NEDO-IC-99R46 04
[Feasibility Study on Energy Conservation at Tehran Oil Refinery in Iran]
March 31,2000
New Energy and Industrial Technology
NEDOBIS Development Organization E99007 Entrusted to Idemitsu Kosan Co., Ltd.
020004933-6 Basic Study for Promotion of Joint Operations: [ Feasibility Study on Energy Conservation at Tehran oil refinery in Iran
Entrusted Company: Idemitsu Kosan Co., Ltd. Date of Issue: March 31,2000 Number of Page \ zq Pages Objectives of Study: In December 1997, the Third Conference of the Parties to the Framework Convention on Climate (COP-3) was held in Kyoto. The conference adopted the “Kyoto Protocol ”, which, in order to prevent the global warming due to greenhouse effect gases including carbon dioxide, aim to reduce the average emissions in every country. Japan ’s target of the reduction was decided to be 6%. This study makes it final object to find out effective projects that can be linked with future joint implementation for emission reduction of the greenhouse effect gas. Accordingly, feasibility study was conducted on the energy saving project to improve energy efficiency of oil refining facilities including atmospheric and vacuum distillation units in Tehran Refinery of NIORDC located in Tehran City in Republic of Iran.. [Feasibility Study on EnergyConservation at Tehran Oil Refineryin Iran]
March 31,2000
New Energy and Industrial Technology
Development Organization
Entrusted to Idemitsu Kosan Co., Ltd. PREFACE
ITiis report contains results of the "Basic Research to Promote Joint Implementation: Investigation into Energy Saving Regarding Tehran Oil Refinery" that was entrusted to us by the New Energy and Industrial Technology Development Organization (NEDO) as one of their FY1999 projects.
In December 1997, the 3rd Conference of the Parties to the United Nations Framework Convention on Climate Change (COPS) was held in Kyoto. At the conference, the "Kyoto Protocol" was adopted with the intent of preventing global warming caused by emission of greenhouse gases such as carbon dioxide. The Protocol set emission targets that were the average maximum emissions to be attained by developed nations by "2008 to 2012", which included reduction of minimum 5% below 1990 emissions levels. The reduction target for Japan was set at 6%. Further, the Kyoto Protocol agreed on a mechanism which was to provide target attaining procedures with some flexibility. These procedures include "Joint Implementation (JI)" in that developed countries with emissions targets may get credit towards their targets through project-based emission reductions in other such countries and "Clean Development Mechanism (CDM)" which are practiced jointly by developed and developing countries. Japan, also, will work toward attainment of targets through actively using this mechanism.
This investigation concerns National Iranian Oil Refinery and Distributing Company (NIORDC) of Islamic Republic of Iran and, through a feasibility study of the energy saving project to improve energy efficiency of the atmospheric distillation unit of its Tehran Oil Refinery, the investigation aims to link the results to the future Clean Development Mechanism (CDM).
Based on the above background and objective, an energy saving research was conducted for Tehran Oil Refinery located in the city of Tehran, Islamic Republic of Iran, in cooperation with Tehran Oil Refinery. The details of the research consists of discussions of improvement in energy efficiency for the existing equipment including process heating furnaces and boilers of the atmospheric distillation unit, the vacuum distillation unit, the naphtha reforming unit, etc. More specifically, the discussions mainly concern saving in fuel consumption through control of combustion excess air ratios, heat recovery of flue gas through use of air heaters or waste heat boilers, improvement in heat recovery ratios through increase in the number or change in layout of heat exchangers, etc. It is expected that, based on these discussions, an effective energy projects are practiced and reduction in emission of carbon dioxide as a greenhouse gas is attained in near future at Tehran Oil Refinery. Finally, we would like to express our sincere thanks to all the parties concerned who kindly cooperated for this investigation. We hope that the investigation results given in this report will be able to provide you with some useful information.
March, 2000 Idemitsu Kosan Co., Ltd. Members in charge of Site Survey and Feasibility Study Assignment Company Name Title & Position Project Idemitsu Kosan Mr. Hisayoshi Assistant to GM & Group Leader Manager Co., Ltd. Tanda Overseas Technical Cooperation G Manufacturing Dept. Chief Study Idemitsu Kosan Mr. Shohachi Overseas Technical Cooperation G Member Co., Ltd. Tokuda Manufacturing Dept. Study Idemitsu Kosan Mr. Daisuke Refining Technology Center, Manufacturing Member Co., Ltd. Sumitomo Dept Study Idemitsu Kosan Mr. Motohisa Refining Technology Center, Manufacturing Member Co., Ltd. Morohasi Dept Sub-chief Idemitsu Kosan Mr. Satosi Branch Office of Idemitsu Engineering Co., Study Member Co., Ltd. Nakayama Ltd. Sub-chief Idemitsu Kosan Mr. Yasuhiko Branch Office of Idemitsu Engineering Co., Study Member Co., Ltd. Miura Ltd Study Idemitsu Kosan Mr. Ikuo Branch Office of Idemitsu Engineering Co., Member Co., Ltd Ohkubo Ltd. Study Idemitsu Kosan Mr. Shuhei Branch Office of Idemitsu Engineering Co., Member Co., Ltd. Ono Ltd. Assistant Idemitsu Kosan Mr.Toshihiro Brandi Office of Idemitsu Engineering Co., Study Member Co., Ltd. Yamasaki Ltd Members of Site Survey and Feasibility Study in Iran Company Name Dept. Title & Position NIORDC Mr. Mohammad Zali Refining Dept. Refining Director Head Office NIORDC Mr. Amir Shaghaghi Refinery Development Director Affairs, Head Office NIORDC Mr. Aref Dowlatabadian Refinery Development Senior Engineer Affairs, Head Office Energy Conservation Tehran Oil Mr. R Hashemzadeh Teheran Refinery Managing Director Refining Co. Tehran Oil Mr. Mataji Operation Dept Operation Manager Refining Co. Tehran Oil Mr. Eskandari Engineering Head of Engineering Refining Co. Service Dept. Service Tehran Oil Mr. Seddigi Process Engineering Head of Process Refining Co. Dept Engineering Tehran Oil Mr Aghmashe Combustion & Utility Section Manager Refining Co. Section Tehran Oil Mr. Mousa Yeroshalmi CDU, Vac, Visbreaker, Section Manager Refining Co. LPG Section Tehran Oil Mr. R Tajik Hydrocracking Section Section Manager Refining Co. Tehran Oil Mr. Khooshabi CRU Section Section Manager Refining Co. Tehran Oil Mr. M.Ebrahimzadeh Combustion & Utility Engineer, Heater Refining Co. Section Tehran Oil Mr. B. Khoohgard Combustion & Utility Engineer, Boiler Refining Co. Section Tehran Oil Mr. A Aliyari CDU, Vac, Visbreaker, Engineer, Visbreaker Refining Co. LPG Section Tehran Oil Mr. R Bidar CDU, Vac, Visbreaker, Engineer, Vacuum Unit Refining Co. LPG Section Tehran Oil Mr. Famokhi CDU, Vac, Visbreaker, Engineer, Vacuum Unit Refining Co. LPG Section Tehran Oil Mr. R. Alijani Combustion & Utility Engineer, Utility Refining Co. Section Tehran Oil Mr. M. Tehrani CRU Section Engineer, CRU Refining Co. N-HDS Tehran Oil Mr. Babak Behnezhad CRU Section Engineer, CRU, Refining Co. N-HDS Tehran Oil Mr. S. Hemmati Hydrocracking Section Engineer, H2 Unit, Refining Co. Hydrocracking Tehran Oil Mr. Jafar Foroutan Hydrocracking Section Engineer, H2 Unit Refining Co. Hydrocracking Tehran Oil Mr. Nasser Babai Hydrocracking Section Engineer, H2 Unit Refining Co. Hydrocracking Tehran Oil Mr Hamid Javaheri-RAD Combustion & Utility Engineer, Energy Refining Co. Section Conservation Tehran Oil Mr. A Kazemi Combustion & Utility Engineer, Utility Refining Co. Section Tehran Oil Mr. Ratiezadeh Nasser Combustion & Utility Engineer, Electrical Refining Co. Section Tehran Oil Mr. Massoodi Laboratory Deputy Manager Refining Co. Section Tehran Oil Mr. Mohammad Talooei Laboratory Engineer, Laboratory Refining Co. Section CONTENTS
Basic Research to Promote Joint Implementation Investigation into Energy Saving Regarding Tehran Oil Refinery
Outline 1
CHAPTER 1 Fundamental Matter Relevant to Project ...... 4 1. Current Situations of Partner Country...... 4 1.1 Political/ Economic/ Social Conditions ...... 4 1.2 Eneigy Conditions ...... 13 1.3 Needs for CDM Project ...... 15 2. Needs for Introducing Energy-Saving Technology into Industries Concerned ...... 22 2.1 Current Conditions of Oil Refineries In Iran And Needs for Introduction of Energy- Saving Technology ...... 22 2.2 Progress and Current Situation of Iran's Oil Refining Industry...... 23 2.3 Current Situations and Future Assignments for Oil Refineries of Iran...... 24 3. Significance/ Needs/ Possible Outcome of This Project and Possible Influence over Similar Industries, etc...... 25 3.1 Significance/ Needs/ Possible Outcome of Project ...... 25 3.2 Possible Influence over Similar Industries, etc...... 26
CHAPTER 2 Specific Details of Project Plan...... 28 1. Project Plan...... 28 1.1 Outline of Project Area...... 28 1.2 Description of Project ...... 31 1.3 Greenhouse Gas, etc. Covered by Project ...... 33 2. Outline of Work Site (Target Corporation) ...... 34 2.1 Interest Expressed by Work Site (Taiget Corporation) ...... 34 2.2 Outline of Work Site Equipments (Target Corporation) ...... 35 2.3 Competence of the other party (enterprise) to accomplish project ...... 50 2.4 Contents of project and specifications of modification work of the units at the site...... 52 2.5 Scope of Fund/ Equipment/ Service, etc. To be Bom by Each Party in Implementation of This Project ...... 90 2.6 Prerequisites/ Problems, etc. Concerning Implementation of This Project ...... 91 2.7 Implementation Schedule of Project ...... 92 3. Implementation of Fund Plan...... 92 3.1 Funding for Project Implementation ...... 92 3.2 Funding Prospect...... 92 4 Matters Concerning CDM Conditions ...... 93 4.1 Adjustments to be Made between both Parties toward Realization of Joint Implementation, Concerning Project Implementation Conditions and Scope of Works of Each Party, etc...... 93 4.2 Possibility of This Project to be Agreed As COM...... 93
CHAPTER 3 Effect of Project ...... 95 1. Effect of Saving Energy ...... 95 1.1 Technical background to be caused effect of saving energy ...... 95 1.2 Baseline as basis for calculation of energy saving effect...... 95 1.3 Clarified quantity, period and accumulated volume brought by effect of energy saving ...... 98 1.4 How to Accurately Check Reduction of Greenhouse Effect Gas (Monitoring Method) ...... 102 2. Effect of Reduction of Greenhouse Gas...... 103 2.1 Technical background to be caused effect of reduction of Greenhouse Gas...... 103 2.2 Baseline as basis for calculation of effectiveness of greenhouse gas reduction...... 103 2.3 Concrete quantity, period and accumulated volume brought by effect of reduction of greenhouse gas ...... 105 2.4 How to Accurately Check Reduction of Greenhouse Effect Gas (Monitoring Method) ...... 107 3. Possible Influences over Productivity...... 108
CHAPTER 4 Profitability ...... 110 1. Effect of Economic Return for investment...... 110 1.1 Amount of investment and return for eneigy saving modification ...... 110 1.2 Investment in modifications and payout year for energy saving in each unit...... 112 2. Effectiveness of project versus Modification Cost ...... 113 2.1 Effect of eneigy saving versus Investment...... 113 2.2 Effect of Carbon Dioxide Reduction in terms of Investment...... 116
CHAPTER 5 Discussion of Possible Pervasive Effect...... 120 1. Pervasive Effect Expected in Target Country Brought about by Technologies Introduced through Project ...... 120 2. Effectiveness in View of Possible Pervasion ...... 121 2.1 Energy-Saving Effect...... 121 2.2 Reduction of Greenhouse Effect Gas...... 121
CHAPTERS Other Influences...... 123 1. Influences over Other Environmental Aspects...... 123 2. Influences over Economical Aspects...... 123 3. Influences over Social Aspects...... 123
Conclusion 124 OUTLINE
A basic research was conducted to discuss energy saving measures concerning oil refining equipment of Tehran Oil Refinery of Islamic Republic of Iran as a part of NEDO's FY1999 basic researches to promote joint implementation aiming to prevent global warming by emission of greenhouse gases such as carbon dioxide.
The investigation specifically concerned 9 units in Line 1 which were constructed in 1968 at Tehran Oil Refinery now consisting of two lines. The units included a 125,000BD atmospheric distillation unit, a 48,000BD vacuum distillation unit, a 21,000BD visbreaker unit, a 16,800BD naphtha hydro-desulfurization unit, a naphtha reforming unit, a 20,000BD vacuum gas oil hydro-cracking unit, a 32MMSCFD hydrogen production unit, 320,000LB/H (x 4) boilers, and off-site equipment including, also, a 1,675BD asphalt production unit. The major items concerning improvement/modification for energy saving operation commonly applicable to these units are as follows. Further, possible changes in operating conditions for attainment of energy saving of the units which use catalysts are suggested as future assignments. 1. To improve operation/modification of equipment to control excess air ratios of heating furnaces (02% of flue gas). 2. To use air heaters or waste heat boilers for heat recovery of heating furnace flue gas. 3. To improve stock oil preheating through increase in the number/change in layout of heat exchangers, aiming to increase heat recovery amount. 4. To increase heat recovery, into stock oil, of heat released in air coolers such as an intermediate reflux. 5. To reduce pressure of distillation columns such as a stripper and to reduce boiler calorie through reflux control. A field survey consisted of collection/measurement of operating data, confirmation of operating conditions, collection of the specifications, etc. of the units concerned, based on which a feasibility study regarding energy saving was conducted. The modification policy for energy saving was decided to be based on improvement in energy efficiency through the best use of existing units rather than based on partial replacement of those units. As a result of the feasibility study for energy saving,returns on investment when displayedin the number of simple return years are approximately 1 year for flue gas 02 control and 3-5 years for other major modifications. The estimated total investment cost concerning the items which require further discussions amounts to approximately ¥1,000-1,500 million and the annual retrenchment in fuel cost amounts to about ¥600-800 million. Regarding emission of carbon dioxide from the units concerned, the amount before practice of this project amounts to about 1,380 thousand tons. After practice of this project, however, approximately 260 thousand tons (19%) of carbon dioxide is to be reduced.
— 1 — Toward realization of the energy saving projects, while own funds are used for modifications in small- scale investment, application of Japanese financial assistance scheme as well as technical assistance is hoped for middle-tolarge scale modifications.
In this regard, our company assumes that there is still some difficulty to arrange Japanese financial assistance for Iran, however, we sincerely would like to endevour our efforts to realize the Energy Conservation Project based on this site survey and study as soon as possible.
2- CHAPTER 1 FUNDAMENTAL MATTER RELEVANT to PROJECT
— 3 — CHAPTER 1 Fundamental Matter Relevant to Project
1. Current Situations of Partner Country This chapter gives an outline of current political/economic/sodal conditions of the Islamic Republic of Iran, the partner country with which an investigation is to be jointly conducted this time. It also describes an overview of the country's energy conditions as well as policies/strategies concerning the joint implementation.
1.1 Political/ Economic/ Social Conditions
Overview of Country Official Name of Country Islamic Republic of Iran Capital Tehran Area 1,648,000 Sq Km (4.5 times as large as Japan) Population 61,900 thousand (1998) Ethnic Makeup Iranians Major Cities and Populations Tehran (6,760 thousand), Meshed (1,890 thousand), Esfahan (1,270 thousand), Tabliz (l,190thousand), Shiraz (1,050 thousand) Languages Persian (official lang.), Kurdish, and others Religions Mostly Shi'a Muslim. The others include Sunni, etc. Political System The role of Supreme Leader exists as the nation's highest authority The president is elected every four years by the general public through direct election. The president, as the head of the administrative, appoints ministers. The legislature is based on the Islamic parliament of unicameral system which consists of 270 members. All laws are subject to examination to confirm observance of the Islamic law and constitution.
4 1.1.1 Political Conditions The country, after breaking in diplomatic relations with the U.S. at the time of Iranian Revolution of 1979, Khomeini and, then, his successor Khamenei took the position of Supreme Leader to overcome crises caused by the Iran-Iraq war which had drastically impoverished the country. Iran, during the Gulf War that broke up during the time of Rafsanjani presidency, played hard-nosed role in diplomacy, winning a favorable international reputation. However, economic expansion which was undertaken at the beginning of 1990's left a large bill to be paid which compelled the nation to take retrenchment policies. Meanwhile, social evolution of the younger generation which had started after the Revolution showed a rapid increase in the middle of 1990's and after, often causing problematic political measures.
In the presidential election of 1997, Khatami (moderate leftist/coalition of practical-line groups) hammered out policy changeover into liberal direction and gain an overwhelming victory based on support of younger generations and the majority of people. The Khatami group further achieved a great victory in the local elections of February 1999 that were the first of the kind since the Revolution, thus succeeding to reconfirm strong support from the general public. This indicates development of a new tide, demanding for liberated and democratic policies.
In opposition to this movement, the conservative wing (Supreme Leader Kamenei and others) which intends to maintain traditional policies has been emphasizing traditional Islamic values and has activated movements toward rollback of initiative by squeezing, based on its judicatory power, excessive free speeches among the liberals, by denouncing influential parliament members of the Khatami group, etc. Hostility between the both groups has become enhanced.
Toward the outside world, on the other hand, President Khatami's policy lines which focus on "dialogue with different civilizations" and "detente" have appeared to be very effective, resulting in rapid improvement in foreign relations with European and Middle Eastern countries.
During the military tension in August 1998 which broke out between Afghanistan and Taliban, President Khatami gave a speech at the the United Nations General Assembly which called for solution through diplomatic efforts based on international understanding, thus displaying a matured way of dealing with the problem. The U.S. has begun to show positive attitude toward improved relations by responding to propositions concerning exchanges in civilian/academic levels. Further, President Clinton announced in April 1999 to exclude the exports of agricultural products and pharmaceuticals
5- from application of the economic sanctions against Iran. The country, also serving as the presidency of the World Muslim Congress, has been playing an active role by taking the leadership among Islamic nations. It has been trying to improve relations with Saudi Arabia and emphasizing international partnership.
Under such circumstances, the parliamentary election of February 2000 consecutively brought about a great victory of the reformist/radical faction of the Khatami group, etc., winning once again people's support regarding the policy changeover of the recent years.
It is expected from now on that President Khatami's system is even more strengthened through proposal of new plans. The important issue, however, is how well it can absorb energy of young people who hold the greater part of the nation ’s population and make them compromise with the religious leaders who stick to the nation^ political system that defends unity of religion and politics. The country is now entering the stage where efficacy of those measures are tested in practice.
-6- 1.1.2 Economic Conditions (1) Overall Conditions The Central Bank, in order to clear off the debt which was created during the rapid economic expansion undertaken at the beginning of 1990's, took a strict foreign exchange control system. The system, even after completion of repayment, is still maintained today. During that period, the Khatami administration, in order to overcome intensified inflation and unemployment problems of Iranian economy, introduced industrial policies such as buy-back system aiming to facilitate inflow of foreign capitals. As a result of this policy, foreign investment has been accelerated starting in the latter half of 1990 ’s especially in the field of oil development and petrochemical industry.
In November 1999, the Iranian Parliament approved the framework of the Third Five Year Development Plan. The plan is featured by a series of economic targets including economic growth equal to 6% per annum, creation of new employment for 3.8 million people in five years, an inflation rate of 15.9% or below, lowering of unemployment from 105% to 125%, etc. The above high-level targets are basically intended to be attained through various market- liberalizing policies which include, for example, economic structural reform, partial privatization of major industries, curtailment in subsidies, and relaxation of terms of trade.
The curtailment in subsidies on fuels and foods, however, was later on rejected following a discussion for fear of a possible rash of complaints from people that might be brought about by resultant economic difficulties. Privatization of state enterprises, also, was rejected by the Constitution Protection Council on the ground of its nonobservance of the constitution. A series of such corrections have already raised some doubt as to feasibility of this Third Five Year Development Plan. The world is now watching the course of further discussions at the Parliament, as it faces the election in February.
(2) National Budget FY1998 revenue and expenditure are as follows:
Revenue : 537,617,000 million rials Expenditure : 714,738,000 million rials Balance : —177,121,000 million rials (deficit)
-7- (3 ) Gross Domestic Product FY1999 GDP showed a rise of 18% over the preceding year
GDP : 327,596,000 million rials GDP per capita : 5.3 million rials/person
(4) Foreign Trade Since the start of the Khatami administration in 1997, relations with European and Arab states have been greatly improved. Especially, France and England among other European forces have shown noticeable expansion in trade with the country. During President Khatami’s visit to France in last October, the two countries readied a large-scale agreement on the business concerning purchase of air-buses and locomotives. In addition to the above, Iran has increased import of wheat to compensate extensive damages in its agricultural production caused by the drought and French Government is discussing to raise the upper limit in the line guide for trade insurance. British Government, also in hope of expanding trade with Iran, is discussing to loosen trade insurance regulations and is moving toward settlement of the debt carried over from the pre-revolution times. The U.S. Government lift the ban and started to export foods/pharmaceuticals/medical equipment manufactured in the U.S. to Iran, Libya, and Sudan. It issued a permission in November which allowed U.S. exporters to carry out transactions directly with the banks in these three countries. However, any public financing of import payment to Iran is not yet scheduled and is left for future assignment. 1) Foreign Trade Balance FY1998 trade balance has marked an import surplus because of influence of low price of crude oil.
