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Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
1
Feasibility Report
On
Diesel Hydro-Treater (DHT) Unit and Associated Facilities
Bharat Petroleum Corporation Ltd. Mumbai Refinery
January 2015
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
2
Index
Chapter 1 Executive Summary
Chapter 2 Introduction
Chapter 3 Objectives
Chapter 4 Basis and Assumptions
Chapter 5 Evaluation of Alternatives
Chapter 6 Project Description
Chapter 7 Process Description
Chapter 8 Utilities & Offsites
Chapter 9 Unit Capacities
Chapter 10 Catalyst
Chapter 11 Unit Plot Layout
Chapter 12 Project Schedule
Chapter 13 Cost Estimates
Chapter 14 Benefits and Profitability
Annexure-1 Government Policy of Auto fuels upgradation
Annexure-2 Proposed Plot Plan for DHT Unit
Annexure-3 Project Cost Estimate and Phasing of Capex
Annexure-4 Estimated operating cost of DHT Unit
Annexure-5 Financial Analysis for DHT Unit
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 1 - Executive Summary
Objective:
In order to meet the proposed government mandate for Auto Fuels, Bharat Petroleum
Corporation Limited, Mumbai Refinery (BPCL-MR) intends to set up a Diesel HydroTreater
(DHT) unit to produce Diesel conforming to BS-IV/V norms. DHT would hydrotreat Diesel,
Kerosene and Naphtha streams (with Diesel product from new DHT unit conforming to 8
ppmw sulphur).
Along with DHT unit, the following associated facilities will be installed;
Revamp of existing Hydrogen Generation Unit - II (HGU-II) to meet the additional
hydrogen requirement for DHT.
New Amine Regeneration Unit (ARU)
Sour Water Stripper Unit (SWS) to treat additional sour water generated from DHT.
Revamp of all four SRU trains to meet the additional acid gas processing.
New Gas Turbine (GT) with Heat Recovery and Steam Generator (HRSG) for additional
power and steam requirements.
Background:
BPCL-MR has an installed crude processing capacity of 12 MMTPA. The Refinery
configuration has undergone several modifications over the years to include various secondary
units and currently has the capability of producing BS-III/IV grades of MS and HSD which are
in line with the present Auto Fuel (AF) Policy.
BPCL-MR has recently commissioned Continuous Catalyst Regeneration Reformer (CCR) to
produce BS-III/IV MS. Further BPCL-MR is implementing Naphtha Isomerization (ISOM)
project to produce total BS-IV MS and meeting 2017 Auto Fuels (AF) mandate for MS.
However, BPCL-MR would not be able to meet total BS-IV HSD stipulations.
In order to select the best configuration of refinery for meeting proposed auto fuel policy and
improve refinery profitability, a “Refinery Configuration Study” was conducted through M/s
Engineers India Limited (EIL).
Based on the outcome of this study, it is found essential to set up a Diesel Hydro treatment
Unit (DHT) of 2.6 MMTPA capacity along with associated facilities to meet the product
quality as mandated.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Benefit of the proposal:
Implementation of this project will enable MR to increase BS-IV HSD production from 3.5
MMTPA to 5.9 MMTPA. Further, as per the proposed Auto Fuel Policy, after the full roll-out
of BS-IV HSD by April 2017, it is expected that BS-V Grades will be introduced in the entire
country by April 2020. The availability of DHT at Mumbai will be crucial since it will be
extremely useful in producing BS-V HSD.
Plot Plan:
Proposed DHT unit will be installed in existing tank farm area comprising of tanks 501, 502,
503, 504 & 508. The above tanks will be removed after reallocation of existing tanks on these
services (Plot Area of 52 x 203 meters approx.). Refer Annexure -1 for the proposed plot for
DHT Unit.
Utilities & offsites:
Utility requirements of DHT facilities like Cooling Water, Raw Water, Plant Air, Instrument
Air, Nitrogen, DM Water, BFW, Condensate etc can be met from existing systems.
