Mini Oil Refinery Review

Rifka Aisyah

1

About Mini Oil Refinery

� Capacity is about 4000 – 30 000 BPD.

� Usually built to fulfill oil demand in remote region.

� Modular mini oil refinery is used because relatively low capital cost and ease and

speed of contruction.

� Petroleum Product Balances in Indonesia (2015)

Demand

(thou. BPD)Share

Production

(thou. BPD)Share

Net export

(thou. BPD)

Product Total 1973 100.0% 1256 100.0% -717

� Current production facilities cannot fullful national petroleum product demand,

therefore more oil refineries need to be developed.

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Product Total 1973 100.0% 1256 100.0% -717

Gasoline 386 19.6% 352 28.0% -34

Naphta 90 4.6% 18 1.4% -72

Kero/Jet 398 20.2% 130 10.4% -268

Gas Oil 795 40.3% 386 30.7% -409

Heavy Fuel 236 12.0% 318 25.3% 82

Fuel oil total 1905 96.6% 1204 95.9% -701

LPG 53 2.7% 27 2.1% -26

Other products 15 0.8% 25 2.0% 10

Economy of Scale

� Capital cost to refine a litter of crude oil is higher in the case of a mini-refinery.

� Some conditions that make investment in mini oil refinery workable:

o Close access to cheap crude oil

o Near to sizable market – to decrease distribution cost

o An acceptable market for HFO

Project finance on preferential terms for development credit agencieso Project finance on preferential terms for development credit agencies

o Gain government incentives to support regional development

� To minimize capital cost, mini refinery is often supplied only as a simple straight run

atmospheric distilation refinery for diesel and/or kerosene production, with naphta and fuel

oil as by-product

� EXPENSIVE lighter + sweeter crude oil � less facility upgrading � but crude oil source is

limited

� CHEAPER heavier crude oil � more facility upgrading � crude oil source is increasing

3

Recommended Feed Stock Characteristics for

Mini Oil Refinery

� Salt Content

o Maximum salt content 1 kg/1000 barrel

o Pre-treatement required if salt content is more than 1 kg/1000 barrel.

o Additional desalter is still feasible. Fresh water source & waste water disposing

method should be considered.

� Sulphur Content

Crude oil with <1% sulphur will normally refine within the allowable fuel specification

without the need for de-sulphuring process.

� Other Characteristics

o High API

o High natural diesel fraction in its assay

o Low in sulphur, salts, and other contaminant

4

Some Configurations of Mini Oil Refinery

Topping Plant Hydroskimming Cracking Refinery Coking Refinery

Facilities • Crude distilling unit • Crude distilling unit

• Catalytic reformer

(additional)

• HDS

• Crude distilling unit

• Vacuum distilling

unit

• Catalytic cracking

unit

• Crude distilling unit

• FCCU or Hydro-

cracker

Feedstock Condensates/light sweet

crude

Light sweet crude Processed gas oil Processed residual

fuel

� Refinery configuration is influenced by product demand.

crude fuel

Process Simple distillation Simple distillation with

catalytic reforming &

hydrodesulfurization

Break gas oil using

catalyst at high T & P

into gasoline and

distillates (jet fuel,

kerosene, diesel,

intermediate fuel oil)

Thermally crack

residual fuel into

gasoline and diesel

oil

Products • Diesel and/or kerosene

• Naphta and fuel oil (by

product)

• High octane gasoline • Heavy diesel

(vacuum gas oil)

• Heavy residual oil

• Diesel

• Fuel oil

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Increasing complexity

Product Yield using “Heavy Crude Oil” at

Different Refinery Configuration

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Current Mini Oil Refinery in Indonesia (1/2)

PT Tri Wahana Universal (TWU) PT TransPacific Petrochemical Indotama (TPPI)

PT Humpuss Pengolahan Minyak (HPM)

Location Bojonegoro, East Java Tuban, East Java Cepu, Central Java

Year of built 2008 1995

Capacity (bpd) 6000 100 000 10 000

Feed stock source Mobil Cepu Limited (MCL) Pertamina Expected from MCL or from Pertamina-Petrochina (50 km distance)

