Asia

PetroChina Daqing Petrochemical Refinery Achieved Over US$ 0.40 per bbl in Implemented Benefits

KBC consultants implemented a Profit Improvement Program (PIP) at PetroChina Daqing Petrochemical Company. The client had three objectives for the PIP: (i) to improve refinery gross margins by US$ 0.40 per bbl; (ii) to apply best practice management methodology and technology; (iii) to learn from KBC its PIP methodology, in particular, how to sustain and continue profit improvement for long-term cost reduction and higher margins. The total identified opportunities for the entire PIP project was US$ 0.75 per bbl in crude.

Phase One of the eleven-month long PIP concentrated on identifying yield and energy improvement opportunities that required no capital investment. Phase One resulted in a 4.5% increase in diesel and 10% increase in wax yields, plus efficiency improvements in the utilities system. Phase One implemented opportunities equaled to US$ 0.13 per bbl, which enabled the program to pay for itself in the first year of the project.

Phase Two focused on further implementation and debottlenecking of major conversion units including the residue catalytic cracking and delayed coking units by optimizing operating conditions without investment on additional equipment, as well as finished product blending optimization. By the end of Phase Two, thirteen months after completion of Phase One we were able to test, implement, and sustain benefits of over US$ 0.40 per bbl of crude.

The success of this project was due to a positive partnership between PetroChina and KBC and the active participation by the PetroChina management and operating staffs in every step of the Profit Improvement Program.

Europe

The Profitable Way to Reduce CO2 Emissions

At the BP Gelsenkirchen site in Scholven, Germany, which includes a 21,400 t/d refinery with a world scale petrochemical complex, numerous energy initiatives have ensured that individual processes are amongst the most energy efficient in Europe. However, with the approach of CO2-related emissions taxation, there is further incentive to determine whether gaps in performance exist. full case study

Refinery and Petrochemical Asset Evaluations

N M Rothschild and Sons appointed KBC to perform a preliminary due diligence study on the potential purchase of downstream assets. It involved generating ten-year cash flow forecasts for EBITDA and capital costs for two European refineries and their associated retail, wholesale, and LPG businesses. Net Present Values were calculated and the gross margin risk was highlighted by generating two crude and product price scenarios. Refinery unit yield modeling was based on KBC's proprietary simulation model and price forecasts reflected our latest views on world oil supply and demand. Capital cost forecasts were based inter alia on the need to accommodate tighter product quality specifications. A special feature of this analysis included steps needed to maximize synergies with an adjacent petrochemical plant. Potential upgrading investments for residue and naphtha streams were also critiqued.

Another due diligence project with Rothschild involved the evaluation of a potential sale of specific chemical assets of the Jose de Mello group in Portugal. The fertilizer and industrial chemical businesses were modeled by sector, and a contribution was forecasted for each sector and EBITDA for each business. This involved price forecasting of the key streams, such as ammonia, caustic soda, and benzene. The study revealed the most critical exposures to international market price changes. Models were left with the client for further planning work.

Both of these contracts enabled Rothschild to advise a commercial strategy to its clients. The government was also apprised of KBC's work.

Refinery Capability Assessment

Following the acquisition of a couple of refining assets, KBC was requested by the new owners of a major Eastern European refinery to carry out a refinery capability assessment at both sites.

The potential opportunity list contained over 100 items across both refineries, and covered opportunities in the yield, energy, oil loss, planning and scheduling, and mechanical areas. The list included over 20 ideas, with an estimated value of over €50Million/yr, requiring no investment and offering easy implementation. One additional future suggestion covering diesel maximization at both refineries involved improving distillation performance and effective use of component streams to hit product specifications. full case study

Middle East

Quick Response Accelerates Client's VDU Revamp Project

The quick response and on-site application of KBC's tools and methodologies allowed Kuwait National Petroleum Company (KNPC) to proceed with a VDU shutdown and revamp with confidence after doubts about the project were raised by an EPC contractor. full case study

North America

Identified 50 Energy Projects Valued at $US 30M/YR in Savings

KBC Energy Services consultants recently performed an Energy Project Identification program for a North American 290KBPD hydrocracking refinery. The program identified 50 defined projects with energy savings of $US 30M per year ($US 0.33 per bbl), as well as some associated yield benefits through process debottlenecking. full case study

KBC Kicks Off Hydrogen System Evaluation for Clean Fuels

KBC has been awarded a project for ALON USA Big Spring Refinery in Texas to evaluate the plant's hydrogen system. The client is preparing to meet 2006 ultra low sulfur diesel specifications and future ultra low sulfur gasoline specifications. The refinery needs to verify the current hydrogen balance and evaluate the impact of the future hydrogen required to support the increase in hydrotreating severity. KBC will combine their processing expertise with the Linnhoff-March developed Hydrogen Pinch technology to identify cost-effective steps to ensure optimum use of hydrogen within the process units, minimum letdown of hydrogen to the refinery fuel gas system and optimum hydrogen production.

KBC to Perform US Department of Energy funded Energy Savings Assessments (ESAs)

KBC is pleased to announce that it has been chosen as one of several consultancies to perform US Department of Energy – funded Energy Savings Assessements (ESAs). As a Qualified Specialist under Oak Ridge National Laboratory (ORNL) Solicitation 6400005654, KBC will perform up to ten audits in 2006. Industrial energy users can apply for these assessments by visiting the following website:

www.eere.energy.gov/industry/saveenergynow/application.html

Applications will be accepted until December 9, 2005. The ESAs will start soon thereafter and extend through December 31, 2006 or until 200 ESAs are completed.

© KBC Advanced Technologies plc 2005