Fuel requirement will be met from RLNG, which is environmentally neutral.
Power and Steam requirement will be met from proposed new Gas Turbine (GT) combined
with Heat Recovery and Steam Generator (HRSG) system.
Environmental Impact:
Environmental Impact Assessment (EIA) and Rapid Risk Assessment (RRA) study will be
carried out in order to obtain Environmental Clearance for the project.
Capital Cost:
As per preliminary estimates, Capital cost for putting up the DHT and associated facilities with
+/- 30% accuracy is about Rs. 2368 Crores. Breakup of capital cost estimate is provided in
Chapter-13.
BPCL Board has accorded in-principle approval vide resolution SEC.1.1.03/2014 dated
11.06.2014 for Installation of DHT and associated facilities to produce 100% BS-IV HSD.
Board has also approved Rs. 180 Crores towards carrying out pre-project activities.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Profitability:
Profitability analysis is tabulated below:
Case Base Case Sensitivity
Case
Project Cost Rs Crores 2368 (+/- 30%) 2842
Incremental Benefit /
Potential savings
Rs Crores / Annum 1184 1184
Operating Cost of DHT Rs Crores / Annum 732 732
Gross Profit - EBDIT Rs Crores / Annum 452 452
IRR % 11.6 9.3
Considering Crude and product prices based on Refinery Transfer Price (RTP) for a period
of 36 months (Apr-2011 to Mar-2014).
Sensitivity Case considers + 20% Project cost.
Schedule:
Schedule for the project activities is as follows:
Sr. No. Activity Description Proposed Schedule
A Basic Engineering Design Package (BEDP)
1. Licensor Selection & Approval Completed in Dec-2014
2. Finalize Design Basis Completed in Dec-2014
3. BEDP May-2015
B Environmental Clearance
1. Award Contact for EIA / RRA Studies Jan-2015
2. Complete EIA / RRA Studies Jun-2015
3. Environmental Clearance Aug-2015
C Engineering Procurement and Construction
Management (EPCM) Consultant
1. Award of EPCM Contract Mar-2015
2. Float Tender for long lead Items Feb-2015
3. Prepare + / - 20% Cost Estimate Oct-2015
4. Board Approval Oct-2015
5. Order Long Lead Items Apr-2015
6. Mechanical Completion Mar-2017
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 2 - Introduction
BPCL-MR has an installed crude processing capacity of 12 MMTPA. The Refinery
configuration has undergone several modifications over the years to include various secondary
units and currently has the capability of producing BS-III/IV grades of MS and HSD which are
in line with the present Auto Fuel (AF) Policy.
MOP&NG has constituted an expert committee under the chairmanship of Member, Planning
Commission, Government of India for preparing “Draft Auto Fuel Vision and Policy 2025”.
Members of oil industry also form a part of the committee / working groups. Various meetings
were held and the report is in advanced stage of completion. As per current indications, the
expert committee is proposing to introduce total BS-IV AF in the entire country by 1st April
2017 & total BS-V AF by 1st April 2020.
BPCL-MR has recently commissioned Continuous Catalyst Regeneration Reformer (CCR) to
produce BS-III/IV MS. Further BPCL-MR is implementing Naphtha Isomerization (ISOM)
project to produce total BS-IV MS and meeting 2017 Auto Fuels (AF) mandate for MS.
However, BPCL-MR would not be able to meet total BS-IV HSD stipulations.
In order to select the best configuration of refinery for meeting proposed auto fuel policy and
improve refinery profitability, a “Refinery Configuration Study” was conducted through
M/s Engineers India Limited (EIL).
Based on the outcome of this study, it is found essential to set up a Diesel Hydro treatment
Unit (DHT) of 2.6 MMTPA capacity along with associated facilities to meet the product
quality as mandated.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 3 - Objective
The objective of the proposal is to install Diesel Hydrotreating Unit (DHT) of 2.6 MMTPA
capacity at BPCL-MR in order to meet the government mandate of producing 100% BS-IV
HSD w.e.f. 1st April 2017.
