Feasibility Report On Gasoline Hydrotreatment Unit (GTU...

Bharat Petroleum Corporation Ltd. Mumbai Refinery

Feasibility Report on Gasoline Hydrotreatment Unit and Associated Facilities

1

Feasibility Report

On

Gasoline Hydrotreatment Unit (GTU )

and Associated Facilities


March 2016



2

Index

Chapter 1 Executive Summary

Chapter 2 Introduction

Chapter 3 Objectives

Chapter 4 Basis and Assumptions

Chapter 5 Evaluation of Alternatives

Chapter 6 Project Description

Chapter 7 Process Description

Chapter 8 Utilities & Offsites

Chapter 9 Unit Capacities

Chapter 10 Catalyst

Chapter 11 Unit Plot Layout

Chapter 12 Project Schedule

Chapter 13 Cost Estimates

Chapter 14 Benefits and Profitability

Annexure-1 Government Policy of Auto fuels upgradation

Annexure-2 Proposed BS V/VI MS specification

Annexure-3 Proposed Plot Plan for GTU

Annexure-4 Project Cost Estimate

Annexure-5 IDC calculation for the project



3

Chapter 1 - Executive Summary

Objective:

In order to meet the government mandate of producing 100% BS-VI MS w.e.f 1st April 2020 ,

Bharat Petroleum Corporation Limited, Mumbai Refinery (BPCL-MR) intends to set up a

Gasoline Hydro Treatment Unit (GTU) of 0.9 MMTPA capacity This is in line with the

guidelines established in Auto Fuel Policy and Vision 2025 as well as communication from

MOP&NG, R-29011/23/2012-OR-I. GTU would hydrotreat cracked Gasoline ex CCU /FCCU

and the Gasoline product from new GTU will conform to BS-VI specification of max. 10

ppmw sulphur.

Along with GTU, the following associated facilities will be revamped/modified as

per requirement, based on adequacy study :

Revamp of DHT Amine Regeneration Unit to treat additional Rich amine from GTU.

Revamp of existing Sour Water Stripper Units to treat additional sour water generated

from GTU.

Existing HGU-2 (Hydrogen Generation Unit) and SRU are being revamped under DHT

project .These units will cater to the requirements of Hydrogen and processing of acid gas

respectively,for GTU.

Background:

Mumbai Refinery has an installed crude processing capacity of 12 MMTPA. The Refinery

configuration has undergone several modifications over the years to include various secondary

processing units and currently has the capability of producing BS-III/IV grades of MS and

HSD which are in line with the present Auto Fuel (AF) Policy. MR has recently undertaken / is

implementing the following major projects:

Continuous Catalyst Regeneration Reformer (CCR): The unit has been commissioned in

March 2014. This project enables production of 1.1 / 0.9 MMTPA of BS-III/BS-IV MS

respectively (total 2.0 MMTPA).



4

New Crude / Vacuum Distillation Unit (CDU4): A state-of-the-art integrated crude and

vacuum unit has been commissioned in Nov 2015. The project has improved the Fuel &Loss,

yields,safety and reduced energy consumption significantly vis-à-vis the old Crude Distillation

Units.

Conversion of Catalytic Reforming Unit (CRU) to Isomerization Unit (ISOM): With the

implementation of ISOM unit, MR would be capable of producing total BS-IV (2.4 MMTPA)

and meeting 2017 Auto Fuels (AF) mandate for MS.

Installation of Diesel Hydrotreatment Unit (DHT) and associated facilities to produce

100% BS IV HSD: MR is implementing this project to produce 100% BS IV HSD for meeting

2017 HSD Auto Fuels (AF) mandate.

MOP&NG had constituted an expert committee under the chairmanship of Member, Planning

Commission, Govt. of India for preparing “Auto Fuel Vision and Policy 2025 (AFVP 2025)”.

Members of oil industry were also part of the committee / working groups. Based on this

expert committee recommendation, it is proposed to introduce total BS-VI AF in the entire

country by 1st April 2020.

With implementation of DHT and with catalyst change in existing Diesel Hydro

desulphurisation (DHDS) Unit, MR would be capable of producing total BS-V / BS-VI HSD.

In order to select the best configuration of refinery to meet the MS product quality as per BS-

VI MS specifications, an internal study using Aspen Linear Programme Model (PIMS) was

conducted. Based on the study, it was found essential to set up a GTU (Gasoline

Hydrotreatment Unit ) of 0.9 MMTPA capacity along with associated facilities to meet the AF

mandate.

