Auto Fuel Quality Improvement By Indian Refineries Experience so far & Preparedness to produce fuels meeting BS-III/IV norms N.K.Bansal, Vijay Prakash S Sarkar IOCL Contents Background for improvement Changing specs of Auto Fuels Quality up-gradation Projects for BS-II/III norms Industry experience on quality switchover Preparedness for meeting BSIII/IV norms Way forward -Future concern Auto Fuels Quality Improvement Why? And When? Emission Control In India- Background 1995 Directive issued for catalytic converter on passenger cars in metros along with unleaded petrol. Fuel specs revised/target specs for 2000 notified. 1996 Revised emission norms issued – met through minor engine modifications 1998 Supreme court issued several directives for NCT/NCR 2000 Euro- II norms implemented in Delhi for cars. 2001 Bhure Lal committee submits report on clean fuels Dr Mashelkar committee constituted to recommend Auto Fuel policy for India 2002 Auto Fuel Policy report submitted by Dr. Mashelkar and Road Map firmed up Major Changes in Specification of Gasoline Parameter BIS-2000 BS-II BS-III EU-IV Eq. Sulphur ppm max. 1000/500 500 150 50 Benzene Vol% max. 5/3 3 1 1 Aromatics Vol% max. - - 42 35 Olefins - - 21(18#) 21(18#) Vol% max. RON (#) Premium grade 88/93(#) 88/93(#) 91/95(#) 91/95(#) Major Changes in Specification of Diesel Parameter BIS-2000 BS-II BS-III EU-IV Eq. Sulphur ppm max. 2500/500 500 350 50 Cetane No. * 48 48** 51** 51** Cetane Index (CI)* - 46** 46** 46** Distillation 0C at 95% max. 370 370 360 360 Polycyclic Aromatics - - 11 11 (Wt % max.) * Lower by 3 nos. for Assam Crude ** Either Cetane No. or CI Changing Specs. of Auto Fuels Gasoline •Lead Phase out •Increasing trend of Octane •Lower “S” in MS •Lower Benzene •Restrictions on Olefin & Aromatics Changing Specs of Auto Fuels HSD •Increasing trend of Cetane •Diesel getting lighter •Lower “S” requirement •Restrictions on Polyaromatics Fuel Quality Improvement Challenges • Gasoline -Reduction of Benzen & aromatics • Diesel - Sulphur reduction - Cetane increase - Reduction of olefins - Poly-aromatic control - Reduction of sulphur - End point & density - Increase in octane reduction Timeline for Vehicular Emission Norms & Fuel Quality Entire country (Except for Metros and some selected cities Bharat Stage - II 1st April 2005 Bharat Stage - III 1st April 2010 Metros & Major cities (Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur and Agra) # Bharat Stage - III 1st April 2005 Euro-IV Equivalent 1st April 2010 # Lucknow & Solapur also added subsequently. MS Quality Improvement to BS-II/III MS Blending Components in Refineries S No Process Unit MS Component Characteristics 1 Catalytic Reforming Reformate 2 Fludised Catalytic Cracking FCC Gasoline High RON, Low Sulphur, High Benzene and Aromatics High RON, Low MON, High Sulphur, High Olefins 3 Crude Distillation Light naphtha 4 5 Hydrocracking Light /Heavy Naphtha unit Delayed Coker Cracked Naphtha & Visbreaking Units Low RON, Low Sulphur Low Sulphur, Low RON Low RON, High Olefins, Diolefins, high Sulphur Refinery Efforts for MS Quality Improvement Lead Phase Out & RON improvement: • Commissioning of new CRUs / Revamp of existing CRUs at various Refineries • Commissioning of new FCCUs / Revamp of existing FCCUs at various Refineries • Blending of Oxygenates • Splitting of FCCU gasoline Benzene Reduction : • Cut adjustment in Naphtha splitter for CRU feed • Reformate splitting into Light reformate (rich in Benzene) & Heavy reformate (deficit in Benzene) • Hydro-isomerisation of Light reformate • Direct routing of Hy. Reformate to MS • Reformulation of blends Refinery Efforts for MS Quality Improvement Sulphur/Olefin Reduction • Addition of Sulphur reduction additives in FCCU to reduce FCC Gasoline Sulphur • Reduction in FCCU feed sulphur by adjusting feed mix • Cut adjustment of FCC Gasoline • Rerouting of streams like HCU Lt. Naphtha • Withdrawal of VBN & Coker Naphtha General • Stream Sharing between Refineries and absorption of Petrochemical Return Stream HSD Quality Improvement to BS-II/III HSD Blending Components in Refineries S No Process Unit HSD Component Characteristics 1 Fludised Catalytic Cracking TCO Low Cetane, High Sulphur 2 Crude distillation SRGO Crude Specific 3 Hydro Cracking Gas Oil High Cetane, Low Sulphur 4 Delayed Coking & Visbreaking Kero/Gas Oil Low Cetane, High Sulphur Refinery Efforts for HSD Quality Improvement Sulphur Reduction • Addition of 2nd Reactor in all DHDS Units to meet 0.05% `S’ • Revamp of existing DHDS/Change of Catalyst • Adjustment in operating conditions of process units Cetane Improvement • Installation of DHDT Units • Installation of Hydro-Cracker units