Haldia Refinery

FUNCTIONS IN OIL INDUSTRY

What is a Refinery?

REFINING

REFINERY PRIFITABILITY

FUNCTIONAL OBJECTIVES-MARGIN

FUNCTIONAL OBJECTIVES

Complexity of a Refinery

The combination of refining processes and operations employed (complexity) varies from one refinery to another.

Factors deciding the complexity of a refinery

Nature/source of crude oils to be processed

Demand pattern in the markets to be covered

Product quality – current / future

Production of feed stocks for downstream units

Inter-fuel substitution

Environmental stipulations

OPTIMIZATION WITHIN REFINERY

INCREASE IN REFINERY PROFITABILITYVarious sources of losses in Refinery:• Crude accounting loss• Tank preparation before feeding to units & dispatch • Evaporation Losses from tanks• Product Loading & Dispatch loss• Quality Give Away• Decrease in efficiency in Boilers and furnaces• Loss due to leakages in Process plants, equipment• Loss due to poor design of heat recovery system• Flare Losses

Necessary Management control has to be exercised to reduce Fuel & Loss.

Crude Oil Characterisation

Crude Oil Characterisation

High TAN Crudes

  Crude API %S Origin   SPG TAN

DO1Doba Blend - Later

Production 21.1 0.12 Chad   0.93 3.49DAB Dar Blend 26.4 0.12 Sudan   0.90 2.80LOK Lokele 19.9 0.41 Cameroon   0.93 2.70

PELPetroZuata Light -

Upgraded 26.3 2.32 Venezuela   0.90 2.44GRA Grane 18.7 0.83 Norway   0.94 2.20KUB Kuito Blend 19.3 0.68 Angola   0.94 2.00DAL Dalia 22.6 0.50 Angola   0.92 1.72

DRU Duri 20.4 0.22 Indonesia   0.93 1.30

TOP Topacio 26.1 0.31Equatorial

Guinea   0.90 1.18NOW Nowrooz 20.4 3.75 Iran   0.93 1.03MEY Merey 15.7 2.60 Venezuela   0.96 0.96CLB Cold Lake Blend 19.7 3.89 Canada   0.94 0.84ANB Antan Blend 27.2 0.26 Nigeria   0.89 0.83

CEI Ceiba 29.8 0.57Equatorial

Guinea   0.88 0.82

High TAN Crudes

  Crude API %S Origin   SPG TAN

ZAB Zafiro Blend 29.5 0.26 Equatorial Guinea   0.88 0.81

ALR Al Rayyan 24.1 3.36 Qatar   0.91 0.78

STY Stybarrow 22.1 0.13 Australia   0.92 0.75

MAR Marlim 19.8 0.77 Brazil   0.94 0.74

HUA Hungo/Kizomba A 27.3 0.65 Angola   0.89 0.72

ABO Abo 38.7 0.14 Nigeria   0.83 0.72

LA4 Lavan Blend 36.2 1.44 Iran   0.84 0.71

ESC Escalante 23.2 0.19 Argentina   0.91 0.69

MOU Moudi 36.7 0.27 Cameroon   0.84 0.65

KIS Kissanje Blend 28.2 0.44 Angola   0.89 0.64

KOM Kole Marine 31.6 0.34 Cameroon   0.87 0.61

BON Bonga 29.4 0.25 Nigeria   0.88 0.59

OE4 Oman Export Blend 32.8 1.07 Oman   0.86 0.59

ESG Escravos (Gulf) 34.1 0.15 Nigeria   0.85 0.53

PROFITABLE CRUDE

CRUDE OIL SELECTION & OPTIMIZATION IN REFINERIES

Depends on :- Configuration of Refinery – what are the units present

- Metallurgy of refinery – particularly columns, piping to take care of acidic / corrosive crude

- Product demand in the region

- Netback/ GRM of a particular crude

- Availability of a particular crude at economic cost

CRUDE OIL SELECTION

CRUDE OIL SELECTION

Processing Puzzle

What are High Acid Crudes????

High Temperature Naphthenic Acid Corrosion

Factors Effecting Corrosion

HAC Corrosion

HAC corrosion

Naphthenic acid Impacts

Prevention Methods

Crude Oil Cost Determines GRM

Crude cost is the single most important determinant for the profitability of an Oil Company

The supply / manufacturing economist can determine the precise value of the eligible crudes for his refinery.

This is highly complex, since the value of a crude depends on the facilities and markets of the Oil Company.

Processing opportunity crude oils has been recognized by the refining industry as a viable method for improving refinery profitability.

Price Discounts for TAN

World Bank correlated discount price as a function of TAN– Less than 0.5 TAN no discount– Above this each point of excess TAN lowers the price of crude by $0.051 per dollar of Brent– Excess defined as TAN of crude oil minus TAN of Brent (0.07)

Cost Discount Example

Doba Crude – 4.7 TANBrent Price – US$50 per barrelDiscount = (4.7-0.07)*0.051*50 = $11.81/bbl

Economics of High TAN crude oil processing

The price of opportunity crude oil is about 80% of the price of conventional crude oil.

