energyconservationinpetroleumrefineriesbyarl

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ENERGY CONSERVATON OPPORTUNITIES -

PETROLEUM REFINERIES

M. Irshad Ramay February 10, 2011

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Contents

NCPC and ARL Energy Scenario Energy Saving Opportunities ARL Case Study CDM Potential in Petroleum Refineries

Contents

Global Network of UNIDO/UNEP National Cleaner Production Centers

1. Brazil 2. China3. Costa Rica4. Croatia5. Czech Republic6. El Salvador,7. Guatemala8. Hungary9. India10. Korea11. Kenya12. Mexico13. Morocco14. Nicaragua15. Pakistan16. Romania17. Russian

Federation18. Salvador19. Slovak

Republic20. Tanzania21. Tunisia22. Uzbekistan23. Vietnam24. Zimbabwe

NCPC

PakistanPakistan

VISION: Dynamic and prosperous NCPC-F committed to principles of CP; through continuous application of integrated, preventive and proactive environmental strategy applied to increase Eco-efficiency and to reduce risk to human and environment.

MISSION: Develop: CP technologies and apply to industrial and commercial

Operations for betterment of environment Promote: CP philosophy as an effective way of combating pollution Operate: As a CP education and training base Establish: Strategic alliances to facilitate the promotion of CP

NCPC-F NCPC-F Vision and Mission

NCPC

NCPCSERVICES

ENERGY AND ENVIRONMENT

ANALYTICAL

COMMUNITY DEVELOPMENT AND CAPACITY

BUILDING

CLEANER

PRODUCTION

WASTE MANAGEMENT

NCPC Core Areas of ServicesNCPC-F

NCPC

• ATTOCK REFINERY LIMITEDATTOCK REFINERY LIMITED

• NATIONAL REFINERY LIMITEDNATIONAL REFINERY LIMITED

• PAKISTAN OILFIELDS LIMITEDPAKISTAN OILFIELDS LIMITED

• ATTOCK PETROLEUM LIMITEDATTOCK PETROLEUM LIMITED

• ATTOCK CEMENT PAKISTAN LIMITEDATTOCK CEMENT PAKISTAN LIMITED

• ATTOCK GEN LIMITEDATTOCK GEN LIMITED

• ATTOCK INFORMATION TECHNOLOGIES SERVICES (PVT.) ATTOCK INFORMATION TECHNOLOGIES SERVICES (PVT.) LIMITEDLIMITED

AATTTTOOCCKK

GGRROOUUPP PPRROOFFIILLEE

ARL is a member company of Attock Group of ARL is a member company of Attock Group of Companies, a fully integrated group covering all Companies, a fully integrated group covering all segments of oil and gas industry from segments of oil and gas industry from exploration to production, and refining to exploration to production, and refining to marketing of a wide range of petroleum products marketing of a wide range of petroleum products in Pakistan. in Pakistan.

ARL PROFILEARL PROFILE

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ARL

HistoryHistoryAATTTTOOCCKK

RREEFFIINNEERRYY

LLIIMMIITTEEDD

Since its commissioning in 1922, the Morgah Oil Refinery operated Since its commissioning in 1922, the Morgah Oil Refinery operated by The Attock Oil Co has passed through various stages of by The Attock Oil Co has passed through various stages of transformation and stood the test of time. transformation and stood the test of time.

From batch distillation stills of 2,500 barrels per day (BPD), today it From batch distillation stills of 2,500 barrels per day (BPD), today it has grown into a modern state-of-the-art refinery with a capacity of has grown into a modern state-of-the-art refinery with a capacity of 42,000 BPD.42,000 BPD.

Pursuant to an Agreement signed in November 1978 between Pursuant to an Agreement signed in November 1978 between AOC, POL, ARL and the Government, formation of ARL took place AOC, POL, ARL and the Government, formation of ARL took place to take over the Morgah Refinery business and upon public listing to take over the Morgah Refinery business and upon public listing of the Company in June 1979 , the Government became an equity of the Company in June 1979 , the Government became an equity partner (35%) . ARL is listed on the three Stock Exchanges of the partner (35%) . ARL is listed on the three Stock Exchanges of the country. country.

Government disinvested its shareholding in 2003.Government disinvested its shareholding in 2003.

