FEASIBILITY REPORT FOR RESIDUE UPGRADATION ...

FEASIBILITY REPORT FOR RESIDUE UPGRADATION PROJECT AT

MUMBAI REFINERY UNDER MREP PHASE II

HINDUSTAN PETROLEUM CORPORATION LIMITED, MUMBAI REFINERY

Document No. A965-79-41-000-RP-003

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Feasibility Report for Residue Upgradation Project,

HPCL Mumbai Refinery

1.0 INTRODUCTION

HPCL’s Mumbai Refinery was established in 1954. Through progressive revamps/ capacity expansions, current crude oil processing capacity of HPCL-MR is 7.5 MMTPA. It currently has two trains of primary distillation units (FR APS/VPS and FRE APS/VPS, associated secondary processing facilities viz. Old & New FCCUs, DHDS & DHDT, MS Block (NHT/ISOM, NHT/CCR and Prime-G+), LOBS production facilities and other associated treating & utility facilities. The refinery has also revamped its DHDS unit through Isotherming technology licensed by DuPont to produce ultra-low sulfur Diesel. With the installed facilities, the refinery shall be able to produce Gasoline and Diesel meeting Euro IV quality specifications, besides other petroleum products like LPG, Naphtha, Kerosene, ATF, Fuel oil& Sulphur.

In view of the expected growth in demand for petroleum products, to meet the BS VI Auto Fuel Specifications for MS & HSD and to remain competitive in the market with product self-sufficiency, HPCL has planned to undertake the Mumbai Refinery Expansion Project (MREP) in two phases (Phase I and II) primarily to meet the following overall objectives:

Maximization of crude refining capacity (from existing 7.5 MMTPA to 9.5 MMTPA) for optimum capacity utilization of secondary processing facilities existing at Mumbai Refinery.

Meeting BS – V/VI specifications for MS and HSD.

Improvement in GRM by maximization of distillate yields using Hydrogen Based Bottoms Upgradation facilities.

Zero Fuel Oil and zero Export Naphtha production. Mumbai Refinery has already undertaken implementation of Phase I of the project after obtaining Environmental Clearance, and the following facilities are expected to be installed post Phase I:

1. MR capacity expansion (FR crude unit revamp) from existing 7.5 MMTPA to 9.5 MMTPA

2. Revamp of MS block and DHDT units to produce BS-VI MS and HSD

NHT/ISOM revamp by 30%

NHT/CCR revamp by 35 %

Prime G+ revamp by 30%

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Revamp of DHDT for VGO and diesel co-processing mode

3. MR II tankage facilities at Calico land for construction of a new tank farm

4. New HGU of capacity 65 KTPA

For Phase –II, HPCL intends to carry out Detailed Feasibility Report (DFR) for

Hydrogen Based Residue Up-gradation project primarily to meet the following

objectives:

To improve refinery profitability (GRM) by maximizing distillate yields using Hydrogen Based Bottoms Upgradation facilities.

To saturate the existing secondary processing units, mainly FCCUs and DHDS/DHT units, as also for targeting zero fuel oil and zero export naphtha production

HPCL has entrusted EIL to carry out the job of preparation of detailed feasibility

report (DFR) for Phase II expansion of Mumbai Refinery Expansion Project

(MREP), which includes:

Configuration study for a refinery throughput of 9.5 MMTPA with a new hydrogen based residue up-gradation facility

Matching treating and utility & offsite (U&O) facilities for the selected crude mix.

Base Case for Phase II Refinery Configuration study will be the refinery configuration established under Phase I DFR.

In order to estimate the capital investment within accuracy of ± 20% and to

establish the implementation plan for Phase II Residue upgradation project,

refinery configuration study & preparation of DFR are performed based on in-

house process knowledge, state-of the art tools and years of expertise with EIL.

