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Engineers India Limited Value Addition through Refinery and Petrochemical Integration.

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Presentation on theme: "Engineers India Limited Value Addition through Refinery and Petrochemical Integration."— Presentation transcript:

1 Engineers India Limited Value Addition through Refinery and Petrochemical Integration

2 AGENDA  Engineers India Ltd: Company Profile  Challenges – Refinery / Petrochem  Drivers for Refinery Petrochemical Integration  Integration Opportunities  Case Study 2

3 AGENDA  Engineers India Ltd: Company Profile  Challenges – Refinery / Petrochem  Drivers for Refinery Petrochemical Integration  Integration Opportunities  Case Study 3

4 Engineers India Limited: Concept to Commissioning Significant track record across entire Oil & Gas value chain including 10 greenfield refineries, 37 Oil & Gas processing plants, 40 offshore process platforms, 42 pipelines and 7 petrochemical complexes

5 AGENDA  Engineers India Ltd: Company Profile  Challenges – Refinery / Petrochem  Drivers for Refinery Petrochemical Integration  Integration Opportunities  Case Study 5

6 Challenges – Refinery & Petrochem  Low Refinery Margins  Old Refineries Getting Inefficient  Product quality: Ultra low sulfur fuels, Aromatic content, RVP, Cetane etc.  Minimization/ Elimination of Fuel oil  Surplus low value Naphtha from Refinery  Petrochemical Feedstock cost and availability  Increasing Fuel & utility cost  Volatility in Crude / Product / Petrochemical Prices  Environmental Regulations

7 Naphtha Export –‘Make In India’ 7 Source: Petroleum Planning & Analysis Cell

8 Recent Trends in Refinery Petrochem Impact of Shale : Falling ethylene Production cost putting Naphtha crackers under pressure C3+ material production is dropping in the region, emergence of On purpose olefin production technologies esp. for C3= Deficit of Aromatics to be made up by naphtha reforming and naphtha cracking in the Middle East and Asia. Coal To Olefins model adoption in China due to advantageously priced coalSubstantial demand & growth rate of downstream specialty petrochemicalsPetroleum Chemicals & Petrochemical Investment region (PCPIR)/ cluster conceptRefiners opting for integrated aromatic and Olefin complexTotal Petrochemical Refinery - Concept 8

9 AGENDA  Engineers India Ltd: Company Profile  Challenges – Refinery / Petrochem  Drivers for Refinery Petrochemical Integration  Integration Opportunities  Case Study 9

10 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

11 AGENDA  Engineers India Ltd: Company Profile  Challenges – Refinery / Petrochem  Drivers for Refinery Petrochemical Integration  Integration Opportunities  Case Study 11

12 INTEGRATED COMPLEX - SCHEMATIC 12 REFINERY OLEFIN CRACKER (DUAL) LIGHT NAPHTHA FCC Off Gas COKER Off Gas Py Gasoline PFO C4 Raffinate PY GASOLINE OFF GAS C3-C5 Cut LIGHT NAPHTHA HYDROGEN FERTILIZER PLANT AROMATIC COMPLEX HEAVY NAPHTHA HYDROGEN LPG C5 / C7 RAFFINATE C9 + AROMATICS HEAVY AROMATICS ETHYLENE, PROPYLENE PARA XYLENE, BENZENE, TOLUENE

13 Value Addition Through Integration Complex Refinery (1) Aromatics Integration (2) Petrochemical Integration (3) 13 (deficit feed for Cracker is made up by import) Basis: 15 MMTPA refinery 3 yr avg. prices Integration of refinery & Petrochemicals also improve ROI significantly by ~ 4-5%.

14 Opportunity ladder : step wise approach Refining Naphtha: $850/T Steam Cracker C2=:$1250/T C3=: $1380/T Aromatics Polymer Price: $1600/T Butadiene: $ / T ($ year avg) Benzene:$ /T Toulene: $1100/T PX: $ /T Exploration crude: $750/ T (3 year avg price basis)

15 AGENDA  Engineers India Ltd: Company Profile  Challenges - Refinery/ Petrochem  Drivers for Refinery Petrochemical Integration  Integration Opportunities  Case Study 15

16 Case Study  Sanjay Gupta - Convener, Director- Commercial,  Vinay Gupta, Dy. Manager – Business and Development,  Vineet Bakshi, Sr. Engineer –Business and Development,  Manoj Kumar, Sr. Manager – Cost Engineering,

17 AREA LAYOUT Import Terminal REFINERY AROMATIC COMPLEX Upcoming PTA / PET PROPOSED PROJECT Existing Proposed SEZ AREA

18 PROPOSED OLEFIN PROJECT- OVERVIEW 18 “On- Purpose Propylene” is filling the gap. On-Purpose Propylene will supply 20% of global Propylene by 2020  Propylene demand continues to soar.  Recent trend of Lighter feed stocks for crackers.  Refiners limited by flat gasoline growth  LPG & Propane are traded as surplus, Low LPG price  Price differential of $450 - $350/ton : C3 & C3=

