Kochi Refinery
Opportunity Crudes: Challenges in Processing
Shivam Kumar KaushikNavneet Singh
Kochi RefineryIndia’s Energy Security
• 73% of India’s primary energy comes from Coal, Oil and gas[1]
• India’s import dependency will increase from 30% to 51% for it’s primary energy requirements by 2030.
• In 2014-15, India imported 84% of its crude oil demand.[2]
[1] India : Towards Energy Independence 2030, January 2014, McKinsey and Company[2] http://petroleum.nic.in/docs/pngstat.pdf
Kochi RefineryChallenges faced by refiners
Kochi RefineryWhat are opportunity crudes?
Crude oils available on discount though difficult to process
•High TAN number (>0.5)•High Pour Point ( >6°C)•Extra-Heavy (API Gravity <15) •Very Viscous (kinematic viscosity <350cst @40°C) •High metal and salt content
Kochi RefineryBrent v/s Opportunity crudes
Reference line based on Brent crude
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Points to be taken care while processing opportunity crudes
Kochi RefineryHigh Acid Crudes (HACs)
• Crudes having TAN >0.5
• Naphthenic acid is main culprit.
• Active between temperatures 240°C and 450°C
Kochi RefineryHACs : Financially attractive!
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Problems encountered with HACs
• High risk of corrosion in Crude Column overhead system, RCO/LVGO/HVGO circuits.
• Refined product degradation.
• Diesel produced from HACs have low Cetane number.
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Location for HAC corrosion - CDU
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Location for HAC corrosion- VDU
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HAC corrosion control strategy
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Commercial Impact of HACs processing
• Metallurgy up gradation is costly.
• Additional investment required for installing corrosion monitoring systems.
• Increased operating costs towards chemical injection and continuous inspection.
Kochi RefineryHeavy Sour Crudes
Challenges Solution Financial Impact
Higher volumes of VGO and VR
• High Capacity Crackers and Cokers
• Blending with lighter crudes
Additional investment required to install/modify downstream units. Additional planning and inventory for blending
Tendency to form stable solutions
• Segregated tanks for such crudes
• Use of demulsifying agents
Increased inventory costs and additional operational cost
Transportation and Pumping
• Diluting with lighter crudes
• Heating before pumping
Additional operating costs.
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High Metal, Nitrogen & salt content
Challenges Solution Financial Impact
Reduction in FCC and hydrotreater catalysts lifecycle
Limit Nitrogen in Vacuum Gas Oil
• Smaller turnaround cycle
• Additional operating costs for denitrification
High mercury concentration in Naphtha
Install mercury guards Additional operating costs
Catalyst poisoning and improper yield
• Smaller turnaround cycle
• Lower yields
Kochi RefineryConclusion
• Refiners can make use to opportunity crudes to ensure or even increase their GRMs in highly volatile markets.
• Processing opportunity crudes are challenging and diligent planning is required pre-processing.
• Refiners with proper planning and creativity will remain ahead of competition.
Kochi Refinery
Thank You
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