Characteristics of feedstocks

Light-medium and waxy grade crude with very low sulfur. Very high kerosene, diesel, and VGO cuts but very low naphtha and resid cuts

NA

Feed stock supply method

By 5 km pipeline Expected using 28 km pipeline

Facilities Atmospheric Distillation Column, Vacuum Distillation Unit

Precut column, Condensate Splitter, Distillate Column, Aromatic Plant

Atmospheric Distillation Column, Naphta Hydrotreated, Catalytic Reformer

Products • Naphta/Straight Run Gasoline• Solar/High Speed Diesel• Marine Diesel Oil (MDO)• Residue/Vacuum Tower Bottom

• Naphta• Kerosene• Diesel Oil• Fuel Oil• Aromatics (Ortho-xylene, Para-

xylene, Mixed-xylene, Benzene, Toluene, Reformate)

• Naphta• HSD• IDO• MFO

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Current Mini Oil Refinery in Indonesia (2/2)

PT Pertamina RU VII PT PatraSK PT Kilang Muba

Location Kasim, Papua Dumai Musi Banyuasin, South Sumatera

Year of built 2008

Capacity (bpd) 10 000 25 000 800

Feed stock source

Walio (60%) + Salawati (40%) Unconverted Oil (UCO) from PT Pertamina RU II Dumai

Characteristics of feedstocksfeedstocks

Feed stock supply method

Facilities Atmospheric Distillation Column,Naphta Hydrotreating Unit,Catalytic Reforming Unit

Crude Distillation Unit,High Vacuum Unit,Hydro Cracking ComplexVacuum Distillation UnitCatalytic Dewaxing Unit

Crude Distillation Unit

Products • Fuel gas (969 bpd)• Premium fuel (1987 bpd)• Kerosene (1831 bpd)• ADO/solar (2439 bpd)• Residue (3390 bpd)

• Lube base oil • Premium• Kerosene

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Future Plant of Mini Oil Refinery Development

in Indonesia

Company Planned Capacity (BPD)

Remarks

PT Tri Wahana Universal 10 000 Additional

Joint PT Bojonegoro Bangun Sarana &

PT Tierra Energi Perkasa

10 000

PT Chandra Asri Petrochemical 100 000

PT Indo Kilang Prima 2 x 3000 • On going.

• Location: Padang Lawas, North Sumatera

• Expected products: HSD, MFO, kerosene,

naphta

• Start producing in April 2016.

• Total investment USD 54 million.

• Crude supply : PT EMP Tonga, possibly

additional source from PHE Siak, Pacific Oil

PT Indo Kilang Prima 15 000 In Kalimantan and Sumatera

PT Nusantara Energy Resources 25 000 – 30 000 • In Banyuwangi, East Java.

• Feed stock source: Vitol Trader Group

(Netherland)

PT Pertamina RU VII Kasim 50 000 Improve capacity from 10 000 BPD to 50 000

BPD

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Mini Oil Refinery Facilities

� Atmospheric Distilling Unit (ADU)

Separate different fractions of the crude oil according to boiling range into naphtha, kerosene, diesel, and residuum products. It operates at less than 15 psig.

� Vacuum Distilling Unit (VDU)

Performs the same function as an ADU, but operates at a pressure of less than zero psig. It produces products like marine fuel oil (MFO) and asphalt from the ADU residuum (heavy fuel oil).

� Hydrodesulfurization Unit (HDU)

Removes sulfur and other impurities from naphtha and distillate fuels.

� Catalytic Reformer Unit (CRU)

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Produces high octane gasoline from naphtha.

� Hydrocracker Unit (HCU)

Produces naphtha, kerosene, and diesel from heavy feedstocks like VDU distillates.

� Desalter

Removes salt from crude oil prior to distillation to prevent fouling and corrosion.

� Splitter/Stabilizer

Separates a feedstock into two products.

� Flare

Combusts any excess vapor released by process equipment.

