1.

Executive Summary

1-1

1.1

Overview

1-1

1.2

Project Description

1-3

1.3

Process Configuration

1-6

1.4

Capital Cost Estimates

1-8

1.5

Execution Plan

1-9

1.6

Financial Evaluation

1-12

1.7

Conclusion and Analysis of Results

1-14

1.8

Recommendations

1-18

1.9

Addendum

1-21

2.

Introduction

2-1

2.1

General

2-1

2.2

Scope of Work

2-2

2.3

Case Description

2-7

2.4

Study Methodology

2-14

2.5

Information Sources

2-21

2.6

Yield Confirmation Results

2-23

2.7

UP-II Plant Tests

2-24

2.8

Study Limitations and Assumptions

2-25

3.

Process Configuration

3-1

3.1

Overview

3.1-1

3.1.1

Site Location and Considerations

3.1-1

3.1.2

Overall Block Flow Diagrams and Stock Material Balances

3.1-2

3.1.3

Process Units

3.1-12

3.1.4

Utilities, Offsites, and Tankage

3.1-19

3.1.5

Infrastructure and Common Facilities

3.1-27

3.1.6

Environmental Considerations

3.1-29

3.2

Study Design Basis

3-2

3.2.1

General Design Criteria

3.2-1

3.2.2

Feed and Design Process

3.2-3

3.2.3

Process Units

3.2-4

3.2.4

Utilities, Offsites, and Infrastructure

3.2-5

3.3

Process Units

3-3

3.3.1

Overall Refinery Process Description

3.3-1

3.3.2

Evaluated of Modified Process Units

3.3-10

3.3.3

Lube Base Oils Complex Process Units

3.3-60

3.3.4

Equipment Lists

3.3-88

3.4

Utilities, Offsites, and Tankage

3-4

3.4.1

Overall Description

3.4-1

3.4.2

Utility Systems

3.4-1

3.4.3

Offsite Systems

3.4-18

3.4.4

Tankage and Shipping Systems

3.4-25

3.4.5

Equipment Lists

3.4-26

3.5

Infrastructure and Common Facilities

3-5

3.5.1

Infrastructure Description

3.5-1

3.5.2

Common Facilities Description

3.5-1

3.6

Pilot Plant Development

3.6-1

4.0

Capital Cost Estimates

4-1

4.1

Overview

4-1

4.2

Estimate Basis

4-2

4.2.1

General

4-5

4.2.2

Components, Definitions, and Methodology

4-5

4.2.3

Qualifications and Assumptions

4-10

4.3

Capital Cost Estimates

4-13

4.3.1

Total Project Costs

4-13

4.3.2

EPC Costs

4-13

4.3.3

Owner’s Costs

4-13

4.3.4

Alternatives Considered

4-15

4.4

Contingency and Risk Analysis

4-19

5.0

Execution Plan

5-1

5.1

Overview

5-1

5.2

Master Project Schedule

5-2

5.3

Phase 1-B and Phase II Project Execution Plan

5-9

5.4

Phase III Project Execution Plan

5-11

5.5

Training Programs

5-28

5.6

Constructability Program

5-32

6.0

Financial Evaluation

6-1

6.1

Overview

6-1

6.2

Basis and Definitions

6-2

6.2.1

Financial Model

6-3

6.2.2

Project Life

6-8

6.2.3

Capital Costs

6-13

6.2.4

Working Capital

6-14

6.2.5

Interest During Construction

6-14

6.2.6

Feedstock

6-14

6.2.7

Operating Expenses

6-15

6.2.8

Salvage Value

6-22

6.2.9

Escalation

6-22

6.2.10

Taxes

6-22

6.2.11

Depreciation

6-25

6.2.12

Product Rates

6-25

6.2.13

Product Prices

6-25

6.2.14

Onstream Days

6-26

6.3

