PREFEASIBILITY REPORT
ON
PRODUCTION OF GROUP-II/III LOBS
AT CPCL REFINERY, MANALI EXECUTIVE SUMMARY
Chennai Petroleum Corporation Limited (CPCL) - a group Company of Indian Oil, is a premier Public Sector Undertaking involved in the refining of Crude Oil. CPCL has a 10.5 MMTPA capacity refinery complex at Chennai. CPCL has three Crude / Vacuum distillation units. Crude-I is a lube based refinery and is a major contributor of the indigenous base oil production of the country, producing API Group-I LOBS. Crude-II and Crude-III are fuel based refineries. The Group-I LOBS facilities consist of Propane Deasphalting (PDA), NMP Extraction, MEK Dewaxing and Lube Hydrofinishing units.
While the demand for Group I LOBS is expected to continue, there is growing demand for Group II/III LOBS in India. Presently, India imports large quantity of its Group II LOBS requirement. About 80% of Group II LOBS demand in the country was met through imports in the last 3 financial years and the demand is expected to further grow at CAGR of 2.5% per annum.
In view of the above, CPCL intends to set up a Catalytic Dewaxing Unit (CDWU) at Chennai Refinery to produce Group II/III LOBS. The new CDWU shall be installed with a feed capacity of 270 KTPA to produce Group II/III LOBS. Feedstock for production of Group II/III LOBS shall be Unconverted Oil (UCO) from Once-Through Hydrocracker (OHCU).
With the availability of OHCU, there exists a substantial potential for augmenting the base oil production volume by setting up new base oil production facilities. The proposal is also pertinent in view of India being a net importer of Lube base oils, majority of which are Group II/III.
On implementation of the project, CPCL will be able to produce about 242,000 TPA of Group II/III LOBS with the following indicative yield pattern: 70N grade: 75,000 TPA 150N grade: 67,000 TPA 500N grade: 100,000 TPA
Indian Oil Corporation Limited (IOCL) is installing a new Lube Blending Terminal near Manali refinery with Group II/III LOBS as a major product. CPCL’s ability to cater to production of Group II/III LOBS will be a synergy with the new Lube Blending Terminal and reduce coastal import.
The total cost of the project works out to Rs. 1072 Crore (+/-30% accuracy).
1. ABOUT THE PROJECT PROPONENT
Chennai Petroleum Corporation Limited (CPCL) (formerly known as Madras Refineries Limited) was formed as a joint venture of the Government of India (GOI), Amoco India Inc., U.S.A. and National Iranian Oil Company (NIOC), Iran with the initial equity contribution in the ratio of 74:13:13. The company was incorporated on 30.12.1965 as a Public Limited Company. Amoco Inc. disinvested its equity holding in favour of GOI in 1985. Later, Govt. of India transferred its equity share of 51.89% to Indian Oil Corporation Limited.
The Manali Refinery located at North Chennai has a capacity of 10.5 MMTPA. The refinery is one of the most complex and integrated refineries in India with three Crude Distillation Units (CDU/VDUs), Hydrogen Generation Units (HGUs), Hydro-Cracker unit (HCU), Fluid Catalytic Cracking unit (FCCU), Gasoline De-Sulphuriser (GDS), Continuous Catalytic Reforming unit (CCRU), Isomerisation unit, Delayed Coker Unit (DCU), Diesel Hydro De-sulphurisation unit (DHDS), Diesel Hydro-treating unit (DHDT), Lube Hydro-finishing unit, NMP Extraction unit, Propylene unit and Petrochemical Feedstock unit.
The main products of the refinery are LPG, Gasoline conforming to BS-VI regulations, Superior Kerosene, Aviation Turbine Fuel, High Speed Diesel conforming to BS-VI regulations, Naphtha, Bitumen, Lube Base Stocks, Paraffin Wax, Fuel Oil, Hexane and Petrochemical feed stocks. Manali Refinery plays vital role of a mother industry supplying feedstocks to the neighboring industries located in Manali, Chennai.
2. PROJECT DESCRIPTION
2.1. ABOUT THE PROJECT
CPCL intends to set up a Catalytic Dewaxing Unit (CDWU) at Chennai Refinery to produce Group II/III LOBS. The new CDWU shall be installed with a feed capacity of 270 KTPA to produce Group II/III LOBS. Feedstock for production of Group II/III shall be Unconverted Oil (UCO) from Once-Through Hydrocracker (OHCU).
To produce suitable feedstock for the new CDWU, CPCL intends to modify OHCU to segregate VGO-UCO and HCGO-UCO and marginally increase the OHCU throughput.
