Integrate To Optimize: Let us join to share the Honorable Prime Minister’s Dream of Import reduction through Conservation and Integration

Overview

India is a large Nation with huge diversity and a burgeoning population. It is also a Nation on the up curve. Yes with soaring ambitions and a desire to accelerate and excel, the Nation is certainly poised towards vertical growth. As luck would have it, nature has gifted the country with bountiful Natural resource, a great land mass, a huge and fertile agricultural belt but above all a strong willed and an industrious race. A young Nation on the upsurge is always full of hope and aspiration. And now this urge has also been coupled with a strong desire to restore its pristine and sublime glory of the past and ancient self. The surge has begun and it is now gaining momentum to transcend the barriers of time and inhibition, to emerge and discover its anointed place in History. The propulsion is powerful and unyielding and is bound to find its destination!

A large Nation like ours requires a huge amount of Energy to sustain its masses. Almost everything has to contribute, from renewable, Nuclear, Hydro, thermal to the inevitable fossil fuels. Sadly, from time to time the nation is pushed back, as it remains vulnerable to huge import of energy, vagaries of geopolitics and international cartelization leading to enormous funds to be dedicated to import. Certainly, this is a massive problem and requires an all round approach towards, conservation, optimization, efficiency, frugality and an innovation led economy.

The solution will not come from any one quarter perhaps, but it has to be a combined approach to launch ourselves forward on multiple fronts. The incumbent Government, is certainly leading the Nation with precisely this intent. While self reliance on the energy balance of the country might remain elusive for a while, the continued endeavor to find solutions through fundamental and concerted research, aggressive exploration, optimal utilization of domestic resources, such as coal has to remain in focus. Additionally, enhancement of efficiency, integration and exploitation of the last molecule of energy for the benefit of our people perhaps, is the sole way to reach the higher paradigms of growth for the upliftment of our socio economic base. In this context the call of our Honorable Prime Minister to curb our imports, even while we grow as strongly and robustly as we are, gains significance and recognition. We seem to be hitting the right notes to realize this noble mission through some of the measures which have already been unfolded in the recent past

1.    The good work in Solar and wind energy is a gigantic step forward. The results of the hard work are visible in the form of enhanced production and reduced tariffs.

2.    The recognition of coal as an important energy resource to supplement our transportation fuel requirements is very encouraging. The correct noises in terms of gasification of domestic coal to produce Fertilizers, besides Methanol and DME as gasoline and Diesel/LPG blenders, is gaining recognition. This is important as it will reduce imports and also enhance our self sufficiency to a reasonable extent.

3.    The recent announcement by the Honorable Prime Minister of a massive Fertilizer cum gas producing facility at Talcher to be set up at a cost of over 13 lakh Crores is a great step forward towards energy reliance based on domestic fuel. The connectivity to the Urja Ganga will be of immense value in this connection.

4.    The recognition of bio fuels such as Ethanol and bio fuel from agri-waste is another important step where policy level recognition is being provided, to enhance alternative modes of fuels and blenders. The optimal utilization of waste gases in refineries has already gained an opening towards production of ethanol through the utilization of microbe based processes. This will, as it should, extend to the Ferrous and the non ferrous industries to enable production of ethanol for blending in gasoline. This will not only boost the gasoline but also play a pivotal role in minimizing the prices of gasoline for the benefit of the masses.

5.    A clear intent of allowing the Indian Energy basket to be substantiated by gas from a meager 6% to about 25% by 2030 will enforce newer technologies and footprints to emerge. Apart from the environment friendliness, gas increment in the energy basket will force many efficient practices to be inbuilt in our system. For instance Liquid fuels in the captive power plants and the SMR units will get displaced to enhance the distillate pool in a variety of ways. Again a huge country benefiting measure.

6.    The Emergence of energy and Environment friendly technologies such as CFBC will enable a huge amount of captive fuels to be displaced from the Existing Refineries and Integrated complexes and enable substantial increment in the distillate pool of the country. Steam and power would be produced more economically and the Nation would gain enormously. Any deficit of power from the captive Steam generation facilities after meeting the process requirements could be augmented from the Electricity Grids, which are becoming more and more reliable by the day.

