Honeywell in Refining
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Honeywell Process Solutions HPS INTRODUCTION, MARKET OVERVIEW AND TECHNOLOGY UPDATE P.G.Millette May-2017 Honeywell Oil & Gas Technologies Symposium – Cairo, Alexandria Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Agenda • Honeywell Process Solutions Overview • HPS activity • Market update & Trends • Technology Trends • Honeywell Technology update – summary - Innovation - LEAP - Joint HPS-UOP Solutions - IIoT Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. HPS - Serving Process Industries Refining & Petrochemical Oil & Gas & Midstream Our solutions are installed at more than Chemicals Power Generation 10,000 sites And renewables around the world Minerals, Metals & Mining Pulp & Paper Specialty / Batch Chemicals, Pharmaceuticals, Food, Water Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. HPS Egypt activity - examples EXAMPLE ALEXANDRIA & WEST DESERT CUSTOMERS ALEXANDRIA ALEXANDRIA SIDI KERIR AMREYA PETROLEUM CO. MINERAL OIL PETROCHEM CO. PETROLEUM (APC) (AMOC) (SIDPEC) REFINING CO. (Refining) (Refining) (Petrochemical) (Refining) EGYPTIAN MISR KHALDA ABU QIR POWER MIDOR PETROCHEM CO. PETROLEUM CO. PETROLEUM CO. STATION Refinery (EPC) (MPC) (KPC) (Power) (Refiining) (Petrochemical) (Refining) (Up Stream) EXAMPLE CAIRO & EAST & SOUTH OF EGYPT CUSTOMERS SUEZ MEDITOR. ABU SULTAN PETROBELL PIPE LINE CO. IDEAL STANDARD POWER STATION (Up Stream) (Pipe line) (Ceramic Manufacturing) (Power) (ENPPI) (SUMED) PROCTER ORIENTAL SUGAR INTERATED AND GAMBLE PETROCHEM CO. QUENA PAPER CO. INDUSTRIES CO. (Chemical ) (OPC) (P&P Manufacturing) (Sugar Manufacturing) (P&G) (Petrochemicals) (SIIC) Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Market Update - Oil • Oil price medium term in $50-60/bbl range - IHS sees longer term $80/bbl - Constrained by growing US production and any recovery in challenged areas – Nigeria, Libya Norwegian Mediterranean • MARPOL regulations change Sea Sea Sulphur reduction roadmap - 2020 Baltic Sea and Japan / Korea North Sea 5 North America & US Caribbean Sea 4 3.5% Mexico China (incl. HK) (2019 – 0.5% S, Could go down to 3 0.1%) 2 Non Australia % Sulphur Sulphur % (S) ECAs 1 • ECA = 0.1% S (only exception is 0.5% China which will be 0.5% S in 2019) • Non ECA = 0.5% S by 2020 0.1% 0 ECAs Legend 2005 2010 2015 2020 2025 Existing Announced Future (Possible) • IHS says effect of MARPOL decision - 500KB/D shift HSFO to Marine Diesel - LSFO – HSFO differential widens to $40/BBl - LNG pick up as ship’s fuel for near shore areas – limited penetration globally - Shippers can opt to scrub on-board ship – leads to return of HSFO volumes to 2030 - Refiners in choices on whether to tackle deeper desulfurization . Refining margins spike in the implementation period and then settle . Significant advantage to higher conversion refineries during the ‘scramble’ Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Market Update - Gas • Gas and LNG production globally increasing – committed projects - Pacific basin will be in excess, push to Atlantic basin - American LNG making its way to Europe - China’s reaction to pollution concerns can have a significant impact • Crude oil price link, where exists – increasingly challenged - Short term & Spot LNG puts pressure long term contracts • LNG consuming markets diversifying - Infrastructure for logistics is growing • Prices remain subdued – price growth, modest over coming years Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Market Update / Trends - Refining • Ongoing, broad move to Euro VI / equivalent specs – globally Egypt Refineries – operating rate - E.g. India projects • Maximize operating rates / crude runs • Combining with Petrochemicals • Reliability – uptime focus – initiatives • Energy / Emissions Management • Maximizing yields from operations • Process Safety practices, Personnel Safety & Security • Longer term diesel disfavour in Europe – for passenger cars • Egypt – - Gasoline consumption growing 4.5%, Diesel 2% annually, LPG 4.2% - IHS - IMF sees 6%+ GDP by 2025; IHS sees <5% - Refinery configuration / demand profile – some adjustment - Pipeline & storage, import terminals/ infrastructure – some constraints - Subsidy reform will help - MARPOL response Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Gartner Predictions – persistent themes over recent years Dashboards Collaboration Situational Reflect social media Awareness Big Data Mobility… Leverage the BYOD & connections Technology Example from Honeywell OneWireless storage .. & Plant Wireless Cloud Analytics Reporting to Computing predictive Moving to