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Oct-2012

Planning for revamps

Serbia’s petroleum refinery describes its plans for a continuing programme of plant revamps and updates

ALEXEY RODIKOV
NIS - Gazprom Neft

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Article Summary

Construction of the Pancevo Hydrocracking Complex is currently in its completion phase. Integration of this complex into the existing structure of the Pancevo refinery will enable the plant to increase significantly the quality of its produced motor fuels and to improve the performance indicators of the refinery and of NIS (Naftna Industrija Srbije) as a whole. In particular, this will enable an increase in the rate of production of light oil products, the bottom of the barrel index, Nelson index, and so on. This will allow NIS to compete successfully at the European market for oil products, including the Balkan region where the Euro 5 oil products quality standards are in place and have been in force for several years.

The programme of asset modernisation planned or performed by the companies (in our case, the NIS refineries) is ultimately intended to:
•  Bring the refinery’s own assets up to existing or planned norms for implementation in the region in order to comply with the most recent safety requirements, requirements regarding environmental protection, and the quality of goods consumed regionally
•  To implement an economic strategy that may include the need to enter alternative sales markets, by widening the current product range and decreasing the cost of produced products.

By implementing measures to modernise the Pancevo refinery, NIS is achieving both the first and second target for the successful and efficient performance of the business under the conditions of existing and planned standards in the region it serves.

But the world does not stand still. After completing one stage of the modernisation programme, the refinery’s managers will immediately begin to plan the next phase, to prepare long-term plans and to study changes in the region’s economic and political environment in detail.

Thus, by constantly following changing trends in the need for oil products, constantly addressing the requirements of higher quality standards, 
more and more stringent requirements towards ecological factors and a constantly widening competitive environment, the company’s management will take appropriate decisions regarding the areas and methods of future development, modernisation, reorganisation, and so on.

One of the methods deployed to stay afloat and constantly remain at the highest available technical level, satisfying all modern requirements, is the on-going process of monitoring, analysis and searching for methods to adapt various new production technologies to achieve high-quality oil products at the site. At present, the main priority is given to technologies that enable the achievement of impressive results with lower costs and a minimum payback period.

Returning to technological development at NIS, it is no secret that the company is in the process of actively searching — through analysis and feasibility studies — for alternative technologies that will enable it to fully or partially reduce the production of low-margin products, mainly fuel oil residue, and in parallel to increase the production of high-margin products such as LPG, motor fuel, kerosene and diesel. In general, this area of activity can be defined as seeking and adapting processes related to heavy residue refining.

There is a sufficient number of development projects in the area of conversion hydrogenation processes that will enable the refineries to execute current and future tasks related to heavy residue refining.

Modern heavy residue refining technologies can be classified in two areas: conversion and alternative processes:
•    Conversion (with or without hydrogenation):
    ν Thermocatalytic: processes like LC-Fining, H-Oil, Isotherming, Uniflex, and so on
    ν Thermal: production of coke (delayed coker unit), solvent deasphalting, visbreaking, and so on
•    Alternatives:
    ν    Coke gasification units (Flexicoking) with steam and electric energy production
    ν Gasification units with steam and electric energy production
    ν Production of SNG and heavy residue.

Thermocatalytic technologies
Thermocatalytic technologies (for instance, hydrocracking in a high-pressure environment) are designed mainly for converting heavy, less valuable oil products into more valuable light oil products. Using such technologies, between 30% and 90% of the heavy stocks are usually converted — depending on the process parameters employed — with resulting production of LPG, gasoline, kerosene and a diesel fraction with a low sulphur content.

Advantages
•  Decrease in the volumes of heavy oil products and an increase in the production of light oil products
•  Reduced content of sulphur components and unsaturated hydrocarbons in compliance with quality norms.

Disadvantages
•  High rates of energy consumption
•  Need to use complex catalytic systems, including periodic shutdowns for regeneration or replacement of catalyst
•  Complexities of running the processes
•  Unique technological equipment (tailor-made to order, at high cost)
•  Need to install additional infrastructure including a hydrogen production unit and nitrogen supplies
•  Incomplete conversion of heavy stocks and production of heavy residue.

Thermal technologies
Thermal technologies (physical processes) are also designed for converting heavy, less valuable oil products into more valuable ones including light oil products. With such processes, typically 10% to 50% of heavy stocks are converted, with production of LPG, gasoline and a diesel fraction.

Advantages

•  Decrease in the volume of heavy oil products and an increase in the production of light oil products
•  Possibility of decreasing the viscosity of heavy residue (visbreaking) or of producing alternative oil products (coke)


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