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Chemical Engineering World

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CEW Contents CHEMICAL ENGINEERING WORLD RNI REGISTRATION NO. 11403/66 Chairman Publisher & Printer Chief Executive Officer

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Jasu Shah Maulik Jasubhai Shah Hemant Shetty Mittravinda Ranjan (mittra_ranjan@jasubhai.com) D P Misra, N G Ashar, Prof. M C Dwivedi P V Satyanarayana, Dr S R Srinivasan, R B Darji, R P Sharma Bernard Rapose (bernard_rapose@jasubhai.com) Harshal Y Desai (harshal_desai@jasubhai.com) Arun Parab, Amol Patkar Abhijeet Mirashi Dilip Parab Brenda Fernandes V Raj Misquitta (Head), Arun Madye

VOL. 49 | NO.8 | AUGUST 2014 | MUMBAI | C150 NEWS ɻ ,QGXVWU\1HZV6 7HFKQRORJ\1HZV12

NEWS FEATURES ɻ Customising Around Customers’ Process Problems / 14

FEATURES ɻ

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Essar Oil Limited (EOL), Vadinar / 36 Advances in Hydroprocessing Technologies / 40 – Dr Anil Kumar Sinha, Principal Scientist, IIP Maintaining Profits in Low-margin Markets / 48 – Jamie Brunk, Manager - Lube Studies, HSB Solomon Associates LLC India: Hydrogen Economy / 50 – K Venkataramanan, CEO & MD, Larsen & Toubro Not a Drop of Oil to the Sea / 62 – Ram K Goyal, Manar Mohamed Salem, BAPCO

MARKET INSIGHTS ɻ My Eco Energy Launches 1 st Bio-fuel Station; 500 More to Come / 68

MARKETING INITIATIVE ɻ Outokumpu Invents for Human Safety in Mines / 69 Fainger Leser: Making the Most of ‘German Expertise’ / 70 ‘ANTICOR’ - Thermoplastic Chemical Storage Tanks / 71

PRODUCTS ɻ / 72

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Numaligarh Refinery Limited (NRL), Numaligarh / 30 – P Padmanabhan, Managing Director, NRL

PROJECT UPDATE ɻ /79

Ad Index / 81 Book Shelf / 82 Interview/ 85 Pre-Investment in Technology Will Continue to Pay Off – R Ramachandran, COO, BORL

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Printed and published by Mr Maulik Jasubhai Shah on behalf of Jasubhai Media Private Limited, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021 and printed at Anitha Art Printers, 29-30, Oasis Ind. Estate, Next to Vakola Market, Santacruz (E), Mumbai-400055 and rd published from 3 Floor, Taj Building, 210, Dr. D N Road, Fort, Mumbai 400 001. Editor: Ms Mittravinda Ranjan, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021.

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CEW Industry News Mozambique to Give Momentum to BPCLÊs Gas Plans Mumbai, India: Bharat Petroleum Corporation Ltd (BPCL) has pinned its hope on their overseas exploration work in Mozambique and Brazil where they have been extensively engaging in exploration activities. Bharat PetroResources Ltd (BPRL), which is the exploratory arm of BPCL, owns a stake of 10 per cent in the Rovuma Basin in Mozambique. The country has the potential of being the third largest LNG player in the world. This would be a very crucial happening for the companyÊs energy business; the gas is most likely to flow by 2018-19. The potential buyers would be the natural markets for gas such as Japan, China, India and South Korea. The consortium would be consulted about the chance of brining gas to India from Mozambique by BPCL as a buyer. Based only on pricing economics, BPCL will decide to bring the gas to India. BPCL does not plan on confining itself in just one country and would be focusing on different countries; the company has already staked its claim in Brazil, Mozambique, India, Indonesia and Australia. The quantum of investment will be decided by the company in the times to come.

Cairn Wishes to Produce More Oil from HomewardÏ New Delhi, India: Cairn India, for implementing its chemical enhanced oil recovery project in Barmer, wishes to reach out to coal vendors like Reliance Industries, Oil India, Indian Oil Corporation and Hindustan Petroleum Corporation. This project would need polymers costing more than USD 300 million and would enable Cairn to produce a higher amount of oil from their Rajasthan oil fields.Enhanced oil recovery is the best way to gain the actual potential of the companyÊs Mangala field in Barmer which is certainly higher than what is being produced currently. About 150,000 barrels of oil is produced from Mangala per day and this is done with the common technology for enhanced oil recovery. The company is estimated to produce approximately 476 million barrels by 2040. Till 2040, the company is expected to produce an increased 74 million barrels through the polymer project and this would be almost 6 per cent more than the existing projection recovery. For this fiscal, Cairn has maintained flat projections as it depends on how successful the project would be.

Joint Venture between Tide Water Oil and JX Nippon Kolkata, India:Ï Tide Water Oil (India) and JX Nippon Oil and Energy, Japan have announced a 50:50 joint venture being formed. This joint venture, JX Nippon TWO Lubricants India Pvt Ltd, will undertake the production and marketing of NipponÊs ÂEneosÊ automotive lubricant in India as well as in Nepal, Bangladesh and Bhutan. Presently, the Japanese firmÊs ÂEneosÊ lubricant is manufactured and sold by Tide Water under a technical agreement. The joint venture will now take charge of this C 250 crore business. Kallol Dutta, Chairman, Andrew Yule Group, expressed that based on the potential OE (original equipment) sales to Korean and Japanese automakers, the decision of forming a joint venture was taken. 6 ŠQCQOP

Government to Have a Comprehensive Fertiliser Policy in Place New Delhi, India: There are plans to have a comprehensive fertiliser policy in place. The Ministry of Chemical and Fertilizer is already in the process of formulating a chemical policy as well and has been consulting with the numerous stakeholders on the same. Ananth Kumar, Chemical and Fertilizer Minister, said that the industry, ministries and other stakeholders have been consulted about the draft on National Chemicals Policy. He also said that the government will take into account the contents of the policy as well as its time of release. The plan is to have a national fertiliser policy as well. So far, for urea and complex fertilisers, there are different set of policies. The government controls and fixes the urea price at present, on the other hand since the subsidy is fixed, companies have the freedom to ascertain the prices of complex fertilisers. The government has felt the necessity of having a new urea policy in place and has stated so in the Economic Survey 2013-14 and the budget. The survey also endorsed the Nutrient Based Subsidy scheme (NBS) and observations on paying the subsidy directly to the farmers. Furthermore, it stated that as a result of the highly subsidised urea price, there is an unbalance in the use of complex fertilisers. This leads to a waste of C 8500 crore on the part of the government as well as the farmers.

PSU Oil Companies must Improve Refining Margins: Oil Minister New Delhi, India: The state-run oil companies have been asked to improve their refining margins as well as the management of their petrol pumps by the Oil Minister, Dharmendra Pradhan, especially if they want to sustain themselves against the competitive private sector. Petrol is already being sold at the market price; also, there has been a significant decrease in the price gap between the market and administered price. It is a cause of concern to the Oil Minister that the average refining margins of PSUs ă IOCL, BPCL and HPCL ă are almost half of the margin of private refiners at just about USD 4.

Draft Policy for Underground Coal Gasification New Delhi, India: The Coal and Power Minister, Piyush Goyal stated that the government is in the process of creating a draft policy for developing Underground Coal Gasification from the countryÊs areas which have unexplored coal and lignite. Goyal further stated that in the Coal Mines (Nationalisation) Act 1973 and Mines and Minerals (Development and Regulations) Act 1957 notified that the production of syngas through Coal Gasification (Underground and Surface) and coal liquefaction are end uses. The identified coal blocks are Yellendu in Telangana and Bandha-Singrauli Main Basin in Madhya Pradesh along with five blocks which have been identified in the UCG development offer. Developing UCG projects in their command area seems to be on the agenda of Coal India Ltd (CIL). DAIE?=H"JCEJAANEJC4KNH@


Chemical Engineering World

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CEW Industry News Siemens Awarded C 228 Crores Order by RIL

Huhtamäki to Buy Positive Packaging

-UMBAI Ï)NDIAÏSiemens Limited announced that it has received orders for approximately C 228 crores from Reliance Industries Limited for supply of four SST 600 Steam Turbogenerator units for its Jamnagar Refinery. Reliance Industries is in the process of expansion of its J3 petrochemical complex at Jamnagar, Gujarat. The scope of the project includes design, manufacture, supply and commissioning of the Steam Turbine Generation units. The Steam Turbines will be manufactured at SiemensÊ Vadodara factory.

-UMBAI Ï)NDIA Huhtamäki has entered into an agreement to acquire Positive Packaging, a privately owned flexible packaging company with nine manufacturing facilities in India and the United Arab Emirates as well as significant business in Africa and other export markets. With the acquisition Huhtamaki continues to implement its strategy of quality growth and strengthens its position in the fast-growing emerging markets. Jukka Moisio, CEO of Huhtamäki Oyj, said, „It further enhances our position in India and provides us with much improved access to the fast growing markets of Africa and Middle East. Many of our global customers are investing heavily to grow in these markets, and now we are even better resourced to help them grow.‰ Huhtamaki will acquire Positive Packaging for a debt free purchase price of Euro 247 million (USD 336 million). The business will become part of HuhtamakiÊs Flexible Packaging business segment. The transaction is expected to be finalised in the fall.

Increased Gas Fertiliser Ministry

Supply

Asked

by

New Delhi, India: The Fertilizer Ministry seeks higher supply of gas for the urea manufacturing plants from the Petroleum Ministry. The ministry is also keen to see if it is viable to have a gas pipeline from Phulpur to Haldia since it could benefit in revival of five closed fertiliser plants namely, Sindri, Baroni, Gorakhpur, Haldia and Durgapur. A meeting was held between Ananth Kumar, Fertilizer Minister and Dharmendra Pradhan, Petroleum Minister where several issues such as gas supply to urea plants, revivial of urea plants and gas pipeline for gas supply to 3 companies ă MFL, MCFL and SPIC ă was discussed. Kumar stated that putting a gas pipeline from Phulpur to Haldia is being seriously considered; it would cost about C 10,000 crore. He added that revival of Takher and Ramagundam urea plants is also being considered. The Fertilizer Minister expressed hope of boosting the domestic urea production through revival of 8 sick units; of which three belong to Fertilizer Corporation of India Ltd (FCIL) and three belong to Hindustan Fertilizer Corporation Ltd (HFCL). In another event Ananth Kumar stated that the chemical industry is pegged at C 8 lakh crore and in FY 2011-12, it had a 2.11 per cent share in the countryÊs GDP. He went on to add that of the entire manufacturing output, chemical sector makes up 15 per cent and the country has about 3 per cent of the chemicals produced all over the world. In 2012-13, the exports of the Indian chemical sector were at C 1.78 lakh crore and made up 9.4 per cent of the total exports.

Berger to Commission Two Plants Kolkata, India: To increase their production capacity in the country, two plants would be commissioned this September by Berger Paints. Abhijit Roy, MD and CEO, Berger Paints, said that in August, the Hindupur plant near Bangalore would go upstream while the other one near Pune in Jejuri would commence operations in September. Berger Paints invested C 140 crore and C 40 crore in the Hindupur and Jejuri plants respectively. Roy stated that in India, Berger is at the number two position and has a 19 per cent market share. He stated further that the company is keenly looking to expand to the South-east Asian countries either by buying out units or setting up greenfield plants. The company has set a target of 15-20 per cent revenue growth this fiscal. 8 ŠQCQOP

Dow Corning Opens New Application Development Center to Support Innovation & Sustainability Needs -UMBAI Ï )NDIA Dow Corning has set up a new Application Development Center in India to serve the growing demand for silicone materials and services in the India region. This center enables state-of-the-art local support for Dow CorningÊs global innovation and sustainability initiatives, as well as closer collaboration with customers to provide solutions customised for the region.

Ku w a i t & UA E E x p r e s s I n t e r e s t i n H i r i n g Oil Storage New Delhi, India: ADNOC and Kuwait Petroleum Corp (KPC) have expressed interest in hiring a part of the strategic storage which is under-construction in India. To meet with IndiaÊs crude oil needs almost 79 per cent of it is imported. So, Indian government is underway with building underground storages at Visakhapatnam, Mangalore and Padur. It would have a capacity to store almost 5.33 million tonnes of crude oil and would cushion the country against any supply disruptions or crude oil shocks. The storage planned in the three locations would suffice the countryÊs requirement of oil for approximately 10 days. The 1.33 million tonnes of storage capacity at Visakhapatnam would be available in September or October and cost C 1,038 crore. The 1.5 million tonnes in Mangalore as well as 2.5 million tonnes in Padur would be ready by mid-2015 and would cost C 1,227 crore and C 1,693 crore respectively. The underground cavities that are being built would be about 3.3 km long and ten storeys tall. With the addition of the storage capacity at Visakhapatnam, India would be in the same league as US, Japan and China who own strategic reserves. DAIE?=H"JCEJAANEJC4KNH@


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CEW Industry News TDLs have a Unique Range of Process Adaption Urdorf, Switzerland: In chemical and petrochemical plants, and refineries, TDLs are becoming an increasingly common sight. The rapid rise of TDL analysers over recent years means they are now well-established as a core gas measurement technology, and their high reliability and low maintenance has made them the gas analyser technology of choice for many companies. However, installation locations and conditions encountered in some processes have limited their application range. Mettler Toledo explains in its new white paper the ability of its oxygen, carbon monoxide, and moisture TDLs to interface directly to the process. This eliminates the need for costly and high-maintenance sample handling systems and gives them an inherent rapid speed of response. This makes them ideal for real-time dynamic measurement in a wide range of process applications.

RusVinyl Starts Trial Production of PVC Kstovo, Russia:Ï The trial batch of PVC was obtained at the Integrated Vinyls plant of RusVinyl in accordance with the start-up schedule. Currently commissioning works at the facility are ongoing with fur ther star t-up of the object for industrial operation in the second half of the year. Guenther Nadolny, CEO, RusVinyl LLC, said, „The plant is in pilot production stage. The quality of the first produced batch is quite high. Currently, precom activities are in progress, once they are over, the enterprise will transfer to uninterruptible production mode.‰ After the start-up, RusVinyl will produce 330 kilo tonnes of high-quality PVC in accordance with the most moder n European technology, which ensures ecological and industrial safety of the technological process in strict compliance with the requirements of the environment legislation of the RF, as well as with international standards in the sphere of ecology and industrial safety. The range of the PVC grades, which will be produced at the facility, are not yet available at the Russian market.

BASF to Expand Its Innovation Campus in China Shanghai, China: On July 28, BASF broke ground on the second phase of its Innovation Campus Asia Pacific at its Pudong site in Shanghai, China. The Euro 90 million expansion consists of an additional regional Research And Development (R&D) building and auxiliary facilities and it will be completed by the end of 2015. With the expansion, BASFÊs regional research capabilities will be further strengthened, focusing primarily on advanced materials and systems as well as adding new areas such as formulations and chemical process and engineering serving growth industries such as automotive, construction, health and nutrition, and home and personal care. In Asia, in addition to the Innovation Campus in Shanghai, BASF also has R&D centres in Japan, Singapore and Korea. An Innovation Campus in India is also planned.  ŠQCQOP

UOP to Meet ChinaÊs Petrochem Demand with Coal-to-Plastics Technology Des Plaines, USA: UOP LLC announced that its licensee, ChinaÊs Wison (Nanjing) Clean Energy Co Ltd, has produced more than 360 million pounds of light olefins at a plant in Nanjing, China, using UOPÊs breakthrough Methanol-to-Olefins (MTO) process technology. The plant, the first commercial-scale facility to use the UOP/Hydro MTO process technology, is successfully meeting expectations for the quality and quantity of light olefins, as well as other performance criteria. The Wison facility is using UOPÊs Advanced MTO process that combines the UOP/Hydro MTO process and the Total/UOP Olefin Cracking process. The process converts methanol, which can be derived from low-cost raw materials such as coal or natural gas, into ethylene and propylene. Based on proprietary UOP catalysts, the advanced MTO process provides high yields with low operating costs. MTO also offers flexibility in the ratio of propylene to ethylene produced, so operators can adjust plant operations to most effectively address market demands. Since 2011, UOP has announced four licenses for MTO technology in China.

Arkema Begins Work at New Methyl Acrylate Plant Colombes, France: Arkema announces the star t-up of its new plant for the production of methyl acrylate, an acrylic acid derivative used in the manufacture of polymers for water treatment, elastomers and engineering polymers. This investment, on its Clear Lake site in Texas, represents the last phase of a USD 110 million investment plan intended to strengthen ArkemaÊs rankings in the US acrylics market. Following the commissioning of a 2-ethyl hexyl acrylate (2EHA) production plant in Bayport in 2012 and the opening of an acrylic acid capacity expansion in Clear Lake in June 2013, the start-up of a 45 kilo tonne methyl acrylate plant represents the last phase of the revamping and capacity increase plan for ArkemaÊs acrylics business in Texas announced in November 2010. This commissioning now makes Clear Lake one of the worldÊs leading manufacturing sites for acrylic acid and derivatives. With the completion of this investment program, Arkema aims to fully capitalise on the growth of acrylic acid and derivatives in the fast-growing markets of water treatment, superabsorbents and enhanced oil and gas recovery.