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ARL

HistoryHistoryAATTTTOOCCKK

RREEFFIINNEERRYY

LLIIMMIITTEEDD

1922-38 BATCH DISTILLATION 2,500 BPD

1939-86 DUBBS PLANT 5,500 BPD

1939 LUMMUS PLANT 5,000 BPD

1981 HBU-I DISTILLATION UNIT 20,000 BPD

1981 HBU-II DISTILLATION UNIT 5,000 BPD

1999 HEAVY CRUDE UNIT 10,000 BPD

1999 REFORMER COMPLEX 5,000 BPD

2001 CAPTIVE POWER PLANT 7.5 MW

2005 HBU-I UPGRADATION Capacity Enhanced

2005 REFINERY UPGRADE STUDY F.W USA

2006 PREFLASH STUDY UPDATE CB&I USA

2008 ISOMERIZATION / DHDS (Front End Engineering & Design) UOP USA

2008 DCS INSTALLATION AT HBUs Honeywell

2009 FEED OFFSITES/AUXILIARY UNITS ENAR PAKISTAN

2002-2010 NEW STORAGE TANKS 70% CAP ENHANCEMENT

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ARL

HONOURSHONOURS

BEST CORPORATE REPORT AWARD NINE TIMES WINNER IN ENERGY SECTORBEST CORPORATE REPORT AWARD NINE TIMES WINNER IN ENERGY SECTOR

THIRD PAKISTAN INDUSTRIAL FAIR, 1THIRD PAKISTAN INDUSTRIAL FAIR, 1stst POSITION POSITION

CORPORATE EXCELLENCE AWARD THREE TIMES WINNERCORPORATE EXCELLENCE AWARD THREE TIMES WINNER

EXPORT TROPHY FROM RAWALPINDI CHAMBER OF COMMERCE & INDUSTRY EXPORT TROPHY FROM RAWALPINDI CHAMBER OF COMMERCE & INDUSTRY

(RCCI), 1(RCCI), 1stst POSITION POSITION

EXPORT TROPHY FOUR TIMES WINNEREXPORT TROPHY FOUR TIMES WINNER

CORPORATE SOCIAL RESPONSIBILITY AWARD CORPORATE SOCIAL RESPONSIBILITY AWARD

NFEH ENVIRONMENTAL EXCELLENCE AWARD NFEH ENVIRONMENTAL EXCELLENCE AWARD

PLATTS GLOBAL ENERGY AWARD FOR COMMUNITY DEVELOPMENT PROGRAMPLATTS GLOBAL ENERGY AWARD FOR COMMUNITY DEVELOPMENT PROGRAM

AASHA AWARD FOR MOST GENDER FRIENDLY COMPANIES IN PAKISTANAASHA AWARD FOR MOST GENDER FRIENDLY COMPANIES IN PAKISTAN

PEOPLE AS KEY RESOURCE AWARDPEOPLE AS KEY RESOURCE AWARD

BEST SUSTAINABILITY REPORT AWARD IN LOCAL LISTED COMPANIES FROM ACCA BEST SUSTAINABILITY REPORT AWARD IN LOCAL LISTED COMPANIES FROM ACCA

& WWF THREE TIMES WINNER& WWF THREE TIMES WINNER

GLOBAL COMPACT RESPONSIBLE BUSINESS AWARDGLOBAL COMPACT RESPONSIBLE BUSINESS AWARD

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AATTTTOOCCKK

RREEFFIINNEERRYY

LLIIMMIITTEEDD

ARL

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STRATEGICALLY LOCATED ONLY REFINERY IN THE NORTHSTRATEGICALLY LOCATED ONLY REFINERY IN THE NORTH

PlannedPlanned

ExistingExistingCoastalCoastal

IndusIndus

BosicorBosicor

NRLNRL

PRLPRL

ARLARL

ParcoParco

New New Bosicor Bosicor

AATTTTOOCCKK

RREEFFIINNEERRYY

LLIIMMIITTEEDD

ARL

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Energy Scenario

The industrial sector in Pakistan alone accounts for about 39.8% of the commercial energy. It uses both, the thermal and electrical energy in various equipments like boilers, compressors, furnaces, diesel generating engines, motors, pumps, refrigeration etc.

Energy Scenario

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Energy Consumption by Sector

2008-09 (Total: 37.3 Million TOE)

Commercial, 3.90%

Domestic, 21.70%

Other Govt., 2.10%

Transport, 30.50%

Agriculture, 2.10%

Industrial, 39.80%

Energy Scenario

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• TOTAL SYSTEMS APPROACH

• SELECTION OF EQUIPMENTS

• EMPLOYEE INVOLVEMENT

• INTER UNIT VISITS

• OPTIMAL CAPACITY UTILISATION

• UPGRADATION OF TECHNOLOGY

• ENERGY AUDIT

• REGULAR MONITORING OF IMPLEMENTED PROJECTS

Energy Conservation Opportunities

Energy Conservation Opportunities

ARL Initiatives Towards Energy Efficiency and Conservation

IMPLIMENTING MANAGEMENT SYSTEMS MINIMIZING THE LOSSES IMPROVING THE EQUIPMENT EFFICIENCY IMPROVING THE OPERATIONAL

PHILOSOPHY

ARL Initiatives

Management Systems

ARL obtained certification of ISO-9001, ISO-14001, ISO-17025 and OHSAS-18000. Development and implementation of such system ensure adherence to optimum operational parameters which in turn results in optimum energy consumption.