7.    The need for enhancing efficiency in the system has achieved a tremendous boost. Old and vintage assets have been gradually replaced by bigger and larger , state of the art facilities which are leading to considerable savings in the efficient operation of the facilities

8.    Bottom of the barrel has been the intent and therefore, almost all the facilities in the Indian Refineries have been equipped with bottoms up-gradation facilities. Several Residue Hydrocrackers are also being incorporated in the systems where Delayed Coker had already been used as a preferred up-grader.

9.    Large and major facilities are put up on the drawing board where the dual problem of Distillate and Petrochemical Deficit are being addressed. More and more facilities are beginning to look big and substantive and heavily integrated, this is augmenting efficiency of operation and bringing forth the benefits of economies of scale.

10. Larger and more economical cavern storages are being created in the country through which the benefits of the price vagaries of crude can be guarded against even while making these facilities gradually commercially linked to operations.

11. Consolidation of companies by way of inorganic growth, to provide muscle to operations and to enable facilities for becoming more robust and efficient and interconnected, are being encouraged.

This article conducts one such suo motto study to provide a sample scheme through which unprocessed bottoms of two refineries could be upgraded, to yield distillate and petrochemicals for huge benefit accrual to the Nation, without any external import of additional crude!

Perspective

Mumbai is home to two important Refineries which are operated by two of the premier OMCs. Over a period of time one of the refinery has been up-graded both in terms of capacity, as well as the Secondary Processing Facilities and for the other, modernization is underway. Incidentally, while a lot of light Crude has traditionally been processed in these refineries along with some heavier ones, the problems with respect to the environmental constraints, as well as paucity of space, has sustained and perhaps also restricted them in a way to grow and expand.

Consequently, a wide variety of schemes have been considered in the past for instance a combined delayed coking facility located further and beyond from the Refinery, integration through disposition of some of the unprocessed bottoms to other facilities for instance some VR could be sent to Kochi for processing, or even to incorporate resid up-gradation facilities, such as an RFCC etc in the existing premises, after dismantling some old and vintage facilities in the existing complex. In the interim however, a lot of fuel oil is being produced for captive consumption while catering to the existing environmental limits.

Well under the constraints the Refineries are certainly sustaining the operations with excellence and perfection. The question however is, can this be sustained forever or one could look into something more viable and pertinent for the benefit of the Organizations in particular, and the Nation at large? Also can there be a mechanism, by which one can try and move forward to meet the noble Objective to realize the Honorable Prime Ministers clarion call of enhancing self reliance and minimization of imports, within the overall guidelines and the limits specified by Policy and regulation.

Let us examine what are the steps that one could consider for a larger integrated scheme and higher value addition. Of course this is only one such idea and certainly there could be many others which the OMCs themselves may be considering. One of them to set up a Petrochemical Complex near Mumbai is already doing rounds in the news columns.

Gas Integration

The Environmental concerns can be substantially obviated by utilization of gas as a Feedstock and Fuel to the refinery. This will end up in displacing significant quantities of naphtha from the SMR and the captive Power plants, where in absence of gas, naphtha is used as fuel in Gas Turbines and HRSG’s. Also with the Integration of gas to the Refineries, the Fuel Oil used as fuel in Process Fired Heaters and in steam Generation Boilers will also be displaced substantially. This will reduce the emissions dramatically and make the CO2 foot print of the Refineries improve dramatically.

The displaced naphtha and the displaced Fuel Oil from the SMR, CPP and internal fuel would be a potential stream, additionally available for up-gradation. This would enable also the economies of scale of whatever Investment that one would have to consider.

Unprocessed Streams

A mere look at the product pattern of these refineries suggests that a lot of unprocessed fuel oil or vacuum Residue and unutilized naphtha as product is available. These consequently, are low value outlets and obviously do not invite a reasonable return. The absence of the bottoms up-gradation hurts decisively.

From the prima facie Computation it is observed, that if both these refineries are gas integrated and the existing unprocessed and underutilized streams are considered for upgradation, a fuel oil – vacuum Residue equivalent of about 4500 KTPA of residue and 2500 KTPA of naphtha is available for up-gradation from both the refineries together.