Essar Projects Gets 1st Contract from Saudi Aramco Dubai, UAE: The Hydrocarbon SBU of Essar Projects, a global EPC contractor, has secured its maiden contract from Saudi Aramco, the national petroleum and natural gas company of the Kingdom of Saudi Arabia. The USD 54 million-EPC project involves the upgradation of a crude stabilisation unit at AramcoÊs Abqaiq Plant in Shaybah, one of the largest oilfields in the world. The scope of work entails engineering, procurement and construction of a crude tank, replacement of crude pumps and associated civil, piping, electrical and instrumentation facilities. The project is scheduled to be completed in 29 months. Essar is already executing five other projects in the region in the hydrocarbon sector. DAIE?=H"JCEJAANEJC4KNH@


CEW

Technology News Unique Process for Creating Fuel and Chemical Compounds Found

A New Method Offers Increased Biofuel Yields from Biomass

Wisconsin, USA: A team of researchers at the University of Wisconsin-Madison has identified the genes and enzymes that create a promising compound - the 19 carbon furan-containing fatty acid (19Fu-FA). The compound has a variety of potential uses as a biological alternative for compounds currently derived from fossil fuels. Researchers from the Great Lakes Bioenergy Research Center (GLBRC) discovered the cellular genomes that direct 19Fu-FAÊs synthesis. The novel 19Fu-FAs were initially discovered as ÂunknownÊ products that accumulated in mutant strains of Rhodobacter sphaeroides, an organism being studied by the GLBRC because of its ability to overproduce hydrophobic, or water-insoluble, compounds. These types of compounds have value to the chemical and fuel industries as biological replacements for plasticisers, solvents, lubricants or fuel additives that are currently derived from fossil fuels. Read more on http://www.news.wisc.edu/

Riverside, USA: A team of researchers, led by Professor Charles E Wyman, at the University of California, RiversideÊs Bourns College of Engineering have developed a versatile, relatively non-toxic, and efficient #HARLES-#AI A0H$ STUDENTWORKINGWITH way to convert raw agricultural and forestry residues and other plant matter, known 7YMAN as lignocellulosic biomass, into biofuels and chemicals. The patent-pending method, called Co-solvent E n h a n c e d L i g n o c e l l u l o s i c Fr a c t i o n a t i o n ( C E L F ) , b r i n g s researchers closer to solving the long elusive goal of producing fuels and chemicals from biomass at high enough yields and low enough costs to become a viable alternative or replacement for petroleum-based fuels and chemicals.

Genomatica will Develop Biobased Processes for Nylon Intermediates San Diego, USA: Genomatica announced that major nylon intermediates - including Hexamethylenediamine, Caprolactam and Adipic Acid (HMD, CPL and ADA) ă are the focus of its third publiclydisclosed development programme. Genomatica is developing complete process technologies for the biobased production of these intermediates, which it will then license to major firms in the nylon value chain. These three chemicals, with a total market of over USD 18 billion per year, are used primarily in the production of nylon 6 and nylon 6,6, also referred to as the polyamides PA 6 and PA 6,6. The companyÊs nylon intermediates programme follows commercialisation and licensing of its GENO BDO process, and strong progress with its butadiene programme, which has gained over USD 100 million in industry support, with Versalis and Braskem as anchor partners. Its nylon intermediates programme aims to deliver biobased processes for the production of HMD, CPL and ADA.

Conver ting CO2 to Methanol through Nanostructured Metal-Oxide Catalyst Upton, USA: Highly reactive sites at interface of two nanoscale components could help overcome hurdle of using CO 2 as a starting point in producing useful products. Scientists at the US Department of EnergyÊs (DOE) Brookhaven National Laboratory have discovered a new catalytic system for converting Carbon Dioxide (CO 2) to methanol - a key commodity used to create a wide range of industrial chemicals and fuels. With significantly higher activity than other catalysts now in use, the new system could make it easier to get normally unreactive CO2 to participate in these reactions. The research team included scientists from Brookhaven, the University of Seville in Spain, and Central University of Venezuela. Read more about the research on http://www.bnl.gov/ 12 ŠQCQOP

The key to the UC Riverside technology is using tetrahydrofuran (THF) as a co-solvent to aid in the breakdown of raw biomass fe e d s t o ck s t o p r o d u c e va l u a bl e p r i m a r y a n d s e c o n d a r y fuel precursors at high yields at moderate temperatures. Those fuel precursors can then be conver ted into ethanol, chemicals or drop-in fuels. Read more about the research on http://ucrtoday.ucr.edu/

European Commission Names Bio-innovation as EuropeÊs Top Tech Startup Rotterdam, Netherlands: Parx Plastics, a Dutch-Italian bio innovator in antibacterial plastic technology, is announced by the European Commission as one of the top 3 tech start-ups in -ICHAELVANDER*AGT #%/  Europe in the prestigious Tech All 0ARX0LASTIC PRESENTING DURING4HE&OUNDERS&ORUM Stars competition 2014. Parx Plastics works with innovative biocompatible technology to make antibacterial plastics. The company HQ is in Rotterdam, The Netherlands, with its research facilities in Bologna, Italy. By applying biomimetics and Nano-technology, a method was developed to make an intrinsic change to plastic resulting in a mechanical/physical property that acts against bacteria and microorganisms. T h e Pa r x p a t e n t e d t e c h n o l o g y d o e s n o t u s e c h e m i c a l s, biocides, heavy metals or nano-particles. It makes use of one of the bodies most abundant trace elements, Zinc. „The technology is fully biocompatible, it is not toxic and it does not leach out of the materials and yet it kills 99 per cent of the bacteria and microorganisms that are on the surface of a product within 24 hours,‰ according to Michele Fiori, CTO, Parx Plastics. The 100 per cent safe and biocompatible technology developed by Parx Plastics to incorporate an antibacterial proper ty into any kind of plastic is named to be a game-changer and leading EUÊs star tup scene. DAIE?=H"JCEJAANEJC4KNH@







CEW News Features

Customising Around the Customers’ Process Problems From being slotted as process chemical company catering to refinery and ethylene plants, Dorf Ketal has come a long way. It has established a great presence in refining, ethylene, organic titanates and lubricant additives component business. The company has recently diversified into specialty chemicals and wishes to expand into the upstream business through acquisitions.

W

ith the manufacturing sector in India picking up and numerous expansions happening globally, the market for process chemicals and additives for refineries, petrochemicals, fuels, lubricants and oilfield industries are poised for growth. The market for high performance lubricant additives is experiencing a boost. The biggest driver for this impetus is the evolving regulations around the world that emphasise the need for enhanced fuel efficiency, health as well as environmental policies. A new analysis recently released by Frost & Sullivan states that in 2013, the Global Lubricant Additives market saw revenue of USD 11.77 billion and by 2020 it is expected to touch USD 16.28 billion. In light of the market shaping up, CEW spoke to Dorf Ketal to understand their thoughts on the market, how their business has evolved and their plans in the near future. Dorf Ketal is also one of the top 28 chemical companies in India out of the 400 ICC members who have got the responsible care accreditation. Dorf Ketal is a research focused company. The firmÊs innovative chemistries are reflected by numerous patents and a corporate vitality index of more than 35 per cent. „In the process chemicals business, the company has 30 granted or filed US patents in the recent few years. The global portfolio of patents within Dorf Ketal is around 300. By way of acquisitions, Dorf Ketal also owns around 50 US patents. One of the patented products has also been awarded the prestigious Department of Scientific & Industrial Research (DSIR) National Awards for Outstanding In14 ŠQCQOP

house R&D Achievements which was given by former President of India, Dr APJ Abdul Kalam,‰ says Subodh Menon, Founder and Director of Business and Operations, when asked about the model of diversification that the company has undertaken. Through this model, the company takes into account the customerÊs issue and customises the solutions accordingly. Customised solutions are tailored to specific needs of the customer. Solutions include combating process problems ranging from prevention, maintenance, and even remediation of operating conditions that threaten the reliability of refinery and ethylene plants. According to him, „Innovation is a constant process for Dorf Ketal, since in this process, a problem is taken back to the drawing board where new molecules, new technologies are looked at. So, it would be apt to say that the companyÊs growth or diversification model is driven by innovation. To retain our competitive edge we have to innovate today, tomorrow and for days to come. That is the key.‰ Additionally, Dorf Ketal has also been innovating internally through IT; the company believes in extending its innovation approach towards IT integration for smooth operations. In order to encourage global collaboration and ideation across locations, Dorf Ketal undertook a global IT consolidation exercise. The company engaged KPIT, a leading global technology provider, for ERP consolidation by setting up a full-fledged Offshore Dedicated Center (ODC), ensuring timely application

Subodh Menon Founder & Director - Business & Operations, Dorf Ketal

support, infrastructure management and zero downtime. The complete global infrastructure and support has been moved to India. Expansion through Acquisition and Infrastructure Investments The company invests in new technologies through research & acquisitions. The company has been consistently acquiring companies globally to further consolidate its position. It acquired UOPÊs refining chemical and plastic additives business in 2003 and ExxonMobilÊs lubricant additives component business in 2007. Dorf Ketal also acquired an Indian company in Organic Titanates space in 2008. As a logical extension and to create a global foot print, Dorf Ketal acquired DuPont Chemicals and Fluroproducts in 2009, which had a major presence in the organometallic titanates business. To further expand their market share in this niche sector, it also acquired intellectual properties from John Matthey which greatly strengthened Dorf KetalÊs position in the DAIE?=H"JCEJAANEJC4KNH@


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CEW News Features market. The company continues to scout for the right acquisition opportunities which will synergise with their current business verticals. Dorf Ketal is making infrastructure investments by setting up new R&D centres and application labs with the state-of-theart machinery and a team of dedicated doctorates. The India research centre, which is situated at the outskirts of Mumbai spearheads key innovation projects and ensures the technology availability to the customers globally. Subodh Menon believes that to provide customised solutions, it is essential to be closer to the markets. He further adds that the application labs located in US and Singapore ensures the innovative technologies are delivered at the customerÊs door step. The company also has both basic and application research centre in Brazil, over and above the Centre of Excellence in India. Dorf Ketal has also started a major upstream business in Brazil with its foray into Oil Fields chemicals. Subodh Menon states, „The reason why Dorf Ketal preferred to begin Oil Fields Chemicals operations in Brazil is because of opportunities/challenges posed by the Brazilian market and at the same time the Dorf Ketal team at Brazil is highly capable to formulate like it is done in India. Hence replicating our Indian model was seamless. We plan to globalise molecules coming out from Brazil be it in the Canadian, European or the Middle East markets‰. Commenting on the shale gas boom, P N Ramaswamy, Director ă Technical, says that several downstream companies would consider shale gas based feedstocks but the industry has set its eyes on the aspect of sustainability. When asked about entering the pharma business, Subodh Menon said that the company did make some fine chemicals and also looked at the chemicals needed in the pharma industry but at present have no intention of entering that business. Delivering Performance, Efficiency and Reliability to the Petrochemical Industry Dorf KetalÊs rapid growth in petrochemicals arena is the direct result of listening to 16 ŠQCQOP

what customers need and then developing problem solving services and unique chemistries that work. The customers face a dynamic ever-changing production environment. Dorf KetalÊs dedicated research team has created a broad portfolio of solutions that deliver the highperformance, efficient, and reliable results the industry demands ă be it ethylene styrene or butadiene production. The recent innovation in the styrene business by Dorf Ketal is expected to reduce the toxic nitro compound by 50 per cent. This is in line keeping with Dorf KetalÊs vision for responsible care. Proven in the WorldÊs Largest Refineries Dorf Ketal is a Tier 1 strategic supplier for many of the worldÊs largest refineries and petrochemical companies. One out of three large refineries worldwide (400+ kbd) and two of every 10 of the worldÊs ethylene plants rely on Dorf Ketal chemical treatment to extend run length and extract maximum value from opportunity crudes and changing feed stocks. Dorf Ketal treats more than one of every 10 refinery desalters worldwide, including units at some of the largest refineries in the world, in Malaysia, Thailand, India, China and the Middle East. Dorf KetalÊs COKERMAX is a breakthrough programme for Delayed Coking to improve liquid yield by 1-3% without changing coke morphology or distillate quality. Lubricant Additives - More of a Component Manufacturer Subodh Menon emphasises that Dorf Ketal considers itself more of a component manufacturer and not a package provider. The company deals with components that are comprised in the package. He further added that the company entered the lubricant additives arena only because it acquired that business from ExxonMobil; he stressed upon the fact that it was again a components business not packages. Ramaswamy explains that there are a number of different lubricant additives such as dispersants, detergents, emulsifiers, friction modifiers, etc.

Since lubricants majors prefer to formulate their own packages that will enhance performance of their products, there is a unique space for component suppliers such as Dorf Ketal. Subodh Menon predicts that the lubricant market will continue to grow at a fast pace, which is backed by the Frost and SullivanÊs analysis. Conclusion Dorf Ketal is the epitome of a young company that has discovered game changing technologies. Their research, pilot plants, and modelling capabilities together with the people behind them are dedicated to getting the right solutions for their customers, today and tomorrow. With the refineries, petrochemicals, fuels, lubricants and oilfield industries poised for growth having a fullfledged and state-of-the-art testing and evaluation system would be necessary and this can be done through investments in R&D facilities and a team of qualified scientists. This is where Dorf Ketal would have a cutting edge over its competitors as they have been one step ahead, having based their growth model on innovation and customised solutions. After setting up the worldÊs largest plant for producing Organic Titanates, the companyÊs focus would be on removing antimony out of the PET bottles manufactured by the packaged drinks manufacturers completely so that it will not be hazardous for the health. This would be achieved with its Tyzor Activate PET catalysts which are hydrolytically stable titanate catalysts specifically designed for PET bottle and film resin. Dorf Ketal plans on entering this avenue of business with new patented products through new innovated chemistries for which the trials are going on. Subodh Menon concludes that his vision for the company is to make Dorf Ketal a well-known name in the specialty chemicals market globally.

DAIE?=H"JCEJAANEJC4KNH@


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CEW Features Lead Feature

Bharat Petroleum Corp Limited (BPCL), Mumbai -UMBAIREFINERYCOMMISSIONSA##2REFORMERTOMAXIMISEPRODUCTIONOF-OTOR3PIRIT “Mumbai refinery is implementing an integrated state-of-the-art crude/vacuum unit replacing its old/ vintage crude/vacuum units. This unit, in addition to improving mechanical integrity, safety, distillate yield, fuel & loss performance, would allow the refinery to maximise crude intake and create opportunity for setting up residue upgradation unit.” 333UNDERAJAN %XECUTIVE$IRECTOR-UMBAI2ElNERY "0#, BPCL has 4 refineries strategically located at Mumbai, Kochi, Bina (Central India) and Numaligarh (North East) catering to length and breadth of the country. It has a pan India presence, thereby supporting its marketing network.

B

oth Mumbai and Kochi refineries of BPCL have witnessed significant increase in GRM. While adherence to the plan; reduction in Octroi under-recovery on a/c of implementation of the State Surcharge (SSC) Recovery Scheme; higher distillate yield (although HS crude processing was higher); reduction in year-end crude inventory; maximisation in value added products (% increase wrt last year) such as MS (5%), HSD (2.5%), LOBS (4.4%) etc; implementation of yield improvement measures like - Shell PFIs under (Refinery Performance Improvement Programme) RPIP programme, APC in DHDS, maximisation of bitumen, continued usage of RLNG, recovery of H2 ex CRU off gas, maximum SK absorption in HSD, etc; and better product cracks are the attributable for Mumbai Refinery (MR), GRM at Kochi Refinery (KR) has been benefitted with better product cracks; improved reliability of major units; and improved steam management leading to lower fuel and loss. MR has recently been accredited with ISO 50001 (Energy Management).

18 ŠQCQOP

Preparing for the Competition With current installed capacity of 30.5 MMTPA, BPCL has „various strategies for capacity expansions among the group refineries,‰ says Sunderajan. He reveals that MR is implementing an integrated state-of-the-art crude/vacuum unit replacing its old/vintage crude/ vacuum units. This unit, in addition to improving mechanical integrity, safety, distillate yield, fuel & loss performance, would allow the refinery to maximise crude intake and create opportunity for setting up residue upgradation unit. He further talks about Kochi refinery, „KR is implementing a capacity expansion project - Integrated Refinery Expansion Project (IREP), to achieve crude capacity

of 15.5 MMTPA by 2015-16. A delayed coker is also being installed as a part of this project for residue upgradation.‰ BPCL also plans to raise capacity of its Bina refinery in Madhya Pradesh to 7.8-8.0 MMTPA and expand the Numaligarh refinery to 9.0 MMTPA from the current 3 MMTPA. Numaligarh refinery in Assam has started manufacturing value-added products which include microcrystalline and paraffin wax which has a huge market in India and are currently being imported. Sunderajan informs that FY 2013-14 saw BPCL commencing full-fledged project activities at KR for the IREP which is aimed

The Current Installed Capacities of BPCL Refineries Refinery

Installed Capacity (MMTPA)

Mumbai (MR)

12.0

Kochi (KR)

9.5

Bina (BORL)

6.0

Numaligarh (NRL)

3.0 DAIE?=H"JCEJAANEJC4KNH@


CEW Features BPCL Witnessed Significant Increase in GRM Over the Years Year

MR

KR

BPCL

2012-13 (PPAC format)

4.67

5.36

4.97

2011-12 (Old format)

3.12

3.20

3.15

2011-12 (PPAC format)

1.73

3.09

2.29

at taking the refining throughput to 15.5 MMTPA from current levels of 9.5 MMTPA. IREP is not just an expansion project but also aimed at improving complexity from current levels of 6.3 to 9.6, thereby giving flexibility to even process opportunity crudes such as high TAN crudes. Addition of delayed coker unit to upgrade low value heavy fuels from the entire 15.5 MMTPA refinery into high value distillate products and coke will make the refinery world class, in the years to come. He says, „The completion of these and already discussed efficiency improvement or upgradation projects will enhance value to BPCL and all its stakeholders. Hence aggressive timelines for project execution have been set to ensure averting of time or cost overruns and also accrual of earlier pay back.‰ Products MR has been in the forefront for producing and supplying environment friendly and Euro compliant fuels, well ahead of the government mandates as amply demonstrated time and again over the years. Sunderajan says, „BPCL-MR developed a strategic road map for implementation considering both short and long term auto fuel The Typical Product Mix Ć

Light distillates of about 27% wt on throughput consisting of poly propylene feed stock (C3), LPG, solvents, aromatics, MS & naphtha

Ć

Middle distillates of about 53 % wt on throughput consisting of SKO, jet fuel, HSD, LDO & base oils

Ć

Heavy distillates of about 14% wt on throughput consisting of FO, LSHS, bitumen & sulphur