Impurities such as sulphur, nitrogen and trace metals will be removed from the feed stocks by
reaction with hydrogen at high pressure and high temperature to meet the BS-IV/V
specification for HSD.
Installation of a DHT is necessary for meeting the proposed specifications of 100% BS-IV
HSD for the entire country. DHT would also facilitate MR in meeting proposed BS- V Auto
Fuel mandates w.e.f. 1st April 2020. In the absence of DHT Unit, under the present conditions,
BPCL-MR is capable of producing only 3.5 MMTPA of BS-IV HSD and the balance HSD to
the extent of 2.4 MMTPA will be of BS-III quality.
The above situation would entail exports of 2.4 MMTPA BS-III HSD and simultaneous
imports of equivalent quantity of BS-IV HSD to meet the requirements. The combined
handling of 4.8 MMTPA of HSD will also require hiring of huge infrastructure facilities.
Along with DHT unit, the following associated facilities will be installed;
Revamp of existing Hydrogen Generation Unit - II (HGU-II) to meet the additional (45
MT/D) hydrogen requirement for DHT.
New Amine Regeneration Unit (ARU) of 2400 MT/D capacity.
Revamp of existing Sour Water Stripper Units (SWS) to treat additional 135 MT/D of sour
water generated from DHT.
Revamp of all four SRU trains to meet the additional 85 MT/D of sulphur production.
New Gas Turbine with HRSG for additional power (34 MW) and steam requirements.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 4 – Basis & Assumptions
4.1 Capacity:
Based on the “Refinery Configuration Study” conducted by M/s EIL and in order to meet the
BS-IV/V HSD quality as per government mandate for Auto Fuels, capacity of DHT unit is
firmed up as 2.6 MMTPA (7800 MT/D).
4.2 Feed Stock:
Feed stocks for Diesel Hydrotreater (DHT) Unit will be a mix of Heavy Naphtha, Kerosene,
Light Gas Oil, Heavy Gas Oil and Vacuum Diesel from Crude Distillation Units & Vacuum
Distillation Units processing Low sulphur and High Sulphur Crude Oil. Light Cycle Oils from
Catalytic Cracking units will also be processed in the DHT unit.
4.3 Yields:
In the absence of DHT Unit, under the present conditions, BPCL-MR is capable of producing
only 3.5 MMTPA of BS-IV HSD and the balance HSD to the extent of 2.4 MMTPA will be of
BS-III quality.
MMTPA Before DHT Post DHT
BS-III HSD 2.4 0.0
BS-IV HSD 3.5 5.9
Total HSD 5.9 5.9
4.4 Cost:
Capital cost for putting up the DHT and associated facilities with +/- 30% accuracy is about Rs
2368 Cr. Breakup of capital cost estimate is provided in Chapter-13.
4.5 Financing:
A debt to equity ratio of 1.5:1 is considered.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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4.6 Interest Rate:
The interest rate of 10 % is considered.
4.7 Production Build-up / Sales realization:
The Sales realization has been assumed as 90% from the first year of commissioning and 100%
for each subsequent year.
4.8 Pollution Abatement:
Modern process units are heat integrated to minimize the fuel consumption and have higher
efficiency furnace. In view of only fuel gas / Regasified Liquefied Natural Gas (RLNG) firing
in DHT unit furnace and RLNG firing in Gas turbine for power & steam generation, the project
will have marginal impact on the environment.
The very purpose of installing DHT unit is to remove pollutants / impurities such as sulphur,
nitrogen, halides and trace metal from the feed stocks. This will help in reducing emission of
air pollutants such as Sulphur Oxides (SOx), Nitrogen Oxides (NOx) etc.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 5 – Evaluation of Alternatives
BPCL-MR has an installed crude processing capacity of 12 MMTPA. The Refinery
configuration has undergone several modifications over the years to include various secondary
units and currently has the capability of producing BS-III/IV grades of MS and HSD which are
in line with the present Auto Fuel (AF) Policy.