complex service models 2017 Trends • Trend No. 6: Blockchains and Distributed Ledgers • Trend No. 1: Artificial Intelligence and Advanced • Trend No. 7: Conversational Systems Machine Learning • Trend No. 8: Mesh App and Service Architecture • Trend No. 2: Intelligent Apps • Trend No. 9: Digital Technology Platforms • Trend No. 3: Intelligent Things • Trend No. 10: Adaptive Security Architecture • Trend No. 4: Virtual Reality and Augmented Reality • Trend No. 5: Digital Twins Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. IIoT Solutions & Smart Plant Manufacturing Convergence of Key IT Trends into IIOT Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Egypt - Modernization Program Initiatives The country’s vision is for the oil and gas sector to Investment Streamline current concession processes and continuously unlock the sector’s full value chain potential Attraction expand concession agreement portfolio as a growth and a sustainable development engine for Egypt to achieve financial sustainability, become regional oil and gas hub and a role model for the future of Create single SOE coverage across the value chain, Structuring modernized Egypt by 2021. and rationalize portfolio of both operations and Reform companies involved in the Egyptian industry Introduce comprehensive talent management Organization Health Organization People Agenda system and redeploy people to drive efficiency Optimize downstream and petrochemical sourcing, Downstream output and mass balancing. Drive operations performance transformation Upstream Drive operations performance transformation Fits with Honeywell focus Accelerating the pace of action Performance Regional Oil & Optimizing and leveraging existing oil and gas Accelerating projects Gas Hub transport and storage infrastructure Capturing more value sooner Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Example - Refining Margin walk + Crude Oil Crude Oil Refinery Operating Net Cash Transport Cost Configuration Expenses Margin Cost effect $ / / $ Barrel Finished Finished Product Value - Refinery Cost Demand Plan & Purchase Matching Sell & Distribute Capability Profile Profile Manage Performance Refinery People, Skills, Units, Safety, Environment, Assets, Maintenance, Energy Blending / Power & Utils Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Refinery Capability & Performance Management: Maximizing Utilization / Minimizing costs • Higher on-stream factors Refinery Operating • Better constraint + Crude Oil Crude Oil Net Cash Transport Cost Configuration Expenses Margin Increase Capacity Usage management Cost effect • Unit & Multi-Unit Reduce Cost optimization $/bbl Country Avg NCM 20 Brazil Expand • Reduce product 15 Increase Yield giveaways 10 Margins 5 • Reduction in energy 0 Improve Agility usage -5 -10 -15 • Reduction in utility Source: Wood Mackenzie Improve Quality $ / Barrel / $ consumption • Faster response to changing crude slates Finished Product Value Product Finished Faster Diagnostics Improve • Better scheduling and Reliability Better Monitoring blending decisions • Reduction in maintenance - Longer Run Length costs • Lower production losses Emissions • Less equipment damage Manage from repeated shutdowns HS&E Abnormal Situation Mgt • Lower compliance costs • Fewer incidents Value potential – 25-75¢/Bbl • Less unplanned shutdown Priorities: individual to each refinery – how to focus? time Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Refinery Operating + Crude Oil Crude Oil Net Cash Transport Cost Configuration Expenses Margin Cost effect $ / Barrel / $ Refinery Capability: solution space Value Product Finished - Access Control Terminal mgmt & product loading Flare Systems Digital Video Offsites Movements mgmt Corrosion Detection Wireless network & and Monitoring solutions UOP Process Units – licenses, equipment & catalyst Personal Protective Equipment, incl personal gas detectors Field Instruments Asset Health basic diagnostics (instruments, valves) Asset Tracking RFID Fire & Gas Detection Systems Training Simulators Abnormal Situation Management Alarm Management Process Design Simulations Rotating Machine Safety Instrumented System control Site Wide, Perimeter & Process Video Control System Site Security & Perimeter Monitoring, Power & Electrical Intrusion Detection SCADA Honeywell Confidential - © 2017 by Honeywell International Inc. All rights reserved. Refinery Operating + Crude Oil Crude Oil Net Cash Transport Cost Configuration Expenses Margin Cost effect $ / Barrel / $ Performance Management: solution space Value Product Finished - Refinery-Wide Planning – Long, medium & short term