2.0 DETAILED FEASIBILITY REPORT

Base case

The Base case was developed by LP modeling, considering the following:

Crude Mix:

Crude thru’put of 9.5 MMTPA is considered with the following crude mix:

Bombay High: 3.5 MMTPA

Arab Light: 2 MMTPA

Basrah Crude: 4 MMTPA

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(FR=4MMTPA Basrah + 2 MMTPA AL; FRE=3.5 MMTPA BH)

Feed/ product prices:

Three years’ average price taken from 2015-2018

Key considerations:

1. Revamp of FRAPS unit upto crude processing capacity of 6 MMTPA and a new VPS unit (VDU) has been installed for processing the RCO generated from revamped FRAPS.

2. Revamp of MS block units (NHT/CCR by 35%, NHT/ISOM by 30% and Prime G+ by 30%) is completed.

3. Revamp of DHDT for co-processing of diesel and VGO and subsequent routing of hydrotreated VGO to Old FCCU is completed.

4. A new HGU, for supplying hydrogen to refinery is installed.

5. SOX limit for the refinery shall be a maximum of 12.6 TPD.

6. CPP revamp has not been considered under this DFR.

7. Minor modification, if required, may be undertaken in GFEC SWS and DHT ARU to process the increased sour water and rich amine generated post Phase I expansion.

Phase II Expansion case

The final Phase II expansion case was developed by LP modelling, considering

the following:

Crude Mix:

Design Crude Mix 1


Arab Light: 2 MMTPA

Kuwait Crude: 4 MMTPA

(FR=4MMTPA Kuwait + 2 MMTPA AL; FRE=3.5 MMTPA BH)

Design Crude Mix 2


Kuwait Crude: 6 MMTPA

(FR=6MMTPA Kuwait; FRE=3.5 MMTPA BH)

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Design Crude Mix 3


Basrah Crude: 6 MMTPA

(FR=6MMTPA Basrah; FRE=3.5 MMTPA BH)

Feed/ product prices:

Three years’ average price taken from 2015-2018

Objectives:

Residue Up-gradation. Maximization of distillates. Zero Fuel Oil and zero Export Naphtha production.

Material balance

Out of all the LP cases developed, only one have been shortlisted based on

the preliminary economic analysis and other factors such as plot

requirement, reliability, proven track record etc.

The shortlisted case is as follows:

Crude mix: 6 MMTPA Basrah + 3.5 MMTPA Bombay High, with RUF-Ebullated bed technology.

Basrah crude was selected over Kuwait crude due to its ease of

availability and low purchase cost giving a higher GRM.

Basrah crude was selected over Arab Light as the VR yield of Basrah is

higher and thus maximizing the Residue upgradation capacity.

Elaborate explanation on selection of Ebullated bed technology over the

others residue upgradation technologies is provided in the DFR.

Material balance for the base case and Phase II shortlisted case are

provided in the table below.

Overall Material Balance of Refinery

Stream

Base Case

(LP Case no.141)

Expansion Case

(LP Case no.244)

FEED (000’TPA)

Bombay High 3500 3500

Basrah 4000 6000

Arab Light 2000 -

Total crude 9500 9500

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Natural Gas 24 24

Additive - 1.3

Import VR - 606

Total feed 9524 10131

PRODUCT(000’TPA)

LPG 535 638

LAN 103 -

SCN 96 96

Treated Hexane 30 30

Solvent1425 8.5 8.5

MS BS VI 1731 1830

Total MS 1731 1830

MTO 48 48

ATF 600 600

SKO 52.2 52.2

Diesel BS VI 3406 4614

Total Diesel 3406 4614

LDO - -

RPO - -

FO180cst 1015 -

FO Bunker - -

Total Fuel oil 1015 -

Sulphur 63 189

150 N Gr-I 70 70

500 N Gr-I 100 100

Spindle Oil –Gr-I 15 15

Spindle Oil –Gr-II 32 32

150 N Gr-II 76 76

500 N Gr-II 92 92

Bright Stock 50 50

IO-100 15 15

Total LOBS 450 450

VG-10 Bitumen 234 -

VG-30 Bitumen 546 252

VG-40 Bitumen - 377

Total Bitumen 780 629

Slurry Pitch - 127

Fuel& Loss 606 820

Total 9524 10131

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3.0 PROCESS UNITS

The design capacities of new process units envisaged under MREP Phase

II is provided in the table below:

Design Capacities of new Process Units

A.

