Professional Documents
Culture Documents
MB-107
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~; k~ e
k ; k ‘ k f D r o’
The refineries are highly capital-intensive industries with a medium gestation period and
produce crucial products for meeting the country's needs including that of defence. For
setting up a 6 MMTPA capacity refinery complex with marketing facilities, investments to
the tune of Rs 5000 crores are required. These refineries need to be run efficiently so as to
make profits, and hence need to be modernised and updated from time to time.
The module on refining covers various facets of petroleum refining. Various refining
processes used in the refineries have been dealt with in this module. Characteristics of
crude oil and specifications of various petroleum products have been explained in detail.
Dealing with growth and development of petroleum refining industry in India, latest
advancements in various technologies for improving profitability of the refineries in the
face of increasingly stringent product specifications for meeting environmental stipulations
have also been described.
1
Unit 1 Notes
__________________
__________________
Growth and Development of __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
2 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 1 Growth and Development of Refining Industry in India 3
1999 - Reliance Petroleum Refinery at Jamnagar, Activity 1 B
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
4 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
14. Mangalore Refineries & Petrochemicals Ltd., Mangalore 6.00 (9.0) 1995
u Globalisation
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 1 Growth and Development of Refining Industry in India 5
u A few refineries with size far lower than world Activity 1 C
standards. i. Describe special features of
Downstream Industry.
Strategies for Indian Refineries ii. Challenges faced and
strategies to meet the same.
u Residue upgradation technologies for heavy crudes
__________________
u Technologies for producing lighter fuels __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
6 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Review Questions
1. Please identify technological challenges that refineries
will face in future.
7
Unit 2 Activity 2 A
How is the crude oil formed?
__________________
Crude Oil and Its __________________
Characteristics __________________
__________________
__________________
__________________
__________________
Objectives
__________________
After studying the unit, the learner will be able to:
__________________
y Understand the chemistry of petroleum, different types of crudes
__________________
and their characteristics.
– By geographical location
– Mix of individual wells
– Variance of wells with time
Chemistry of Petroleum
Crude oil contains almost all known hydrocarbons and non-
hydrocarbons. As it is drawn from the earth, it also contains
impurities like water, mud and salts which get associated
during its production and transportation.
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
8 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 2 Crude Oil and its Characteristics 9
v. 140ºC–240ºC Aviatin Turbine Fuel (ATF) Activity 2 C
i. How do you classify crudes
vi. 140ºC–270º Kerosene based on proportion of type of
hydrocarbon present in them?
vii. 270ºC–340ºC Gas oil ii. What is Crude Assay? How are
these Assays utilized?
viii. 340ºC–366ºC Jute Batching Oil (JBO)
__________________
366ºC plus fraction i.e. Reduced Crude Oil (RCO) is subjected __________________
to vacuum distillation for obtaining vacuum gas oils, raw __________________
Lube Distillate and short residue. Various fractions obtained __________________
from atmospheric and vacuum distillation are given further __________________
treatment to meet required specifications for use.
__________________
u Crude valorization
u Crude swapping
u Crude imports
u Grassroot refineries
u Inventory problems
u Demand/supply gaps
Types of Evaluations
Preliminary Assay
u Crude characteristics – Consistency of crude supply.
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
10 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Detailed Evaluation
u Design data for grass u TBP assay in
root refinery atmospheric and
vacuum range
Information Required
u Base and general properties of crude oil
u Presence of impurities
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 2 Crude Oil and its Characteristics 11
u Property curves of fractions vs% distilled Notes
__________________
– Mid% curves
__________________
– Yield% curves __________________
__________________
– ISO% curves
__________________
u Properties and yield of straight run fractions and __________________
residues
__________________
u Detailed composition of light distillates __________________
__________________
u Hydrocarbon Type Distribution of Middle and Heavy
__________________
Distillates
Ash Content
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
12 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Water = 10 API
Kerosene = 45 API
Motor Gasoline = 58 API
Natural Gasoline = 75 API
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 2 Crude Oil and its Characteristics 13
Sulphur Notes
__________________
Crude oils are also categorised based on sulphur.
__________________
u Sulfur is a measure of “sourness” and “sweetness” of __________________
crude __________________
Components % WT on Crude
C1 ND
C2 TRACES
C3 0.1
ISO-C4 0.1
N-C4 0.3
ISO-CS 0.3
N-C5 0.5
TOTAL 1.3
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
14 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes
Flow Characteristics of Crude Oils
__________________
__________________ Characteristics BH Crude Basrah Crude
Pour Point
u Indicates relative amount of wax present in crude oil
u Is the temperature below which pumping and
transportation problems may be encountered
u Along with viscosity, is used in pumping and design
calculations:
Wax Content
Normal paraffins above C16 are solid at somewhat ambient
temperatures. These hydrocarbons
u Affect the flow behaviour of crude
u Affect the product quality of gas oil, VGO and asphalt
u Lube manufacture is also dependent on wax content of
the crude.
Salt Content
It is measure of contamination in crude that will cause
overhead corrosion or foul up exchangers by settling and
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 2 Crude Oil and its Characteristics 15
sealing. It is removed in desalter by washing and settling Activity 2 D
mainly chlorides and sulphates of Na, K, Ca, Mg. i. How do you separate various
fractions present in crudes?