2.2. TYPE OF PROJECT
The proposed project falls under Category “A‟ as per the EIA notification dated September 14, 2006 and its amendments. There is no interlinked project. The project can be considered as a Refinery Modernization project with change in Refinery product pattern without any change in Refinery crude throughput.
2.3. PROJECT BENEFITS
The proposed project will increase the indigenous Group II/III LOBS production thereby reducing the import substitution to aid build Atmanirbhar Bharat. The project will bring in diversification of products from fuels to lubricants which are higher priced compared to fuels while simultaneously upgrading Naphtha.
Premium Group II/III LOBS also have reduced ‘Sulphur’ content thus reducing the emission of Sulphur into atmosphere and enhancing the environmental conditions.
2.4. PROJECT LOCATION
The proposed project is planned within the existing facility of CPCL, located at survey numbers 266 / 2, 274, 296, 297, 298 and 299 Manali Village, Ambattur Taluk, Tiruvallur District, and Tamil Nadu.
The site is located about 4 km away from Thiruvottiyur Town and it is in the express highway connecting Thiruvottiyur and Ponneri. The nearest major railway station is Chennai Central. The Project site is given in Figure 2.1. The 10 Km radius map from the project is given in Fig 2.2. Layout of CPCL is enclosed as Annexure-1.
Figure 2-1: Project Site
Figure 2-2: 10 km Radius around project site
2.5. PROCESS DESCIPTION
2.5.1. TECHNOLOGY OF LUBE OIL BASE STOCKS
Lube Oil Base Stocks (LOBS) are generally classified into the following categories as per American Petroleum Institute API.
Table 3.1-API Classification of Lube Oil Base Stocks
Group VI Saturates % Sulphur %
Group I 80 – 120 <90 >0.03
Group II 80 – 120 >90 <0.03 Group III >120 >90 <0.03
API Group I LOBS are produced by conventional solvent-dewaxing of solvent– extracted vacuum gas oils followed by mild hydrofining in batch modes.
API Group II/III LOBS are superior to conventional Group I LOBS due to the following enhanced properties, making them a better base stock to produce premium lubricants with wider spectrum of applications: a) Higher Oxidation Stability & higher Viscosity Index b) Lower Volatility c) Better Cold Flow Properties
API Group II/III LOBS are produced through hydro-processing route in the presence of Hydrodewaxing / Hydrofinishing catalysts.
2.5.2. PROPOSED FACILITIES
Proposed production of API Group II/III LOBS is by Hydrodewaxing and subsequent Hydrofinishing of the heart cut Unconverted Oil (UCO) from Once- Through Hydrocracker Unit (OHCU). Hydrocracking of Vacuum Gas Oil converts the low Viscosity Index (VI) components to high VI, while removing Sulphur, Nitrogen along with Aromatics. The resulting straight chain paraffinic molecules in the UCO are catalytically dewaxed to improve cold flow properties (mainly the pour point) and then catalytically hydrofinished to improve colour and stability.
MODIFICATION OF OHCU
The design capacity of existing OHCU is 2.25 MMTPA. Feed stocks for OHCU are SR-VGO from Crude Units & De-Asphalted Oil from De-Asphalting Unit and HCGO from Delayed Coker Unit. Since UCO produced from HCGO is not a preferred feed source for Group II/III LOBS, UCO from VGO and UCO from HCGO trains will be segregated by installing suitable facilities in the HCGO train. UCO from the VGO train, namely VGO-UCO, will be the proposed feedstock for Group II/III LOBS production.
INSTALLATION OF NEW CDWU
A new Catalytic Dewaxing unit (CDWU) will be installed to produce Group II/III LOBS from VGO-UCO. This will include Catalytic Dewaxing Reactor, Hydrofinishing Reactor and Vacuum column with associated facilities for separating Cat-dewaxed product to the required Group II/III lube cuts.
2.6. PROPOSED UNIT CAPACITY
As a part of Group II/III LOBS Production project, the capacity of the OHCU shall be marginally increased from 2.25 MMTPA to about 2.35 MMTPA. No change is envisaged in the overall refinery throughput. Feed requirement for the new CDWU shall be achieved from product slate adjustment within the OHCU.
