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 PROFITABILITY

Various 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

DO1 DAB LOK PEL GRA KUB DAL DRU TOP NOW MEY CLB ANB Crude Doba Blend - Later Production Dar Blend Lokele PetroZuata Light Upgraded Grane Kuito Blend Dalia Duri Topacio Nowrooz Merey Cold Lake Blend Antan Blend API 21.1 26.4 19.9 26.3 18.7 19.3 22.6 20.4 26.1 20.4 15.7 19.7 27.2 %S 0.12 0.12 0.41 2.32 0.83 0.68 0.50 0.22 0.31 3.75 2.60 3.89 0.26 Origin Chad Sudan Cameroon Venezuela Norway Angola Angola Indonesia Equatorial Guinea Iran Venezuela Canada Nigeria Equatorial Guinea SPG 0.93 0.90 0.93 0.90 0.94 0.94 0.92 0.93 0.90 0.93 0.96 0.94 0.89 TAN 3.49 2.80 2.70 2.44 2.20 2.00 1.72 1.30 1.18 1.03 0.96 0.84 0.83

CEI

Ceiba

29.8

0.57

0.88

0.82

High TAN Crudes

Crude
ZAB ALR STY MAR HUA ABO LA4 ESC MOU KIS KOM BON OE4 ESG Zafiro Blend Al Rayyan Stybarrow Marlim Hungo/Kizomba A Abo Lavan Blend Escalante Moudi Kissanje Blend Kole Marine Bonga Oman Export Blend Escravos (Gulf)

API
29.5 24.1 22.1 19.8 27.3 38.7 36.2 23.2 36.7 28.2 31.6 29.4 32.8 34.1

%S
0.26 3.36 0.13 0.77 0.65 0.14 1.44 0.19 0.27 0.44 0.34 0.25 1.07 0.15

Origin
Equatorial Guinea Qatar Australia Brazil Angola Nigeria Iran Argentina Cameroon Angola Cameroon Nigeria Oman Nigeria

SPG
0.88 0.91 0.92 0.94 0.89 0.83 0.84 0.91 0.84 0.89 0.87 0.88 0.86 0.85

TAN
0.81 0.78 0.75 0.74 0.72 0.72 0.71 0.69 0.65 0.64 0.61 0.59 0.59 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 TAN Brent Price US$50 per barrel Discount = (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 9095% 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 continuous. components to finished tanks is

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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

LPG Straight RUN NAPHTHA Euro III/IV MS AVIATION TURBINE FUEL SUPERIOR KEROSENE OIL EURO III/IV HIGH SPEED DIESEL JUTE BATCHING OIL(C&P) FURNACE OIL CARBON CLACK FEED STOCK BITUMEN 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. Mfg. Spec
1 2 3 4 5 Weighted Average

Sp. Gr. 0.721-0.773

0.7357 0.7343 0.7396 0.7490 0.7421 0.7401

S 145 max
118 106 120 60 121 105

RON 91.5 min

91.9 91.8 91.6 91.6 91.6 91.7

Benzene 0.9 max

0.7 0.7 0.7 0.9 0.9 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 300ppmReduction by 13700ppm @ 0.006 MT of H2 consummed/ MT of Feed processed MT of H2 consumed/unit PPM Sulfur removal--> Extra Cost in RS of H2 cost /Unit ppm Sulfur removal-->
MS-BS-III RON BLEND QTY MT 100 14900 15000 15000 DENSITY 0.685 0.7401 0.7348 RON 70 91.7 91.5 MON 65 85 84.9 B I 1 1 1 VOL 146.0 20268 20414 VOL*BI 146.0 20267.5 20413.5 VOL*BI*R ON VOL*BI*MON BENZENE % VOL 10219.0 9489.1 2 1858532.6 1868751.6 1722740.2 1732229.2 0.8 0.81 BENZENE*VOL 292.0 16214.0 16506.0

4.37956E-07 0.081

1 2

LT NAPH(C5-70)-LS MS-BS-III TOTAL

Naphtha upgradation in MT/ unit RON/ MT of actual MS production--> Average price Differential RS/MT between MS-BS II and Naphtha -> Margin improvement: RS /MT/ UNIT RON---------------------------------->

0.007 -5500 37

Quality

Actual Manufacturing spec Average Road/Rake 91.5 150

RON Sulphur (ppm)

91.70 105.00

QGA w.r.t Manufacturing spec 0.20 45.00

Cost of QGA Dispatch as per blend Rs/MT/Unit -36.7 - 0.081 Total Rs Cr

QGA w.r.t Manufacturing spec Rs Crores -0.011 -0.005 -0.016

15000.0 15000.0

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

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

Sl. No. Mfg. Spec
1
2 3 4 5 Weighted Avg

Sp. Gr. 0.820-0.845

0.8244
0.8225 0.8239 0.8281 0.8246 0.8247

S 340 max
252
254 274 233 246 252

Cetane No. Rec. at 360 Flash 0C Point 51.4 min 95.5 min 37 min
51.8
51.8 51.8 51.8 51.8 51.8

95.7
95.7 95.7 95.7 95.7 95.7

39.5
38 39 42 40 39.7

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

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

E3 HSD FLASH PT. COMPONEN T BS III HSD HY.NAPH TOTAL %S 0.025 0.050 0.026 MT 29590 410 30000 30000 30000 MT S 746 21 766 RECOVER %V RECV Y Density 96 100 95.77 3433689 56164 3489853 0.8247 0.7300 VOL 35880 562 36441 ^C 39.7 8 FLASH PT. ^F 103.46 46.4 2.8 4.0 LOG(10) I FL PT. INDEX(I ) V*I CETANE NO. 51.8 32.0 51.5

650.9 640.83 10010.0 154.28 795.10 795.10

TOTAL/AV

0.026 (0.045 SPEC)

766

95.8 (95.5 SPEC)

3489853

0.8232

36441

IB = LOG10(I) = FL.PT.(^F) = FL.PT.(^C) =

795.10 2.90 98.77 37.09 SPEC(37)

51.5

Product

HSD-BS3
Manufacturin Actual g spec Average Cost of QGA as per QGA w.r.t Dispatch blend Manufact uring (R/R) spec Rs/MT/Unit 93.00 30000.0 0.08144 2.70 30000.0 6.79746 Total QGA w.r.t Manufacturing spec

Quality

Sulphur (ppm) Flash Point, C

(Rake/Road Dispatch) 345 37

252.00 39.7

Rs Crores -0.02 -0.06 -0.08

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

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 and improve profitability To lower risk of missed export schedules To improve refinery planning/scheduling accuracy

CONTINUOUS IMPROVEMENT PROCESS

Haldia Refinery
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