Heavy crude upgrading · For producers

Upgrade heavy crude at the field. Make the barrel move itself.

Upgrade part of your extra-heavy crude at the field, and use it as the blending component. Less imported diluent, simpler logistics and a more marketable barrel, depending on crude properties.

For
Producers of extra-heavy crude
Where
At or near the field
How
KHU modules, scaled to the project
Aim
Reduce or eliminate imported diluent
Fig. 1 — Same slope, different barrelSide elevation · NTS
Side elevation of two identical pipes on the same slope at the same ambient temperature. After the same time, extra-heavy crude has barely advanced into its pipe, while the upgraded crude has flowed almost the full length of the other. SAME AMBIENT TEMPERATURE · SAME TIME START FLOW LENGTH EXTRA-HEAVY BARELY ADVANCES FLOW LENGTH UPGRADED FLOWS · TO PIPELINE SAME SLOPE
Conceptual, not to scale. Extra-heavy crude resists flow at ambient temperature; that is why it is blended with diluent today.
02The heavy-oil challengeDetail B · Fig. 2

Every heavy barrel travels with a lighter one.

Extra-heavy crude is one of the world’s largest energy resources. But at ambient temperature it barely flows.

To move it by pipeline, producers blend in lighter hydrocarbons, called diluents. Depending on the crude and the route, diluent can approach 40% of the transported blend: volume that has to be bought, delivered, moved and often sent back.

Fig. 2 — Transported heavy-crude blendSchematic
In some applications, diluent approaches 40% of the transported blend.
General notes
  1. Viscosity

    Hard to produce, hard to move. Extra-heavy crude resists flow at ambient temperatures.

  2. Diluent volume

    Up to ~40% of the transported blend can be diluent, and every barrel of it takes pipeline capacity.

  3. Imported supply

    Diluent is often imported, and it can be costly, unreliable or hard to secure in sufficient volume.

  4. Centralized capital

    Conventional upgrading, such as delayed coking, means large, capital-intensive facilities far from remote fields.

03Process-flow comparisonDetail C · Fig. 3

Two ways to get heavy crude to market.

On the left of the sheet, the field. On the right, the market. Switch between today’s diluent blending and the KHU alternative to see what changes in between.

Fig. 3 — Conventional diluent blending
Conventional diluent blending compared with KHU upgrading Conventional: imported diluent arrives by truck or pipeline, is blended with extra-heavy crude, the blend is pipelined to market, and diluent is recovered at destination and returned to the field. FIELD EXTRA-HEAVY PRODUCTION FIELD TANK EXTRA-HEAVY CRUDE IMPORTED DILUENT BY TRUCK OR PIPELINE DILUENT TANK DILUENT DILUENT RECOVERY DILUENT RETURN RECOVERED AND SENT BACK TO THE FIELD BLENDING MARKET REFINERY · TERMINAL DILUTED BLEND HEAVY · DILUENT UP TO ~40% PART OF THE FIELD CRUDE KHU MODULE UPGRADED STREAM THE BLENDING COMPONENT RESIDUE · MANAGED ON SITE PIPELINE-SPEC BLEND HEAVY · UPGRADED · LESS IMPORTED REDUCED OR ELIMINATED DEPENDING ON CRUDE PROPERTIES
Illustrative. Diluent requirements and the share of crude upgraded depend on crude properties and project conditions.

Conventional · today

  1. Bought inDiluent is sourced externally, often imported, and can be up to ~40% of the blend.
  2. Moved twiceIt arrives by truck or pipeline, and is often recovered at destination and sent back.
  3. Still discountedThe blend carries a heavy, discounted barrel to market.

With KHU · at the field

  1. Made on sitePart of the field crude is upgraded in a KHU module, close to production.
  2. Blended inThe upgraded stream becomes the blending component, reducing or even eliminating imported diluent.
  3. Better barrelFewer inbound shipments and a lighter, more marketable blend, depending on crude properties.
Work through your own numbers
04Diluent burden · IllustrativeDetail D · Calc. KAL-C-301

Run the diluent arithmetic.

Put in your production rate, your diluent share and, if you like, what diluent costs you delivered. The sheet works out the volumes and spend, then lets you test a scenario.

Calc. no.KAL-C-301
SubjectDiluent burden · transported blend
BasisYour inputs · volume balance
StatusIllustrative
1.0Inputs
bbl/d

Try

30%
$/bbl

Your own figure. Leave it blank to see volumes only.

Notes

  1. Q is the heavy crude you produce, before blending.
  2. s is diluent as a share of the transported blend, by volume. In some applications it approaches 40%.
  3. r is your assumption, set to 0% until you move it. What is achievable is evaluated against your crude, under NDA.
Discuss these figures with us

2.0Results

R-1Diluent volume
—bbl/dD = Q × s ÷ (1 − s)
R-2Blend volume to transport
—bbl/dB = Q + D
R-3Annual diluent spend
—$/yrA = D × 365 × C

3.0Scenario

0%
R-4Imported diluent, scenario
—bbl/dI = D × (1 − r)
R-5Reduction in imported volume
—bbl/dΔI = D × r
R-6Implied reduction in annual spend
—$/yrΔA = ΔI × 365 × C

Illustrative arithmetic on your inputs, not a performance claim. Actual results depend on crude properties and project conditions.

Basis: simple volume balance at a constant blend ratio; 365 operating days; no shrinkage. Q = production, s = diluent share, C = delivered cost, r = scenario share.

05Potential benefitsDetail E

What field upgrading can change.

E-1Diluent

Reduced diluent requirements

The upgraded stream can serve as the blending component, reducing or even eliminating externally sourced diluent.

E-2Logistics

Improved transportation economics

A lighter blend and fewer inbound diluent shipments simplify logistics from field to market.

E-3Market

Greater marketability

A lighter, more marketable crude, brought closer to target market specifications.

E-4Reserves

Marginal production made attractive

Better field economics can make otherwise marginal heavy-oil production worth developing.

06ApplicationsTable F-1

Where it fits.

Table F-1 · Typical situations for field upgrading
ApplicationSituation todayWhere KHU fits
F-1.1Remote fieldsSituation todayFar from upgraders and diluent supply, so every inbound barrel travels a long way.Where KHU fitsUpgrading sits at the field, in transportable modules delivered to site.
F-1.2Diluent-constrained regionsSituation todayImported diluent is costly, unreliable or hard to secure in sufficient volume.Where KHU fitsThe upgraded stream can serve as the blending component, reducing dependence on imports.
F-1.3Expansion projectsSituation todayNew production means more diluent, more logistics, or a large centralized upgrader.Where KHU fitsCapacity can be added train by train, in step with production.
07Commercial inquiries · ProducersForm KAL-INQ

Share your crude properties.

Tell us about your crude, your diluent supply and your route to market. Our engineering team will outline what KHU could do for your economics. All discussions are under NDA.