New Processing Unit

Capacity

1 RESIDUE UPGRADATION FACILITY (RUF) MMTPA 1.81

B. New Auxiliary Units

1 HYDROGEN GENERATION UNIT (HGU) KTPA 65

2 SOUR WATER STRIPPERUNIT (SWS) TPH 66

3 AMINE REGENERATION UNIT (ARU) TPH 310

4

SULPHUR RECOVERY UNIT (SRU) WITH TAIL GAS

TREATING UNIT (TGTU) TPD 2X 180

4.0 NEW UTILITY SYSTEMS

The utility facilities for the Refinery consist of the following:

Cooling water system

DM water system

Compressed air system

Nitrogen system

Steam, power and BFW system

Condensate system

Internal fuel oil and fuel gas system

Bearing Cooling Water System.

Flare system.

The existing utility systems will be completely saturated post Phase I expansion

of the refinery. Hence, to meet the Phase II utility demand, new utility systems

have been configured.

The utility requirement for the Phase II various units and utility & offsite have

been referred from EIL in house data. Based on this the Utility block

configuration have been worked out. Present DFR costing have been carried

out considering this utility block configuration.

However, utility summary and the utility block configuration shall be finalized at

design stage after finalization of licensors of new process units.

Following New Utility Systems shall come up in MREP Phase-II expansion:

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New Utility Systems

NEW UTILITY SYSTEM DETAILS OF FACILITIES

Bearing Cooling Water System

Bearing Cooling Tower Cells 2 number of cells(1 working+1 standby),

each having a capacity of 700 m3/hr.,

Type: Induced draft

Bearing cooling water circulation

pumps

Number: 2 (1 working + 1 standby)

Capacity: 700 m3/hr. per pump

Head: 60 m

Type: Horizontal centrifugal

Drive: Electric motor

Side stream filters 2 number , each of capacity 14 m3/hr.

Compressed Air System (Plant and Instrument Air)

LP air Compressor


Capacity: 20000 Nm3/hr. each

Type: Centrifugal, non-lubricated

Drive: Electric motor

HP air Compressor

Number 1 (1 working + 0 standby) Capacity: 250 Nm3/hr. each Type: Reciprocating Drive: Electric Motor

Instrument air Dryer


Capacity: 10000 Nm3/hr.

Type: No loss purge, split flow, closed circuit,

heat of compression type)

Dual bed absorption with activated alumina as

desiccant

Nitrogen System-taken care in Phase I N2 plant

Steam and Power system

Utility Boiler

Number: 1 (1 standby) Capacity: 125 TPH of gross HP steam (i.e. 100 TPH of net HP steam) generation at 40 kg/cm2g

Steam Turbine Generator Number: 1

Rating: 10 MW power generation

Type: Extraction

Sea cooling water system

Sea cooling tower Number: 3 (2 working + 1 standby)

Capacity: 4000 m3/hr. each

Sea cooling water recirculation

pump

Number = 2 working + 1 standby Capacity: 4000 m3/hr. each Pump Head: 60 m

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NEW UTILITY SYSTEM DETAILS OF FACILITIES

Side stream filter Number: 2 Capacity: 80 m3/hr. each

DM water system

DM water chain Number: 2 (1 working + 1 standby) Capacity: 220 TPH each

Raw water system

Raw water sump Dimension: 25m X 25m X 5m:

