Kochi Refinery

Opportunity Crudes: Challenges in Processing

Shivam Kumar KaushikNavneet Singh

Kochi RefineryIndia’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[2] http://petroleum.nic.in/docs/pngstat.pdf

Kochi RefineryChallenges faced by refiners

Kochi RefineryWhat 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 RefineryBrent v/s Opportunity crudes

Reference line based on Brent crude

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Points to be taken care while processing opportunity crudes

Kochi RefineryHigh Acid Crudes (HACs)

• Crudes having TAN >0.5

• Naphthenic acid is main culprit.

• Active between temperatures 240°C and 450°C

Kochi RefineryHACs : Financially attractive!

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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.

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Location for HAC corrosion - CDU

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Location for HAC corrosion- VDU

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HAC corrosion control strategy

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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 RefineryHeavy 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.

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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 RefineryConclusion

• 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.

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Thank You