Luoyang Petrochemical’s newly built 2.6 million tons/year residue hydrogenation unit achieved successful commissioning on the first attempt

The 2.6 million tons per year residue hydrogenation unit is one of the key facilities in Luoyang Petrochemical’s refinery restructuring project; it is the largest single-series residue hydrogenation unit in China, with a total investment of over 1.2 billion yuan. This device utilizes proprietary technology owned by Sinopec with full intellectual property rights, and consists of components such as reaction, distillation, gas desulfurization, and utility systems. The facility was independently designed and constructed by Sinopec Luoyang Engineering Company; Sinopec Fifth Construction Company was responsible for the equipment installation, while Luoyang Petrochemical Engineering Group Company handled the supervision tasks.

Previously, Luoyang Petrochemical used a coking technology route; after the residue oil passed through the coking unit, most of it was converted into petroleum coke with very low added value. Currently, the company uses a fixed-bed residue hydrogenation process; after the residue undergoes hydrogenation, hydrogenated heavy oil is produced, which is then used as feedstock in catalytic units to be processed into lightweight products such as gasoline, coal oil, and diesel with high added value. The residue hydrogenation unit was built and put into operation, increasing the capacity for residue processing and raising the conversion rate of heavy oil. It provided more feedstock for the catalytic cracking unit, effectively reduced the workload of the coking unit, further optimized the product profile, improved resource utilization, and produced more high-value refined products, thereby achieving maximum efficiency in making the most of every drop of material.

“This device is also an environmentally friendly system; during its processing stage, it removes sulfur, residual carbon, and metals, and after catalytic cracking, it produces gasoline, coal oil, and diesel that meet **quality standards, thereby reducing pollutant emissions during use. Previously, the petroleum coke produced by this company using coking technology was mainly used as a low-grade fuel. ”said Deng Zhaoyang, deputy chief engineer of Luoyang Petrochemical. High-tech components ensure the high-level operation of the supporting system. Deng Zhaoyang explained that at present, this facility represents the international advanced level in terms of China’s petroleum processing technology, petrochemical engineering technology, and equipment manufacturing capabilities. The core equipment of this facility is the residue hydrocracking reactor; the diameter of its shell for a single unit reaches 5.6 meters, while the wall thickness is 310 millimeters. The total weight of the five reactors exceeds 4,000 tons, reflecting the highest standards of equipment design and manufacturing in China. At the same time, this device employs optimal process simulation technology, representing the highest level of process design in China. In addition, the 5 hydrogenation reactors of the high-pressure unit were manufactured using the forge-welding process, with on-site assembly, welding, and lifting – setting a precedent in the history of Luoyang Petrochemical for the on-site forge-welding production of ultra-heavy equipment.

The new 2.6 million tons per year residue hydrogenation unit covers an area of over 17,000 square meters. Its feasibility study report was approved by Sinopec Group in July 2017, while the overall design and preliminary design were approved by the same company in March and August 2018 respectively. The installation was completed on May 30, 2020, and entered the construction phase. Next, Luoyang Petrochemical will continue to carry out optimization efforts, exploring further improvements in areas such as operational optimization and energy conservation to continuously enhance the performance of its facilities.

At present, a number of major projects, including the Luoyang Petrochemical refining structure adjustment project, the Rizhao-Puyang-Luoyang crude oil pipeline, the second phase of the commercial crude oil reserve depot project, the Luoyang Petrochemical-Xinzheng Airport jet fuel pipeline, and ethylene production facilities, are either set to be completed and put into operation or are in the planning stage. Once all these 5 landmark projects are completed, Luoyang Petrochemical’s crude oil processing capacity will exceed 10 million tons per year. The advantages of integrated refining and petrochemical production will be further enhanced, resulting in a significant increase in the company’s profitability and market competitiveness. This will contribute to the development of Luoyang as a secondary economic center, serving as a driving force for the formation of a new industrial cluster and establishing it as the largest high-end petrochemical industry base in the central and western regions. It will also play a key role in promoting the transformation and upgrading of the chemical industry in our province and further improving the level of its industrial chains.

Fixed-bed residue hydroprocessing requires high standards for the feedstock, and the period needed to replace the catalyst each time is relatively long. Although the initial investment for setting up such a reaction system is reduced, the subsequent maintenance and balance-related issues present significant challenges. When the coking unit at Luoyang was put into operation a few years ago, heavy oil was used to the fullest extent possible; however, this approach was quickly changed. The commissioning of fixed-bed residue hydroprocessing is indeed something to be celebrated, but the balance problems that may arise in such systems over time cannot be ignored

How much would the investment for a 1-million-ton fixed-bed hydrogenation plant be approximately?