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Apetroleum refinery is an
industrial process plant where
crude oil is processed and
refined into more useful
petroleum products.
CATEGORIES:
Petroleum products are usually
grouped into three categories:
light distillates (LPG, gasoline,
naphtha)
middle distillates (kerosene,
diesel)
heavy distillates and residuum
(heavy fuel oil, lubricating oils,
wax, asphalt)
I/P => Crude Oil
Crude Oil : mixture of Hydrocarbon
in liquid form
In terms of API Gravity: high API;
lighter the crude and low
specific gravity. Yield greater
portion of gasoline
In terms of Hydrogen Sulphide
content
less sulphur: sweet
high sulphur :sour
Classification of Crude Oil
Classification Range
°API
Light >= 33
Medium >=24 and <33
Heavy < 24
Sulphur
Low (Sweet) Up to 0.5%
Medium 0.5% to 1.5%
High (Sour) Above 1.5%
Quality Comparative
Viscosity, cSt
Yield
(% wt)
INDIA AS AN INTERNATIONAL
REFINING DESTINATION
Ø Investment requirements lesser by 25% - 50%
Ø
Ø India enjoys 3% of the international capacity share
Ø
Ø D o m e stic d e m a n d g ro w th a n d tra d e p a rity p ricin g fo r
d o m e stic sa le s ( H ig h m a rg in s)
E xp o rt p o te n tia l
Ø
Ø West cost refineries close to eastern markets
Ø High refining margins(eg RPL) will allow for
competitive exports from America
Ø Most Asian/ SEA countries are expected to have deficit
of Petroleum products ->export opportunity
Demand for Petroleum
Products in India
(In KT) FY 2009-10 FY 2008-09 Growth (%)
(incl. others)
Refinery in India
Jamnagar Refinery (Reliance Industries), 650,000 bbl/d (103,000 m3/d)
Reliance Petroleum (Reliance Industries), 580,000 bbl/d (92,000 m3/d)
Mangalore Refinery (MRPL), 199,000 bbl/d (31,600 m3/d)
Digboi Refinery, Assam (IOC), 13,000 bbl/d (2,100 m3/d)
Guwahati Refinery Assam (IOC), 20,000 bbl/d (3,200 m3/d)
Bongaigaon Refinery Assam (IOC), 48,000 bbl/d (7,600 m3/d)
Numaligarh Refinery Limited Assam (NRL), 58,000 bbl/d (9,200 m3/d)
Haldia Refinery (IOC), 116,000 bbl/d (18,400 m3/d)
Panipat Refinery (IOC), 240,000 bbl/d (38,000 m3/d)
Gujarat Refinery (IOC), 170,000 bbl/d (27,000 m3/d)
Barauni Refinery (IOC), 116,000 bbl/d (18,400 m3/d)
Mathura Refinery (IOC), 156,000 bbl/d (24,800 m3/d)
Chennai Refinery (IOC), 185,000 bbl/d (29,400 m3/d)
Mumbai Refinery (HPCL), 107,000 bbl/d (17,000 m3/d)
Visakhapatnam Refinery (HPCL), 150,000 bbl/d (24,000 m3/d)
Mumbai Refinery Mahaul (BPCL), 135,000 bbl/d (21,500 m3/d)
Nagapattnam Refinery (CPCL), 20,000 bbl/d (3,200 m3/d)
Kochi Refinery (BPCL), 172,000 bbl/d (27,300 m3/d)
Tatipaka Refinery (ONGC), 1,600 bbl/d (250 m3/d)
Essar Refinery (Essar), 289,256 barrels per day (45,988.0 m3/d)
No New Oil Refineries Since
1976 in US
REASONS
30-year construction drought
Environmental activists
Arizona Clean Fuels
Global Issues
Economic Growth concerns
– Oil Demand slowdown
– Short term supply avails – spare capacity
– Project Finance for new projects
• Delays due to Economic justification
• Constrained opportunities
• Energy Security
– Vulnerable supply growth
– Lower the Oil prices now may lead to a higher rise in future
• Climate Change – Global warming
– Greenhouse gas emissions
– Food vs. Fuel debate, Deforestation
– Socio economic impacts due to increased Air pollution
• Transport sector - one of the key contributor to Air
pollution
• Impact of new IMO bunker fuel specification
EXXON Mobil Case
Japan’slaw to shut refineries may see ex
Sunday, 29 August 2010 04:50
Oil and Gas industries are particularly
susceptible to market risk or more
Risk Mitigation
Crude price:
Hedging Domestic crude purchases and sale