Resins
Waxy Agglomerates ii. What are various impurities in
Particulates crudes, their bad effects and
how are these impurities
Brine Droplet
removed?
iii. Method of determination of
Asphaltenes Na+ Na+ salt content, BS&W & Viscosity.
COO- COO- Alkyl Benzene
__________________
__________________
Naphthenates
Carboxylates __________________
__________________
FIGURE 2.1 POSTULATED STRUCTURE OF STABLISED EMULSION
__________________
75 •
Total Chloride evolved as
•
50 •
25
• •
0
0 100 200 300 400
Salt Content of Crude PTO
PTB AS
as NACL
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
16 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
BS & W ASTM D 96
ASTM D 4006
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 2 Crude Oil and its Characteristics 17
Asphaltenes, Carbon Residue and Ash Content Activity 2 E
Significance of TAN & KUOP.
Asphaltenes __________________
Carbon Residue
It’s a carbonacous residue formed after evaporation
and pyrolysis of the sample. The residue is coke and
determined by
Viscosity
It is a measure of resistance to flow and is an important
parameter for effective desalting. It is also highly dependant
on temperature.
KUOP
It is a measure of parafinity vis-à-vis aromaticity of crude.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
18 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Activity 2 F TAN
What are various crudes
processed in Indian Refineries? TAN is actually Total Acid Number.
Where are Indigenous crude
It is a measure of Naphthenic Acid (NA) contents in crude.
found? What is the sulphur content
of Indian crudes? This leads to corrosion in various sections of the unit. Over
__________________
1,500 known NA species are present in crude.
c. Assam crudes
d. KG Basin-Rava crude
All the above crudes are low sulphur =<0.5% wt, low
metal content, poor potential to yield LOBS and
bitumen, and some are waxy in character.
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 2 Crude Oil and its Characteristics 19
2. Imported crudes are sourced mostly from: Activity 2 G
What straight run fractions are
a. Gulf Region obtained in Atmospheric
Distillation? And in Vacuum
b. Nigeria Distillation?
c. Malaysia __________________
__________________
d. Australia
__________________
The above crudes are specially selected for production of __________________
Bitumen/LOBS/ATF, beside fuel products.
__________________
These crudes are having varying range of sulphur from low __________________
of high. __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
20 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Review Questions
1. Describe different characteristics of crudes dealt with
in this unit, their significance and typical values/ units
of measurement.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 2 Crude Oil and its Characteristics 21
3. From which Indian crudes, can you produce Notes
__________________
a. ATF
__________________
b. Bitumen __________________
__________________
c. Lubes
__________________
d. Micro-crystalline wax __________________
Unit 3 Notes
__________________
__________________
Specifications of Petroleum __________________
Specifications
What are Specifications?
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
24 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Pour Point
When heavy petroleum oils containing wax are allowed
to settle (like in storage tanks), wax separates out from
them making the oil immobile. If the oil does not move,
it cannot be pumped. The temperature at which the
oil becomes immobile (does not move) is termed as
pour point when tested under the conditions of the test
methods.
Distillation
The volatility of an oil is indicated by its distillation
characteristics. Unlike pure compounds, petroleum oils are
mixtures of several hydrocarbons and so will have a boiling
range instead of boiling point. The oil should have suitable
boiling range (volatility) so that it can be used in a particular
application. For example, Motor Gasoline which is used in
spark ignition internal combustion engines, has the following
specifications for distillation:
Recovery upto 70o C 10 to 45% Min
Recovery upto 100o C 40 to 70% Min
Recovery upto 180o C 90% v Min
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 25
Since the application is in a spark ignition engine, the Notes
Copper Corrosion
The fuel product comes on contact with metal parts such as
transfer pipe from storage tank, storage tank itself, the
burner in a kerosene stove, stove body itself, storage and
transportation equipment like pumps, storage vessels etc.
If the product is corrosive, it will corrode these parts and
reduces their life. Copper corrosion test indicates whether
the product is corrosive to copper containing alloys or not.
This test is applicable to all fuels.
Silver Corrosion
This test is done for Aviation Turbine Fuel (ATF)–Jet A1 Type
Sulphur
Sulphur, besides being corrosive to the fuel systems, is a
pollutant to the air and affects life. Global efforts are being
made to minimise the sulphur content in motor gasoline, high
speed diesel and fuel oils.
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
26 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes Viscosity
__________________
Viscosity is the resistance to flow. The unit of absolute or
__________________
dynamic viscosity is Poise and that of kinematic viscosity is
__________________
Stoke. Viscosity is an important property for lube oils
__________________
because it gives the lubricating property to the oil. This is
__________________ required to prevent wear and tear in the moving parts of a
__________________ machine on account of metal to metal contact. For fuel oils,
__________________ it gives flow properties which are needed for pump selection
__________________ for transporting.
__________________
Viscosity is measured in several ways. The most common
__________________
are Kinematic Viscosity measured in centi-stokes and Saybolt
Universal Viscosity measured in seconds.
Potential Gum
This test is applicable to motor gasoline which may contain
unsaturated hydrocarbons (olefins). Olefins are oxidised by
atmospheric oxygen to a gummy material which sticks to
the carburetor jet of the vehicle or inlet valve leading to valve
sticking which in turn results in the malfunction of the
engine. This type of gum is characterised by Potential Gum
test. It does not show the exact amount of gum that would
form on storage but gives a directional indication. The unit
of measurement is mg per liter.
