Subject: Petroleum Refininglll01l0

& Petrochemical Technology

Faculty: Dr. Murali Pujari

Petroleum Refinery
Refinery layout
Syllabus
➢ UNIT I: Global energy scene and consumption pattern, Global crude oil and Refining scenario, Growth of
Indian Refining industry, Challenges faced by Indian Refineries and mitigation measures.
➢ UNIT II: Characterization of crude oil on the basis of hydrocarbon type, Physio chemical properties of
crude oil/refining products significance of test methods, Relevance and significance of hydrocarbon type as
fuel and implication on processes, Refinery Configuration
➢ UNIT III: General Description of key Refinery Processes, Crude Desalting, Atmospheric Distillation,
Vacuum Distillation ,Solvent Extraction
➢ UNIT IV: Thermal Processes: Steam Cracking, Visbreaking, Delayed Coking, Fluid / Flexi Coking,
Catalytic Processes: Isomerization, Alkylation, Polymerisation, Reforming, Hydrotreating, Hydrocracking,
Fluid Catalytic Cracking
➢ UNIT V: Product Blending and Correlations Petro-chemical product families Synergy between Refinery
and Petrochemicals, Profitability, Pricing, Cost
Global Energy Scene and Consumption Pattern
What is Energy?

➢ Energy is one of the most important components of economic infrastructure

➢ In a developing economy, the energy demand is high from sectors

like agriculture, industry, residential and economical.

➢ Energy sources are very much necessary for the existence of mankind

Energy sources can be divided into two types based on how quickly can they be replenished:
➢ Conventional sources of Energy

➢ Non-conventional sources of Energy

➢ At present, many countries are overly depending on conventional source of energy to meet
their requirement for power

➢Out of all the conventional sources of energy, oil is used abundantly all over.

➢ The deposits of petroleum are quickly exhausting and if it continues, there will be soon
complete exhaustion of all the conventional sources of energy.

➢ Many countries throughout the world have engaged themselves in searching and
developing non-conventional energy sources that would be very essential to sustain the
life cycle of human being.
The main energy sources are

➢ Coal
➢ Oil
Conventional sources
➢ Natural gas
➢ Nuclear power
➢ Other renewable sources like solar energy, wind energy, hydro energy, bio energy, ocean
energy and energy from waste, etc.
➢ Energy sources have mostly remained the fossil fuels, supplying more than 60% of global
energy

➢ Energy usage has increased over the years

➢ According to the data from the global statistical

data book (2016), the total energy consumption in
2015 was 13,778 MToe, reporting an annual
increase of 2.1% in energy use since 2000

World energy consumption from 1990-2015

➢ It is predicted to increase in future years, as global economy expands and level of activity
and lifestyles improve
➢ Population is an indicator of energy use

➢ Income and the technological advancement of that

country also contribute hugely to energy consumption

➢ For example, the entire population of USA accounts

for only 4.5% of the global, but consume nearly 20%
of its energy
Decadal percentage increase in energy use
vs. population growth

➢ And their per capita energy consumption is 17 times that of India, 4 times that of Chinese
consumption (WPB, 2016)
➢ According to Global Energy Statistical year book 2016, the top ten energy consuming
countries in 2015 are:

Country Energy use (Mtoe)

China 3101
United States 2196
India 882
Russia 718
Japan 435
Germany 305
Brazil 299
South Korea 280
Canada 251
France 246
Shares of global energy consumption by fuel
 Energy consumption by country

➢ Energy consumption is correlated with gross national product and climate

➢ Japan and Germany with an energy consumption rate of 6 kw per person and the United
States with an energy consumption rate of 11.4 kw per person.
➢ In developing countries, particularly those that are subtropical or tropical such as India,
the per person the energy use rate is closer to 0.7 kw. With a per capital energy use rate
0.2 kw, Bangladesh accounts for the lowest consumption rate

