Presentation on theme: "Engineers India Limited"— Presentation transcript:
1 Engineers India Limited Value Addition through Refinery and Petrochemical Integration
2 AGENDA Engineers India Ltd: Company Profile Challenges – Refinery / PetrochemDrivers for Refinery Petrochemical IntegrationIntegration OpportunitiesCase Study
3 AGENDA Engineers India Ltd: Company Profile Challenges – Refinery / PetrochemDrivers for Refinery Petrochemical IntegrationIntegration OpportunitiesCase Study
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 / PetrochemDrivers for Refinery Petrochemical IntegrationIntegration OpportunitiesCase Study
6 Challenges – Refinery & Petrochem Low Refinery MarginsOld Refineries Getting InefficientProduct quality: Ultra low sulfur fuels, Aromatic content, RVP, Cetane etc.Minimization/ Elimination of Fuel oilSurplus low value Naphtha from RefineryPetrochemical Feedstock cost and availabilityIncreasing Fuel & utility costVolatility in Crude / Product / Petrochemical PricesEnvironmental Regulations
8 Recent Trends in Refinery Petrochem Impact of Shale :Falling ethylene Production cost putting Naphtha crackers under pressureC3+ 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
9 AGENDA Engineers India Ltd: Company Profile Challenges – Refinery / PetrochemDrivers for Refinery Petrochemical IntegrationIntegration OpportunitiesCase Study
10 Drivers for Refinery Petrochemical Integration Premium available in olefins vis-à-vis transportation fuelsStability over Value chainFlexibility to the dynamic market demand and PricesFeedstock and product flexibilityAssured Feedstock's AvailabilityAbsorption of return streamsUpgrade low value refinery streams to high value productsCapital, OPEX and Resource OptimizationShared Infrastructure, storage & UtilitiesLower logistic & Energy costMinimize overhead and wasteFUELPETCHEMEssence of any Integration is to work out synergies between them in order to achieve opportunities for more profitability
11 AGENDA Engineers India Ltd: Company Profile Challenges – Refinery / PetrochemDrivers for Refinery Petrochemical IntegrationIntegration OpportunitiesCase Study
13 Value Addition Through Integration Complex Refinery(1)Aromatics Integration (2)Petrochemical Integration (3)(deficit feed for Cracker is made up by import)Basis: 15 MMTPA refinery3 yr avg. pricesIntegration of refinery & Petrochemicals also improve ROI significantly by ~ 4-5%.
14 Opportunity ladder : step wise approach (3 year avg price basis)PolymerPrice: $1600/TSteam CrackerC2=:$1250/TC3=: $1380/TButadiene:$ / T ($ year avg)RefiningNaphtha: $850/TExplorationcrude: $750/ TAromaticsBenzene:$ /TToulene: $1100/TPX: $ /T
15 AGENDA Engineers India Ltd: Company Profile Challenges - Refinery/ PetrochemDrivers for Refinery Petrochemical IntegrationIntegration OpportunitiesCase Study
16 Case StudySanjay 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 SEZ AREA Existing Proposed AROMATIC COMPLEX Upcoming PTA / PETImport TerminalPROPOSED PROJECTSEZ AREAREFINERYExistingProposed
18 PROPOSED OLEFIN PROJECT- OVERVIEW Propylene demand continues to soar.Recent trend of Lighter feed stocks for crackers.Refiners limited by flat gasoline growthLPG & Propane are traded as surplus, Low LPG pricePrice differential of $450 - $350/ton : C3 & C3=On-Purpose Propylene will supply 20% of global Propylene by 2020“On- Purpose Propylene” is filling the gap.
19 POINTERS Technologies best suited to exploit above opportunities are: 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 StatesSurplus Naphtha available in nearby refinery for value addEthylene rich Refinery Off Gases (ROG) available in nearby refineryTechnologies best suited to exploit above opportunities are:On- Purpose PropyleneNaphtha to Olefins conversions with higher P/E ratio (catalytic route)
20 Proposed Complex at SEZ H2 To RefineryDOWNSTREAM BLOCKPROPANE TERMINALPDHPROPANE FEEDPROPYLENECRYO RECOVERYEXISTINGPROJECT OPTIONOTHERS
22 Stand Alone PDH- Issues RisksHigh 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 PlantsOpportunities to minimize risk via Refinery IntegrationSurplus 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 ProductionRefinery 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)FRAC SECTIONDE PROPANIZERDEMETHANIZERDEETHANIZERC3 / C3= SPLITTERC2 / C2= SPLITTERDEHEXANIZERFRESH PROPANEFEED (Port)OLEFINICNAPHTHA(REFINERY)PARAFFINICFCC OFF GASES (Refinery)ETHYLENEBTX + GASOLINE TO Arom. CPLXCOKE + ACID GASFUEL GASPROPYLENEHYDROGENPROPANE RECYCLECONSUMPTIONNET FUEL GAS TO REFINERYFGPROPANE + PROPYLENEFEED (Refinery)
24 Further Optimization Opportunities 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
25 FEED / PRODUCT SLATE COMPARISON STAND ALONE PDHINTEGRATED COMPLEXREFINERYPROPANEPROPANEFUELCDUSRNFG RETURN92255FCCDCUAROMATIC COMPLEXOFF GASCRNPDHHYDROGEN61519220585273271C3+C3=PROPYLENEHYDROGENNAPHTA TO OLEFINSPDH358BTX75028MEGLOSSPROPYLENE17MEG710358
28 Thank youThe 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.