Management Systems

Simulation and Softwares

Sophisticated Process Control system was installed at HCU, Reformer, HBU-I and HBU-II using the DCS technology. It provides mass and energy balance which ensures precise operation and better energy efficiency.

PIMS (Process Industry Modeling System) was implemented which plans and advises the optimum blend of crude for optimum production and energy consumption using Linear Programming for complex systems.

PINCH Technology at HCU preheat train

Management Systems

Awareness Among All Employees

Awareness about Energy Saving benefits were communicated to the staff as well as residents of area through the use of slogans, banners posters etc. This resulted in rise of awareness level in the public, and improved energy conservation.

Employees Awareness

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Energy Losses

60,000

32,000

100,000

48,000

9,000

27,000

1,000

21,000

41,000

61,000

81,000

101,000

Steam Traps (Faulty)

Heat losses in pipe (8")

Steamleakage (1/8"hole)

Pump seal leakage

Heat losses in valve (4")

Air leakage (1/8" hole)

AREA'S

RS / Y

r.

Employees Awareness

Steam Traps Monitoring

There were certain points on steam lines, where steam traps were not available. This resulted in a substantial loss of steam round the clock. Such drain points were identified and steam traps were installed.

A steam survey is carried out per month to identify areas of improvement and to identify and timely attend the faulty steam traps.

Steam saving from one steam trap = 0.5 Ton/day Total energy saving per trap = 39 MM

Btu/month After rectification and proper sizing of one steam trap net

saving is Rs 5,000 per month.

Minimizing Losses

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Why Save Steam Condensate ?

Condensate Wasted = Money & Energy Wasted

1. Fuel/Energy costs associated with the amount of steam used to preheat cold boiler make-up water.

2. Boiler water make up and sewage treatment cost.

3. Water chemical treatment cost.

Minimizing Losses

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Condensate Recovery & Steam Cost

200 psig steam pressure:Sensible heat 362 Btu/lb Wasted water 362 Btu/lb Latent heat 838 Btu/lb Replacement water 38 Btu/lb

Total heat 1200 Btu/lb Wasted heat 324 Btu/lb

Wasted heat / Total heat x 100 = % of Total heat wasted324 / 1200 = 27% of Total heat is wasted

Fuel energy cost is typically 80% of the cost of producing steam,

Therefore;0.27 x .8 x 100 = 21.6% of the total steam production cost.

Minimizing Losses

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Water & Treatment Value of Condensate

1. Water alone may represent up to 16% of steam production costs.

2. Water treatment costs can amount to 4% of steam production costs.

3. The addition of cooling water to the condensate may be required, greatly increasing water and sewage costs.

Minimizing Losses

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What is Total Cost Involved When Condensate is Wasted?

Using our earlier example, the total waste is a large percentage of the total steam production cost:

Wasted heat 21.6%Wasted water 16.0%Treatment 4.0%

Total waste 41.6%

Minimizing Losses

Insulation of Bare Surfaces

Atmospheric and Vacuum towers Insulation at Lummus plant

Insulation at products storage tanks Insulation at bare surface lines Insulation at Heat Exchangers

By installing thermal insulation at required points, heat losses reduced, utilities and money saved.

Minimizing Losses

Optimization of Steam Consumption

Fuel gas tracer steam optimization during summer was carried out.

The steam consumption is 7.0 tons/day that is not required during summer season. The saving per day in the form of energy is 555.0 Million Btu/Month and Rs. 70,000 per Month.

Minimizing Losses

Parallel Preheat Train

New parallel preheat train installed at HBU-I, better heat recovery is obtained at higher throughputs by keeping both the pre-heat trains in parallel service.

With this modification, one pre-heat train can be bypassed and cleaned by operating the plant only on single pre-heat train. Hence cleaner exchanger at all times ensure maximum heat recovery thus reducing fuel consumption at heater.

Plant downtime required for pre-heat train cleaning was therefore completely eliminated.

Improving Equipment Efficiency

Replacement of Exchangers

Lummus, atmospheric tower overhead exchanger LE-01 was replaced with a higher duty exchanger.

