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

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

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’
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 coal
Substantial demand & growth rate of downstream specialty petrochemicals
Petroleum Chemicals & Petrochemical Investment region (PCPIR)/ cluster concept
Refiners opting for integrated aromatic and Olefin complex
Total Petrochemical Refinery - Concept

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

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
Essence 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 / Petrochem
Drivers for Refinery Petrochemical Integration
Integration Opportunities
Case Study

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

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 refinery
3 yr avg. prices
Integration of refinery & Petrochemicals also improve ROI significantly by ~ 4-5%.

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

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

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

18. PROPOSED OLEFIN PROJECT- OVERVIEW
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=
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 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:
On- Purpose Propylene
Naphtha to Olefins conversions with higher P/E ratio (catalytic route)

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

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)
FRAC SECTION
DE PROPANIZER
DEMETHANIZER
DEETHANIZER
C3 / C3= SPLITTER
C2 / C2= SPLITTER
DEHEXANIZER
FRESH PROPANE
FEED (Port)
OLEFINIC
NAPHTHA
(REFINERY)
PARAFFINIC
FCC OFF GASES (Refinery)
ETHYLENE
BTX + GASOLINE TO Arom. CPLX
COKE + ACID GAS
FUEL GAS
PROPYLENE
HYDROGEN
PROPANE RECYCLE
CONSUMPTION
NET FUEL GAS TO REFINERY FG
PROPANE + PROPYLENE
FEED (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 PDH
INTEGRATED COMPLEX
REFINERY
PROPANE
PROPANE
FUEL
CDU
SRN
FG RETURN
922 55
FCC
DCU
AROMATIC COMPLEX
OFF GAS
CRN
PDH
HYDROGEN
615 19
220
585
273
271
C3+C3=
PROPYLENE
HYDROGEN
NAPHTA TO OLEFINS
PDH
358
BTX
750 28
MEG
LOSS
PROPYLENE 17
MEG
710
358

26. Case Economic Comparison

27. DERIVATIVE COMPLEX PHASES
‘KTPA
Phase – 2 (BY OTHERS)
Phase-1
BTX + Olefin Unit
MEG
358
ETHYLENE
PDH
SALES
710
PROPYLENE OR
Demand 160
100% Import
ACRYLIC ACID -200
POLYPROPYLENE -440
Demand 200
70% Import
CUMENE / PHENOL
Benzene

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.