refining india 2024
Mastering mega-scale refinery and petrochemical projects
Jagadesh Donepudi and Michelle Wicmandy KBC (A Yokogawa Company)
that objectives are met, and stakeholders collaborate to reach desired outcomes. • Ensuring quality and compliance: The OTA leverages real-time data, equipment ratings, and engineering limits to assess performance against critical specifica- tions. Using Petro-SIM ® simulation soft- ware, results are visualised, and alerts for overloads and noncompliance are sent. This ensures quality and compliance with indus- try standards, safety regulations, and envi- ronmental requirements are met. • Operational readiness: The OTA pre- pares the facility for reliable operations, which includes ensuring data quality for decision-making purposes and optimising waste management strategies. The project team assesses proposed practices against best-in-class standards, assesses the oper- ability of new units, and optimises plot plans to maximise space utilisation, ensuring effi- cient operations. • Emissions reduction and decarboni- sation strategies: The OTA specialises in estimating baseline emissions, reviewing scenarios, and crafting plans for net-zero targets. Using Petro-SIM digital twins and Visual MESA ® Greenhouse Gas Emissions Management software, KBC ensures operational excellence, energy efficiency, safety, digital integration, and progress toward net-zero emissions. Improving Performance After the project’s completion, the OTA con- tinues advising the client to maximise the facility’s performance by improving under- standing of current operations through a digital twin, real-time analytics, and visuali- sation accessible to all stakeholders. Conclusion The growth in India’s energy demand, cou- pled with its economic growth, has spurred the development of mega-scale refinery projects. These complex projects require a holistic approach for successful execution. In this context, the OTA plays a vital role as the owner’s essential partner in managing these complexities and achieving the pro- ject’s objectives. Through comprehensive oversight, rigor- ous analysis, stakeholder alignment, and technological expertise, the OTA can help owners in the refinery and petrochemical sectors deliver energy-efficient, reliable, safe, and financially viable facilities. With a focus on sustainability, the OTA is lead- ing the way for Bringing Decarbonisation to Life™. References 1 India Brand Equity Foundation, Oil & Gas Industry in India, 2024. Available at: www.ibef. org/industry/oil-gas-india 2 Paraskova, T., India Looks to Double Oil Refining Capacity by 2030 , 2020. Available at: https:// oilprice.com/Energy/Crude-Oil/India-Looks-To- Double-Oil-Refining-Capacity-By-2030.html Contact: jagadesh.donepudi@kbc.global
India’s economy is experiencing impressive growth. As its gross domestic product (GDP) is projected to reach $8.6 trillion by 2040, India’s energy use is expected to surge, 1 nearly doubling to 1,123 million tonnes of oil equivalent by the same year, according to the India Energy Outlook 2021 . Meeting this increasing demand for petro- leum products and petrochemicals requires new energy sources. Indian refineries are not only expanding but also diversifying in the petrochemicals sector. Plans are in place to double oil refining capacity to 450- 500 million tonnes by 2030, 2 with an addi- tional 56 million tonnes per annum (MTPA) by 2028 to increase domestic capacity to 310 MTPA. 1 Refiners are increasingly integrating refining with petrochemicals, moving from stand-alone refineries to integrated refin- ing and petrochemical facilities. This stra- tegic move facilitates the transformation of crude oil into a broad range of high- value chemicals. Globally, refiners have embraced this practice and taken integra- tion to a new level. However, executing these mega projects requires deep domain knowledge and a full understanding of the challenges involved to close the knowledge gap. In India, refineries are moving rapidly to establish new petro- chemicals units and polymers. The produc- tion of petrochemicals via steam crackers, which uses feedstocks like naphtha, liquid petroleum gas (LPG), and ethane and pro- pylene-based petrochemicals from the FCC units is being contemplated. Mega Project Landscape Mega-scale refinery projects are char- acterised by their large scale, significant capital investment, and involvement from multiple stakeholders. They often involve constructing new refineries, expanding existing facilities, and integrating petro- chemical units. Successfully executing these projects requires that a wide range of technical, operational, and financial aspects be considered. One of the key challenges of executing a mega project lies in the inherent complexity of integrating various systems and co-ordi- nating diverse stakeholders. Successful implementation of a mega project involves seamless coordination of various entities like licensors, project management con- sultants, front-end engineering and design (FEED) contractors, equipment suppliers, and engineering, procurement and con- struction (EPC)/lump sum turnkey (LSTK) contractors. As shown in Table 1 , each of these entities has its own focus, which makes it challenging to effectively integrate the inside battery limit (ISBL) and outside battery limit (OSBL) facilities. Owner Technical Advisor To drive the success of mega-sale refinery projects, oil and gas companies are appoint- ing Owner Technical Advisors (OTA) to over-
