Mel Larson - Becht Engineering
With the implementation of the IMO2020 emissions regulations, sulfur is now in sharp focus for the global refining industry. For large US refiners, the gasoline sulfur credits have been a cost to factor in for smaller ones this is a new issue in their quest for profitability. The removal of the waiver for small US refiners (ends Jan 2020), means that recently the price for all sulfur credits in 2020 has shot up 250%.
Both the IMO regulations and the credits have impacted the economics of an individual refinery, but both can have the same mitigation path. The presentation discusses the range of mitigation options available and how this could be an opportunity to set the refinery up for the future? The nature and extent of the impact and thus the solutions depend on location with PADD 1/ 2 / 3 metallurgy and processing competition being very different.
Through further identification of the changes globally, there are several other factors that can play into this mitigation decision making process. The presentation will highlight the general global increase in octane demand, the different crude oil diets and high sulfur bunker feed opportunities. This knowledge is combined to outline the differing technical and operational challenges that refiners face. The presentation concludes with the optimization options that would best support the various external influences and maximize the assets’ potential.