A joint venture of Shell Oil Co. and Petroleos Mexicanos has begun a major refinery upgrade at Shell's Deer Park, Tex., manufacturing complex.
Shell and Pemex said ground breaking for the 2 year long construction project marks the beginning of a new era for Deer Park Refining Ltd. Partnership (Dprlp), formed last February.
Upon completion in mid-1995, the $1 billion upgrading program will enable the 215,900 b/cd refinery to process as much as 100,000 b/d of heavy Mayan crude oil to be supplied by Pemex, while at the same time reducing air emissions. The plant's crude charge capacity will not change.
New process units to be included in the upgrade are a 50,000 b/d delayed coker, 32,000 b/d gas oil hydrotreater, two 200 ton/day sulfur recovery units (SRUs), and a cogeneration plant capable of producing 150,000 kw of electrical power and 13 million lb/hr of steam.
Construction began earlier of two related process units that produce clean fuel components: an alkylation plant capable of producing 16,800 b/d of heavier hydrocarbon gasoline additives and a 5,000 b/d methyl tertiary butyl ether plant. Revamp of a crude distillation unit is included in the program.
Shell and Pemex have received permits for the coker and related facilities from the Texas Air Control Board (TACB) and have begun site preparation for the coker. Dprlp partners expect to receive a TACB permit for the cogeneration plant in time to start preparing that site in the fourth quarter.
WIN-WIN SITUATION
Phil Carrol, Shell president and chief executive officer, said the Dprlp arrangement is a win-win situation for both partners. Expected improvements in operating efficiency and flexibility will enable the Dprlp refinery to compete with the world's best, while achieving a net reduction of air emissions. General partner Shell is to continue operating and managing the plant.
Francisco Rojas, Pemex director general, said the start of construction is another milestone in the company's efforts to become more competitive and outward looking.
"Our partnership with Shell complements our restructuring efforts as we further internationalize our business focus," he said.
The Dprlp delayed coker will convert petroleum pitch into petroleum coke and liquid feed for conversion in other process units to jet fuel, diesel, and gasolines that meet standards of the Clean Air Act amendments.
Sulfur and nitrogen will be removed from various products by the gas oil hydrotreater, leaving them more suitable for conversion feed to other process units.
Sulfur recovered by the SRUs is to be sold on international markets.
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