Raw water pump to DM feed Number- (2working +1 standby) Capacity:100m3/hr.each

Raw water pump to BCT Number- (1 working + 1 standby)

Capacity: 40 m3/hr each

Raw water pump as service

water

Number- (1 working + 1 standby) Capacity: 50 m3/hr each

Flare system

HC flare Flare stack: Dia: 72" , Height: 110 m, MOC: KCS

+ 3mm CA+PWHT

Flare KOD: Dia: 6 m, TL/TL-27 m, MOC: KCS +

3mm CA + PWHT

Water seal drum: Dia: 5.5 m, TL/TL: 9 m, MOC:

KCS with cement lining internals: SS316L.

Flare tip: Dia: 72 ", MOC: Incoloy 825.

Sour flare Flare stack: Dia: 20" , Height: 110 m, MOC: KCS

+ 3mm CA+PWHT

Flare KOD: Dia: 2 m, TL/TL-6 m, MOC: KCS +

3mm CA + PWHT+HIC

Flare tip: Dia: 20 ", MOC: Incoloy 625.

5.0 NEW OFFSITE FACILITIES

The offsite facilities shall be augmented by adding following new storage

facilities under MREP Phase-II.

List of new offsite tanks

Sl.

No. Service

Gross

Capacity

per Tank,

M3

Height/

Length, m

Diameter

, m

No of

Tanks Type

1 LPG 2080 50.0 7.00 3.0 Mounded Bullet

2 HGU feed 5034 15.0 21.00 1.0 External Floating Roof

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3 VR 14605 20.0 30.50 3.0 Cone roof

Apart from these tanks, 4 Naphtha tanks will be reassigned / realigned to

cater to the space requirement of this project.

In addition to the above, the following are the new offsite pumps envisaged

in MREP Phase II:

List of new offsite pumps

Sl.

No. Service

Each

Pump flow

(m3/hr)

Head

(m)

No. of

pumps Type

1 VR pump from MR-II area to RUF* 182 119 1+1 Screw Pump

2 VR pump from VPS to MR-II area# 235 60 1+1 Screw Pump

3 HCGO pump from MR-II area to RUF* 35 95 1+1 Centrifugal

4 HCGO pump from NFCC to MR-II/RUF area* 45.0 57 1+1 Centrifugal

5 ASPHALT pump from MR-II area to RUF* 40.0 113 1+1 Screw Pump

6 HGU feed pump* 57 89 1+1 Centrifugal

7 VR pump from FRE-VPS to RUF/MR-II# 43 75 1+1 Screw Pump

Note: All pumps are motor driven, MOC: CS.

* New pumps

# Existing pumps. Adequacy to be checked during detail engineering. For

DFR costing, cost of news pumps have been considered.

6.0 ENVIRONMENTAL EMISSIONS

The stipulated SOx emission limit is 12.6 TPD for HPCL Mumbai Refinery. For

the enhanced capacity of 9.5MMTPA and with Residue Upgradation Facility,

SOX emissions are estimated to remain within the maximum limits. This is

possible as a result of various measures taken-up during the configuration

study of the project, such as improved furnace efficiency, use of only low

Sulphur fuel oil (Sulphur content 0.5 wt.%) in furnaces and also due to high

Sulphur recovery in the existing two SRUs and new SRU envisaged under this

project. Also, low NOx burners will be installed to reduce NOx emission from all

furnaces. The estimated SOx emission from the refinery post Phase II

expansion is within the stipulated limit.

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7.0 RECOMMENDATION

Based on the detailed feasibility study it is recommended to consider a Hydrogen based Residue Upgradation Facility as part of MREP Phase II Project. The Phase II project includes the new facilities as follows:

Residue Upgradation Unit– Ebullated bed Hydrocracking Technology.

Hydrogen Generation Unit

Sulfur Block

Matching Treating Units

Matching Utility and Offsite facilities.

The total estimated capital cost for the Phase II Expansion case is ₹ 6963 crores.

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