It has been proposed by the expert committee on ‘Auto Fuel Vision and Policy 2025” to
introduce total BS-IV Auto Fuel (MS & HSD) from 1st April 2017 and discontinue supply of
BS-III MS & HSD in Indian domestic market. With the present configuration of BPCL-MR, it
is capable of producing 3.5 MMTPA of BS-IV HSD and 2.4 MMTPA of BS-III HSD.
In order to meet the proposed requirement of supplying total BS-IV HSD from refinery,
following options were considered;
Option-1: Exports of 2.4 MMTPA BS-III HSD and simultaneous imports of equivalent
quantity of BS-IV HSD.
Impact of implementing this option:
The combined handling of 4.8 MMTPA of HSD will also require hiring of huge infrastructure
facilities. Further, the reduced BS-IV HSD availability of 2.4 MMTPA will have overall
impact on supply security for BPCL, which is critical for marketing interests. BPCL will have
a huge exposure in terms of product availability which will lead to higher dependencies of
sourcing BS-IV HSD. Any delay in availability of product is bound to have adverse impact in
meeting the market requirements.
Option-2: Installation of a DHT unit for meeting the proposed specifications of 100% BS-
IV HSD for the entire country.
Impact of implementing this option:
As per the proposed Auto Fuel Policy, after the full roll-out of BS-IV HSD by April 2017, it is
expected that BS-V Grades will be introduced in the entire country by April 2020. The
availability of DHT at Mumbai will be crucial since it will be extremely useful in producing
the BS-V Grades. Otherwise the import / export losses would further worsen.
Based on the above and considering the overall impact on supply security for BPCL, Option-2
has been selected.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 6 – Project Description
The facilities envisaged in the project comprise of Diesel Hydro treatment Unit (DHT) of 2.6
MMTPA capacity along with associated facilities.
DHT unit will comprise of Feed stock conditioning section, Reaction Section including Amine
absorber, Product separation section, Fuel gas and Naphtha treatment section.
Along with DHT unit, the following associated facilities will be installed;
Revamp of existing Hydrogen Generation Unit - II (HGU-II) to meet the additional (45
MT/D) hydrogen requirement for DHT.
New Amine Regeneration Unit (ARU) of 2400 MT/D capacity.
Revamp of existing Sour Water Stripper Units (SWS) to treat additional 135 MT/D of sour
water generated from DHT.
Revamp of all four SRU trains to meet the additional 85 MT/D of sulphur production.
New Gas Turbine with HRSG for additional power (34.5 MW) and steam requirements.
Pre-project activities
Pre-project activities envisaged are as follows;
Licensor selection
Award of Environmental Impact Assessment (EIA) / Rapid Risk Analysis (RRA) study
Obtain Environmental Clearance
Preparation of BEDP by the selected licensor
Award of EPCM Contract
Parallel implementation of EPCM activities (Detailed Engineering / procurement of long
lead items / Preparation of cost estimate having + / - 10% accuracy)
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 7 – Process Description
Process description of DHT Unit and associated facilities / unit is given below;
1. Diesel Hydro-Treater Unit (DHT):
DHT unit will comprise of Feed stock conditioning section, Reaction Section including Amine
absorber, Product separation section, Fuel gas and Naphtha treatment section.
The diesel feedstock, including straight-run Light Gas Oil, Heavy Gas Oil, Kerosene and
Naphtha streams from the Crude Distillation Units and Light Cycle oil streams from the
Catalytic Cracking units are mixed and filtered to remove insoluble impurities. After removal
of free water combined feed stocks will be processed in Reaction Section.
