PTQ Q4 2026 Issue

Material balance for the three cases

Performance metrics

Metric

Base case Case 1

Case 2 212%

Product

Base case

Case 1

Case 2

Obj function

100%

206% -26%

LPG, MMTPA

0.63 1.73 3.83

Scope 3 emission

–

-31%

Gasoline, MMTPA Diesel, MMTPA Kerosene, MMTPA

0.86 3.47

Table 2

1.0

Sulphur, KTPA

112.5

about 40 TPD. Considering an NH₃ price of about $500/ ton, the refinery is effectively losing about $6.6 million worth NH₃ per annum while India imported about $1 bil - lion worth of NH₃ in 2024. By recovering NH₃, the refinery could produce approximately 23 KTPA of urea or 50 KTPA of diammonium phosphate (DAP). Considering India’s total refining capacity of about 258 MMTPA, there exists a potential for NH₃ recovery of approx - imately 372 KTPA, which could be used to produce around 1.4 MMTPA of DAP (see Figure 3 ). This could potentially reduce nearly 29% of India’s DAP imports.3 Alternatively, the recovered NH₃ can also be utilised to produce other value-added fertilisers, such as ammonium sulphate or ammonium phosphate sulphate. Key challenges and mitigation strategies While the technical and economic benefits of integrated refinery-petrochemical-fertiliser complexes are compelling, successful implementation requires addressing specific operational, technical, and regulatory challenges. This sec- tion identifies possible implementation barriers and pro - poses practical mitigation measures. • Availability of technologies: One of the primary chal- lenges is the availability of suitable technologies for pro- ducing various petrochemicals and speciality chemicals, as well as for the recovery of NH₃, CO₂, and the conversion of H₂S to sulphuric acid. Most of these technologies are com - mercially available, and licences can typically be obtained from various licensors. However, the main challenge lies in the speciality chem- icals sector, where technology information is often closely guarded and limited to producers. To overcome licensing barriers and facilitate knowledge transfer, forming joint ventures with technology providers can be an effective strategy, especially in the realm of speciality chemicals. • Limited availability of C 4+ olefins and NH₃: Unlike C₂ and C₃ olefins, the supply of C₄+ olefins is relatively lim - ited, which in turn constrains the production of their associ- ated derivatives. However, the demand for these speciality Utilising renewable power and green hydrogen or ammonia will further decrease Scope 1 and 2 emissions, contributing to a more sustainable and environmentally friendly design

HDPE/LLDPE, KTPA

- -

650 400 750 120 195

650 400 750 120 195 345 13.2

LDPE, KTPA

Poly propylene, KTPA

370

Acetone, KTPA Phenol, KTPA

- - - -

Sulphuric acid, KTPA

- -

Ammonia, KTPA

Table 1

This integrated approach fosters a circular economy, enhances operational efficiency, and promotes sustain - able resource management. Additionally, co-processing biomass-based feedstocks alongside crude oil, as well as recycling end-of-life plastics into petrochemical feedstocks, provides further pathways towards sustainability. This circular strategy addresses plastic waste challenges, reduces dependence on fossil fuels, and lowers overall car- bon emissions. Furthermore, utilising renewable power and green hydrogen or ammonia will further decrease Scope 1 and 2 emissions, contributing to a more sustainable and environmentally friendly design. Case study A case study was conducted on a typical 9 MMTPA stan- dalone refinery with 32 API gravity crude oil containing approximately 1.25 wt% sulphur and 0.12 wt% nitrogen. The configuration considered is a standard hydroskimming setup with FCC and delayed coking unit (DCU). The coke produced in the DCU will be utilised to generate power using steam turbine generator (STG), which will partially fulfil plant power requirements. By utilising the internally generated petroleum coke as fuel for power generation, the refinery significantly reduces its dependency on external electricity sources from the grid, thereby lowering operational costs and improving energy security. The base case material balance is provided in Table 1 under the ‘Base case’ column. The revised material balance, incorporating the integra- tion of a steam cracker and aromatics complex, is shown under ‘Case 1’, while the material balance after integrating a fertiliser complex is presented under ‘Case 2’. For simplic- ity, only the feedstocks to the fertiliser complex are consid- ered, rather than the final fertiliser products. The improvements in gross refining margin (GRM) and reductions in CO₂ emissions for Cases 1 and 2, compared to the base case, are illustrated in Table 2 . The figure clearly demonstrates significant enhancements in GRM alongside notable reductions in CO₂ emissions, indicating a move towards a more sustainable and environmentally friendly refinery operation. The NH₃ recovery potential of a 9 MMTPA refinery is

PTQ Q4 2026