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Auto Fuel Quality Improvement By Indian Refineries Experience so far & Preparedness to produce fuels meeting BS-III/IV norms Experience so far & Preparedness.

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Presentation on theme: "Auto Fuel Quality Improvement By Indian Refineries Experience so far & Preparedness to produce fuels meeting BS-III/IV norms Experience so far & Preparedness."— Presentation transcript:

1 Auto Fuel Quality Improvement By Indian Refineries Experience so far & Preparedness to produce fuels meeting BS-III/IV norms Experience so far & Preparedness to produce fuels meeting BS-III/IV norms N.K.Bansal, N.K.Bansal, Vijay Prakash Vijay Prakash S Sarkar S Sarkar IOCL IOCL

2 Contents >Background for improvement >Changing specs of Auto Fuels >Quality up-gradation Projects for BS-II/III norms >Industry experience on quality switchover >Preparedness for meeting BS- III/IV norms >Way forward -Future concern

3 Auto Fuels Quality Improvement Why? And When?

4 Emission Control In India- Background 1995 Directive issued for catalytic converter on passenger cars in metros along with unleaded petrol. Fuel specs revised/target specs for 2000 notified Revised emission norms issued – met through minor engine modifications 1998 Supreme court issued several directives for NCT/NCR 2000 Euro- II norms implemented in Delhi for cars Bhure Lal committee submits report on clean fuels Dr Mashelkar committee constituted to recommend Auto Fuel policy for India 2002 Auto Fuel Policy report submitted by Dr. Mashelkar and Road Map firmed up

5 Major Changes in Specification of Gasoline ParameterBIS-2000 BS-II BS-III EU-IV Eq. Sulphur ppm max.1000/ Benzene Vol% max. 5/ Aromatics Vol% max Olefins Vol% max (18#) 21(18#) RON 88/93(#) 88/93(#) 91/95(#) 91/95(#) (#) Premium grade

6 Major Changes in Specification of Diesel ParameterBIS-2000 BS-II BS-III EU-IV Eq. Sulphur ppm max.2500/ Cetane No. * 48 48** 51** 51** Cetane Index (CI)* - 46** 46**46** Distillation 0 C at 95% max. Polycyclic Aromatics (Wt % max.) * Lower by 3 nos. for Assam Crude ** Either Cetane No. or CI

7 Lead Phase outLead Phase out Increasing trend of OctaneIncreasing trend of Octane Lower “S” in MSLower “S” in MS Lower BenzeneLower Benzene Restrictions on Olefin & AromaticsRestrictions on Olefin & Aromatics Gasoline Changing Specs. of Auto Fuels

8 Increasing trend of CetaneIncreasing trend of Cetane Diesel getting lighterDiesel getting lighter Lower “S” requirementLower “S” requirement Restrictions on PolyaromaticsRestrictions on Polyaromatics HSD Changing Specs of Auto Fuels

9 Fuel Quality Improvement - Challenges Gasoline -Reduction of Benzen & aromatics - Reduction of olefins - Reduction of sulphur - Increase in octane Diesel - Sulphur reduction - Cetane increase - Poly-aromatic control - End point & density reduction

10 Timeline for Vehicular Emission Norms & Fuel Quality Entire country (Except for Metros and some selected cities Bharat Stage - II1st April 2005 Bharat Stage - III 1st April 2010 Metros & Major cities (Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur and Agra) # Bharat Stage - III 1st April 2005 Euro-IV Equivalent 1st April 2010 # Lucknow & Solapur also added subsequently.

11 MS Quality Improvement to BS-II/III

12 MS Blending Components in Refineries

13 Refinery Efforts for MS Quality Improvement Lead Phase Out & RON improvement: Commissioning of new CRUs / Revamp of existing CRUs at various Refineries Commissioning of new FCCUs / Revamp of existing FCCUs at various Refineries Blending of Oxygenates Splitting of FCCU gasoline Benzene Reduction : Cut adjustment in Naphtha splitter for CRU feed Reformate splitting into Light reformate (rich in Benzene) & Heavy reformate (deficit in Benzene) Hydro-isomerisation of Light reformate Direct routing of Hy. Reformate to MS Reformulation of blends

14 Sulphur/Olefin Reduction Addition of Sulphur reduction additives in FCCU to reduce FCC Gasoline Sulphur Reduction in FCCU feed sulphur by adjusting feed mix Cut adjustment of FCC Gasoline Rerouting of streams like HCU Lt. Naphtha Withdrawal of VBN & Coker Naphtha General Stream Sharing between Refineries and absorption of Petrochemical Return Stream Refinery Efforts for MS Quality Improvement

15 HSD Quality Improvement to BS-II/III

16 HSD Blending Components in Refineries

17 Refinery Efforts for HSD Quality Improvement Sulphur Reduction Addition of 2nd Reactor in all DHDS Units to meet 0.05% `S’ Revamp of existing DHDS/Change of Catalyst Adjustment in operating conditions of process units Cetane Improvement Installation of DHDT Units Installation of Hydro-Cracker units