Feed stocks are now mixed with hydrogen and heated in preheat exchangers and fired heater to
the reaction temperature. The feed mixture is passed over catalyst beds in a reactor with inter-
bed hydrogen quench.
The Diesel Hydrotreating Unit reduces the levels of sulfur, Nitrogen and other contaminants in
diesel fuel products to meet regulatory specifications.
Reactor Effluent is cooled in series of preheat exchangers, and mixed with wash water to
remove ammonia (NH3) and then separated in Hydrogen Rich gas and Liquid product streams
in a separator. The aqueous wash fraction containing some hydrogen sulfide and ammonia is
removed in a separator, and routed to the sour water collection system.
Hydrogen sulfide (H2S) in Hydrogen Rich gas is removed in an amine absorber downstream of
the separator. The H2S-rich amine from the contactor is regenerated before being returned to
the recycle gas scrubber as lean amine.
Make up Hydrogen gas through makeup gas compressor and the sweetened gas from the amine
absorber is recycled back to the recycle gas compressor at the reaction section inlet.
Liquid effluent from the separator is routed to a Product Stripper where distillates and
unstabilized naphtha are separated. Unstabilized sour naphtha is routed to Naphtha Treatment
plant to remove H2S and then routed to other units of the refinery to separate Fuel Gas (FG),
Liquefied Petroleum Gas (LPG), Light Naphtha (LN) and Heavy Naphtha (HN).
The Diesel product from stripper bottom is sent to storage for blending.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Amine regeneration Unit (ARU):
The function of Amine Regeneration units is to remove the acid gases (H2S and CO2) from the
rich amine streams produced in the refinery processing units.
Rich amine from HP amine absorber, FG Amine Absorber and Naphtha Treatment Plant (NTP)
is received in a flash column. Rich amine is allowed to flash in the column to drive off
hydrocarbons. Some H2S also gets liberated. The liberated H2S is again absorbed by a slip
stream of lean amine solution making counter current contact with liberated gases over a
packed bed.
From the flash column, the rich amine is routed to amine regenerator, after preheating in lean
amine/rich amine exchanger. H2S is removed from amine with the help of steam reboiler. The
acid gases (H2S) are routed to the SRU. Lean Amine is recycled back to amine absorbers and
NTP.
2. Revamp of Hydrogen Generation Unit - II (HGU-II):
Hydrogen Plant revamp for 30 % (approx.) increase in Hydrogen production is done by
utilizing heat available in the process gas at Steam Methane Reformer (SMR) outlet for steam
reforming in a heat exchanger type of reactor. In a parallel combination with SMR, 20 - 30 %
of the feed is split and taken to heat exchanger type of reactor. A proportion of heat is utilised
in the process side which reduces the steam production from the plant. The major advantage of
this revamp scheme is increase in hydrogen production without any increase of Fuel / Utility
consumption.
3. Sour Water Stripper (SWS) Revamp:
Sour water from DHT unit will be treated in existing two stage SWS Unit after revamp of the
same. H2S is stripped off from sour water in first stage column and NH3 is stripped off in
second stage column. Both the columns are provided with steam reboiler.
H2S is sent to SRU for Sulphur recovery and NH3 is sent to incinerator stack.
The stripped water from two stage stripper is sent separately to DHT.
4. Sulphur Recovery Unit (SRU) Revamp:
To recover sulphur from sour gas generated from DHT unit, revamp of existing SRU units will
be done using Oxygen enrichment technology for SRU.
Oxygen enrichment technology is used in refinery to enhance the capacity of Claus Sulphur
Recovery Units. In this process, the nitrogen concentration is reduced by increasing oxygen
concentration (up to 30 - 35 %) in the combustion air entering the main burner. Reduction of
nitrogen in the process gas in the downstream of main combustion chamber reduces pressure
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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drop across the unit. Since the process gas flow reduces, it allows processing of additional acid
gases. Besides reduction in process gas flow, the process increases the temperature of main
combustion chamber. High temperature of main combustion chamber helps in direct
decomposition of H2S to sulphur and improves overall sulphur recovery of SRU.
