The global crude oil supply is shifting, with a growing proportion of high-sulfur crude oil (sulfur content above 2%) becoming a major part of the world’s oil reserves. Currently, this type of crude accounts for nearly half of total production, and the Middle East—home to the largest oil production capacity—is heavily reliant on high-sulfur sources. This trend has significant implications for the refining industry.
There is a noticeable price gap between high-sulfur and low-sulfur crude oils. As global oil prices have risen, this difference has become more pronounced. In 2004, high-sulfur crude was priced about $4.60 per barrel lower than low-sulfur crude, and by the first half of 2005, the spread had widened to $5.10. For a mid-sized refinery processing 2 million tons annually, this difference could translate into cost savings of around 560 million yuan. Despite higher processing costs related to energy, materials, and operations—approximately $1 per barrel—refineries still find it economically beneficial to process high-sulfur crude, especially in a high-price environment.
However, processing high-sulfur crude is not without challenges. The sulfur content in refined products like gasoline and diesel can cause severe corrosion to engines and equipment, necessitating additional desulfurization steps during refining. Although advanced technologies such as catalytic feedstock pretreatment, hydrodesulfurization, and hydrocracking have been developed and implemented, the risk of equipment corrosion remains a critical issue.
Moreover, the impact of high-sulfur crude extends beyond refining processes. Transportation, storage, and post-processing all face increased corrosion risks. Many new refineries in China are now designed to handle high-sulfur crude, and existing facilities are undergoing technological upgrades. This shift presents new demands for equipment manufacturers to adapt their designs and materials to meet higher corrosion resistance standards.
China previously did not process much high-sulfur crude, so equipment standards were not as stringent. Now, new industry guidelines from the China Petrochemical Corporation, approved by the former State Economic and Trade Commission, set clear requirements for materials like carbon steel, aluminized carbon steel, and duplex steel. These standards specify strict manufacturing, welding, and inspection protocols to ensure mechanical integrity and corrosion resistance.
For instance, aluminized carbon steel must have a dense and uniform coating, and its use in pressure vessels and heat exchangers requires rigorous quality control. Carbon steel used in wet hydrogen sulfide environments must be low in sulfur and phosphorus to prevent stress corrosion cracking and hydrogen-induced damage. Additionally, components must undergo hydrogen-induced cracking tests, and design modifications such as increasing wall thickness or adding baffles may be required to prevent localized corrosion.
Corrosion protection in high-sulfur crude processing is a key concern for designers, manufacturers, and refiners alike. It is essential that all relevant parties update their material standards in line with the latest industry regulations. Existing equipment should be evaluated for potential risks, and monitoring systems should be implemented. A proactive approach to upgrading refining equipment and materials is crucial to ensuring long-term operational safety and efficiency.
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