➢ The US consumes 25% of the world energy with a share of global GDP at 22% and a
share of the world population at 4.6%
 Energy consumption by country
➢ The most significant growth of energy consumption is currently taking place in China,
which has been growing at 5.5% per year over the last 25 years

➢ Its population is 1.3 billon people (19.6% of the world population) is consuming energy
at a rate of 1.6 kw per person
Energy consumption by different sources in India
➢ India is well endowed with both renewable and non-renewable energy sources

➢ Around 36% of India’s primary energy supply is used as an input to power generation

➢ Though the fossil fuels contribute to three-fourth of our

energy consumption, the increase in energy demands,
limited domestic fossil fuel reserves as well as concern
about global warming and pollution, has driven the
country to more ambitious plans towards renewable
energy

Primary energy consumption by fuel

 Energy consumption in India
➢ Due to rapid economic expansion, India has one of the world’s fastest growing energy
markets, and it is expected to be the second largest contributor to the increase in global
energy demand by 2035, accounting for 18% of the rise in global energy consumption

➢ Domestic production is sufficient to meet only 58% of domestic consumption. India

depends on imports of coal, oil and natural gas to meet their energy requirements

➢ India has emerged as the third greatest energy consumer after China and US, accounting
for about 5.3% of the global total annual primary energy consumption in 2015
Energy use by sector in India

➢ Industry is currently the largest energy

consuming sector followed by transport
sector

➢ Industrial energy demand is mainly met by

coal, oil, electricity and biomass

➢ Industrial sector also is liable for 44% of total electricity consumption, followed by
residential (22.93%) and agriculture (17.81%) in 2014-15
 Crude Oil
Petroleum or crude oil is a naturally occurring
mixture of hydrocarbons, generally in a liquid
state, which may also include compounds of
sulfur, nitrogen, oxygen, metals, and other
elements
Viscous, dark brown to bluish black or black
Crude oil

Petroleum (or crude oil) is a fossil fuel

that was formed from the remains of dead
organisms.
Crude Oil and Natural Gas Origin, Occurrence
Contd….
• Oil and gas production includes exploration, drilling, extraction, stabilization.
• The underground traps of oil and gas are called reservoir.
• Most reservoir contain water also along with oil and gas.
• Earlier finding of oil and gas was matter of luck and hit and miss process.
• Tools used for oil and gas exploration are dependent on gravity change, magnetic field
change, time change and electrical resistance
Contd….
• With arrival of three dimensional seismic technology which is based on the sound
waves, identify the subsurface formation by reflection of sound, there has been much
improvement in identification of oil and gas traps and reservoirs.

• Seismic technology significantly improves the method of estimating the oil and gas
deposits.

• However it has become now more challenging and complex.

Drilling of Oil and Gas
• After exploration next step is drilling: methods are used in order to extract natural
resources – usually oil and gas – from the earth

❖Onshore: drilling deep holes under the earth’s surface

❖Offshore: drilling underneath the seabed

Major petroleum products
 World’s oil reserves

U.S.
Canada Russia

Kazakhstan
U.S.
Venezuela China

Iran,
Iraq,
Algeria Saudi Kuwait
Libya
Brazil Angola Arabia

Nigeria
Oil reserves denote the amount of crude oil that
can be technically recovered at a cost that is
financially feasible at the present price of oil.
Hence reserves will change with the price,
unlike oil resources, which include all oil that
can be technically recovered at any price
 OPEC oil reserves
According to current estimates,
79.4% of the world's proven oil
reserves are located in OPEC
Member Countries, with the
bulk of OPEC oil reserves in
the Middle East, amounting to
64.5% of the OPEC total.