19 Potential Opportunities: Opportunity in global propylene production on account of displacement of liquid feed to Crackers by natural gas, which produces less Propylene. Surplus LPG / Propane traded internationally – essentially from Middle East & shortly from United States  Surplus Naphtha available in nearby refinery for value add  Ethylene rich Refinery Off Gases (ROG) available in nearby refinery Technologies best suited to exploit above opportunities are:Technologies best suited to exploit above opportunities are: On- Purpose Propylene Naphtha to Olefins conversions with higher P/E ratio (catalytic route) POINTERS

20 Proposed Complex at SEZ PROPANE TERMINAL PDH DOWNSTREAM BLOCK OTHERS H2 To Refinery PROPYLENE PROPANE FEED CRYO RECOVERY PROJECT OPTION EXISTING

21 PROJECT ECONOMICS- Stand Alone PDH

22 Stand Alone PDH- Issues Risks High risk with interfaces both on feed stock & product- take off and prices. Standalone PDH Facility justified only when a commensurate Propylene commitment for evacuation is in place. Production of non impact Polypropylene grade in India may exceed demand in view of foreseen PP Plants Opportunities to minimize risk via Refinery Integration Surplus Cracked Naphtha - Low Octane, High in Olefins, unstable Di-Olefins & High Sulphur content make it unsuitable for direct blending into gasoline pool. Available for Ethylene Production Refinery Off Gases (ROG) from cracking units (typ. FCC & Coker) carry potential ethylene – can be integrated with petrochem unit for value add. With Ethylene as a product, possibility of producing different grades of Polypropylene etc. - demand significantly higher. Limited production as of now in India.  MEG produced from ethylene, could be used for captive consumption in the PTA/PET facility.  Lesser dependency on single feedstock.

23 Proposed Integrated Scheme PDH UNIT (REACTION SECTION) NAPHTHA TO OLEFINS (REACTION SECTION) NAPHTHA TO OLEFINS (REACTION SECTION) FRAC SECTION DE PROPANIZER DEMETHANIZER DEETHANIZER C3 / C3= SPLITTER FRAC SECTION DE PROPANIZER DEMETHANIZER DEETHANIZER C3 / C3= SPLITTER FRAC SECTION DE PROPANIZER DEMETHANIZER DEETHANIZER C2 / C2= SPLITTER DEHEXANIZER FRAC SECTION DE PROPANIZER DEMETHANIZER DEETHANIZER C2 / C2= SPLITTER DEHEXANIZER FRESH PROPANE FEED (Port) OLEFINIC NAPHTHA (REFINERY) PARAFFINIC NAPHTHA (REFINERY) FCC OFF GASES (Refinery) ETHYLENE BTX + GASOLINE TO Arom. CPLX COKE + ACID GAS FUEL GAS PROPYLENE HYDROGENPROPANE RECYCLE FUEL GAS CONSUMPTION NET FUEL GAS TO REFINERY FG PROPANE + PROPYLENE FRESH PROPANE FEED (Refinery)

24  Existing C4/C3 Storage terminal. Propane to be imported in Cryogenic state.  Double wall storage tanks and associated systems considered at storage terminal. Chilled Propane -40 DegC) feed to the unit.  Propane will be first routed through the PDH chilling / separation section to reduce the chilling load of the unit.  Additional chill expected from integrated common refrigeration system and expanders in the Naphtha to Olefins unit (Demathanizer Overhead). This may eliminate Cold Box in PDH unit.  BOG from the storage terminal to PDH unit directly as feed.  Common Propylene splitter & refrigeration systems. significant CAPEX savings.  Common Hydrogen recovery systems (PSA) for both units Further Optimization Opportunities

25 MEG FEED / PRODUCT SLATE COMPARISON NAPHTA TO OLEFINS PDH FCC DCU CDU CRN OFF GAS C3+C3 = FG RETURN AROMATIC COMPLEX MEG PROPYLENE LOSS 358 SRN HYDROGEN BTX PDH PROPANE PROPYLENE HYDROGEN FUEL PROPANE 615 REFINERY STAND ALONE PDH INTEGRATED COMPLEX

26 Case Economic Comparison

27 DERIVATIVE COMPLEX PHASES BTX + Olefin Unit PDH MEG 358 MEG 358 SALES ACRYLIC ACID -200 ETHYLENE PROPYLENE Phase-1 Phase – 2 (BY OTHERS) POLYPROPYLEN E -440 CUMENE / PHENOL OR ‘KTPA Benzene Demand % Import Demand % Import Demand % Import Demand % Import

28 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.


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