Existent Gum
This test is applicable to motor gasoline.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 27
Octane Number Notes
__________________
It is defined as the per cent volume of iso octane in a mixture
__________________
of iso octane and normal heptane that gives the same
__________________
knocking as that of the fuel when tested under defined
conditions. __________________
__________________
Iso octane is assigned a value of 100 and normal heptane 0
__________________
octane number.
__________________
Normal paraffins have the lowest octane number. Next comes __________________
napthenes followed by iso paraffins, olefins and aromatics __________________
for the same carbon number. However, this is only a general
__________________
rule and may differ in the case of iso paraffins. Some of them
have lower octane numbers than corresponding napthenes
and some other higher octane number depending upon the
branching of the iso paraffin. Similarly Octane numbers of
olefins may also differ slightly as given below:
l n-Hexane 24.8
l Cyclohexane 83
l 2,2 Dimethy 1 Butane 91.8
l 2-Methyl Pentane 73.4
l Hexene-2 90
l Benzene >100
l N-Heptane 0
l Methyl Cyclohexane 75
l 2,3 Dimethyl Pentane 88
l 2 Methyl Hexene-1 92
l Toluene 107
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
28 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes per cent basis. In effect, there are always some exceptions
__________________ and some deviations.
__________________
Research Octane Number and Motor Octane Number.
__________________
__________________ These are determined under different conditions of the test.
__________________
Test Condition RON MON
__________________
Engine speed 600 RPM 900 RPM
__________________
__________________ Spark advance 13 o Variable
__________________ Mixture Temp -- 300 o F
__________________
In Take Air Temp 125o F 100 o F
Cetane Number
This test is applicable to diesel fuels which use ignition by
compression.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 29
but the order may vary depending upon the chain length of Notes
iso paraffins. __________________
__________________
Cetane Index
__________________
It is an alternative to cetane number. It is nearly equal to __________________
cetane number but not an actually determined value required __________________
cetane engine. Cetane index is not applicable to fuels
__________________
containing cetane improves.
__________________
Smoke Point __________________
__________________
Smoke point is defined as the maximum length of the flame
which does not give smoke when tested under prescribed __________________
conditions using the prescribed apparatus.
Aniline Point
Aniline point is the minimum temperature at which equal
volumes of sample and aniline are miscible.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
30 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Vapor Pressure
This is an indirect method of estimating most extreme low
temperatures under which initial vaporisation can be
expected to take place. It can be considered as a semi
quantitative measure of the amount of most volatile material
present in the product. It can also be used as a means of
predicting the maximum pressures which may be
experienced at fuel tank temperatures.
Colour
Two types of tests are applicable to petroleum products
1) Saybolt colour and 2) ASTM Color. The former is
applicable to white oils like kerosene, naphtha, MTO etc and
the other is applicable to diesel, vacuum distillates etc. The
colour gives an indication of the degree of refining or
contamination with foreign bodies.
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 31
BMCI (Bureau of Mines Correlation Index) Notes
__________________
BMCI is an indication of predominant nature of
__________________
Hydrocarbons in a product.
__________________
All normal paraffins have BMCI zero or less than zero. __________________
Where,
o
K = 50% Boiling Point in K
0
G = Specific Gravity @ 20 / 4o C
Bromine Number
Bromine number is defined as the grams of bromine that
react with 100 grams of the sample.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
32 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
__________________
Benzene Content
__________________
__________________ This test is applicable to motor gasoline.
__________________ Benzene is carcinogenic (causes cancer). Its limit in MS is
__________________ recognised by all countries. The specification for benzene in
__________________ India is 5%v for general supplies and 1% v max for supplies
to NCR.
Density
Petroleum products are liquids. They are sold on a
volume basis but the custody transfers are effected on
weight basis. Density is required for mass balance calculation
and is also useful for several correlations which indicate the
hydrocarbon nature and other properties.
Weathering Test
This test is applicable to LPG. It indicates the amount of
non vaporisable matter in LPG.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 33
Motor Gasoline (IS 2796 - 2000) Activity 3 A
PC Naphtha
Test Unit Method Requirement
Contd...
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
34 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
__________________ @ 38ºC
Contd...
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 35
Distillation Notes
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
36 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes Distillation
__________________ Recovery at 350 degree C % v P:18 85 min
__________________ Recovery at 370 degree C % v P:18 95 min
__________________ Flash Point degree C P:20 35 min
Moisture after
Contd...
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 37
Density (Dry) kg/ M3 P: 133 Report 560 min Notes
Fixed Carbon
__________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
38 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Net Heat 21 28 32 35 35 43
comb. MJ/Kg
- - - - 101 82-87
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 39
flame occurs. During this induction period, oxidation of fuel Notes
– Incomplete Combustion
– Partial Oxidation
– Cracking
– Pre-ignition
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
40 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes Volatility
__________________
__________________
Volatility of gasoline is its tendency to pass from liquid to
vapour phase. Volatility influences:
__________________
__________________ – Ease of starting
__________________
– Rate of warm up and acceleration
__________________
__________________ – Tendency to vapour lock
__________________ – Carburettor icing
__________________
__________________
– Crankase dilation
– Fuel economy
Ease of Starting
For a cold engine start, enough gasoline in the intake air
must be evaporated. Ease of starting depends on:
y Fuel volatility
y Engine design
y Cranking speed
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 41
4. The temperature and pressure in the fuel system Notes
__________________
5. The temperature of ambient air, underbonet
__________________
temperature and barometric pressure.