OPEC Member Countries have

made significant additions to their
oil reserves in recent years, for
example, by adopting best
practices in the industry, realizing
intensive explorations and
enhanced recoveries. As a result,
OPEC's proven oil reserves
currently stand at 1,189.80 billion
barrels.
OPEC (Organization of Petroleum Exporting Countries)
For more information on OPEC, refer the link: https://www.opec.org/opec_web/en/about_us/24.htm
Oil Exporters
Oil Importers
India imports 82% of its oil needs
and aims to bring that down to 67%
by 2022 by replacing it with local
exploration, renewable energy and
indigenous ethanol fuel.
 Indian crude oil reserves
• As on 31 March 2018, India had estimated
crude oil reserves of 594.49 million tonnes
(MT) and natural gas reserves of 1339.57
billion cubic meters (BCM).

• India imports 82% of its oil needs and aims

to bring that down to 67% by 2022 by
replacing it with local exploration, renewable
energy and indigenous ethanol fuel.
Status of Indian Petroleum Industry
Status of Indian Petroleum Industry
Indian petroleum industry has made tremendous growth during last six decades with
only one refinery with just a 0.25 million tons refining capacity at the time of
independence

The country’s refining capacity has increased from a modest 62 million metric tonnes per
annum (MMTPA) in 1998 to 249.9 MMTPA at present comprising of 23 refineries.
❖18 under public sector
❖3 under private sector
❖2 in joint venture
 Indian Petroleum Refinery
PSU Refineries

S. No Refinery Location Name of the Company Capacity

(MMTPA)*
1 Digboi, Assam 0.65
2 Guwahati, Assam 1.0
3 Barauni, Bihar 6.0
4 Kovali, Gujarat 13.7
5 Bongaigaon, Assam Indian Oil Corporation Limited 2.35
6 Haldia, West Bengal 7.5
7 Mathura, U.P 8.0
8 Panipat, Haryana 15.0
9 Paradip, Odisha 15.0
10 Mumbai, Maharashtra Hindustan Petroleum Corporation Limited 7.5
11 Visakhapatnam, Andhra 8.3
Pradesh
12 Mumbai, Maharashtra Bharat Petroleum Corporation Limited 12.0
13 Kochi, Kerala 15.50
14 Manali, Tamil Nadu Chennai Petroleum Corporation Limited 10.5
15 Nagapattinam 1.0
16 Numaligarh, Assam Numaligarh Refinery Ltd. 3.0
17 Mangalore, Karnataka MRPL 15.0
18 Tatipaka, AP ONGC 0.066
JV Refineries

19 Bina, MP Bharat Oman Refinery Ltd. 7.8

20 Bathinda, HPCL Mittal Energy Ltd. 11.3
Punjab

Private Sector Refineries

21 DTA-Jamnagar Reliance Industries Limited 33.0

22 SEZ, Jamnagar, 35.2
Gujarat
23 Vadinar, Gujarat Essar Oil Limited 20.0
Growth of Indian Petroleum Industry
1866 Oil discovery at Nahorpung
1882 Assam Railway and trading Corp acquired rights for oil exploration
1889 Oil production started at Digboi
1893 Right were granted to Assam Oil syndicate to start refining and first
refinery started
1899 Digboi refinery commissioned
1921 Burmah Oil Corporation (BOC) started oil exploration
1931 Crude oil production ; 250,000 tonnes
1947 Multinational oil companies Burmah Shell, Esso Stanvac set up two
refineries at Mumbai and Caltex set up
1962 First Public sector refinery started at Guwahati by Indian Oil Refinery Ltd
Growth of Indian Petroleum Industry
1962 Indian oil blending Ltd (IOBL) was formed for manufacture of lube oil
and greases
1964 IRL and Indian Oil company merged to form Indian Oil Corporation Ltd.
1965 Engineers India Ltd started
1967-77 Discovery of oil and gas in Tripura
1977-87 Discovery of oil in large quality at Bombay High
1974 IOBL became part of IOCL
1977-87 Discoveries of oil and gas in the offshore area (Mumbai off shore).
Oil and gas reserves discovered at Gandhar and Dhaej.
1981 Oil and gas found in Krishna-Godavary-Cauvery basin.
1995 Oil was found in Nagaland
1998 Assam Oil Co. vested in IOCL as Assam Oil Division
1999 First joint sector refinery MRPL commissioned
Growth of Indian Petroleum Industry
2000 Panipat Refinery of IOC commissioned
Reliance Petroleum Refinery
Numaligarh refinery
2006 Indian Oil first linear alkyl benzene plant commissioned at IOC Vadodara
2006 Indian Oil first terephtahlic acid plant commissioned at IOC Panipat
Refinery
2006 ONGC entered in Petroleum and Refinery sector by acquiring MRPL
2008 First Crude oil production from deep water in KG Basin
2009 ONGC to start mega petrochemical complex at Dahej, Gujarat
2009 HPCL Mittal Energy to set up polypropylene at ludhiana
2010 IOC panipat refinery commissioned naphtha cracker, polyethylene and
polypropylene plant
2012 HPCL Bhatinda Refinery commisioned
2014 Chennai petroleum corporation to double capacity to 3,90,000 bpd
Status of Global Petroleum Industry
➢ The global refinery capacity for crude oil has been steadily increasing since 1970

