Transcript No Slide Title

Engineers India Limited
Value Addition through Refinery and Petrochemical
Integration
AGENDA
Engineers India Ltd: Company Profile
Challenges – Refinery / Petrochem
Drivers for Refinery Petrochemical Integration
Integration Opportunities
Case Study
2
AGENDA
Engineers India Ltd: Company Profile
Challenges – Refinery / Petrochem
Drivers for Refinery Petrochemical Integration
Integration Opportunities
Case Study
3
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
AGENDA
Engineers India Ltd: Company Profile
Challenges – Refinery / Petrochem
Drivers for Refinery Petrochemical Integration
Integration Opportunities
Case Study
5
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
Naphtha Export –‘Make In India’
Source: Petroleum Planning & Analysis Cell
7
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
8
AGENDA
Engineers India Ltd: Company Profile
Challenges – Refinery / Petrochem
Drivers for Refinery Petrochemical Integration
Integration Opportunities
Case Study
9
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
AGENDA
Engineers India Ltd: Company Profile
Challenges – Refinery / Petrochem
Drivers for Refinery Petrochemical Integration
Integration Opportunities
Case Study
11
INTEGRATED COMPLEX - SCHEMATIC
ETHYLENE , PROPYLENE
LIGHT NAPHTHA
FCC Off Gas
HYDROGEN
COKER Off Gas
C4 Raffinate
REFINERY
Py Gasoline
OLEFIN
CRACKER
(DUAL)
PFO
PY GASOLINE
FERTILIZER
PLANT
OFF GAS
HEAVY NAPHTHA
HYDROGEN
LPG
C5 / C7 RAFFINATE
C3-C5 Cut
AROMATIC
COMPLEX
LIGHT NAPHTHA
HYDROGEN
C9 + AROMATICS
HEAVY AROMATICS
PARA XYLENE , BENZENE , TOLUENE
12
Value Addition Through Integration
Complex Refinery
(1)
Aromatics
Integration (2)
Petrochemical
Integration (3)
(deficit feed for Cracker is made up by import)
12
GRM, $/bbl
11
11.1
10
Basis: 15 MMTPA refinery
3 yr avg. prices
9
8.7
8
7
7
6
1
2
3
Integration of refinery & Petrochemicals also improve ROI significantly by ~ 4-5%.
13
Opportunity ladder : step wise approach
(3 year avg price basis)
Polymer
Price: $1600/T
Steam Cracker
C2=:$1250/T
C3=: $1380/T
Butadiene:
$2000-2500/ T ($1470 1
year avg)
Refining
Naphtha: $850/T
Exploration
crude: $750/ T
Aromatics
Benzene:$1250 -1300/T
Toulene: $1100/T
PX: $1400-1600/T
AGENDA
Engineers India Ltd: Company Profile
Challenges - Refinery/ Petrochem
Drivers for Refinery Petrochemical Integration
Integration Opportunities
Case Study
15
Case Study
 Sanjay Gupta - Convener , Director- Commercial, [email protected]
 Vinay Gupta, Dy. Manager – Business and Development, [email protected]
 Vineet Bakshi, Sr. Engineer –Business and Development, [email protected]
 Manoj Kumar, Sr. Manager – Cost Engineering, [email protected]
AREA LAYOUT
AROMATIC COMPLEX
Import Terminal
SEZ AREA
REFINERY
Upcoming PTA / PET
PROPOSED PROJECT
Existing
Proposed
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 - $350/ton :
C3 & C3=
“On- Purpose Propylene” is filling the gap.
On-Purpose Propylene will supply 20% of global Propylene by 2020
POINTERS
Potential Opportunities:
• Opportunity in global propylene production on account of displacement of
liquid feed to Crackers by natural gas, which produces less Propylene.
• Surplus LPG / Propane traded internationally – essentially from Middle East
& shortly from United States
• Surplus Naphtha available in nearby refinery for value add
• Ethylene rich Refinery Off Gases (ROG) available in nearby refinery
Technologies best suited to exploit above opportunities are:
• On- Purpose Propylene
• Naphtha to Olefins conversions with higher P/E ratio (catalytic route)
Proposed Complex at SEZ
H2 To Refinery
PROPANE
TERMINAL
PROPANE FEED
PDH
CRYO RECOVERY
EXISTING
PROJECT OPTION
PROPYLENE
DOWNSTREAM
BLOCK
OTHERS
PROJECT ECONOMICS- Stand Alone PDH
Project IRR Trend (India)
30%
Project IIR - Pre Tax
25%
20%
15%
10%
5%
0%
IRR - 500 KTA
IRR - 750 KTA
1
11%
16%
2
14%
18%
3
16%
21%
4
19%
23%
Differential Price (Propylene - Propane): 450 US$
5
21%
25%
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.
Proposed Integrated Scheme
NET FUEL GAS TO REFINERY
PROPANE RECYCLE
HYDROGEN
FG
OLEFINIC
NAPHTHA
(REFINERY)
PARAFFINIC
NAPHTHA
(REFINERY)
PDH UNIT
(REACTION
SECTION)
FUEL GAS
CONSUMPTION
FRESH
PROPANE
FEED (Port)
FRESH
PROPANE
FEED (Refinery)
NAPHTHA TO
OLEFINS
(REACTION
SECTION)
FRAC SECTION
DE PROPANIZER
DEMETHANIZER
DEETHANIZER
C3 / C3=
SPLITTER
PROPYLENE
PROPANE + PROPYLENE
FRAC SECTION
DE PROPANIZER
DEMETHANIZER
DEETHANIZER
C2 / C2=
SPLITTER
DEHEXANIZER
FUEL GAS
ETHYLENE
BTX + GASOLINE TO Arom. CPLX
FCC OFF GASES (Refinery)
COKE + ACID GAS
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
FEED / PRODUCT SLATE COMPARISON
INTEGRATED COMPLEX
STAND ALONE PDH
C3+C3=
17
PROPYLENE
MEG
358
MEG
PDH
LOSS
NAPHTA TO OLEFINS
BTX
710
358
615
PROPANE
HYDROGEN
19
FG RETURN
585
CRN
220
OFF GAS
273
HYDROGEN
28
PROPYLENE
750
PDH
DCU
SRN
FCC
AROMATIC
COMPLEX
271
FUEL
CDU
55
PROPANE
922
REFINERY
Case Economic Comparison
2.0
22%
20%
Billion US $
1.6
20
1.4
1.2
1.4 bn US$
15
1.0
CAPEX, Billion US$10(India)
IRR % (BT)
0.8
0.6
0.4
%, Before Tax
1.8
25
0.6 bn US$
5
0.2
0.0
0
PDH 750 KTA, $450 Differtial
Integrated PDH and Olefins Unit
DERIVATIVE COMPLEX PHASES
‘KTPA
Phase – 2 (BY OTHERS)
Phase-1
BTX +
ETHYLENE
MEG
358
Olefin Unit
PDH
710 PROPYLENE
SALES
OR
POLYPROPYLEN
E -440
Demand 160
100% Import
ACRYLIC ACID -200
CUMENE /
PHENOL- 135 -200
Benzene
Demand 200
70% Import
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
.