[Table 1. Import/Export Balance] (US$100million) 1995 19% 1997 1998 Export amount 184 224 184 130 Import amount 128 150 141 139 Balance 56 74 43 -9 Source: "BULLETIN Volume 97", Central Bank of Iran
2) Major Export Items (FY1998)
Fuel energy (oil, etc.) : 76% Others (carpets, pistachio, etc.) : 24%
(5) Gold Reserve, etc. The gold reserve as of the end of FY1998 was 19,400 billion rials, showing a decrease of 43% against that as of the end of FY1996. Further, the external debt for the fiscal year was equal to US$141 million which was a decrease of 16% against the level of 19%.
(6) Financial/ Exchange Systems
1) Financial System Although the nation's financial sector has substantially been monopolized by the government, the Parliament recently decided on semi-privatizing state banks (maximum by 49%) and establishing insurance companies operated by private/cooperative associations based on the policies to shift the financial sector into a competitive market as stated in the Third Five Year Development Plan. The Constitution Protection Council, however, judged privatization of major economic sectors not conforming to the laws and refer the case back to the Parliament. Privatization issue has thus encountered with great difficulties.
— g— 2) Stock Market The stock market, after a decline that started in 1997, began to take a recovery turn in the latter half of 1999. Favorable factors behind this are said to include a rise in oil price and resultant prospective recovery of business as well as prospective foreign investment which has taken on a realizable shape by President Khatami's visit to Europe. On the other hand, to overcome distrustfullness toward TSE regarding speculative transactions and insider trading, introduction of new regulations are awaited to strengthen control over such transactions and to increase transparency of transactions.
3) Exchange Market The Islamic Republic of Iran adopts the multiple exchange rate structure which applies to oil and non-oil export/import as follows:
Oil-notional export rate : Fixed (1,750 rials/US$) —> Applied to imports of essential goods Export rate : Fixed (3,000 rials/US$) —> Applied to imports of 30 designated items Commercial bank rate : Floating (approx. 8,000 rials/US$)
—10“ 1.1.3 Social Conditions Social conditions of Iran is subject to changes under influence of not only international price of oil on which the majority of its national revenue depends but also government subsidies regarding food/oil products which are used as basic political/economic strategies. On the other hand, unlike other Persian Gulf countries, it is given blessing of nature by having four distinctive seasons and vast land that extends over from the Caspian Sea on the north and the Persian Gulf on the south. In the daily living for people, vegetables and fruits are seen at shop all year round, staple foods such as nan (a kind of bread) and rice are freely purchasable, and food rationing exists for needy people. Peopled living can be said relatively stable.
(1) Civil Life/ Wage Level Under influence of domestic inflation caused by devaluation of rials started in 1990!s and influence of delay in employment creation for younger generations, a rate of consumer price increase has exceeded that of actual wage increase, gradually developing feeling of poverty among the general public.
1) Minimum Wage Increase Rate:
2) Consumer Price Index Increase Rate : 215% (simple average for FY1995-1998) [Details] Goods 26.4% Services 31.6%
3) Wholesale Price Index Increase Rate 26.7% (simple average for FY1995-1998) [Details] Domestically manufactured products 26.5% Exported goods 17.6% Imported goods 28.7%
-11- 4) Manufacturer’s Price Index Increase Rate : 17.3% (FY1998)
[Details] Agriculture 21.0% Industry 13.4% Mining 132% Electricity/gasAvater 32.1% Service 21.9%
(2) Labor Market
1) Active population as of the end of 1992 amounted to 14,740 thousand which equaled 26% of the total population. The employed population out of this amounted to 13,100 thousand. Ratios between administrators/employment income earners and individual proprietors/family employees are approximately fifty-fifty.
2) Although the unemployment rate for the same year was 12.5%, the actual rate could exceed this level by far. This is because actual employment rates in agricultural areas are hard to grasp and state of employment/unemployment is ambiguous especially for family-operated businesses and small scale offices in large cities.
(3) Population Dynamics
1) Population Growth Rate The population growth rate for five years from 1991 to 1996 was equal to 1.47% which showed a decrease of 2.46% against the rate for the preceding period (1986/1991).
2) Tendency Considering that the population of 25 years old and under amounts to 60% of the total population, this tendency of decreases in growth rates is expected to continue in future.
12- 1.2 Energy Conditions 1.2.1 General Conditions of Energy Energy supply in Iran depends on oil and natural gas. Production ratios for 1994 were 83% for oil and 17% for natural gas. Power fuels for electricity include oil, natural gas, and water power in this order whose shares were 70% for oil, 20% for natural gas and 10% for water power in 1994. This was followed, however, by a plan to expand use of natural gas, based on which the number of power stations was increased, resulting in a shift in the above shares into 66% for oil, 27% for natural gas and 7% for water power in 1998. Although oil will remain as the main energy source in future, the promotion policy regarding use of natural gas will also be held effective.
1.2.2 Production and Consumption of Oil Known amount of deposits of oil in Iran is estimated to be approximately 93 billion barrels. When calculated based on the current OPEC's production volume that is 3.36 million B/D, reserve production ratio will be equal to about 70 years. The crude oil production which had been set at 3.6 million B/D before as in Table 2 was changed into the current volume in April 1999 according to the OPEC's agreement on cutback production. Crude oil supplied for domestic refining amounts to 1.1 million- 1.3 million B/D. In view of the country's population composition and increase rate, domestic demands for products are expected to continuously grow. The demand composition, however, mostly consists of white oil, whereas black oil is used for export. Therefore, the future supply system will focus not on reinforcement of refining capacity, but on regulation of demand and supply, where, in the meantime, the amount of oil exported will remain at the same level.
[Table 2. Production of Crude Oil and Exported Amount] (thousand B/D) 1995 1996 1997 1998 Production volume 3,600 3,610 3,623 3,666 Exported amount 2,290 2^51 2,496 2J33 Domestic refining, etc. 1,310 1,061 1,127 1,333 Source: Ministry of Petroleum of Iran
13- 1.2.3 Production and Consumption of Natural Gas Known amount of deposits of oil in Iran is estimated to be approximately 21,000billion cubic meters. When calculated based on the current production volume that is approximately 70 billion cubic meters, reserve production ratio will be equal to about 300 years. Various projects have been put into practice to utilize this rich resource of natural gas including a (IGAT) plan to build pipelines to Turkey and Europe, LNG plan for East Asia, etc. Further, it is recently discussed to try to expand its domestic consumption and use as petrochemical feedstock, to supply it via pipelines to neighboring countries, etc. The domestic consumption between 1994 and 1997, as shown in Table 3, has increased to 108% and high growth is expected to continue in future.
[Table 3 Production and Consumption of Natural Gas] (100 million cubic meters) 1994 1995 1996 1997 Production volume 549 594 642 695 Domestic consumption 353 389 424 476 Electricity, etc. 195 205 218 219 Source: Ministry of Petroleum of Iran
1.2.4 Electric Power Production
[Table 4 Fuel source and Production of Electric Power] (Million kwh) 1995 1996 1997 1998 Petroleum 56,625 62,974 66,103 64,362 Natural gas 16,145 15,475 19,299 26,487 Waterpower 7,275 7,376 6,908 7,014 Diesel 4,925 5,026 5,434 5,550 Total electric power generation 84,969 85,825 97,944 103,413 Source: Ministry of Energy
—14 — 1.3 Needs for CDM Project Needs for CDM projects for domestic industries especially concerning energy consumption related to oil/natural gas are considered very high in Iran. Iran-Iraq War which lasted 10 years following the Iranian Revolution of 1979 impoverished the Nation^ domestic economy, totally stagnating its industrial development. The breakup of diplomatic relations with the U.S. after the Iranian Revolution has closed the door to advanced technologies and licenses being introduced from the West. As the income brought about from export of large quantities of oil produced in the country is spent for government subsidies to afford domestic supply of foods and petrochemical products, state-owned oil refineries, power stations, and other plants have been left out behind in respect of efficiency promotion and modernization.
The energy-saving investigation of this time has revealed scarcity of technical/economical capacity enough to remodel and modernize oil refineries for energy efficiency and quality improvement. There was even a case in which a furnace designed and built in 1968 without any heat recovery device was still in operation in the original state only with a slight remodeling for capacity increase.
In spite of improved diplomatic relations in recent years with other nations, the record-low crude oil prices in 1999 and 1999 have seriously aggravated the nation's economy, once again putting the brake on modernization of the domestic industries.
On the other hand, due to increased demands for gasoline/light oil, needs for corrective measures for serious environmental pollution especially in laige cities, and other reasons, it has become an urgent issue to improve productivity of oil refineries/plants and their energy consumption efficiencies. Based on the nation^ economic environments, overall conditions of the nation, and our perception about the current state obtained from the field investigation, we consider that needs for a CDM project to increase efficiency and remodel oil refineries in Iran is of great importance.
~ 15 1.3.1 Policies Taken by Government of Partner Country Against Global Wanning Problem The oil producing countries have raised their objections against the Kyoto Mechanisms in COPS as they did also in the preceding two times, COPS and 4. The oil producing countries worrying about possible drop in oil sales due to energy saving and the resultant economic distress have insisted that all the disadvantages they may have to sustain should be compensated and have especially objected against immediate enforcement of COM. We like to presume the policies that the partner country takes toward prevention of global warming through reviewing outline of COP'S circumstances and comments of oil producing countries and especially of Iran during COP5.
(1) Circumstances of COP and Oil Producing Countries At the 3rd Conference of the Parties to the United Nations Framework Convention on Climate Change (COP3: December 1998/ Kyoto), the mechanism to provide flexibility in attainment of specific target figures (Kyoto Mechanisms) which included "Joint Implementation", "Clean Development Mechanism", and "Emission Trading" was approved. The Conference, however, could not specify any detailed definitions and procedures. The 4th Conference of the Parties (COP4: November 1998/ Buenos Aires), in relation to this, prepared the "Buenos Aires Plan of Action" which was an action plan to state targets and specific measures within the set time frame. While the Plan stated that basic rules, procedures, etc. of the Kyoto Mechanism were to be decided at COPS, it set the detailed working plans concerning funds mechanism, technology transfer, etc. The 5th Conference of the Parties (COP5) was held from October 25 to November 5,1999 in Bonn, Germany. COPS focused on preparation of working plans for COPS where specific moves toward settlement of technical/political issues were not made. The Conference, however, succeeded to activate moves toward enforcement of the Kyoto Protocol by approving that the 6th Conference of the Parties (COPS) was to be held in Hague, Netherlands in November, 2000 and that Germany's Prime Minister Schroeder emphasized importance of effectuation of the Kyoto Protocol by the year of Rio +10 (2002). In relation to this (Iran) investigation, it is noted that continuity of the pilot phase of Joint Implementation (All) at the end of 1999 and after has been agreed on. Schedules/contents for COP3 (Kyoto) to COPS (Hague) are mentioned as follows for your reference:
16- December, 1997: 3rd Conference of the Parties (Kyoto) Numerical targets and political measures for control for 2000 and after were adopted. November, 1998 : 4th Conference of the Parties (Buenos Aires) An action plan to state specific measures was prepared. November, 1999 : 5th Conference of the Parties (Bonn) Necessity to enforce the Kyoto Protocol was recognized and further efforts toward COP6 were agreed. 12th Session of SBSTA/ 12th Session of SBI (scheduled in June, 2000) 13th Session of SBSTA/ 13th Session of SBI (scheduled in September, 2000) 14th Session of SBSTA/ 14th Session of SBI (scheduled in November, 2000)
Iran, falling into the G77/China under non-Annex B (about 132 nations) as one of oil producing countries who object progress of the discussion, motioned at COPS against retrospective application of credits to AU projects. It demands that the pilot phase be continued without any preconditions and credits. This indicates Iran's hope for development of AU pilot phases within its own country. However, as it does not approve credit application, financing of the necessary cost has to be discussed separately. Concerning Iran, therefore, AU pilot phase projects up to effectuation of the Kyoto Protocol is now foreseeable.
(2) Outline of COPS The 5th Conference of the Parties (COPS) to the United Nations Framework Convention on Climate change was held in Bonn, Germany for two weeks from October 25 to November 5, 1999. As it had been already decided in the preceding COP4 that administrative guidelines of the Protocol be completed at COP6, COPS focused on exchange of opinions among participating nations and preparation of working plans, where "negotiations" concerning technical as well as political issues were hardly carried out. The major working plans thus prepared mainly concerned a compliance system for the Kyoto Mechanism, establishment of workshops to deal with technical issues in various fields such as capacity building, and holding of Intersessional Meetings to facilitate negotiations. In addition to the above, it was decided that two meetings of the Convention's subsidiary bodies be held before the time of COPS and the chairman of COP5 was asked to take all available means to facilitate negotiations and to improve work environments toward final approval at COPS. On the other hand, the issues having large discrepancies in opinions among nations (for example, substitutability/ complementary relation among mechanisms) are still left unsettled and observance of the final decisions at COPS was not be made obligatory except for the issue of the compliance system. Further, there was no discussion regarding participation of developing countries, which was to be
17 postponed to COP6.
(3) (3) Possible issuance Issuance of Kyoto protocol Protocol Responding to the address made by Germany's Prime Minister Schroeder, the ministers of EU nations and Japan emphasized necessity of effectuation of the Protocol in 2002 and political incentives toward effectuation of the Protocol seemed to have increased especially among developed nations. However, the U.S., the key figure for the effectuation, has not changed its attitude by insisting that participation of developing countries and liberalization of use of the mechanism should be the preconditions for ratification. The fact that COP6 is scheduled immediately after the Presidential Election may even influence adversely on ratification.
(4) Regrouping of G77 + China Disagreement has arisen among developing nations between AOSIS and oil producing countries over the issue of the package approach in which adaptive measures for countries susceptive to climatic changes and discussions of compensation given to oil producing countries under influence of reduction in oil consumption are carried out at the same time. In relation to this, AOSIS also expressed opposition to the issue regarding compensation for oil producing countries.
-18 - G77+ Overall Participation Adverse influence & adaptive CDM Major targets in FCCC China discussion issue measures Priority given to influence of Implementation of adaptive Opposing AOSIS — Against climatic changes. Opposing measures. Early enforcement of "sinks" compensation. reduction measures. Oil Acquisition of compensation. Insisting on package producing Negative Against — Postponement of reduction approach/compensation. countries measures. Postponement of participation of China Negative Against — — developing countries. Priority given to adaptive Supporting Implementation of adaptive Africa — Against measures for LDC. "sinks" measures for LDC Central & Slightly Supporting Acquisition of funds. Facilitating South ----- — — softened "sinks" technology transfer. America
(5) CDM Although "Financial Additionality" in CDM has not been clearly stated in the Kyoto Protocol, G77+China insists that CDM based on the conventional relief fund does not meet necessary conditions of "Environmental Additionality", which, therefore, does not approve ODA/GEF funds being used in CDM. Meanwhile, Japan insists that ODA should be used in CDM. Although there was hardly any discussion concerning setting of a base line as a technical issue in CDM, all the participating nations agreed that terms for continuous practice be authorized by each receiving country.
(6) Compliance System The compliance system needs to include two functions. One is to facilitate observance of the system by supporting the participant countries not to cause unobservance. The other is to judge unobservance and implement the necessary measures on occurrence of it The arguments are divided especially on the latter. As the unobservance measure, Japan, Samoa, China, New Zealand, etc. proposed suspension of eligibility to Kyoto Mechanism. The U.S., opposing this, proposed payment of penalty (interest). Further, Australia proposed menu system, while Switzerland, Iran, and Brazil insists on necessity of fine.
(7) Aij (Activities Implemented Jointly) Because of postponement of decision concerning the pilot phase that should have been made in COPS, uncertainty of the AD projects have been even more increased. Further, no clear conclusion could be drawn as to whether or not the AD projects would be able to obtain credits as CDM/JI in future.
[End of translation of "Discussions and Future Assignments in the Fifth Conference of the Parties of the United Nations Framework Convention on Climate Change (COPS)" November 1999, Report prepared by Takahiro Fukunishi, Climate Change Project, Institute for Global Environmental Strategies]
-19 - 1.3.2 Current Situation of Greenhouse Gas Emission In Iran Iran is OPEC's second largest oil producer and accounts for roughly 5% of global oil output. The country holds 9% of the world's oil reserves and 15% of gas reserves. Additionally, Iran is a focal point for regional security issues. Outline of the nation's economic background as well as environment are mentioned below:
(1) Outline of Economic Background Iran's economy is facing acute problems, exacerbated by record-low oil prices during 1998 and early 1999. For Fiscal Year (FY)1998, which ended on March 20,1999, Iran's real GDP is expected to fall by 1%. Particularly during the second half of 1998, numerous factories throughout Iran were shut down, and industrial investment fell by 40%. Iran's inflation rate in 1999 is expected to remain approximately steady at 14.2%. Unemployment, which is officially estimated at 9%, is probably closer to 20%. In September 1998, Iran halted payments of its $5.9 billion debt to Germany, Italy and Japan. Iran is negotiating for an extension on repayment, but it is possible that a formal default on the loans may occur at some point. Although influences of the steep rise in crude oil price which took place in the third quarter of FY1999 has not been confirmed in terms of economic indicator figures, overall impression of the city of Tehran seems to have improved greatly in the past six months.
20- (2) Outline of Environmental Conditions Vice President for Environmental Protection: Dr. Mrs. Masumeh Ebtekar
• Total Energy Consumption (1997E): 4.2 quadrillion Btu/(1.1% of world total energy consumption) • Energy-Related Carbon Emission (1997E): 732 million metric tons of carbon/(l 2% of world carbon emission) • Per Capita Energy Consumption (1997E): 67.9 million Btu/ (vs U.S. value of 351.9 million Btu) • Per Capita Carbon Emission (1997E): 12 metric tons of carbon (vs U.S. value of 5.6 metric tons of carbon) • Energy Intensity (1997E): 25,900 Btu/$1997 (vs U.S. value of 11,600 Btu/$1997) • Carbon Intensity (1997E): 0.45 metric tons of carbon/thousand $1997(vs U.S. value of 0.18 metric tons/thousand $1997) • Sectoral Share of Energy Consumption (1996E): Industrial (425%), Residential (26.2%), Transportation (22.1%), Commercial (9.2%) • Sectoral Share of Carbon Emissions (1996E): Industrial (39.1%), Residential (27.3%), Transportation (24.1%), Commercial (95%) • Fuel Share of Energy Consumption (1997E): Oil (56.8%), Natural Gas (40.4%), Coal (1.0%) " Fuel Share of Carbon Emissions (1997E): Oil (58.6%), Natural Gas (40.0%), Coal (1.4%) • Renewable Energy Consumption (1996E): 100 trillion Btu • Number of People per Motor Vehicle (1997): 24.4 (vs U.S. value of 1.3) • Status in Climate Change Negotiations: Non-Annex I country under the United Nations Framework Convetion on Climate Change (ratified July 18th, 1996). Not a signatory to the Kyoto Protocol. • Major Environmental Issues: Air pollution, especially in urban areas, from vehicle emissions, refinery operations, and industrial effluents; deforestation; overgrazing; desertification; oil pollution in the Persian Gulf; inadequate supplies of potable water.
Source: "Energy Information Administration" Nov. 29,1999
-21 2. Needs for Introducing Energy-Saving Technology into Industries Concerned
2.1 Current Conditions of Oil Refineries In Iran And Needs for Introduction of Energy-Saving Technology The Iranian Government, in late 1990's, has passed a parliamentary resolution to enact a law concerning energy-saving promotion as a part of domestic measures against energy problems. The law concerns factories/plants with energy consumption rates of more than the specified volume and imposes severe penalties if their energy-saving measures are found inappropriate. Oil refineries are one of the major targets under the law. NIORDC, quickly responding to the government's policy, established Energy-Saving Committees both in the head office and each of its oil refineries to discuss specific energy-saving measures. However, because of delay in developing energy-saving technology and current severe economic environments without sufficient budgets, it will still take some more time until the refineries/plants, by themselves, can deal with the problems.
Iran, today, has nine oil refineries among which two large-scale refineries were completed after 1990 to meet increasing domestic demands, while the rest were built before or during the Iranian Revolution. Due to the economic adversity which followed the Revolution, the country, other than building the two refineries, has not had capacity enough to work toward improved efficiency and modernization of the existing oil refineries.
Except those two which were built in recent years, all the oil refineries in Iran were designed by U.S. engineering companies, therefore, being based on highly rational concepts regarding construction and equipment flow. On the other hand, however, probably because of such cheap fuel cost at the time of construction that was almost negligible compared with the construction cost for a major oil producing country like Iran, some refineries were not equipped with any waste heat recovery system or not heat recovery type by having many emission-type air coolers. These situations, in view of return on energy-saving investment, indicate a high potential and needs for energy-saving of Iranis oil refineries and urgent implementation of energy-saving measures is thus required.
The oil refineries in Iran are all located adjacent to large cities, bringing about serious environmental problems. Air pollution especially in wintertime is quite severe against which some fundamental measures are urgently required. In operation of oil refineries in general, improvements in technologies regarding production, quality, energy-saving, and environmental protection can not each independently exist but are mutually combined toward efficiency improvement and modernization of the refineries. In this regard, energy-saving technologies which can simultaneously serve also as environmental measures are strongly requested.
