outlook-woo-2017/opec---world-oil-outlook-2040.compressed.pdf

117 OIL REFINING: THE INTERNATIONAL SCENE Central America, South America and the Caribbean

5 CENTRAL AMERICA, SOUTH AMERICA AND THE CARIBBEAN

5.1 OVERVIEW OF CENTRAL AMERICA The contents of the table below are backed up by further information in the main text.

Nico López Refinery (Cupet). Hermanos Díaz Cuba. Refinery (Cupet). Cienfuegos Refinery (Cupet).

Haina Refinery (Refinería Dominicana Dominican Republic. de Petróleo SA, REFIDOMSA).

Acajutla Oil Refinery (Refinería Petrolera El Salvador. de Acajutla and Puma Energy).

Guatemala. La Libertad Refinery ().

Tula (Pemex). Minatitlan Refinery (Pemex). Cadereyta Refinery (Pemex).Salamanca Mexico. Refinery (Pemex). Francisco I. Madero Refinery (Pemex). Salina Cruz Refinery (Pemex).

Cuesta del Plomo-Managua Nicaragua. Refinery (Puma Energy).

Cupet (Unión Cuba-Petróleo) is the state owned oil company in Cuba. It is engaged both in upstream and downstream activity. Plate 5.1 below shows a Cupet retail outlet.

118 OIL REFINING: THE INTERNATIONAL SCENE Central America, South America and the Caribbean

Plate 5.1. Cupet gas station in Cuba. Image taken from: https://www.google.co.uk/search?q=cupet&source=lnms&tbm=isch&sa=X&ved=0ahU KEwj5ubv8-JfhAhVTTBUIHbcyBXkQ_AUIDygC&biw=1341&bih=885#imgrc=QPFSHIf3-JJsiM

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119 OIL REFINING: THE INTERNATIONAL SCENE Central America, South America and the Caribbean

The Nico López Refinery is in Havana. The Hermanos Díaz Refinery is in Santiago de Cuba. They both receive Venezuelan crude [1]. Cienfuegos Refinery, which is 150 miles from Havana, is newer than either of the others and processes 65000 barrels per day of Venezuelan crude oil [2]. The Haina Refinery in the Dominican Republic (next row of the table) receives 34000 barrels per day of crude oil from Venezuela [3]. It is a hydroskimming refinery, a term which was introduced in Chapter 2 and which means a refinery having atmospheric distillation and further processes including reforming but no vacuum distillation and no FCC. Clearly a hydroskimming refinery is one degree of advancement beyond a topping refinery. There is a return to this theme when the YPF Plaza Huincul Refinery in Argentina is discussed. An aside follows.

The author has been unable to trace the etymology of ‘hydroskimming’. As described for a number of refineries in this book, notably Sodegaura Refinery in Japan (Chapter 11) and the Petron Bataan Refinery in the Philippines (also Chapter 11), hydrogen from the reforming can be put to refinery use. Recalling that hydroskimming means having reforming as the sole or principal operation beyond atmospheric distillation, it might be a reference to the production of hydrogen as a useful product accompanying the reformed hydrocarbon. The Aden Refinery in Yemen is discussed in Chapter 3. Its web pages (reference [174] in Chapter 3) state ‘This refinery is one of those which uses hydrogen to process its products (hydroskimming refinery)’. It is doubtful whether this is a correct meaning of the expression.

Acajutla Oil Refinery in El Salvador (next row of the table) has a capacity of 29300 barrels per day [4] and is situated on the Pacific coast. It is the only oil refinery in El Salvador, population 6.3 millions. The La Libertad Refinery in Guatemala (next row of the table) processes 5000 barrels per day of crude oil with asphalt as the desired product [5]. Products other than heavy residuals are exported along with crude oil from Guatemala’s Xan field.

Moving on to Mexico, it is salutary to remind oneself of the importance of Mexico to the worldwide oil industry. At the commencement of the 20th Century there were only three countries producing oil significantly: the US, Russia and Mexico. Obviously the proximity to Texas was a factor in the development of the Mexican oilfields. There was no production in the Middle East until the 1930s. Target production for the Tula Refinery in 2018 was just under 0.2 million barrels per day which is below nameplate capacity, but for reasons including vandalism even that was not attained [6]. A coker is to be installed there to enable light products to be more plentiful [7]. The refinery receives local crude mixed with imported light crude. The Minatitlan Refinery was operating at 6% of its nameplate capacity of 185000 barrels per day for part of 2018 [8]. The refinery has been in existence since 1906. The Cadereyta Oil Refinery, situated near Monterrey, has a capacity 275000 barrels per day [9] and provides gasoline and diesel to northern Mexico. After major expansion in 2002 and again in 2007 (it originally opened in 1979) it became the most advanced

120 OIL REFINING: THE INTERNATIONAL SCENE Central America, South America and the Caribbean refinery in Mexico having for example RFCC (residue fluidised catalytic cracking). This term is explained in the chapter on OPEC countries where two of the refineries in Indonesia are described. There the comment is made that the difference between FCC and RFCC is ‘one of degree’. One often learns of ‘upgrades’, ‘revamps’ and ‘modernisations’ of FCC units and it is reasonable to suggest that these narrow the gap between FCC and RFCC.