Benefit of the proposal:

Installation of GTU is an absolute business necessity for meeting the proposed specifications

of 100% BS VI MS for the entire country w.e.f 1st April 2020 while ensuring strategic

supply security for BPCL. This proposal is a mandatory product quality improvement project

which will ensure product security for MS and sustaining crude throughput at 13 MMTPA.



5

Plot Plan:

It is proposed to set up GTU in the old Catalytic Reforming Unit (CRU)/New Solvent Unit

(NSU ) plot area, which would be dismantled post commissioning of Isomerisation unit . Based

on preliminary indications plot area required for 0.9 MMTPA GTU is 4000-5000 Sq Meters.

Refer Annexure -3 for the proposed plot for GTU.

Utilities & offsites:

Utility requirements of GTU facilities like Power, Cooling Water, Raw Water, Plant Air,

Instrument Air, Nitrogen, Steam, DM Water, BFW, Condensate etc can be met from existing

systems.

Fuel requirement will be met with RLNG, which is environmentally neutral.

Environmental Impact:

Environmental Impact Assessment (EIA) and Quantitative Risk Assessment (QRA) study will

be carried out in order to obtain Environmental Clearance for the project.

Capital Cost:

As per preliminary estimates, Capital cost for putting up the GTU and associated facilities with

+/- 30% accuracy is about Rs. 554 Crores. Breakup of capital cost estimate is provided in

Chapter-13.

BPCL Board has accorded approval on 12.2.2016 for Installation of GTU and associated

facilities to produce 100% BS-VI MS.

Schedule:

Schedule for the project activities is as follows:

Sr. No. Activity Description Proposed Schedule

A

Project Management Consultant (PMC ) and

Engineering Procurement & Construction

Management (EPCM) Consultant

1. Award of PMC/EPCM Contract May-2016

2. Prepare + / - 10% Cost Estimate Feb-2017

3. Order Long Lead Items Nov-2016



6

4. Mechanical Completion Dec-2019

B Environmental Clearance

1. Award Contract for EIA / RRA Studies May-2016

2. Complete EIA / RRA Studies Aug -2016

3. Environmental Clearance Sept-2016

C Basic Engineering Design Package (BEDP)

1. Licensor Selection & Approval July-2016

2. BEDP Jan-2017



7

Chapter 2 - Introduction

BPCL-MR has an installed crude processing capacity of 12 MMTPA. The Refinery

configuration has undergone several modifications over the years to include various secondary

units and currently has the capability of producing BS-III/IV grades of MS and HSD which are

in line with the present Auto Fuel (AF) Policy.

MOP&NG has constituted an expert committee under the chairmanship of Member, Planning

Commission, Government of India for preparing “Draft Auto Fuel Vision and Policy 2025”.

Members of oil industry also form a part of the committee / working groups. Various meetings

were held and the report is in advanced stage of completion. The expert committee proposes to

introduce total BS-IV AF in the entire country by 1st April 2017 & total BS-V/VI AF by 1st

April 2020.However, there is no difference in fuel quality between BS-V and BS-VI (Refer

Annexure-2).

With implementation of DHT and with catalyst change in existing Diesel Hydro-

desulphurisation (DHDS) Unit, MR would be capable of producing total BS-V / BS-VI HSD..


V/VI MS specifications, an internal study using Aspen Linear Programme Model (PIMS) was

conducted. Based on the study, it was found essential to set up a GTU (Gasoline

Hydrotreatment Unit ) of 0.9 MMTPA capacity along with associated facilities to meet the AF

mandate.



8

Chapter 3 - Objective

The objective of the proposal is to install Gasoline Hydrotreatment Unit (GTU) of 0.9 MMTPA

capacity at BPCL-MR in order to meet the government mandate of producing 100% BS-VI MS

w.e.f. 1st April 2020.

Impurities such as sulphur will be removed from the feed stocks by reaction with Hydrogen at

high pressure and high temperature to meet the BS-VI specification for MS.

Installation of a GTU is necessary for meeting the proposed specifications of 100% BS-VI MS

for the entire country as per Auto Fuel mandates w.e.f. 1st April 2020. In the absence of GTU,

MR would be capable of producing only 1.1 MMTPA of BS-VI MS post ISOM and the

balance MS to the extent of 1.2 MMTPA will be of BS-IV quality.

The above situation would entail exports of 1.2 MMTPA BS-IV MS and simultaneous imports

of equivalent quantity of BS-VI MS to meet the market requirements supplied by MR


per requirement based on adequacy study :

Revamp of DHT Amine Regeneration Unit to treat additional rich amine from GTU.


from GTU.



respectively, for GTU.