__________________
Measurement of Volatility __________________
__________________
1. ASTM D-86 Distillation
__________________
Significant temperatures are __________________
– FBP
(RVP)
2
K g /c m PSI KPa
P ro p a n e 1 4 .1 200 1 3 8 2 .8
B u ta n e 5 .6 80 5 4 9 .2
M o to r G a s o lin e 0 .7 10 6 8 .6
Carburetor Icing
It occurs due to following:
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
42 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Oxidation Stability
Gum formation takes place in storage due to oxidation/
polymerisation reaction undergone by the unsaturated
hydrocarbons and it accelerates at higher temperatures.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 43
Sulphur Compounds and Corrosiveness: Notes
__________________
Most of the sulphur compounds are removed in the
__________________
manufacturing processes. If these H2S and COS are mainly
__________________
corrosive and RSH is distinctively unpleasant.
__________________
Sulphur, on oxidation, forms oxides of sulphur which react __________________
with water to form sulphuric acid. __________________
91 81 to be widely available
Diesel Fuels
BIS Grades of Diesel Fuels
There are three grades of diesel:
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
44 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 45
– Presence of olefins gives rise to poor oxidation Notes
stability. __________________
__________________
Naphthenes
__________________
– Naphthenes follow olefins in cetane quality but are a __________________
good deal higher than aromatics. __________________
__________________
Aromatics
__________________
– Impart lowest cetane number and most important factor __________________
controlling the cetane number of cracked gas oil __________________
Ignition Quality
This is the most important property that controls combustion
process. It is measured as a cetane number which is a
measure of ignition delay and is controlled by
– Engine design
– Degree of atomisation.
Isoproyle Nitrate 17
n – Amyl Nitrate 23
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
46 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
– Large droplets
Cloud Point
u Congealing wax settles out and blocks fuel system line
and filters.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 47
under prescribed conditions will not flow through a Notes
filter or requires more than 60 sec for 20 ml to pass __________________
through. __________________
__________________
Pour Point
__________________
u Pour point gives a useful guide to the lowest __________________
temperature at which the fuel can be cooled with setting. __________________
__________________
Cleanliness in Use
__________________
Carbon Residue __________________
__________________
u Gives some indication of coke forming / deposit forming
tendencies in the engine.
Ash Content
u Indicates the presence of small quantities of metallic
soap or volatile porphyrines.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
48 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Corrosive Constituents
Sulphur Content
u Strict emission regulations require stringent sulphur
specifications
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 49
an equilibrium rather than to fluctuate between Notes
Uses
u Steam boilers
u Industrial applications requiring heat
u Gas turbines
u Diesel engines
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
50 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
__________________ Plugging of fuel lines Oxidation of the fuel to Addition of inhibitors and
strainer and burner tips produce acid and sludge sludge dispersants
__________________
Fuel system corrosion Acidic, sulphur Application of corrosion
__________________ compounds, water, sludge inhibitors
__________________ High temperature fouling & Na, V in fuel form low - magnesium additives
corrosion melting point sulphated
__________________ ash - reduce excess air
- combination of both
__________________
__________________
Effect of Sulphur
__________________
__________________ u Raises dew point of fuel gases
Effect of Metals
u Vanadium is a major metallic impurity in residual fuel
oil. Causes corrosion in high temperature zone.
u In combustion,
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 3 Specifications of Petroleum Products & Related Tests 51
Review Questions Notes
__________________
1. What is the significance of following tests and to what
__________________
petroleum product these are related:
__________________
- Flash point __________________
- Distillation __________________
__________________
- Smoke point
__________________
- Octane number
__________________
- Cetane number __________________
- Viscosity __________________
- Silver corrosion
- BMCI
- Weathering test
- Copper corrosion
- Vapour pressure
Unit 4 Notes
__________________
After studying the unit, the learner will be able to: __________________
__________________
y Understand the functioning of various process plants in a refinery
and their integration with one another.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
54 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes
__________________
Naphtha
__________________
Kerosen
Kerosene
__________________
Petro
Gasolene
__________________ Diesel
__________________
LPG
__________________ CRUDE CRUDE CDU/
TANKS VDU FCC Aro Paraxylene
__________________
Propylene
PP Polypropelene
__________________ Coker
MPP Power
__________________ Sulfur
__________________
FIGURE 4.1 INTEGRATED REFINERY AND PETROCHEMICAL BLOCK
DIAGRAM
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 55
Crude Distillation Notes
__________________
Brief process descriptions have been provided (please refer
__________________
block flow diagram of CDU, VDU and SGU). This part has
__________________
three main sections.
