PRE-FEASIBILTY REPORT

ON

indJet

PROJECT

AT

BARAUNI RFINERY

INDIAN OIL CORPORATION LIMITED

BARAUNI REFINERY

Index

S. No Topic No Page no

1 Chapter 1 Page 3-5

Introduction 1.0 Page 3

Need for new ATF unit 1.1 Page 3

Premises for the study 1.2 Page 3-4

2 Chapter 2 Page 6-8

Selection of technology 2.1 Page 7

Description of Technology 2.2 Page 7

PCK Option 2.3 Page 7-8

3 Chapter 3 Page 9-11

Storage facility 3.1 10

Dispatch Facility 3.2 10

Infrastructure Facilities 3.3 11

4 Chapter 4 12-13

Capital Investment 4.1 13

5 Chapter 5 14-15

Financial analysis 5.1 15

6 Chapter 6 16-17

Environment aspects 6.1 17

CHAPTER 1

CHAPTER 1

1.0 Introduction

Barauni Refinery was commissioned in 1964 with an initial capacity of 2.0 MMTPA and

through various revamps the crude processing capacity has been augmented to 6.0

MMTPA in 2002. To enhance the productivity & profitability, refinery expansion project

consisting of RFCCU, DHDT, SRU I/II, ARU, SWSU and HGU along with associated utilities

and offsites facilities were commissioned in 2002.

Presently refinery produces LPG, Naphtha, MS, SKO, HSD, FO, RPC, Bitumen, CBFS and

Sulphur by processing crude oils. No ATF is being produced on sustained basis at Barauni

refinery due to lack of proper processing infrastructure.

1.1 Need for new ATF unit:

Due to rapid growth of demand in India and requirements of Nepal Oil Corporations, as

indicated at the different forums, there is requirement to produce ATF on sustained basis

from Barauni Refinery.

Further, considering the long term view of SKO demand, it is required to utilize potential

of converting SKO to ATF as SKO demand may likely to go down with the growth of the

region. To meet the future demands of ATF for the region, the new ATF unit at BR is

envisaged.

Considering the futuristic demand scenario for the nearby places at Raxaul, Patna,

Ranchi and Gaya, ATF requirement for nearby region is expected to be ~ 235 TMT per

annum by year 2021-22. Thus the capacity for the new ATF facility at BR is taken as 250

TMT per annum.

1.2 Premises for the study

The Refinery is currently in the process of implementing the BS-IV project and hence

Refinery operation Post BS- IV operating case with proposed revamp in DHDT (3.3

MMTPA), NSU (0.8 MMTPA), CRU (0.5 MMTPA) & in Prime G+ is considered.

SKO demand is considered same as the current demand (65-70 TMTPM) and Gap in SKO

pool, if any will be made up by unloading of SKO from other refineries by product

sharing as & when required.

ATF facilities will be developed to take feed from all three AVUs and loss in SKO make up

(at current capacity of 6.3 MMTPA) will be supplemented by either by increase in crude

th’put or product sharing. Feed for the unit will be derived from both HS & LS crude

processing from AVUs. Unit operation considered for 8000 hrs of operations/yr.

CHAPTER 2

CHAPTER 2

2.1 Selection of Technology:

A new ATF unit is required to process straight run AVU I/II/III SKO to manufacture ATF.

There are many commercial technologies available in the open market for the purpose

viz. UOP Merox, DuPont Isotherming, etc. IOCL R&D has also recently developed in-

house technology for making ATF by hydrotreatment where M/S EIL is also partner.

Thus the new unit based on the in-house technology (IOCL R&D) is considered in line

with the Govt of India “Make in India” policy and it is decided not to evaluate other

available technologies.

2.2 Description of Technology:

The technology is in-house & developed by IOCL R&D in partnership with M/S EIL and BR

will be the first demonstration unit for the use of this technology.

This low temperature & low pressure hytrotreatment process which selectively removes

mercaptans from ATF while minimizing removal of other sulfur compounds. The process

uses IndianOil R&D developed hydrotreating catalyst.

ATF feed is mixed with Hydrogen and is heated to a reaction temperature through a

network of heat exchangers before entering the fixed bed downflow reactor in presence

of hydrotreating catalyst. The reactor effluent is then fed to the stripper. Process is low

severity operation which selectivity removes mercaptans to <10 ppm with H2

consumption of 300-700 ppm. The product ATF passes through sand filter and salt dryer

before sending to storage.