Configuration of Mini Oil Refinery at

PT Tri Wahana Universal

AOil Feed

Max Density = 781.6 kg/m3 (at 60F)

Max sulfur content = 0.053 %m/m

Max RVP = 5.5 psi (at 100 F)

Kerosene

Overhead Accumulator

Off gas

Naphta

11 BOPD

355 BOPD

530 BOPD

2003 BOPD

ADU

VDU

Atmospheric bottom

High Speed Diesel

Off gas

Vacuum Tower Bottom

Oil Feed Stock

Density = 850.3 kg/m3 (at 60F)

Sulfur content = 0.257 %m/m

Cetane index = 52oC

Max Density = 925 kg/m3 (at 60F)

Max sulfur content = 0.45%m/m

Atmospheric gas oil

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Banyu Urip

Field

6000 BOPD550 psig140oFAPI 32.8<0.5% BS&W<10 ppm H2S10.5 psia TVP Light vacuum gas oil

Heavy vacuum gas oil

1150 BOPD

1927 BOPD

19 BOPD

600 BOPD

300 BOPD

946 BOPD

Configuration of Mini Oil Refinery at

PT Pertamina RU VII Kasim, Papua

AOil Feed Kerosene

NaphtaHydrotreater

Catalytic Reformer

Heavy naphta

Fuel gas and flare

Sweet naphta

H2

Premium

Light naphta

969 BPD

1987 BPD

ADU

Residue

Oil Feed Stock

Solar

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10 000 BPDWalio : 60%

Salawati : 40%

(Local Sorong)

Kerosene

1831 BPD

3390 BOPD

2439BPD

Configuration of Mini Oil Refinery at

PT Humpuss Pengolahan Minyak

Crude column accumulator

Off gas

Naphta

To flare

Hydrodesulfurization

Catalytic reforming

High octane gasoline

The facility has been built completely, but not yet commissioned because no crude oil supply.

486 BPD

1285BPD

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ADU

Atmospheric residue

Diesel

Oil Feed Stock

Kerosene

Plan: Banyu

Urip Crude

10000 BPD

3461 BPD

4764 BPD

Possible Configuration for Mini Oil Refinery

ADU

Naphta Hydrotreater

Catalytic Reformer

Gas

Naphta

Kerosene

Diesel oil

High octane gasoline

Oil Feed Stock

Use for distillation

H2

H2S

DieselHydrotreater

H2

H2

Diesel oil Butene/U

VDU

Atmospheric bottom

Diesel oil

LVGO

Atmospheric gas oil

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Hydrotreater

H2S

Diesel oil

HVGO

VTB

Off-gas

Hydrocracker Unit

Hydrocracked Gasoline

FCC Naphta

FCC oil

Butene/Pentene

Coker

Coker naphta

Coker gas oil

Petroleum coke

Aspects to be Considered

� Refinery Location

o Steam/water availability

o Wastewater disposing facility

o Required refiniery capacity

o Distance to source oil

o Distance to pipeline

o Distance to sea port

� Quality of Crude Oil

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� Quality of Crude Oil

o Crude assay

� Product Specification

o Product specification for naphta, diesel, and fuel oil

o Storage capacity

o Average selling price

Indonesian Oil Product SpecificationGasoline

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Indonesian Oil Product SpecificationIndustrial Diesel Oil (IDO)

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Indonesian Oil Product SpecificationMarine Fuel Oil (MFO)

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Example CDU Simulation using Hysys Assumption:

- Capacity = 10 000 BPD

- Oil characteristics = Type C Banyu Urip (using assay characteristics)

- API 32.6 (60oF)

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Products:

- Naphta = 895 BPD

- Kerosene = 1122 BPD

- Diesel = 3860 BPD

- Atm residue = 4124 BPD

Example Catalytic Reforming Simulation using

Hysys

Atmospheric residue is further processed in Vacuum Distilling Unit to produce LVGO, HVGO, and Vacuum Resid.

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Products:

- Offgas : 2.94 BPD

- LVGO : 975.3 BPD

- HVGO : 1057 BPD

- Vacuum resid : 2091 BPD