REFINERY CONFIGURATIONS CONFIGURATIONS IN INDIA-THE ROAD AHEAD Vartika Shukla and MK J!hi
INTRODUCTION
Configurations of refineries in India have changed dramatically India over the last three decades. decades.
Set up initially initially as low cost projects, projects, the existing refinerie refineriess have gradually gradually
evolved evolved into into large, large, comple complex x units, units, the growth growth of which which was driven driven initi initiall ally y by the following:
Increased demand and discovery of indigenous crude oil
Upgrading of heavier fractions to middle distillates
conservation we are now looing at refineries of large capacity and high complexity with increasing process integration to achieve energy optimi!ation in addition to generating products that meet stringent international specifications.
"he driving forces for the
change in refinery configurations have been:
Crudes being processed in the refineries
Changing product demand
Increasing competition and the need to be profitable
#nvironmental stipulations and improvement in product $uality
"hese issues are discussed in the following sections. REFINERY CONFIGURATION IN "#$S AND EAR%Y &#$S
%efineries set up during this time were based on processing of either indigenous crudes from the northeast region or imported imported curdes. "hese refineries were of low capacity capacity.. "he largest being of about &'"() and were characteri!ed by simple configurations which consisted of: a* )tmosp )tmospher heric ic disti distilla llati tion on b* +aphtha splitting and catalytic reforming c* isbre sbrea aiing d* "reatin reating g units units for -( -( /erose /erosene ne etc etc
0or refineries which were designed to process crudes from the north1east, isbreaing unit was replaced by 2elayed Coing Unit and /erosene treating the was essentially an extraction process for removal of aromatics so that smoe point specifications could be met. Conversion levels were not very high and since environmental stipulations were not at all stringent, high sulfur fuel oil could be easily consumed for meeting the internal re$uirements of the refineries. "he typical costs for refinery projects at this stage ranged between %s. &3143 Cr per million ton of capacity.
"he higher limit at this range
corresponds to lube oil refineries, which were set up during this period. 0igure 567 shows the simplified configurations of petroleum refineries set up during this period.
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"he oil price shoc of the 5893s necessitated re1examining of processing schemes and it was reali!ed that there was a need for secondary processing facilities to upgrade heavy material to value added distillates. )ccordingly, this period saw a significant emphasis on the installation of 0CC Units in existing refineries as well as grass root refinery products. "he 0CC Unit had been examined vis a vis other secondary processing options and was adopted as it found to be less expensive and also had a more proven trac record.
"he technology also gave advantages of producing more -( as well as gasoline. Six new 0CC Units were set up during this period and unlie units installed in US) and #urope, these units were first of their type in the sense that they were designed to operate at low severity and to selectively produce more middle distillate. 2uring this phase also there was not significant upgrading of product $uality and it was therefore possible to absorb the products from 0CC Units in the refinery product streams. Since the new refinery projects involved the addition of secondary processing and treating facilities, investments costs were higher and typically ranged around %s. <3 Cr per million1ton capacity. 0igure & shows a simplified configuration of refineries with 0CC Units.
%5G t Tr(atin' unit05rdu*t .l At Di!t Unit
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CONFIGURATION DURING %ATE >?@# AND EAR%Y >??#
2uring this period major increase in the demand of middle distillates were foreseen and technology options were accordingly selected. It was found that the hydro cracing
option offered a technically acceptable route to maximi!e the production of middle distillates of very high $uality and to offer the flexibility of upgrading existing refinery streams to the desired product $uality by blending. )ccordingly, during this period a number of projects came up wherein hydro cracing was the primary secondary processing facility in grass root units and a number of existing refineries. =ydro cracing unit was installed in parallel or upstream of 0CC units with the objective of improving product slate and providing additional operating flexibility. =ydro cracing units were installed in ujarat %efinery, 'athura %efinery, (anipat %efinery, 'angalore and +%-. Studies were also undertaen for other refineries where it was found that hydro cracing could be profitably integrated with the existing refinery configurations with capacity expansion as re$uired. Such products are presently in the process of execution at >(Cand C(C- %efineries. "he incorporation of hydro cracing to the processing schemes also implied the inclusion of hydrogen production, sulphur recovery and other related units and this together with other factors lie escalation changes in foreign exchange rates etc led to a significant increase in investment on grass root refinery projects and this went up to <33 crore million per ton. 0igure 4 shows a bloc flow diagram for a refinery with =ydro cracing and 0CC combination.
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Since the last < years product specifications have been attracting close attention of environmentalists as well as e$uipment manufacturers. (roduct specifications are being closely reviewed to ensure compliance with environmental stipulations as well as optimum performance of the automotive industry. (roducts lie diesel and gasoline are being specifically targeted for $uality improvement.
-ubricating oils are also being
looed at with a view to meeting )(I rade II?rade III specifications.
"he main
implications of the changes in the product $uality are: a* Increasing use of hydro conversion to upgrade heavy stocs into value added product as well as improve the $uality of distillates. b* Installation of as sweetening, Sulphur %ecovery @88A min* to meet environmental stipulations.
"hese re$uirements have lead to significant investments but without a corresponding premium on the product prices. )ccordingly, refineries have to loo at ways and means to improve their product pattern to produce more value added products, improve the energy efficiency so that total operating costs can be minimi!ed. )ddition of conversion facilities to upgrade heavy residues, which were being sold as fuel oil has also assumed importance. "his has necessitated a close examination of refinery configurations and almost all the refineries are taing up studies to critically loo at facilities, which would be re$uired to meet the future product specifications while ensuring that operations remain profitable.
It is therefore expected that a combination of the following process
units will need to be added in the refineries. a* Isomeri!ation b* CC% %eforming c* =ydro desulphuri!ation d* 2elayed coing e* asification for generation of power as well meeting the hydrogen and steam re$uirement of the refinery
"he studies are also be looing at the option of increasing refinery capacity and possible integration with a petrochemical complex so that more value can be added to the refining
operations. It is, therefore, $uite liely that refinery processing schemes and the addition of new facilities in existing refineries would be governed by economies of scale and the integration of petrochemicals as well as power generation to maximi!e profitability. "he %eliance refinery offers an excellent example of this approach and other refineries are also looing at similar options although not on such a large scale. >%(- was the one of the first instance of an integrated refinery and petrochemical complex.
"he I;C-
refinery at ujarat was interlined with I(C- complex. "oday generation of power or alternatively high value products lie propylene, ethylene, -)> feedstoc or integration with aromatic complex so that more value can be added to the refining operations has assumed major significance. "he complexity of the refinery is therefore expected to increase. "he #ast India %efinery (roject of I;C- and the uru obind Singh %efinery projects of =(C- are instances of high conversion refineries with Integrated asification and eneration Cycle. "he (anipat %efinery of I;C- is also pursuing a project for integrating a (B?(") complex with the refinery. "he >ina %efinery of '?s >(C- and the =aldia %efinery of I;C- are also addressing the re$uirement of improved -ube $uality to meet )(I rade II specs by adopting =ydro processing route for -;>S (roduction. 0igure < shows the bloc flow diagram for possible linages between a refinery and a petrochemicals complex
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CONC%USION
"here has been a transformation in the face of the Indian %efining Industry in the recent past. "he increasing emphasis on product $uality, profitability and efficiency has thrown up a number of challenges that the refineries have to meet forward and bacward integration is accordingly being given due consideration.
"echnology options are
available and judicious selection of these coupled with planning, scheduling and optimi!ation of refinery operations will continue to draw the industry ahead .