Further BPCL-MR is implementing Tail Gas Treatment Unit (TGTU) at the downstream of
SRU to increase the recovery of Sulphur from 99 % to 99.9%.
The TGT process treats the tail gas coming from the existing two stages Claus unit. Since the
Claus tail gas contains H2S and other sulphur bearing compounds like Sulphur Dioxide (SO2),
Carbonyl sulfide (COS), Carbon disulfide (CS2) and Sulphur (S), the TGT process converts
these entire component to H2S catalytically and H2S is recovered from the tail gas by amine.
Recovered H2S is returned to the front end of the Claus unit. The H2S absorption process uses
highly selective absorbent to absorb H2S from tail gas and ensures minimum slippage of H2S
to incinerator.
5. New Gas Turbine (GT):
Heavy duty Gas Turbine Generator (GTG) is used in Industries for power generation purpose.
GTG set consists of mainly two sections – turbine & compressor section and Generator section.
GT operates on Brayton Cycle wherein the heat energy of hot flue gases is converted into
mechanical energy across turbine.
Gas is burnt in combustion cans where flue gases generate and pass through the turbine. This
makes turbine rotate. Generator set being directly coupled with the turbine, rotates and
produces power through the principle of electromagnetic induction. An automatic voltage
regulation system controls and maintains the system voltage at desired level. A state of the art
control system called MKV/MKVIe facilitates overall monitoring and control of the operation.
The exhaust flue gases coming out of the turbine carry a lot of heat and worth recovering.
Hence it is guided through a boiler where steam is produced by heating DM water. Since,
steam is produced by recovering the heat from the exhaust gases, the boiler is called Heat
Recovery Steam Generator (HRSG).
HRSG consists of 4 primary sections – Super Heater (SH), Evaporator (EVAP), Economizer
(ECO) and Make-up water heater (MUH) vertically mounted sequentially from GT end to main
stack. The incoming DM water stream is preheated in MUH and ECO sections by extracting
heat from the flue gas and thus increases efficiency. Steam is produced in the EVAP section
and finally it is further heated and superheated in the SH section before final delivery to the
grid. Main stack is provided with analyzers for stack monitoring. Sophisticated DCS and PLC
control systems facilitate monitoring, control and startup – shutdown operations in the HRSG.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 8 – Utilities & Offsites
This section gives details of utilities, based on preliminary estimate by M/s EIL for the DHT
unit and associated facilities. However adequacy will be established based on detail design
engineering.
8.1 Utilities
8.1.1 Fuel
It is envisaged that energy requirement of DHT unit and associated facilities will be primarily
met from clean and environment friendly RLNG / Refinery Fuel Gas (having nil H2S content).
However, due to uncertainty of availability of RLNG, Bombay High Gas Oil (BHGO) is also
envisaged as fuel for new Gas Turbine (GT).
As per the preliminary estimate 338 MT/D of RLNG/FG will be required. This comprises of 47
MT/D RLNG/FG for DHT Unit and 291 MT/D of RLNG for New GT. Quantity of BHGO
required is estimated to be 338 MT/D.
8.1.2 Power
The power requirement for the proposed facilities is 14.7 MW. This will be sourced from
proposed New GT.
8.1.3 Steam
Net steam requirement will be around 116 MT/hr which will be met partly from new HRSG
and partly from existing steam generation system.
8.1.4 Cooling Water
Estimated requirement of environment friendly closed recirculating raw water system is 2600
m3/hr. This will be met from existing system after confirmation during Detailed design
engineering stage.
Estimated requirement of environment friendly closed recirculating sea water system is 2095
m3/hr. This will be met from existing system after confirmation during Detailed design
engineering stage.