➢ As of 2019, the total global refinery capacity for crude oil was some 101.3 million
barrels per day. However, the refinery throughput was almost 83 million barrels of oil
per day.

➢ The United State had the world’s largest oil refinery capacity as of 2019, at 18.97
million barrels per day, while the actual refinery throughput was 16.56 million barrels of
oil per day
Countries with the largest oil refining capacity(in 1000 barrels per day)

Country 2010 2012 2014 2016 2018 2019

United States 17,736 17,823 17,967 18,617 18,762 18,974
China 12,323 13,681 15,253 14,895 15,655 16,199
Russia 5,563 5,816 6,417 6,594 6,596 6,721
India 3,703 4,279 4,319 4,972 4,972 5,008
South Korea 2,774 2,878 3,123 3,346 3,346 3,393
Japan 4,291 4,254 3,749 3,343 3,343 3,343
Saudi Arabia 2,109 2,107 2,899 2,835 2,835 2,835
Brazil 1,992 2,004 2,238 2,285 2,285 2,290
Iran 1,860 1,952 1,985 2,240 2,240 2,405
Germany 2,091 2,097 2,077 2,085 2,085 2,085
Canada 1,913 2,015 1,929 2,025 2,025 2,054
Status of Global Petroleum Industry
➢ The most common mode of transportation for their domestic crude oil refining was via
pipelines

➢ In 2019, 3.18 billion barrels of crude oil were transported by pipelines to refineries
throughout the United States

➢ Chevron, a multinational energy company with headquarters in California, had a crude

oil refining capacity that handled 1.7 billion barrels of crude oil per day worldwide
Countries with the highest oil consumption (in 1000 barrels per day)
 Countries with the highest oil consumption

➢ The United States and China are two of the largest consumers of oil in the world,
totaling 19.4 million barrels per day and 14 million barrels per day, respectively

➢ In the last few decades, the share of global oil consumption from Europe and North
America have begun to decline, whereas, consumption levels from Asia Pacific and
other regions have risen
Problems faced by Indian Refineries
8 Major Problems of Petroleum Industry in India
•Problem # 1. Shortage of Petroleum Crude
•Problem # 2. Dependence on Foreign Countries
•Problem # 3. Price Hike
•Problem # 4. Shortage of Oil Refining Capacity
•Problem # 5. Exploration of New Reserves
•Problem # 6. Technical Problems
•Problem # 7. Pollution
•Problem # 8. Lack of Market-Determined Pricing System
Shortage of Petroleum Crude:
➢ The petroleum industry has to depend too much on the imported crude

➢ Due to the increasing volume of demand-supply gap, the petroleum refineries in India
have failed to utilise their production capacity fully
Dependence on Foreign Countries:

➢ For meeting its requirement of various drilling and refining machineries, petroleum
industry in India has been depending too much on foreign countries

➢ In the year 2006-07, the total consumption of crude oil has increased to 146.5 million
tonnes against the total production of 34.0 million tonnes

➢ This has resulted in the import of 105.5 million tonnes of petroleum crude in 2006-07.
Price Hike:

➢ The international prices of petroleum goods have been maintaining a constant hike since
1973-74.