2.3 PCK producing option:

Post BS- IV/V projects scenario, there is requirement of using Pipeline compatible

kerosene (PCK) of ~ 70 TMT per annum for using as plug between different product

batches since the use of normal SK will lead to contamination of product due to its high

sulphur content. Refinery has no other facility to produce low sulphur kero and will

require to utilize DHDT unit to produce PCK. It is envisaged that the DHDT unit will be

operated in PCK mode once in a month and PCK will required to be stored sufficient for

a month in the dedicated tanks.

Post BS IV case scenario, DHDT unit capacity is already stretched and no enough margins

are available in the unit to process this additional feed for PCK production. Thus an

option is explored to design the ATF unit for production of PCK as well from the same

unit in batch operations. This will reduce the operating cost for the PCK production, save

the throughput loss of DHDT and unit disturbance during PCK production.

Prima facie it is observed that the new ATF unit is low pressure unit and can be

converted to produce PCK as well but this will call for the modification mainly in capacity

of the unit to accommodate additional feed, pressure condition of the unit, require

additional H2 compressor due to higher pressure requirements and in turn unit design

modified for PCK production as well. Unit operation is considered for 5000 hrs in ATF

mode and 3000 hrs of operation considered in PCK mode. The unit will be operated in

different batches for the production of PCK and ATF.

CHAPTER 3

CHAPTER 3

OSBL Facility

3.1 Storage facilities

Tankage requirement for ATF:

Refinery consists of two dedicated ATF product tanks of 5000 m3 gross capacity with

dispatch pumping facility to Barauni Marketing terminal (BMT) connected with the

existing trial ATF facility in AVU- II. Considering one tank for ATF feed in, one tank in

certification/ dispatch and one tank in M&I, it is a requirement to have minimum three

tanks of ATF. More-over considering the restriction in movement of ATF for unforeseen

circumstances & inventory requirements, it is considered to build a new product tank of

10,000 m3 capacity. For feeding of the unit there is no tank available and thus one tank

of 5000 m3 capacity is considered for managing the feed.

In addition to this feed, product pipeline headers & feed & product pumps are

envisaged for the new ATF unit in the offsites.

Tankage requirement for PCK: Refinery does not have any tankage for the PCK and

since product will be produced in the batches and thus storage of the PCK will be

essential for smooth operation and meeting the pipeline transfer requirement during

operation of unit in ATF mode. Feed for the unit will be taken from the existing tanks/

units directly thus no feed tanks will be required, however there will be requirement of

storage facility for the PCK product of 10,000 m3 so that during the ATF mode of

operation, PCK can be supplied for the pipelines transfer. Considering this, two tanks of

5000 m3 are also considered for the PCK storage.

3.2 Dispatch facilities:

Presently ATF dispatch facility of 8 TMTPM capacity is available for BMT (TTL). No

augmentation is being considered there due to limited requirement of TTL dispatch,

however apart from existing facility at BMT, bulk dispatch of ATF ex-BR will be through

TWL and via PLT.

For dispatch of product, a dedicated ATF product pumping facility with dedicated

header up to pipelines and gantry will require to be laid. In addition existing gantry will

require to be modified for the loading of the ATF. Since ATF is very stringent product in

relation to the product specification and contamination cannot be allowed even to a

limited extent, thus dedicated facility required to be developed in gantry. This calls for

installation of dedicated header, mass flow meters, ROVs, loading arms, batch

controllers etc.

Considering the heavy load and space constraints in the white oil gantry it is considered

to modify the existing un-loading gantry for the ATF loading purpose also.

3.3 Infrastructure Facilities

i) Land :

For the new ATF unit, area requirement is of 84 x 47 meter. Area identified for

the new ATF unit opposite to AVU I area inside the refinery premises.

ii) Township:

A self-contained township exists as part of the existing refinery and will be

sufficient to cater the requirement of new project.

CHAPTER 4

CHAPTER 4

CAPITAL INVESTMENT COST

Project cost:

The cost estimate has been based on in-house data and Licenser’s input. The estimate is

expected to be within ±30% and considered as Rs 144.33 Crores.

The cost estimates shall be finalized to better accuracy levels on preparation of DFR and

Process Licensor inputs prior to investment approval for the Project.

CHAPTER 5

CHAPTER 5

FINANCIAL ANALYSIS

5.1 Economics

Project is of strategic importance for meeting the market demand and future

requirements of the region. Hence financial analysis has not been carried out.

CHAPTER 6

CHAPTER 6

Environmental aspects

With this IndJet project Barauni Refinery, will be able to produce 250 KTA ATF

and 75 KTA PCK. To minimize the SO2 emissions from the project, only fuel

gas/Natural gas firing is considered; hence the facility will lead to negligible

addition of SO2 emissions (0.04 kg/hr).

Detailed environmental aspects will be covered in the rapid EIA report.

Environmental Clearance shall be obtained from MoE&F for proposed expansion

project.

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