 ŠQCQOP

product quality mandates in line with Dr Mashelkar committee report. As a first step, MR commissioned Refinery Modernisation Project (RMP) in 2005, consisting of Integrated Crude/Vacuum Distillation Units, Hydro Cracker, Hydrogen Generation and associated treatment facilities & revamped Catalytic Reforming Unit (CRU) for meeting the 2005 mandates.‰ He further reveals that in 2006, MR set up a base oil plant for production of environmentally friendly superior grade Group 2 base oils. With this, MR was one of the first refineries in India to supply Group II+ superior grade base oils, which is used as feedstock in Lubricants manufacture. According to Sunderajan, to meet the BS III/BS IV fuel mandate from April 2010 for auto fuels, MR implemented FCCU Gasoline splitting facility and revamped DHDS/hydro cracker. All the above projects have been implemented and BPCL Mumbai refinery has been supplying BS III/BS IV auto fuels as per mandate given under the current Auto fuel policy. „With a view to further increase Motor Spirit (MS) production, MR has recently commissioned (March 2014) a state-of-the-art Continuous Catalytic Regenerative (CCR) Reformer. This project enables upgradation of Naphtha for maximising production of BS-III / BSIV Motor spirit,‰ he continues. MR has also progressively implemented plant modifications to maximise the highly valorised C3 production from its refinery, which is used as petrochemical feedstock. Over the years, MR has been consistently manufacturing other niche products like benzene (PC Feedstock), toluene (PC

feedstock/explosives), SBP/hexane/MTO (solvents), MTBE (MS additive for captive use), viscosity grade bitumen (road laying), etc. Over the years, keeping the customer in focus, MR has been improving the quality and meeting new parameters of these products, as required by the customers. Value Additions MR is implementing the following projects to increase value additions and thus the profitability of the refinery: Ć CCR has been recently commissioned. Sustained operation of the same would enable upgradation of naphtha for maximising production of BS-III/ BS-IV Motor spirit Ć An integrated state-of-the-art crude/ vacuum unit replacing vintage crude/ vacuum units. This unit, in addition to improving mechanical integrity, safety, and distillate yield (3%); fuel & loss performance (0.75%wt) would also enable MR to maximise its crude throughput Ć Naphtha Isomerisation unit, which would upgrade naphtha to more value added MS product Ć Flare gas recovery facility to reduce flare losses and reducing emissions Ć A new diesel hydrotreater unit for production of 100% Euro-IV and Euro-V diesel Ć Various low capital cost energy saving and yield improvement schemes/projects identified during „Refinery Performance Improvement Programme (RPIP)‰ with a reputed international consultant Further, a configuration study has been carried out through a reputed consultant, which is in final stage. This would help MR in finalising the strategy for residue upgradation which needs to be adopted for increasing profitability, discloses Sunderajan. „MR is also implementing APC programmes in all its process/ utilities units for effective optimisation and to get maximum output by management of

MR has been in the forefront for producing and supplying environment friendly and Euro compliant fuels, well ahead of the government mandates as amply demonstrated time and again over the years. DAIE?=H"JCEJAANEJC4KNH@


CEW Features multiple variables and constraints. Blend Property Control or Blend Ratio Control is being implemented for MS, HSD & FO which would improve profitability by reducing giveaway and ensuring first-time right online batch preparation. Further, latest monitoring & optimisation tools which have been implemented, like Aspen suites, Business Process Management and Information (BPMAI) are also being utilised for effective control of various parameters which would improve the bottom line,‰ he adds. Refining and Petrochemical Integration Sunderajan expresses his views on refining and petrochemical integration and believes that world-class companies would leverage and synergise on raw materials or product integration and the total supply chain across the globe to successfully penetrate the markets. He exemplifies, „A refining cum marketing company would integrate into their business the upstream E&P sector as also the downstream petrochemical sector so as to secure the cheap feed stock availability and overcome the cyclical issues associated with product volatility.‰ Low value streams from refinery like refinery off gas, propane/propylene, butane/butylenes/butenes, naphtha, kerosene, residues, coke, etc can be valorised multi-fold by integration with Petrochemical (PC) plants which convert these cheap feedstock into very high value PC or chemicals, he reveals further. „Even the return or reject streams from PC plants like Propane, Pygas, heaviers from Naphtha crackers, etc can be valorised by refiners into LPG / MS / HSD etc.‰

 ŠQCQOP

According to Sunderajan, leveraging on such integration it is possible to reduce freight cost and transit losses, optimise working capital and increase savings on capex. He adds, „As a corporation, we have already entered into the upstream sectors. This would provide us a hedge in the years to come. Even though it is prudent to integrate in the downstream PC sector, space constraint at MR does not allow us to do so. However, as discussed earlier, we do have in our product portfolio C3, benzene, toluene, naphtha, LABFS, etc which are used as PC feedstock by our customers. We do maximise these high value products based on the demand, so as to improve our profitability. Hence these existing assets are sweated based on the demand.‰ Challenges The quality of fuel products is being made stringent day-by-day due to pressures from various agencies, government bodies and increasing awareness of the common man, and this is what Sunderajan believes, the biggest challenges faced by refiners. He comments, „This would change the ball game for refiners as it necessitates setting up of very costly treatment units, at times without commensurate benefits from the market. This could make or break a refiner since it erodes their operating margins. We are trying to gear up for this by implementing some bottom upgradation measure in tandem with the treatment units and also educating all the allied agencies on bringing in prudent and practical changes, which would benefit the country in a holistic manner.‰

MR when commissioned in 1955 was in the outskirts of the city. However, as is the case with many of the refineries, the city has developed around it and hence today you find it in the middle of a populous inhabitation, he continues. He adds that this brings tremendous pressure on operating refineries and also inhibits refinery growth (in terms of land availability for expansion). „We at MR have implemented various safety/ environmental measures so that our operations remain environmentally and safety neutral. We have educated the community around us and also provided them aids through our CSR activities so as to take them along with us.‰ Post complete deregulation, the OMCs are going to face severe challenges on sustaining competitiveness considering world scale, operationally efficient and complex refiners will be in a position to offer products at competitive costs, Sunderajan predicts. In todayÊs volatile global market place, refineries are constantly challenged to maintain growth and profitability in the face of constant demand for top quality products at low prices. Sunderajan believes that a highly competitive market in combination with rising energy and feedstock costs require industries to increase production while decreasing operating costs. This leads to a relentless pressure to shorten lead times and to cut costs without sacrificing product quality or standards of service, Sunderajan concludes.

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CEW Features Lead Feature

Guru Gobind Singh Refinery (HMEL), Bhatinda (0#, -ITTAL%NERGY,IMITED(-%, AIMSATCATERINGTOTHENEEDSOF.ORTHERN)NDIA

“With Indian refineries going for accelerated capacities, the footprint of India on the global refining map as a major player is worth taking note of. The refining industry in India is all set to see an increase in margins and product portfolio.” 0RABH$AS -ANAGING$IRECTOR#HIEF%XECUTIVE/FFICER (-%,

According to 0RABH$AS, the Rationale behind commissioning of the 9-MMTPA Guru Gobind Singh Refinery (GGSR) operated by HPCL-Mittal Energy Limited (HMEL) at Bathinda in Punjab is to leverage the proximity of the deficit in petroleum products in the Northern parts of the country.

T

he Guru Gobind Singh Refinery (GGSR) is a zero bottoms, energy efficient, environmental friendly, high distillate yielding complex that produces clean fuels and polypropylene meeting Euro IV specifications by processing heavy, sour and acidic crudes, claims Prabh Das, Managing Director & Chief Executive Officer, HMEL. In an exclusive interview, Das reveals that the facility is a state-of-the-art complex refinery that has the ability to process relatively economically priced tough (heavy and sour) crudes that are selected through the best-in-its-class LP software that has been tuned to deliver the best possible margins for the given refinery configuration. „We are continuously on the lookout for and regularly undertake low investment Gross Refining Margins (GRM) improvement projects which would help the company in performing well in volatile scenarios,‰ he adds. Current Capacities and Product Mix GGSRÊs current capacity is 9 million metric tonnes per annum (MMTPA); 26ŠQCQOP

however, Das reveals, the refinery can be run on higher level as well. „The product mix is always worked up based on economic viability and demand in the market place. Northern India faces a deficit in petroleum products, and the Guru Gobind Singh Refinery leveraging on its proximity to the northern states namely Punjab, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Uttar Pradesh, the National Capital Region of Delhi and parts of Haryana and Rajasthan is ideal to fill the fuel deficit that the region faces,‰ Das adds. Das further details and adds that refinery is marketing all liquid products through HPCL or their nominated companies. He informs that the three solid products i.e. Polypropylene (PP), Sulphur and Pet coke are being marketed by HMEL directly. „These products have been well received by the industries in North as well in other parts of the country. While Sulphur and Petcoke are mainly consumed within Northern region, PP

is being marketed on an all India basis through our network of distributors in all parts of the country. HMEL is currently focused on meeting the demand in the domestic market,‰ says Das. A small quantity of Pet coke is also exported to Nepal and Pakistan to seed the market looking at opportunities for these products in the near future in those regions. He further updates that product evacuation of all liquid products from the refinery is done by rail, road and through dedicated pipelines. Solid products are evacuated through rail and a very minimal quantity is transported through road. Most of the product evacuation is through pipeline in the most efficient manner. Mother Polypropylene Plant The refinery includes a world class mother polypropylene plant for developing several medium and small scale industries. Very few refineries in the country have the capacity to produce polypropylene. Das reveals DAIE?=H"JCEJAANEJC4KNH@


     



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CEW Features Fact Sheet The typical slate for name plate capacity (MMPTA) of HMEL: Light Distillate: 2.1, Middle Distillate: 4.5, and High/Solid Distillate: 1.5 Set up keeping factors such as convergence of refining and petrochemical operations, HMEL produces clean fuels meeting Euro-IV specifications The refinery has a blending facility to process fuels between 15 API â&#x20AC;&#x201C; 55 API The refinery has the capability to make specialty products such as Hexane and Mineral Turpentine Oil (MTO) GGSR received the BS OHSAS 18001:2007 certification in January 2014 given by the British Standards Institution (BSI) for Occupational Safety Management system

that HMELĂ&#x160;s refinery has created a big potential for industrialisation of the area. â&#x20AC;&#x17E;If capitalised, it could lead to development of petrochemical industry in Punjab bringing prosperity to the state,â&#x20AC;° Das adds. He further explains that petrochemical and other value addition units such as Aromatics manufacturing

Äź2J?KJRAJPEKJ=H DU@NK?=N>KJO ?=J LH=U = >EC NKHA EJ OA?QNEJC &J@E=Â&#x2020;O AJANCU OA?QNEPU 1DAOA =NA JAS =NA=O  =J@ PDANABKNA D=RA PK >A ?=NABQHHU JQNPQNA@ 0K &J@E=J NABEJANO SEHH JAA@ PK CA=NQLBKNPDAEIL=?PKB?D=JCAEJPDAQL?KIEJCQJ?KJRAJPEKJ=H AJANCUO?AJ=NEKÂ&#x2021; facilities enhance the profitability of refineries to a great extent as petrochemicals and aromatics command a significant premium over liquid and gaseous fuel products. For instance, the petrochemical polypropylene is sold at a premium over liquid fuels. This is precisely the reason why HMEL chose to set up a polypropylene plant with a capacity of over 400KT per annum. Niche Products HMEL has the capability to make specialty products such as Hexane and Mineral Turpentine Oil (MTO). Hexane is mainly used as solvent in the solvent extraction units for vegetable oil. It is also used by the pharmaceutical industry as a solvent. MTO is a clear, transparent liquid which is a common organic solvent and is used in painting, decorating, dry cleaning etc. Additionally, Das adds, it is one of the few refineries in India that has the capability to produce eight grades of polypropylene which have a wide variety of film, injection moulding and woven & non-woven fabric manufacturing applications. The new product in the pipeline is asphalt which is primarily used in road construction, as

the glue or binder mixed with aggregate particles to create asphalt concrete. The refinery has been operating at full capacity. Challenges When asked about the current biggest challenges and HMELĂ&#x160;s approach to towards addressing the same, Das replies that the biggest challenges currently facing the Indian refining and petrochemical industries include the squeezing GRMs, capital intensive nature of new projects, high rates of interest, volatility in exchange rates, plateauing of growth rates of certain fuel products. He further comments on other external future unforeseen challenges that the Indian refiners will have to be prepared for and adds that unconventional hydrocarbons can play a big role in securing IndiaĂ&#x160;s energy security. These are new areas, and therefore have to be carefully nurtured. Shale gas and solar power can become a major source of energy, provided these assets are developed to their full potential. Indian refiners will need to gear up for the impact of change in the upcoming unconventional energy scenario.

Guru Gobind Singh Refinery, Bhatinda

28Â&#x160;QCQOP

DAIE?=H"JCEJAANEJC4KNH@


Chemical Engineering World

!A?AI>ANÂ&#x160;


CEW Features Lead Feature

Numaligarh Refinery Limited (NRL), Numaligarh .2,S'2-DURING AND WEREAMONGSTTHEHIGHESTINTHEINDUSTRY

“During 2012-13 and 2013-14, NRL’s GRMs were USD 10.52/bbl and USD 12.09/bbl respectively, which were amongst the highest in the Industry. We are always looking at opportunities to maximise value addition.”

00ADMANABHAN -ANAGING$IRECTOR .UMALIGARH2EFINERY,IMITED India has witnessed rapid proliferation of refining capacity in recent times. As on 1 st April, 2014, India’s refining capacity was 215 MMTPA (4.4 million barrels per day). Capacity enhancement by another 90 MMTPA (1.9 million barrels per day) is in the pipeline. With such a significant capacity, India is expected to emerge as a global refining hub in foreseeable future, says 0ADMANABHAN. Current Capacities and Product Mix Padmanabhan updates on the capacity and reveals that the existing capacity of NRLÊs refinery is 3.0 MMTPA. Product slate of NRL comprises LPG, Naphtha, Motor Spirit, Aviation Turbine Fuel, High Speed Diesel, Superior Kerosene Oil, Raw/Calcined Petroleum Coke and Sulphur. Paraffin and Microcrystalline Wax are being added to the product slate after commissioning of the Wax plant, which is in final stages of completion. „Over 85 per cent of NRLÊs products are marketed in Northeastern, Eastern and parts of Northern India by its holding company Bharat Petroleum Corporation Limited (BPCL),‰ he asserts. While commenting on export basket, Padmanabhan states that with regard to international market access, NRLÊs products have since long been exported to Bhutan. Intermittent exports to Bangladesh through river route have taken place. NRLÊs Naphtha is being periodically exported through the Haldia port. 30 ŠQCQOP

Padmanabhan says, „An agreement has been signed with an oil company in Nepal for supply of MS and HSD from NRLÊs Siliguri Terminal, located about 35 km from Nepal border. Supplies to this effect are expected to materialise very shortly. NRL is also pursuing an Indo-Bangla product pipeline for sustained product export to Bangladesh. This project is actively supported by the governments in both nations. Actions have been initiated for

conducting route survey and detailed feasibility studies for the project. Export of auto fuels to Myanmar might well be another emerging possibility.‰ Niche Products Commenting on niche products, Padmanabhan explains that after commissioning of the wax plant, NRL would be in a position to produce upto 50 TMT wax per annum, which would be nearly 40 per cent of domestic demand. „NRLÊs Wax

Product Basket Product Current production Production – post expansion/integration with (Existing & New) (FY 2013-14) in TMT petrochemical unit LPG Naphtha MS ATF SKO HSD RPC/CPC Sulphur

53 161 309 73 172 1719 68 4

(Would be determined after finalisation of DFR for Refinery Expansion

DAIE?=H"JCEJAANEJC4KNH@


CEW Features Fact Sheet Current capacity (yearly) 3.0 MMTPA (million metric tonnes per annum) Targeted enhanced 9.0 MMTPA. Expected completion capacity (by year …) of NRL’s refinery expansion project would be known after finalisation of project DFR Nelson Complexity

NRL’s Nelson Complexity Index is of the order of 9.0

Crude Mix

NRL currently utilises only domestic crude from North Eastern oil fields

Proposed Investment

Investment in NRL’s refinery expansion from 3.0 to 9.0 MMTPA along with a crude oil pipeline from an Eastern port to Numaligarh is estimated in the range of C15,000 crore

Existing units

Crude/Vacuum Distillation Unit; Delayed Coker Unit; Hydrocracker Unit; Hydrogen Generation Unit; Coke Calcination Unit; Motor Spirit Plant and Sulphur Recover Unit

Proposed new units

Would be determined after finalisation of DFR for refinery expansion project

Products for Indian market LPG, Naphtha, Motor Spirit, Aviation Turbine Fuel, High Speed Diesel, Superior Kerosene Oil, Raw/Calcined Petroleum Coke and Sulphur. Paraffin and Microcrystalline Wax would be available shortly after commissioning of the wax plant Products for export

Diesel, Naphtha, Motor Spirit.

