Oil & Gas Journal - September 7, 2015

FIG. 7

This can include FCC-clarifed oil and summer pentanes.

POST-EXPANSION INCREMENTAL PRODUCTION YEILDS

NGLs

4%

ULSD, 71%

Gasoline 17%

Coke, sulfur, and refnery offgas

2%

Other liquids, 6%*

simple pretax payback period of 15-18
months.
The second installment of this ar-
ticle will provide details of the specific
modifications made to achieve pro-
cessing improvements included as part
of the refinery’s expansion.

This continued presence minimized scope creep.

Project cost, economics

The project’s budget was $70 million, of which about 65% went toward ISBL additions and modifications associated with the refinery’s actual expansion. Another 8% went toward owner-driv-en ISBL improvements not specifically related to the expansion project. About 80% of that collective ISBL amount involved work executed by KPE and included under the LSTK agreement.

OSBL work constituted only 8% of the budget, with the remainder going toward owner’s costs and contingency.

Fig. 6 shows the budget for the Tyler refinery expansion project.

The project’s final cost met the budget amount.

The refinery’s increased crude processing capacity will also yield a large volume of ultralow-sulfur diesel on an incremental basis (Fig. 7).

Based on May 2015 crude oil and refined products future prices, the project’s anticipated economic benefits currently appear more attractive than projected and should result in a

The authors

James W. Jones ( jw-jones@turnermason. com) is a senior vice-president with Turner, Mason & Co. He leads assignments that involve refinery process technology studies, project management, and petroleum economics. Jones joined the firm in 1994 after 18 years with La Gloria Oil & Gas Co., where he held numerous positions at their Tyler, Tex., refinery, including 8 years as operations manager.

He holds a BS in chemical engineering from the University of Texas, Austin, and an MBA from the University of Texas, Tyler. Jones is a licensed professional engineer in Texas.

Frank Simmons (frank. simmons@delekrefining. com) is vice-president of refining best practices for Delek Refining Ltd., where he works with both the Tyler and El Dorado, Tex., refineries to identify and implement best practices in all areas of operations.

He previously served as manager of Delek’s Tyler refinery, before which he worked as a process engineer with La Gloria Oil & Gas Co. Simmons holds a BS (1985) in chemical engineering from the University of Texas, Austin.

Tony Freeman ( tfree-man@kpe.com) is principal process engineer at KP Engineering LP, Tyler, Tex., with 27 years of experience in refinery process design. He holds a BS in chemical engineering from the University of Arkansas and is a registered professional engineer in Texas and Oklahoma.