These are huge feedstock quantities and certainly could offer huge optimization facilities, should a proper solution be available. For the moment we will park these important numbers and look at the prospects of an emerging solution.

Central India Refinery

BPCL in partnership with Oman operates a 6 MMTPA refinery at Bina. This refinery has further been upgraded to 7.8 MMTPA. The Refinery is a predominantly diesel Driven facility and is equipped with a full conversion Hydrocracker and a Coker as the key upgrading facilities. The Coker is a two Chamber design, whereas the Hydrocracker is integrated with a DHDT for a combined Hydro-processing facility. Necessary up-grading facilities are also provided in the refinery to produce gasoline.

The Refinery sources its crude through a trunk pipeline which connects the Vadinar Tank farm facilities with Bina. A map indicating the respective locations of the Refineries at Mumbai the trunk Pipeline connecting the COT Terminal at Vadinar to Bina is indicated in the map. The map also indicates another proposed Pipeline connecting the Refineries at Mumbai to Bina.

Proposition

As mentioned above upon Gas Integration with the Refineries at Mumbai and utilizing the unprocessed fuel oil and naphtha, a net feedstock of 4500 KTPA of residue and 2500 KTPA of naphtha is available for further up-gradation. It is proposed that this Residue+ naphtha is mixed appropriately for establishing the appropriate viscosity of the combined mix such that this material can be pumped to Bina Refinery through a separate Pipeline dedicated to transport this mix of naphtha and residue to Bina.

Refinery configuration at Bina

The Refinery at Bina Comprises of the facilities as depicted in the sketch below:

The Refinery originally commissioned with a capacity of 6 MMTPA has Been Further Upgraded to 7.8 MMTPA. What is important is that in the process, the refinery produces the additional important streams, which can be utilized for further up-gradation without debottlenecking existing facilities

Vacuum Gas Oils      910 KTPA (About 450 KTPA of this is proposed to be upgraded in the existing HCU through debottlenecking and conversion the facility to an 85% OHCU. The balance 460 KTPA could be processed in the proposed new facilities)

Vacuum Residue        460 KTPA ( proposed to be processed in the new facilities)     

Proximity to Vijaipur

The Other Critical Issue is that Bina is Located in close proximity of Vijaipur, where GAIL operates a very major gas Processing Complex. It would be appropriate to consider a 200 km, 12” spur line from Vijaipur or near about to gas Integrate the Bina Refinery. This could help substantially in meeting the Gas Requirements for the SMR production in the Existing Refinery, as well as, in the facilities that are being proposed as part of the proposed facilities. Additionally, Gas could also be utilized to generate the steam required for the complex. The important part though is that BORL operates 70 KTPA hydrogen plant, which if served with natural gas will enable displacement of about 265 KTPA of Naphtha which is currently used in producing hydrogen from the Plant.

Feed From Mumbai Refineries

As mentioned above it is visualized that 4500 or 4470 KTPA of residue to be a little more precise and 2500 or 2475 KTPA of naphtha approximately could be transported from the Mumbai based Refineries, through a dedicated 24”, 850 km pipeline with about 4 Pumping stations in between. With this we could have a feedstock scenario building up at Bina as below:

From Mumbai Refineries

A combined Stream of VR + Naphtha                             4470+2475 KTPA

From the upgraded/gas Integrated Bina Refinery      

VGO                                                                                     460 KTPA

Hydrotreated Bottoms from OHCU (Revamped)               360 KTPA        

VR                                                                                        460 KTPA

Displaced naphtha                                                              265 KTPA

Recovery of Streams and Feed Stock assessment

The first step to consider a process scheme to be developed is to assess the clear feed potential availability for up-gradation. The streams from the Mumbai refineries + partial integration of the streams from the upgraded Bina Refinery, is to be explored. The Sketch below may be referred: 

From the above the Following may be noted:

1.    Feedstock quantity is large and can support a facility of significant scale.

2.    The Hydro-treated Naphtha could be an excellent feedstock to an Olefin Complex and in itself will support a fairly substantial sized facility.

