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Kochi Refinery
Opportunity Crudes: Challenges
in Processing
Shivam Kumar Kaushik
Navneet Singh
Kochi Refinery
India’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
Kochi Refinery
Challenges faced by refiners
Kochi Refinery
What 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 Refinery
Brent v/s Opportunity crudes
Reference
line based
on Brent
crude
Kochi Refinery
Points to be taken care while
processing opportunity crudes
Kochi Refinery
High Acid Crudes (HACs)
• Crudes having TAN >0.5
• Naphthenic acid is main culprit.
• Active between temperatures 240°C and 450°C
Kochi Refinery
HACs : Financially attractive!
Kochi Refinery
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.
Kochi Refinery
Location for HAC corrosion - CDU
Kochi Refinery
Location for HAC corrosion- VDU
Kochi Refinery
HAC corrosion control strategy
Kochi Refinery
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 Refinery
Heavy 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.
Kochi Refinery
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 Refinery
Conclusion
• 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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Opportunity Crudes LinkedIn

  • 1. Kochi Refinery Opportunity Crudes: Challenges in Processing Shivam Kumar Kaushik Navneet Singh
  • 2. Kochi Refinery India’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
  • 4. Kochi Refinery What 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
  • 5. Kochi Refinery Brent v/s Opportunity crudes Reference line based on Brent crude
  • 6. Kochi Refinery Points to be taken care while processing opportunity crudes
  • 7. Kochi Refinery High Acid Crudes (HACs) • Crudes having TAN >0.5 • Naphthenic acid is main culprit. • Active between temperatures 240°C and 450°C
  • 8. Kochi Refinery HACs : Financially attractive!
  • 9. Kochi Refinery 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.
  • 10. Kochi Refinery Location for HAC corrosion - CDU
  • 11. Kochi Refinery Location for HAC corrosion- VDU
  • 12. Kochi Refinery HAC corrosion control strategy
  • 13. Kochi Refinery 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.
  • 14. Kochi Refinery Heavy 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.
  • 15. Kochi Refinery 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
  • 16. Kochi Refinery Conclusion • 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.

Editor's Notes

  1. Crude oil consists of 80-90% total costs. So it is the most important to increase GRM.