Current crude processing 9.0 TMT/day capacity per calendar day Targeted crude processing 27.0 TMT/day capacity per calendar day could potentially be exported as well. NRLÊs Wax could be utilised in candle, cosmetic and pharmaceutical industries. Needle Coke is another speciality product of NRL, for which trial production has started. Apart from above, possibility of producing other value-added products such as Linear Alkyl Benzene (LAB), Hydrogenated Pyrolysis Gasoline (HPG) and Para Xylene are being explored,‰ he continues. Needle Coke is primarily a requirement for steel and aluminium industries. LAB, HPG and Para Xylene are primarily utilised in detergent, fuels, petrochemicals and chemical industries respectively.  ŠQCQOP

Refining ă Petrochemical Integration „Without any doubt a Refining ă Petrochemical integration is the best practice in our industry,‰ Padmanabhan emphasises. „It not only helps in value addition but also protects revenue generation by being a natural hedge against fuel or petrochemical price volatility. Venturing into petrochemicals production is expected to be a realistic proposition after implementation of the refinery expansion project,‰ he explains further. NRL is looking at synergies with Brahmaputra Cracker and Polymers Limited (BCPL) which is implementing the Assam Gas Cracker Project at Lepetkata in AssamÊs Dibrugarh District. The proposition would however be driven by factors such as adequate demand generation in proximate markets. Refinery Configurations Various refinery configurations for NRLÊs expansion project are being studied and the final configuration would be determined after finalisation of the Detailed Feasibility Report (DFR). NRLÊs Nelson Complexity Index consequent to refinery expansion is expected to be relatively high due to advanced secondary processing envisaged for incorporation. Although, higher complexity factor would mean higher investment, on the brighter side, it would permit increased value addition. NRL has been on the forefront of energy conservation and environmental protection. The companyÊs certification under ISO 50001 for energy management and ISO 14001 for environment management besides bagging three energy conservation awards from the Centre for High Technology (CHT) in 2013 bears testimony to the statement. Challenges The major challenge before NRL pertains to time bound implementation of the refinery expansion project after finalisation of the Detailed Feasibility Report. This project is essential for NRL to achieve economic scale of operations for ensuring sustenance and growth. NRLÊs refinery expansion from 3.0 to 9.0 MMTPA is envisaged to be facilitated through processing imported crude that would be transported from an Eastern port to Numaligarh through a dedicated pipeline. This is largely expected to address the feedstock availability issue. Process configuration and technology selection for the new units are expected to be the best available globally in order to maintain the companyÊs legacy of delivering high quality products. Crude oil security, as Padmanabhan says, is another formidable challenge before Indian refiners. He is of the opinion that adequate supplies of crude oil at cost effective levels are imperative requirements for sustained profitability. The other challenge, particularly for those pursuing refinery expansions and in case of new refineries, pertains to obtaining statutory clearances in time bound manner. These are macro level issues to be addressed through representation with the government authorities. NRLÊs biggest challenge is „to maximise its profitability without depending on subsidies.‰ DAIE?=H"JCEJAANEJC4KNH@


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CEW Features Lead Feature

Essar Oil Limited (EOL), Vadinar %/,AIMSATDOUBLINGITSRETAILOUTLETSTOABOUTINNEXT YEARS “Essar Oil has partnered with best-of-breed technology vendors in setting up the processing units, some of which are the largest facilities they have set up. Its Crude Distillation Unit (CDU) has the tallest crude column at 90 mts and provides excellent swing capabilities in terms of crude intake.” Essar Oil operates India’s second largest single location refinery in Vadinar, Gujarat, with a nameplate capacity of 20 MMTPA. Vadinar Refinery is one of the most complex refineries in the world with a Nelson Complexity Index of 11.8. This means that the refinery is capable of processing a high proportion of Heavy and Ultra Heavy Crudes and yet produces Euro IV and Euro V grade fuels. Industry Scenario While global refining industry continues to face several challenges in terms of weak demand and new capacity addition, India is expected to witness stable growth for petroleum products for many years to come on the back of factors like strong GDP growth, industrialisation, growth of nuclear families, urbanisation, rising aspirations and consumption. Indian refining capacity, at 217 mmtpa, is fairly balanced compared to actual demand after adjusting for fuel & loss, higher capacity utilisation and export oriented refinery. At 5 per cent PA expected growth rate, India’s surplus capacity will get absorbed in about next four - five years. Future expansion, unless they are brownfield, are going to be extremely challenging given the issues relating to land acquisition, environmental clearance etc. Hence, India may turn to a products deficit market with expectation of reasonable growth in demand in about next five years. Vadinar Super Site Vadinar Refinery commenced commercial production in 2008 with a capacity of 10.5 MMTPA and complexity of 6.1. Soon afterwards the company undertook a massive Expansion and Optimising Project, which took the capacity to 20 36 ŠQCQOP

MMTPA and complexity to 11.8. Since it began commercial production, Vadinar Refinery has been operating above its nameplate capacity. In FY13-14, which was the first full year operation of fully expanded capacity, Vadinar Refinery processed 20.23 MMT of crude, of which 93 per cent was of heavy and ultra heavy variety. These grades normally have a price advantage as all refineries are not able to process such grades. Yet, 84 per cent of the refinery’s product slate consisted of valuable light and middle distillates, demonstrating full benefit of increased complexity. For the full year, Essar Oil reported revenues of C1,07,190 crore, becoming one of India’s top 10 companies by revenues. It reported a CP GRM of USD 7.98/bbl for the full year. All this is achieved with strict adherence to health, safety, and environmental norms. Essar Oil is committed to sustainable form of development

and adopts globally recognised best practices towards this. Essar Oil has been ranked the second highest scorer amongst all companies this year, and the highest scorer amongst energy companies for three years in a row, by CDP in carbon disclosure. Essar Oil is also the only Energy sector company so far to have appeared in the all India ‘Carbon disclosure leadership Index” of CDP, scoring an all India second place this year.’ Vadinar is an extremely strategic location, which is just a few days sailing time away from the world’s largest crude sources in the Middle East and also near to major domestic and international demand sources. Vadinar Refinery Complex is a ‘Super Site’ with a fully integrated infrastructure. Essar Oil’s all weather captive port has a capacity to handle 27 MMTPA of crude and 14 MTPA of products. Additional infrastructure exists to evacuate products through rail or roads through fully mechanised Rail and Truck gantries. Vadinar also is the

In FY13-14, which was the łrst full year operation of fully expanded capacity, Vadinar Rełnery processed 20.23 MMT of crude, of which 93 per cent was of heavy and ultra heavy variety. These grades normally have a price advantage as all rełneries are not able to process such grades. DAIE?=H"JCEJAANEJC4KNH@


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CEW Features

Truck Gantry

only refinery in the country with its own coal fired power plant which fully meets the refinery’s power and steam requirements. This is providing a GRM uplift of USD 1.0 - USD1.5/bbl as against using liquid fuel, which traditionally refineries use. Vadinar also has seawater desalination unit to use seawater for refinery processes, thereby reducing dependence on freshwater. Essar Oil has partnered with best-of-breed technology vendors in setting up the processing units, some of which are the largest such facilities they have set up. Its Crude Distillation Unit (CDU) has the tallest crude column at 90 mts and provides an excellent swing capabilities in terms of crude intake. Similarly the VGO Hydrotreater (VGO HT) is amongst the largest such units of its kind and produces premium quality low sulphur high octane products. Again, the Delayed Coker Unit (DCU) is one of the largest coker units in the world and

is capable of complete bottom of barrel conversion into value added products. Currently, Essar Oil is undertaking a series of low capex and short gestation optimisation projects across its refinery and marketing value chain under the banner of Optima Plus, which upon completion would provide a GRM uplift of about USD1.0 - USD1.5 per barrel over a period of next two to three years. These projects include setting up one more Hydrogen Manufacturing Unit and a conversion of existing VGO into more valuable distillates. Downstream Opportunity Essar Oil has a nationwide network of over 1,400 operational retail outlets, with another 300 in various stages of commissioning. With government raising diesel prices in small doses on a monthly basis, we expect that over the next couple of months, this segment will become completely deregulated, providing a big opportunity for diesel retail sales. Petrol is already deregulated and is being sold from our outlets. We are currently reviewing our retail strategy to tap the growing petrol demand by additionally targeting city centres for new outlets. Going forward, in addition to the DODO (Dealer Owned Dealer Operated) model we currently operate on, wherein the franchisee makes all the investment in setting up to the retail outlet, we will additionally have outlets which would be Company Owned Company Operated (COCO) and Company Owned Dealer Operated (CODO). Over the next three – four years, Essar Oil envisages to have a retail network of about 3,000 outlets.

Hazira Petrolstation

38 ŠQCQOP

Courtesy: Essar Oil Limited

DAIE?=H"JCEJAANEJC4KNH@


CEW Features Technical Article

Advances in Hydroprocessing Technologies Hydroprocessing is used in every major relnery. It is also termed as the work horse of the relnery as it is the hydroprocessing units that ensure several signilcant product quality specilcations, provide feeds of desired specilcations for other units and increase the relnery margin. This article explains about this element and talks about hydrocracking and hydrotreating technologies.

I

ncreasing awareness about the impact of environmental pollution by automobiles has shifted the responsibility of pollution control to the refineries side. As a consequence of this, the gasoline and diesel sulfur specifications are made increasingly stringent. The sulfur level is being lowered, all over the world to less than 10 ppm for gasoline and diesel and 0 ppm for fuel cell application range. To achieve such low sulfur levels in fuels, the activity of the present catalyst need to be increased to about 7 to 10 times. In order to reach such low level sulfur many approaches are required among which variation of support is an important one.

In modern refinery, sulfur in fuels is removed by means of hydrotreating process, in which the Hydrodesulphurisation (HDS) catalyst is the core of the technique. Due to increasingly heavier crudes, it has however become difficult to achieve the future sulfur specification with current catalysts and processes [1]. To meet the challenges related to the HDS of various petroleum fractions, development of newer generation of catalysts is a continuous target of all the catalyst vendors and institutes involved in this area. There have been various attempts to improve catalyst activity such as changes in active metal composition, use of different types of active metals, additives and supports etc, among which variation of support is an important one [2-4]. Most of the HDS catalysts employed for industrial applications are molybdenum based promoted with cobalt and nickel and supported on alumina. The effect of support on catalyst activity has already been subject of intense research; however, their low surface area, limited thermal stability and unsuitable mechanical properties hindered commercial exploitation 40 ŠQCQOP

of these materials. CoMo catalysts that have a higher desulphurisation activity are able to reduce sulfur in gas oil to 10 ppm. This catalyst is based on newer catalyst technologies that enhance the number and activity of active sites [5].

Nanosized core-shell type metal/metal oxide mesoporous nanocatalysts and nanostructured porous thermally stable crystalline alumina & silica coated alumina are some of the potential candidates for these high temperature

Development of Hydrocracking Technology Year of Development

Need/Description

1915-1927 ă Coal to Fuels Need for fuel, abundance of brown coal, hydrocracking of coal to gasoline, high temperature/high pressure hydrogenation with thermal cracking 1925-1930 ă Heavier Crude Heavy petroleum oils into fuels to Lighter fuels 1939-1945 ă Two Stage Environmental regulations, impurities, sulfur, metals, Hydrocracking Process need for aviation kerosene 1960-1970 ă Advent of Zeolites Increased cycle oils, demand for diesel and jet increased, and Modern Hydrocracking low cost catalyst with low temperature and pressure. 1980-2000 Process

ă

Matured Environmental friendly products, advances in analysis techniques, crystallographic data, improved acidic, structure selective catalysts

2000-Present

Hydrocracking of residues and of renewable oils for renewable hydrocarbon fuels

Development of Hydrotreating Technology Year of Development

Need/Description

1964

Base oil hydrotreating, upgradation and stabilisation were the main target.

1974

Advances analysis techniques provided crystallographic data leading to better understanding and modelled CoMo 2S 4 form for HDT activity. Increased active phase loading was possible.

1980 to 2000

Stringent product specifications and environmental regulations (Metals, Aromatics, Sulfur) resulted in development of newer NiMo/CoMo systems such as trilobes and tetra lobes

2005 to present

Miniature microfluidic HDS units for cleaner feedstocks to be used in fuel cell hydrogen reformer; ULSD; S-free feed for fuel cell DAIE?=H"JCEJAANEJC4KNH@


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CEW Features three reasons, ie, low reactivity of 4,6-DMDBT, inhibiting effects of PAH, H 2S and N 2 compounds, and polyaromatics competing with S compounds on surface of hydrotreating catalysts and H 2S affects direct C-S hydrogenolysis. Technologies have been developed, including that by us, for hydroprocessing various plant-derived oils like soybean oil, sunflower oil, palm oil, rapeseed oil, tall oil, jatropha oil and waste cooking oil either directly or coăprocessing with gas oil [6-8]. There are several challenges for these newer technologies in Fixed Bed Reactor (FBR) which are less in typical hydroprocessing reactions such as sediment-induced fouling, catalysts deactivation, product quality deterioration, pressure drop, high exothermicity, undesirable high oxygen content along with sulfur, nitrogen, oxygen, metals & insoluble, and where the end-of-run temperature is reached more quickly.

Figure 1: Catalysts with encaged metal nanoparticles which allow only hydrogen molecule entry and activation and prevent undesirable S compounds from deactivating the nanoparticles

Development of Hydrotreating Technology has also been continuous as follows: Ć

Ć

Ć

Ć

Figure 2: Hydroprocessing route to renewable transportation fuels from waste and inedible oils and fats.

reactions like hydrotreating and hydrocracking, as well as oxidation, hydrogenation and isomerisation reactions. These newer materials can provide better hydrogen utilisation (atom efficiency),  ŠQCQOP

prevent sintering, coke deposition, etc. Nanosized catalysts with less steric hindrance will be more effective in removal of sterically hindered refractory substituted dibenzothiophenes. Deep-desulfurisation of diesel fractions is an issue due to

2005 to present: Miniature microfluidic HDS units for cleaner feedstocks to be used in fuel cell hydrogen reformer; ULSD; S-free feed for fuel cell 1980 to 2000: Stringent product specifications and environmental regulations (Metals, Aromatics, Sulfur) resulted in development of newer NiMo/CoMo systems such as trilobes and tetra lobes 1974: Advances analysis techniques provided crystallographic data leading to better understanding and modelled CoMo 2 S 4 form for HDT activity. Increased active phase loading was possible. 1964: Base oil hydrotreating, upgradation and stabilisation were the main target.

Catalyst modification is done to enhance hydrogenation of aromatic ring, induce isomerisation of methyl groups by providing acidic feature, and remove inhibiting substances. Use of novel supports with high surface area for high activity per unit weight, uniform mesopore to facilitate polycyclic S compounds DAIE?=H"JCEJAANEJC4KNH@


CEW Features diffusion, mild acidity to promote metal dispersion & possible isomerisation and with high degree of active-site exposure than conventional catalysts. Deep desulphurisation of naphtha for Ultra Clean Gasoline for S removal by catalytic HDS results in decrease in octane number which can be managed by catalyst modification, and process modification besides using FCC Naphtha. In the transportation fuels the perspective for hydroprocessing has been continuously changing. The focus for hydroprocessing was more in terms of environmental concerns (S and N reduction) which have been gradually shifting towards sustainable supply hence the demand of newer catalytic technologies for Natural Gas-to-Liquid (GTL) and Biomass-to-Liquid (BTL) have been increasing. Scope of Innovation in the current refinery catalytic hydroconversion processes exist in several areas - production of ultraclean gasoline, deep desulfurisation of petroleum fractions, selective hydrogenation of pyrolysis gasoline for quality solvent, aromatics and sulfur reduction from middle distillates for specialty solvent, hydroprocessing of biomass derived oils, aromatics production from biomass derived oil, process intensification for fuel from biomass, gas and refinery feedstocks, production of hydrogen from biomass as well petroleum derived feedstocks. Common approaches to upgrading hydrotreaters and hydrocrackers includes upgrading feedstock and integrating processes, implementing a higher-activity catalyst, replacing reactor internals for increased efficiency, adding reactor capacity, increasing H 2 partial pressure. Depending on feed, throughput and economics, different reactors are used in hydroprocessing. FBRs are used for conventional feedstocks while more heavy feedstocks, specifically residues require reactors with larger residence time such as ebullated bed reactors and slurry system. Interbed quenching is a newer approach for hydroprocessing of newer and unconventional feeds types for improved catalyst cycle length, product quality, unit reliability and process safety. It involves injecting feed in between two catalyst bed. Either gas quench or liquid quench is used. It helps avoid under-utilisation of the catalyst and the formation of local hotspots. Heavy crude hydroprocessing, renewable hydroprocessing and residue conversion processes and technologies have acquired much importance in order to secure steady supplies of ultra-clean transportation fuels, to increase the use of heavy crudes and residues (adding from bio-mass, algae lipids, vegetable oils and animal fats - carbon-neutral and sustainable), due to depletion of light sweet crudes, to reduce 46 ŠQCQOP

emission of greenhouse gases, to raise productivity and improve energy efficiency. There are challenges and opportunities to refiners for innovation in hydroprocessing R&D by developing new (nano)materials based catalysts, alternative route for fuel production, and technologies which can be integrated with the present refinery infrastructure - aromatic reduction from middle distillates due too stringent specifications on gasoline, diesel and aviation fuel; processing of heavier crudes; residue upgradation; production of strategic fuel with high energy density (such as THDCPD) [9] ; selective hydrogenation of naphtha (py-gas) for aromatic solvent production; application of modern reactors such as micro channel reactors for process intensification. References: 1. Song, C, An overview of new approaches to deep desulfurization for ultra-clean gasoline, diesel fuel and jet fuel. Catal Today, 2003, 86, 211; Topsoe, H, Clausen, B S, Massoth, F E, in: J R Anderson, M Baudart (Eds), Hydro- treating Catalysis- Science and Technology, Vol 11, Springer- Verlog, New York, 1996. 2. Okamoto, Y, Breysse, M, Dhar, G M, Song, C, Effect of support in hydrotreating catalysis for ultraclean fuel. Catal Today, 2003, 86 1. 3. Muralidhar, G, Srinivas, B N, Rana, M S, Kumar, M, Maity, S K, Mixed oxide supported hydrodesulfurization catalysts - a review. Catal Today, 2003,86, 45. 4. Breysse, M, Afanasiev, P, Geantet, C, Vrinat, M, Overview of support effects in hydrotreating catalyst. Catal Today, 2003, 86, 5. http://www.topsoe.com/business_areas/refining/~/media/PDF%20files/ Refining/Topsoe_TK- 576_BRIM_ULSD.ashx 6. Transportation fuels from co-processing of waste vegetable oil and gas oil mixtures, B S Rana, R Kumar, R Tiwari, R Kumar, R K Joshi, M O Garg, A K Sinha, Biomass and Bioenergy, 56, 43–52. 7. Development of Hydroprocessing Route to Transportation Fuels from Non-Edible Plant-Oils, A K Sinha, M Anand, B S Rana, R Kumar, S A Farooqui, M G Sibi, R Kumar, R K Joshi, Catalysis Surveys from Asia 17(1), 1-13. 8. Aviation fuel production from lipids by a single-step route using hierarchical mesoporous zeolites, D Verma, R Kumar, B S Rana, A K Sinha, Energy & Environmental Science 4(5), 1667-1671. 9. Single-step catalytic liquid-phase hydroconversion of DCPD into high energy density fuel exo-THDCPD, M G Sibi, B Singh, R Kumar, C Pendem, A K Sinha, Green Chemistry 14(4), 976-983.