22- 2.2 Progress and Current Situation of Iran's Oil Refining Industry Oil refineries of Iran are largely divided into the following four according to history of their establishment Category 1: Abadan Refinery (1913) having the longest history and being the largest in size which was constructed by BP for the purpose of product export. Category 2: Tehran Refinery (1968) and Shiraz Refinery (1973) built for domestic use to satisfy increases in population and oil demands brought about by rapid growth (late in 1960's ~ early in 1970's) brought about by Shah's modernization. Category 3: Tabriz Refinery (1978) and Isfahan Refinery (1980) planned in the same line with Category 2 and established by NIOC by itself. Category 4: State-of-the-art Arak Refinery (1993) and Bandar Abbas Refinery (1998) constructed by Japanese enterprises under the First Five Year Development Plan after the Iran-Iraq War.
The refineries under Categories 2 and 3 have already been designed to cater for possible expansion in future. Therefore, we infer that expansion of 20%~30% to the nominal capacity could rather easily be achieved through small-scale modifications. Changes in capacity are mentioned below:
1986 1989 1992 1993 1995 200x Iran Refinery result result result result result Plan Abadan (1913) 0 117 297 297 320 375 Tehran (1968) 220 220 220 212 225 228 Mahan (1980) 240 234 243 265 281 281 Tabriz (1978) 80 99 99 112 112 120 Shiraz (1973) 40 40 40 40 40 60 Kermanshah (1971) 15 27 27 27 27 27 Lavan (1968) 20 20 20 20 20 25 Arak (1993) — — — 150 150 150 Bandar Abbas (1998) — — — — — 232 Condensate Ref (200x) — — — — — 70 Total 615 766 946 1123 1175 1565 (Source: Quoted from a report of the Downstream Attitude Survey Committee for JCCP Oil Producing Countries, etc.)
Oil refineries in Iran has been increasing their capacities to meet growing needs for oil created by increases in population and cars. In spite of establishment of large-scale oil refineries after the Iran-Iraqu War including Arak (150 thousand BD) and Bandar Abbas (230 thousand BD), all of them are now at their fullest operation with the current throughput at the maximum designed levels or even above. Meanwhile, the country still suffers from economic adversity caused by the war, which has not been able to afford modemization/improvement of existing
-23- refineries.
NIORDC, the refining division of the state owned oil enterprise, now plans "scrap and build" of its Abadan Refinery due to its obsolescence. The Refinery, therefore, is not included in the list for energy saving and modemization/modification. Refineries subject to improvement/modemization are those in Categories 2 and 3. Tehran Refinery among them is one of the typical refineries for which modemizafion/improvement measures are most urgently needed in order to meet increasing demand for oil, to improve air pollution, and to enhance energy efficiency of the capital city of Tehran.
2.3 Current Situations and Future Assignments for Oil Refineries of Iran The major assignments concerning oil refineries that NIORDC has to deal with are as follows:
(1) Up-Grading (Increase in white oil production through heavy oil cracking including, for example, an increase in gasoline production.)
(2) Desulfurization (Environmental measures by quality improvement through production of desulfurized products, etc.)
(3) Improvement of energy efficiency (Energy saving operation/energy saving modification of refinery equipment.)
Measures generally applicable to Assignment (1) and (2) can include introduction of license technology accompanied by large investment and purchase/construction of complete sets of new equipment. On the other hand, various projects currently discussed in relation to energy saving of the above (3) are relatively small in scale and NIORDC wishes to launch into them as soon as possible under technical assistance from foreign countries and by jointly undertaking necessary feasibility studies. It, therefore, very much expects the energy saving survey, energy saving feasibility studies, etc. conducted jointly by the Japanese side based o the CDM scheme. The equipment used in the refineries under Categories 2 and 3, except their cracking units were designed by UOP of the U S. Therefore, they are still outstanding in their rational design concept at the time of foundation. However, in view of economical efficiency of today, they do not meet the required level. The design concepts applied to oil refinery equipment at the time of foundation were mainly characterized as follows:
— 24 — 1) To minimize initial equipment investment and to supply necessary energy through consuming a large quantity of cheap fuel.
2) Not to use heat recovery units (e.g. waste heat boilers) that can increase initial equipment investment.
3) Heating furnaces solely serve as burning appliances necessary for throughput, which are not expected to control combustion itself.
4) To use air-operated coolers for cooling reflux oil whose temperature is high enough for heat recovery and to simply discharge heat in air.
These design demerits must have been negligible at that time in Iran as a large oil producing country where fuel cost was so low in comparison with construction cost. In this respect, refineries of Iran seem to have high potentialities of being relatively easily improved in view of energy saving. Iran, while owning abundance of energy with a large amount of oil production and rich reserve of natural gas, has large oil refineries which require high energy consumption. Needs for improvements in energy saving are expected to even more increase in view of prevention of global warming, prevention of air pollution of urban cities, and improvement in productivity of the oil refineries.
3. Significance/ Needs/ Possible Outcome of This Project and Possible Influence over Similar Industries, etc.
3.1 Significance/ Needs/ Possible Outcome of Project Tehran Oil Refinery is one of the major oil refineries located in a large consuming place within the country, which supplies petroleum products to Tehran area, the capital city and the largest consuming place of Iran. Except Abadan Oil Refinery whose scrap and build is already scheduled, this refinery is the second oldest refinery in Iran. Its capacity amounts to 225 thousand BPSD or the second largest, provided that the newest two and Abadan are not counted. Tehran Oil Refinery, in this respect, holds one of the largest potentials of energy saving among all the oil refineries in Iran. As a matter of fact, from the energy-saving feasibility study of this time, we could obtain highly favorable results for energy saving concerning the refinery.
Tehran Oil Refinery is located in Tehran where NIORDC's head office, also, is. Due to the nation's economic adversity, however, the process flow and equipment setup of the refinery have been left almost unchanged from the time of construction. Just like the other oil refineries, there have been hardly any remodeling executed in its system and equipment for energy saving and yield improvement. Another reason why the refinery has remained
25- unchanged to date is because of the fact that the refinery, during Iran-Iraq War, was held as an area of the highest importance as one of the nation's energy supply bases to which receiving visitors or exchanging information with outside world were strictly prohibited.
On the other hand, political and technological problems concerning refineries currently lie in a heap, including, for example, increased demands for gasoline especially in large cities, environmental measures against serious air pollution and related quality improvement, and energy-saving measures of equipment in conformity with the Law concerning the Rational Use of Energy. In order to deal with these problems, we believe that the energy-saving project under discussion is highly feasible based on the energy-saving investigation of this time as the improvements are expected to be realized through small-to-middle investment, as the return on investment can be clearly shown, and as staff engineers of the refinery can also participate it with cooperative relations in the same way they have done in this feasibility study. Finally, we consider that realization of an appropriate financial support scheme will play one of the decisive factors.
3.2 Possible Influence over Similar Industries, etc. The energy-saving investigation of this time was conducted with regard to Line 1 of Tehran Oil Refinery. The possible outcome from the project will most likely to influence not only Line 2 of Tehran Oil Refinery but also other oil refineries within the country.
Each of the refineries, according to NIORDC's policy, was established as each independent corporation last year, starting to run its own oil refinery each independently. Unlike the conventional system in which all instructions were given by NIORDC, this new system is now creating atmosphere in which each refinery works competitively toward improving production capacity and efficiency. This, we believe, will help accelerating diffusion of outcome from one refinery to the others.
On the other hand, however, the NIORDC head office still has authority over approval and appropriation of budgets and allocate the budgets in consideration of necessary balance.
From the technological point of view, as above-mentioned, all the Iranian refineries, except those two that were built in 1990's and Abadan Refinery, were build based on very similar concepts regarding their equipment construction, equipment flow, and facility/machinery. This fact will greatly facilitate application of outcome from one refinery to the others.
-26 CHAPTER 2 SPECIFIC DETAILS OF PROJECT PLAN CHAPTER 2 Specific Details of Project Plan
1. Project Plan The energy-saving projects in Iran are carried out by Energy-Saving Committee established at each plant as the executive organ. So far as oil refineries are concerned, the head office of NIORDC (National Iranian Oil Refining and Distribution Company) takes the initiative in policy making and budgeting. As for the energy-saving project of Tehran Oil Refinery, therefore, a feasibility study and detailed plans will be prepared by the work front based on policies of the head office, based on which the Refinery and the head office jointly work to realize budgeting and embodiment.
1.1 Outline of Project Area The province of Tehran which this project takes place is small in size of about 28 thousand m2 but with the nation's largest population of about 1 million people, serving as the nation's center of economy. It is situated on the southern foot of the Albuiz range at a high altitude of above 1,000 m, extending from Hilzuku on the east, to Hasigerdo on the west, and to Qum on the south. Climate of Tehran, although slightly varies from the mountain area, to the highland, and to the desert area, is fairly moderate without extreme changes. There are five major rivers where people can enjoy fishing.
1.1.1 Location of Object Region (1) Outline Tehran Oil Refinery is located in Rai District on the outskirts of the city of Tehran. Tehran is the capital city of Tehran Province as well as of the nation. The city is l,200Km2 large and is situated on the foot of the Alburz range.
(2) Map As per attached "Maps of Iran and the city of Teheran".
(3) Transportation Facility Around Tehran Although the Refinery buses for employees and local public buses are available from downtown Tehran, their schedules are quite inconvenient. Use of a taxi or a private car is recommended. Time required is approximately one hour, if it is not a local public bus on a regular route.
1.1.2 Geography / Climate Tehran City is situated at 36°North Latitude and 1,100^ 1,700m above the sea. Being on a plateau, the climate exhibits highland features as well as desert characteristic. There are four definite seasons, where temperature gets as high as 42°C in summer and as low as —16 C in winter. With the annual average rainfall of only 225mm, there is hardly any rainfall throughout a year as shown in Table 1.1.2-1.
-28- Table 1.1.2-1 Annual AverajgeTem )erature/Rainfall of Tehran Month 1 2 3 4 5 6 7 8 9 10 11 12
Ave.Temp. 3 5 10 15 21 26 29 28 24 18 10 5 CO Rainfall 35 26 46 33 18 3 2 2 1 15 28 28 (mm)
1.1.3 History/ Population/ People A variety of ethnic groups have emerged in the course of Iranian history, whose cultures have been intricatedly combined to form the present Iranian culture. Traces of people's living there date back to 7000 BC. The first distinct people who formed the country of Iran were Indo- Europeans having migrated from the steppe zone of the southern Russia in the second millennium BC. The country name "Iran" means "Aryans' nation".
In the 7th century BC, the Achaemenian Dynasty was formed. Following the invasion by Alexander the Great in the 4th century BC, the Arsadd Dynasty was established and East- West trade via Silk Road started. The Sassanian Dynasty which started in the 3rd century AD diffused Zoroastrianism. In the 7th centry, Islam was brought in by the Arabs' invasion, accelerating the nation's Islamization in the following centuries.
After the Turkish invasion and the conquering/rule of Mongols (13th century), the Safavid Dynasty started in the 16th century, during which Shiah was set as their established religion and the foundation of the present national character today was built.
Disturbances of wars continued and the Iran's last dynasty, Pahlav, was established in 1925 in the middle of threat from the Western powers and Russia. Despite the urgent efforts toward Westernization, dissatisfaction with inequality in the distribution of wealth pulled the trigger to the Iranian Revolution of 1979, bringing down the dynasty.
The City of Tehran is said to have started after Mongols' invasion into Rey in 1220. During the reign of Shah Tahmasb, ramparts were built around the area, thus forming the City of Tehran in 1554.
In 1975 in the Qajar Dynasty, it was officially declared as the capital city. Bazaars, etc. were built during the Naser Shah period, ramparts and gates were removed during the Pahlavi period, and the city continued to flourish with increasing population.
29- Tehran, not only serving as the nation's center of transport by having an international airport, railway, roads, bus terminals, etc., but also is the key city from geographical, political, and economical point of views, where embassies of 70 nations, and the majority of administrative/govemmental offices are located within the city.
1.1.4 Natural Resources Although Tehran, itself, is not famous for natural resources, water produced from snowfall in the Alborz range can be said quite an important natural resource.
1.1.5 Industries Cities of Iran originally emerged at and around any water resource to which people gathered, where factories were built and industries developed. Oil refineries, power plants, and other factories were located in the vicinity of each city. Tehran, like others, used to be an agricultural place having bazaars and local shopping areas only with some small brickyards and car/machinery assembly shops being scattered about. However, the population which has swelled so rapidly after Iran-Iraq War could not be absorbed by agriculture alone. People out of work flowed into the capital city of Tehran seeking for their living. The Iranian Government, in 1990's, through inviting power plants and small to medium businesses to city suburbs especially of Tehran, has been making efforts to effectuate measures to cope with the population increase. Tehran City, also, has been trying to attract of factories and other industries into the city, drastically shifting the industrial structure from the conventional agriculture/commerce-oriented form into industry/economy-oriented.
Today, there are over 2,300 industrial areas of various sizes within the city, within which construction of new commercial buildings and apartment houses are under way in addition to new assembly plants of cars and machinery. Inflow of foreign capitals in the fields of car/oil development/petrochemical industries, etc. has been increasing lately especially from Europe, Korea, and China. Tehran, accordingly, has strengthened/expanded its function as the center of commerce for these industries.
-30 1.2 Description of Project 1.2.1 Units Concerned and Details of Project The energy saving survey of this time was carried out for 9 units of the Refinery's Line 1 in compliance with the requests of NIORDC and Tehran Oil Refinery: (1) Crude Distillation Unit: 120,000BD (including, also, SRG Gasoline Distillation Unit) (2) Vacuum Distillation Unit: 50,000BD (3) Visbreaker Unit: 21,000BD (4) Naphtha HDS Unit; 12,000BD (5) Naphtha Reforming Unit: 12,000BD (6) Vacuum Gas Oil Hydro-Cracking Unit: 16,500BD (7) Hydrogen Production Unit: 32MMsdpd (8) Boiler & Utility: 150 tons/h x 3 units (9) Other Off-site, Asphalt, & Flare Equipment
1.2.2 Details of the energy saving projects which can commonly apply to all the units are as follows: (a) Heating furnaces: Energy saving through control of 02% in flue gas from heating furnaces. Heat recovery for flue gas from heating furnaces.
(b) Heat exchangers: Heat recovery from product oils through an increase in the number of heat exchangers. Energy saving through changing of heat sources for heat exchangers. (c) Distillation columns: Heat recovery from reflux. Energy saving through control of reflux flow rate.
1.2.3 Investigation toward Implementation of Project Toward implementation of the project, the parties concerned conducted two times of energy saving field surveys which lasted two weeks and a site visit for discussion of survey results and feasibility which lasted one week.
31- (1) The First Energy Saving Field Survey
(a) Period : October 4,1999 ~ October 18,1999 (b) Place: Tehran Oil Refinery (c) Details: To investigate operating/current conditions of the units concerned. To obtain process flow charts/designed operating condition data of the units concerned. To collect/measure operating data of the units concerned. To confirm operating modes and background of setting of operating conditions of the units concerned. To discuss/confirm energy saving potentialities of the units concerned. To prepare a report of the first survey and to submit it to the other party. (d) Survey Members: Chief investigator : KatsuhachiTOKUDA Subchief investigator : Satoru NAKAYAMA Subchief investigator : Yasuhiko MIURA Investigator : Daisuke SUMITOMO Investigator : IkuoOHKUBO Investigator : ShuheiONO
(2) The Second Energy Saving Field Survey
(a) Period : November 29,1999 ~ December 13,1999 (b) Place : Tehran Oil Refinery, City of Tehran (as to implementation capability) (c) Details: In addition to the first survey, to investigate operating/current conditions of the units concerned. In addition to the first survey, to collect/measure operating data of the units concerned. In addition to the first survey, to confirm operating modes and background of setting of operating conditions of the units concerned. Based on results of discussion following the first survey, to discuss/confirm energy saving potentialities of the units concerned To discuss/confirm prerequisites for unit modifications/ specification after modifications, scope of services provided, etc. To investigate/confirm local procurement capability, work execution capability, etc. regarding unit modifications. To confirm the partner's interest levels in energy saving projects and CDM To prepare a report of the second survey and to submit it to the other party. (d) Survey Members: Chief investigator : Satoru NAKAYAMA Subchief investigator : Yasuhiko MIURA
-32- Investigator : Daisuke SUMITOMO Investigator : IkuoOHKUBO
(3) The Third Site Visit/Discussion Concerning Energy Saving Survey Results as well as Feasibility
(a) Period : February 21 ~ March 2,2000 (b) Place: Tehran Oil Refinery, NIORDC head office, City of Tehran, City of Tabriz (c) Details: To report/discuss results of energy saving surveys. To discuss feasibility, profitability, implemental conditions, etc. of the modification plans. To discuss transfer of technology related to eneigy saving and pervasive effects to other oil refineries. To discuss prerequisites for unit modifications/ specification after modifications, scope of services provided, etc. To discuss feasibility, prerequisite conditions, possibility of financing, etc. To investigate/confirm local procurement capability, work execution capability, etc. regarding unit modifications. Submittal of a report of the energy saving survey results. (d) Survey Members: Survey project manager : Hisayoshi HANDA Chief investigator : Katsuhachi TOKUDA Subchief investigator : Satoru NAKAYAMA Subchief investigator : Yasuhiko MIURA Survey support manager : ToshihiroYAMAZAKI
1.3 Greenhouse Gas, etc. Covered by Project The objective of the energy saving survey project in question is to reduce emission of carbon dioxide which is a greenhouse gas, thus preventing global warming. Carbon dioxide is generally produced through combustion of fuels in heating furnaces, boilers, etc. of oil refineries and is discharged in air. Therefore, oil refineries whose facilities for producing oil products are low in energy efficiency, therefore, show higher fuel consumption or fuel consumption rates, emitting larger quantities of carbon dioxide. Improving measures and modifications for energy saving, if practiced on equipment of oil refineries, can contribute to reduction in emission of carbon dioxide as greenhouse gas.
-33- 2. Outline of Work Site (Target Corporation)
2.1 Interest Expressed by Work Site (Target Corporation) Tehran Oil Refinery has been expressing great interest in this energy-saving project, strongly hoping to carry out the project under technical/financial assistances.
NIORDC and Tehran Oil Refinery established Energy-Saving Committees according to the law concerning energy-saving promotion enacted in 1997, having discussed their basic policies/countermeasures and necessary budgeting. Under the system, the head office established Energy Saving Section under control of Production Director, while an Energy- Saving Committees was set up in each refinery under control of its plant manager. The committee members consist of section managers from technical and operation sections as well as staff concerned.
The energy-saving investigation of this time owes much to the Energy Saving Section of the NIORDC head office which was responsible for coordination between the head office and the Refinery and, also, to all the members of Energy-Saving Committee of the Refinery who actively cooperated and participated in the investigation. At the Refinery, Utility Dept, acted as the coordinator and a joint system was taken successfully with the Japanese group in provision of relevant materials, collection/presentation of data, discussion at the Remodeling Plan Investigative Committee meetings, etc. The meetings, we believe, were successful which served also as an opportunity of technical transfer, thus successfully responding to the request from Iranian side. Tehran Refinery expressed their expectation that the feasibility study of this time would not come to an end but would be developed into actual budgeting including preparation of a financial support scheme toward realization of a project, for which they would continue making their best effort.
34- 2.2 Outline of Work Site Equipments (Target Corporation) 2.2.1 Outline of NIORDC NIORDC (National Iranian Oil Refining & Distribution Company), among Iran's state owned oil downstream, serves as a headquarter which controls oil refining and distribution sectors. The company is one of affiliated organizations of the Misnistry of Petroleum.
Ministry of Petroleum
KAL Af Procurement!
PEDCO fBuv-Back Investment! NIOC (Five Production Companies) NIOC South FieldfOnshore!
IOOaOffshore!
Khazar Exploration & PmductionfCasnian! NIOC Central (Onshore!
Pars Oil & Gas (North & South Pars!
NIOC International NIOC/NTS (London!: (Trading! NITC (Tanker Operation!
(Nine Refining Companies)
Abadan Refining Co.
Tehran Refining Co. NIORDC Isfahan Refining Co.
Tabriz Refining Co.
Kermansharh Refining Co.
NIGC(Natural Gas) Lav an Refining] Co. ermansharh Refining Co. Arak Refining Co.
Bandar Abbas Rtefing Co.
NPC(Petrochemical)
— 35 — 2.2.2 Outline of Tehran Oil Refinery line 1 (South Oil Refinery) of Tehran Refinery was built in 1968. It was followed by construction of line 2 (North Oil Refinery) and expansion of Line 1 in 1974. It was further followed by introduction of cracking units to finally complete the current refining flow. The outline of construction/expansion of units are shown below:
UNIT LINE 1 (1968) Revamp(year) LINE 2 (1974) Crude Distillation Unit 85,000 —100,000 1974 100,000 Naphtha HDS Unit 16,830 1968 14,500 Hydor cracking Unit 15,000—20,000 1973 20,000
Kerosene Desulfurization Unit — 13,500 LPG Recovery Unit 6,625 1974 3,000 Visbreaker Unit 19,000-21,000 1974 19,000 Asphalt Production Unit 1,675 1974 8,000 Sulfur Recovery Unit 1401/d Hydrogen Production Unit 32MMSCFPD 33MMSCFPD Propane Unit 3,700 1978 Lube Production Unit 21,000—31,600 1978
-36 2.2.3 Outline and present condition of units to be studied for energy saving (1) Outline of present condition of whole units (General Matters) A site investigation of the Tehran refinery impressed us as follows.
1) Units
• The Atmospheric and Vacuum distillation units and Gasoline distillation unit are being treated as the same units in terms of the heat integration. • The Visbreaker unit is being used as an atmospheric distillation unit. • Heat is not being recovered from the heating furnace flue gas. • Instruments and the like are little. Many instruments that are not being used due to failures are observed. • Leakage from heat exchangers and piping flanges are observed on many places. Smoke from the point of leakage is observed on some places. • The use of analyzers that have been introduced in the entire oil refinery are discontinued. But, necessary items are being analyzed in the laboratory separately to reflect the results to operation. • The routes for the site patrol and the safety of passages for the patrol are not secured. A periodical patrol is not carried out. • All oxygen meters in the heating furnace (heater) flue gas zone have been removed. • Noises from the heating furnace and pumps are very high. • Instrumentation cables have been buried in ground with them unwrapped. (Protective pipes are fitted to cables at portions where they pass under the road.)