8.1.5 Raw Water
The Raw Water requirement for the new facilities is approximately 129 m3/hr. This includes
makeup raw water required for cooling water systems. This requirement shall be met using
existing systems after confirmation during Detailed Design Engineering stage.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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8.1.6 Other utilities
Requirement of other utilities viz. Nitrogen, Instrument Air, Plant Air, DM water, Boiler Feed
Water, Condensate system etc. shall be met using existing systems after confirmation during
Detailed Design Engineering stage.
8.2 Offsites
Adequacy of existing facilities like Closed Blow Down, Oily Water Sewer, and Contaminated
Rain Water System, Flare System etc. will be checked during Detail Design Engineering stage.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 9 – Unit Capacities
Based on the outcome of the Refinery Configuration Study, capacity of Diesel Hydro treatment
Unit (DHT) is 2.6 MMTPA along with matching associated facilities. Details of the same are
tabulated as below;
Unit Description Existing Capacity Proposed Capacity
Diesel HydroTreater Unit New Unit 2.6 MMTPA
Revamp of HGU-II * 149 MT/D 194 MT/D
Revamp of DHDS SWS Unit ** 515 MT/D 650 MT/D
Revamp of RMP SWS Unit ** 600 MT/D 735 MT/D
New Amine Regeneration Unit ** New Unit 2400 MT/D
Revamp of SRU trains ** 250 MT/D 335 MT/D
New Gas Turbine (GT) New Unit 34 MW
Note:
* : Revamp of HGU-II for 30 %(wt.) increase in Hydrogen Production
** : Proposed capacities for revamped units are based on the preliminary data from process
licensor. The same will be firmed up during Basic Engineering Design Package (BEDP)
finalization.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 10 – Catalyst
Details of catalyst for DHT Unit based on M/s Haldor Topsoe A/S proposal are tabulated
below:
Catalyst Description Proposed
Quantity
1st Cycle
Life
MT Years
Inert Topping TK -10 4.950 4
Hydro De-Metallization TK - 711 3.084 4
Hydro De-Metallization TK - 831 2.720 4
Hydro De-Metallization TK - 743 3.128 4
Hydro DeSulphurisation TK - 570 32.640 4
Hydro DeSulphurisation TK - 578 314.976 4
Total 361.498
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 11 – Unit Plot Layout
Proposed DHT unit will be installed in existing tank farm area comprising of tanks 501,
502, 503, 504 & 508. The above tanks will be removed after reallocation of existing tanks
on these services (Plot Area of 52 x 203 meters approx.). Refer Annexure -1 for the
proposed plot for DHT Unit.
No additional plot area is required for revamp of HGU-II unit as new equipments will be
located within the existing plot area of HGU-II unit.
New ARU will be located either in place of existing FCCU ARU or in the plot identified
for DHT unit.
Sour water generated from DHT unit will be treated in existing sour water strippers after
revamp of the same. Hence no new plot area is required for SWS Unit.
Acid gas generated from ARU & SWS will be treated in existing SRU trains after revamp
of the same. Hence no new plot area is required for SRU.
New Gas Turbine (GT) will be located in place existing old De-mineralized Water Unit.
Hence no new plot area is required for GT.
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 12 – Project Schedule
Following pre-project activities for selection of Process Licensor for DHT unit have been
completed;
M/s Engineers India Limited (EIL) has been appointed as Project Management Consultant
for implementing the DHT unit and associated facilities project.
Tender enquiry was floated for “Supply of License, Basic Engineering Design Package
(BEDP), Catalyst and other related services for Diesel HydroTreater (DHT) Unit” on
21.07.2014.
Five numbers of offers from M/s Axens, France (AXENS), M/s Haldor Topsoe A/S,
Denmark (HTAS), M/s Shell Global Solutions International B. V. - Netherland (SHELL),
M/s UOP LLC USA (UOP) and M/s Chevron Lummus Global LLC (CLG) were received.
Technical bids from the above mentioned five process licensor were opened on
03.09.2014.
Price bid, along with price implication, were opened on 11.11.2014.