The Salamanca Refinery has also been operating at well below nameplate capacity recently [10]. In Mexico the problem of fuel theft for sale on the black market has been so serious as to require military intervention [11]. The Francisco I. Madero Refinery, capacity 190000 barrels per day, is an advanced one having for example FCC [12]. It takes Maya (Mexican) crude oil (API gravity 22 degrees, 920 kg m-3). This is high in sulphur (3.3%) and the refinery practices catalytic desulphurisation of gasoline. This works by hydrodesulphurisation, as described for diesel from the Delek Tyler Refinery in the previous chapter. Zeolite based catalysts are used in the desulphurisation of gasoline. As well as MTBE octane enhancer, the Francisco I. Madero Refinery produces Tertiary Amyl Methyl Ether (TAME) for the same use. The structural formula of that is shown below.

TAME.

Mexico imports from the US of the order of 0.4 million barrels per day of ‘finished gasoline’ [13], that is, gasoline ready for distribution to retail outlets. Production of more domestic gasoline by such measures as FCC/RFCC and use of octane enhancers would reduce that. The Permex Salina Cruz Refinery, capacity 330000 barrels per day, has recently been taking some US crude from Bakken [14]. That compensates for the absence from Salina Cruz of a coking facility to extend straight-run gasoline from heavy Mexican crudes. Bakken crude has an API gravity of 31.1 degrees, signifying a density of 870 kg m-3 cf. the corresponding data for Maya crude above. Import of lighter crude for refining is another way in which the dependence of Mexico on imported gasoline can be reduced. Note that lighter is the correct descriptor for the Bakken crude. It is a long way from being at densities where light crude and natural gas condensate are difficult to demarcate. The Cuesta del Plomo-Managua Refinery in Nicaragua is a very basic one, receiving 20000 barrels of Venezuelan crude oil per day for atmospheric distillation [15].

121 OIL REFINING: THE INTERNATIONAL SCENE Central America, South America and the Caribbean

5.2 OVERVIEW OF SOUTH AMERICA

La Plata Refinery (YPF, HQ in Buenos Aires). Buenos Aires Refinery (Raízen, previously Shell). Luján de Cuyo Refinery (YPF). Esso Campana Refinery (Axion Energy). San Lorenzo Refinery Argentina. (Refisan S.A.). Plaza Huincul Refinery (YPF). Campo Duran Refinery (Refinor). Bahía Blanca Refinery (). Avellaneda Refinery (Destilerías Argentinas de Petróleos, DAPSA).

Gualberto Villarael Cochabamba Refinery (YPFB). Guillermo Bolivia. Elder Bell Santa Cruz Refinery (YPFB). Carlos Montenegro Sucre Refinery (Refisur SA). Reficruz Refinería Oro Negro.

REFAP (Petrobras). RECAP (Petrobras). REPLAN (Petrobras). REVAP (Petrobras). RPBC (Petrobras). REDUC (Petrobras). Lubnor (Petrobras). REGAP (Petrobras). REPAR (Petrobras). RLAM Brazil. (Petrobras). RPCC (Petrobras). RNEST (Petrobras). Refinaria Riograndense (Ipiringa). Refinaria Manguinhos (Refinaria de Petróleos de Manguinhos). DAX Oil (Dax-Oil). Univen (Univen Petróleo).

Bio Bio Refinery (Empresa Nacional del Petróleo). Aconcagua Chile. Concon Refinery (Empresa Nacional del Petróleo). Gregorio Refinery (Empresa Nacional del Petróleo).

Barrancabermeja Santander Refinery (Empresa Colombiana de Petróleos S.A. a.k.a. Ecopetrol). Cartagena Colombia. Refinery (Reficar S.A.). Apiay Refinery (Ecopetrol). Orito Refinery (Ecopetrol). Tibu Refinery (Ecopetrol).

Ecuador. An OPEC country. See Chapter 3.

Paraguay. Villa Elisa Refinery (Petropar).

Refinería La Pampilla (Repsol). Refinería de Talara (Petroperú). Refinería Iquitos Loreto (Petroperú). Refinería Conchan Peru. (Petroperú). Refinería Pucallpa (Maple Gas). Refinería El Milagro (Petroperú). Refinería Shiviyacu (Pluspetrol).

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