2) Operation
• The number of working instruments are little, but the system seems to be operated stable because crude oil is definite (Iranian heavy crude oil) and the load is almost constant at maximum operation. • As operation data, the data are taken at board three times a day. • Product maximum operation is aimed at more than optimum and energy-saving operation. • Photography is not allowed at all.
-37- (2) Atmospheric distillation unit: CDU
(a) Operation Started: Year 1968. (b) Original Capacity: 80.000 BD. (c) Actual Capacity: 125.000 BD (Capacity was increased in 1974). (d) Design: UOP. (e) Actual Operation: 110.000 to 120,000 BD. (f) Crude Oil: Iranian light crude oil and slop VGO. (g) Products: Off gas (to LPG unit) Straight run gasoline (to stabilizer). Blended naphtha (to kerosene and diesel oil). Kerosene (to product tank). Diesel oil (to product tank). Atmospheric residual oil (to Vacuum distillation unit). (h) Characteristics of the unit The plant is equipped with a pre-flashed tower, this tower bottom oil of which passes through the heating furnace and is mixed with the tower top gas of the pre-flashed tower, being fed to the main fractionator. The top of the fractionator is of two-stage cooling, and the cooling load of the tower top is much higher in comparison with the cooling load of the side cooler. Therefore, it is the point that heat can be recovered by shifting the load of the tower top to the side reflux.
(3) Vacuum distillation unit: VAC
(a) Operation Started: Year 1968. (b) Original Capacity: 40.000 BD. (c) Actual Capacity: 48.000 BD (Capacity was increased in 1974). (d) Design: UOP. (e) Actual Operation: 45.000 to 50,000 BD. (f) Feed stock: Iranian light crude atmospheric residual oil . (g) Products: Off gas (to H-101). Light slop recycle (to slop tank). Light Diesel oil (to LVGO tank). MVGO (ISOMAX feed). Slop VAC gas oil (HVGO to Visbreaker Product). Lube Distillate(MHVGO). VR(VAC Residue). (h) Characteristics of the unit The furnace load of this unit is little higher due to operate the heater recycle system.
-38- AFQair fan cooler) is used for cooling of MV GO reflux. And that inlet temperature is 160°C, it is seemed high, so there is the room of heat recovery.
(4) Gasoline distillation unit: SRG
(a) Operation Started: Year 1968. (b) Original Capacity: 23,000 BD. (c) Actual Capacity: 23.000 BD (d) Design: UOP. (e) Actual Operation: 20.000 to 22,000 BD. (f) Feed Stock: Straight-run gasoline. (g) Products: LPG. light naphtha. Heavy naphtha. Solvent naphtha. Gasoline blend naphtha.
(5) Visbreaker unit: VB
(a) Operation Started: Year 1968. (b) Original Capacity: 19.000 BD. (c) Actual Capacity: 21.000 BD (Capacity was increased in 1974). (d) Design: UOP. (e) Actual Operation: 15.000 BD. (f) Feedstock: Iranian light crude oil (is used as CDU). (g) Products: Off gas (to H-101). Stabilized naphtha (to tank). Kerosene (to CDU fractionator). Diesel oil (to CDU fractionator ). Atmospheric residual Oil (to product tank).
— 39 — (6) Naphtha Hydro-desulfurization unit: Unifiner
(a) Operation Started: Year 1968. (b) Original Capacity: 10,440 BD. (c) Actual Capacity: 16,830 BD (Capacity was increased in 1974). (d) Design: UOP. (e) Actual Operation: 14,000 to 16,500 BD. (f) Feed stock: Heavy naphtha(ffom SRG splitter). (g) Products: Off gas (to amine treating unit). Desulfurized Heavy naphtha(to Platformer)
40 (7) Naphtha Reforming unit: Platformer
(a) Operation Started: Year 1968. (b) Original Capacity: 10,440 BD. (c) Actual Capacity: 16,830 BD (Capacity was increased in 1974). (d) Design: UOP. (e) Actual Operation: 14,000 to 16,500 BD. (f) Feedstock: Desulfurized Heavy naphtha(from Unifiner). ISOMAX naphtha (g) Products: Stabilizer Off gas (to fuel gas). Separator Off gas (to Hydrogen production unit) LPG (to product tank) Reformate gasoline (Gasoline tank)
(8) Vacuum Gas Oil Hydro-Cracking unit :ISOMAX
(a) Operation Started: Year 1968. (b) Original Capacity: 15.000 BD. (c) Actual Capacity: 20.000 BD (Capacity was increased in 1973). (d) Design: Shevron Reserch Co., Ltd.. (e) Actual Operation: 17.000 BD. (f) Feedstock: Vacuum Gas Oil (from VAC unit). ISOMAX Recycle feed (g) Products: Off gas (to amine tearing). LPG (to LPG unit) light ISOMAX gasoline (to Gasoline tank) Heavy ISOMAX naphtha (to unifiner)
(9) Hydrogen production unit
(a) Operation Started: Year 1968. (b) Original Capacity: 32MMSCFPD. (c) Actual Capacity: 32MMSCFPD. (d) Design: Foster Wheeler (e) Actual Operation: 27MMSCFPD. (f) Feedstock: Platformer separator gas / Natural gas (design 50/50) (g) Products: Hydrogen :97% purity (to ISOMAX).
—41 — (10) Boiler & Utility unit
(a) Operation Started: Year 1968. (b) Original Capacity: MCR 320,000 LB/H(X 4 unit). (c) Actual Operation: 200,000 to 320,000 LB/H. (d) Design: COMBUSTION (e) Boiler Fuel: Fuel oil (Design: 39,855 Lbs/hr) Fuel gas (Design: 108,557 Lbs/hr) Slop gasoline (Design: 7,716 Lbs/hr) (f) Product Steam: Press: 650 Psig, Temp: 700 °F Steam Header: 630#/300#/ 60#
(11) Other Units those units have small effect of energy saving, energy conservation study is not carried out.
(11-1) LPG Recovery unit (a) Operation Started: Year 1968. (b) Design Capacity: 6,625 BD. (c) Actual Operation: 6,200 BD. (d) Design: UOP. (e) Feedstock: CDULPG. ISOMAX LPG (f) Products: Propane, Butane, C5+
-42 (11-2) Asphalt Production unit :AS (g) Operation Started: Year 1968. (h) Design: UOP (i) Actual Capacity: 5,450 BD(Roofing). 1,675 BD(Paving). (j) Actual Operation: 6,000 BD(Roofing). 700BD(Paving). (k) Feedstock: Vacuum Residue Oil (from VAC unit). (l) Products: Roofing Asphalt Paving Asphalt (11-3) Off- site :Tank yard
2.2.4 Way of Thinking and Setting of Target for Energy Saving The petroleum refining process of the Tehran Refinery, which was designed by UOP and Shevron Reserch Co., Ltd. of the U.SA, is composed of a general flow and equipment at the time of 1968. Energy-saving was not intended in particular. Since instruments are of pneumatic types, no optimum control is being made. Though the oxygen analyzer for the heating furnace flue gas was equipped, they are not used after a failure due to difficulty in getting necessary parts after an failure . The above-mentioned shows that a considerable room to improve energy-saving is present. In a petroleum refining plant, heat energy is given to heat feed oil up to a temperature necessary for distillation or reaction. Therefore, it is important to promote the improvement of efficiencies of the heating furnace. It is necessary to try to collect heat energy by utilizing high-temperature heat energy of products which flows out of the distillation tower or reaction tower for heating crude oil and to reduce energy taken out to the outside of the system. For this purpose, many heat exchangers are installed in the plant. If kinds of fluids increase as seen in the crude oil atmospheric distillation unit, heat exchangers are arranged in a complicated network. Optimizing the heat recovery of this heat exchanger network and enhancing heat exchangers reduce fuel oil consumption of the heating furnace reduced to promote energy saving. Energy saving is promoted also by enhancing instrumentation equipment and control systems (instruments on sites, on-line analyzers, and the introduction of DCS to the control room), and by controlling operation at the very limits of equipment functions and product standards.
(1) Common Target for Heating Furnace
Tube type heating furnaces used in the oil refinery include the total radiation type heating furnace, which is as low as 60% or under in heater efficiency), and the heating furnace with
_43_ the convection zone, which is also provided with the convection heat-transfer zone. In order to promote energy-saving by improving the heater efficiency or recovering waste heat of this heating furnace, the following measures are generally employed. 1) Reducing Excess Air Rate (Reducing Oxygen % in Combustion Flue gas) Though air used for combustion is taken in at room temperature, flue gas after combustion is dischaiged at temperatures at least higher than the acid dew point (normally 150°C+ a). Since air taken in excessively is heated by extra fuel and discharged without giving any contribution to combustion, reducing this excess air volume leads to energy-saving of the furnace. Under an ideal condition, excess air becomes zero. But, since incomplete combustion occurs actually, some excess air must be supplied. Therefore, it becomes important to optimize the combustion control system to repress excess air as far as possible. The excess air rate can be calculated by measuring oxygen % in the flue gas. The most highly controled heating furnaces are being operated with oxygen % in the flue gas kept at 1% or so. The following steps promote the accomplishment of the above-mentioned matters.
(a) Operation with a close and careful target value by enhancing daily operation control. (b) Repairing air leakage into the furnace. (c) Optimizing the combustion control system. (Air register adjustment, draft control dampers, and excess air rate monitoring are necessary items.)
Locations of general air leakage are shown in Fig. 2.1. Plastering or sealing joints with kaowool or the like can reduce leakage.
Furnace Damper Outside Leakage Furnace Outside Pressure Gage Leakage Explosion Door Furnace Wall
Tube Inlet Thermo Couple Corrosion Hole
\ Header Box
Peephole
Sight Grass Leakage
Air Intake Air Adjuster
Fig. 2.1 —44 — A combustion control system is shown in Fig. 1.2. Roughly speaking, in order to supply air volume just necessary for combustion, remaining oxygen % in the furnace flue gas is measured all the time to control the air volume for combustion automatically so that it may be the set target oxygen %. There are two ways to do so, that is, (a) adjusting the opening % of the damper at the heating furnace flue gas outlet, and (b) adjusting draft by the air supply volume-regulating valve if a forced draft fan is provided. At the same time, the in-fumace pressure is measured all the time to keep it at a definite negative pressure for automatic control (dampers, induced draft fans, and the like).
actuator < controller
O2 analyzer Pressure gauge
Controller / RATIO setter
FUEL GAS
Target value of oxygen percentage in flue gas: 2.5% (for gas burning) and 3% (oil/gas mixed burning). Ground: Mean excess air percentage that can be established by control. This can be lowered further by the revision of specifications.
— 45 — 2) Heat Recovery from Combustion Hue gas The higher flue gas temperature is, the more heat is discharged to the outside of the unit. Since an ordinary process recovers the heat by a heat exchanger and the like and the process fluid is preheated in order to reduce load of the heating furnace as far as possible, the process fluid is relatively high temperature at the furnace inlet. Since a heating furnace is seemed the heat exchanger for combustion flue gas and process fluid at the convection zone, outlet temperature at the convection section is never lower than inlet temperature of the process fluid. In general, flue gas temperature at the convection section outlet is as high as 400 to 500°C. Therefore, if that high temperature flue gas is discharged to the outside at least 20% or so of the heat value generated by combustion is lost.
As methods to recover the sensible heat of the combustion flue gas effectively, there are two measures mentioned in the following.
- Method to Use WHB (hereinafter referred to as the "Waste Heat Boiler")
• The WHB generates the steam to collect the sensible heat of combustion flue gas. But, it does not lead to fuel saving at this own heating furnace. • It is often applied to total radiation type heating furnaces the flue gas temperature of which is very high. • A general WHB system is shown in Fig.
- Method to Use APH (hereinafter referred to as the "Air Preheater") • The APH collects sensible heat of combustion flue gas by preheating combustion air in order to promote heat recovery. • Heat efficiency can be improved up to about 90%. • It is often applied to heating furnaces provided with a relatively-high convection zone. • A general APH system is shown in Fig.
— 46 — Combustion flue gas discharged from the heating furnace convection zone passes through flue gas ducts and is introduced to the air preheater. On the other hand, air for combustion is pressurized by a forced draft fan and introduced to the air preheater. Heat is exchanged from flue gas to air at the air preheater. Air for combustion is preheated and introduced to the air register, and is mixed with fuel for combustion. Combustion flue gas which has got lower in temperature by giving heat is discharged to atmosphere through a stack.
Target value of combustion flue gas temperature: Temperature at the add dew point + a (normally 150°C+ a).
3) Reductions in Heat Discharge Amount through Outer Wall of Furnace Fire-resistant bricks have been laid on the inside of the furnace as furnace wall materials for insulation and reinforcement. So, heat discharge from the wall is not so much. (1 to 2% of total combustion heat value or so). However, in case that the temperature of the outer wall exceeds 200°C due to detached bricks or other reasons, heat discharge increases like a geometric series, which requiring repairs and/or reinforcement. In such a case, light-weight castable or ceramic fiber with high insulating property is used as furnace wall material.
(2) Common target for heat Exchangers
Main heat energy released from the process to the outside of the system includes the following: • Energy discharged to refrigerant by the cooling water cooler from the product and reflux, and • Energy discharged to atmospheric by the air fan cooler (AFC) from the product and reflux.
47- The process of the Tehran Refinery, which is licensed by a U.S. engineering company, is of a design of the general energy-saving level at that time, but the temperature at the product cooler inlet is high, and more air fan coolers (AFC) are used because of the regional characteristics in comparison with present equipment of Idemitsu.
In terms of energy saving, the amount of heat recovery from each product and reflux to crude oil should be increased by means of heat exchangers increased in number to collect energy discharged to the outside of the system and to decrease fuel oil consumption of the heating furnace. The target value of heat recovery at the atmospheric distillation unit and vacuum distillation unit is to be crude oil temperature + 40°C for naphtha, kerosene, and light diesel oil. But that for other products is to be 150 to 200°C in terms of separation of wax and prevention of solidification, The above-mentioned two units have been integrated, and its high temperature VR heat value is changed at the portion of the highest temperature of the crude oil side, but studying the optimization of the heat exchanger arrangement can improve heat recovery. Energy-saving by bypassing the product cooling water cooler and hot charging the product to the down-stream side unit is also investigated.
Some coolers in the Tehran Refinery use circulating cooling water of condensate water as cooling medium, and heat value absorbed from it is released to atmosphere by the air fan cooler of its circulating system. The released temperature is as low as 90 to 100°C, but has still room for heat recovery as preheating boiler feed water (BFW), Two Idemitsu’s oil refineries have actual performances of the low- temperature waste heat recovery system, which is applicable if the supply temperature of the BFW is room temperature.
-48- (3) Common target for Instrumentation and Control
Based on the actual status of the facilities, points to be improved are divided to steps.
[Step 1] Instrumentation on the site (sensor and control valves and so on) is maintained to prevent leakage from grounds of control valves and to make operational values of various instruments visible. This becomes the basis to realize careful operation leading to energy saving.
[Step 2] The operational frequency of control valves and the like are raised by installing analyzers and controlling operational values continuously in order to realize finer control. The introduction of automated control and cascade control are promoted by introducing the one- loop controller.
[Step 3] The DCS (Distributed Control System) is introduced to control the data of the entire process units unitarily and to apply various control algorithms. The alarm functions and interlock system are improved as functions of the DCS, and a safer system can be constructed. Energy-saving that can be thought by the good use of the DCS can be obtained by two sides of effects, that is, (a) it stabilizes the controllability by the application of high-degree algorisms to make it possible to adjust a control target value, that is, to fix it to a value, or to maximize or minimize each value, and (b) it can control the change of conditions carefully and smoothly, for example, it can adjust the reboiler depending on the change of charge rate. One of the most investment-effective controls is that of oxygen % control for the heating furnace. This adjusts opening % of dampers so that a minimum oxygen % may be maintained because heat in the heating furnace escapes to atmosphere directly. Regarding the introduction of the oxygen % control for the heating furnace, improvement items are mentioned here according to the above-mentioned steps. As the step 1, since, in the case of the natural draft type heating furnace, oxygen % does not lower sometimes even if dampers are fully closed, because of the presence of air leakage, their tube inlet, thermo couples, sight glasses, and the like are repaired. Next, as the step 2, the opening% of dampers are adjusted manually so that proper oxygen % may be obtained by installing oxygen analyzers to on-line-control oxygen %.
Further, as damper control units, the actuator to control the degree of damper openness, draft gauge, and one-loop controller are installed to realize automatic control. As the step 3, the DCS is introduced to construct the control system for the heating furnace by making good use of input values from various sensors. Main control items are shown in the
-49 following.
Control of Degree of Damper Openness: Dampers are controlled so that a minimum oxygen% that allows complete combustion may be maintained because heat in the heating furnace escapes to atmosphere directly. Damper open/close signals for oxygen control take signals from draft gauges into account and stabilize the in-furnace pressure. Outlet Temperature Control of Heating Furnace (Process Fluid): The flow rate of fuel is controlled to control the outlet temperature of process fluid. If plural heating pipes are installed, parts of high temperature are optimized effectively by means of coil balance control to enhance heat efficiencies. The feed-forward control of the fuel flow rate according to the inlet temperature and changes of the process fluid improves the controllability of the outlet temperature. Fuel Flow Rate Control: While the two mixed firing fuel system (oil and gas) which controls the outlet temperature of the heating furnace, the ratio-control which takes fuel calories into account is employed. Changes to/from one-fuel combustion from/to mixed-fuel combustion should be made easily. The fuel flow rate is controlled to adjust the target of outlet temperature.
Combustion Air Volume Control: This is the flow rate control of air required for combustion, and the ratio control is made according to the fuel flow rate. This ratio is adjusted by the input from the oxygen% meter so that an appropriate excessive air ratio is maintained. In-Fumace Pressure Control: This is a control to maintain the inside of the furnace at a designated pressure. In the case of forced draft by means an FDF (Forced Draft Fan), the pressure is controlled by the flue gas damper. Furthermore, the control is improved by adding the feed forward control from the manipulated output of combustion airflow rate.
2.3 Competence of the other party (enterprise) to accomplish project
2.3.1 Technical competence Two competence is required for accomplishment of this project,. One is the operation management and stabilize ability of operation condition change after plant modification. Second is the engineering management ability of preparing design specification and site revamp work control. The engineers in the Tehran refineries possess high level of process and technology ability, so, they have enough first one competence. But, for second competence, they have not enough experience to prepare basic design of modification and to make order specification. In the concrete, necessary competence are to decide design condition for plant modification and to select the suitable type equipment. It is involved to the budgeting activity.
50 2.3.2 Management structure The deputy general manager of Tehran Refinery carry out enough to control the revamping project with project structure based on existing Refinery structure. Because, this project is not so big.
2.3.3 Business foundation and management policy In accordance with the Government new policy, Tehran Refinery could manage for the independent company as a matter of form. But, under the Government completely control the domestic oil market price, foreign currencies and budget, business foundation of the Refinery is seemed to be grasped by the Government. On the other hand, Government leave the management policy to each Refinery, so Tehran Refinery is able to promote save-energy project
2.3.4 Ability to pay funds Government of Iran control foreign currencies completely, Refinery have no possibility to acquire necessary foreign currencies for implementation of this project. Therefore, depend on ability to pay funds, Refinery have to provide the oversea financeirs for foreign currencies, by consensus of Government and NIORDC head-quarter.
2.3.5 Personnel capacity Tehran Refinery have engineering staff to implement this project, but, supplement the total coordination staff to control the project schedule and to introduce foreign technology , equipment.
2.3.6 Organization for implementation Tehran Refinery organization have operation dept, and engineering dept and maintenance dept., therefore, small modification work have been carried out with Refinery person. Implementation of this project is able to carried out under exist structure which manager approve the technical specification sheet and operation condition change, with necessary of foreign companies ability of design and site work. However, provision of foreign currencies should be adequately incorporated in both of NIORDC headquarter and overseas financers.