__________________
1. Desalting
__________________
2. Distillation-Atmospheric & Vacuum __________________
__________________
3. Saturated Gas Concentration Unit (SGU)
__________________
Lean Gas
Other streams
from other limits
LPG to Marox
__________________
S
G
C Naptha to
__________________
Hydrotreater
Atm LK/ATF
F
u osp
Crude in Desalter heri
r
Flash n c HK
Drum a Col.
c
e Diesel
Preheat 1 Water in Brine Out Preheat 2 Preheat 3
JBO
LVGO
V
Fumace a HVGO
c. TO FCC Lube
C distillates
o
l. Vacuum
Residue to
Belayed Coker/
Bitumen.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
56 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes Desalting
__________________
The crude oil is contaminated with various impurities–
__________________
mainly salts of Ca, Mg, Na, CI, SO4, etc. These salts, however,
__________________ in small proportions in crude, can cause severe corrosion in
__________________ crude units, particularly in the overhead section. Several
__________________ refineries worldwide have faced emergency shutdowns or
__________________ have had to release hydrocarbons due to corrosion and
__________________
material failures. Hence, it is important to remove the salts
from crude prior to distillation. The desalters are designed
__________________
for 99% salt removal and reach less than 1 ptb (part per
__________________
thousand barrels) in desalted crude.
__________________
Crude oil received from tank farm is heated from 30 to 140-
150ºC in cold preheat trains. This is done by recovering heat
from outgoing products streams from the unit. This prepares
crude for efficient desalting. Then it is passed through a
desalter after being mixed with de-emulsifier and water
thru a mixer valve. In the desalter, crude passes through
high electric field. The salt dissolved in water settles at the
bottom as brine and desalted crude with less than one parts
per thousand barrel comes out from the top of the vessel.
Separation of water containing salt is enhanced by de-
emulsifier. Desalters remove salts, sludge and mud from
crude to avoid corrosion and fouling in exchangers columns
and downstream equipment.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 57
386º C are reheated under vacuum condition (to avoid Notes
cracking) and fractionated in vacuum column of VDU. __________________
__________________
Besides the straight run products such as LPG, Naphtha,
LK, HK and Diesel, the other distillation products are __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
58 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
7. Energy conservation
Diesel Hydro-Treatment
The purpose of diesel hydrotreating unit is to:
Salient Features
u 98% desulphurisation and 70% denitrification (VGO
hydrotreater).
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 59
gas oil, HCO from the Delayed Coking Unit and LCO from
Notes
FCCU
__________________
Diesel Hydrotreater __________________
__________________
Make up H2 __________________
Offgas to
Ovhd. SGCU
condensor __________________
Recycle gas __________________
Diesel
__________________
__________________
Diesel
VGO
VGO __________________
Product
LN
separator __________________
LN
Stripper
Hydrotreater To waste
water system
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
60 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
VGO Hydro-treatment
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 61
Hydrogen Production and Management Notes
__________________
Hydrogen Production Plant __________________
technologies: __________________
__________________
(i) Partial oxidisation
__________________
(ii) Coal gasification __________________
__________________
(iii) Electrolysis of water
__________________
(iv) Steam hydrocarbon reforming __________________
Steam
HP BFW HP steam export
Recycle H2 Generator
Refinery Product
fuel gas Feed gas Feed Steam H2
Shift & gas Gas
compr. purification reformer cooling purification
Natural gas
LPG
Waste gas
Main pumping section Refinery general
fuel gas
Naphtha
(future)
Hydrogen Feed
Feed for hydrogen production plant — (i) Refinery fuel gas,
(ii) saturated LPG, (iii) Natural gas, (iv) Light Naphtha.
Process Description
Feed (Refinery Fuel Gas, or Natural Gas or LPG or Hydro-
treated Light Naphtha) is first mixed with recycle hydrogen
and passed through pre-treatment section. The function of
pre-treatment section is to remove sulphur in feed by
hydrogenation, in the form of H2S, and removal of chloride
by sodium aluminate, the catalyst used is CoMo or NaMo.
H2S is absorbed in Zno bed.
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
62 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
CO + H2O l H2 + CO2
CO + H2O l H2 + CO2
PSA Cycle
One PSA cycle is built up of 2 basic phases:
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 63
Hydrogen Management Notes
__________________
Hydrogen gas in the refinery comes from
__________________
(i) Hydrogen production plant – as described above __________________
__________________
(ii) Catalytic reformers
__________________
- in the refinery __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
64 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 65
Sulphur recovery is required because of: Notes
__________________
l Increasing demand for environmental friendly fuels.
__________________
l Increased used of high sulphur and heavier crudes in __________________
future.
__________________
l Tightening of emission standards by government/ __________________
Regulatory bodies. __________________
Process Description
Refer sulphur plant block flow diagram (Figure 4..8)
Acid gasses from Amin Recovery Unit (ARU) and sour gasses
from sour water stripper are heated in pre-treater and burnt
in presence of regulated quantity of air from CLAUS Air
Blower in CLAUS Reaction Funance. The product from claus
reaction funance is passed thru 1st and 2nd pass condensers.
