Integration Opportunities in Refineries - Petrochemicals

Transcription

1 Topic Integration Opportunities in Refineries - Petrochemicals Presented by : VINAY GUPTA Engineers India Limited

2 AGENDA Complexity of Indian refineries Gross Refinery Margin Stand Alone Integrated Complex Pricing of petrochemical & Refinery products w.r.t crude Integration Opportunities between refineries & petrochemical Case Study

3 3 Lines of Business Oil & Gas Chemicals & Metallurgy Oil and Gas Processing Offshore & Onshore Refinery Petrochemicals Fertilizer Mining and Strategic Storage, Metallurgy Terminals and Pipelines Infrastructure Power City Gas Urban Development Water and Waste Management Solar Thermal Nuclear

4 4 Service Offering - From Concept to Commissioning Process Design Engineering Procurement Pre-feasibility studies Technology and licensor selection Conceptual design & feasibility Process design package Residual engineering and FEED Detailed engineering Engineering for procurement Engineering for construction Supplier and contractor management Expediting and inspection Vendor development Project Management Commissioning Construction Management Integrated project management services with focus on cost, quality and schedule Pre-commissioning and commissioning assistance Safety audit Hazard and operability studies Risk analysis Materials and warehouse management Quality assurance and health, safety & environment Progress monitoring/ Scheduling Mechanical completion Site closure Specialized Services Certification Environment engineering Heat and mass transfer Plant operations and safety management Specialist materials and maintenance services Certification and re-certification services EIL subsidiary Certification Engineers International Limited (CEIL) Third party inspection

5 Leaders in Refineries & Petrochemicals Panipat Petro. Plant Pata Petro. Plant Guru Gobind Singh Refinery PUNJAB Panipat Refinery HARYANA Vadinar Refinery Koyali Refinery GUJARAT MP Guwahati Refinery Mathura Refinery Bongaigaon Refinery Barauni Refinery UP ASSAM Digboi Refinery BIHAR BCPL Assam Petro. Plant WB Numaligarh Refinery Bina Refinery Milestones 19 out of 22 Refineries > 150 MMTPA installed capacity 10 grass-root refineries Mumbai Refinery Mumbai Refinery Mangalore Refinery Dahej Petro. Plant MAHAR- ASHTRA Nagothane Petro. Plant KARNATAKA ANDHRA PRADESH Visakh Refinery Haldia Petro. Plant Haldia Refinery 7 out of the 8 Petrochemical complexes Manali Refinery Kochi Refinery TN Refinery Mega Petrochemical Plant Kerala Nagapattanam Refinery

6 AGENDA Complexity of Indian refineries Gross Refinery Margin Stand Alone Integrated Complex Pricing of petrochemical & Refinery products w.r.t crude Integration Opportunities between refineries & petrochemical Case Study

7 ECONOMIES OF SCALE TOTAL REFINING CAPACITY = MMTPA Total number South Korea = 32.4 Avg Singapore = 26.6 Avg Belgium = 12.5 Avg Netherlands = 12.6 Avg Average Capacity Total Average Capacity PSU

8 Indian Refineries Complexity Index Petrochemical Component Aromatics Component

9 AGENDA Complexity of Indian refineries Gross Refinery Margin Stand Alone Integrated Complex Pricing of petrochemical & Refinery products w.r.t crude Integration Opportunities between refineries & petrochemical Case Study

10 Refinery Margin Gross Refinery Margin = Price of refined product Price of crude oil Net Refinery Margin = Gross Refinery Margin Refinery Operating Costs Transportation and Storage ITEM $/ bbl % Contribution Refined Product Revenue $ 80 Raw Material (Crude) Cost $ % Gross Margin $ 10 Energy Cost $ 0.8 Marketing Cost $ 0.3 Environmental Operating Cost $ % Other Refining Costs (Wages, etc) $ 0.7 Net Refining Margin $ 8

11 $ / Barrel Refining Margin Impact + Crude Pipeline / COT Crude Cost Refinery Configuration Operating Expenses Net Margin PetChem Integration - Illustrative Only

12 Evolution of Value Addition Hydro skimming Refinery Secondary Processing Hydrocracker FCCU Residue Upgradation Delayed Coker Ebulated Bed Residue Hydrocrackers Complex Refinery Petrochemicals Integration Aromatics and Olefins Integrated Refinery-Cum- Petrochemical Complex Complex Refinery Gasification PetCoke, Biomass Hydrogen Chemicals Petrochemicals

13 Configuration Impact Hydro skimming Refinery (1) Secondary Processing (2) Residue Upgradation (3) Distillate yield wt% on Crude

14 GRM $/bbl Value Addition Through Integration Complex Refinery (1) Aromatics Integration (2) Petrochemical Integration (3) Integration of refinery & Petrochemicals also improve ROI significantly by ~ 4-5%.