AuthorÊs Details Dr Anil Kumar Sinha (Principal Scientist) Head - Hydroprocessing Area, Refining Technology Division Indian Institute of Petroleum, Dehradun Email: asinha@iip.res.in

DAIE?=H"JCEJAANEJC4KNH@


CEW Features Technical Article

Maintaining Profits in Low-margin Markets HSB Solomon Associates LLC (Solomon) conducted a study of base oil refineries in 2012. In this analysis, it compared the Russian plants to solvent plants and hydroprocessing plants overall. The analysis reiterated that low-cost producers will show profits in low-margin markets and survive. Additionally, it was noticed that some - not all - high-cost producers will be at risk of closure. In this article, the author presents this study.

O

versupply continues to impact base oil refineries around the world, putting at risk the futures of the highest-cost producers. In Russia, all eight base oil refineries use the older, conventional solvent technology, though this could change as some have announced plans to move toward hydroprocessing. Although their performance as a group still lags behind solvent plants overall, performance has been improving over time in many areas. Extenuating circumstances and government subsidies notwithstanding, this improvement will have to continue if these facilities are to be sustainable over the long term. Production Cost Considerations and Trends To establish cost of production, we employed SolomonÊs Comparative Performance Analysis (CPA) methodology. We took the feedstock cost and subtracted the byproducts revenue to determine the net raw material cost. To that result, we added the total cash operating expense. Dividing that figure by the base oil volume yielded the base oil production cost per unit of base oil. It is important to note that the following factors may affect raw materials cost: Ć Feedstocks Utilised: The vacuum bottoms used to make brightstock are less expensive than the vacuum gas oil used to make neutral base oils. Both cost less than the hydrocracker unconverted oil used to make Group II and higher neutrals. Solvent plants tend to use vacuum bottoms and some vacuum gas oil, but hydroprocessors use vacuum gas oil and unconverted 48 ŠQCQOP

oil; therefore, the solvent plants have lower average price for feedstocks. Ć Yield of Base Oil: Because the analysis is based on the cost per unit of finished product, the yield of the finished product plays a significant role in the results for each refinery. Conventional units of solvent based plants have a much lower yield of high-value products than hydroprocessors do. Solvent dewaxing equipment, for example, has a lower yield than the catalytic dewaxing equipment used by the hydroprocessors. Because one extra step is involved (deasphalting), vacuum bottoms produce a lower yield of finished base oil than vacuum gas oil. Ć Value of By-products: Hydroprocessors primarily make low-sulfur diesel as their by-product, which has a very high value in todayÊs fuels market. Conventional units make waxes, asphaltenes, and extracts. Wax continues to be a very valuable by-product. Although asphalt is important for constructing roads, it is not worth a lot of money. The same is true of extracts. So, conventional plants are at a disadvantage in terms of the value of their by-products. An examination of the cost of production for refineries worldwide shows that the best performers keep costs relatively low and the very worst have costs that are extremely high. But for three-quarters of the worldÊs refineries, the cost to produce is virtually the same. Refer to figure 1 on the next page for a graphic representation. Net Raw Materials Costs (RMC),

meanwhile, tend to vary more widely. One refinery may have high raw material costs and low operating expense. A refinery with a similar cost of production may have a very low RMC and high operating expense. The total of the two components is the important value to minimise. Operating expense and RMC are not totally independent of one another. The choice of raw materials affects what it costs to manufacture the base oil; they are tied together, as illustrated in figure 2 on the next page. With the cost to produce so similar for the entire centre region of the curve - within a few dollars of one another - it does not take much to change the cost structure and move from the third quartile in performance to the second. Fourth-quartile performers, meanwhile, may have reason for concern. In todayÊs market, they could be next on the list for shutdown. Why do all the plants on the far end of the cost curve remain and not go away? Typically, they are in business for a different reason. Governmental initiatives keep some of these refineries operating even though they are not profitable from a strictly economic standpoint. An examination of cost to produce by plant type shows hydroprocessing plants averaging first-quartile performance and the average of the older solvent plants barely in the third quartile. The Russian plants as a group fare better than the solvent average, but remain in the third quartile as illustrated in figure 3 on the next page. (The article continues on page number 54) DAIE?=H"JCEJAANEJC4KNH@


CEW Features

US Dollars per Barrel of Base Oil

Interestingly, the average of the top 4 performing solvent plants show the best performance of all, squarely in the first quartile and ahead of the hydroprocessing average. But in general, it is the solvent plants that are at the highest risk of shutdown because their costs tend to be higher. The top 4 solvent plants show that shutdown does not have to be the answer if you operate a solvent plant efficiently. Looking at the performance of the Russian plants over a three study period, we find them at the midpoint in 2008 and 2010 before they regressed relative to others in 2012 into the low end of the third quartile. The industry is moving all the time, so the performance of the Russian plants did not necessarily worsen. It just may not have improved as much as others did. Figure 4 on the next page illustrates this concept.

Quartile

US Dollars per Barrel of Base Oil

Figure 1: Cost to Produce, Refiner’s Position

Quartile

US Dollars per Barrel of Base Oil

Figure 2: Cost to Produce, 2012 – Net Raw Material Cost plus OpEx

54 ŠQCQOP

In studying the components of operating expense, we find that, on average, half is devoted to energy. In Asia, energy costs jump to 65 per cent while the US and Canada devote only 21 per cent of their operating expenses toward energy. Russia, at 47 per cent, is close to the average due primarily to the price paid for energy. On a cost-per-gigajoule basis (US dollars per gigajoule or USD/GJ), the average cost is 9.06 USD/GJ. The cost in Asia is 14.98 USD/GJ. In the US and Canada, the cost is 3.39 USD/GJ. And in Russia, the cost is 5.37 USD/GJ. North American refineries are enjoying relatively low-cost energy due to the recent boom in production of shale gas. When it comes to energy efficiency as measured by the Solomon Energy Intensity Index (EII), we see that the top 4 solvent plants are as efficient with their energy consumption as the hydroprocessors. The solvent average sits in the third quartile, but the Russian average is in the fourth quartile, a reflection of their extremely low energy efficiency. These plants have not spent the time and effort to worry about energy efficiency; that is a concern for the future. One bright spot for the Russian refineries is in personnel costs. A few years ago, they were off the curve, saddled with directives to employ people rather than to make money. With a more profit driven perspective they are starting to pay closer attention to the numbers of people they employ. Hourly pay rates are low compared to many refineries in the world, which provides an advantage. Work hours are still high, but the refineries are continuing to show improvement.

Quartile Figure 3: Cost to Produce

Operating Expense Impacts and Trends Three factors tend to have more impact on operating expense: Ć The first is the technology employed to manufacture base oil, where the hydroprocessors enjoy a significant advantage. Ć The second is location of the refinery because of its relationship to energy and feedstock costs. Ć The third is utilisation. Obviously, the more you make, the lower the per-barrel cost of the fixed items of the operating expense.

Turning to utilisation, we see that that in 2012, the top 4 solvent plants enjoyed the best utilisation, followed closely by DAIE?=H"JCEJAANEJC4KNH@


       


CEW Features

US Dollars per Barrel of Base Oil

the hydroprocessors, both in the second quartile. The Russian average is better than the one for solvent plants overall, which shows they are better utilising their equipment, as illustrated in figure 5. That said, in 2012 average utilisation was lower than we saw in the period between 1998 and 2006. Demand is going down and supply is going up, so everybodyÊs utilisation has dropped. Another factor is economic downtime that is created because the plant cannot make a profit in the market. In the past, we have seen plants shut down as much as 5 per cent of the time because they cannot make money. In 2012, those figures were as high as 15 per cent.

2008

2010 Study Year

2012

Figure 4: Cost to Produce, 2012 Study - Trend Group

Russian plant utilisation in 2008 was at the third-/fourthquartile break point. In 2010, they jumped to first-/secondquartile performance, only to slide back to second-/third-quartile performance in 2012. Although they improved over 2008, they still lost ground, as shown in figure 6.

Figure 5: Utilisation

Not all high-cost producers are at risk. Some national oil companies have a different philosophy as to why they are in business. Some companies are integrated in their downstream operations, so, they consider security of supply and are willing to pay a little extra to ensure they have the supply that is inhouse rather than purchased. Additionally, some facilities are beset by severe environmental problems and are better run at a loss than cleaned up at great expense.

Utilisation, %

Utilisation, %

Conclusions With the current oversupply in the base oil market expected to persist, the focus among producers will continue to be on costs. Although hydroprocessing plants enjoy a cost advantage overall, solvent plants can be low cost even though they use the older technology and employ older equipment. Still, as high-cost producers shut down, it is likely that more conventional plants than hydroprocessors will be taken out of the mix.

We know all refiners can reduce their costs. Clearly, many have implemented operating cost reductions. But refiners also need to look to the other side of the equation. They must maximise production of their high-value products. It is short sighted to focus solely on operating expense. In base oil plants, margin is more important than operating expense. Typically operating expenses increase in the production of high-value products, but margins usually increase to a greater degree. Thus, the maximisation of high-value product is also the key to long-term viability.

Quartile

2008

2010 Study Year

2012

AuthorÊs Details Jamie Brunk Manager - Lube Studies HSB Solomon Associates LLC Email: james.brunk@solomononline.com

Figure 6: Utilisation, 2012 Study – Trend Group

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CEW Features Technical Article

Not a Drop of Oil to the Sea The paper titled as - “Not a Drop of Oil to the Sea” – The Role Corrosion Engineers Have to Play in Delivering This Environmental Vision – bring forward an analysis that illustrates the right approach to manage risk-based assets. It cites two examples where Bahrain Petroleum Company (BAPCO) adopted the approach to ‘achieve its stated environmental goal.’

I

n the wake of the BP Macondo Gulf of Mexico incident public awareness regarding oil pollution of our coastlines and the sea and other inland bodies of water has reached new heights. The adverse reaction faced by the industry after the Exxon Valdez breaking up into two pieces in the Prince William Sound on Alaskan coast was cacophonous enough, the BP Macondo reaction was simply deafening. „Not a drop of oil to the sea‰ has been adopted as one of the EHS mottos by many oil companies and is at par with other management initiatives that call for zero incidents and zero accidents. Bapco owns and operates a vast array of transport pipelines that bring crude oil to the refinery and then take our products to the loading wharves via storage and shipping terminals; and by necessity many of our lines run in shallow waters and above the sea. Any breach of integrity in our lines can thus defeat our vision of not-a-drop-of-oil-tothe-sea. Through two practical examples drawn from our Sea Line Number 5 and Number 19, the authors have illustrated in this paper the risk-based asset integrity management approach adopted by Bapco to achieve its stated environmental goal. Our Reliability Engineering Department assures no containment loss is resulted from general corrosion which is supported and assisted by all. The top priority is to assure that no line thinning or pressure vessel thinning occurrences will go undetected by us as long as within our control (an example is submerged sea lines, unless NDT pigged). During recent Turnarounds and Inspections (T&I) we will make sure that all planned thickness gaging of critical systems are

62 ŠQCQOP

extensively scan gauged in line with their commitment to assure integrity. Historical Perspective Our region has experienced several major oil spills in the past and had to cope with all the negative consequences arising from those spill events. Not all such events have arisen from accidental causes. The vast spill resulting from damage to Kuwaiti oil wells at the back end of the first Gulf War could be viewed as deliberate acts rather than accidental events per se. The overall impact to the region was quite significant. Figure 1 represents just one example of the major oil spill cleanup efforts that were required at that time. With an estimate of 8-11 million barrels of oil spilled it is reputed to be the largest oil spill that ever occurred. In terms of purely accidental events causing oil spill on the waters around the Gulf Cooperation Council countries the challenge is quite significant simply on the basis of the large volumes

of crude and petroleum products being transported through the region. Closer to the shore lines and within the territorial waters of the Gulf countries it should be possible to exercise greater control on events and this is where the contribution from corrosion engineers and experts is more relevant. Assuring Mechanical Integrity ă Process Safety Management Under an overarching system called „Operational Excellence Management System (OEMS)‰ Bapco have adopted a formal approach to process safety management in accordance with the United States OSHA regulation of 1992. „Mechanical Integrity‰ is a major element under this PSM system. Any loss of containment of hazardous materials or hydrocarbon is seen as recordable „Process Safety Event‰ which forms a component of the companyÊs key performance indicators. The American Petroleum Institute has issued a standard API RP754 under which various hydrocarbon release quantities to the sea

Figure 1: First Gulf War Oil Spill Clean-up Efforts (Source: theenergylibrary.com from internet)

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CEW Features are an achievable goal, and no injuries no accidents. Hence from an engineering perspective the challenge is: how do we contribute to this management vision of Ânot a drop of oil to the sea.Ê We examine this role through two practical examples; one relates to the use of life-cycle principles in assuring integrity of an ageing asset (Sea Line 5) and the other relates to operating practices and material selection (the Sea Line 19 incident).

Figure 2: Illustration of spread of an oil spill on water

are categorized from Tier 1 through Tier 3. Potential consequences of a release in terms of total sea surface impacted can be determined using empirical relationships derived by experts from historical data of spills. For example, Figure 2 illustrates the spread of a 4,000 barrel release of Arab Light. Transport and Shipping Lines BapcoÊs main product storage facility at Sitra, lies about six kilometers North of the Refinery site and the Sitra Wharf is a further 5 km from the Sitra storage facility. Also, Bapco receives a bulk of its needed crude supply via a pipeline from Saudi Arabia which has a 26 kilometer marine section. The product lines transporting product and intermediates to Sitra Tank Farm run via a part of the Bahrain territorial waters (known as the ÂWet GapÊ) and our shipping lines

Figure 3: ReÜnery to Sitra Tank Farm Product Transport Lines

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from Sitra Tank Farm to the Sitra Wharf run along the causeway between these two sites. Any release from our transport lines at the Wet Gap area and any release from our shipping lines will thus enter the marine environment at once. Figure 3 shows our product transfer lines that run from the Refinery to the Sitra Tank Farm. In the wake of the BPÊs Gulf of Mexico incident the public has become extremely aware of the potential for adverse environmental impact that can get associated with an oil spill. Hence our ÂtoleranceÊ of release to sea is being driven lower and lower. After the BP incident Bapco management also promoted the concept of ÂNot a Drop of Oil to the SeaÊ as an achievable objective. This has subsequently been spearheaded by our Environment Health and Safety Committee and this objective fits well with others such that: no one gets injured, zero incidents

Sea Line 5 ă A Case Of ReliabilityDriven Decision No.5 Sea Line is a 12 Inch diameter, Schedule 20 Carbon Steel (API 5L Grade B) product shipping line with 6.5 km total length. No.5 Sea Line has a loading rate of 3,000 BPH. Approximately 80 per cent of the total length of the line has been located sub-sea since its installation. The sub-sea section of the line is not painted internally or externally and is facilitated with Cathodic Protection (CP) to prevent corrosion to the external surfaces. The 20 per cent of the lineÊs length that runs above water is protected against external corrosion by application of a paint system. For many years, sea lines have been subjected to scheduled hydro-tests to prove their fitness for continued service. Although the initially used hydro-test pressure was 275 psig, this was taken up to 425 psig in 1990 to expose any corrosionweakened spots with potential to lead to an in-service rupture in the event of line over-pressurisation in operation due to, for instance, sudden closure of valves on ships taking cargo. In July 2006, No.5 Sea Line developed a leak in the flume area south of the Sitra Wharf Causeway while it was being flushed with Naphtha at approximately 150 psig. This was immediately following the successful completion of its scheduled 5 yearly hydrotest at 425 psig. The leaking section was cut out, and replaced with a 20 feet long flanged spool. To ensure fitness of the line for continued service, decision was taken to hydro-test the entire line by pressurising it, one isolated section at a time. This test revealed 15 more leak points, which were all located along the older section of line that runs in the south flume from Sitra Tanks Pump House to the South Flume DAIE?=H"JCEJAANEJC4KNH@


CEW Features Riser. The line kept on failing repeatedly at approximately 100 psig as the identified leak holes were clamped, and the hydro-test was resumed. No.5 Sea Line was holed mainly due to internal corrosion caused by presence of numerous corrosion cells (under-deposit corrosion and Oxygen attack cells) over its inner surface along its length. In terms of the number of leaks experienced in one single year, 2006 was the worst in the history of No.5 Sea Line as it witnessed a total of 17 leaks. It needs to be noted that of these 17 failures, 16 were in the older section of the line running in the south flume that spans from the Sitra Tanks Fire Pump House to the South Flume Riser. No.5 Sea Line had a total of 50 leaks in the past 32 years since 1975, and 16 of these leaks (32 per cent) occurred in a single year (2006) in the 3.3 km long section of the line in the south flume. See the charts. The corrosion observed in the No.5 Sea Line indicates that these are as a result of stagnant aggressive water when line is idle and the corrosion is mainly confined to bottom; 5-7 oÊclock position. In the past pipeline stand up test was carried out and hydro test was limited to 275 psig. In 2010, this was changed to hydro testing to flange rating, except for the No.18 Sea Line due to logistic reasons. It is to be noted that when a line is pitted near holing, depending on the size and shape of the pit, it may stand the hydro test; as testings are carried out, the scale in the pitted areas get disturbed, causing these pits to pop-out during subsequent testing. In some cases corrosion may have already taken place in the form of pits or pits running into each other well before the initial testing or first leak. Basis the age of No.5 Sea Line and the extent of corrosion damage it sustained, it would be impossible to predict where and when it might leak next. Consequently, No.5 Sea Line was taken out of service and it was recommended that the entire length of No.5 Sea Line from Sitra Tanks Fire Pump House to the Tee Head be replaced. Sea Line 19 ă Role Of Corrosion Engineers This Sealine serves to route slop from the Wharf area back to the Slop Tank in Sitra Tank Farm. Corrosion of carbon steel in this service is known and had been observed to occur predominantly at the bottom portion inside the line. The decision to use ó‰ thick carbon steel for a new line placed in service in 1996 was deliberate in that it was planned to rotate the line by 90 degrees every 5-6 years so that fresh steel gets exposed to the corrosive fluid, thus a line life of 20-24 years could be obtained. The first rotation was done in 2002. The next planned rotation of 2008 got deferred due to lack of resources at that time. During Aug 2010 there was a leak at the upstream elbow of a jump-over located near Costal Tanker Berth (No. 7). The physical cause of the leak was a pitting corrosion hole (about 1/4‰ diameter); subsequent inspection of the leaked section showed several other corrosion pits. A decision was taken to immediately take the line out of service and carry out a hydrostatic test. 66 ŠQCQOP