Preliminary Project Financing Plan

6-26

6.3.1

Sources of Funding Terms and Conditions

6-27

6.4

Financial and Sensitivity Analysis

6-28

6.4.1

Financial Analysis

6-28

6.4.2

Sensitivity Analysis

6-28

6.4.3

Analysis of Results

6-54

6.5

Financial Analysis Printouts

6-56

7.0

Recommendations

7-1

7.1

Near Term Recommendations

7-1

7.2

Recommendations for Next Phase

7-2

7.2.1

Technical Issues

7-2

7.2.2

Commercial Issues

7-4

8.0

Opportunities for U.S. Sources of Supply

8-1

8.1

Summary

8-1

8.2

Breakdown of Goods and Services

8-1

8.3

Suggested Lists of U.S. Suppliers

8-2

1.

Boilers

8.3-1

2.

Turbines – General Purpose

8.3-1

3.

Turbines – Special Purpose

8.3-1

4.

Engines (Drivers)

8.3-1

5.

Engines – Gas or Multi-Fuel – Non Integral Compressor Drivers

8.3-1

6.

Compressors

8.3-1

a.

Centrifugal Compressors API

8.3-1

b.

Reciprocating Compressors

8.3-1

c.

Instrument and Plant Air Compressors

8.3-1

d.

Rotary Compressors

8.3-1

7.

Pumps, Reciprocating

8.3-2

8.

Pumps, Centrifugal & Rotary

8.3-2

a.

Centrifugal Horizontal – General Service

8.3-2

9.

Pumps, Centrifugal & Rotary

8.3-2

a.

Centrifugal Vertical – General service

8.3-2

b.

In Line and API Process Centrifugal Pumps

8.3-2

c.

Barrel (API)

8.3-2

d.

Submersible Pump

8.3-2

e.

Rotary

8.3-2

10.

Pumps, Miscellaneous

8.3-2

a.

Metering Pumps

8.3-2

b.

ANSI Pumps

8.3-3

11.

Mechanical Seals

8.3-3

12.

Hoisting & Lifting Equipment

8.3-3

13.

Vessels/Columns/Drums

8.3-3

14.

Heavy Walled Vessels and Reactors (>3” Thick)

8.3-3

15.

Column Trays & Internals

8.3-1

16.

Fired Heaters

8.3-3

17.

Burners

8.3-4

18.

Blowers

8.3-4

19.

Heat Exchangers (Specialty Type)

8.3-4

20.

Shell & Tube (High Pressures)

8.3-4

21.

Shell and Tube (General)

8.3-4

22.

Surface Condensers

8.3-5

23.

Air Cooled Exchangers

8.3-5

24.

Double Pipe Exchangers

8.3-5

25.

Plate Hear Exchangers

8.3-5

26.

Chemical Injection Systems

8.3-5

27.

Chlorinators

8.3-5

28.

Deaerator

8.3-6

29.

Superheater

8.3-6

30.

Ejectors and Educators

8.3-6

31.

Filter Separators

8.3-6

32.

Flare Stacks

8.3-6

33.

Silencers

8.3-6

34.

Mixers & Agitators

8.3-6

35.

Instrument Air Dryer Systems

8.3-7

36.

Coalescers

8.3-7

37.

Dust Collectors

8.3-7

38.

Dissolved Air Flotation Systems

8.3-7

39.

Nitrogen Plants

8.3-7

40.

Inert Gas Generators

8.3-7

41.

Seawater Strainers

8.3-7

42.

Sample Coolers

8.3-7

43.

Demineralizers

8.3-7

44.

Lime Feed and Slurry Agitators

8.3-8

45.

Sanitary Lift Stations

8.3-8

46.

In Line Mixers (Static)

8.3-8

47.

Electric Tank Heaters

8.3-8

48.

Refrigeration Systems

8.3-8

49.

Water Filters

8.3-8

50.

Sewage Treatment Plants (Packages)

8.3-8

51.

Seawater Hypochlorite Generators

8.3-8

52.

Water Clarifiers

8.3-9

53.

Waste Water Clarifiers

8.3-9

54.