—51 — 2.4 Contents of project and specifications of modification work of the units at the site 2.4.1 Specification of modification work in each unit Summary of Modification Contents is shown in Table 2.4.1-1 (energy saving items of operation improvement are excluded in the table)
(1) Installation of Rue Gas 02% Control System Furnace control system (Instrument) is shown in Fig 2.4.1-1
(2) Heat Recovery System of Furnace Rue Gas (Air Pre Heater / Waste Heat Boiler / Economizer)
APH system is shown in Fig 2.4.1-2 WHB system is shown in Fig 2.4.1-3
52 Table 2.4.1-1: Summary of Modification Contents is shown
Investment cost UNIT Item No Modification Content (K US$) CDU H10102% Control System installation(4.9 —>2.5%) 170 H101 H101 APH(Air pie heater) installation 2500 (Efficiency up 78 —>90%) H102 H102 02% Control System installation (5.0—>2.5%) 170
VAC H15102% Control System installation (8.0 —>3.0%) 170 H151 H151 APH(Air pie heater) installation 1500 (Efficiency up 64—>90%) Ms Breaker H301 H30102% Control System installation (15.1—>3.0%) 170 Naphtha Unifiner H201 H20102% Control System installation (2.8 —>25%) 170
H202 H202 02% Control System installation (10.6—>25%) 170
H203 — - PLAT former H251 H25102% Control System installation (5.6—>2.5%) 170
H255 H255 02% Control System installation (83 —>25%) 170
H252 H252 02% Control System installation (14.7—>25%) 170
H254 11254 02% Control System installation (133—>25%) 170 WHB Install WHB ami Centralize Duct of 11251,255,252 3,000 ISOMAX H430 H430 02% Control System installation (4.6—>25%) 170
H431 H43102% Control System installation (2.8 —>25%) 170
H432 H432 02% Control System installation (45—>25%) 170
H433 H433 02% Control System installation (45—>25%) 170 Install WHB and WHB 2500 Centralize Duct of H430,431,432,433 Hydrogen Plant H801 H801 02% Control System installation (9.0~>3.0%) 170 BOILER A 02% Control System installation (9.0 —>3.0%) 170
B 02% Control System (9.0 —>3.0%) 170
D 02% Control System installation (9.0 —>3.0%) 170 Install Economizer at exhaust gas duct ECO on AJ3J3 Boiler 3,000 TOTAL 15560
-53 A
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Furnace control system (Instrument) vri V?VtDFS
B P»|'*T1.) OT —II M CO., urn.
kiiPMVviftac
m" AIR-PREHEAER SYSTEM B a1 to a to Ui $ Ui -« 3- I E I F • Q FURNACE ® WIND BOX m /rvlDFS ® AIR-PRE HEATER Q) DUCT ® FDF ® IDF H an em O 7 7 T 1 I T l o 5 1 9 I s i s 1 9 0 e e 5 I ii C_J -E- Fig. 2.4.1-3 Waste Heat Boiler System “1 Q "t* ^ I 56 2.4.2 Setting of Target for Energy-Saving for Each Unit (1) Atmospheric distillation unit 1) Installation of Flue Gas Oxygen% Control System The crude oil heating furnace (H-101) is a box type, and was provided with a forced draft fan (PDF) when the capacity was enhanced in 1974. The burner was designed to be 15% in excess air rate, which is the lowest specification in the refinery. The furnace is being operated at a point very close to a maximum combustion capacity, then, if energy-saving improvement reduces fuel oil consumption, ii leads to the cancellation of the bottlenecks. The heating furnace for kerosene reboiler (H-102) is a upright cylindrical type and is small in heating capacity. Since an ordinary atmospheric distillation unit does not make it an independent heating Table 2.1 furnace, heat recovery can be increased to stop fire of the future. Oxygen (%) in flue gas from the heating furnaces (H-101 and H-102) is as high as 4.9- 5.0%, and the temperature is also as high as 450°C or above, which shows the presence of room for energy-saving. Actual conditions of the heating furnace unit show air leakage from the sight glass, tube header box, and the like, which must be repaired. The PDF capacity took the installation of the APH in the future into consideration. Since, however, discharge pressure is high to cause heavy vibration though the damper for adjusting combustion air is set to the closing direction, it must be opened to an openness degree more than that required for taking air volume. The installation of an air intake damper to the suction port of the PDF may be a countermeasure for the time being. At the first step, we recommend to improve these defects. As the second step after that, a system to control flue gas oxygen by damper control is introduced to reduce heat energy loss. (Instrumentation system is as the above-mentioned.) Concretely speaking, 2.5% or so actually established by Idemitsu will be the target value. 2) Installation of Air Preheater At the third step, an air preheater (APH) is installed to the H-101 that consumes much fuel oil to reduce flue gas temperature down to 170°C. Since the H-101 was provided with a forced draft fan and air ducts already, they also can be utilized. The heat transfer area of the APH (a plate type) becomes about 3000m2. This improvement can raise the heating furnace efficiency from 78% up to 90%, and reduce the fuel oil consumption by 14%. 57- Table 2.1 H-101 Design Actual 02% APH Reduction Installation Fired Duty 313.5 293.2 2833 2433 (MMBTU/h) Heater Efficiency 75.0 75.0 77.7 90.0 (%> 02% 1.8 4.9 23 2.5 Flue Gas Temp (°F) 914 851 851 338 fC) 490 455 455 170 Fuel Consumption 8,038 7,517 7^63 6,238 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 254 A 1,279 from Actual Condition (Kg-Fuel/h) A 2,100 A 10,570 (KITYear) (KITYear) H-102 Design Actual 02% APH Reduction Installation Fired Duty 383 26.6 25.4 - (MMBTU/h) Heater Efficiency 80.0 693 73.0 - <%) 02% 4.6 5.0 23 - Flue Gas Temp (°F) 626 1032 1032 - fC) 330 556 556 Fuel Consumption 989 684 652 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 32 - from Actual Condition (Kg-Fuel/h) A 265 (KITYear) -58 3) Heat Exchanger • Rearrangement of Heat Exchanger in Crude Oil Preheat System: (Future Subject) The existing heat exchanger in the crude oil preheat system is utilized effectively as far as possible, and the duty on the furnace is reduced by an appropriate rearrangement and increasing heat exchangers. The following Table 1. shows present heat-transfer areas and estimated heat-transfer coefficients. Table 1.2 Heat-Transfer Number Heat-Transfer Area ITEM No. Coefficient Parallel x Series (m2) (kcal/hrm2,cC E-105 1 1 61 410 E-106 2 2 835 247 E-107 1 2 327 391 E-131 1 2 642 198 E-132 206 250 E-133 36 200 E-134 1 1 249 215 E-154 377 200 E-155 780 230 E-156 390 230 E-157 1 1 125 224 E-158 1 2 574 166 E-159 1 4 993 218 E-163 1 1 152 204 TOTAL 5809 Target of energy saving modification is to be maximized heat recovery from each product to the crude oil. Table 3.2 shows inlet temperatures of the present product oil cooler and target temperatures of each product cooler inlet for heat recovery. For naphtha, kerosene, and diesel oil, their target temperature is decided to be "crude oil temperature + 40°C", and for other products, since they are likely to decrease in heat exchange coefficient extremely due to wax separation, solidification, and etc, their target temperature is decided to be 150°C and200°C respectively depending on each product. Since the Table 3.2 showed, that products which heat recovery was not sufficient were naphtha, diesel oil, and Isomax feed. So it was decided to focus on their fractions. -59 - Table 1.3 Fluid Name Actual Temperature Target Temperature Blending Naphtha 96 75 Kerosene 77 75 Light Diesel 95 75 Heavy Diesel 96 75 Isomax Feed 164 150 Atmos. Residue 105 150 Slop Vacuum Gas Oil 196 200 Lube Cut 175 200 Vacuum Tar 215 200 As the method to heat recovery from the above-mentioned fractions, the effects that can be obtained when the following items are put into practice were examined. (Naphtha product was excluded because it was low flow rate to get any merit) The following drawing shows the process flow before and after modification. The following table shows the heat recovery before and after modification. (a) Increase of heat exchangers for crude oil / light diesel oil products Install one new heat exchanger : heat recovery to 75 C of light diesel oil products heat transfer area = +200 m2 (b) Rearrangement of heat exchangers for crude oil / VGO(E-155 and E-156). Heat recovery from the VGO reflux with not only E-155 but also E-155 & E-l56. (c) Increase heat exchangers for crude oil / reduced-pressure heavy-quality light oil (E- 154). Install one new heat exchanger : heat recovery to 75°C of ISOMAX feed oil products heat transfer area = +150 m2 60- The following table shows the amount of heat duty before and after modification. Table 1.4 ITEM No. Actual Status After Modification E-105 1.30 1.30 E-154 5.60 731 E-106 10.46 9.93 E-107 8.92 8.47 E-156 4.75 5.14 E-155 13.70 13.19 NEW - 2.41 E-131 3.07 2.45 E-132 5.10 4.08 E-163 932 9.15 62.21 63.43 Unit: MM kcal/h • Rearrange Heat Exchangers of LGO reflux and crude oil for reducing the duty of crude oil furnace.: (Future Subject) The actual operations of the side reflux system in fractionator have problems as shown in the following. (a) For the side stripper reboiler (Heating furnace: H-102), the duty of H-102 is increasing because LGO reflux is used for preheating crude oil (E-132). (b) Temperature at the inlet of the light diesel reflux cooler (E-108) is so high as 210°C, and it is possible to heat recovery. 61- Therefore, the heat source for E-132 is changed from the side stripper reflux to the light diesel reflux. E-108 that become to be unnecessary is used for cooling the fractionator tower top reflux. Table 1.2 shows energy saving effects in the case that H-102 COT is the same. Table 1.2 Actual Status After Improvement LoadofH102 4.6 3.0 E-101 fig. 1.3 -62 • Pressure Control by PC Installed to Flush Drum: (Future Subject) The flush drum is not pressure-controlled. So crude flushes about 10% and feeds to the fractionator independently of the load. Then, PC is installed to control pressure so that the actual flush rate of 10% or so may get close to a standard value of 5% or so, to increase the flow rate of the crude oil preheating system heat exchanger, and to improve the heat transfer coefficient to crude oil. Table 1.6 Actual Status After Improvement E-159&E-133 728 7.39 E-157&E-134 6.94 7.04 E-158 9.06 9.20 Sum 23.28 23.63 Unit: MM kcal/h PRC (Control at 50~70 psig ) 37 psig V-101 V-102 . — Flow rate will be increase H-101 63 4) Improvement of Operation Reduction in Load of Fractionator O/H by Increase in LGO Reflux Flow: (Future Subject) Making the LGO reflux flow a maximum capacity, heat is recovered by the crude oil / LGO heat exchanger (E-133) as much as possible. Since functional curves of the pump (P-121) could not been obtained, the amount of energy-saving calculated assuming that the amount of the actual LGO reflux would increase by 10% from the actual value is shown in the follow. Table 1.7 Actual Status After Improvement E-133 Load 1.16 1.19 E-101 V-103 V-102 LGO ref E-119 H-101 P-121 (need revamp) Fig. 1.5 64 Optimum Flow Rate Distribution Control of Two Passes of Crude Oil Preheating System of Heat Exchanger: (Future Subject) An FRC is installed so that the flow rate between two passes may be adjusted. In addition to the above-mentioned, each one thermometer is installed at the desalter inlet of the two passes in order to control the flow rate of each pass so that energy-saving amount of the two passes may be a maximum (the desalter inlet temperatures of the two passes may be the same). This is future work, because two passes is same temperature now. If heat exchanger network is rearranged, it will be installed. CRUDE \ E-132 V-101 E-156 Desalter E-155 E-163 Fig. 1.6 — 65 — (2) Vacuum Distillation Tower 1) Heating Furnace Unit • Introduction of Flue Gas Oxygen Control System The crude oil heating furnace (H-151) is a box type and its oil burner design specification is 30% in excess air rate, being a general type. The furnace is being operated at a combustion capacity very close to the designed combustion load. If fuel oil consumption is reduced by improved energy saving, it leads to the cancellation of the bottleneck. Since oxygen in the flue gas of the heating furnace (H-151) shows a high value of 8.0% at present, and the flue gas temperature is as high as 550°C (1,022°F) or above. Then, its energy saving has room for improvement. Actual conditions of the heating furnace show air leakage from the sight glass, tube header box, and others, requiring repairs similarly to the atmospheric furnace. At the first step, countermeasures should be started from the improvement of these defects, we think. As the second step after that, a system to control the flue gas oxygen by damper control is introduced to reduce energy loss. (For the instrumentation, we already mentioned in the above.) Concretely speaking, we presume the target value is 3.0% or so that has been actually established by Idemitsu. 66 • Installation of Air Preheater At the third stage, an air preheater (APH) is installed for heat recovery from high- temperature flue gas in order to reduce flue gas temperature down to 170°C. The heat- transfer area of the air preheater will be about 850 m2. This can improve the heating furnace efficiency from the actual value of 64% up to 90%, reducing the foci oil consumption by 30%. Table 1.8 H-151 Design Actual 02% APH Reduction Installation Fired Duty 1323 103.1 90.8 72.9 (MMBTU/h) Heater Efficiency 73.0 64.0 723 90.0 (%) 02% 4.6 8.0 3.0 3.0 Flue Gas Temp (°F) 1022 1027 1027 338 fC) 550 553 553 170 Fuel Consumption 3,391 2,673 2355 1,890 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 318 A 783 from Actual Condition (Kg-Fuel/h) A 2,630 A 6,480 (KL/Year) (KL/Year) 2) Heat Exchanger • Hot Charge System of Isomax Feed: (Future Subject) MVGO to be fed to the Isomax unit is hot-charged in order to recover from wasted heat by the rundown cooler (AFC: E-162). The following Table 1.9 shows the heat value of E-162 in actual operation. Table 1.9 Heat Duty of E-162 (MM kcal/h) -67- 3) Improvement of Operation • Discontinuation of Heater Recycle:: (Future Subject) Though the heater recycle offers effects that increase the internal return flow by increased thermal input to the distillation tower to raise the fine distillation effect, the same effect can be obtained by refluxing hot oil directly to the inside of the washing zone in the tower. Therefore, though the feed heating furnace of the vacuum distillation tower (H-151) makes heater recycle of about 5 vol%, this is discontinued to reduce the heating furnace load. The following Table 3.8 shows heating furnace loads (the heat value received by a process fluid) at present, in the case of heater recycle of 3 vol%, and in the case of discontinued recycle respectively. The amount of an optimum hot oil reflux in the case that the reflux is discontinued is to be confirmed by a test run. Table 1.10 Actual Status After Improvement Heater Recycle 5 vol% 3 vol% 0vol% Heat Value 16.72 16.56 16.22 Energy-Saving - 0.16 0.50 Effect Unit: MM kcal/h 68- (3) Straight Run Gasoline Unit 1) Heat Exchanger • Change of Heat Source of Solvent Naphtha Distillation Tower Reboiler : (Future Subject) Though 300#steam is used as the heat source of the solvent naphtha distillation tower reboiler, the heat source of the gasoline-blended naphtha distillation tower reboiler uses LGO reflux. Bottom temperatures of both the towers are 140°C or so, and on the other hand, the duty of the solvent naphtha distillation tower reboiler is as low as a half of that of the other. Therefore, the heat source of the solvent naphtha distillation tower reboiler is changed to the LGO reflux of the atmospheric distillation tower to reduce the use of 300# steam. There was about 5% of the total duty of the tower over head though he duty of the side cooler of the distillation column increased because of the influence on the distillation column was a little. The reboiler is replaced because it becomes a decrease in LMTD and the heat transfer coefficient because the heat source is changed to the light gas oil reflux (Change to the heat exchanger of heat transfer area 290m2). Moreover, the circulating pump improves in the ability because it becomes an increase of the amount of the light gas oil reflux (40% is improved as an amount of the circulation). Table 1.31 Solvent Naphtha Gasoline-Blended Distillation Tower Naphtha Distillation Tower Tower Bottom Temperature 144 140 (C) Reboiler Duty 2.78 6.00 (MMkcal/h) -69 (4) Visbreaker 1) Heating Furnace • Introduction of Flue Gas Oxygen Control System This unit was designed as a Visbreaker, but it is used as an atmospheric distillation unit at present, and the heating furnace load is lower than the designed value. Therefore, oxygen in the heating furnace (H-301) flue gas is as high as 15.1% at present, which loses plenty of heat energy. Actual conditions of the heating furnace show air leakage from the sight glass, tube header box, and others, requiring repairs. At the first step, countermeasures should be started from correcting these defects, we think. As the second step after that, a system to control the flue gas oxygen by damper control is introduced to reduce energy loss. Concretely speaking, we presume the target value is 3% or so that has been actually established by Idemitsu. Since flue gas is low in temperature and little in volume, an APH is not installed. Table 1.42 H-301 Design Actual 02% APH Reduction Installation Fired Duty 168.9 523 392 - (MMBTU/h) Heater Efficiency 75.0 64.2 86.7 - <%) 02% 4.6 15.1 3.0 - Flue Gas Temp (°F) 1038 517 517 - fC) 559 269 269 Fuel Consumption 4,330 1,355 1,016 - (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 339 - from Actual Condition (Kg-Fuel/h) A 2,810 (KL/Year) 70- 2) Heat Exchanger Introduction of Low-level Heat Recovery System using boiler feed water.: (Future Subject) Circulation cooling water, which collects heat from hot process oil, is cooled by the air fan cooler (E-314) and is stored to the water tank, this system is losing heat energy. Then, a heat exchanger for preheating boiler feed water (BFW) is installed before E- 314 cooler in order to promote effective utilization of waste heat energy. Since, however, BFW in this refinery is produced by the hot system and its product BFW is as high as about 90°C already, we decide this low level heat recovery system is impossible, so, leaving this countermeasure as a theme in the future. But, the transverse development of this idea can be expected because it is applicable to the latest oil refinery in Iran. Installation of Heat Exchanger of circulation cooling water Since heat energy is lost by the naphtha product cooler (E-303), a new product cooler is installed to use the heat collected by circulation cooling water to preheat BFW in the above-mentioned system. But, it is used with above system, so, leaving this countermeasure as a theme in the future. (5) Naphtha Hydro-desulfurization Unit 1) Heating Furnace • Introduction of Flue Gas Oxygen Control System Three heating furnaces are of a cylindrical type, and the stripper reboiler heating furnace (H-203) is that into which H-253 (PLAT unit) was modify in 1974 when the plant was modify. Oxygen in flue gas from H-201 (diaige heating furnace) and H-203 is as low as 2.3 to 2.8 % under operation, but that for from H-202 (No. 1 stripper reboiler heating furnace) is as high as 10%, losing plenty of heat energy. Actual conditions of the heating furnace show air leakage from the sight glass, tube header box, and others, requiring repairs. At the first step, countermeasures should be started from correcting these defects, we think. As the second step after that, a system to control the flue gas oxygen by damper control is introduced to reduce energy loss. (The objective is to be H-202.) Concretely speaking, the target value will be 25% or so that has been actually established by Idemitsu. This leads to a reduction in fuel oil consumption of about 1.8 FOE-KL/d. 71- Table 1.53 H-201 Design Actual 02% Reduction Fired Duty 26.2 31.2 31.1 (MMBTU/h) Heater Efficiency 72.0 813 81.6 (%) 02% 43 2.8 23 Flue Gas Temp (°F) 932 (°F) 710 (°F) 710 (°F) fC) 500 377 377 Fuel Consumption 643 688 686 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A2 from Actual Condition (Kg-Fuel/h) A 20 flOVYear) H-202 Design Actual 02% Reduction Fired Duty 14.3 22.8 19.9 (MMBTU/h) Heater Efficiency 80.0 73.7 843 (%) 02% 4.5 10.6 23 Flue Gas Temp (°F) 621 616 616 CC) 327 324 324 Fuel Consumption 351 503 440 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 63 from Actual Condition (Kg-Fuel/h) A 610 (KIVYear) 72- H-203 Design Actual 02% Reduction Fired Duty 18.6 36.9 36.9 (MMBTU/h) Heater Efficiency 62.0 57.2 57.2 (%) 02% 3.25 2.3 23 Flue Gas Temp (°F) 1360 1600 1600 OC) 738 871 871 Fuel Consumption 458 814 814 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base AO from Actual Condition (Kg-Fuel/h) A 0 (KL/Year) 2) Heat Exdianger • Reduction of Reactor Inlet Temperature : (Future Subject) Temperature at the reactor inlet is 340°C, which is higher in comparison with the actual operational results of Idemitsu Refinery. This temperature can be lowered down to 320 °C, provided that the reactor inlet temperature is lowered within product specifications and fuel gas for the heating furnace (H-201) could be reduced. Temperature down to 320°C results in reduction of fuel gas consumption of 153 MMkcal/h. • Effective Use of Platfomer Hydrogen : (Future Subject) At present, platformer hydrogen (hydrogen purity of about 70%) is sent as hydrogen plant feed stock, there are heat energy loss. Then, we think that a fuel gas reduction and effective use of hydrogen in the hydrogen plant can be promoted by passing it through the Naphtha Unifier to improve its purity and feeding it directly to the Isomax. Since, however, this includes many problems such as the life of catalyst for the hydrogen plant and Isomax plant and compressor capacity, we leave it to a theme in the near future. — 73 — [PL-H2 balance] to fuel gas to NH make-up toStablizer H2 73% Recycle gas ^ H2 99% H2 87% ISOMAX Fig. 1.7 3) Operational Improvement • Fuel Gas Saving by Reduced Operation Pressure of Stripper (V-203 and 210) Though the operation pressure of the stripper is 7.7 k, it can be lowered down to 45 k or so based on actual results which have been established by Idemitsu, we think. This improvement can reduce fuel gas for the Reboiler heater (H-212,203).(energy saving 0.11 MMkcal/h). Confirming the absence of operational problems by test runs, this will be developed. 