3.    The VGO available from the existing refinery is a good potential stream for a secondary processing facility.

4.    The quantity of VR is substantial and perhaps, is ideally suited to support a Resid Hydrocracker. Since a Coker is already available in the complex, the Resid Hydro-cracker will produce high quality diesel, Hydro-treated VGO, Naphtha and LPG.

5.    Since the idea should be to maximize the petrochemical feedstock, the LPG, naphtha and even the rich streams in the fuel gas from the Resid hydrocracker can find way into the olefin complex

6.    The VGO from the Refinery can be upgraded in the Resid Hydrocracker. The Hydro-treated VGO could be a great feedstock to a High Severity FCC.

7.    The pitch from the Resid Hydrocracker can be routed to the existing Coker in exchange of some more VR for Resid up-gradation. The Clarified Oil from the FCC can be routed to the Resid Hydrocracker as well.

For bringing in clarity in the subject, let us first examine the Resid Hydro cracker configuration and have a look at the intermediate streams which can enable evolving a proper scheme.

Resid Hydrocracker

The LC max kind of Configuration is foreseen for a large capacity facility. One for the reason, that it has ample proven experience and also because, it is a low cost, low hydrogen consumption scheme.

The location being sort of land locked, perhaps the number of reactors may have to be enhanced. Surely this would be a little cost intensive.

In the modern day schemes, resid up-gradation of upwards of 90% is being addressed, which is a huge positive.

We shall briefly describe the process for the common understanding of the readers who themselves, may not be very familiar with the resid up-gradation process linked with Hydro-cracking.

Brief Process Description

The origin of the process lies in the Ebullated bed reactors which is essentially a time tested proven process.

The technology can be designed for conversions, upwards of 90% and uses proven catalysts for hydro-demetallation, hydro-treating and hydro-cracking.

The technology base of the LC max revolves around the point of low conversion in the first reaction stage, which operates at low severity with conversions lesser than 70%. The intention is to set the conversion well below the sediment formation point.

The unconverted oil from the first stage is deasphalted to remove all the heavy materials from the feed. The Recovered DAO from the second stage is Hydro-cracked in a separate stage of reactors. Here the conversion and severity can be maintained at higher levels, as the feed is clean and free from asphaltenes. The important point is that the VGO Hydro-cracking is minimized in the residue Hydro-cracking section to avoid coke formation.

Ebullated bed reactors are used in the residue Hydro-cracking sections, which utilizes liquid circulation as the motive force. This enables low gas hold up and hence relatively smaller reactors. Also, it enables higher catalyst activity in reactors and hence higher operating factor for which commercial references and practical operational references are available.

The unconverted oil from the first stage is deasphalted to remove all the heavy materials from the feed. The recovered DAO from the second stage is Hydro-cracked in a separate stage of reactors. Here the conversion and severity can be maintained at higher levels as the feed is clean and free from asphaltenes. The important point is that the VGO Hydro-cracking is minimized in the residue Hydro-cracking section to avoid coke formation.

Ebullated bed reactors are used in the residue Hydro-cracking sections, which utilize liquid circulation as the motive force. This enables low gas hold up and hence relatively smaller reactors. Also it enables higher catalyst activity in reactors and hence higher operating factor for which commercial references and practical operational references are available.

Integrated Residue/VGO Hydro-cracking and Distillate Hydro-treatment

In this scheme the Residue Hydro-cracking is further integrated with VGO Hydro-cracking and Diesel Hydro-treatment in the same Hydro-processing loop. The Design allows the following additional advantages to accrue.

1.    All the Hydrogen from the Residue Hydro-cracking section is consumed in the Hydro-treatment section. The Hydrogen recompression power is therefore rationalized.

2.    Since the scheme is integrated several other pieces of equipment can be eliminated as would be required for a virgin unit.

3.    The scheme is fully integrated and all condensation and reheating requirements are eliminated.

4.    The additional VGO available from the existing refinery can also be hydro-treated in the same section.

The above scheme enables a holistic solution for all the bottoms upgrade. It is a large and important facility but essentially integrated to yields products to specifications.