Proposals were evaluated based on NPV (Net Present Value) calculation. Parameters
considered for NPV analysis were capital cost, project completion schedule of March 2017,
process licensor charges, sales revenue and expenditure towards feed stock & utility
requirement and plant operating cost of 20 years.
Based on the economic evaluation, M/s Haldor Topsoe A/S proposal is more cost effective for
BPCL. Hence M/s Haldor Topsoe A/S has been selected as the process licensor for DHT Unit.
Detailed schedule for balance project activities is as follows;
S. No. Activity Description Proposed
A Basic Engineering Design Package (BEDP)
1. Licensor Selection & Approval Completed in Dec-2014
2. Finalize Design Basis Completed in Dec-2014
3. BEDP May-2015
B Environmental Clearance
1. Award Contact for EIA / RRA Studies Jan-2015
2. Complete EIA / RRA Studies Jun-2015
3. Environmental Clearance Aug-2015
C EPCM Consultant
1. Award of EPCM Contract Mar-2015
2. Float Tender for long lead Items Feb-2015
3. Prepare + / - 20% Cost Estimate Oct-2015
4. Board Approval Oct-2015
5. Order Long Lead Items Apr-2015
6. Mechanical Completion Mar-2017
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 13 – Project Cost Estimate
13.1 Introduction
As per preliminary estimates, Capital cost for putting up the DHT and associated facilities with
+/- 30% accuracy is about Rs 2368 Cr. Breakup of capital cost estimate is as follows;
No Activity description Capex, Rs
Crores
1 Royalty Knowhow / Basic Engineering 35
2 EPCM Consultant Fee 118
3
Plant and Machinery:
DHT (with HGU modifications)
SWS
Amine Regeneration Unit
KMU Relocation
Naphtha Stab. Revamp
MTBE Modification for BS IV MS
Oxygen Enrichment Process
Catalyst and Chemicals (Initial Charge)
New Gas Turbine
608
23
69
55
12
5
4
48
580
4 Utility and offsite 142
5 SRR / Control Room / Substation / Capex for modifications of
existing tanks 49
6 Construction Period Expenses 20
7 Start up and Commissioning 10
8 Contingency (@7.0% of 1 to 7) 124
9 Taxes and Duties 202
10 Total 2104
11 IDC 259
12 Grand Total Capex 2363
13 Associated Revex 5
14 Total Project Cost 2368
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Chapter 14 – Benefits and Profitability
14.1 Basis
14.1.1 Indicative Profitability has been worked out by considering the potential savings
resulting from the avoidance of simultaneous import of BS IV Grade and export of
BS-III Grade HSD (import loss, lower than RTP realization on exports, infrastructure
facility related cost) and comparing the same with the additional cost of operating
DHT.
14.1.2 Estimated operating expenses of DHT (Rs. 732 Crores) is worked out on the basis of
1.5 times the average DHDS operating expenses for the period April 2011 to
September 2013.
14.1.3 Refinery product pattern has been generated by using Process Industry Modeling
System (PIMS) considering 333 days operation in a year.
14.1.4 Crude and product prices are based on Refinery Transfer Price (RTP) for a period of
3 years (April 2011 – Mar 2014).
14.1.5 Sensitivity case with 20% increase in capital cost.
14.2 Summary of Profitability
Profitability analysis is tabulated below:
Case Base Case Sensitivity
Case
Project Cost Rs Crores 2368 (+/- 30%) 2842
Incremental Benefit /
Potential savings Rs Crores / Annum 1184 1184
Operating Cost of DHT Rs Crores / Annum 732 732
Gross Profit - EBDIT Rs Crores / Annum 452 452
IRR % 11.6 9.3
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
25
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
26
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
27
Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Bharat Petroleum Corporation Ltd. Mumbai Refinery
Feasibility Report on Diesel Hydro-Treater Unit and Associated Facilities
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Annexure-5
Financial Analysis for DHT Unit