15 AGENDA Complexity of Indian refineries Gross Refinery Margin Stand Alone Integrated Complex Pricing of petrochemical & Refinery products w.r.t crude Integration Opportunities between refineries & petrochemical Case Study

16 Value Addition Stand Alone Refinery

17 Value Addition Integrated Refinery & Petrochemicals

18 AGENDA Complexity of Indian refineries Gross Refinery Margin Stand Alone Integrated Complex Pricing of petrochemical & Refinery products w.r.t crude Integration Opportunities between refineries & petrochemical Case Study

19 Drivers for Refinery Petrochemical Integration Premium available in olefins vis-à-vis transportation fuels Stability over Value chain Flexibility to the dynamic market demand and Prices Feedstock and product flexibility Assured Feedstock's Availability Absorption of return streams Upgrade low value refinery streams to high value products Capital, OPEX and Resource Optimization Shared Infrastructure, storage & Utilities Lower logistic & Energy cost Minimize overhead and waste FUEL PETCHEM

20 REFINERY INTEGRATED COMPLEX - SCHEMATIC LIGHT NAPHTHA ETHYLENE, PROPYLENE FCC Off Gas HYDROGEN COKER Off Gas C4 Raffinate Py Gasoline OLEFIN CRACKER (DUAL) PFO HEAVY NAPHTHA PY GASOLINE OFF GAS FERTILIZER PLANT HYDROGEN LPG C5 / C7 RAFFINATE C9 + AROMATICS AROMATIC COMPLEX C3-C5 Cut LIGHT NAPHTHA HYDROGEN CO2, NH3 Syn Gas HEAVY AROMATICS PARA XYLENE, BENZENE, TOLUENE

21 AGENDA Complexity of Indian refineries Gross Refinery Margin Stand Alone Integrated Complex Pricing of petrochemical & Refinery products w.r.t crude Integration Opportunities between refineries & petrochemical Case Study

22 CASE STUDY -1 LNG INTEGRATION TO REFINERIES

23 POINTERS FOR CASE STUDY Indian Refineries Low Margins and High Operating Costs Operating on High Valued Fuel Inflexibility towards volatile Crude prices and quality Stand Alone Refineries - Low Capacities - Economies of scale Insufficient feedstock for downstream petrochemical complex LNG Availability Lack of Expansion Plot Area Emergence Of Make in India, PCPIR s and Smart Cities Concepts

24 LNG Integration Impact on Refinery Fuels Product Pool Naphtha Hydrogen Generation Units H2 LCO (Diesel) Captive Power Plant Power and Steam FUEL OIL FUEL GAS Refinery Fuel Pool Furnace Firing 24

25 LNG Integration Impact on Refinery Fuels Product Pool Naphtha LNG Hydrogen Generation Units H2 MS-Block Refinery Gasoline Pool LCO LNG Captive Power Plant Power and Steam Diesel Hydro- Treating Unit Refinery Diesel Pool RFO LNG RFG Refinery Fuel Pool Furnace Firing C2 / C2= Rich Gas Bottoms Processing Unit Petrochemical / Cracker 25

26 Location & Capacities Refinery C Refinery B Refinery A Refinery B Refinery C Refinery A Refinery A Capacity 8.0 MMTPA Paucity of Space Excess Naphtha available HGU 90 KTPA Naphtha Feed CPP 90 MW Naphtha Feed Refinery B Capacity 6.5 MMTPA Paucity of Space Excess Naphtha available HGU 54 KTPA Naphtha Feed CPP 54 MW Naphtha Feed Refinery C Capacity 15.0 MMTPA Plans for Capacity Expansion Space Available HGU 73 KTPA Naphtha Feed CPP 204 MW Naphtha Feed Proximity to Natural Gas Import Terminals Opportunity for PCPIR and Smart City Development

27 Naphtha Displaced LNG requirement Total Naphtha Displaced 2211 KTPA Total LNG required for displacing above Naphtha 5.4 MMSCMD OLD WAY NEW WAY

28 Pipeline Integration - Schematic LNG Naphtha Dhamra port Map Source: IOCL

29 Integration Opportunities Logistics Utilities Plastic Park Derivatives Basic Petrochem Excess & Displaced Naphtha through LNG integration at Refineries A, B and C Proximity and availability of Natural Gas in the region Ethane & Ethylene rich DCU / FCC off gasses Availability of Land Refinery Announced Plastic Park can be envisaged in the region

30 Conclusion Efficiency improvement Refinery Flexibility Feedstock ensured LNG INTEGRATION & REFINERY INTEGRATION Value addition. LNG to Petrochem Make in India

31 Thank you The information upon which this presentation is based comes from our own experience, knowledge and databases, supplemented by reference to primary sources and published industry data. Any opinions expressed are those of the author as of this date. They have been arrived at following careful consideration and enquiry but we do not guarantee their fairness, completeness or accuracy. We do not accept any liability for your reliance upon them.