All the LPG and Naphtha are of high quality and can easily find way into the feedstock pool for the Olefin complex. Diesel of BS VI quality can find way into the diesel pool. The critical part remains the disposal of the Hydro-treated VGO.

Another important part is the pitch that is generated in the Resid Hydro-cracker can be routed to the existing Coker. Since it is not planned to augment the capacity of the Coker, an equivalent quantity of the VR being routed to the Coker can be displaced and routed to the Resid Hydrocracker. This will improve the distillate yield and enable proper disposal of the pitch from the Resid Hydro-cracker. Broad Estimates reveal that about 450 KTA of additional VR can be processed in the newly proposed facility.

Inclusion of a High Severity FCC

Upon up-gradation of the Refinery at Bina about 460+450 KTPA of additional VGO would be available. There are two options available. Either a part of this VGO can be processed in the existing Hydro-cracker after a nominal Revamp or the same can be processed in the new HS FCC. The Other option could be that the existing Hydrocracker could be converted into a once through mode and the additional hydraulic capacity so created could be utilized to process a part of this additional VGO. The unconverted Hydrocracker bottoms would be available as additional feedstock to the HS FCC. The balance VGO can be treated in the VGO Hydrocracker of the Resid Hydro-cracker

This option is recommended as will have the least of Hydrogen penalty and will generate a feedstock of great value to be fed to HS FCC. The existing Hydrocracker along with the additional VGO of 420 KTPA would operate at a capacity of 2.4 MMTPA on Once through mode. A conversion of 85% could be considered, such that unconverted bottoms to of about 360 KTPA can be routed to HS FCC.

From the Resid Hydro-cracker the Hydro-treated VGO to the tune of 1350+460 KTPA is anticipated for the capacity of close to 5.5 MMTPA of Resid Hydro-cracking.

The Total VGO therefore available for up-gradation in HS FCC would be 1350+460+360=2170 KTPA say 2.2 MMTPA. This is an ideal HS FCC capacity for up-gradation of the VGO to Propylene and other Distillates. 

The cracked LPG could be routed to the pool, propane could be routed to the olefin complex, The Light Cycle oils could be routed to the Gasoline pool, and the LCO could be the existing Hydro-treater or the new Hydro-treater in the Resid Hydro-cracker. The Decanted fuel oil certainly can find way to the Resid Hydro-cracker and be further upgraded into distillates.

From the above flow scheme one can solicit the maximum value addition in the Refinery and generate substantial feedstock to support a World Scale Ethylene Complex

Material Balance and Feedstock Diet to the Olefin Complex

Let us examine the Capacities of the Refinery Units

Vacuum Flasher Unit                  7 MMTPA

Naphtha Hydro-treater              2.5 MMTPA

Resid Hydro-cracker                  5.5 MMTPA

HS FCC                                        2.2 MMTPA

HCU revamp to OHCU             2.4 MMTPA

Product pattern from the Refinery

Naphtha                                  3275    KTPA to Cracker

Ethane + Propane + LPG       315    KTPA to Cracker

Ethylene in FCC off gases     80  KTPA To Cracker

Cracked LPG                          360   KTPA

Propylene from HS FCC        450   KTPA

Gasoline +PGH                      600   KTPA

Diesel + ATF 2900   KTPA                                                                                

Hydrogen from NG (-) 190KTPA                                                                                                                                                      Petrochemical Complex

To maximize the value of money it is important to examine the possibility of optimal utilization of the last molecule. As is evident from the above, enough Light Distillate is generated in the process which can be utilized as feedstock to the olefin complex. The total feedstock to the Cracker can be summarized as below:

Naphtha                                         3275   KTPA to Cracker

Ethane + Propane + LPG               315   KTPA to Cracker

Ethylene in FCC off gases                80  KTPA to Cracker

From the HS FCC Propane as a feedstock would be available. Also the Off gases From FCC + the off gases from DCU can be combined, amine treated and routed to the separation section of the cracker.  The Off gases from HS FCC would have about 80 KTPA of Ethylene which can be recovered. The Ethane and Propane in the combined off gases would also be recovered and recycled to Cracker as feedstock, to maximize the ethylene production from the unit. The naphtha of course will be the main feedstock to the cracker apart from the LPG recovered from the Resid Hydro-cracker

Based on the above the total products expected from the Cracker could be as below: 

The above is a world scale facility and will support a substantial downstream petrochemical block. Since the plant is land locked, Butadiene is not recovered as a product. To minimize the investment and the plot area a C4 Hydrogenation facility has been considered to crack all the C4 mix to extinction to maximize the production of Intermediates.