9

Chapter 4 – Basis & Assumptions

4.1 Capacity:


VI MS specifications, an internal study using Aspen Linear Programme Model (PIMS) was

conducted. Based on this study it was established that in order to meet the BS-VI MS quality as

per government mandate for Auto Fuels, GTU with a capacity of 0.9 MMTPA (2700 MT/D).

needs to be installed at BPCL-MR.

4.2 Feed Stock:

Feed stocks for Gasoline Hydrotreatment Unit (GTU) will be a mix of Cracked Gasoline from

CCU and FCCU units.

Hydrogen requirement for the unit will be catered by HGU-2 ,which is being revamped under

DHT project.

4.3 Yields:

In the absence of GTU Unit, under the present conditions, BPCL-MR is capable of producing

only 1.1 MMTPA of BS-VI MS and the balance MS to the extent of 1.2 MMTPA will be of

BS-IV quality. Production of BS-VI MS pre and post GTU is as follows :

MMTPA Before GTU Post GTU

BS-IV MS 1.2 0.0

BS-VI MS 1.1 2.3

Total MS 2.3 2.3

4.4 Cost:

Capital cost for putting up the GTU and associated facilities with +/- 30% accuracy is about Rs

554 Cr. Breakup of capital cost estimate is provided in Chapter-13.

4.5 Financing:

A debt to equity ratio of 1.5:1 is considered.



10

4.6 Interest Rate:

The interest rate of 10 % is considered.

4.7 Production Build-up / Sales realization:

The Sales realization has been assumed as 90% from the first year of commissioning and 100%

for each subsequent year.

4.8 Pollution Abatement:

Modern process units are heat integrated to minimize the fuel consumption and have higher

efficiency furnace. In view of only fuel gas / Regasified Liquefied Natural Gas (RLNG) firing

in GTU furnaces the project will have marginal impact on the environment.

Further, low NOx burners will be installed in GTU furnaces which will help in reducing NOx

emissions.

No continuous effluent generation from GTU is envisaged. Any intermittent effluent

generation will be treated in the existing ETP.

The very purpose of installing GTU is to remove pollutants / impurities such as sulphur and

trace metal from the feed stocks. This will help in reducing emission of air pollutants such as

Sulphur Oxides (SOx ).



11

Chapter 5 – Evaluation of Alternatives

It has been proposed by the expert committee on ‘Auto Fuel Vision and Policy 2025” to

introduce total BS-VI Auto Fuel (MS & HSD) from 1st April 2020 and discontinue supply of

BS-IV MS & HSD in Indian domestic market. With the present configuration of BPCL-MR, it

is capable of producing 1.2 MMTPA of BS-IV MS and 1.1 MMTPA of BS-VI MS.

In order to meet the proposed requirement of supplying total BS-VI MS from refinery,

following options were considered;

Option-1: Exports of 1.2 MMTPA BS-IV MS and simultaneous imports of equivalent

quantity of BS-VI MS.

Impact of implementing this option:

The combined handling of 2.4 MMTPA of MS will require hiring of huge infrastructure

facilities. Further, the reduced BS-VI MS availability of 1.1 MMTPA will have overall impact

on supply security for BPCL, which is critical for marketing interests. BPCL will have huge

constraints in terms of product availability which will lead to higher dependencies of sourcing

BS-VI MS. Any delay in availability of product is bound to have adverse impact in meeting the

market requirements.

Option-2: Installation of VGO Hydrodesulphurisation unit for meeting the proposed

specifications of 100% BS-VI MS for the entire country .


Based on internal study using Aspen Linear Programme Model (PIMS) it was established that

current refinery configuration does not call for hydro-treatment of entire VGO. Only cracked

Gasoline from CCU and FCCU require hydro-treatment to meet BS VI specifications. VGO

HDS is a high capital intensive project with lower returns.

Option-3: Installation of a GTU for meeting the proposed specifications of 100% BS-VI

MS for the entire country.


As per the proposed Auto Fuel Policy, after the full roll-out of BS-IV MS by April 2017, it is

expected that BS-VI Grades will be introduced in the entire country by April 2020. The

availability of GTU at BPCL-MR will be crucial since it will be extremely useful in producing

the BS-VI Grades. Otherwise the import / export losses would further worsen the situation.



12

Based on the above and considering the overall impact on supply security for BPCL, Option-3

has been selected.



