SKs Lube Base Oil Production Successful Completion of
SK’s Lube Base Oil Production - Successful Completion of 2 nd LBO Project Sook-Hyung (Sam) Kwon Vice President & Project Director
Overview of SK Corporation Establishment October 1962 Asset 14. 9 Billion US$ (2004) Sales 17. 4 Billion US$ (2004) Employees Business Areas 4950 Persons Ø Ø Ø Oil Exploration & Production Petroleum Refining Chemicals Gas, Coal, Lubricants Technology Business New Business ( Online / Offline ) SK Corp’s highly integrated Ulsan Complex is one of the largest single-site refinery in the world, having refining capacity of 840, 000 bpsd. 2 G 050060 Template 4 Hydro. Sympo
History of SK’s Lube Base Oil Production #1 LBO Plant • 1995: Commissioned #1 LBO Plant, Hydroprocessing-based, Conventional MLDW included SK UCO Lube Process Technology • 1997: Revamped to ISODEWAXING/Hydrofinishing Unit with ICR 408/407, Better Yield and Quality • 2003: Applied New ISODEWAXING Catalyst of ICR 422, Better Yield and Quality 3 G 050060 Template 4 Hydro. Sympo
History of SK’s Lube Base Oil Production #2 LBO Plant • 2004: Commissioned #2 LBO Plant, Hydroprocessing-based, included SK UCO Lube Technology • 2004: Increased Throughput by 20% • 2005~6: Planned to Revamp 4 G 050060 Template 4 Hydro. Sympo
Application of Two LBO Plants LPG VGO Naphtha Fuels HCK Kerosene Diesel AR Vac. Distill UCO 70 D Vac. Distill 100 D #1 CDW 150 D Yubase 3, 4, 6, 8 70 D Vac. Distill 100 D #2 CDW 150 D 250 D #2 LBO Plant G 050060 Template 4 Hydro. Sympo 5
Overview of 2 nd LBO Project Period August, 2002~ June, 2004(23 months) Mechanical Completion : May 20, 2004 100% Operation : June 29, 2004 Capital Investment US$ 120 Million Vac. Distillation Unit Catalytic Dewaxing Unit Utilities and Offsite & Tankage Project Target Ø Ø Ø Fast-Track Schedule Quality and Safety Cost Saving 6 G 050060 Template 4 Hydro. Sympo
2 nd LBO Project • Fast Track Schedule – Involvement of Experienced Process Engineers from Planning to Start-up – Speedy Decision Making based on SK’s Accumulated Technology and Experience – Early Freezing of Process & Basic Engineering – Early Purchasing of Long-Delivery Equipment – Utilization of 3 D Model Design – Optimization of Precom. & Commissioning Activities – Dramatic Savings of Document Approval Period 7 G 050060 Template 4 Hydro. Sympo
2 nd LBO Project • Quality and Safety – Reflected Experienced Data and Procedure of 1 st LBO Project in Design, Procurement, Construction, and Startup Operation – Audited Major Engineering Design Results by 3 rd Party – Crosschecked Design Quality between CDW Licensor and Basic Engineering Co. – Dispatched Resident Experts to Manufacturing Shop of Major Equipment Vendors – Strengthened Safety Mind and Behavior through Periodic Safety Committee – Double Checked High Pressure Welding Qualities 8 G 050060 Template 4 Hydro. Sympo
2 nd LBO Project • Cost Saving – Minimized Spare Parts and Bump Factor by 3 D Model Design and SK’s Experience – Minimized Trial and Errors from #1 LBO Experience – Optimized Design by Removing Unnecessary Items – Optimized Precom. & Commissioning Activities – Purchased Major Equipment Economically 9 G 050060 Template 4 Hydro. Sympo
Start-up Performance Description Planned Actual 7, 000 350 360 - Hydrofinishing Lube Product Yield, % Product Quality 232 Base 232 +2. 0 - Viscosity Index Any Bottlenecked Items Base +1 Throughput, B/D Reactor Temperature, Deg. C - Isodewaxing - Towers - Heaters and H-exchangers - Rotating Machine - Utilities G 050060 Template 4 Hydro. Sympo None 10
Summary of 2 nd LBO Project Description Planned Actual EPC Schedule, months 26 21. 7 Commissioning and Start-up, months 3 1. 3 - None - 2, 950, 000 5 22 Capacity, B/D * 7, 000 8, 400 Product Yield and Quality Base Better Fast-Track Schedule Quality and Safety Number of Accidents Consecutive No Accidents Recorded, MH Cost Saving, % of TIC * Feed rate was increased within one month after start-up. 11 G 050060 Template 4 Hydro. Sympo
Success through Partnership with CLG • Design Review – CLG reviewed all important design documents related to the IDW unit. – CLG assisted conformity check of equipment and plant. • Catalyst Selection – SK and CLG did joint testing for catalyst selection. • Start-up Assistance – CLG supported technical services for start-up. 12 G 050060 Template 4 Hydro. Sympo
Future Partnership with CLG • SK challenges CLG to improve lube quality/yield further by developing next-generation ISODEWAXING and ISOFINISHING catalysts. • SK/CLG’s driving forces to improve lube qualities are now extending to the Hydrocracking catalysts. • SK/CLG collaborate on validation of new technology and ideas in Hydroprocessing chain related to lube base oil production. 13 G 050060 Template 4 Hydro. Sympo
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