The extra cost of processing high TAN crude is in the range $1.15 /bbl,

The savings compared to conventional crude processing are $3.0-4.0/bbl.

The cost of crude accounts for about 90–95% of the total running costs of refineries, so it is very attractive for refineries to process opportunity crude, especially high TAN crude.

MINIMIZATION OF

Quality Give Away

Blending Process

Most world-wide Oil Refineries have a core business that can be separated into four distinct processes: Receive, Produce, Blend, and Distribute.

The purpose of the blending process is to obtain petroleum products from refined components that meet certain quality specifications on time for distributing to the market place by ship or pipeline.

The objective is to find the combinations of blending recipes that make the “best use” of the components.

Description of Blending

The quantities and qualities of the component rundowns and product requirements are known on a daily basis.

In reality the rundown of all components to finished tanks is continuous.

Also blending from component tanks to product tanks and dispatch from product tanks cannot be performed instantaneously.

Blending Constraints

Each component rundown must go to exactly one component tank every day. (This component rundown schedule is decided upon “a priori.”)

The daily qualities of each component tank are determined by combining the qualities of the component tank on the previous day with any rundown into the component tank on the corresponding day.

Each quality is determined by a blend rule (which for some qualities is non-linear ).

Each component and product tank has a maximum and minimum level which must not be violated on any day.

Each product lifting must be able to be made from one (or more) product tank(s) on the appropriate day and satisfy all quality specifications associated with the product.

Minimize the amount of giveaway in products lifted

Quality Give Away

Giveaway is defined as the quality of a product being lifted minus the product specification.

For example a product lifted with an Octane of 92.3 where the Octane specification for that product is 91.3 has 1.0 unit Octane giveaway.

Major Refinery products

1. LPG2. Straight RUN NAPHTHA3. Euro III/IV MS4. AVIATION TURBINE FUEL5. SUPERIOR KEROSENE OIL6. EURO III/IV HIGH SPEED DIESEL7. JUTE BATCHING OIL(C&P)8. FURNACE OIL9. CARBON CLACK FEED STOCK10. BITUMEN11. LUBE OIL BASE STOCKS

CRITICAL QUALITY PARAMETERS OF PRODUCTS

CRITICAL QUALITY PARAMETERS OF PRODUCTS

Blending MS components

Reformate ex U-22 gasoline is received in the MS tank whose dip is comparatively low.

Circulate the tank after receiving these components with the help of one of the pumps for at least 6-8 hours (min).

It is sampled (TMB) and tested in the laboratory. After knowing the base RON & RVP,

if RON is less than the required spec – 91.3 , then calculated amount of reformate ex Tank is added to boost RON to get 91.3 octane.

According to the specification the MS must have orange colour. So add orange dye in the tank itself by bucket, followed by tank recirculation. Allow the tank to settle for at least 4 hours.

Take sample (TMB) and send Laboratory for test.

Blending MS components

After knowing the base RON & RVP, If the octane no. becomes higher than 91.3 RON add

some treated gasoline or Low “S” C5-90 cut is added for lowering RON. But in no case the total percentage of VB gasoline in MS blend should exceed ten. Allow the tank to settle for at least 4 hours after recirculation.

Take sample (TMB) and send Laboratory for test.

Blending HSD components

Through HSD R/D line high sulphur SRGO, SR Kero, JBO, are received from CDU-I/II, FCC gas oil in DHDS feed tanks.

VBGO Ex VBU,VGO , Sour HSD Ex-U84 are also taken in DHDS feed tanks. Hs-HSD is feed to DHDS unit and sweet HSD is received finished HSD tank.

After receiving DHDS sweet HSD, Hy. Naphtha (ex CDU-I/FCC), LS-HSD (ex CDU-II), U-84 sweet HSD components, tank is put in circulation for min. 6-8 hrs. and then allowed to settle for four hours (min).

The tank is sampled and sent to laboratory for test.

Blending HSD components

If it fails to meet its sulphur content and recovery specification take calculated amount of SK from Tank using the HSD recirculation line.

After receiving all the components tank is put in circulation for min. 2.5 hrs. and then allowed to settle for four hours (min).

The tank is sampled again and sent to laboratory for test.

E3 MS: Quality Give Away Measurement: Typical Example (1)

Sl. No. Sp. Gr. ‘S’ RON Benzene

Mfg. Spec 0.721-0.773 145 max 91.5 min 0.9 max

1 0.7357 118 91.9 0.7

2 0.7343 106 91.8 0.7

3 0.7396 120 91.6 0.7

4 0.7490 60 91.6 0.9

5 0.7421 121 91.6 0.9

Weighted Average

0.7401 105 91.7 0.8

Give Away in RON and Sulphur.

The give away may be corrected by back blending Light Naphtha (C5-70) streams of RON 70 and “S” 250 ppm.

