information for energy consumption as power and fuel to estimate the energy intensity (EI). Water consumption information is also modelled to estimate the water intensity (WI). The licensors that offered a design with better EI or WI scores would be given an advantage in the evaluation criteria and the LP model economic results. CO 2 emissions, both Scope 1 and 2, were also modelled in the LP. Every ton of CO 2 emitted was charged in the model as an operating expense. This resulted in two things: • It drove the model’s optimisation towards minimising CO 2 emissions. • It gave a comparison between technologies to see which best fits with the project’s sustainability goals. The final technology and licensor selection decision had many technical and commercial elements. However, the modelling work described played a major role in looking at both the technical and economic aspects. The challenges faced by Case Study 2 are similar to those encountered in Case Study 1: • The new land development project was costly and slow. • The large investment would require internal funding and joint venture partners. • Long-term market uncertainties. Conclusions The case studies outline key decisions made in these pro- jects to achieve investment-grade status. Various strate - gies were used, including: • Using low-cost feedstocks to the projects’ advantage. • Finding product market advantages through carefully studying current and forecasted market conditions. • Optimising the complex configuration and technology selection. • Strategic trading of Capex for Opex to increase ROI. As the global energy transition progresses, it is essen- tial to consider the conversion of crude oil to chemicals for facilities to remain profitable. These projects will face challenges, and solutions to these challenges are needed to achieve an investment-grade project. Projects end up stalled for years or ultimately cancelled because they can- not find adequate solutions, even when there are clear incentives for the project to exist. These challenges include: • Large investment sizes and the need for JV structuring. • Finding suitable land to build on and all of the permitting steps required. • Finding the right feedstock, which represents a large part of the operating costs. Projects will need to consider the sustainability goals of stakeholders, and a carbon neutrality roadmap will be required. Each project is unique, with different economic drivers and challenges. As the two case studies presented, projects can have similar challenges but require tailored solutions that fit their goals and situation. Therefore, it is essential to have a trusted partner who is experienced in working through the technical and economic challenges to give a tailored solution.
2 International Energy Agency (IEA), The Future of Petrochemicals, 2018. 3 Diwakar Rana, John Melancon Decarbonisation pathway for net-zero by 2050: Carbon neutrality roadmap strategy for an integrated refinery and petrochemical facility, Hydrocarbon Processing , January 2025. 4 Turner, J., Chan, T., Decarbonisation of industrial fired heaters using hydrogen fuel, YouTube, October 13, 2022, online: https://youtu.be/ WLN-o62x5wo?si=_Pqe_QfS_y_Y4SI2 5 Turner, J., Chan, T., Rabb, S., Using hydrogen to decarbonize indus- trial fired heaters, Chemical Engineering Progress , 2024, pp34-41. Aiche.org/cep. John Melancon is a Director of Process/Specialty Engineering at Fluor Corp with more than 16 years of experience in the EPC industry. As Fluor’s global technical expert in LP and economic modelling, he lev- erages his knowledge of process technologies to help clients optimise refinery operations and achieve profitable integration with petrochem - ical production. His experience includes process design and project management for upstream, LPG, refining, petrochemicals, base chem - icals, and specialty chemicals projects across feasibility, FEED, and detailed engineering phases. Melancon is a Registered Professional Engineer in the State of Texas and holds a BSc in chemical engineering from the University of Louisiana at Lafayette. Parveen Kalia is a Fluor Fellow specialising in master planning refin - eries and petrochemical facilities, with experience in both brownfield and greenfield projects. He is a global subject matter expert in linear programming and economic analysis. With 20 years of experience, his expertise spans process design, feasibility studies, and licensor selec- tion for refinery and petrochemical units. Kalia excels in generating financial models and has supported clients in making informed invest - ment decisions. He holds a bachelor’s degree in chemical engineering. Shankar Vaidyanathan is a Senior Fellow with Fluor Energy Solutions at Houston. He has 35 years of process technology and engineering experience. Vaidyanathan provides subject matter expert consultation for global downstream refining and chemicals mega projects. He holds a BSc in chemical engineering from Annamalai University, India. Ed Reyes is a Process Director at Fluor Corp with 24 years of experi- ence in the EPC industry. His experience includes process engineering for upstream, refining, and petrochemical areas for both grassroots and brownfield projects across all project phases from conceptual study through detailed engineering. Reyes’s expertise in process design, pro- ject execution, and knowledge of process technologies supports clients in optimising project scope and achieving successful project outcomes. He holds a BSc in chemical engineering from the University of Texas at Austin. Michelle Barber is a Principal Process/Specialty Engineer at Fluor Corp with more than 12 years of experience in the EPC industry. Her experi- ence includes process design, feasibility studies, and licensor selection for refinery and petrochemical units with a focus on financial modelling and Capex estimate support. Barber holds a BSc in chemical engineer- ing from the Massachusetts Institute of Technology. As the global energy transition progresses, it is essential to consider the conversion of crude oil to chemicals for facilities to remain profitable
References 1 International Energy Agency (IEA), Oil Market Report, July 2024;
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