13

Chapter 6 – Project Description

The facilities envisaged in the project comprise of Gasoline Hydrotreatment Unit (GTU) of

0.9 MMTPA capacity along with associated facilities.

The GTU project comprises of a Selective Hydrogenation Unit (SHU), fractionation of

gasoline into light cut and heavy cut gasoline followed by Selective Hydro Desulphurisation

(Selective HDS) and Stabilisation of ultra low sulphur heavy cut gasoline.


per requirement, based on adequacy study :

Revamp of DHT Amine Regeneration Unit to treat additional Rich amine from GTU.


from GTU.



respectively, for GTU.

Pre-project activities

Pre-project activities envisaged are as follows :

Award of PMC/EPCM Contract

Licensor selection

Environmental Impact Assessment (EIA) / Rapid Risk Analysis (RRA) study

Obtain Environmental Clearance

Preparation of BEDP by the selected licensor

Parallel implementation of EPCM activities (Detailed Engineering / procurement of long

lead items / Preparation of cost estimate having + / - 10% accuracy)



14

Chapter 7 – Process Description

The GTU project comprises of a Selective Hydrogenation Unit (SHU), fractionation of gasoline

into light cut and heavy cut gasoline followed by Selective Hydro Desulphurisation (Selective

HDS) and Stabilisation of ultra low sulphur heavy cut gasoline.

Cracked gasoline from CCU and FCCU is routed to the unit. This gasoline after boosting

pressure is mixed with Hydrogen recycle /Hydrogen makeup gas and processed in Selective

Hydrogenation Unit (SHU).

The reactions taking place in SHU are diolefin saturation, Sulphur compound boiling point shift

and Olefin isomerisation. The Sulphur in feed stream will be converted primarily to heavy

mercaptans and heavy Sulphur compounds (having high boiling point).

The effluent from SHU is fed to a Splitter column wherein the Light Gasoline component with

ultra low Sulphur is separated from top and will be routed to MS pool.

The bottom cut of Splitter column having heavy mercaptans and other heavy Sulphur compounds

is fed to Selective Hydro Desulphurisation (Selective HDS) section along with Hydrogen recycle

/Hydrogen makeup.

The reactions taking place in this section are Deep Desulphurization, minimum Olefin saturation

and control of Mercaptan recombination.

The effluent from Selective HDS is routed to Stabiliser column. The top product of stabilizer is

purge gas which will be routed for further treatment. The bottom product of Stabiliser is Ultra

low sulphur Heavy Gasoline which will be routed to MS pool.

The hydrotreated Gasoline product will have sulphur of max 10 ppm wt.



15

PRELIMINARY BLOCK FLOW DIAGRAM



16

Chapter 8 – Utilities & Offsites

This section gives details of utilities, based on preliminary estimate by one of the Licensors for the

GTU and associated facilities. However adequacy will be established based on detail design

engineering.

8.1 Utilities

8.1.1 Fuel

It is envisaged that energy requirement of GTU and associated facilities will be primarily met from

clean and environment friendly RLNG / Refinery Fuel Gas (having nil H2S content). As per the

preliminary estimate 12 MT/D of RLNG/FG will be required in GTU.

8.1.2 Hydrogen

The Hydrogen requirement of GTU is approx 10 MT/D. This will be sourced from existing HGU-2 /

CCR.

8.1.3 Power

The power requirement for the proposed facilities is 4 MW. This will be sourced from existing Gas

Turbines which supply power to the entire refinery.

8.1.4 Steam

Net steam requirement will be around 720 MT/D which will be met from existing steam generation

system .

8.1.5 Cooling Water

Estimated requirement of environment friendly closed recirculating sea cooling water system is 70

m3/hr with makeup sea water requirement of approx 5 m3/hr. This will be met from existing system

after confirmation during Detailed design engineering stage.

8.1.6 Raw Water

The Raw Water requirement for the new facilities is approximately 6 m3/hr. This includes makeup

raw water required for steam generation and wash water injection. This requirement shall be met

using existing systems after confirmation during Detailed Design Engineering stage.



17

8.1.7 Other utilities

Requirement of other utilities viz. Nitrogen, Instrument Air, Plant Air, DM water, Boiler Feed

Water, Condensate system etc. shall be met using existing systems after confirmation during

Detailed Design Engineering stage.

8.2 Offsites

Adequacy of existing facilities like Closed Blow Down, Oily Water Sewer, and Contaminated Rain

Water System, Flare System etc. will be checked during Detail Design Engineering stage.