The initial decision to use carbon steel in this service and rotate the line periodically was based on cost versus risk-benefit analysis applicable at that time. In the present times, any leak to the sea is to be considered significant with consequences such as negative impact to company image, public complaints and actions. While an initial study proposed replacement of the line, the Reliability Engineering Department (RED) recommended taking a decision basis review of the intelligent pigging results. Pigging data of No.19 Sea line showed almost 30,000 indications, but very few indications were reported above 60 per cent in wall thickness losses, and these were mainly at causeway road crossing section and T-head riser. These sections had already been requested for replacement. Therefore based on previous service life history of 20 years, total line replacement was not recommend up to 2017 as originally envisaged. The pigging survey would be redone in 3 yearsÊ time and basis findings, decision could be taken on extensive line repairs/replacement. Recommendations Ć Reinforce to all personnel the message from senior management that any oil leak to the sea is unacceptable. Personnel stationed close to marine facilities need to be vigilant and report any oil spill immediately. Ć Alert RED personnel that any violations of their Mechanical Integrity Guidelines document must be raised to the attention of senior management. Ć Correct the ISO 14001 Aspects register to include sealine leak events. Ć Issue an Engineering Design Guide requiring all sealines to have intelligent pigging facilities. DAIE?=H"JCEJAANEJC4KNH@


Features CEW Ć Install oil spill detection systems and permanently install oil spill containment systems at selected locations. Concluding Remarks At Bapco, the Reliability Engineering Department (RED) of Engineering Division plays a most vital role in ensuring the integrity of our static assets. RED is able to assure that our process and transport equipment pressure-envelop thickness gauging is carried out so comprehensively (and recorded in PCMS (piping corrosion monitoring system)) that there is virtually no chance of us having to face a major loss of containment event from a sudden rupture as a result of major sizable thinning due to general internal corrosion. Acid gas lines, Overhead system transfer lines and vessels, LPG lines (including those going to the gas bottling plants), Lines associated with V509 in Gas Concentration Unit (GCU) (insurance survey action item), Lines and vessels associated with other lightend service in GCU, 2Poly light-end lines and vessels, Naphtha Rerun Complex (NRC) lines and vessels, Lines in services above auto-ignition temperature of fluid, Fuel gas liquid KO drums and associated piping, Gas Distribution Network(GDN) lines, Sea lines and Refinery-Sitra transfer lines were some of the services identified as most critical to BapcoÊs operations and scan gauged to maximum possible extent. To fulfil the responsibilities with specific regard to pipe line systems, RED extensively gauge our lines at every T&I (Turnaround and Inspection) regardless of PCMS ÂrecommendedÊ next inspection date; Scan gauge a band of 4‰ at weld and intermediate locations and the extent of the gauging locations depends on system corrosion rate history; and ensure that additional attention is paid to gauging systems prone to unpredicted corrosion such as CDU/ VDU overhead line. Bibliography 1. Relevant Bapco Incident Investigation Reports by Atil Gurhan and Ram K Goyal 2. API RP 754; Process Safety Performance Indicators for the Refining and Petrochemical Industries

Acknowledgements The authors are grateful to Mr. Mohamed Hasan, Senior Manager of Engineering Services Unit of Bahrain Petroleum Company (BAPCO), for granting permission to publish and present this paper.

AuthorÊs Details AuthorsÊ Details Dr Anil Kumar Sinha (Principal Scientist) Ram K Goyal Head - Hydroprocessing Area, Risk and Reliability Management, Engineering Service Unit Refining Technology Division, Bahrain Petroleum Company Dehradun (BAPCO) Indian Institute of Petroleum, E-mail: ram_k_goyal@bapco.net Email: asinha@iip.res.in

Manar Mohamed Salem Reliability Engineering Department, Engineering Service Unit Bahrain Petroleum Company (BAPCO) E-mail: manar_mohammed@bapco.net DAIE?=H"JCEJAANEJC4KNH@

QCQOPŠ67


CEW Market Insights

My Eco Energy Launches 1st Bio-fuel Station; 500 More to Come -Y %CO %NERGY -%%  A 0UNE BASED COMPANY ENGAGED IN THE MANUFACTURE AND DISTRIBUTION OF BIO FUELS  HASLAUNCHEDITSFIRSTBIO DIESELSTATIONNEAR0UNE4HERETAILPRICEOFITSPRODUCT)NDIZELISCPERLITRE

I

ndizel is a brand of biodiesel which is a clean-burning eco-friendly alternative form of petroleum diesel. According to the company, it does not require modifications to a diesel engine to be used and is a complete substitute for conventional petroleum diesel. MEE claims that Indizel has higher lubricating properties which give increases engine life. Expansion Plan The organisation is now planning to establish 500 such fuel stations and 2,000 outlets in three different, smaller, formats in the next 18-24 months. When asked to comment on the roadmap ahead, Santosh Verma, Director, MEE, says that to attain a significant customer base, the company has outlined a strategic marketing road-map to reach the domestic market segments. â&#x20AC;&#x17E;Today, we at My Eco Energy primarily cater to Maharashtra and other neighboring states in the initial phase. Future plans include extending our network force to over 500 dealer owned retail pumps and about 2000 to 3000 smaller outlets in Maharashtra within two year time,â&#x20AC;° he adds. Verma is confident of the companyĂ&#x160;s expansion plans and believes there would not be any problem in attaining the target because of the tremendous amount of interest among dealers and retailers. However, he also says that there is a lack of awareness about bio-fuel in general and this is a hurdle that the company needs to overcome. â&#x20AC;&#x17E;Once we do that we are sorted. To overcome this challenge we are trying to use a very creative and innovative communication strategy which is cost effective but serves our purpose of reaching out to our prospective consumers. Aggressive use of social media, interesting media campaigns

Verma is confident of the companyâ&#x20AC;&#x2122;s expansion plans and believes there would not be any problem in attaining the target due to tremendous amount of interest among dealers and retailers. 68 Â&#x160;QCQOP

and coming up with more fuel stations in the near future are all the ways to meet the end,â&#x20AC;° Verma asserts. Bio-diesel Market Verma further explains that the bio-fuel market in India is at a very nascent stage and therefore there is a huge market potential. â&#x20AC;&#x17E;Just to give you a brief backgrounder,â&#x20AC;° he continues, â&#x20AC;&#x17E;India is the 4 th largest consumer as well as the importer of crude oil and out of these imports diesel accounts for 44 per cent. Even then there is a huge gap between the demand and supply of diesel. Therefore, Indizel being a complete alternative to diesel has a huge market potential and we are looking forward to it,â&#x20AC;° he claims. Commenting on the challenges, he says that there are two major challenges firstly lack of awareness and secondly lack of infrastructure that supports abundant manufacturing and processing of biodiesel in the country. Verma is of the opinion that with the government of India laying down some heavy biodiesel initiatives there is hope that there would be tremendous growth in the bio-fuel industry in India. MEE claims to have designed a unique model wherein it is not dependent on one feedstock for the production of Indizel. It leveraging on its technological association with Go Fuels - can produce Indizel from multiple feed stocks at multiple locations. According to Verma, there is a huge lag between the demand and supply so there is a huge market to capture. He explains that though bio fuel is an alternative to diesel it can never replace diesel. Bio fuel can just extend the lifespan of the conventional fuel medium. Verma comments, â&#x20AC;&#x17E;We try manufacturing high quality bio-fuel which is at par or even better than normal diesel with the help of Go Fuels.â&#x20AC;° The promoters of MEE have invested about C 80 crore in India so far and plan to invest a total of C 250 crore raised through equity and internal accruals in the India venture. - Harshal Y Desai DAIE?=H"JCEJAANEJC4KNH@


Marketing Initiative

Outokumpu Invents for Human Safety in Mines

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ire or explosion in the mine area can create many severe life threatening circumstances and rescuing employees from underground mine can be very difficult. The mine is a demanding environment for any material, but stainless steel has advantages, which no other material can beat. This was also the reasons, why HEAT-IT Oy from Rovaniemi, Finland selected Outokumpu's new high-chromium ferritic stainless steel Outokumpu 4622 as the building material for their RESPETRA rescue chamber.

r-value and limiting drawing ratio makes this grade ideal for deep drawing applications. Outokumpu 4622 is a natural choice for a rescue chamber, because it is a perfect fit for the demanding environment in the mine. Stainless steel is practically maintenance free, which leads to low life cycle cost. Besides good weldability, corrosion and heat resistance 4622 has lower cost than stainless steel grades with nickel

The RESPETRA rescue chamber is a stainless steel cabin used in underground mines and construction sites. It provides shield and protection for miners for example in case of fire for as long as for four days. HEAT-IT makes two different size chambers. The smaller cabin is for eight persons and the larger one is available for 14 persons. The rescue chamber operates independently and it contains full equipment for persons, such as seats, tables, beds, toilet and washing facilities. Oxygen masks are not needed inside the chamber. Outokumpu's stainless steel is already in use for rescue chambers in mines in Kittilä and Kemi, Finland, as well as in underground construction sites in Oulu and Helsinki capital area.

Low life cycle cost Stainless steel surface doesnĂ&#x160;t require any coating. As the walls of the chamber are not painted, the air in the rescue chamber stays fresh. Outokumpu 4622 is technically very suitable for the rescue chamber due to its good combination of strength and toughness and can thus handle pressure relief well. The walls of the rescue chamber are curved to provide protection against pressure and gases. Development based on customer needs The Outokumpu 4622 is one of the newest additions to the Outokumpu's portfolio and the RESPETRA rescue chamber is just one example where this high-chromium grade could be used. Natural choice for the rescue chamber Outokumpu 4622 is high-chromium ferritic stainless steel developed recently in Outokumpu Tornio Research Centre and it contains 21 per cent chromium. This is an improved grade from high-chromium ferritics currently available in the market and it was designed based on customer needs. Outokumpu 4622 has high corrosion resistance and it is a competitive alternative to common austenitic grades, such as 1.4301 (304) and 1.4307 (304L). Its performance is even superior in certain environments. It has good chloride resistance, even including resistance of stress corrosion cracking. One of the benefits is the good weldability and machinability. Also high Chemical Engineering World

The Outokumpu 4622 is Outokumpu's first high-chromium grade. The grade offers tangible benefits to Outokumpu customers for example in corrosion resistance, strength and formability. It is competitive alternative in terms of alloying. Outokumpu 4622 can be used in a broad range of applications from home appliances, to exhaust systems, process equipment and cladding panels. Outokumpu 4622 steel grade is a standard ferritic stainless steel by its technical properties. The new ferritic steel grade fulfills already ASTM UNS S44330 requirements, and work is in progress for EN standardisation.

Yatinder.suri@outokumpu.com QCQOPÂ&#x160;69


Marketing Initiative

Fainger Leser: Making the Most of ‘German Expertise' Fainger Leser is making the most of its German roots by brining advanced technologies to Indian customers, says Neeraj Mangal, CEO, Fainger Leser Valves Pvt Ltd.

on advanced technologies to develop the required products, comes into picture. Once the product is developed, we test it comprehensively in our test lab, a state of art capacity test lab.

Please apprise us of your companyÊs performance in recent few years? In spite of a dull economy over the last two years, we have been able to grow our business - at a CAGR of approximately 24 per cent in last five years. In the last couple of years, we successfully launched some new products that received accolades in the industry. Fainger LESER has a strong market penetration across section like OEMs (Especially compressors, boilers, skid mfg., pumps & heat exchangers) and industry like chemical, pharma, fertilizers and power. In recent few years we have consolidated our positions in these sectors. We are committed to bring in the best of German technology & products in the Indian subcontinent market. What is the current market share of your organisation ă in India and globally? What are key growth drivers? We are second largest company in India with an overall market share of about 18 per cent, since we do not have the products for ASME section 1 and ASME section 3, our share increases up to 42 per cent in the addressable market. LESER GmbH is number one in Europe with a market share of about 60 per cent. Globally, it has an approximately 21 per cent market share and stand at number 3 position. We are a company that has strong focus of design & development and believe in organic growth and henceforth we focus strongly on new products and expansions of sales network around the globe. How have you been strategising your business activities to face the competition? 70 ŠQCQOP

As a global Organisation we share our experience and learnings with our technical bureau and products development departments in Germany which further help us with their valuable inputs.

Neeraj Mangal CEO, Fainger Leser Valves Pvt Ltd.

As we are only focusing on Safety Relief valves business, and capable of meeting customersÊ needs with short delivery time. We have increased our Âcustomer networkÊ in last two-three years, also established our sales offices in Maharashtra, Gujarat, Tamil Nadu, Karnataka, Andhra Pradesh and Delhi. We are also working strongly in Eastern India. High quality type tested products based on German technology, In-house safety valve design and manufacturing, Quick product delivery, strong sales network and new products development are some of the elements that not only help us compete with other players but also allow us to dominate the business. How do you evolve the research and development within the company? We have a very specific ÂmodelÊ for this that generally starts with marketing department which is responsible for analysing the gaps between ÂavailabilityÊ and Ârequirement.Ê We collect the feedbacks from Marketing Department and submit the same to its other vertical - Product Development Section that create the roadmap answering all 5 Ws and 1 H (Who, What, When, Where, Why and How). Then the engineering department, a team of highly experienced engineers who work

Will you share insights into the latest trends in manufacturing and designing the product you offer? Indian industry, in many segments, has become quite global in its perspective; pharma Industry being one of them whereas in the area of bulk and generic drug manufacturing, India has become a global footprint. Global buyers /suppliers usher in the demand of stringent safety norms at par with global standards. Further, as we see applications are becoming more complex compelling designers and engineers to demand new products to meet the challenges. We would be seeing more exotic material coming in India. We would see more complex application of Safety Valves in the industry. What are you plans for future? The whole county is looking for a beginning and the revival of economic scenario in the industry as such and we are pretty strong in chemical, pharma and power segment and this will be our focus in future as well. We will expand our application into ASME Section 8 and we will consolidate that area with new products specifically oil & gas. We are planning to go for expansions of our factory which will enable us to increase our production by approximately 35 per cent. We will be investing very heavily in plant and machinery in order to have higher precision in our products. DAIE?=H"JCEJAANEJC4KNH@


Marketing Initiative

‘ANTICOR’ – Thermoplastic Chemical Storage Tanks

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rvind Anticor Ltd (popularly known as ÂAnticorÊ) is pioneer manufacturer and exporter of heavy duty Polypropylene Storage Tanks. ANTICOR is the first and only manufacturer of Chemical Storage Tanks accredited by RITA imported from Germany (RoechlingÊs Integrated Tank Building Assistant, developed by Roechling and TUV Nord) in India.

ANTICOR Storage Tanks meet ultimate standard requirement of various chemical processors worldwide. Designed on RITA 3.0 Tank Design Software, ANTICOR tanks possess intelligent design features to ensure easy and safe storage and handling of hazardous chemicals like Acids, Alcohols, alkalis and Mineral Oils, Esters. ANTICOR Storage Tanks allow working temperature variation of 0 O C to 85 O C. It is also autoclavable for usage in biohazardous environments. ANTICOR is the first company in the world to use ultimate Butt Fusion Welding technique in manufacturing Storage Tanks with curved corners ensuring 100 per cent Leak Proof longer working life. The muscularly built-up, highly impact resistant, ANTICOR Thermoplastic Storage Tanks - due to itÊs excellent non-corrosive property - has proven its

applicability very ideal one for handling of various chemicals for longer life. With Tensile Strength of 4500 psi and hardness R95, ANTICOR Storage tanks are also excellent fatigue resistant. Light weight and easy to handle ANTICOR tanks are almost maintenance free and provide a great economical equation worth to consider. Custom designed ANTICOR tanks are available in truly wide range of storage capacities and standard (Square, Rectangular, Cylindrical, Vertical, Horizontal) or unconventional shapes. Tanks are available in open and closed designs with complete necessary fittings made of Polypropylene or as required. ANTICOR is the name known as synonymous to excellence in Fume Extraction Systems consisting heavy duty Polypropylene Pickling Tanks, Scrubbing Tower and Chimney ă all manufactured under single roof of ANTICOR. Spread over 50000 sq. ft. manufacturing facilities of ANTICOR consist of newest technology available and live-wire technical man-force, always eager to cope with newer challenge. ANTICOR Storage Tanks have got the place all over the world. Our clientele includes names of great global manufacturers in wide geographic periphery and the list is increasing.