74- (6) Naphtha Reforming Unit 1) Heating Furnace • Introduction of Flue Gas Oxygen Control System Oxygen in flue gas from the reactor feed heating furnaces (H-251, 255, and 252) and stabilizer reboiler (H-254) is as high as 5.6 to 14.7% at present, having much room for energy-saving. Actual conditions of the heating furnaces show air leakage from the sight glass, tube header box, and others, requiring repairs. At the first step, countermeasures should be started from correcting these defects, we think. At the second step after that, a system to control the flue gas oxygen by damper control is introduced to reduce energy loss. Concretely speaking, if the target value is 2.5% or so that has been actually established by Idemitsu, it leads to a reduction in fuel oil consumption of about 38.9 FOE-KL/d. • Installation of Waste Heat Boiler to joined Flue Gas Duct Flue gas from the heating furnaces (H-251, 255, and 252) is as very high as 626 to 770°C in temperature. Then, 3 flue gas ducts are joined and led to a waste heat boiler to generate 300# steam, and waste energy is recovered (tube heat-transfer area: 530 m2). Thus, the fuel oil consumption of the boiler unit can be reduced. (No alteration is made on the PLAT side.) Recovered heat value after a reduction in oxygen (%) is 8.3 MMkcal/h, and the amount of generated 300# steam (superheated steam of 320°C) is 28.9 Mlb/h (13.1 t/h). -75- Table 1.64 H-251 Design Actual 02% WHB Reduction Installation Fired Duty 98.6 755 67.2 67.2 (MMBTU/h) Heater Effidency 51.0 54.9 61.7 87.0 (%) 02% 45 5.6 25 25 Flue Gas Temp (°F) 1539 1431 1431 482 H-255 Design Actual 02% WHB Reduction Installation Fired Duty 108.6 68.4 51.8 672 (MMBTU/h) Heater Efficiency 53.0 48.2 63.7 87.0 (%) 02% 3.3 83 25 25 Flue Gas Temp (°F) 1652 1382 1382 482 CO 900 750 750 250 Fuel Consumption 2,668 1,511 1,144 1,144 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 367 A 367 from Actual Condition (Kg-Fuel/h) F/0:9,300 Kcal/1 A 3,570 A 3,090 F/G: 11,412 Kcal/kg (KIVYear) (©Boiler 76- H-252 Design Actual 02% WHB Reduction Installation Fired Duty 17.9 36.4 9.1 67.2 (MMBTU/h) Heater Efficiency 61.0 17.2 69.4 87.0 (%) 02% 4.5 14.7 25 2.5 Flue Gas Temp (°F) 1247 1158 1158 482 CO 675 626 626 250 Fuel Consumption 439 804 200 200 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A604 A604 from Actual Condition (Kg-Fuel/h) F/0:9,300 Kcal/1 A 5,870 A 400 F/G: 11,412 Kcal/kg (KIVYear) @ Boiler 300#steam Generation 1.4 Mb/h @H-252 H-254 Design Actual 02% WHB Reduction Installation Fired Duty 30.3 37.0 29.4 - (MMBTU/h) Heater Efficiency 78.0 66.8 84.0 - (%) 02% 45 13.3 25 - Flue Gas Temp (°F) 691 582 582 - fC) 366 306 306 Fuel Consumption 745 816 650 - (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A166 - from Actual Condition (Kg-Fuel/h) F/0:9300 Kcal/1 A 1,610 - F/G: 11,412 Kcal/kg (KIVYear) 77 2) Heat Exchanger • Modification of Stabilizer Feed Heat Exchanger (E-254) The high temperature side fluid temperature of the stabilizer feed heat exchanger, 156°C, is higher than its designed temperature, which heat is discharged at the AFC (E-255) in the down stream, losing heat energy. Then, the tube bundle of the stabilizer feed heat exchanger (E-254) is modified to that of a long buffle type to improve heat-transfer efficiency (by 1.8775 MMkcal/h). • Study of Low-Pressure Operation of Reactor (V-251, 252, and 253) : (Future Subject) Reactor system pressure is reduced to improve the RON number of reformate and increase hydrogen generation. But, since a reduction in reactor pressure shortens the catalyst life , it is left as a theme for the near future when demands for hydrogen generation increase. • Study of H2/HC Molar Ratio Reduction : (Future Subject) This intends to promote a reduction in fuel gas for the heating furnace and compressor steam. We think that further reduction 112/HC in molar ratio is difficult, because this plant is being operated beyond the catalyst life ability at present. 3) Improvement of Operation • Optimization of Stabilizer (V-254) Reflux The tower top reflux of the stabilizer is reduced within the LPG product specification to reduce the Reboiler heat duty. The present reflux/feed ratio is 0.45. If it is 0.25 that has been actually operated by Idemitsu refinery, heat-value can be reduced by 0.62 MMkcl/h at H-254. • Lowering Stabilizer Pressure: (Future Subject) Stabilizer pressure is reduced from 250 psig down to 165 psig to reduce the reboiler heat duty by 0.72 MMkcal/h at H-254. 78- (7) Vacuum Gas Oil Hydrocracking Unit: ISOMAX 1) Heating Furnace • Introduction of Flue Gas Oxygen Control System Oxygen percentage in flue gas from the heating furnaces (H430,431,432, and 433) is as high as 3 to 7% at present, and plenty of heat energy is being lost. Actual conditions of the heating furnaces show air leakage from the sight glass, tube header box, and others, requiring repairs. At the first step, countermeasures should be started from correcting these defects, we think. As the second step after that, a system to control the flue gas oxygen by damper control is introduced to reduce energy loss. Concretely speaking, the target value is 2.5% or so that has been actually established by Idemitsu. Installation of Waste Heat Boiler to Joined Flue Gas Duct Flue gas from four heating furnaces is as very high as 430 to 500°C in temperature at present. Then, four flue gas ducts are joined and led to the waste heat boiler to generate 300# steam so that waste heat energy may be collected (tube heat-transfer area: 300 m2). Thus, the fuel oil consumption of the boiler unit can be reduced. (No alteration is made on the Isomax side.) Collectible heat value after a reduction in oxygen percentage is 4.66 MMkcal/h, and the amount of generated 300# steam (superheated to 320°C) is 16.5 Mlb/h (7.5 t/h).. -79 Table 1.75 H430 Design Actual 02% WHB Reduction Installation Fired Duty 16.9 22.4 21.6 21.6 (MMBTU/h) Heater Efficiency 70.0 72.9 75.6 87.0 <%) 02% 4.5 4.6 2.5 2.5 Flue Gas Temp (°F) 1076 934 934 482 CC) 580 501 501 250 Fuel Consumption 416 495 478 478 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A17 A17 from Actual Condition (Kg-Fuel/h) F/0:9,300 Kcal/l A 165 A 610 F/G: 11,412 Kcal/kg (KIVYear) @ Boiler 300#steam Generation 2.5 Mlb/h @H430 H-431 Design Actual 02% WHB Reduction Installation Fired Duty 16.9 22.5 223 223 (MMBTU/h) Heater Efficiency 70.0 76.2 76.5 87.0 (%) 02% 4.5 2.8 23 23 Flue Gas Temp (°F) 1076 900 900 482 CC) 580 482 482 250 Fuel Consumption 416 496 494 494 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A2 A2 from Actual Condition (Kg-Fuel/h) F/0:9,300 Kcal/l A 20 A 610 F/G :11,412 Kcal/kg (KIVYear) @ Boiler 300#steam Generation 2.5 Mb/h @H-431 80 - H-432 Design Actual 02% WHB Reduction Installation Fired Duty 16.9 23.1 223 223 (MMBTU/h) Heater Efficiency 70.0 74.0 76.4 87.0 (%) 02% 4.5 43 23 25 Flue Gas Temp (°F) 1076 m 904 482 (T) 580 484 484 250 Fuel Consumption 416 511 494 494 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A17 A17 from Actual Condition (Kg-Fuel/h) F/0:9,300 Kcal/1 A 165 A 610 F/G: 11,412 Kcal/kg (KIVYear) @ Boiler 300#steam Generation 25 Mlb/h @H-432 H-433 Design Actual 02% WHB Reduction Installation Fired Duty 1283 126.2 117.0 117.0 (MMBTU/h) Heater Efficiency 68.0 763 78.9 87.0 (%) 02% 33 43 23 23 Flue Gas Temp (°F) 1076 810 810 482 CC) 580 432 432 250 Fuel Consumption 3,157 2,657 2384 2384 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A73 A203 from Actual Condition (Kg-Fuel/h) F/0:9300 Kcal/1 A 707 A 2,460 F/G :11,412 Kcal/kg (KIVYear) @ Boiler 300#steam Generation 9.0 Mlb/h @H433 — 81 — 2) Heat Exchanger * Lowering Hydrogen/Hydrocaibon Molar Ratio : (Future Subject) Reducing hydrogen/hydrocarbon molar ratio fuel gas consumption of the heating furnace (H430, 431, and 432) could be reduced. But, since the amorphous catalyst is used , which is likely to cause a shorter catalyst life and other problems, is left as a theme in the near future. 3) Improvement of Operation • Reducing O/H load of Fractionator (V-439) : (Future Subject) At present, since the O/H load on the fractionator is very large, which causes a shortage of cooling capacity. Since the amount of the fractionator intermediate reflux is little, we think that the O/H system load can be reduced by increasing the amount of intermediate reflux within the capacity range of the equipment. Further, if the heat exchanger (E- 441), which is out of operation at present, could be well utilized, the O/H system cooling capacity can be improved. But, this is not energy saving item. V-439 V-442 14433 to Storage ( No flew ) > to Rat Fig. 1.8 -82- (8) Hydrogen Production Unit 1) Heating Furnace • Introduction of Flue Gas Oxygen Control System Oxygen percentage of the heating furnace (H-801) is 9% at present, which is a high value in comparison with the designed value of 1.8%, showing the presence of room for energy-saving. At the first step, we should start from adjustment of the air register with many burners, repairs of joints that cause air leakage by plastering, and the like. As the second step after that, a system to control the flue gas oxygen by damper control is introduced to reduce energy loss. Concretely speaking, the target value will be 3.0% or so. Table 1.86 H-801 Design Actual 02% Reduction Fired Duty 239.7 235.0 211.1 (MMBTU/h) Heater Efficiency 825 70.8 78.9 (%) 02% 1.8 9.0 3.0 Flue Gas Temp (°F) 630 733 733 (°C) 332 389 389 Fuel Consumption 5,890 5,190 4,662 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 528 From Actual Condition (Kg-Fuel/h) F/0 :9,300 Kcal/1 A 5,130 F/G : 11,412 Kcal/kg (KL/Year) 2) Heat Exchanger • Since this unit consumes steam for its own use, waste heat boilers and heat exchangers have been installed already, which leaves little room for study. 83- 3) Operational Improvement ' Reduction in Load of Hydrogen Production Unit by PSA-Processing for part of Platformer Hydrogen Gas as feed gas : (Future Subject) In the case of feed gas for the hydrogen production unit, the designed ratio of platformer hydrogen gas to natural gas is 60:40, but the percentage of natural gas is only 5 to 10% at present. The licenser, W. F. Company, decided that the upper limit was 50 : 50. Steam reformation catalyst is CCI-11-2 or Girdler G-56. But, the hydrogen purity of the platformer hydrogen gas is more than 70%, and the hydrogen is heated by the hydrogen steam reformer in vain, cooled into product hydrogen. Then, it is studied that part of the platformer hydrogen is processed by the PSA unit (Pressure-Swing Adsorption unit) so that its hydrogen purity is improved up to 99% and supplied to the Isomax unit directly. This can lower the load of the hydrogen production unit, reducing fuel consumption significantly. Platformer hydrogen gas of 18 MMscfd (501 kNm3/d) is generated including that flowed to fuel oil gas. If 40% of such hydrogen gas is used as feed gas to the hydrogen production unit as it is, and the rest, 60%, is introduced to the PSA, the load of the hydrogen production unit can be reduced by 25%, and the fuel consumption is reduced down to 11,300 KL/Y. A rough investment amount is 350 million yen ($ 3.5MM). Since, however, it causes a problem on the life of catalyst due to the increased rate of natural gas as well as license-related problems, the matter is left as a theme in the near future including a change to the latest catalyst. * Fuel Gas Reduction by Lowering S/C (Ratio of Steam to Carbon) : (Future Subject) Operational variables in a steam reforming reaction include S/C in addition to pressure and temperature. The plant is being operated at S/C = 6.0. The same unit of Idemitsu is being operated at S/C = 45 to 5.0 for material for naphtha and off gas. Lowering the S/C from 6.0 down to 5.0 can promote a reduction of 3.0 MMKcal/h of fuel. Since, however, this requires monitoring of hot spots caused by the increased surface temperature of the reformer tube and the management of catalyst life, the matter is left at present as a theme in the near future. If the load of the hydrogen production unit lowers, those problems are eased. 84 (9) Boiler Utility Unit 1) Boiler Unit • Introduction of Oxygen Control System There are four boilers of the same capacity (320 Mb/h or 145 t/h), and three of them are being operated usually. They are provided with forced draft fans (PDF). Though the design oxygen percentage in flue gas is 2.6%, the boilers are being operated at 2.6 to 4.0% at present. The oxygen (%) meter was fitted originally, but oxygen % is analyzed periodically to adjust the operation because the meter is off-line at present For a boiler unit the fuel oil consumption of which is laige, it should be controlled by the ratio of air to fuel to reduce heat energy loss. The taiget value of flue gas oxygen percentage is to be 2.6% of the design value. • Installation of Economizer to Flue Gas Duct of each Boiler Flue gas temperature of three boilers are as very high as 380 to 430°C. Then, an economizer is installed to the space in the funnel-connection zone, and heat energy is recovered to preheat boiler feed water (204°F). This can reduce fuel oil consumption at boilers. Though we have studied a reduction in flue gas temperature down to 200°C, it increases the required heat-transfer area of economizer tubes up to 600 m2, which is likely not to allow the space to accommodated the tubes. Therefore, the area was reduces down to 330 m2. As a result, flue gas temperature becomes 310°C. The amount of reduction in fuel oil is shown in Table 7.1. -85 Table 1.97 Boiler-A (Steam: 650 psig / 700° F) Design Actual 02% ECO Reduction Installation Steam Flow MCR OPE OPE OPE (MLb/h) 320 258 258 258 Fired Duty 115.0 96.8 95.0 88.7 (MMBTU/h) Heater Efficiency 80.0 77.0 79.0 85.0 (%) 02% 2.6 4.0 2.6 2.6 Flue Gas Temp (°F) 680 813 813 590 rc> 360 434 434 310 Fuel Consumption 11,600 9,955 9,774 9,120 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 181 A 835 from Actual Condition (Kg-Fuel/h) F/0:9,300 Kcal/1 A 1,500 A 6,900 (KIVYear) (KIVYear) Boiler-B ( Steam : 650 psig / 700° F) Design Actual 02% ECO Reduction Installation Steam Flow MCR OPE OPE OPE (MLb/h) 320 230 230 230 Fired Duty 115.0 96.8 95.0 79.0 (MMBTU/h) Heater Efficiency 80.0 77.0 79.0 85.0 <%) 02% 2.6 2.6 2.6 2.6 Flue Gas Temp (°F) 680 f F) 779 ( F) 779 (° F) 590 f F) fC) 360 415 415 310 Fuel Consumption 11,600 8,670 8,670 8,130 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 0 A 540 from Actual Condition (Kg-Fuel/h) F/0:9, 300 Kcal/1 A 0 A 4,470 (KIVYear) (KIVYear) 86- Boiler-C (Steam: 650 psig / 700° F) Design Actual 02% ECO Reduction Installation Steam Flow MCR OPE OPE OPE (MUb/h) 320 214 214 214 Fired Duty 115.0 773 76.7 73.6 (MMBTU/h) Heater Efficiency 80.0 79.0 79.0 85.0 (%) 02% 2.6 33 2.6 2.6 Flue Gas Temp (°F) 680 (° F) 727 ( F) 727 f F) 590 f F) fC) 360 386 386 310 Fuel Consumption 11,600 7,950 7,888 7370 (Kg-Fuel/h) Reduced Fuel Consumption Rate Base A 62 A 380 From Actual Condition (Kg-Fuel/h) F/0:9,300 Kcal/1 A 510 A 3,150 (KL/Year) (KL/Year) 2.4.3 Potential of Energy Saving in each unit Modification (1) Feasibility Study Results of each unit and Potential of Energy Saving In this study, effect of heat recovery from flue gas and product oil is evaluated by saving of fuel consumption. Increasing of steam generation amount from heat recovery with Waste Heat Boiler can be converted to fuel consumption for producing same steam generation on independent power generation boiler. (a) Atmospheric Crude Distillation Unit (CDU) (b) Vacuum Distillation Unit (VAC) (c) Straight run Gasoline Unit (SRG) (d) Visbreaker Unit (VB) (e) Naphtha Hydro-desulfurization Unit (Unifiner) (f) Naphtha Reforming Unit (Platformer ) (g) Vacuum Gas Oil Hydro-Cracking Unit (ISOMAX) (h) Hydrogen Production Unit (HY) (i) Boiler & Utility unit Potential of Energy Saving for each unit Modification are shown the following tables. Table 2.43-1:02% Reduction case with modification Table 2.43-2: APH, WHB installation case -87 Table 2.43-1 Potential of Energy Saving for each unit Modification : 02% Reduction case with Furnace Modification After 02% Potential of Actual Unit Reduction Energy Saving Furnace UNIT Capacity No. (BPSD) 02% Fuel 02% Fuel Fuel Saving consumption consumption (KL/D) (KL/D) (A KL/D) moi 118,000 4.9 188.6 2.5 1822 6. 4 CDU H102 118,000 5.0 17.2 2.5 16.4 0. 8 \AC 11151 47^60 8.0 67.1 3.0 59.1 8. 0 VLs-Brea H301 15,000 15.1 34.0 3.0 253 8. 5 H201 16,050 28 20.3 2.5 20.2 0. 1 Naph H202 16,050 10.6 14.8 2.5 13.0 1. 8 Unifiner H203 16,050 23 24.0 23 24.0 0. 0 H251 15,660 5.6 49.1 25 43.7 5. 4 PLAT H255 15,660 8.3 44.5 25 33.7 10.8 Former H252 15,660 14.7 23.7 25 5.9 17.8 H254 15,660 133 24.0 25 19.1 4. 9 H430 5,420 4.6 14.6 2.5 14.1 0.5 H431 5,420 28 14.6 23 143 0.1 ISOMAX H432 5,420 4.5 15.0 2.5 143 0. 5 H433 20,000 7.0 78.2 23 76.1 2. 1 27 H2 Plant H801 MMscfd 9.0 1528 3.0 1373 15. 5 A 258MM 4.0 249.8 2.6 245.2 4. 6 BOILER B 230Mlb/h 2.6 2173 2.6 2173 0. 0 C 214Mlb/h 3.3 199.4 2.6 197.9 1. 5 1,449.1 1,359.9 89.2 TOTAL Table 2.43-2 Potential of Energy Saving for each unit Modification : APH, WHB installation case After Potential of After Actual APH,WHB Energy 02% Reduction Fumac installation Saving UNIT e 02 Fuel 02 Fuel 02 Fuel Fuel saving No. % Consumption % Consumption % Consumption KL/D (KL/D) (KL/D) (KL/D) (Actual- After APH) Him 4.9 188.6 25 1822 25 1565 32.1 CDU H102 5.0 17.2 25 16.4 25 16.4 0. 8 me H151 8.0 67.1 3.0 59.1 3.0 47.4 19.7 VisBre H301 15.1 34.0 3.0 255 3.0 255 8. 5 H201 28 20.3 25 20.2 25 20.2 0. 1 Naphtha H202 10.6 14.8 25 13.0 25 13.0 1. 8 Unifiner H203 23 24.0 23 24.0 2.3 24.0 0. 0 H251 5.6 49.1 25 43.7 25 30.8 18.3 445 25 33.7 25 24.3 20.2 PLAT H255 83 former H252 14.7 23.7 25 5.9 25 4.7 19. 0 H254 13.3 24.0 25 19.1 2.5 19.1 4. 9 H430 4.6 14.6 25 14.1 25 122 2. 4 H431 28 14.6 25 14.5 25 127 1. 9 ISOMAX H432 4.5 15.0 25 14.5 25 12.7 2. 3 H433 7.0 78.2 25 76.1 25 68.6 9. 6 H2 Plant H801 9.0 1528 3.0 137.3 3.0 137.3 15. 5 A 4.0 249.8 26 2452 2.6 228.8 21.0 BOILER B 26 2175 2.6 217.5 26 204.0 13.5 C 3.3 199.4 2.6 197.9 2.6 189.9 9. 5 TOTAL 1,449.1 1359.9 1340.6 2085 -89 2.5 Scope of Fund/ Equipment/ Service, etc. To be Bom by Each Party in Implementation of This Project (1) Scope of Responsibility of Japanese Side (a) A feasibility study into details based on this investigation (b) Preparation of a basic implementation plan of the energy-saving project (c) Basic as well as detailed designs concerning facility/equipment to be introduced (d) Purchase of equipment/materials necessary for this energy-saving project (e) Purchase of spare parts of the facility/equipment introduced enough for supply for one year (f) Customer inspection prior to shipment of the facility/equipment introduced (g) Marine transport/clearing customs at harbors/unloading/inland transport of the facility/equipment introduced (h) Preparation of detailed work schedules for work site installation (i) Installation work and remodeling/connection of piping for the facility/equipment introduced (j) Civil engineering/building/framing work, instrumentation/electrical work, thermal insulation/refractory coating/painter's work (k) Education/training of operating/maintenance staff of the facility/equipment introduced (l) Management/supervision of trial runs and performance validation runs (m) Preparation of procedures to measure energy-saving effect and reduction in carbon dioxide emission (2) Scope of Responsibility of Corporation Side (a) Leveling of ground/soil strength survey for the installation site of the facility/equipment introduced (b) Provision of basic design data such as meteorological conditions (c) All the necessary governmental applications/procedures concerning implementation of the project (d) Provision of design drawings/specifications of the existing facility/equipment concerned (e) Purchase and inspection of some of the facility/equipment domestically procured (f) Installation work, remodeling/connection of piping, works concerning civil engineering/ building/ framing/ instrumentation/ electricity, etc. to be conducted by the Corporation (g) Provision of water/ electricity/ steam/ air, etc. for temporary equipment and other services for construction work (h) Operation of trial runs and performance validation runs under management/guidance 90- of the Japanese side (i) Measurement/recording of energy-saving effect and reduction in carbon dioxide emission based on the procedures prepared by the Japanese side 2.5.1 Funds As this project is carried out at an oil refinery which is owned by a national enterprise, the necessary fund, in principle, is to be sufficed within the budgetary framework of Tehran Oil Refinery and NIORDC. On the other hand, as the foreign currency accounts are controlled by the government authority, matters related to financing in foreign currencies and government credits need to be appropriately structured. 2.5.2 Facility/Equipment Except some of the facility/equipment whose procurement is available within Iran, the majority of essential items such as heat exchangers and analyzers need to be imported from abroad. As the cost of import in foreign currencies, also, has to be collectively approved within the framework of this project, discussions with relevant domestic machinery manufacturers need to be conducted during the budgeting session regarding condition setting, etc. 2.5.3 Technical Service Although some technical works concerning designing and construction can be provided by domestic engineering companies, the rest of works which require long experiences such as specification preparation and basic design need technological competence of foreign companies. 2.6 Prerequisites/ Problems, etc. Concerning Implementation of This Project The most important conditions toward realization of this project should indude provision of foreign currendes, import of equipment, and comprehensive coordination capability including, also, technical competence with plenty of experiences. It is, therefore, a prerequisites toward realization of this project to have ability to successfully met the above three conditions. Among the above, provision of foreign currendes which is totally controlled by the Government should be adequately incorporated in the budgetary plan both of the Government and the state-owned oil company. 