Proposed new CDWU shall be of 270 TMTPA (@8000 hour/year operation) designed entirely on neat VGO-UCO from the OHCU, and shall produce about 242,000 TPA of Group II/III LOBS with the following yield pattern:
70N grade: 75,000 TPA 150N grade: 67,000 TPA 500N grade: 100,000 TPA
The capacity proposed herein has been estimated using the demand projections received from IOCL Mktg Group and the yield pattern received from a reputed Licensor. 2.7. AVAILABILITY OF LAND
The layout plan for the new CDWU is tentatively 7000m2. No additional land is required for the modifications in OHCU.
Requisite plot area for the new CDWU is earmarked in the plot of currently- redundant old Sulphur Block Unit.
There is no change in land distribution as all the new equipment will be installed within the existing refinery. The land deed agreement is given in Annexure 2.
2.8. OFFSITE STORAGE & DISPATCH FACILITIES
Finished Group II/III LOBS Products are proposed to be stored in existing redundant tanks. Tankage requirement will be further finalized during preparation of Process Packages, based on the final product mix of LOBS grades.
Finished Group II/III LOBS Products shall be evacuated to the upcoming new IOCL Servo Integrated Lube Terminal at Amullaivoyal, through the LOBS dispatch facilities proposed as part of the IOCL Lube terminal project.
2.9. POWER & UTILITIES
Additional power & utilities that would be required for the project are summarized as below:
Table 3.2-Utility Requirement
S No. Utility UoM Quantity
1 Power MW 2.0
2 Circulating Cooling Water m3/Hr 520
3 MP Steam TPH 6.5
4 LP Steam TPH 2.2
5 Fuel Oil m3/hr Nil
6 Fuel Gas Kg/hr 1430
The above requirement of utilities will be further confirmed during Process design and detailed engineering activities. The incremental utilities required for the project will be met from the existing facilities.
2.10. WATER REQUIREMENT
The water requirement for the refinery is presently met mainly by the treated water from CPCL’s sea water desalination plant and effluent recycling units. A small quantity is received from Chennai Metro Water Corporation (CMWSSB).
Approximate Raw water demand for the new CDWU is 406 KLD. No additional water requirement is envisaged for the revamped OHCU.
Approximate raw water requirement during construction phase of this project is about 30 KLD.
2.11. MANPOWER
Deployment of about 20 nos. of additional manpower is envisaged for the project.
Table 3.3-Manpower Requirement Designation Shift No.
Manager General Shift 1
Panel Engineers Rotating Shift 4
Shift Engineers Rotating Shift 5
Field Operators Rotating Shift 8
Contract Workers General Shift 2
Total Manpower 20
2.12. PROJECT EXECUTION METHODOLOGY & TIME SCHEDULE
The project is proposed to be implemented on Conventional mode through an EPCM Consultant. EPCM Consultant will be lined up for activities starting with DFR until Execution & Commissioning.
The project is envisaged to be mechanically completed within 28 months from the date of Final Investment Approval (DFR Approval) and commissioned within 3 months thereafter.
3. ENVIRONMENTAL POLLUTION CONTROL MEASURES
In order to minimize the impact on the environment, due attention will be given for implementing effective pollution control measures.
The additional effluents from the proposed project can be categorized as follows: a) Liquid effluents from the process Units b) Atmospheric emission from the furnaces c) Hazardous & Solid Waste
3.1. LIQUID WASTE MANAGEMENT
Sour water generation from the proposed facilities is envisaged to be of very small quantity (~5m3/hr) which the existing sour water stripper units of the refinery would be able to absorb.
The incremental refinery effluent discharge during dry weather conditions is expected to be approximately 20m3/hr. The quantity being nominal, it is envisaged that the existing ETPs will be able to handle the additional load.
3.2. ATMOSPHERIC EMISSIONS MANAGEMENT
The air pollutants of concern are oxides of Nitrogen, Sulphur-Dioxide, Carbon Mono-Oxide and particulate matter (PM). The sources of these pollutants among the proposed facilities are the fired heater in the proposed facilities.
NOx Emission: NOx will be controlled by using low NOx burners.
SOx Emission: Only sweetened fuel gas will be fired in the furnaces and
amount of SO2 emission will be minimum (as FG contains < 50 ppmv H2S).
CO Emission: Carbon Mono-Oxide will be controlled by good combustion practices.
3.3. HAZARDOUS AND SOLID WASTE MANAGEMENT
The hazardous wastes generated from CPCL are collected, stored and disposed through authorized disposal cum recycle facilities as per the authorization from PCB.
The hazardous waste generated from the new unit is Spent Catalyst and this will be sent to MoEF&CC approved TSDF facility which is located at Gummudipondi in Tamil Nadu for secured landfill.