18

Chapter 9 – Unit Capacities

It is proposed to install Gasoline Hydrotreatment Unit (GTU ) of 0.9 MMTPA .Adequacy check of

associated facilities will be carried out based on which revamp of DHT ARU and DHDS/RMP SWS

will be carried out if required. Details of the same are tabulated as below;

Unit Description Existing Capacity Proposed Capacity

Gasoline Hydrotreatment Unit (GTU) New Unit 0.9 MMTPA

Revamp of DHDS/RMP SWS Unit 700/900 MT/D Units will be revamped

if required based on

adequacy study

Revamp of DHT Amine Regeneration

Unit 4250 MT/D



19

Chapter 10 – Catalyst

Details of catalyst for GTU Unit based on preliminary inputs are tabulated below :

Catalyst Description Proposed

Quantity 1st Cycle Life

MT Years

SHU Reactor HR 845 60.5 4

1st Stage Hydro DeSulphurisation HR 806 22.75 4

2nd Stage Hydro DeSulphurisation HR 806 22.75 4

Total 106

(165 m3)



20

Chapter 11 – Unit Plot Layout

It is proposed to set up GTU in the old Catalytic Reforming Unit (CRU)/New Solvent Unit (NSU )

plot area, which would be dismantled post commissioning of Isomerisation unit . Based on

preliminary indications plot area required for 0.9 MMTPA GTU is 4000-5000 Sq Meters. Refer

Annexure -3 for the proposed plot for GTU.

Hydrogen requirement for GTU will be supplied from existing HGU-2 ,which is being revamped

under DHT project. Hence no new plot area is required.

Sour water generated from GTU unit will be treated in existing Sour Water Strippers. Existing

units will be revamped if required based on adequacy study . Hence no new plot area is required

for SWS Unit.

Rich amine from GTU will be treated in existing DHT ARU which will be revamped if required

based on adequacy study. Hence no new plot area is required for ARU.

Acid gas generated from ARU & SWS will be treated in existing SRU trains. Hence no new plot

area is required for SRU.



21

Chapter 12 – Project Schedule

Detailed schedule for project activities is as follows :

Sr. No. Activity Description Proposed Schedule

A

Project Management Consultant (PMC ) and

Engineering Procurement & Construction

Management (EPCM) Consultant

1. Award of PMC/EPCM Contract May-2016

2. Prepare + / - 10% Cost Estimate Feb-2017

3. Order Long Lead Items Nov-2016

4. Mechanical Completion Dec-2019

B Environmental Clearance

1. Award Contract for EIA / RRA Studies May-2016

2. Complete EIA / RRA Studies Aug -2016

3. Environmental Clearance Sept-2016

C Basic Engineering Design Package (BEDP)

1. Licensor Selection & Approval July-2016

2. BEDP Jan-2017



22

Chapter 13 – Project Cost Estimate

13.1 Introduction

As per preliminary estimates, Capital cost for putting up the GTU and associated facilities with +/-

30% accuracy is about Rs 554 Cr. Breakup of capital cost estimate is as follows;

No Activity description Capex, Rs

Crores

1

Plant and Machinery:

GTU

SWS / ARU modifications

300

26

2 Sub Total P&M 326

3

Miscellaneous incl Catalyst & Chemicals, Utilities & Offsites,

Buildings, Lab equipments, ODC facilities, Construction site

requirement, Owner’s construction period expenses, Start up

and Commissioning, etc @ 25% of P&M

81

4 License, Basic Engineering, EPCM, etc @ 21.3% of P&M 69

5 TOTAL 476

6 Contingency (@10.0% of 5) 48

7 CAPEX Sub Total 524

8 IDC

20

9 Total CAPEX 544

10 Associated REVEX 10

11 Total Project Cost 554



23

Chapter 14 – Benefits and Profitability

14.1 Installation of GTU is an absolute business necessity for meeting the proposed specifications

of 100% BS VI MS for the entire country w.e.f. 1st April 2020 while ensuring strategic supply

security for BPCL. This is in line with the guidelines established in Auto Fuel Policy and Vision

2025 as well as communication from MOP&NG, R-29011/23/2012-OR-I.

This proposal is a mandatory product quality improvement project which will ensure product

security for MS and sustaining BPCL–MR crude throughput at 13 MMTPA.



24



25



26



27

ANNEXURE -3

Proposed Plot Plan for GTU



28



29

Date post:	23-May-2018
Category:	Documents
Upload:	trinhdiep
View:	233 times
Download:	1 times

Feasibility Report On Gasoline Hydrotreatment Unit (GTU...

Documents