Arvind Anticor Ltd, 563/1, Phase IV, Vatva GIDC, On Mahemdavad highway, Opp. Hanuman Temple, Ahmedabad. 382445 Phone: +91 79 25840689 Fax: +91 79 25840958 Mobile: +91 9374523400 Email: info@plasticsstoragetank.com Website: www.ppasticsstoragetank.com; www.arvindanticor.com

Chemical Engineering World

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CEW Products Halogen Moisture Analyzer The HE53 entry-level halogen moisture analyzer encompasses Mettler ToledoÊs tradition for Swiss quality in a no-frills, easyto-use instrument making moisture analysis accessible to all. As a critical part of many quality control procedures, particularly in TOD industry, HE53 halogen moisture analyzer provides reliable moisture results in just a few minutes, giving companies max control over their manufacturing processes and optimum product quality. The HE53 has been designed for simplicity to make it easy for even untrained operators to use. For details contact: Mettler-Toledo India Pvt Ltd Amar Hill Saki Vihar Road, Powai, Mumbai 400 072 Tel: 022-4291 0111 Extn: 256/115

Cyclops Non-contact Thermometers AMETEK Land has added a high efficiency Route Manager and new protections against accidental damage to its Cyclops line of portable non-contact thermometers.The new Cyclops L family includes four models measuring across a range from 200o C to 3,000Ĉo C. T. The Route Manager enables users to identify each location with a description, an emissivity value, a window correction factor (if applicable), and a unique identifier. This mode allows for complete repeatability of readings, making the thermometer an ideal tool for multiple locations requiring regular and reliable monitoring. The thermometer stores up to 9,999 temp measurements with a 0.1C measurement resolution. All can be downloaded to an optional logger to capture, view and record live temp readings for further analysis and comparison. The thermometers have precise, narrow field of view and continuously focusable optics with throughthe-lens sighting for accurate sample point selection. For details contact: Ametek Instruments India Pvt Ltd Raheja Towers, 3rd Floor, Delta Wing, Anna Salai, Chennai 600 002 Tel: 044-49591007 | Fax: 91-044-49591021 E-mail: ravi.m@ametek.com

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Standardised Water Pump KSB Pumps Ltd offers Etanorm Series pumps, which comprises of 43 pump sizes driven by either 2-pole or 4-pole motors. The selection char t has been extended by additional pump size, so those sizes can be selected even closer to the best efficiency point. In intensive work with CFD (computational fluid dynamics) for flow simulation KSBÊs engineers have optimised the hydraulic contours. Thanks to the efficient hydraulic system the pump sets already meet the EU requirements (ErP) of Commission Regulation 547/2012/EC for water pumps, which will come into force in 2015. The engineers placed a particular focus on an excellent suction behaviour and a low NPSH value, thus minimising the risk of cavitation and obtaining a smooth and stable pump operation. Confined casing gaskets ensure reliable sealing between pump casing and casing cover even in highly varying operating conditions. The finite element method (FEM), a calculation method for solids simulation, was employed to improve the rigidity of the pump sets. For details contact: KSB Pumps Limited Mumbai-Pune Road, Pimpri, Pune, Maharashtra 411 018 Tel: 020-2710 1241 E mail: bipin.kode@ksb.com or Circle ReadersÊ Service Card 3

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Products CEW SK180E: Intelligent IP69K Drives NORD DRIVESYSTEMS supplies efficient drive units in applications that need to be regularly cleaned with high-pressure steam jets. Developed for strict hygiene requirements and featuring IP66/IP69K ingress protection, smooth-surface motors with an integrated frequency inverter are available for the 0.37..1.1 kW performance range. Sensor data can be directly communicated to the drives. In conveyor applications, light barriers can be used for contact-free or gapless accumulation. The drives tolerate high temp fluctuations and are suitable for ambient temp from -25 to +50ĈC. The Type SK 180E inverter comes in a rugged die-cast aluminum housing that absorbs impacts up to 7 J. Due to class C1 radio interference suppression and a discharge current decidedly below market average, SK 180E drives can even be operated on standard domestic power sockets. The NORD-developed treatment is compliant with FDA Title 21 CFR 175.300 requirements. For details contact: Getriebebau NORD GmbH & Co KG Getriebebau-Nord-Straße 1 22941 Bargteheide/Hamburg, Germany Tel: +49 45 32 / 2 89 -0 | Fax: +49 45 32 / 2 89 -22 53 E-mail: Joerg.Niermann@nord.com or Circle ReadersÊ Service Card 4

High-head SS Submersible Motor Pumps K S B o f fe r s UP F 1 5 0 S e r i e s o f S S p u m p s augm ent i ng i t s 150 m m size o f su b m e r s i bl e m o t o r p u m p s. T h e se radi al f l ow t ype pum ps ca n d e live r u p t o 1 5 m ( 5 0 fe e t ) p e r st age and are avai l abl e in 6 hyd ra u l i c s, v i z , UP F 6 0 , 8 0 , 100, 125, 150 and 200. H yd ra u lic c o m p o n e n t s l i ke i m p e l l e r, st age casi ngs, are m ade f r o m inve s t m e n t c a s t h i g h q u a l i t y S S. Thi s ensures l onger l i fe of t h e p u m p s e t s. Pump and motor shaft made from SS (Grade 420) offer excellent torque values. Bronze bearing bush and carbon v/s chrome steel thrust bearing ensure trouble-free smooth operation. These pumps are coupled with 150 mm (6‰) motor to give head up to 350 mtrs, and discharge up to 44 m 3 /hr. Motors are available in wide range up to 18.5 kW (25 HP). Proven Ger man technology ensures high efficiency of motors, which in tur n results in low power consumption. UPF pumps find wide applications in irrigation, drinking water supply schemes, far m houses, etc. For details contact: KSB Pumps Limited Mumbai-Pune Road, Pimpri, Pune, Maharashtra 411 018 Tel: 020-27101234 E-mail: Suhas.shiras@ksb.com or Circle ReadersÊ Service Card 5

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CEW Products

Deposition Watch

Humidity Chamber

Flowrox offers to the oil and gas market the Flowrox deposition watch, an instrument designed to enhance the monitoring of pipelines and related flow-process equipment affected by paraffin wax and asphaltene depositions. The Flowrox deposition watch utilizes electrical capacitance tomography (ECT) to create real time images of the inside of the piping and use ECT to detect the differences in permittivity of the various substances found in the piping system.

Mack Pharmatech Pvt Ltd offers humidity chamber in temperature range 20 to 60 o C, humidity range 40% RH to 95% RH with accuracy of “0.2ĈC and “2.0% RH and uniformity “1.0ĈC and “3.0% RH. Test is suitable for 25 o C and 60% RH, 30 o C and 65% RH, 40 o C and 75% RH, and 30 o C and 75% RH.

In addition, the Flowrox deposition watch utilizes a patented algorithm that creates a 3D image of the process fluid in the piping and generates trend data as well as show free volume inside the pipe and the growth rate of the deposition growth over time. For details contact: Flowrox, Inc 808 Barkwood Court Suite N Linthicum, MD 21090, U.S.A. Tel: (410) 636-2250 E-mail: molly.bragg@flowrox.com or Circle ReadersÊ Service Card 6

Features PLC-based control system; 21 CFR software; HMI (touch screen display); standby refrigeration system; standby humidity system; imported hygroflex sensor; 4+4 scanner; GSM technology; hooter system; full view glass door; bullet feet leveling legs; tray spacing every ó„ adjustable. etc. For details contact: Mack Pharmatech Pvt Ltd B-48, Malegaon MIDC, Sinnar Dist: Nashik, Maharashtra 422 113 Telefax: 91-02551-230877 E-mail: sales@mackpharmatech.com or Circle ReadersÊ Service Card 7

Oil Lubricated Vacuum Pumps ToshniwalÊs oil lubricated vacuum pumps of the TMS Series are single stage oil lubricated rotary vane vacuum pumps with oil re-circulation system. Pumping capacity range from 15 m3/hr, 35 m3/hr, 65 m3/ hr and 100 m3/hr. Their TMS Series pumps has economical features, which matches together to achieve high pumping speed over the range of absolute pressure of 1,000 mbar to 0.5 mbar; high water vapour tolerance and low noise level; air cooled; no pollution; and built-in anti-suck back system. Designed for continuous operation at high intake pressure, the pump is used in various applications like pick and place, packaging, degassing, low boil distillation, solvent recovery, heat treatment, bottle filling, vacuum drying, etc. Toshniwal also provide special B Series oil lubricated pump for high pressure (rough vacuum) application upon request. For details contact: Toshniwal Instruments (Madras) Pvt Ltd 267 Kilpauk Garden Road, Chennai 600 010 Tel: 044-26448983, 26448558 E-mail: sales@toshniwal.net or Circle ReadersÊ Service Card 8

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Products CEW Software for NanoSight NTA Systems Malvern NanoSight systems use nanopar ticle tracking analysis (NTA) to characterize nanopar ticles in solution in the size range 10 to 2,000 nm (depending on the sample). Each par ticle is analyzed individually by direct observation and measurement of diffusion events. This par ticle-by-par ticle methodology produces high resolution results for par ticle size distribution and concentration, while visual validation provides additional data confidence. Both par ticle size and concentration are measured, while a fluorescence mode provides differentiation of labeled or naturally fluorescing par ticles. The new NTA 3.0 software makes accessing programs and protocols quick and convenient. It also incorporates an upgraded high-resolution par ticle size distribution algorithm and suppor ts advanced image analysis, par ticle detection and tracking, as well as providing improved vibration correction. For details contact: Malvern Instruments Inc 117 Flanders Road, Westborough MA 01581-1042, U.S.A. Tel: +1 508 768 6400 | Fax:+1 508 768 6403 E-mail: marisa.fraser@malvern.com or Circle ReadersÊ Service Card 9

dynaBLEND Liquid Polymer Dilution/Feed Systems Fluid Dynamics, a division of Neptune Chemical Pump Co, offers its standard-setting dynaBLEND Liquid Polymer Dilution/Feed System. The patented dynaBLEND technology eases the task of blending liquid polymers for wastewater processes because it has been designed to effectively activate all types of liquid polymers. The dynaBLENDÊs nonmechanical mixing chamber also delivers an unequalled degree of reliability when compared to other technologies. The system also features an injection check valve designed with easy disassembly and inspection in mind, which eliminates many of the maintenance concerns that affect other systems. For details contact: Dover India Pvt Ltd ă PSG 40 Poonamallee By-pass Senneerkuppam, Chennai 600 056 Tel: 044-26271020, 25271023 E-mail: sales.psgindia@psgdover.com or Circle ReadersÊ Service Card 10

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CEW Products Highly-secure Direct Access to the Controller

Temperature and Humidity Transmitter

All B&R controllers have an FTP server on board as a standard feature. A protection mechanism with integrated user name and password management now makes accessing this server even more secure. B&R draws on methods that have proven themselves in the realm of IT to help machine and system developers implement access security. User authentication is managed with user names and passwords. Management of user data and assigned rights is integrated in Automation Studio. This data is stored on the runtime system in encrypted form to ensure seamless security. User management for FTP access to B&R systems allows an unlimited number of users to be assigned access rights. At runtime, up to eight different users can access the controller at the same time via FTP access.

Model-KM-THS-03/04/33/34 from Kusam-Meco is a temperature and humidity signal transmitter for applications in monitoring for HVAC process/air conditioning/ environmental ventilation control and environmental monitoring for building/factory/clean room/ lab, etc. It has high-tech sensor with high accuracy and longterm stability. The input humidity range is 0-100% and a wide temperature range from -40o C~60 o C and output range is 4-20 mA. It is used in installation for indoor/duct-mounting/remote type with flange. It also has zero and span adjustment for output. The power supply used for this instrument is 24 V DC. It also has protection degree IP 65 (sensor: IP 20).

For details contact: B&R Industrial Automation Pvt Ltd 8, Tara Heights, Mumbai-Pune Road Wakdewadi, Pune, Maharashtra 411 003 Tel: 020-41478-999 | Fax: 91-020-41478-998 E-mail: shyam.padwal@br-automation.com or Circle ReadersÊ Service Card 11

For details contact: Kusam Electrical Industries Ltd G-17 Bharat Indl Estate T J Road, Sewree (W), Mumbai 400 015 Tel: 022-24156638, 24124540, 24181649, 27750662 Fax: 91-022-24149659, 27751612 E-mail: kusam_meco@vsnl.net / sales@kusam-meco.co.in or Circle ReadersÊ Service Card 12

Vision Sensor for Colour Applications Cognex Corporation offers the Checker 4G7C, an easy-to-use colour vision sensor that distinguishes par ts by colour. Checker 4G7C delivers 376 x 240 inspection resolution with Ethernet suppor t for industrial protocols and high-intensity white LED illumination for the detection and inspection of par ts and features at up to 800 par ts per minute. As par t of the Checker 4G Series product line, Checker 4G7C includes the patented Checker internal trigger technology which provides several key advantages: does not require additional sensors to determine if a par t is present; detects par ts by locating a feature on a par t, not just an edge; and tracks par ts along the production line without requiring precise par t handling. In addition to the new ability to inspect par ts for colour, the Checker 4G7C provides the industry-leading features that the product line is known for including flexible optics, ease of setup, ability to add unlimited sensor tools to a job and intelligent pass/fail logic based outputs. For details contact: Cognex Sensors India Pvt Ltd Regus Level 6 Pentagon Towers P2, Magarphatta City Hadapsar, Pune, Maharashtra 411 028 Tel: 020-40147840 | Fax: 91-020-66280011 E-mail: info.in@cognex.com or Circle ReadersÊ Service Card 13

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Products CEW Heat of Compression Type Dryer Mellcon Engineers Pvt Ltd offers energy saving heat of compression air dryers to replace the conventional heatless and heat regenerated type air dryers. In compression a lot of energy is conver ted into heat, which is stored in the compressed air and is normally wasted in a water cooled after cooler. In heat of compression dryer this energy is used to regenerate the desiccant, thus eliminating the need of heaters required in case of conventional air drying systems, eg, split-flow no-purge-loss type and blower heat reactivated type air drying plants. Energy consumption wise the system is even better than refrigerated type air dryers while the dew point is much better than that of refrigerated type air drying plants. For details contact: Mellcon Engineers Pvt Ltd B-297 Okhla Indl Area, Phase I New Delhi 110 020 Tel: 011-26811727 / 26816103 | Fax. 91-011-26816573 E-mail: mellcon@mellcon.com or Circle ReadersÊ Service Card 14

Atlas Cryo Reactor The Atlas Cryo Reactor, a compact unit just 16-cm wide, offers trouble-free cooling of a range of round bottom flasks. It is ideal for processes such as Grignard, diazotization and aldol reactions, ortho metalations, Friedel-Crafts acylations, Michael additions and Birch reductions. Its sophisticated proprietary cooling technology and Âin reactorÊ temperature probe ensure accurate control of temperatures from +10 to —-80 o C using mains power only; no dry ice, liquid nitrogen or water circulator required. Clip-on adapters and a quick latch mechanism enable the use of 100 or 500 ml flasks that can be exchanged in seconds, with no tools required. Powerful stirring up to 1,200 rpm is provided by the integrated magnetic stirrer; optional auto-aligning overhead stirring up to 800 rpm is also available. In addition, the system can be upgraded to include automated dosing, and pH monitoring and control. The Atlas Cryo Reactor is easy to use as a stand-alone module or, with other Atlas modules, can be connected to Atlas PC Software for full process automation, graphical display of reaction parameters and data logging of results. For details contact: Syrris Ltd 27 Jarman Way Royston Herts SG8 5HW, U.K. Tel: +44 (0) 1763 242 555 E-mail: info@syrris.com or Circle ReadersÊ Service Card 15

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Dye+Chem Bangladesh Dates: 3-6 September 2014 Venue: Dhaka, Bangladesh Details: Biggest show in Bangladesh for buyers and suppliers of dyes & chemicals Organiser: Conference & Exhibition Management Services Limited Contact: +65 6829 2144 Email: cems@cems-asiapacific.com Website: www.cemsonline.com Corcon 2014 Dates: 12-15 November 2014 Venue: Grand Hyatt, Mumbai Details: Corrosion Conference and Expo Organiser: Nace International Gateway India Section (NIGIS) Contact: +91 22 2579 79 30; +91 22 2579 73 54 Email: kim.shah@nace.org Website: www.corcon.org

Speciality & Agro Chemicals America Dates: 8-10 September 2014 Venue: Charleston, USA Details: The 3 rd Annual Event for Agro, Specialty, and Custom Chemicals Organiser: American Chemical Marketing Contact: 1 215 882-9100 Email: tom.leahy@chemicalsamerica.com Website: www.chemicalsamerica.com

Watertech India 2014

RPTC

Dates: 10-12 September 2014 Venue: Pragati Maidan, New Delhi Details: Trade Fair for Water & Wastewater Treatment & Management Organiser: Messe Frankfurt Trade Fairs India Pvt Ltd Contact: +91 22 6144 5900 Email: rohit.rebello@india.messefrankfurt.com Website: www.watertechindia.com

Dates: 8-11 September 2014 Venue: Moscow, Russia Details: Russia & CIS Refining Technology Conference & Exhibition Organiser: Euro Petroleum Consultants Ltd Contact: +7 495 517 77 09 Email: moscow@europetro.com Website: www.europetro.com

World PetroCoal Congress

ICIF, China

Dates: 15-17 Februar y 2015 Venue: Convention Centre-NDCC, New Delhi Details: On sustainable usage of the non-renewable resources Organiser: Energy and Environment Foundation Contact: +91 11 2275 8149 Email: punit.nagi@ee-foundation.org Website: www.worldpetrocoal.com

Dates: 11-13 September 2014 Venue: Tianjin, China Details: The 13 th International Chemical Industry Fair 2014 for Chemical & Petroleum Organiser: China National Chemical Information Centre Contact: +86 10 6444 4135 Email: fany@icif.cn Website: www.chinaexhibition.com

India Chem

Middle East Coatings Show 2015

Dates: 9-11 October 2014 Venue: Bombay Convention & Exhibition Centre (BCEC), Mumbai D e t a i l s : A n ex h i b i t i o n o n c h e m i c a l , p e t r o c h e m i c a l a n d pharmaceutical sector Organiser: Federation of Indian Chambers of Commerce & Industry Contact: +91 11 2373 8760; +91 11 2376 5081 Email: manoj.mehta@ficci.com Website: www.indiachem.in 78 Â&#x160;QCQOP

Dates: 9-11 March 2015 Venue: Dubai International Convention & Exhibition Centre, UAE Details: An event for raw materials suppliers and equipment manufacturers Organiser: DMG Events Ä&#x192; ME & Asia Contact: +971 4 4380355 Email: info@dwtc.com; chrishamilton@dmgeventsme.com Website: www.coatings-group.com DAIE?=H"JCEJAANEJC4KNH@


Project Update CEW New Contracts/Expansions/Revamps The following list is a brief insight into the latest new projects by various companies in India. Ć CHEMICALS Sayona Colors, belonging to the Sayona Group, is planning an expansion of its dyes and colours manufacturing project in Navrangpura, district: Ahmedabad, Gujarat. The project will involve capacity expansion of products like synthetic organic dyes, food colours and cosmetic colours. The project is waiting for international collaboration.

plant. The company also plans to produce Amitriptyline HCl in the same unit in the future.

Punjab Chemicals & Crop Protection is planning a thiamethoxam manufacturing project in villages: Kolimajra and Samalheri, district: Mohali, Punjab. The project will come up at the companyÊs existing plant premises. The project is in planning stage.

