Assessment Reports
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Bangladesh Asian Development Bank STRENGTHENING OF THE HYDROCARBON UNIT IN THE ENERGY AND MINERAL RESOURCES DIVISION (PHASE-II) PETROLEUM REFINING & MARKETING RFP HCU/CS-06 ASSESSMENT REPORTS December 2010 C1334 Société Française de Réalisation, d'Etudes et de Conseil 92-98, boulevard Victor Hugo 92115 Clichy Cedex - France Tél : +33 1 41 27 95 95 - Fax : +33 1 41 27 95 96 E-mail : [email protected] - Site Web : www.sofreco.com IN ASSOCIATION WITH srgb Centre For Research & Management Consulting SRG Bangladesh Limited Bangladesh Asian Development Bank STRENGTHENING OF THE HYDROCARBON UNIT IN THE ENERGY AND MINERAL RESOURCES DIVISION (PHASE-II) RFP HCU/CS-06 ASSESSMENT OF THE REFINERY December 2010 C 1334 Société Française de Réalisation, d'Etudes et de Conseil 92-98, boulevard Victor Hugo 92115 Clichy Cedex - France Tél : +33 1 41 27 95 95 - Fax : +33 1 41 27 95 96 E-mail : [email protected] - Site Web : www.sofreco.com In association with srgb Centre For Research & Management Consulting Refining and Marketing (Package 6) – Assessment of the Refinery TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................... 7 CHAPTER 1: ERL ASSESSMENT OF CURRENT OPERATIONS ..11 1. INTRODUCTION ............................................................11 2. ASSESSMENT OF USED TECHNOLOGIES OF MAIN UNITS ...........13 2.1. General description .......................................................................13 2.2. Highlights and key assessment points..................................................14 2.3. Benchmarking ERL with other refineries using the Nelson complexity index....14 3. ASSESSMENT OF QUALITY OF THE YIELD AND MODE OF OPERATION.................................................................18 3.1. Observation and remarks: ...............................................................20 4. ASSESSMENT OF THE OPERATING EXPENSES ........................22 4.1. Observation and Remarks: ...............................................................23 5. ASSESSMENT OF THE ERL OUTPUT YIELD, IMPORT, AND EXPORTS WITH BANGLADESH DEMAND ...............................24 5.1. The demand and supply ..................................................................24 5.2. Imports......................................................................................26 5.3. Exports ......................................................................................27 5.4. The demand pattern and ERL yields ...................................................27 5.5. ERL resize to match total product demand; part of recommendations ..........29 6. ASSESSMENT OF ERL CURRENT CONFIGURATIONS REPLACEMENT VALUE .......................................................................30 7. ASSESSMENT OF ERL AND MARKETING COMPANIES STORAGE AND LOADING/UNLOADING FACILITIES .....................................32 8. ERL REFINERY STORAGE FACILITIES ..................................33 - srgb 2 Refining and Marketing (Package 6) – Assessment of the Refinery 8.1. Feedstock tanks; crude, condensates, other feeds like atmos resids. This is the supply side to the refinery and volume required depends on:.....................33 8.1.1. Drop size of the supplying vessel.............................................33 8.1.2. Daily run rate of the refinery. ................................................33 8.1.3. Number of different feedstocks (and separate run rate) to be kept segregated .......................................................................33 8.1.4. Minimum required (compulsory) stocks .....................................33 8.1.5 Average minimum supply days between the next drop, sailing time...34 8.1.4. Normal operating buffer stocks ..............................................34 8.2. Refined Products; finished and intermediate (rundown) products................35 8.3. Number of different finished products ................................................36 8.4. Required intermediate product volume and dedicated storage tanks............36 8.5. Daily run rate of the refinery and import of products ..............................37 8.6. Lifting of products; frequency and mode of lifting ..................................37 8.7. Required minimum (compulsory) stocks...............................................37 8.8. Normal operating product stocks .......................................................37 9. QUALITY OF THE STORAGE FACILITIES ...............................38 10. MARKETING COMPANIES CHITTAGONG TANK TERMINALS.........39 11. QUALITY OF THE MARKETING COMPANIES STORAGE FACILITIES 41 12. RELATIVE RANKING FOR CHITTAGONG STORAGE FACILITIES ....41 CHAPTER 2: ASSESSMENT OF ERL TRANSPORTATION COSTS FOR CRUDE OIL AND OIL PRODUCTS ............................44 1. CRUDE OIL IMPORT .......................................................44 1.1. Tanker Vessel classes: ....................................................................46 1.2. Summary of Extra Cost of lightering and demurrage of the mothervessel.......49 1.2.1 Demurrage costs or higher charter party rates ............................49 1.2.2. The Lightering operation ......................................................49 1.2.3 Vessel size and Economics of scale: .........................................50 1.3. Possible ways to reduce the costs of crude oil transportation.....................50 1.3.1 Dredging an entry channel to Jetty 7...........................................50 1.3.2 Deeper draft anchoring points. ..................................................50 1.3.3 Use of larger capacity lightering vessels. ......................................51 1.3.4. Construction of a SPM ............................................................51 2. OIL PRODUCTS IMPORT AND EXPORT .................................52 - srgb 3 Refining and Marketing (Package 6) – Assessment of the Refinery CHAPTER 3: ASSESSMENT OF ERL REFINERY TECHNICAL AND ECONOMICAL PERFORMANCE .....................................54 1. GENERAL OBSERVATIONS ...............................................54 1.1. The Refiners Margin analysis ............................................................54 1.2. The ERL refining Margin ..................................................................56 1.2.1. ERL Crude oil Processing and Product output data ..........................56 1.2.2. International market prices and freight costs ................................57 1.2.3. The ERL Operating expenses. ...................................................61 1.2.4. Calculation methodology and outcome........................................61 2. THE ROLE OF ERL AND PETROBANGLA GAS SEPARATION UNITS FOR NAT GAS CONDENSATE AND NATUTAL GAS LIQUIDS PROCESSING................................................................64 2.1 Nat Gas Condensate treatment .........................................................65 2.2 Observations and Remarks...............................................................66 3 ERL THE REFINERY EFFICIENCY RATING..............................67 3.1 ERL Energy use............................................................................67 3.2 ERL furnaces performance...............................................................68 3.3 ERL Electricity and Steam generation. ................................................69 3.4 ERL utility performance ..................................................................70 3.5 The Flaresystem ...........................................................................71 3.6 Energy efficiency conclusions ...........................................................71 4 ERL PRODUCT QUALITY SPECIFICATIONS COMPARED TO NEIGHBOURING REGIONS ................................................71 4.1 Introduction ................................................................................71 4.2 Key petroleum product test specifications............................................73 4.3 ERL limitations in meeting specifications .............................................74 4.4 Assessment of current ERL Diesel/Naphtha Desulphurisation......................75 4.5 Assessment of ERL aromatics removal capability ....................................75 4.6 Production of higher octane gasoline ..................................................76 4.7 Production of Jet Fuel A1................................................................77 5. POSSIBLE VARIATIONS ON THE CURRENT ERL MODE OF OPERATION AND REFINERS MARGIN EFFECT. .......................78 5.1 Introduction ................................................................................78 5.3 Assessment for Crude oil choice optimization at ERL. ..............................81 - srgb 4 Refining and Marketing (Package 6) – Assessment of the Refinery 6. ASSESSMENT OF ERL AND BPC IN RELATION TO PRIVATE ENTERPRISES REFINERY ACTIVITIES...................................83 6.1 Introduction ................................................................................83 6.2 Other private company views on refining activity. ..................................84 CHAPTER 4 : DUE DILIGENCE OF ERL PROCESS UNITS AND FACILITIES............................................................85 1. CRUDE DISTILLATION UNIT OR ATMOSPHERIC DISTILLATION UNIT85 1.1 History ......................................................................................85 1.2 Assessment Observations and Conclusions ............................................86 1.3 Process flow description .................................................................86 2. ERL Vacuum Unit / Asphalt Plant......................................92