18 Refinery Efforts for HSD Quality Improvement Recovery Adjustment of operating conditions Routing of HCU Kero to HSD pool General Stream Sharing between Refineries Adjustment in Cetane Improver dosing Reformulation of blends

19 Experience on switch over from BS-2000 to BS-II/III

20 Financial Impact l Huge capital investments l Increase in production cost l Lower compensation to Refineries

21 Refinery Experience General Preparation of switchover plan  Close monitoring of Projects  Operational changes by careful planning and effective utilisation of LP models and Simulation Packages  Procurement of testing equipment and their calibration  Review of Offsite facilities including stream routing, storage and dispatch facilities  Micro level planning for dilution of tank holdup – about 3 months from Refinery to sale points

22 Refinery Experience Preparation of switchover plan  Handling of slop generated  Firming up of manufacturing specs for products for pipeline transfer of products  Firming-up the Pumping sequence for pipeline transfer  Pipeline Inter-phase absorption plan

23 Refinery Experience Contingency Measures in place Procurement of chemicals Cetane improver, MTBE, “S” reducing additives viz. LGS- 150 Stream sharing possibilities among refineries

24 Path Forward- Auto Fuels (BS-III/IV) Existing system inadequate for meeting: “S”, RON, Aromatics and Olefins for MS “S” and Cetane index for HSD New technologies, revamps of existing units and augmentation of facilities

25 Technological Options (MS Quality Improvement ) Hydroprocessing : For Sulphur reduction. For Benzene Saturation For Olefin reduction Isomerisation For Octane Improvement Reforming For Octane Improvement.

26 Technological Options (HSD Quality Improvement ) Hydroprocessing : Hydrotreating for Sulphur reduction & Cetane Improvement Hydrocracking for HSD maximisation with Sulphur reduction /Cetane Improvement

27 MS (BS-III/ IV) Octane & Aromatic  Revamp of Reformer at BRPL, Panipat, CPCL.  New Reformer at Gujarat, NRL, HPC(M), HPC(V), Essar & KRL  Reformate Splitting at Gujarat, Barauni, Digboi, Panipat NRL, HPC(M), HPC(V), MRPL followed by  Bensat/Isomerisation of Light Reformate.  Hy. Reformate directly to MS Blend. Sulphur & Olefin reduction  Splitting of FCC Gasoline at Barauni, Gujarat, Panipat, HPC(V), HPC(M) followed by  Merox treatment of Light FCC Gasoline.  Isomerisation of Middle Cut having Benzene.  Hydrotreatment of Heavy FCC Gasoline

28 HSD (BS-III/IV) Sulphur Reduction & Cetane Improvement Addl. Reactor in existing DHDT at Barauni. New DHDT at Gujarat, BRPL,CPCL, MRPL, BPC-M & NRL. Capacity Expansion of Hydro Cracker at Panipat & NRL and new Hydro Cracker at Haldia. VGO Hydrotreatment at Gujarat, BPC-Mumbai & KRL. Replacement of catalyst by new highly active catalyst at MRPL Revamp of existing DHDS units

29 MS / HSD (BS-III/ IV) Augmentation of Offsite facilities for : Stream routing including online blending Storage for intermediate streams and finished products Dispatch facilities Handling of Slop generated from pipeline interphase

30 Financial Impact BS-II/III Production Investment o ver Rs.15,000 Crore Increase in production cost by approx.Rs.1.00 per litre BS-III/IV Production Investment over Rs.22,000 Crore Increase in production cost by approx.Rs.1.50 per litre

31 Preparedness for BS-III/IV Facilities All efforts being made for commissioning of facilities by Q3 of No cushion available for any slippage Lessons learnt during BS-II/III Implementation being taken care of. Contingency plans to be made at industry Level to take care of slippages.

32 Future Concern Increasing Fuel & Loss High capital investment, Increasing refining cost, Shrinking operating margins Non-commensurate compensation for Increase in cost of production Impact of T-95 recovery at 360 Deg C for HSD – Disposal of Heavy ends. Inter-phase absorption during pipeline pumping Space limitation in refineries for new facilities

33 Future Concern  Increase in complexity of refinery operations and safety concerns  Shrinkage in flexibility of operations w.r.t. crude mix, processing capacity, product slate.  Non-availability of any one component affects product availability (viz FCCU gasoline, Reformate, Isomerate)  Increasing demand of skilled manpower for operating plants with advanced technology  Robust design and Reliability of P&U operations : A need

34 Future Concern Very high dependency of Refinery operations on availability of quality upgradation facilities (Outage of HGU / DHDS affects overall refinery operations) Technology and capacity augmentation keeping in view long term quality requirements – Provision for future add-on

35 Requirement beyond 2010 LIMIT ?

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