Refinery Efforts for HSD Quality Improvement Recovery •Adjustment of operating conditions •Routing of HCU Kero to HSD pool General •Stream Sharing between Refineries •Adjustment in Cetane Improver dosing •Reformulation of blends Experience on switch over from BS-2000 to BS-II/III Financial Impact Huge capital investments Increase Lower in production cost compensation to Refineries Refinery Experience General Preparation of switchover plan Close monitoring of Projects Operational changes by careful planning and effective utilisation of LP models and Simulation Packages Procurement of testing equipment and their calibration Review of Offsite facilities including stream routing, storage and dispatch facilities level planning for dilution of tank holdup – about 3 months from Refinery to sale points Micro Refinery Experience Preparation of switchover plan Handling of slop generated Firming up of manufacturing specs for products for pipeline transfer of products Firming-up the Pumping sequence for pipeline transfer Pipeline Inter-phase absorption plan Refinery Experience Contingency Measures in place •Procurement of chemicals Cetane improver, MTBE, “S” reducing additives viz. LGS- 150 •Stream sharing possibilities among refineries Path Forward- Auto Fuels (BS-III/IV) •Existing system inadequate for meeting: “S”, “S” RON, Aromatics and Olefins for MS and Cetane index for HSD •New technologies, revamps of existing units and augmentation of facilities Technological Options (MS Quality Improvement ) Hydroprocessing : •For Sulphur reduction. •For Benzene Saturation •For Olefin reduction Isomerisation •For Octane Improvement Reforming •For Octane Improvement. Technological Options (HSD Quality Improvement ) Hydroprocessing : • Hydrotreating for Sulphur reduction & Cetane Improvement • Hydrocracking for HSD maximisation with • Sulphur reduction /Cetane Improvement MS (BS-III/ IV) Octane & Aromatic Revamp of Reformer at BRPL, Panipat, CPCL. New Reformer at Gujarat, NRL, HPC(M), HPC(V), Essar & KRL Reformate Splitting at Gujarat, Barauni, Digboi, Panipat NRL, HPC(M), HPC(V), MRPL followed by Bensat/Isomerisation of Light Reformate. Hy. Reformate directly to MS Blend. Sulphur & Olefin reduction Splitting of FCC Gasoline at Barauni, Gujarat, Panipat, HPC(V), HPC(M) followed by Merox treatment of Light FCC Gasoline. Isomerisation of Middle Cut having Benzene. Hydrotreatment of Heavy FCC Gasoline HSD (BS-III/IV) Sulphur Reduction & Cetane Improvement • Addl. Reactor in existing DHDT at Barauni. • New DHDT at Gujarat, BRPL,CPCL, MRPL, BPC-M & NRL. • Capacity Expansion of Hydro Cracker at Panipat & NRL and new Hydro Cracker at Haldia. • VGO Hydrotreatment at Gujarat, BPC-Mumbai & KRL. • Replacement of catalyst by new highly active catalyst at MRPL • Revamp of existing DHDS units MS / HSD (BS-III/ IV) Augmentation of Offsite facilities for : • Stream routing including online blending • Storage for intermediate streams and finished products • Dispatch facilities • Handling of interphase Slop generated from pipeline Financial Impact BS-II/III Production •Investment over Rs.15,000 Crore •Increase in production cost by approx.Rs.1.00 per litre BS-III/IV Production •Investment over Rs.22,000 Crore • Increase in production cost by approx.Rs.1.50 per litre Preparedness for BS-III/IV Facilities • All efforts being made for commissioning of facilities by Q3 of 2009-10. • No cushion available for any slippage • Lessons learnt during BS-II/III • Implementation being taken care of. • Contingency plans to be made at industry • Level to take care of slippages. Future Concern • Increasing Fuel & Loss • High capital investment, Increasing refining cost, Shrinking operating margins • Non-commensurate compensation for Increase in cost of production • Impact of T-95 recovery at 360 Deg C for HSD – Disposal of Heavy ends. • Inter-phase absorption during pipeline pumping • Space limitation in refineries for new facilities Future Concern Increase in complexity of refinery operations and safety concerns Shrinkage in flexibility of operations w.r.t. crude mix, processing capacity, product slate. Non-availability of any one component affects product availability (viz FCCU gasoline, Reformate, Isomerate) Increasing demand of skilled manpower operating plants with advanced technology Robust need for design and Reliability of P&U operations : A Future Concern • Very high dependency of Refinery operations on availability of quality upgradation facilities (Outage of HGU / DHDS affects overall refinery operations) • Technology and capacity augmentation keeping in view long term quality requirements – Provision for future add-on Requirement beyond 2010 LIMIT ?