C.P.I. Oil Separators

8.3-9

55.

Marine Loading Arms

8.3-9

56.

Flame Arresters

8.3-9

57.

Traveling Screens

8.3-9

58.

Instruments, Meters, and Gauges

8.3-9

a.

Pressure Transmitters (Smart)

8.3-9

b.

Pneumatic Local Controllers

8.3-9

c.

P, DP & T Transmitters

8.3-9

d.

Pressure Gauges

8.3-9

e.

Draft Gauges

8.3-9

f.

Flow Switches (Thermal)

8.3.10

g.

Transmitters – Smart & Electronic (DP, Mass or Coriolis, Magnetic, Electric Vortex)

8.3-10

h.

Temperature Transmitters (Smart)

8.3-10

i.

Temperature Indicators

8.3-10

j.

Thermocouples

8.3-10

k.

Tube Fittings

8.3-10

l.

Pneumatic Relays

8.3-10

m.

Positive Displacement Type

8.3-10

n.

Variable Area Type

8.3-10

o.

Pilot Tubes

8.3-10

p.

Flow Sight Glasses

8.3-10

q.

Turbine Meters

8.3-10

r.

Orifice Plates & Meters Runs

8.3-11

59.

Level Instruments

8.3-11

a.

Displacement Transmitters & Controllers (Electronic & Pneumatic)

8.3-11

b.

Differential Pressure Type Transmitters

8.3-11

c.

Tank Gauging Systems

8.3-11

d.

Gauge Glasses

8.3-11

e.

Level Interface - Capacitance

8.3-11

60.

Control Valves8.5-8.3-11

8.3-11

a.

Globe or Cage Type

8.3-11

b.

Butterfly Type

8.3-11

c.

Ball Type

8.3-11

d.

Low Noise Valves

8.3-12

e.

Self Contained Regulators

8.3-12

f.

Filter Regulators

8.3-12

g.

Piston Type On/Off Valve Actuators

8.3-12

h.

Electric Motor Valve Actuators

8.3-12

61.

Pressure Relieving Devices

8.3-12

a.

Relief Valves

8.3-12

b.

Tank Vents

8.3-12

62.

Traps & Strainers

8.3-12

63.

Strainers

8.3-12

64.

Switches, Solenoid Valves, Annunciators

8.3-12

a.

Level Switches

8.3-12

b.

Pressure and Filled System Temperature Switches

8.3-13

c.

Solenoid Valves

8.3-13

d.

Annunciators

8.3-13

e.

Current Switches

8.3-13

65.

Panel Instruments

8.3-13

a.

Miniature Receiver Instruments

8.3-13

66.

Analytical Instruments

8.3-13

a.

Oxygen

8.3-13

b.

pH

8.3-14

c.

Analyzer Systems or Sampling Systems

8.3-14

d.

Distillation, Viscosity

8.3-14

e.

Conductivity

8.3-14

f.

H₂S Analyzer (Process)

8.3-14

g.

Radial and Axial Displacement Instruments

8.3-14

h.

Speed Transmitters

8.3-14

i.

Water Hardness

8.3-14

j.

Flame Failure System

8.3-14

k.

Gas Specific Gravity

8.3-14

l.

Reid Vapor Pressure

8.3-14

m.

Residual Chlorine

8.3-14

n.

Colorimetric Switches

8.3-14

o.

So₂, NO, NO_x8

8.3-15

p.

Water Hardness

8.3-15

q.

Moisture

8.3-15

r.

Chromatograph

8.3-15

s.

Power Point

8.3-15

t.

Boiling Point/End Point

8.3-15

u.

Water Quality

8.3-15

v.

Thermometers

8.3-15

67.

Detectors, Ambient Gas Monitoring

8.3-15

a.

H₂S

8.3-15

b.

Combustible Gas

8.3-15

c.

Flame Scanner VV/IR

8.3-15

68.

Programmable Controllers

8.3-15

69.

Distributed Control Systems

8.3-16

70.

