Thai Oil Refinery-wide Optimization Vision & Utilities Optimization Case Study

2. Thai Oil Refinery-wide Optimization Vision & Utilities Optimization Case Study Session ID #: PBSS214 Presented by: Chanchana Payungwong, Thai Oil Group 11/9/11

3. Agenda Today • Introduction to TOP group • Introduction to Real Time Optimization • Best Practices for Refinery Optimization • Overview Thai Oil Refinery-Wide Optimization System • Thai Oil Utility Optimization Case Study • Objective • Project team execution • Work Scope • Optimized and Constraint Variables • System Configuration • Implementation Result & Current Performance • Conclusion and Next Step

4. Introduction to TOP – Where is TOP? TLB TOP IPT TP TPX

5. Introduction to TOP – Who are we? Oil Refinery Petrochemical & Lube Base Power Generation Transportation & Others J-Power 19% PTT 26% 100% 100% 100% 55% 100% Thaioil Ethanol (TET) Thai Oil(TOP) Thai Paraxylene(TPX) Thai Lube Base(TLB) Thaioil Power(TP) Thaioil Marine(TM) Aromatics Capacity: PX 489 KTA MX 90 KTA BZ 177 KTA TL 144 KTA TOTAL 900 KTA Lube Base Oil Capacity:Base Oil 270 KTA Bitumen 400 KTA Oil & Chemical TankersCapacity: 152,500 DWT Sells Electricity & steam to Group Capacity: 275 KBD Mitr Phol Group 35% Padaeng 35% 30% Others 60% Small Power Producer (SPP) Program3-on-1 Combined Cycle Electricity 118 MW Steam 168 ton/hour 9% PTT 31% Maesod Clean Energy (MCE) 56% Thappline(THAP) Sugarcane Based EthanolCapacity: 200,000 lit/day PTT 20% 100% TOP 24% Multi-product pipelineTotal Capacity:26,000 million lit/year 50% Saptip (SAP) Independent Power (Thailand )(IPT) Thaioil Solvent via TOP Solvent (TS) 100% Cassava Based EthanolCapacity: 200,000 lit/day Solvent distribution In Thailand 1st IPP Program2-on-1 Gas-Fired,Combined Cycle Electricity 700 MW 20% 80.52% 100% TOP Solvent Vietnam SakChaisidhi (SAKC) PTT Group 80% 100% PTT ICT Solutions(PTT ICT) Capacity: 100,000 lit/year Solvent distribution In Vietnam Thaioil Energy Service (TES) Core Business Value Enhancement Earning Stability Marketing / IT Support

6. Introduction to TOP – Vision, Mission and Value

7. Introduction to Real Time Optimization • RTO • Real-Time Optimization • ROMeo • Rigorous Online Modeling and Equation-Based Optimization

8. Time and Scope of Comparison Feedstock Selection Product Demand/Supply Operating Targets Scope Planning/ Scheduling Operations Optimization Site Pricing Online Optimization Targets Plant/ Unit Plant Operation Plant Interaction Advanced Control Set Points Control Loops Equipment Operation Equipment Interaction Days Minutes Hours Time

9. Best Practices for Refinery Optimization APC Optimum point Max yield Min energy Quality Temperature Quality APC Pressure RTO !! CDU HVU Control temp, pressure, flow Without APC With APC With APC&RTO SPEC./ Energy SPEC./ Energy SPEC./ Energy Time Time Time

10. Overview Thai Oil Refinery Configuration

11. Overview Thai Oil Refinery-Wide Optimization System Scheduler and LP Planner RTO Status Done Refinery-Wide Offline Model (RWOM) On-going RTO Optimization Naphtha Splitter, CCR1,2, MXU, Isomerazation Plan SPIRAL Assay Data base Crude RTO Optimization TPX RTO Optimization CDU3/HVU3 CDU2/HVU2 CDU1/HVU1 RTO Optimization TLB (VDU) RTO Optimization Utility RTO Optimization FCCU RTO Optimization H2 Balance RTO Optimization HCU1 RTO Optimization HCU2

12. Thai Oil Utility Optimization Case Study Project award in end of Y2009 Kick-off meeting in mid of Jan 2010 Project Time frame: • Kick-off until FAT = 5 months • Open loop commission = 2 months • SAT = peak and off-peak period Optimization period = 0.5 hour % Convergence Y2011 = 86.4%

13. Utility Optimization Objective Online optimization • Maximize utility plant profit by optimizing fuel cost (Fuel gas, Fuel oil, Natural gas) for power consumption/export and satisfy steam requirements respecting all plant operation and contact constraints • Utility plant profit = Power export value – Fuel cost - Contract penalty Offline optimization • Utility Optimization Model for off-line study on start-up/shutdown GTG, STG, pump/motor turbine switch, utility operation changes

14. Utility Optimization – Solution of change Real-time optimization opportunity for utility plant includes: • Boiler and generators start up/shutdown frequently • Motor/turbine pumps and compressors switch • Electricity export change during peak and off-peak period and difference in weekdays, weekends and special period • Penalty if not satisfied electricity export contact • Fuel price difference • Disturbance from weather, process demand e.g. steam sootblow

15. Project Team Execution Project Manager Project Manager Project Coordinator Lead Engineer Lead Engineer Application Engineer Operator Process Technologist PI/RTO System APC/Base Layer

16. Steam System HHP Steam Header and Distribution 2 HHP Boilers & 4 HHP WHR Boilers HP Steam Header and Distribution 3 HP Boilers MP Steam Header and Distribution LP Steam Header and Distribution Motor/Steam Turbine changeable pumps and compressors Steam letdown Condensate recovery system Power System Electricity distribution 4 Gas turbines 8 Steam turbines 2 Diesel engine generators Fuel System Natural gas Fuel gas Fuel oil Boiler Feed Water System Utility Optimization Work Scope

17. Utility Optimization Work Scope

18. Optimized and Constraint Variables • Utility Optimization Variables • Gas turbine generator power production • Steam turbine generator power production • Fuel oil, Fuel gas consumption • Utility Optimization Constraints • Electricity export • Boiler steam production • GTG and STG steam production • Steam letdown each step • Operation constraints

19. Utility Optimizer Execution Sequence Optimized Set Points implemented by Operators • Operator • Plant

20. Database Steady = 1 Utility Optimizer System Configuration Operator Graphic User Interface PI Historian Read statusflags Read key rawMeasurements Read hourly avg.Measurements WriteResults Steady StateDetect (1 min) MSAC (4 min) ModelSequence Run Write Read

21. Implementation Result • Optimization benefits are results of the followings • Minimize boiler fuel oil and increase fuel gas to generate steam due to higher fuel oil price • Optimize steam boiler production in order to minimize overall fuel cost • Increase GTG power production and WHR steam generation because of lowest natural gas price and reduce STG power production to maintain steam and power balance • Optimize GTG power production in order to minimize overall cost

22. Current Performance • Y2011, utility optimization system runs average 39.6 times per day • % Convergence of utility optimization is average 86.4 % in Y2011

23. Conclusion and Next Step • Conclusion • Utility advisory optimization system successfully helps maximize utility production profit at real-time • Utility optimization model is used for rigorous off-line study before making decision on operation change • Next Step • Study to implement closed loop real time optimization to fully capture on-line optimization benefits

24. Thai Oil Refinery-wide Optimization Vision & Utilities Optimization Case Study THANK YOU By: Chanchana Payungwong Contact: chanchana@thaioilgroup.com