91- 2.7 Implementation Schedule of Project The period required is estimated to include approximately half a year for preparation of the project's implementation scheme and budgeting, approximately half a year for fund provision, approximately one year for preparation of the order specifications and selection of vendors, and approximately half a year for equipment remodeling work. Table 2.7 Implementation Schedule of Project ITEM 2000 2001 2002 Budgeting procedure Fund provision Order specification preparation Vendor selection Equipment remodeling work Equipment start-up — 3. Implementation of Fund Plan 3.1 Funding for Project Implementation The total amount of funds required for implementation of this project is approximately US$21 million, whose 60% needs to be procured in foreign currencies and 40% in domestic currency. Most of the foreign currencies will be appropriated to settlement of imports of equipment, while the domestic currency will be used to cover expenses for equipment purchasable within the country as well as construction cost required for the equipment remodeling. Table 3.1 Funding Sched ITEM 2000 2001 2002 Budgeting procedure Iranian side Funds on hand Facility/equipment (domestic currency) — cost Borrowed funds Finance (foreign currencies) 3.2 Funding Prospect The prospect of funding is highly positive. As for matters concerning the domestic currency, -92- it is impossible to make any bargaining of oil purchase prices or any addition to product supply prices as prices of all oil products are under strict governmental control. Therefore, they can be procured through adjustment within the equipment investment budget of NIORDC and Tehran Oil Refinery. On the other hand, the foreign currencies are most likely to be provided through project financing from abroad or intergovernmental loans. As this project concerns environmental issues, however, application of environmental loans based on more advantageous financing conditions should be considered for actual preparation of a financing procurement scheme. Financing environments seem to be taking a favorable turn in these days. If no agreement can be reached concerning terms and conditions, partnership with oversea financers should be discussed in order to realize necessary financing. 4. Matters Concerning COM Conditions 4.1 Adjustments to be Made between both Parties toward Realization of Joint Implementation, Concerning Project Implementation Conditions and Scope of Works of Each Party, etc. It is the basic structure of this project that a feasibility study is conducted on the budget of the Japanese Government, based on whose results judgment is to be made on realization of the project together with the local corporations and the government as well. Coordination, therefore, is essential where this matter should be taken as an intergovernmental issue between Iran and Japan. Adjustments should concern fund sharing ratios, interests, and equipment procurement ratios (degree of restriction imposed). 4.2 Possibility of This Project to be Agreed As COM Both NIORDC and Tehran Oil Refinery are willing to realize this project We need to wait for results of further budgeting activity in order to know the Iranian Governments final interest The major discussion seems to lie in a conditional agreement with Green Gas Trading. -93- CHAPTER 3 EFFECT OF PROJECT 94- CHAPTER 3 Effect of Project 1. Effect of Saving Energy 1.1 Technical background to be caused effect of saving energy 1.2 Baseline as basis for calculation of energy saving effect (Basic concept for calculation of energy consumption in case that the project is not carried out) (1) Way of Thinking for baseline of energy saving effect In this study for energy saving, effectiveness of heat recovery from flue gas and product oil is evaluated by increase of furnace efficiency, that is, reduction of fuel consumption in furnace. Increase of steam generation by the heat recovered in WHB is also evaluate by converting the generated steam to fuel consumption in a independent boiler. Thus fuel consumption in furnaces in each unit becomes the baseline for effectiveness of energy saving. 1) Daily operation rate of each unit is set up as the present condition of the throughput 2) Yearly operation days of each unit is set up as 330 day operation.. 3) Fuel consumption is described as standard fuel weight equivalent to usual C-Fuel as Follows. * Calorific value: 9,300 Kcal/1 (9,722 Kcal/Kg), Density: 0.937Kgl (2) Calculation of baseline for fuel consumption in each unit Refer to the next table for whole units. FURNACE DATA: Actual condition (1999.0CT) Calculation of Base Line of Fuel Consumption (Energy-Saving Baseline) of Each Device: Although fuel consumption is normally indicated based on figures of a fuel flowmeter fitted on a fuel line, the flowmeters are either not equipped with or, even if any, left broken for the devices of Tehran Oil Refinery. It was, therefore, decided that the fuel consumption was calculated through use of the following computation program: 1) To calculate a heating value absorbed by heated fluid (stock oil, etc.) from an operating temperature/pressure of each furnace (Absorbed Duty) 2) To calculate a furnace efficiency from exhaust gas temperature of the measured furnace and oxygen concentration in exhaust gas. 3) To obtain a necessary combustion heat from the absorbed duty and the furnace 95 - efficiency. (Fired Duty) 4) To calculate a fuel consumption of the furnace from the necessary combustion heat. Subject Unit of Base line Calculation (Fuel Consumption) are as followed. (a) Atmospheric Crude Distillation Unit (CDU) (b) Vacuum Distillation Unit (VAC) (c) Visbreaker Unit (VB) (d) Naphtha Hydro-desulfurization Unit (Unifiner) (e) Naphtha Reforming Unit (Platformer ) (f) Vacuum Gas Oil Hydro-Cracking Unit (ISOMAX) (g) Hydrogen Production Unit (HY) (h) Boiler & Utility unit Fuel Consumption (Base line) at present operation of above each Unit are shown following table. 96 Table 1.2-1: Fuel Consumption (Base Line) at present operation Actual Operation Furnace Capacity Flue Gas Fuel UNIT No. (BPSD) 02% Consumption (KUP) CDU Him 118,000 4.9 188.6 H102 118,000 5.0 17.2 VAC H151 47,260 8.0 67.1 Vis Breaker H301 15,000 15.1 34.0 Naphtha H201 16,050 2.8 203 Unifiner H202 16,050 10.6 14.8 H203 16,050 23 24.0 Plat Former H251 15,660 5.6 49.1 H255 15,660 83 443 H252 15,660 14.7 23.7 H254 15,660 133 24.0 ISOMAX H430 5,420 4.6 14.6 H431 5,420 2.8 14.6 H432 5,420 43 15.0 H433 20,000 7.0 78.2 Hydrogen Unit H801 27MMscfd 9.0 152.8 Boiler/Utility A 258Mb/h 4.0 249.8 TOTAL B 230Mlb/h 2.6 2173 D 214Mb/h 3.3 199.4 TOTAL 1,449.1 -97- 1.3 Clarified quantity, period and accumulated volume brought by effect of energy saving 1.3.1 Modification Contents and Clarified quantity of energy saving effect (1) Modification Contents and Fuel saving amount on each unit This subject is mentioned on Chapter 2. Clarified quantity of energy saving effect from energy saving project is shown on Table 1.3-1. Table 1.3-1 : Modification Contents of each unit and Clarified quantity of energy saving effect * Installation of Flue Gas 02% Control System include repair work of sealing on air leakage points of furnace wall and duct. (1/2) Quantity of energy saving effect Subject Modification Contents UNIT Fuel Saving Fuel Saving Equipment And Items (KL/D) (Ton/Y) Flue Gas 02% Control System 6. 37 1, 971 H101 (include repair sealing work) CDU Install APH(Air pre heater) 25. 65 7, 932 H102 Flue Gas 02% Control System 0. 80 247 Flue Gas 02% Control System 7. 97 2, 466 \AC H151 Install APH(Air pre heater) 11. 66 3, 607 Vis Breaking H301 Flue Gas 02% Control System 8. 52 2, 633 Reduce Stripper pressure for saving V-203 reboiler duty 0. 28 88 Naphtha (operation improvement) Unifiner H201 Flue Gas 02% Control System 0. 05 16 H202 Flue Gas 02% Control System 1. 86 575 Reduce Stabilizer Reflux Ratio for V-254 saving reboiler duty 1. 60 495 (operation improvement) H251 Rue Gas 02% Control System 5. 42 1, 676 PLAT former H255 Rue Gas 02% Control System 10. 81 3, 343 H252 Rue Gas 02% Control System 17. 78 5, 498 H254 Rue Gas 02% Control System 4. 88 1, 508 WHB Install WHBfWaste heat boiler) and 23. 46 7, 254 Centralize Duct of H251,255,252 Increase Stabilizer feed Pleat E-255 4. 85 1, 500 i Exchanger 98 (2/2) Quantity of energy saving effect Subject Modification Contents UNIT Fuel Saving Fuel Saving Equipment And Items (KL/D) (Ton/Y) H430 Flue Gas 02% Control System 0. 49 152 H431 Flue Gas 02% Control System 0. 05 16 ISOMAX H432 Flue Gas 02% Control System 0. 49 152 H433 Flue Gas 02% Control System 2. 14 662 Install WHB(Waste heat boiler) and WHB Centralize Duct of H430,431,432, 13. 04 4, 031 433 Hydrogen Plant H801 Flue Gas 02% Control System 15. 54 4, 804 Boiler A Flue Gas 02% Control System 4. 54 1, 404 B Flue Gas 02% Control System 1. 24 383 D Flue Gas 02% Control System 1. 55 479 : Install Economizer at exhaust gas ECO 16. 36 5, 059 duct on Boiler-A Install Economizer at exhaust gas ECO 12. 31 3, 806 duct on Boiler-B Install Economizer at exhaust gas ECO 8. 00 2, 474 duct on Boiler-C TOTAL (Fuel Oil Saving Amount) 207. 72 64, 228 -99 1.3.2 Period and accumulated volume brought by effect of energy saving Subject Units are almost constructed on 1968, and operated during 30 yeas, but those units are treated for good maintenance, so we estimate those units could be used after 15 years. And, Period and accumulated volume brought by effect of energy saving on this energy saving project is estimated to be continued during 15 years, because Tehran Oil Refinery may not decide to demolish all units and to reconstruct new units from economical condition of Iran The rate of operation ( rate of crude treating) is most influence on continuance of energy saving effect. From the condition of petroleum demand and oil refining capacity in Iran, nearly 100% operation of actual design capacity is estimated to be continued over 10 years. Therefore, accumulated volume brought by effect of energy saving is calculated with 15 times of 1 year’s effect, and is shown in Table 1.3-2: Table 1.3-2: Modification Items and accumulated volume brought by effect of energy saving (1/2) Quantity of energy saving effect Subject Modification Contents UNIT Fuel Saving Fuel Saving Equipment And Items (Ton/Y) (Ton/l5Y) CDU Flue Gas 02% Control System 1, 971 29, 565 H101 (include repair sealing work) Install APH(Air pie heater) 7, 932 118, 980 H102 Flue Gas 02% Control System 247 3, 705 \AC Flue Gas 02% Control System 2, 466 36,990 H151 Install APH(Air pre heater) 3, 607 54, 105 Vis Breaking H301 Flue Gas 02% Control System 2, 633 39, 495 Naph Unifiner Reduce Stripper pressure for saving V-203 reboiler duty 88 1, 320 (operation improvement) H201 Flue Gas 02% Control System 16 240 H202 Flue Gas 02% Control System 575 8, 625 PLAT former Reduce Stabilizer Reflux Ratio for V-254 saving reboiler duty 495 7, 425 (operation improvement) H251 Flue Gas 02% Control System 1, 676 25, 140 H255 Flue Gas 02% Control System 3, 343 50, 145 H252 Flue Gas 02% Control System 5, 498 82, 470 H254 Flue Gas 02% Control System 1, 508 22, 620 WHB Install WHB(Waste heat boiler) and 7, 254 108, 810 Centralize Duct of H251,255,252 Increase Stabilizer feed Heat E-255 1, 500 22, 500 Exchanger 100- (2/2) Quantity of energy saving effect Subject Modification Contents UNIT Fuel Saving Fuel Saving Equipment And Items (Ton/Y) (Ton/15Y) ISOMAX H430 Flue Gas 02% Control System 152 2, 280 H431 Flue Gas 02% Control System 16 240 H432 Flue Gas 02% Control System 152 2, 280 H433 Flue Gas 02% Control System 662 9, 930 Install WHB(Waste heat boiler) and WHB Centralize Duct of H430,431,432, 4, 031 60, 465 433 Hydogen Plant H801 Flue Gas 02% Control System 4, 804 72, 060 BOILER A Flue Gas 02% Control System 1, 404 21, 060 B Flue Gas 02% Control System 383 5, 745 D Flue Gas 02% Control System 479 7, 185 Install Economizer at exhaust gas ECO 5, 059 75, 885 duct on Boiler-A Install Economizer at exhaust gas ECO 3, 806 57, 090 duct on Boiler-B Install Economizer at exhaust gas ECO 2, 474 37, 110 duct on Boiler-C TOTAL (Fuel Oil Saving Amount) 64, 228 963, 420 -101 1A How to Accurately Check Reduction of Greenhouse Effect Gas (Monitoring Method) Actual distribution ratios of the greenhouse effect gas emission right for CDM projects are subject to further discussion among the nations concerned with CDM. Precise prediction of the result is too difficult at this time. In consideration of the CDM's basic concept and its possible influence over the results, however, an issue concerning monitoring of reduction in greenhouse effect gas emission will become an indispensable issue to be discussed among all parties conducting a project. Based on an assumption thus drawn that monitoring of reduction in greenhouse effect gas emission is essential, outline of the monitoring method and examples of the specific monitoring points are described below: (1) Party Responsible for Monitoring The party responsible for monitoring, in this case, will be Tehran Oil Refinery as the owner of the refinery. In case that the project is carried out under fund from Japan, the second candidate for the monitoring party will be a Japanese firm concerned with the project. (2) Monitoring Points Examples of the monitoring points at which data are collected and energy-saving effect is observed for the devices in operation are as follows: (3) How to Collect Data Both parties including the refinery owner and the project implementation corporations collect data at the Refinery according to the method agreed as to the collection points, collection intervals, etc., which are sent to the Japanese side. (4) Monitoring Intervals Data are normally collected daily at the monitoring points as agreed between both parties and are sent either monthly or once every second month. The Japanese side, based on data thus collected, makes comparisons with target energy-saving values based on its intention to improve energy-saving effect and, further, monitors fuel reduction actually attained through practice of the project based on its intention to reduce greenhouse effect gas. 102 2. Effect of Reduction of Greenhouse Gas 2.1 Technical background to be caused effect of reduction of Greenhouse Gas Effect of reduction of greenhouse gas (C02 in case of this) is based on fuel saving at furnace by means of modification of refining plants for energy saving. 2.2 Baseline as basis for calculation of effectiveness of greenhouse gas reduction (1) Calculation for generation of greenhouse gas Based on consumption of fuel, the generation of C02 as greenhouse gas is calculated in accordance with following IPCC Guideline (IPCC Guideline for National Greenhouse Gas Inventories: Reference Manual/1.4.1 Approaches for Estimating C02 Emission). Based on fuel consumption (Ton/Year) equivalent to C-Fuel oil at plants, it is converted to consumption (Ton/Year) equivalent to standard crude oil(Calorific value: 10,000Kcal/kg) “a” X (Cmde Oil Net Calorific Value: 42.62 Tera-Joule / Kton) =“b” “b” x (Carbon Emission Factor: 20ton of C/Tera-Jule) =“c” “c” X (Factor of Carbon Oxidized: 0.99) =“d” “d” X (Ratio of Molecular Weight of C02 and C: 44/12) = C02 Emission(ton/Y) (Fuel consumption equivalent to Cmde Oil(Ton/Yeary 1,000 X 42.62 X 20 X 0.99 X 44/12 = C02(Ton/Year)) (2) Baseline of generation of greenhouse gas in each unit Baseline of generation of greenhouse gas is calculated in accordance with IPCC Guideline based on 1.2.1(1) Baseline for fuel consumption in each unit -103- Table 2.1 Name of Baseline of Crude Oil Baseline of C02 Generation Unit Fuel Consumption Conversion of Fuel (Ton/Year) (Giga-gram/y) (Ton/Year) Saving (Ton/y) CDU 63,635 63,160 195,420 195.42 Vacuum 20,748 20,590 63,710 63.71 SRG Visbreaker 10,513 10,430 32,280 32.28 Naphtha 18,274 18,140 56,120 51.12 HDS Naphtha 43,691 43,360 134,170 134.17 Reformer ISOMAX 39,053 38,760 119,920 119.92 H2 Plant 47,247 46,890 145,090 145.09 Boiler 206,183 204,640 633,220 633.22 Total 449,344 687,300 1,379,930 1,375.93 -104- 2.3 Concrete quantity, period and accumulated volume brought by effect of reduction of greenhouse gas (1) Calculation of concrete quantity brought by effect of reduction of greenhouse gas Concrete quantity brought by reduction of greenhouse gas is calculated in accordance with IPCC Guideline based on reduction of fuel mentioned in 1.3.1 Plan for modification and concrete quantity obtained by energy saving. (2) Period and accumulated volume brought by effect of reduction of greenhouse gas It is roughly presumed that the life of old plant will be about 10 - 15 years and that of relatively new plant will be about 15 - 25. Therefore, the period brought by the effect of reduction of greenhouse gas by revamping each unit for energy saving would be set up for 15 years. Accordingly, the accumulated quantity brought by effect of reduction of C02 is set up by that of 15 years. 105- (3) Concrete quantity and accumulated volume of reduction of C02 in each unit Table 22 C02 Reduction Crude Oil Name of Fuel Oil Saving Yearly Conversion of Fuel Accumulated Unit (Ton/Year) Reduction Saving (Ton/Y) (Ton/15ys) (Ton/Year) CDU 10,150 10,074 31,170 467,550 Vacuum 6,073 6,027 18,650 279,750 SRG — — — — Visbreaker 2,633 2,617 8,080 121,200 Naphtha 678 673 2,080 31,200 HDS Naphtha 21,274 21,114 65,330 979,950 Reformer ISOMAX 5,011 4,972 15,390 230,850 H2 Plant 4,804 4,768 14,750 221,250 Boiler 13,605 13,503 41,780 616,700 Total 64,228 63,748 197,230 2,958,450 106 2.4 How to Accurately Check Reduction of Greenhouse Effect Gas (Monitoring Method) Actual distribution ratios of the greenhouse effect gas emission right for CDM projects are subject to further discussion among the nations concerned with CDM. Precise prediction of the result is too difficult at this time. In consideration of the CDM's basic concept and its possible influence over the results, however, an issue concerning monitoring of reduction in greenhouse effect gas emission will become an indispensable issue to be discussed among all parties conducting a project. Based on an assumption thus drawn that monitoring of reduction in greenhouse effect gas emission is essential, outline of the monitoring method and examples of the specific monitoring points are described below: (1) Party Responsible for Monitoring The party responsible for monitoring, in this case, will be Tehran Oil Refinery as the owner of the refinery. In case that the project is carried out under fund from Japan, the second candidate for the monitoring party will be a Japanese firm concerned with the project. (2) Monitoring Points Examples of the monitoring points at which data are collected and energy-saving effect is observed for the devices in operation are as follows: (3) How to Collect Data Both parties including the refinery owner and the project implementation corporations collect data at the Refinery according to the method agreed as to the collection points, collection intervals, etc., which are sent to the Japanese side. (4) Monitoring Intervals Data are normally collected daily at the monitoring points as agreed between both parties and are sent either monthly or once every second month. The Japanese side, based on data thus collected, makes comparisons with target energy-saving values based on its intention to improve energy-saving effect and, further, monitors fuel reduction actually attained through practice of the project based on its intention to reduce greenhouse effect gas. 107 3. Possible Influences over Productivity The energy-saving project for a refinery, if conducted, is expected to improve productivity of the Refinery, thus greatly contributing to its overall operation. Especially in Tehran Oil Refinery, there are many cases in which high-temperature exhaust gas is emitted unrecovered because of the fact that fuel costs at the time of construction or late in 1960's were much less expensive and, therefore, recovery measures were not provided thus to save investment in construction. The potential of energy saving, therefore, is considered considerably high. (1) Reduction in Production Cost Remodeling for energy saving of the target devices can reduce fuel consumption, thus lowering production cost of the products. (2) Expansion of Maximum Throughput of Equipment The maximum throughput of equipment, in most cases, is determined by the limit capacity of a furnace. Through addition of heat exchangers, product/reflux heat will be recovered and stock oil will be sufficiently preheated, where furnace load will be lowered and extra capacity added to the furnace (energy-saving effect). This leads to expansion of the maximum throughput of the equipment, bringing about an increase in production capacity. (3) Improvement of Technical Capability For attainment of energy-saving operation, not only remodeling of equipment for energy saving but also properly control/adjustment of the remodeled equipment by operators to assure energy-saving effect is essential. Operators' awareness of necessity of energy saving as well as their technical capability to control/maintain the equipment are required. The higher the technical level of energy-saving operation is improved, the more you have to deal with technology-related fields such as quality control, yield control, safety management, and facilities management. Based on actual results already obtained in various operation sites in Japan, it can be expected that implementation of the energy saving project will bring about improvements in technical capabilities necessary for operation of the Refinery, involving its managers, engineers, as well as operators, contributing to improve overall productivity of the Refinery. 108 - CHAPTER 4 PROFITABILITY -109- ( 1. (I) Fuel Oil (US$/MT) I A; Effect Amount Amount : of : X of Economic P of return return ufdability by by energy enemy Return saving saving for investment modification modification 110 /, is y.K- shown , as -V',ificatk)n amount of sa (2) Amount of investment for energy saving modification 1) The price of each equipment is roughly estimated as Japanese price as the recent gulf- coast price is not observed so much difference from Japanese price. 2) Modification of this PJ is not so big, the investment cost in Iran is higher than Japan. We expect approximate 30% at present. 