Generators, Transformers, Batteries

8.3-16

a.

A C Generators

8.3-16

b.

Batteries and Chargers

8.3-16

c.

Cathodic Protection Equipment

8.3-16

d.

Neutral Grounding Resistors

8.3-16

e.

Power Transformers

8.3-16

f.

Transformers – (Dry Types) - Lighting

8.3-16

71.

Electric Motors

8.3-16

72.

Major Electrical Equipment (Motor Control Centers)

8.3-16

73. 

Major Electrical Equipment (High Voltage)

8.3-17

a.

Pushbutton – Control Station

8.3-17

74.

Starters (480V) – Explosion Proof

8.3-17

75.

Transfer Switches (Automatic) – Low Voltage

8.3-17

76.

Bus Duct System

8.3-17

78.

Switchgear (480 V) Low Tension

8.3-17

79.

Switchgear (Medium Voltage and High Voltage)

8.3-17

80.

Transfer Switches (Automatic) – High Voltage

8.3-17

81.

Cable Trays and Troughs

8.3-18

82.

Connectors (power)

8.3-18

83.

Heating Cable (M. I. Cable & Control)

8.3-18

84.

Conductors (Instrument Wire)

8.3-18

85.

Conductors (Thermocouple)

8.3-18

86.

Conductors (600V and Above)

8.3-18

87.

Communications Cable

8.3-18

88.

Cable Marking System

8.3-18

89.

Emergency Lighting System

8.3-18

90.

Panelboards (Lighting and Power)

8.3-19

91.

Condulet Type Fittings

8.3-19

92.

Communication Systems

8.3-19

93.

Piping

8.3-19

a.

Pressure Cast Iron Pipe

8.3-19

b.

Cast Iron Pipe – Soil Pipe

8.3-19

c.

Alloy and Stainless Steel Pipe

8.3-19

d.

Aluminum and Brass Pipe

8.3-19

e.

Carbon Steel Welded Pipe (Other Than Spiral)

8.3-19

f.

Carbon Steel Welded Pipe (Steel)

8.3-19

g.

Stainless/Carbon Steel Pipe

8.3-19

h.

Galvanized - Pipe

8.3-19

94.

Alloy Steel – Ball Valves

8.3-20

95.

Alloy Steel – Check Valves

8.3-20

96.

Carbon Steel – Ball Valves

8.3-20

97.

Carbon Steel – Check Valves

8.3-20

98.

Alloy Steel – Gate and Globe Valves

8.3-20

99.

Carbon Steel – Gate and Globe Valves

8.3-21

100.

Butterfly Valves

8.3-21

101.

Carbon Steel – Plug Valves

8.3-21

102.

Slide - Valves

8.3-21

103.

Needle - Valves

8.3-21

104.

Carbon Steel Screwed and Socket Welded Valves (All Type)

8.3-21

105.

Alloy and Stainless Steel Flanges

8.3-21

106.

Alloy Fittings and Flanges

8.3-22

107.

Alloy and Stainless Steel Butt Weld Fittings

8.3-22

108.

Alloy and Stainless Screwed and Socket Weld Fittings

8.3-22

109.

Carbon Steel Butt Weld Fittings

8.3-22

110.

Carbon Steel Flanges

8.3-22

111.

Carbon Steel Screwed and Socket Weld Fittings

8.3-23

112.

Plate – Carbon Steel

8.3-23

8.4

Probable U.S. Locations for Sources of Supply

8-2

9.0

Addendum

9-1

9.1

Overview

9-1

9.2

UP-II Balances Operations

9-2

Introduction

9-2

Case Descriptions

9-2

Process Unit Evaluations

9-4

9-16

9.3

Adjustments Due to Yield Confirmation Study Results

9-17

9.3.1

Introduction

9-17

9.3.2

9-18

9.3.3

9-42

9.4

UP-II Plant Tests

9-47

9.4.1

Overview

9-47

9.4.2

High Vacuum Unit

9-48

9.4.3

Hydrogen Plant

9-50