➢ This has led to the excessive rise in our import bill on petroleum goods

➢ In 2011-12, total import bill on petroleum oil and lubricants was to the tune of Rs 7,
43,075 crore as against Rs 5,587 crore in 1980-81.
Shortage of Oil Refining Capacity:

➢ In India there is a shortage of oil refining capacity as compared to total demand for
petroleum products

➢ In 2011-12 the total refining capacity of the country stands at 214.1 million tonnes as
compared to the total consumption of 220.5 million tonnes of petroleum products.

➢ This has forced the expansion of existing refineries and also setting up of new refineries
under the joint sector
Exploration of New Reserves:

➢ In India, the production of petroleum crude of existing old crude oil reserves has been
shrinking due to normal technical reasons.

➢ The proved crude oil reserves in India constitute only 0.5 per cent of the world oil
reserves

➢ At this present level of consumption, the proved reserves will be depleted within next 15
to 20 years

➢ Under the present circumstances, it is quite urgent to intensify the exploration activities of
the oil sector sincerely.
Technical Problems:

➢ The petroleum industry of the country is also suffering from numerous technical
problems in respect of production of middle distillates, activating its fire fighting
systems etc.

➢ The RD facilities in the industry should be expanded with the maximum possible limit to
face these technical problems.
Pollution:

➢ The growing pollution near the refineries and oil fields is a big problem for the industry.
The Government is trying to control such pollution by adopting certain effective
measures
Lack of Market-Determined Pricing System:

➢ The lack of a well functioning market determined pricing system

➢ Despite the surge of international prices of petroleum touching record level, the
petroleum companies are not allowed to revise their market price of petrol and HSD
accordingly and allowed only a limited freedom to revise the prices as per revised
methodology.
 Global Scenario
The projected global oil consumption is expected to register a substantial growth over the
present levels

Recently published energy reports project incremental demand of about 38 million barrels
per day (mbpd) in 2030 over 80 mbpd level in 2003

Most of this incremental demand will come out from developing countries including
China and India where oil consumption is expected to grow at the rate of 3.8 and 2.4
percent respectively as against the world average of 1.4 percent

High oil and gas prices have prompted increased investments in the exploration and
production (E&P) sector posing new challenges for the sector in the form of increased cost
of operations due to high service costs, and shortage of technical manpower
 Global Scenario
Global refining scenario indicates very little to negligible addition in capacities in major
developed consuming markets like the USA and the European countries

Developing countries like the Middle East, China and India are fast emerging as refining
hubs

Natural gas has been rightly termed as the fuel of the 21st century. Natural gas, the third
largest contributor to the global energy basket, is projected to increase at a rate faster than
any other energy source.

In the global context, natural gas market era has truly begun during the last 5 years.
 Indian Scenario
India is and shall remain heavily dependent on coal for about half of its primary
commercial energy requirements with the other half being dominated by oil and gas put
together

The Indian hydrocarbon industry is currently passing through a challenging phase like
increasing stringent environmental regulations, emergence of natural gas and rising crude
oil and natural gas prices have thrown up both challenges and opportunities to the Indian
oil and gas industry

India, with 18 refineries, currently has a surplus refining capacity which has placed India
amongst net petroleum product exporter countries

Increase of stringent fuel specifications have put pressure on the old refineries to upgrade
their refinery configurations
 Indian Scenario
The Government is seriously considering promoting India as a competitive refining
destination to service export market for petroleum products

The Government is committed to mitigating these challenges and has, in fact, met with
accelerated domestic exploration through its New Exploration Licensing Policy (NELP)
initiative

Some of the world class oil discoveries have recently been reported from blocks offered
under the NELP regime. Five NELP rounds have resulted into 110 PSCs being signed and
the Sixth round offering 55 exploration blocks is still underway
Thank You