The Municipal Solid Waste generated in the existing refinery is collected and transported to recyclers, municipal yards and landfills depending on the type of waste. The details are given below in Table 3.4. Table 3.4-Municipal Solid Waste details Method of Handling S Nature of Quantity Collection & No Solid Waste T/Yr. Treatment Disposal Storage
Paper / Card Manual collection Sales to 1 9 Nil Board & storage in Bins Recyclers Dust Bin Bio Manali 2 475 Manual collection collections Composting Municipal Yard Dry leaves 3 95 Manual collection Nil Landfill Grass Manual collection Sales to 4 Metal scrap 2735 Nil scrap yard Recyclers Manual collection Sales to 5 Wooden scrap 23.8 Nil scrap yard Recyclers
3.4. ENVIRONMENTAL IMPACT ASSESSMENT STUDY
During Environmental Impact Assessment Study and Risk Assessment Study (EIA&RA), all of the above points in 3.1 to 3.3 shall be assessed in depth.
3.5. GREEN BELT DEVELOPMENT
The existing Refinery is having a Greenbelt area which already has been developed and the Green belt area coverage is being progressively increased. The green belt details are as shown in Table 3.5.
Table 3.5- Green belt details Area in Location Remarks Acres EXISTING Existing Green Belt 62 CPCL Polytechnic 25 Already existing Desal Plant 25 Amullaivoyal land 40 Total 152 PROPOSED Area allotted by TNFD and Green Belt Outside CPCL 125 will be developed with the assistance of TNFD. GRAND TOTAL 277
3.6. ENVIRONMENT, SAFETY AND HEALTH MONITORING
CPCL carries out Internal Safety Audit, External Safety audit, Comprehensive Risk Analysis and HAZOP study periodically. The fire protection systems and equipment are provided as per Oil Industry Safety Directorate (OISD) Standards and other relevant guidelines. Adequate no. of Fire Fighting Vehicles & Emergency Rescue Vehicles equipped with rescue apparatus / gadgets, fire water storage, fire water pumps, fire-fighting chemicals meeting the specified norms are available.
Automatic gas detection and alarm systems are installed in refinery units and tank farm for quick detection of hydrocarbon leaks and emergency mitigation. CCTV is installed at critical locations and linked to the Control Rooms for continuous monitoring. For Communication of emergency scenarios, Fire Call telephones, Manual Call Points (MCP), Plant Communication System, UHF handsets and emergency sirens have been provided. CPCL has entered into Mutual Aid Agreement with two of the neighbouring industries. Well documented On-site Emergency Preparedness Plan, offsite Emergency preparedness plan & Disaster Management Plan (ERDMP) are in place.
Following pollution control/ mitigation measures are adopted to minimize the impact of Refinery operation on Environment:
Continuous Operation of 3 numbers of Effluent Treatment plants and reuse of treated effluent. Monitoring of treated effluents from Effluent Treatment Plant for compliance against Minimum National Standard (MINAS), surface water & Ground water
Use of low sulphur fuel & low NOX burners to maintain emissions from heaters at permissible limits Monitoring of Fugitive emissions by using Leak detection & Repair (LDAR) program in the entire plant area for minimizing emission of Hydrocarbons. Continuous improvement in Energy consumption reduction and use of alternate energy like solar & wind power to reduce Carbon-di-Oxide emission. Continuous monitoring of Ambient Air Quality, stack emissions, greenhouse gas emissions are being carried out and control measures are taken to maintain the stack emissions and greenhouse gas emissions within prescribed limits. Continuous operation of VOC collection & removal system with Activated carbon adsorbent to reduce the VOC emissions. Ensuring Hazardous waste management in the refinery as per Hazardous Waste Rules, 2008. Safe disposal of Hazardous waste in segregated & dedicated, Hazardous Waste Treatment Storage & Disposal Facility (HAWTSDF) Monitoring of ground water quality. 4. SITE ANALYSIS
4.1. EXISTING LAND USE PATTERN
The present land use is in industrial zone. The details of sensitive areas from the site boundary are given in Table 4.1. The site does not fall within the CRZ area. The CMDA land use map is enclosed in Annexure 3.