MS-Naphtha price differential Rs 5500/MT

E3 MS: Quality Give Away calculations: Typical Example (1)

SULFUR QUALITY GIVE AWAY EFFECT    

Differential Operating cost, RS/MT feed processed ------>  

Feed sulfur say 1.4% (14000ppm) to Product Sulfur 300ppm-  

Reduction by 13700ppm @ 0.006 MT of H2 consummed/ MT of Feed processed

MT of H2 consumed/unit PPM Sulfur removal--> 4.37956E-07

Extra Cost in RS of H2 cost /Unit ppm Sulfur removal--> 0.081

MS-BS-III RON BLEND                        

  QTY DENSITY RON MONBI VOL VOL*BI

VOL*BI*RON VOL*BI*MON BENZENE BENZENE*VOL  

  MT % VOL  

1 LT NAPH(C5-70)-LS 100 0.685 70 65 1 146.0 146.0 10219.0 9489.1 2 292.0  

2 MS-BS-III 14900 0.7401 91.7 85 1 20268 20267.5 1858532.6 1722740.2 0.8 16214.0  

  TOTAL 15000 0.7348 91.5 84.9 1 20414 20413.5 1868751.6 1732229.2 0.81 16506.0  

  15000  

   

  Naphtha upgradation in MT/ unit RON/ MT of actual MS production--> 0.007  

  Average price Differential RS/MT between MS-BS II and Naphtha -> -5500  

  Margin improvement: RS /MT/ UNIT RON---------------------------------->   37           

GRM Improvement through QGA correction of 5 batches of MS works out as 1.6 lakhs.

Quality   Manufacturing specActual

Average   QGA w.r.t DispatchCost of QGA as per blend  

QGA w.r.t Manufacturing

spec

    Road/Rake    Manufacturing

spec   Rs/MT/Unit   Rs CroresRON   91.5 91.70   0.20 15000.0 -36.7   -0.011

Sulphur (ppm)   150 105.00   45.00 15000.0 - 0.081   -0.005Total Rs Cr -0.016

E3 HSD : Quality Give Away Measurement: Typical Example (2)

Give Away in Sulphur and Flash Point.

The give Away may be corrected by blending with Heavy naphtha Flash Point 8 deg C, Recovery 100%, Sulphur 500 ppm

HSD-Naphtha price differential Rs 4000/MT, RS/MT/unit Flash 6.79

Sl. No. Sp. Gr. ‘S’ Cetane No. Rec. at 360 0C

Flash Point

Mfg. Spec 0.820-0.845 340 max 51.4 min 95.5 min 37 min

1 0.8244 252 51.8 95.7 39.5

2 0.8225 254 51.8 95.7 38

3 0.8239 274 51.8 95.7 39

4 0.8281 233 51.8 95.7 42

5 0.8246 246 51.8 95.7 40

Weighted Avg 0.8247 252 51.8 95.7 39.7

E3 HSD : Quality Give Away Measurement: Typical Example (2)

GRM Improvement through QGA correction of 5 batches of HSD works out as 8 lakhs.

E3 HSD                          

               FLASH

PT. FLASH PT. LOG(10) I FL PT. V*I CETANECOMPONEN

T %S MT MT S %V RECVRECOVER

Y Density VOL ^C ^F  INDEX(I

)   NO.                           

BS III HSD 0.025 29590 746 96 3433689 0.8247 35880 39.7 103.46 2.8 650.9 640.83 51.8HY.NAPH 0.050 410 21 100 56164 0.7300 562 8 46.4 4.0 10010.0 154.28 32.0TOTAL 0.026 30000 766 95.77 3489853   36441         795.10 51.5

    30000                                              795.10  

TOTAL/AV 0.026 30000 766 95.8 3489853 0.8232 36441   IB = 795.10     51.5

 (0.045 SPEC)    

(95.5 SPEC)         LOG10(I) = 2.90      

              FL.PT.(^F) = 98.77                      FL.PT.(^C) = 37.09                          SPEC(37)      

Product HSD-BS3                

Quality  Manufacturin

g specActual

Average   QGA w.r.t Dispatch

Cost of QGA as per

blend  

QGA w.r.t Manufacturing

spec

   (Rake/Road Dispatch)    

Manufacturing (R/R) spec   Rs/MT/Unit   Rs Crores

Sulphur (ppm)   345 252.00   93.00 30000.0 0.08144   -0.02Flash Point, C 37 39.7 2.70 30000.0 6.79746 -0.06

    Total -0.08

System Improvement: Blending Automation

To realize the greatest profitability in refinery blending operations, a blend optimization system may be used to provide management of the components and product tanks, blend header, online and laboratory analytical systems, and planning/scheduling activities.

Common blending operation targets are:• To reduce both re-blends and Quality giveaway

• To meet product specifications while conforming to environmental requirements

• To enhance effective inventory capability andimprove profitability

• To lower risk of missed export schedules• To improve refinery planning/scheduling

accuracy

CONTINUOUS IMPROVEMENT PROCESS

Igniting Minds... Energizing Lives…Haldia Refinery