Ć NON-CONVENTIONAL ENERGY ACME Solar Energy is planning a 30-MW solar photovoltaic integrated power project at a cost of C 2.4-billion in Chhattisgarh. The company is a JV between ACME Cleantech Solutions, EDF Energies Nouvelles (EDF EN) and EREN, Luxembourg. PPA is yet to be signed with Chhattisgarh State Power Distribution Company (CSPDCL). The project is in planning stage. The project is planned for completion in 1-year from zero date.

S K Solvochem Private Limited is planning a 1,500-TPA synthetic organic chemicals manufacturing project ă dye and dye intermediates, bulk drug and intermediates excluding drug formulations, synthetic rubbers, basic organic chemicals, other synthetic organic chemicals and chemical intermediates at a cost of C 20-million in village: Nimbua, district: Mohali, Punjab. The public hearing was held in January 2014. The project is waiting for environmental clearance. Nuray Chemicals is implementing a ferric citrate-manufacturing project at the existing unit in SIDCO Industrial Estate, Kakalur, district: Tiruvallur, Tamil Nadu. Civil, mechanical and engineering work is in progress. The project is scheduled for completion in Q4 2014. Equipment is already available. Lion Tapes Private Limited, a sister concern of Stretch Bands, Gujarat, is planning a 100-TPM synthetic organic chemicals manufacturing project in GIDC, Chitra Estate, district: Bhavnagar, Gujarat. As of October 2013, the project is waiting for environmental clearance. Work on the project is expected to commence this year. According to the MoEF sources, the project includes products like 40-TPM of Fast Red B Base, 20-TPM of Fast Bordeaux GP Base, 10-TPM of Fast MNPT (Red G) Base, 5-TPM of Fast Red 3GL Base, 10-TPM of Fast Scarlet RC Base, 5-TPM of Fast Yellow GC Base, 5-TPM of Fast Orange GC Base and 5-TPM of Fast Red RC Base. The commercial waste generated from administration building would be disposed through sale to scrap vendors The generated industrial wastewater will be treated in ETP and treated effluent will be discharged through common pipeline. Vasudha Pharma Chem Limited is planning a chemical manufacturing project - 1-(2-Phenylethyl) piperidin-4-one manufacturing unit in Parawada, district: Visakhapatnam, Andhra Pradesh. As of September 2013, the project is waiting for Government approval. 1-(2-Phenylethyl) piperidin-4-one is used as an intermediate in the manufacture of chemicals and pharmaceutical drugs. This is a new product line in the existing Chemical Engineering World

Resil Chemicals Private Limited is planning a specialty chemicals manufacturing project in Malur, district: Kolar, Karnataka. As of July 2013, land has been partially acquired. The project is in conceptual stage. Other details are yet to be finalized.

Shri Shivsagar Sugar & Agro Products is planning a 18-MW bagasse-based co-gen power project in village: Udpudi, district: Belgaum, Karnataka. The project will come up in the existing 150-acre sugar plant premises. Documentation work for preparation of tender is under progress. The project is planned for completion in 12 months from zero date. Rashtriya Ispat Nigam is planning a solar photovoltaic grid connected power project in district: Visakhapatnam, Andhra Pradesh. Expression of Interest invited for setting up of floating/ fixed solar PV-based grid connected power plant on Build, Own and Operate (BOO)/Build, Own, Operate and Transfer (BOOT) on Kanithi Balancing Reservoir (KBR) at Visakhapatnam Steel Plant. At the Visakhapatnam steel plant, the company is expanding the capacity of the unit from the existing 5.2-million to 10-million TPA. The company is investing C 198-billion in the project. In March 2014, the company had invited EoIs for prospective joint venture partners for installation of a seamless tube mill for the steel plant project. Siddheshwari Paper Udyog is implementing a 6-MW rice husk-based captive power project in Kashipur, district: Udham Singh Nagar, Uttarakhand. The project is coming up with an expansion of its kraft paper-manufacturing unit. Civil work is nearing completion and machinery has been ordered. The Jeypore Sugar Company Limited is planning an expansion of its bagasse-based co-generation power plant from initial 0.5-MW to 8.5-MW in village: Chagallu, district: West Godavari. Andhra Pradesh. As of January 2014, the project will come up along with a new 120-KLD grain-based distillery. The project is waiting for environmental clearance. Savera Beverages is planning a 5-MW coal and bagasse-based captive power project in village: Hiranwali, district: Fazilka, Punjab. The project is waiting for environmental clearance and QCQOPŠ79


CEW Project Update is planned for completion in 6 months from zero date. 28-acre of land has been acquired. The project will come up along with a 100-KLD grain-based distillery to produce extra neutral alcohol. Arunodaya Techsolar Power Projects Private Limited, an SPV of BM Solar Systems LLP, is planning a 5-MW solar independent power project in village: Kudluru, district: Anantapur, Andhra Pradesh. Work on the project commenced in November 2013. 26-acre of land has been acquired. DPR is yet to be prepared. Approval has been received from the Central Power Distribution Company of Andhra Pradesh Ć THERMAL POWER Rungta Mines is planning a 120-MW coal-based captive power project in district: Dhenkanal, Odisha. The project will come up along with an integrated steel project in the same location, which is in planning stage. Land acquisition is in progress. Talavadi Cements, a subsidiar y of Birla Cor poration, is planning a 35-MW captive power project in village: Bari, district: Satna, Madhya Pradesh. JM Environet is the Environmental Consultant. The project is waiting for environmental clearance. The power generated will be used for the cement project to come up in the same location, which is in planning stage. VP Cements is planning a 1ï40 MW in Phase-I and another 1ï40 MW in Phase-II coal-based captive power plant in village: Gundlakunta, district: YSR, Andhra Pradesh. The project is to be implemented in two phases. Land acquisition is under progress. Both the phases are waiting for environmental clearance. The project will come up as part of its C 16-billion 2-phase integrated cement project. Work on Phase-I is expected to commence in 2015. Work on Phase-II is expected to commence in 2017. Kanodia Cement, belonging to the Kanodia Group, is planning a 15-MW coal-based captive power plant in Unit-I, Durgawati, district: Kaimur (Bhabua), Bihar. The project is waiting for environmental clearance. Land has been acquired. The project will come up along with an ordinary port land cement manufacturing project. The total cost of both the projects is C 900-million. Hira Electro Smelters, formerly known as RVR Smelters, belonging to the Hira Group, is planning a 20-MW waste heat recovery-based captive power project in Bobbili, district: Vizianagaram, Andhra Pradesh. The project is in conceptual stage. Work on the project is expected to commence in 2017. The project will come up along with a 50,000-TPA coke oven products manufacturing project. Jai Bhole Cement Combine, a group company of Zawar Sales, is planning a 72-MW (coal as fuel) and 10-MW (waste heat recovery as fuel) captive power project in 80 ŠQCQOP

Velabai, district: Yavatmal, Maharashtra. Equipment supplier is yet to be appointed. The project is waiting for final approval of environmental clearance. Work on the project commenced in March 2014 and is planned for completion in H1 2017. The project will come up as part of its C 151-billion integrated cement project spread over 2,500-acre of acquired land. Aditya Birla Nuvo is planning an expansion from 34.5-MW to 54.5-MW of its coal and lignite-based captive power project at a cost of C 8,500-million (inclusive of viscose filament yarn project) at Indian Rayon unit at Veraval, district: Gir Somnath, Gujarat. The project is waiting for environmental clearance. The project is planned for completion in 2 years from zero date. Cauvery Power Generation Chennai, an SPV promoted by the promoters of Kaveri Gas Power, is planning an expansion of its coal-based power project in village: Sirupuzhalpettai and Billakuppam, district: Tiruvallur, Tamil Nadu. The capacity will be augmented from 63-MW to 213MW. The coal for the plant is impor ted from Indonesia and supplied by Coastal Energy. The project is in a conceptual s t a g e. T h e 6 3 - M W c o a l - b a s e d p owe r p r o j e c t s t a n d s commissioned since 2012. Rashi Steel & Power, formerly known as Rashi Strips, is implementing a 43-MW coal-based captive power project in village: Paraghat and Beltukri, district: Bilaspur, Chhattisgarh. Grass Roots Research and Creation India are the Consultants to this project. Civil work is in progress and the total project is scheduled for completion in 4 years. According to MoEF sources, total land requirement is 199-acre, out of which 77-acre has been acquired and the remaining 122-acre is under acquisition. The power requirement will be 46-MW. Out of the 46-MW power, 43-MW will be produced by the coal based captive power plant and shor tfall of 3-MW to be met from State grid of Chhattisgarh Electricity Board. The projects from the coal washery is about 18,000-TPA. This will be blended with 20% of impor ted raw coal. Then the mix will be recycled to captive power plant of 1ï43-MW for feeding. Dust collected from all dust collecting system consists of iron ore fines will be sent back to the raw pellet mix. The fly ash generation from the power plant is 26,000-TPA, which will be sold to the brick manufacturers. The captive power project is a par t of its C 5,400-million integrated steel plant. Jayaswal Neco Industries Limited is planning a 50-MW waste heat recover y-based independent power project in villages: Dagori, Ameri Akberi and Udgaon, district: Bilaspur, Chhattisgarh. As of February 2013, Public hearing for the project is over. MoU is yet to be signed with the State Gover nment. The project is waiting for environmental clearance and is planned for completion in 20 months from zero date. Chemical Engineering World


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Interview CEW

Pre-Investment in Technology Will Continue to Pay Off

Bharat Oman Rełneries Limited (BORL) opted for Nelson Complexity Index of 9.1 with hydrogen intensive hydrocracking units to produce the best class fuel for the BPCL – Oman Oil’s joint venture inland rełnery in Bina in 2006 at the conceptualisation stage. The rełnery was dedicated to the nation in 2011. R Ramachandran, COO, BORL, in an exclusive interview with Mittravinda Ranjan, reveals BORL’s plan to announce an investment of around 3000 crore towards debottlenecking of the rełnery and increasing the current 6 MTPA capacity to around 7.8 MTPA..

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CEW Interview Walk us through the idea behind setting up the Âzero fuel oil refinery.Ê Typically, as one would know, the business of refinery is all about margins. The joint venture refinery was planned with a clear vision of producing high value middle distillates - and not making low value fuel oils - to meet IndiaÊs future auto fuel demand. We opted to set up the hydrogen intensive hydrocracking and coking refinery with the Nelson Complexity Index of 9.1 to maximise middle distillates and produce Euro III / Euro IV compliant grades to serve the Indian market. We had factored the future trends and need to further upgrade the refinery in terms of capacity and quality - delivering Euro IV and Euro V complaint fuels. BORL took the chance in 2006- 2007 to pre-invest in technology taking Euro III as the basis and Euro IV as the norm in next couple of years. And I am glad to share that the proposed IndiaÊs Auto Fuel Vision & Policy 2025 document suggests that the fuels should meet Euro IV standards by 2017, Euro V standards by 2020. We are now graduating to Euro V emission specifications before 2019-2020, which is the future of auto fuel in India. We have a plant with which minimum investment will be Euro IV and Euro V simultaneously compliant for both diesel and gasoline. As compared to rest of the peers, who may require large investments to set up new plants or modify existing units, we can upgrade the plant to Euro V specs with minimum investment and in lesser time. Diesel plays the predominant role in the product basket and accounts for almost 50 per cent followed by gasoline and aviation turbine fuel which account for about 16 and 15 per cent respectively. Rest of the products includes LPG, naphtha along with solid fuels like petcoke and sulphur.

Tell us about the strategy for selection of plant configuration. At BORL, we have integrated Full Conversion Hydrocracker (FCHC) and Diesel Hydrotreater (DHT). The FCHC maximises the diesel production meeting the stringent qualities like low sulphur high cetane number etc and the DHT desulphurises the high sulphur diesel produced from the Crude and Vacuum Distillation Unit (CDU/ VDU) and Delayed Coker Unit (DCU). DHT also improves the cetane number of the streams to meet Euro III and IV norms. The delayed coker process is based on severe thermal cracking to produce distillate products viz gas, LPG, naphtha and coker gas oil and some quantities of petroleum coke. The pet coke is used as the solid fuel for captive power generation in the refinery. The idea was to integrate solid fuel coming out of the plant with that of the power plant. We have installed Circulated Fluidised Bed Combustion (CBFC) boilers for generating power through Steam Turbine Generators (STG) using solids as the main fuel. No other refinery in India currently has solid fuel based power generation captive power plant and still use naphtha or gas for power generation. This configuration of Petcoke + CFBC Boilers based power generation is frequently looked at as the choice for the future. Naphtha Hydrotreating Unit (NHT) process involves catalytic treatment of straight run naphtha to remove sulphur and other impurities and we produce full range of light to heavy naphtha in the Naphtha Splitter Unit (NSU). The gasoline block is the other critical unit which has the Continuous Catalyst Regeneration & Reforming Unit (CCR) which produces high octane motor spirit component from heavy naphtha to finally produce high quality unleaded petrol. Hydro treated heavy naphtha from NHT

is combined with recycle gas and sent to a series of reactors. Reactor effluent is separated into gas, LPG and reformate streams. This unit increases the potential of naphtha by virtue of which we are able to maximise the diesel and motor spirit which are high value fuels BORL intends to produce for the market. What was the rationale behind integrating hydrocracker with diesel hydrotreater which was quite uncommon at that time? Well, hydrocrackers and hydrotreaters are highly cost intensive and by integrating these two units we have been able to take care of some of the common things and been able to knock off the extra CAPEX and also reduce the OPEX in the longer term. Two stages of hydrocracker are integrated with diesel hydrotreater, which is first of its kind in the world. This idea has now caught up and there are more units coming up.. Tell us about the market position of BORL and how well geared are you for the future in Indian market? BORL has been supplying high quality diesel in local Bina market. The high quality can be attributed to the hydrogenation process and all impurities are removed. I feel happy to say that what we had predicted has turned out to be the future. Currently, we produce 50 ppm fuel but we are capable of producing 10 ppm of market demands with the marginal investment. By incorporating a catalyst change or some modification we can be 100 per cent Euro V compliant. We designed the process to handle 100 per cent high sulphur crude processing capability. It proved to be advantageous for us as we were looking at all crudes which were available in plenty and we were also not affected too much by the vagaries of low sulfur crude which are more in demand across the other refiners. Our plan to pre-invest in technology

Diesel plays the predominant role in the product basket and accounts for almost 50 per cent followed by gasoline and aviation turbine fuel which account for about 16 and 15 per cent respectively 86 ŠQCQOP

Chemical Engineering World


Interview CEW The North American market is now getting off the radar of the Middle East due to the locally available huge shale gas which has compelled the Arab nations to look out for different markets to redirect the crude oil production. has turned to be the best decision. Complete plant layout has been done in such a manner that the current level capacities can be increased in an optimal manner to up to 15 MTPA, two and a half times of existing 6 MTPA capacity to meet the growing future demand with appropriate investment. BORL also enjoys the privilege of being the only on-land refinery within 400 km, strategically located to cater high demand of petroleum products especially in the Northern zone. The final products reach domestic market through pipeline transportation, roadways, railways etc. We enjoy the locational advantage of being close to the high density markets including UP, MP, Rajasthan and Delhi and beyond through the pipeline network which connects us very well with the North and North Central Indian markets. Just to give an example, the pipeline network that runs from Bina up to North Indian states with tap offs at various points allows us to move faster on the forward market in more cost competitive way as compared to other competitors. Our entire fuel production is directed for the Indian market and we already have our strategies in place to support our further growth. The North Indian market is elastic and growing at about 5-6 MTPA which would provide enough space to the competition. If the situation arises where other refiners start supplying export surpluses in local markets, we already have strategies in place to be more cost competitive. We have the inherent advantage of having spent about C 2000 crores to a million tonne which is much below the average cost being spent by other new refiners which puts us in a better Chemical Engineering World

position as far as returns on investments are concerned. What about exports? Are you looking at feeding the international markets as well? BORL is not a global player, we are India centric with a clearly defined market and for us it is more important to see if the Indian market is growing or not. Initially, we were exporting small quantities of naphtha since it does not carry great value in Indian context. However, with some innovative measures we started upgrading naphtha to motor spirit as a value addition and were able to reduce naphtha quantities to less than half. There are some occasional exports though but our middle distillates are targeted for the Indian market only. In lieu of geopolitical issues in the Middle East what kind of challenges do you foresee for BORL in terms of crude linkages? Strategically, the Middle East is most advantageous for us. We have entered long term understanding with some of the leading national oil companies and it has ensured long term business for them on one hand and enabled us to secure supplies on constant and stable basis on the other. The North American market is now getting off the radar of the Middle East due to the locally available huge shale gas which has compelled the Arab nations to look out for different markets to redirect the crude oil production. Over the last several years, highly crude demand too has eased out and major suppliers from Saudi, Kuwait and other Middle Eastern markets are looking for opportunity to have strategic long term relationship crude arrangement with Indian companies.

Though we have established strong long term linkages other options have not been closed as well. We are constantly looking at sourcing our supplies from other markets like Africa as well as other South American markets for different crude mixes. Do you feel the expansion of middle distillate based refineries is the future for Indian refiners? In my view, we have always underestimated the growth of diesel and gasoline in the Indian market as no one had predicted the manifold growth that the Indian refining sector has seen over the last couple of years. Today, Indian refining capacity has surpassed 210 MTPA which surpassed the numbers projected under Vision 2020 of the hydrocarbon industry drafted in the year 2000. And now with the expectations of high growth rates, we might reach a situation where many of the inland areas may still remain product starved despite the expansions taking place. I think still the space would be there for everyone. All that one needs to do is to foresee the future trends and be ready to deliver specs for the future markets. Tell us about your future plans We are very close to announcing the debottlenecking of plant which would entail investments to the tune of around 3000 crores. We will increase the nameplate capacity from current 6 MTPA to about 7.8 MTPA and would operate at around 8 MTPA. We have already completed our feasibility report and are going for approval processes. We are likely to receiving the clearances for the project anytime soon. We target starting the project by end of this year and commission in next 36 months by around early 2018. QCQOPÂ&#x160;87


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