Refinery Units Case Studies

Plant Type: 14,000 BPD Topping Unit (Crude Unit) Original Location: Vicksburg, MS                                               Destination: Africa   Phoenix Equipment purchased a 14,000 BPD Crude Distillation Unit (Topping Unit) in Mississippi. This complete unit produces jet (aviation) fuel, diesel, naphtha, kerosene, butane mix and light Gasoline. The unit was originally built in 1978 to process 5,000 BPD of south Louisiana light sweet crude oil. Between 1991 and 1994, the unit underwent expansions to increase capacity. In 1995, the unit switched feedstock to heavy aromatic distillate to produce both gasoline blends and marine diesel oil blends.        This unit is ideal for a region which has limited crude oil supply, but a small demand of fuel, diesel, naphtha and kerosene. Phoenix Equipment received serious inquiries from customers worldwide, especially from Africa, South East Asia, and CIS regions. There were very limited technical documents left after the shutdown due to several changes in ownership.  Nonetheless, our customers were confident the unit could be relocated and re-operated because it is a very common crude distillation process. We re-sold this unit to a customer in Africa. We coordinated with the customer to hire a dismantling contractor who met the customer’s tight budget. The dismantlement was completed in less than 4 months. All purchased equipment and structures were shipped to Africa for refurbishment and reinstallation.

In 2008, Marathon Oil elected to cease operations of its Lube Oil plant at its Catlettsburg Refinery in Kentucky.  The Lube Oil plant consisted of an 18,000 BPD Furfural Unit and an 11,000 BPD Methyl Ethyl Ketone (MEK) Extraction Unit as well as related equipment, surrounding utilities and infrastructure. Phoenix Equipment contracted to perform the dismantlement and purchase of machinery, equipment and scrap.  The Lube Oil plant is located within an active refinery, and therefore, required extensive planning, preparation and diligence in order to ensure a safe execution of the project without any interruptions to on-going site activities. Phoenix was able to significantly reduce Marathon’s demolition budget by executing a bulk sale of certain process equipment related to MEK dewaxing (rotary vacuum filters, vacuum pumps, etc).  Phoenix then performed the match-marking, removal, cribbing for transport, loading and transport of all purchased machinery, including items retained for future sale.  In conjunction with asset recovery services relating to equipment sales, Phoenix performed the complete dismantlement and demolition of the remaining plant.  Phoenix shared the proceeds from the sale of carbon steel (HMS) with Marathon above a certain set price.  Phoenix provided bi-monthly reports that included signed weight slips by a Phoenix and Marathon representative and a scanned copy of all checks Phoenix received from the sale of carbon steel (HMS). The scrap recovery on the project included approximately 5,000 tons of carbon steel (HMS) and 400,000 pounds of non-ferrous metals. An agreement was reached in regards to the project in July 2009, and Phoenix began dismantlement work in late August 2009, completing the full scope, including concrete slab removal, in September 2010.