Economics

The Project Scheme as proposed is just an example of perhaps how the Nation can stand to benefit, out of Integration of Existing facilities and complexes, to provide economies of scale and efficiency benefits to the country. It synchronizes with the basic requirement of minimizing imports and exploiting the last molecule for the benefit of the society. The concept has been elaborated but the subject would be incomplete unless some directional economics is performed to quantify the likely benefits that could accrue to the Nation out of such initiatives.

Capex

No doubt the project is large and complex, connectivity is the key issue. Over 1000 Km of Pipelines for the Feed and Gas will be required to Integrate at Least 4 major complexes. This will be at a cost no doubt.

Gas Integration Costs to displace naphtha and Fuel Oil in the Existing refineries will have to be accounted for. But all said and done these costs are far outweighed by the consequential gains. The centre of action will be at Bina, where the real Capex will have to be put up. A broad Order of magnitude Cost Estimate is performed and the results of the same are as below:

From the above it safely be inferred that a huge benefit to the nation can be foreseen in terms of value upgrade. The return on investment is likely to be less than 4 years and the IRR is likely to be upwards of 25%. A very safe investment and a large project intended to reduce the imports of the Nation both in the distillate and the petrochemical segment through rationalization and integration of unprocessed potential streams for value addition.

Such efforts certainly subscribe to the call of the Honorable Prime Minister as well, as value is being created for import reduction without additional crude import. This is the key! Further value addition is possible upon a more detailed study, as the current study is more directional and concept evolving by nature where the effort certainly, has been to be on the better side of caution.

Inferences

1.    Benefits to the Nation can accrue through a more concerted and determined effort to examine the efficiency and optimization measures in our existing facilities.

2.    The largest benefit is likely to accrue when efforts are made to upgrade the low value fuels to high value added products.

3.    Since the country imports crude, it is incumbent upon the nation to try and see that the bottom of the barrel is exploited completely for serving the maximum economic gain to the Nation.

4.    The Economies of scale is essential for realization of maximum value. Hence logistics and proximity to a cause should be given primacy, rather than individual company interests.

5.    Project locations, which are benefitted by the presence of land and currently operate at a relatively smaller capacity, are ideally suited for such brown field expansions and integrated complexes.

6.    Petrochemical complexes and major plants need to be promoted on a brown field approach, particularly in hinterlands areas, where the product evacuation for the last mile connectivity, is accorded priority. This shall be a poverty alleviation measure as well.

7.    Projects which lead to reduction of fuel oil usage in the projects must be encouraged for Environment friendliness and reduction of CO2 footprint.

8.    The largest benefit of gas Integration should be availed in such projects, where value for money is secured and the Nation at large benefits through reduction of imports and maximization of economic gain.

9.    Integration of several other Existing installations in India can be considered. Of course, the solution for each of the proposition could be unique.

10.  The objective function must revolve around enhanced efficiency, reduction of imports, maximization of value addition. Petrochemicals production must be encouraged for optimal exploitation of gas integration to mega Hydrocarbon complexes in the country.

11.  Such Integrated large value projects have the potential of encouraging smart villages and smart cities as well, where the basic quality of life of the average Indian is also enhanced.

12.  Such projects could be trend setters and will also enhance the manufacturing and the Industrial development, both directly for the Project, as well as through the ancillaries, which can be linked with these initiatives.

Hopefully, the integration campaign to maximize the value in our country will gain momentum in Industry, which supports a critical input to the Nation’s economy. The biggest example of unified approach to all round development can perhaps, be initiated through such initiatives!