. Acid gases
from ARU
Air
Sour gases
from WWSU Liquid sulfur To sulphur
degassing pit granulation unit
Air
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
66 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes thru 1st and 2nd pass condensers. The condensed sulphur is
__________________ taken to Liquid Sulphur Degassing Pit. The uncondensed
__________________ vapour is passed through Cold Bed Adsorption (CBA)
__________________ Reactors 1st and 2nd passes. The outlet vapour is passed
__________________ thru 1st and 2nd pass of CBA condenser. The condensed
sulphur is routed to liquid sulphur degassing pit and the
__________________
remaining gases are taken to tail gas incinerator for burning
__________________
and releasing thru high stack. Sulphur after Degassing is
__________________
taken to granulation unit from where it goes for despatch to
__________________ market. The off-gases from sulphur degassing pit is recycled
__________________ to CBA section for recovery of sulphur.
__________________
What is Claus Reaction?
“When two molecules of Hydrogen Sulphide (H2S) react with
one molecule of Sulphur Dioxide (SO 2) to give elemental
sulphur in the presence of Alumina Catalyst, the reaction is
called Claus Reaction”
H2S+3/20 2àSO2+H2O
2H2S + SO2à3/n Sn+2H2O
Overall Reaction 3H2S + 3/2 O2à3/nSn + 3H2O
Process Variables
Air to Acid Gas Ratio H2S/SO2 Ratio = 2:1
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 67
Process Description Notes
__________________
Refer figure 4.9 simplified block flow diagram
__________________
The fuel gas containing H2S is introduced in Middle section __________________
of Amine Absorber Column where Lean Methyl Diethanol is __________________
introduced near top section. By counter current flow H2S is
__________________
absorbed in Amine and sweet fuel gas (FG) free of H2S comes
__________________
out from column top. The rich Amine from bottom of the
__________________
absorber column is taken to Flash Drum where any fuel gas
carried over is separated out. The rich Amine is then pumped __________________
through heater where it is heated by the hot lean amine __________________
stream coming from bottom of Amine stripper. In the __________________
stripper, Amine Acid Gas from top of the column is routed
to sulphur recovery plant along with sour gases from other
process units. The lean Amine from bottom of the stripper
exchanges heat with Rich Amine and then pumped to storage
tank through cooler for recycling to Amine Absorber.
Absorption Sweet FG
Section
Lean Amine
Regeneration
Abs Stpr Section
FG
Process Chemistry
The circulating amine is 35% MDEA solution,
HSH H+ + SH–
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
68 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Delayed Coking
Coker Unit
The purpose of coking unit is to produce valuable distillates
and Petroleum coke (by-product) by upgrading heavy residual
stocks from vacuum distillation and other process units
generating heavy stock. This unit is also known as delayed
coker. Slops from various other process units which do not
find proper home can also be processed in coker to get
valuable products. The feed to this unit is subjected to severe
thermal cracking thereby producing refinery fuel gas, coker
gasoline, coker kerosene, coker gas oil, coker furnace oil,
residual furnace oil and coke.
Process Description
Refer block flow diagram of coker
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 69
Heavy cycle gas oil
Notes
LLP Flare Light cycle gas oil
To HNUU __________________
HP flare
To LNUU __________________
Vacuum
Residue
tank Unsat gas Unsat __________________
conc. unit LPG To LPG
Coker Merox unit spheres __________________
FG __________________
distribution To flare
system __________________
Coker consumption
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
70 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 71
Air is injected in catalyst regenerator for burning coke. Water Notes
generated in the system leaves with flue gas from Power __________________
Recovery Train. Flue gases are sent to CO boiler and __________________
thereafter to a clean up system to remove particulates, SOx
__________________
and NOx. ZSM additive is added to catalyst to increase LPG
__________________
yield.
__________________
Residues are also used as feedstock in RFCC.
__________________
FCC
__________________
__________________
__________________
__________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
72 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
3. Isomerisation
4. Dehydrocyclisation of paraffins
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 73
Parex Process Unit Notes
__________________
The process is selective adsorption of Paraxylene (PX)
__________________
on molecular sieve and subsequent desorption of PX by
__________________
a suitable desorbent. The molecular sieve is basically
__________________
Y type zeolite (alumina silica) which preferentially
adsorbs PX. __________________
__________________
Toulene column bottoms and C8 isomerates from Isomar
__________________
section are fed to the xylene fractionation column. The
__________________
overhead product of the xylene columns are feed to the parex
__________________
unit.