Table 4.1-Water Bodies in the Study Area S No. Name Distance & Direction (km)
1 Surplus canal from Korttalaiyar River 0.13 Km (North)
2 Buckingham canal 0.63 Km (East) 3 Retteri Lake 7.56 Km(South-west) 4 Madhavaram Lake 3.57 Km (West)
5 Kadapakkam Panchayat Lake 4.56 Km (North West)
6 Periyathoppu Lake 3.1 Km (North West)
7 Bay of Bengal 3.13 Km (East)
4.2. CLIMATIC CONDITIONS
The region receives rainfall predominantly during monsoon season with an average annual rainfall of about 1211 mm per year. The South west monsoon season is from July – September and North east monsoon is from October to December. The relative humidity recorded in the district is about 49-79%. Due to its proximity with the Bay of Bengal, the ambient temperature at project site ranges between 25-40°C. The area has a tropical climate with the highest and lowest average temperatures recorded at maximum of 40.3°C and Minimum of 25°C respectively. The metrological observation is as shown in Table 4.2.
Table 4.2- Meteorological Observations S No. Parameter Observation 1 Wind Direction SW-SE-W-WSW 2 Wind Speed Range 2 to 8.8 m/sec 3 Annual Average Rainfall 1211 mm 4 Average Wind Speed 3 m/sec 5 Temperature Range (average) Max. Temp : 40°C /Min. Temp : 25°C 6 Average Temperature 32°C 7 Humidity Range (24hr) 49 to 79 % 8 Cloud cover Partly cloudy 5. CONCLUSION
The proposed project is to produce Group II/III LOBS which will increase indigenous Group II/III LOBS production and reduce import thrust. Further the overall refining margin increases by a shift from fuels to higher prices lubricants. Lower ‘Sulphur’ content in the premium Group II/III LOBS will help in reducing the emissions to atmosphere.
As the proposed project is coming up in the existing refinery, there will not be any change in land use. The existing power & utilities infrastructure will be adequate for the proposed expansion also. The existing water infrastructure will be adequate for the proposed expansion also. The treated water is reused for gardening and process requirements. The marginal impact of proposed project within the existing facility will be fully mitigated with the existing Environment Management Plans (EMP).
E WT-4B N S
W
417
418 WT-4A
421 419
420 EAST GATE WT-4 (CLOSED WITH BLIND WALL) WT-16 ETP-I WT-14 15m Truck Turn
PH
20-D-120 412 413 422 ~ COGEN 611 511 ~ 411 410 409 WT-15 ~ SLUDGE LOGOON
20-D-121 ~ H UNIT ATU/SWS DHDS 2 506 353 612
WT-5 232 233 814 813 WT-13 COKE YARD S R UNIT 401 803 804 ~ DHDS SS-5 ETP-II 60° 15m Truck Turn WT-3 ~ BITUROX 350 308 341 342 ~ 343 626 ~ ~ 607 606 340 344 331 345 309 105 WTP ETP-III 330 307 301 609 (UFRO) REFINERY-III SRU BLOCK 324 310 621 88,89 & 90 NMP 306 302 605 MEROX EXTRACT 325 311
202,203 CONTROL ROOM LEB 323 303 CRU 361 312 322 304 206 MANDATORY TANK FARM HEXANE ~ 360 313 321 305 622 625 OHCU 405 502 320 213 CDU/VDU/NSU 207 316 VBU 201 106 SWS UNIT 204 NHU WT-6 623 624 206 REF-I SRU NEW SEWER BASIN
PDA&PROPANE OM&S CONT. OM&S CONT. OM&S 404 501 ROOM ROOM BULG. ~ WT-12 PUMP HOUSE SS-4
383 384 509 503 2 ~ 9 802 ETP/MTF 12 GATE 8 406 SWS,ARU,SRU H2 UNIT 510 504 208,209,210 205 1 REFINERY-I 801 212 DINING ~ SS-1 WT-10 221 505
ISOMERISATION FCC GDS ~ CONT. ROOM DHDT SRR SUB STATION-2 107 SULPHUR PIT 211 6 212 201 202 D.G SET FCC GDS ~ 7 4 222 ROAD-3L W-1054.00 820 205 204 203 10 ~ ~ 13 5 ~ ~
119 WT-11 18 WT-2 WT-18 16 224 223
19 ~ 613 WT-17 REFINERY-II 17 TTP 508 GATE HGU ~ 214 ä ~ WT-8 WT-9 ~ 507 BS-VI SRU
15
212-D-02 TERTIARY WATER 211-D-01 212-D-01 TREATMENT PLANT
214-D-01 214-D-02 ~ PH 211-D-02 14
DCU BLOCK 86 & 87
WT-19 WT- 20 WT-1
WT-7
CT-IX MANALI THIRUVOTTIYUR HIGH ROAD
WEST GATE-2A
WEST CPCL CPCL OVER ALL PLOT PLAN GATE-2 WEST GATE-1
Annexure 3: CDMA Land Use Map