Reliance Industries Limited Techno-Commercial Aspects in Opportunity Crude Processing - A Refiner’s Perspective International Conference on RAJARAMAN J. Refining Challenges & Way Forward 16-17 April 2012, New Delhi RIL’s Existing Refinery At Jamnagar, Gujarat
Reliance Industries Limited – A Quick Introduction RIL’s Existing Refinery At Jamnagar, Gujarat
Reliance Industries (RIL) Today India’s largest private sector enterprise with strong financials (FY April 2010-March 2011): Revenue of $58.0 billion EBDIT of over $ 9.2 billion Industry leading position across businesses Revenues EBIT Integrated energy chain in Upstream, Refining Others Oil & Gas Others and Petrochemicals 0.2% 5.8% 0.1% Oil & Gas 26.6% Successfully completed transformational Petchem Refining 21.3% 36.4% initiatives and created world-scale facilities Refining Sights set on growth initiatives that are 72.7% Petchem 36.9% unparalleled in scope, scale and value Gaining momentum to achieve the next phase of significant growth 3
Techno-Commercial Aspects in Opportunity Crude Processing : A Refiner’s Perspective RIL’s Existing Refinery At Jamnagar, Gujarat
What are Opportunity crude oils? • Grades of crude that have characteristics that make them more challenging to process • Quite dependent on capability of a refinery in terms its design basis • By definition, such grades can not access all the refineries in the Globe : so, a smaller customer base • For a refiner equipped to handle, these grades may present an ability to lower cost of acquisition and hence scope to add more value 5
How could one categorise opportunity crude oil? Grades that are acidic say, Total Acid Number >0.5 Grades that are high Pour Point say, >6 Deg C Grades that are extra heavy say, API < 15 and very viscous say, Kinematic Viscosity >350 cst @ 40 Deg C Secondary units feed quality e.g. VGO Nitrogen, VGO metal contents for refineries with FCC 6
Challenges in processing High Acid Crudes Processing Issues: Higher level of acid in crude overhead systems (and other circuits where acid is concentrated) – Risk of corrosion Product quality issues: acid distribution in Kerosene/AGO/VGO cuts; Would it pose concerns on meeting specs for products? 7
Refiners’ approach to process High Acid Crude oil • Systematic unit-wise impact analysis of high TAN crude on existing metallurgy. • Dilution by blending (large CDU capacity is helpful) • Chemical Inhibition method in a limited way (in respective circuits) • On-line corrosion monitoring systems at specific sensitive points. 8
Commercial Impact of processing High Acid Crude oil • Continuous use of high acid crude in a refinery without metallurgy protection needs to consider: • Operating cost towards Chemical Inhibitors • Investment for installing corrosion monitoring systems • Stepped up inspection of critical equipment/points for integrity • Investment decisions dependent on cost-benefit of processing such grades 9
High Pour Point (HPP) Crudes Refiners’ Approach Challenges Commercial Impact Transportation & handling Heated vessels, heated Generally smaller cargo size results in receipt/storage facilities higher freight. Handling cost at receiving port Investment towards creating Infrastructure for long term intake. Wax precipitation Blending with Additional cost towards procuring compatible grades complimentary grades Products quality : Cold Addition of Pour Point Cost towards additives properties of diesel viz. Depressant in diesel; Cold filter plugging point, Cloud point Limit % in blend Parrafinicity may lead to Monitor VGO properties FCC t 'put could be limiting resulting in higher yield of potential loss (if processing large % of LPG/Gasoline in FCC HPP crude) 10
Extra Heavy/High Viscosity Crudes Refiners’ Approach Challenges Commercial Impact Transportation & pumping Dilute and transport Price differential gets Heat and Transport adjusted to the extent of cost of diluents and freight costs Slower release of water in Segregated tanks for Heavy High retention time and storage tanks - Tendency to grades hence, higher inventory form stable emulsions carrying cost Blending: Stratification Controlled blending and Inventory carrying cost and resulting in layering tankage segregation possibly demurrage penalties Dehydration constraints Desalter modifications in Investment on desalter terms of size and current modification capacity (amperage) Higher VGO & Vacuum Choose appropriate Higher basket price due to residue complementary crude to higher cost of complementary blend grades Higher % processing would require investment decision 11
High Nitrogen Crudes Refiners’ Approach Challenges Commercial Impact Reduction in Hydrotreater / VGO Nitrogen limit; Operating cost to improve de- FCC catalyst life cycle nitrification of feedstock. High severity operation Cost of catalyst replacement / smaller of Hydrotreators turnaround cycle Inferior FCC yield - - Yield penalty increased heavy ends i.e. slurry Corrosion in VGO Nitrogen in VGO to be Adverse affect on health of the reactor. hydrotreater. limited. Stepped up inspection for Hydrotreater internals 12
Crude Oils with High Metal Contents Types of Metals Effect Mercury (organic type) – In naphtha, poisons Petro-Chemical Arsenic & Mercury a) cracker catalyst Mercury (inorganic type) & Arsenic – Environmental hazard (kills b) biomass in ETP) Nickel & Vanadium in a) Hydrotreater, Hydro Cracker, FCC catalyst poisoning; Severely VGO impact catalyst life cycle. b) Gas make in FCC increases, disturbing the yield Improper cracking in Hydro-cracker – inferior yield c) Presence of metals in crude oil leads to improper separation of salts in the desalter. In absence of specific treatment, need to be managed thru’ blending. 13
Commercial impact of processing Crude oils with High metal contents • Cost-Benefit analysis to be done for lower crude cost vis-à-vis: Desalter modifications Catalyst replacement cost/Turnaround impact. Impact of inferior yields & increased operating cost 14
Current Market conditions for Opportunity Crudes RIL’s Existing Refinery At Jamnagar, Gujarat
Factors affecting differentials of Opportunity Crude oils • How widely is that grade accepted? Larger the number of refineries capable to process opportunity grades, wider is the customer base; Supplier net-back improves • Grades requiring diluents/heating – Cost of diluents/ higher freight adversely affects supplier net back as well landed cost to refiner • Sanctions affecting market access – Only part of market available for marketing such grades; Buyers able to access may benefit 16
Market Direction • Increasing complexity of refineries and tougher refining margin environment – Refiners pushing to widen technical processing envelopes • Increased emphasis by National Oil companies to process opportunity grades within the producing country • Higher demand from Emerging markets for opportunity grades from West-of-Suez sources • Result? Suppliers targeting higher net-back on opportunity grades and hence scope of refiners value-addition shrinking 17
Thank You
Recommend
More recommend