This resulted in a higher heater inlet temperature, thus reducing the fuel consumption substantially at the atmospheric heater.

Reduction of heater duty by 1 MMBTU/hr due to increase in heater inlet by 40 o F (~ Rs. 4.04 Million per annum, only fuel saving)


Variable Seed Motors

It was principally decided to purchase variable speed motor drivers for all fan condensers. This has been implemented and newly purchased motors at HBU-II are variable speed. The speed of fan is adjusted according to the temperature requirement, and thus energy is saved.


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Heaters Operation Optimization

Following has been implemented for energy efficiency:

1. Soot Blowers have been installed at heaters to avoid soot deposition. This results in improving the furnace efficiencies: greater fuel energy savings.

2. On-line oxygen analyzers on furnaces / boilers have been provided to control excess air. These instruments measure the oxygen content of flue gas continuously and adjust air to minimize heat losses.

3. Mass flow meters have been installed in various furnaces / heaters for monitoring individual furnace fuel consumption.


Domestic Fuel Gas Savings

The exhaust of installed gas water heaters (geysers) was modified by installing baffles to increase the residence time of flue gases, thus ensuring maximum heat exchange. This has been experimentally applied on some installations, and will be installed in all the water heaters later. Gas consumed by Ordinary Geyser = 0.20 Hm3

Gas consumed by Geyser (with baffle) = 0.17 Hm3

Difference = 0.03 Hm3

% age saving in Hm3 ~ 15 % Saving For 3 Days ~ Rs. 45 Saving For 1 Month ~ Rs. 450 (For one unit)


Electrical Energy Savings

All the gate-lights (incandescent bulbs) of colony were replaced by Energy Savers (compact fluorescent light bulbs). This reduced the electricity consumption at gates up to ~ 80%.

Electricity Cost (incandescent bulbs) = Rs. 42,120/month

Electricity Cost with CFL = Rs. 7,581/month

Saving = Rs. 34,540/month


Anti Solar Roofs

Anti Solar roofs were installed on a few roofs for trial purpose. The results showed marked reduction in energy consumption. The details are given below:

COST/BENEFIT ANALYSIS

Daily heat gain without anti solar system = 81 kWh/day

Daily heat gain with anti solar system = 36 kWh/day

Difference = 45 kWh/day

Electrical energy required to remove this heat = 22.5 kWh

Total saving for summer season = Rs. 9, 450

(@ Rs. 3.5/kwh and assuming 4 months of cooling season)


New Heater Installation

A new heater was installed at HBU-II (Crude Unit). The purpose was to operate at higher throughput. This ultimately resulted in better heat recovery through products elevated flow rates. Hence heater inlet temperature improved, and fuel requirement decreased, saving energy.

Operational Philosophy

Diversion of Vacuum Unit Cuts

Lummus, a modification was done to divert Vacuum unit's Cut I, II, III & IV to the inlet of atmospheric section pre-heat train’s exchanger LE-08 (Crude/HSD). This resulted in higher heater inlet temperature and hence lower fuel consumption

Reduction of heater duty by 0.5 MMBTU/hr due to increase in heater inlet by 20o F (~ Rs. 2 million per annum, only fuel saving)

Operational Philosophy

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Energy Conservation At ARLEnergy Conservation At ARL

ARL has prominent energy conservation achievement i.e. 33.0% reduction of total energy consumption within five years

Overall Energy Consumption Reduction (0.20 to 0.145 MMBTU/BBL)

Reduction in Steam Consumption(25 to 10 KG/BBL)

ARL Case Study

ARL Future Plans

Waste heat recovery from boilers flue gasses Condensate recovery at HCU Packinox Exchanger at Reformer Energy recovery from power plant flue gases Installation of Air pre heaters at heaters Flare gases recovery False Ceiling Anti Solar roofs

CDM Potential in Petroleum Refineries

Major areas for energy efficiency improvement are utilities (30%), fired heaters (20%), process optimization (15%), heat exchangers (15%), motor and motor applications (10%), and other areas (10%)

Recycling of all wastes

Waste Heat Recovery and using the recovered heat for heating oil

Crude Preheat Train optimization through modification of heat exchangers network

CDM Potential in Petroleum Refineries

Gas flaring reduction which is the main source of GHG emissions from oil and gas industry

Reducing heat loss into atmosphere along with the flue gases by utilizing it for preheating combustion air of heaters/boilers

Steam generation through waste heat recovery from processes, cogeneration, and boilers

Installation of CO2 recovery plant and utilize for urea production

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Are There any Hidden Costs?

Absolutely!

OUR ENVIRONMENT

Rs. 1.0 Billion per day

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Resources are limited, Let us conserve them.