3) The investment cost is written by US$ unit. 4) The payback year is shown by simplified minimum payback year not including interest and maintenance cost. Amount of return by fuel saving = 7,000 KL/year X 89 US$/KL Payback year = Investment cost / return (3) Modification cost and payback year for each unit Refer to the next table including all units. 1) The below is shown the typical modification cost for furnace. Cost(X 1,000 U$) Modification Item Cost l)Prevendon of Improvement of sealing at furnace wall Air Leakage and duct Improvement of air register 20 2)Control of 02% 02% analyzer 30 in Flue Gas Fuel flow instrument 20 Draft gauge 20 Damper (Actuator ,GO motor) 10 I/P converter controller 10 Instrumentation work 60 Total 150 3)Heat Recovery of Installation of APH 1,000 Flue Gas (APH) (platetype 1,500m2* 2) Installation of IDF 200 Installation of FDF 150 Air duct 150 Flue gas duct 400 Control system 100 Structure 500 Total 2,500 4)Heat Recovery of 300# steam generation 13 t/h 3,000 Flue Gas (WHB) (tube 550 m2) 111- 1.2 Investment in modifications and payout year for energy saving in each unit Calculation Result in each unit is shown in Table 1.2-1 Table 1.2-1 Investment cost and Payout year 0/2)______Investment Effect of Energy Saving Payout Year Cost UNIT Fuel Saving Name Saving Cost (years) (KUY) K US$/Y. K US$ CDU H101 02% Control System installation 2,103 187 170 0.9 H102 APH(Air pre heater) installation 8,465 754 2^00 3.3 H101 02% Control System installation 264 23 170 7.2 (Unit Total) 10,832) (964) (2,840) (2.9) VAC H151 02% Control System installation 2,631 234 170 0.7 H151 APH(Air pre heater) installation 3,849 343 1,500 4.4 (Unit Total) (6,480) (577) (1,670) (29) Vis H301 02% Control System installation 2,810 250 170 0.7 Breaker Naphtha Reduce Shipper pressure 94 8 0 0.0 Uni finer (operation improvement) H201 02% Control System installation 17 2 170 112.1 H202 02% Control System installation 613 55 170 3.1 (Unit Total) (724) (64) (340) (5.3) PLAT Reduce Stabilizer Reflux (operation 528 47 0 0.0 former improvement) 11251 02% Control System installation 1,788 159 170 1.1 H255 02% Control System installation 3,568 318 170 0.5 H252 02% Control System installation 5,868 522 170 0.3 H254 02% Control System installation 1,610 143 170 1.2 Install WHB and Centralize Duct of 7,741 689 3,000 4.4 H251,255,252 Increase Stabilizer feed Heat 1,601 143 200 1.4 Exchanger (Unit Total) 22,704) (2,021) (3,880) (1.9) -112- Table 1.2-1 Investment cost and Payout year ______(2/2) Effect of Energy Saving Investment Payout UNIT Modification Contents Cost Year Name Fuel Saving And Items Saving Cost (KUS$) (Years) (KL/Y) KUS$/Y ISOMAX 11430 02% Control System installation 162 14 170 11.8 H43102% Control System installation 17 2 170 112.1 H432 02% Control System installation 162 14 170 11.8 H433 02% Control System installation 707 63 170 2.7 Install WHB and Centralize Duct of 4,300 384 2^00 6.5 H430,431,432,433 (Unit Total) (5,348) (476) (3,180) (6.7) H2 Plant H801 02% Control System installation 5,127 456 170 0.4 BOILER A-Boiler 02% Control System 1,499 133 170 1.3 installation B-Boiler 02% Control System 409 36 170 4.7 installation D-Boiler 02% Control System 511 45 170 3.7 installation Install Economizer 12,101 1,078 3,000 2.8 at exhaust gas duct on A3JT- Boiler (Boiler Total) 14,520) (1,292) (3,510) (27) Subject Unit Total 68,546 6,102 15,760 2.6 2. Effectiveness of project versus Modification Cost 2.1 Effect of energy saving versus Investment (1) Investment cost of energy saving modification and saving amount of money Investment cost, saving money, and payout year of each modification is shown in Table 1.24 113- Table 2.14 : Investment cost, saving money, and payout year (1/2) Saving Cost Investment cost Modification Contents Payout year Unit Name of eneigy saving of Modification And Items (KUS$/Y) (K US$) &«*■•) CDU H101 02% Control System installation 187 170 0.9 HI 02 APH(Air pre heater) installation 754 2^00 3.3 H101 02% Control System installation 23 170 7.2 (Unit Total) (964) (2,840) (2.9) \AC H151 02% Control System installation 234 170 0.7 H151 APH(Air pre heater) installation 343 1,500 4.4 (Unit Total) (577) (1,670) (2.9) Vis H3Q1 02% Control System installation 250 170 0.7 Breaker Naphtha Reduce Stripper pressure 8 0 0.0 Unifiner (operation improvement) H201 02% Control System installation 2 170 112.1 H202 02% Control System installation 55 170 3.1 (Unit Total) (64) (340) (53) PLAT Reduce Stabilizer Reflux (operation 47 0 0.0 former improvement) H251 02% Control System installation 159 170 1.1 H255 02% C ontrol System installation 318 170 0.5 H252 02% Control System installation 522 170 0.3 H254 02% Control System installation 143 170 1.2 Install WHB and Centralize Duct of 689 3,000 4.4 H251,255,252 Increase Stabilizer feed Heat Exchanger 143 200 1.4 (Unit Total) (2,021) (3,880) (1.9) 114- Table 2.14 : Investment cost, saving money, and payout year (2/2) Saving Cost Modification Contents Investment Cost Payout year of energy saving Unit Name And Items (KUS$) (Year) (KUSS/Y) ISOMAX H430 02% Control System installation 14 170 11.8 H43102% Control System instaslMon 2 170 112.1 H432 02% Control System installation 14 170 11.8 H433 02% Control System installation 63 170 2.7 Install WHB and Centralize Duct of 384 2^00 6.5 H430,431,432,433 (Unit Total) (476) (3,180) (6.7) Hydrogen H801 02% Control System installation 456 170 0.4 Plant BOILER A-Boiler 02% Control System 133 170 1.3 installation B-Boiler 02% Control System 36 170 4.7 installation D-Boiler 02% Control System 45 170 3.7 installation Install Economizer 1,078 3,000 28 at exhaust gas duct on A,B,D- Boiler (Boiler Total) (U92) (3,510) (27) r Subject Unit Total 6,102 15,760 26 -115 (2) Discussion of Energy-Saving Effect in Terms of Investment and Its Feasibility Economic efficiency of energy-saving effect in terms of investment cost is expressed based on the number of years of payout time. Feasibility is high especially for those with the expected payout time of three years or less. For others with the expected payout time of more than three years, it is also worth discussing various factors such as size of investment, possible financing, difficulty of works involved, and procurement of necessary devices. Feasibility concerning each of the subjects under this energy-saving project is discussed below: (a) (a) Control in 02% of all the furnaces should be put into practice, considering that the investment required is small and the expected return on investment is high. (b) (b) Heat recovery through use of air preheaters for exhaust gas should be carried out because of a high return expected on investment. (c) (c) Waste heat boilers should be installed on catalytic reformers as a high return on investment is expected. (d) (d) Heat exchangers should be added not only to those mentioned on the list but also to others having high possible investment returns. 2.2 Effect of Carbon Dioxide Reduction in terms of Investment (1) Basic Concept of Greenhouse Effect Gas Reduction in Terms of Investment Cost Degree of reduction of greenhouse effect gas in terms of investment required for remodeling under this energy-saving project is expressed as project's cost effectiveness regarding greenhouse effect gas. Effect of reduction in greenhouse effect gas emission is expected to last as long as the device remodeled under the project continue operating. The cost effectiveness concerning reduction of greenhouse effect gas is calculated, therefore, with the valid period being set at 15 years for the effect having been described in "Energy-Saving Baseline". (2) Reduction in Greenhouse Effect Gas Emission in Terms of Investment Expected reduction in greenhouse effect gas (carbon dioxide) emission for a period of 15 years in terms of investment on each device is shown in Table 2.2-5: 116 (a) Atmospheric distillation tower (b) Vacuum distillation tower (c) Gasoline manufacturing equipment (d) Visbreaker (e) Naphtha hydrogeneration devulcanizer (f) Naphtha catalytic reformer (g) Vacuum gas oil hydrocracking unit (h) Hydrogen producing unit (i) Boiler utility (3) Discussion of Reduction in Greenhouse Effect Gas Emission in Terms of Investment 1) On the assumption that effect of the energy-saving remodeling lasts 15 years, C02 reduction effect in terms of investment was computed and the result was 0.188 ton/US$ on average. This roughly corresponds to the average energy-saving payout of 2.6 years. 2) However, if the effective period of energy-saving effect is set to 10 years, C02 reduction as cost effectiveness is reduced to 1/1.5 of the above. If extended to 20 years, it is increased to 1.33 times. 3) The above-mentioned C02 reduction effect is assessed based on reduction attained in fuel consumption through energy-saving remodeling, which can also serve as the reference value in discussions for comparison of cost-wise reduction effects when different measures are applied including different types of fuel oils, C02 fixing methods, etc. 4) It is, therefore, necessary prior to the comparison to dearly state the assumptions and the bases for the calculation. -117- Table 2.2-4 :Effect of Reduction in Greenhouse Gas Emission Versus Investment of Energy Saving Modification in each Unit Reduction of Reduction of Investment Saving Greenhouse Gas Greenhouse Gas Unit Name Cost Cost/Year Emission vs. (103US$) (l(f US$/Y) in 15 years Investment cost (Ton/15Yrs) (TonAJSS) CDU 2,840 964 467,550 0.165 \AC 1,670 577 279,750 0.168 SRG — — — — Vis Beaker 170 250 121,200 0.713 Naphtha 340 64 31,200 0.092 Unifiner Plat Foemer 3,880 2,021 979,950 0.252 ISOMAX 3,180 476 230,850 0.073 Hydrogen Unit 170 456 221,250 130 BOILER 3,510 1,292 626,700 0.178 TOTAL 15,760 6,102 2,958,450 0.188 -118 CHAPTER5 DISCUSSION OF POSSIBLE PERVASIVE EFFECT 119- CHAPTER 5 Discussion of Possible Pervasive Effect 1. Pervasive Effect Expected in Target Country Brought about by Technologies Introduced through Project According to NIORDC, in response to the energy-saving law which was enacted in the country late in 1990's, both the head office and each refinery were to start dealing with their issues by setting Energy-Saving Committees. Not so much progress has been made so far and no consensus has been reached as to what and how to do. When NIORDC asked us to dispatch energy-saving advisers for preparation of their master plan for energy saving, we had already accepted to conduct the "Energy-Saving Investigation Concerning Tehran Oil Refinery" as a part of FY1999 Basic Surveys for Promotion of Joint Implementation under NEDO. NIORDC is strongly willing to promote feasibility studies and remodeling for Iran's refineries by taking the energy-saving investigation for Tehran Oil Refinery as a model case. (1) Possible Pervasive Effect Inside Target Corporation The energy-saving investigation of Tehran Oil Refinery, owing to participation of the Refinery's managers and engineers in data collection and energy-saving discussions, could discuss effective plans which made the best use of the existing equipment. The Refinery side, on the other hand, participated in this energy-saving investigation in strong hope of using it as an opportunity of technical transfer. Tehran Oil Refinery consists of two lines of refineries. The energy-saving investigation of this time was conducted for Line 1. Both lines, however, consists of the same types of equipment, have basic designs performed by UOP Co. of U S. (except analyzers designed by Chevron), and have very similar equipment flows. The technology under this feasibility study conducted as the first model case for Line 1, therefore, is most likely to extend to other parts of the Refinery. (2) Possible Peivasive Effect on Other Regions and Other Firms There are nine affiliated oil refineries of NIORDC, which became to be operated each as an independent company in the middle of this year. While independence in refinery operation will continue to expand, requests for improved efficiency and modemization/remodeling of the refineries will, also, increase. Meanwhile, however, budgeting concerning remodeling and investment in new equipment remain under control of the Government through the head office. Six oil refineries out of nine, when Arak (1993), Bandar Abbas (1998), and Abadan (1913) whose scrap and build is already scheduled are not included, are working competitively on improving efficiency and productivity of their refineries. Pervasion of technologies for 120- energy-saving and remodeling is most likely to take place under these circumstances. 2. Effectiveness in View of Possible Pervasion 2.1 Energy-Saving Effect The energy-saving investigation of this time concerned nine devices from Line 1 of Tehran Oil Refinery. As Tehran Oil Refinery consists of two lines having almost the same kinds of equipment, any occurrence of energy-saving effect within Tehran Oil Refinery caused by this investigation is expected to almost double in terms of its effectiveness. Fuel saving effect expected in Tehran Oil Refinery through pervasion of energy-saving measures expected (estimated value): 128,000 tons/year Among Iran's nine oil refineries, total production capacity of the six refineries including, also, Tehran, but excepting Arak, Bandar Abbas, and Abadan whose scrap and build is already scheduled, amounts to about 500 thousand BD. Supposing that the results of this investigation be applied to them, energy-saving effect under this investigation is expected to be quadrupled. Furthermore, as needs for improvement in energy-saving operation exist even in the newly built oil refineries, etc., effectiveness as large as the one above-mentioned can be expected from addition of Arak, Bandar Abbas, and Abadan. Fuel saving effect expected in the country of Iran through pervasion of energy-saving measures (estimated value): 512,000 tons/year (64,000 * 8) 2.2 Reduction of Greenhouse Effect Gas Reduction in fuel consumption through energy saving can immediately lead to reduction of carbon dioxide forming greenhouse effect gas. The measures to reduce emission of carbon dioxide for Line 1 of Tehran Oil Refinery discussed in this energy-saving investigation are, therefore, applicable to line 2 without any modification required. Expected amount of greenhouse effect gas to be eliminated from Tehran Oil Refinery on the whole will, accordingly, be almost twice as much as the amount of this investigation. Reduction of greenhouse effect gas expected in Tehran Oil Refinery through pervasion of energy-saving measures (estimated value): 394,000 tons/year In the same manner, total expected reduction in greenhouse effect gas emission for all the refineries of Iran, excepting the three refineries mentioned under "Energy-Saving Effect" above, will almost quadruple this amount. If the three being added, the expected amount will even double the total sum. Reduction of greenhouse effect gas expected in the country of Iran through pervasion of energy-saving measures (estimated value): 1,576,000 tons/year (197,000 * 8) -121 CHAPTERS OTHER INFLUENCES CHAPTER 6 Other Influences Possible Influences of Implementation of Project over Environmental/ Economical/ Social Aspects, in Addition to Energy-Saving Effect and Reduction in Greenhouse Effect Gas Emission: 1. Influences over Other Environmental Aspects The energy-saving project, through being properly implemented, can reduce fuel consumption as well as air pollutants such as S02, NOx, and soot particles which are discharged in air in flue gas. Especially, Tehran Oil Refinery, although being equipped with visbreakers for treating vacuum distillation residue oil, is not practicing desulfurizing treatment with hydro desulfurization equipment. Both sulfur and ash contents in Refinery's home fuel are very high and emission of S02, NOx, and soot particles from fuel oil furnaces has been causing air pollution problems to the city of Tehran. Although reduction in fuel consumption through energy-saving measures may not directly serve as a fundamental solution for the air pollution, various efforts toward technological improvement including, also, those for energy saving are expected to facilitate improvement in efficiency and modernization of the Refinery equipment on the whole, eventually developing corrective measures in the field of environments. 2. Influences over Economical Aspects The energy-saving project, through being properly implemented, can reduce fuel consumption rates, thus lowering production cost of the Refinery. Productivity of an oil refinery depends on various factors, concerning not only eneigy-saving improvements but also increased yields of clean oil, quality control improvements, reduced maintenance cost, safety control improvement, etc. The energy-saving improvements under discussion, by being implemented as the trigger toward efficiency increase of the Refinery based on a promising financing scheme, will play an important role for increasing productivity of Tehran Oil Refinery. 3. Influences over Social Aspects Two large-scale oil refineries including Arak and Bandar Abbas were built after Iran-Iraq War. Under the economic deterioration which followed the above, no major remodeling has been conducted for the existing refineries. It is, therefore, expected that the energy-saving project will serve as a trigger to deal with remodeling of the existing oil refineries, thus activating domestic equipment manufacturers, construction companies, and eventually the nation's economy on the whole. -123 CONCLUSION Iran produces as much as 5% of world ’s total oil flow, being the second largest oil producing country in OPEC. It is, also, a prominent resource-rich country, owning 9% of the world ’s total oil reserves and 15% of natural gas. Iran has nine oil refineries within the country, whose total refining capacity mounts to about 1,400 thousand BD which is the second largest in the Middle East.Tehran Oil Refinery for which the energy-saving investigation was conducted this time was built in 1968 designed by UOP. As no major remodeling has been performed ever since, a high potential is present for successful energy saving, if remodeling is implemented. Although two large oil refineries were built after Iran-Iraq War, extensive substantial remodeling of the existing refineries has never been performed due to adverse economic environments. Therefore, the equipment still remain without waste heat boilers, from which high-temperature flue gas is directly discharged from chimney stacks. This shows how heat recovery had been neglected to save construction cost when fuel expenses were much cheaper. The energy-saving investigation was conducted for nine devices of Line 1 (125,000BPSD) of Tehran Oil Refinery. The actual survey consisted of two trips for energy-saving investigation each lasting two weeks and a one-week trip for presentation of report and discussion. The investigation was also participated by managers and engineers of Operation Section of Tehran Oil Refinery, who contributed much to the fruitful survey in friendly manners. The energy-saving feasibility study concerned improvements/remodeling plans of the existing equipment, which, therefore, was presented by being divided into the immediate plans and future plans for energy saving. Modification of catalyzer-related devices and introduction of new devices were included in the future plan. From the investigation, pay-back periods on the energy-saving investment were estimated at 1 year for small-scale plans and 3~5 years for medium-scale plans. Total emission of greenhouse effect gas amounts to 1,380 thousand tons/year as the baseline. Expected reduction through implementation of the project will equal 200 thousand tons/year (145%). With the expected reduction under future plans being added, the total sum of 260 thousand tons/year (19%) will be cut down. Possible pervasive effect of about 2 times and of 4~8 times can be expected for Teheran Oil Refinery alone and for overall Iranian refineries respectively. Tehran Oil Refinery, with its intention to take this investigation as an opportunity of technical transfer, has given its full support. They are hoping to promote and develop the energy-saving project by themselves with technical and financial collaboration from Japan. We value this energy-saving feasibility study highly not only because it could raise technically worthwhile results but also because we could conduct the investigation with our stance always kept very close to the actual condition of the Refinery and at the shortest distance toward possible realization of the energy-saving project. Although there are still some difficulties concerning financial support to Iran from Japan, we like to continue our efforts to bring this energy-saving project into shape based on the investigation of this time. 124- Finally, we would like to express our sincere thanks to all the people concerned for their kind cooperation, and hope full-heartedly that this project be implemented in good time, wishing to participate, by doing what we can, in the fight against global warming. -125 127 TO FUEL [-257 E-258 V-256 STAB OVERHEAD V-254 V-251 V-253 H-252 FRW NORTH REF GAS TO HYDROGEN UNIT FEED, ISCXAX NAPHTHA FROM ISOMAX UNIT NUIFINER BOTTOM DESCRIPTION DRAVN ( ‘ F) PLATFORMER UNIT PROCESS FLOW DIAGRAM TEHRAN REFINERY DRAWN CHK'D APP'D 129 GAS TO H2S REMOVAL V-204 V-203 V-210 V-202 NAPHTHA CHARGE C-20IA.B.C SR GASOLINE ISOMAX NAPHTHA DRAWN TTTCT PROCESS FLOW DIAGRAM TEHRAN REFINERY DRAWN CHK'D NONE DATE APP'D H12-3-15 131 MAKEUP H2 ROM H2 COMP SEC TIPI DtHICAL V-447 H-432 V-433 V-43Q TO LOV PRESSURE SEPARETER V-436 P-443 P-442 DEARATED CONDENSATE E—433 RECYCLE FEED FROM V-439 LIGHT ISOMAX GASOLII TO STORAGE H2S SftOCVAL s E-439 LIQUID FROM V-433 LP AMINE TREATING UNIT, LP AMINE TREATING UNIT, V-448 V-439 V-438 V-440 V-441 V-446 V-436 V-443 E-442 P-439 V-437 V-449 V-445 300PSIG STEAM V—444 HEAVY GAS 01 FROM STORAGE ISEJ4AX DESEL TO STORAGE E-455 300PSIG STEAM HVY ISOMAX NOPHTHA DRAWN E-455 TO STORAGE TO PLAT TO STORAGE P-447 TTTTT ISOMAX UNIT PROCESS FLOW DIAGRAM MIN FLQV BYPASS FROM P-431 TEHRAN REFINERY DRAWN CHK'D NONE DATE DUG,NO, APP'D H12-3-15 133- When our readers will open the contents of this report to the public, it is necessary to get the permission of International Cooperation Center, New Energy and Industrial Technology Development Organization (NEDO) TEL: 03(3987)9466 FAX: 03(3987)5103