Did you know? Owner Technical
Owner
PMC Feed
EPC
Licensors
see and manage the entire project. The OTA serves as the interface among the owner project team, licensors, PMC and EPC con- tractors, as shown in Figure 1, to facilitate decision-making and ensure the various components of the project are aligned to reduce the risk of delays, cost overruns, and operational challenges. These consultants of international repute provide valuable guidance to the owner throughout the project lifecycle, such as technology selection, engineering stand- ards, employee safety, operational improve- ments, and more, to function as an extended arm of the client. At KBC, the OTA’s role extends beyond just providing technical advice. They oversee the entire project, from pre-feasibility and feasi- bility studies to the final commissioning and start-up. This oversight includes monitoring the progress of ISBL and OSBL activities, identifying potential bottlenecks, optimising configurations, and ensuring alignment with the project’s objectives and budget. From KBC best practices, rigorous simu- lations should be carried out to supplement linear programming (LP) vectors. These assessments are critical to understand- ing feedstock availability, optimisation, Advisors play a vital role in helping oil and gas companies stay ahead of the curve by adopting advanced technologies in their mega projects
Owner Technical Advisor (OTA)
Figure 1 Owner Technical Advisor – interfaces
and product slate to determine economic unit capacities. While LP methods evalu- ate configurations, they should accurately represent sensitivities toward feedstock characteristics and product quality. Once feasibility studies are complete, the next steps involve setting objectives, executing the project, and improving performance. Setting Mega Project Objectives Mega projects in the oil and gas industry are often at the forefront of technological advancements. The OTA’s expertise in the latest industry trends and best practices can help the client adopt advanced tech- nologies. In addition to enhancing energy efficiency, reliability, safety, and digital capabilities, the OTA can also contribute to the project’s sustainability and profitability. KBC’s refinery and petrochemical config- urations incorporate best-in-class technol- ogy with first-quartile performance targets by implementing the objectives shown in Table 2 . To achieve these objectives, KBC adopts robust design and engineering best prac- tices in various systems. The OTA ensures a smooth transition from construction to operation with minimal disruptions, shift- ing focus from ‘right now’ analysis to ‘what if’ scenarios using advanced technologies to discover ‘what’s best’. Executing Mega Project With the feasibility studies and design in place, the OTA implements the mega pro- ject. During this stage, the OTA ensures
Entity
Role
Focus
Licensors
Supply technology for various licensed units Maximise individual NPV compared to integration and interfacing with other units
Project management and
Overall project execution and guarantees
Project schedule optimisation with cost reduction
consultant (PMC) FEED contractors
Residual engineering and basic engineering
Focuses on the basic design of all disciplines, off-site and cost-estimation and identifies long lead items from the novation
reviews
EPC contractors
Detailed engineering, procurement, and
Construction focus
construction activities
Table 1 Roles and focus descriptions for each stakeholder group
Objective
Description
Energy efficiency Reliable operations Enhancing safety Digital technologies
Optimise energy consumption while minismising the project’s carbon footprint Ensure the facility’s long-term, stable operations for maximising profits Prioritise the safety of workers, the community, and the environment Leveraging technology to improve operational efficiency, data-driven decision-making, and predictive maintenance capabilities
Net-zero emissions Profitable operation
Aligning the project with sustainability goals
Achieve a positive return on investment and maintain the project’s long-term financial viability
Table 2 Objectives identified to reach first quartile performance goals
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