__________________
Feed and desorbent goes to the Parex adsorbent chambers
via rotary valve. PX gets adsorbed on the molecular
sieve and subsequently desorbed. Two streams come out
of the chambers known as raffinate stream and extract
stream.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
74 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Notes
__________________
__________________
__________________
__________________
Polypropylene
It is designed to produce homo, random and impact
copolymer. The main raw materials are propylene and
hydrogen. (Refer Figure 4.13 Propylene Block Flow Diagram)
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 75
Notes
__________________
__________________
__________________
__________________
__________________
__________________
__________________
__________________
__________________
__________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
76 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Total 100.0
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 77
Typical Yield Pattern of FCC Notes
__________________
Feed: 100% __________________
Low ‘S’ VGO 53.7 __________________
CGO 20.3 __________________
DWO 9.0 __________________
VR 17.0 __________________
Output __________________
Gas 3.9 __________________
H2S 0.5 __________________
LPG 12.7 __________________
Gasoline 12.5
TCO 53.4
CLO 8.6
Coke 7.9
Loss 0.5
Total 100.0
Output:
LPG 2.5
Cok. Gasoline 4.5
Cok. Kero-I (LK) 22.5
Cok. Kero-II (HK) --
Cok. Gas Oil (CGO) 24.5
CFO 14.5
RFO 6.5
RPC 16.3
GAS 6.3
Loss 2.4
Total 100.0
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
78 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
l Improved operations
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 79
coastal refineries, crude oil is received through tankers. Notes
Depending on the capacity of the refinery, crude tankage __________________
available, draft available at receiving oil jetty, size of crude __________________
oil tanker varies from small to very large. Quantity of crude __________________
received in the refinery is monitored by measuring dip of __________________
receiving tank and flow metre readings installed on crude
__________________
pipeline. India imports almost 70% of its crude oil
__________________
requirement. Due to strategic reasons, crude oil storage is
__________________
being increased from 15 days to 45 days of the refinery
capacity. __________________
__________________
2. Crude preparation for feeding to distillation units __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
80 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
1. Pipelines
2. Rail
3. Road
4. Coastal
OLEUM &
E TR EN
FP
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 81
1. Pipelines: Out of the above dispatch modes of Notes
petroleum products, maximum dispatch takes place __________________
through pipelines (60 - 70%). Pipeline systems have __________________
following in-built advantages over other means of __________________
transportation available for petroleum products: __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
82 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
c. H2S flare
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 4 Integrated Refinery and Petrochemical Plants 83
in the form of leakage and manual draining is provided Notes
to avoid build up of salt concentration. Make up water __________________
is taken from fresh water system. In some of the coastal __________________
refineries, once through cooling water system is used __________________
and sea water is utilised for the cooling of products. __________________
5. Fuel oil and fuel gas system: For providing fuel supply
to process units furnaces, and boilers in captive power
plant, this system is provided. In fuel gas, mostly
methane, ethane and purged gases from hydrogen units
are used. The supply system is maintained at constant
pressure. For fuel oil, varying range of fuels from LDO
to Asphalts are used. Storage tanks, blending facilities
and pumping system are provided for supply of fuel oil
to furnaces and boilers.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
84 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Unit 5 Activity 5 A
Describe the scenario of
availability of sweet & sour crudes
After studying the unit, the learner will be able to: __________________
__________________
y Understand Future Refining Scenario in terms of availability of
crudes, stringent specifications of various petroleum products, __________________
dwindling refinery margins etc.
__________________
y Strategies for overcoming various challenges.
u Energy optimisation
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
86 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 5 Future Refining Scenario 87
– Possible employment of robots Notes
__________________
– Computerised system supervising operations
__________________
automatically
__________________
– On-line analysers and blending __________________
Review Questions
1. What modifications would be needed in refinery process
plants for
- To increase/improve profitability.
Unit 6 Note
__________________
__________________
Advances in Petroleum __________________
Refining __________________
__________________
__________________
__________________
__________________
Objectives
__________________
After studying the unit, the learner will be able to:
__________________
y Understand in a generic fashion advances in refining process
technologies
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
90 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
u Hydro processing
– Hydro cracking
u Isomerisation
u Catalytic Reforming
u Alkylation
u Etherification
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 6 Advances in Petroleum Refining 91
In this process alongwith power, steam and H2 can be Notes
produced which are required in the refinery. __________________
__________________
u More and more use of information technology.
__________________
u Modelling simulation are being used for: __________________
Trouble
shooting
Catalyst Modelling
health and Catalyst
monitoring simulation selection &
optimisation
Operator
training Process
optimisation
Feedstock
selection
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
92 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
– Integration with IT
Review Questions
1. Explain the following processes and relate the same to
the relevant products:
- Isomerization
- Alkylation
- Etherification
- DHDS
- Catalytic reforming
- Catalytic cracking
Unit 7 i.
Activity 7 A
What should be ideal losses
in any Process Control?
Minimisation
__________________
__________________
__________________
__________________
__________________
Objectives
__________________
After studying the unit, the learner will be able to: __________________
y Understand the significance of losses in a refinery and their impact __________________
on profitability
__________________
y Understand sources/areas of losses and measures adopted by
the refineries for their reduction.
A. Apparent losses
B. Real losses
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
94 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Unit 8 i.
Activity 8 A
What strategies have been
adopted to optimize energy
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
96 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Activity 8 B 6. Optimisation of
How do DDCS and advanced
process controls help conserve i. Reflux ratio in distillation process
energy?
ii. Solvent feed ratio in extraction process
__________________
__________________ 7. Use of soaker technology for visbreaking.
__________________
8. Use of microprocessor based control system alongwith
__________________
DDCS (Digital Distributed Control System) and
__________________ advanced process control.
__________________
9. Heat recovery from process streams for heating colder
__________________
process streams/ boiler feed water.
__________________
__________________ 10. Power generation in new refinery will be through
__________________ combined cycle operation integrated with gasification.
Review Questions
1. How does energy consumption at Indian refineries
compare with best run refineries over-seas? Express
this in energy consumption indices like
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 8 Energy Conservation 97
2. Explain the role of house-keeping measures for bringing Notes
down energy consumption resulting in energy __________________
conservation. Enumerate some important measures of __________________
this nature which the refineries/ chemical industries __________________
take. __________________
__________________
__________________
__________________
__________________
__________________
__________________
99
Unit 9 Notes
__________________
__________________
Gross Refining Margin __________________
__________________
__________________
__________________
__________________
__________________
Objectives
__________________
After studying the unit, the learner will be able to:
__________________
y Provide an appreciation for various elements affecting GRM which
in essence is the profitability of a refinery.
