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.
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