Hydrocarbon Processing - March 2021 - 32

Petrochemical Technology
25

17.2

18.5

Case 4
18.1

Case 3

18.8

Case 2

18.9

Case 1
19.2

Base case

10.7

11.7

12.3

10.9

9.6

IRR, %

12.3

Base pricing and CAPEX

Diesel price (-5%)

Gasoline price (-5%)

Ethylene chain price (-5%)

Propylene chain price (-5%)

CAPEX (+10%)

FIG. 6. IRRs for each case study for the sensitivity scenarios.

methyl methacrylates/poly
methyl methacrylates. These
can be taken up as site-specific
enhancements.
4. The integration of petrochemical
blocks increases CAPEX
requirements and overall project
complexity. This would require
larger financial and execution
resources. Construction time
and ramp-up time until full
production can be significantly
higher for a large and
complex integrated refinery,
thus impacting return on
investment (ROI).
5. The competitiveness of integrating
petrochemicals with a refinery is
dependent on two factors:
a. Relative competitiveness of
naphtha vs. cheap, naturalgas-based feedstocks for the
cracker. Considering a low oil
price regime, it is assumed that
naphtha-based crackers will
remain competitive in India.
b. Integration is made more
competitive by ensuring
better integration with refinery
streams and by achieving
scale without diverting the
diesel stream to the cracker or
the aromatics complex. The
investment costs are expected
to be significantly higher in
the latter option due to the
additional units required to
convert diesel to naphtha.
Given the robust diesel
requirement in the Indian
32

MARCH 2021 | HydrocarbonProcessing.com

market, this has not been
considered in the
current study.
6. The study is based on a single light
crude; however, there does exist
the option of utilizing heavier/
cheaper crude slates. This will
require changes to the refinery
conversion configuration and
alternate bottoms upgrading
technologies, such as an ebullatedbed hydrocracker.
7. Several cutting-edge technologies
are in the process of development
and implementation. Thermal
cracking of crude oil, along
with improvements around the
ethylene cracker to accept heavier
feedstocks and higher-intensity
hydrocracking, are some areas
likely to attract significant research
and development. When these
newer technologies become
commercially available, they have
the potential to change the face
of refining and petrochemical
configurations.
8. Growth in consumer chemicals
and plastics brings in
environmental liabilities that are
far too great to be taken lightly in
the long term. Responsible growth
strategies would require significant
investments for the development
of necessary infrastructures to
support a sustainable culture of
" protect, reuse and recycle. "
Refining is a capital-intensive industry operating between two related, but
independent, markets for crude oil and

finished petroleum products. Configurations and operations that deliver adequate ROI are a function of a complex
set of variables. Some variables, such as
competition with alternate feedstocks
and declining growth in transportation
fuels, are global in nature. These require
devising more diverse product slates by
including petrochemicals. Other variables (such as local market dynamics,
feedstock/product logistics and construction costs) are site specific and are
to be used to arrive at the correct mix of
fuels and petrochemicals that will remain
profitable in different market scenarios.
The case study presented provides directional insights into the paradigm shift
from fuels to chemicals. The data presented should be treated as conceptual
views of the authors and not directly attributed to the authors' organization.
SUSHREE CHAUDHURI is a
Process Engineer with Bechtel India.
She has 20 yr of experience in
petroleum refining, petrochemicals,
offshore oil and gas and flare
systems, and front end and detailed
design. Prior to joining Bechtel India,
she worked with Fluor Gurgaon and Foster Wheeler.
She holds BS degrees in chemistry and chemical
engineering from the University of Calcutta.
RAJ BHADRA SINGH is a
Process Engineer with Bechtel India.
He has 27 yr of experience in EPC,
FEED and basic engineering for
petroleum refining, petrochemicals
and gas processing projects.
Prior to joining Bechtel India, he
worked with Fluor Gurgaon and Engineers India Ltd.
He earned a BS degree in chemical engineering from
the National Institute of Technology in Surathkal
and an MS degree in process engineering design
from the Indian Institute of Technology in Delhi.

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