Internal Factors
u The crude mix (low sulphur and high sulphur) processed
by the refinery
External Factors
u The international prices of various crudes and products
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
100 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Net Margin
The net margin is the difference between gross margin and
operating cost. This is virtually the net profit to the refinery.
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 9 Gross Refining Margin 101
For higher profitability, gross margin should be increased Activity 9 B
and operating cost reduced by increased efficiency in refining Explain how netback estimation
method is used for crude selection
operations. Attachment 1 shows a sample calculation for
for a refinery?
gross and net margin for a refinery.
__________________
ATTACHMENT 1: GROSS MARGIN __________________
Rs/Crores __________________
__________________
Realisation of transfer of products 4050
__________________
Cost of crude (inclusive of freight, wharfage, customs duty) 3720 __________________
__________________
Gross margin 330
__________________
Th’put-MMT 3.98 __________________
__________________
GROSS margin Rs/MT 829
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
102 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
MS 14832 12 12 12 12 13 12 12
__________________
SKO 13617 11 11 11 11 11 11 11
__________________ HSD 14361 48 58 54 58 51 53 59
OF 10100 0 0 0 0 0
__________________
L.SHS 10100 1 0 0 0 6 0 0
__________________ RPC 5535 2 1 1 2 6 1 1
SULPHUR 256 1 1 1 1 0 1
__________________
SL. WAX 13851 0 0 0 0 0 0 0
__________________ F&L 0 10 12 11 10 6 8 9
TOTAL 100 100 100 100 100 100 100
DIST% 86.0 86.0 87.0 87.0 82.0 91.0 89.0
CRUDE 11987 11361 11714 11994 11987 12859 11994
VALUE,RS/MT
PROD 12408 12415 12454 12570 12593 12900 12780
VALUE,
RS/MT
LESS IPN 100 100
COST, RS/MT
NET BACK, 421 1054 740 476 606 41 686
RS/MT
Review Questions
1. What are the most crucial factors and which are indeed
controllable, affecting GRM?
Unit 10 Notes
__________________
__________________
Oil Accounting __________________
__________________
__________________
__________________
__________________
__________________
Objectives
__________________
After studying the unit, the learner will be able to:
__________________
y Provide a general idea of accounting methods for crude and
petroleum products and its significance.
Crude oil received under bond from port locations and re-
warehoused in a refinery needs to be accounted on FIFO
basis and appropriate customs duty is required to be paid
and accounted for the quantity taken in the process of
refining. This is known as ex-bonding of crude.
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
104 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 10 Oil Accounting 105
Statutory returns as per excise procedure are filed Notes
periodically by the oil accounts section with the range office. __________________
Records, returns, documents, etc prepared by the oil __________________
accounting section are open to inspection by the range office. __________________
Letters, show cause notices, if any, are normally issued __________________
through the oil accounts section.
__________________
Unit 11 Activity 11 A
What is the present level of custom
and excise duties on crude and
Products __________________
__________________
__________________
__________________
__________________
Objectives
__________________
After studying the unit, the learner will be able to:
__________________
y Give an overview of excise and customs procedures/formalities
__________________
as applicable.
__________________
y Provide an appreciation for the manner in which custom and excise
duties affect profitability. __________________
ER
YO
GY
u
UNIV ER SIT
ST U DI ES
108 Refining fo
n ~;
k ; k ‘ k f D r o’
k~ e
Review Questions
1. In the event of excess refining capacity (with glut in the
market), what level(s) of production should be maintained
to meet domestic demand and export the product?
GY
u
UNIV ER SIT
ST U DI ES
fo
n ~;
k ; k ‘ kf D r o’
k~ e
UNIT 11 Excise and Custom Petroleum Products 109
Bibliography Notes
__________________
1. Advanced Petroleum Refining, Dr. G.N. Sarkar, Khanna
__________________
Publishers, Delhi
__________________
2. Reading Material of Programme on Petroleum Refining __________________
and Petrochemical Technology, Indian Institute of __________________
Petroleum, Dehradun. __________________
References
1. Advanced Petroleum Refining, Dr. G.N. Sarkar, Khanna Publishers,
Delhi
2. Petroleum Refining Engineering, W.L. Nelson, McGraw Hill
3. Modern Petroleum Refining Processes, Dr. B.K. Bhaskar Rao, IIT,
Kharagpur
4. Advances in Petroleum Chemistry and Refining - Kennetha A. Kobe,
John J. Moketta
5. The Chemistry and Technology of Petroleum (Mercel Dekkar), Speight
J.G.
6. Petroleum Monthly Publication, Malaysia
7. Hydrocarbon Processing
8. New Challenges, Technologies Options for Refineries - IOC, R&D Report
No. 96018, March, 1996
9. KBC Petrofine Users Manual
10. A Layman's Introduction to Oil Refining - D.G. Crook
11. Refinery Loss Controls - Course Manual Presented by Dr. Eric Robinson
and Dr. John Miles on 20-21 May 1996 at Singapore.