Editor Rene Gonzalez editor@petroleumtechnology.com tel: +1 713 449 5817 Managing Editor Rachel Storry rachel.storry@emap.com Editorial Assistant Lisa Harrison lisa.harrison@emap.com Graphics Peter Harper Business Development Director Paul Mason Paul.Mason@petroleumtechnology.com ptq PETROLEUM TECHNOLOGY QUARTERLY Vol 30 No 4 Q3 (Jul, Aug, Sep) 2025
Expand product diversity with hydrocracking
T he global refining industry is competing in a fuels and petrochemical mar - ket demanding a wider diversity of products while also being challenged with emerging transportation sources (such as EVs), layers of regulations (for example, Euro VI), and mandates (such as plastics circularity). Nevertheless, hydrocarbon-based fuels and petrochemicals are expected to dominate the energy value chain for the next 25 years, with biomass-based feedstocks, alternative fuels, and circular polymers (such as polyethylene) becoming more dominant after 2030. Even with strong support and subsidies for alternative energy sources like solar and electric vehicles, capacity expansion for refining, LNG, and petrochemical con - tinues, particularly where populations and industry are expanding. In the summer of 2024, US oil demand rose above 21 million barrels per day (1.043 billion metric tonnes per annum [MMtpa]), its highest levels since 2019. Global demand hit a record of 103.8 million barrels per day (bpd) last year (104.3 MMtpa). Compared to 2024 (and despite lower prices), 2025 demand has dropped to roughly 19.5 million bpd of oil in the US. However, jet fuel demand increased more than 9% year-over-year, according to ADI Analytics. They also expect global SAF demand to grow roughly 6.5 times in 2025 as blending mandates in the EU and the UK come into force. According to Data Insights, the global hydrocracking cata- lyst market is projected to reach $397 million by 2033, exhibiting a CAGR of 3.9% during the forecast period (2025-2033). Market growth is primarily driven by ris- ing demand for cleaner and more efficient transportation fuels, stringent environ - mental regulations, and the expansion of refining capacity in emerging economies. In addition, there could be scope for integrating refinery hydrocrackers with eth - ylene steam cracker operations. Jeff Pro, Hydrocracking Market Specialist at Shell Catalysts & Technologies, recently stated that: “The hydrocracker can be further involved in chemicals circularity since the ethylene steam cracker has some resid- ual components that can then be sent directly back to the hydrocracker.” While precise global figures are not readily available, notable examples in the US of the central role hydrocrackers could play in refinery/steam cracker integration include the ExxonMobil Baytown Complex in Texas. This features a hydrocracker with a capacity exceeding 30,000 bpd and three steam crackers with a com- bined ethylene capacity of 3.6 Mtpa. The integration allows for flexible feedstock utilisation, including hydrocracker outputs, to produce a range of olefins. Another example is the Pemex Deer Park Refinery in Texas, which includes hydrocrack - ing capabilities co-located with petrochemical units, facilitating transfer of hydro- cracker outputs to steam crackers for olefin production. Converting low-value gas oil streams via hydrocracking yields high-value olefins feedstocks integrated with a steam cracking facility. The lower the BMCI (Bureau of Mines Correlation Index), the better the steam cracker feed to produce olefins. The BMCI is directly related to feed paraffinicity. This is why paraffins provide the highest yields of ethylene and other olefins. Along with leveraging hydrocracking units for increasing fossil fuels, biofuels coprocessing, and lubricants quality and flexibility, integrating hydrocrackers with steam crackers is gaining traction as refineries seek to enhance profitability and adapt to changing market demands. By directing hydrocracker outputs, such as naphtha and other light hydrocarbons, into steam crackers, facilities can increase the yield of high-value olefins like ethylene and propylene. This approach aligns with the industry’s shift towards producing more petrochemicals directly from crude oil, often referred to as ‘crude-to-chemicals’ strategies. Rene Gonzalez
tel: +44 7841 699431 Business Development Luke Massingham Luke.Massingham@ petroleumtechnology.com Managing Director Richard Watts richard.watts@emap.com Circulation Fran Havard
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PTQ Q3 2025
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