REFINING IN INDIA TODAY AND TOMORROW The Petroleum Refining Industry in India has been traditionally guided by the

e need to maximize middle distillates having comparatively relaxed product specifications. As long as an administered Pricing Mechanism was in place the industry was insulated from fluctuations in the international mar!et and the need to meet stringent product specifications. "ith the phasing out of APM and the introduction of stringent product #uality re#uirements there has been a #uantum change in terms of the application of technologies to improve product #uality and ensure compliance with environmental stipulations. These re#uirements have to be met without any ma$or premium for product #uality and for the refineries to stay competitive a number of factors have to be accounted for. These include% Optimization of Crude Mix Refineries will be increasingly dependent on imported crudes and will therefore have to carefully plan the selection of crude from the available bas!et so as to maximize their profitability. A grass roots refinery can be configured to process heavy and sour crudes that are available at lower prices and still generate a product mix that will ensure good refining margins. In the case of existing refineries the possibility of replacing at least part of the crude with heavy crude so as to improve refining margins will need to be studied. &uch studies would re#uire the existing configuration to be examined and followed by the identification of add on facilities to achieve the desired product pattern and #uality. 'n a micro level ade#uacy chec!s of hardware in existing units need tobe carried out for handling a changed feed. Thus a combination of (P mdoelling process simulation and hardware ade#uacy is re#uired. Produ t !ua"it# Improved product #uality will drive the choice of technology for new refineries as well as for existing refineries to upgrade existing product #uality. The issues that specifically need to be addressed include% &pecifications of Motor &pirit as per )harat II*)harat III norms &pecifications of +iesel as per )harat II*)harat III norms Prodcution of (')& conforming to API ,rade II*III Residue upgrading and production of low sulphur feed oil -tilization of refinery residue for power generation in an environment friendly manner

.ydroprocessing provides the answer to most of these issues. It is #uite apparent that technologies which can tac!le contaminants li!e /itrogen &ulphur metals and also achieve changes in the molecular structure of feeds derived from crude eg Isomerization Aromatics &aturation .ydrocrac!ing will be in the forefront of refining operations.The application of these processes will be accompanied by the need to optimize .ydrogen production*management and to ensure that valuable intermediate streams are not diverted

for .ydrogen production. ,asification and partial oxidation of residues will therefore assume greater significance. 0nvironment related issues li!e recovery of &ulphur 1lue gas +esulphurization disposal of spent catalysts and compliance with emission norms are some of the accompanying challenges. These issues also offer a challenging opportunity to Indian Refiners*0ngineering companies*R2+ organizations and academics to wor! together and develop indigenous !now3how in the areas of catalysts reactor design and preparation of basic engineering pac!ages for a number of .ydro processing applications. &uccessful collaboration in these areas will reduce dependence on imported technology and help to carry out troubleshooting as well as revamps of existing units based on indigenous !now3how. Optimization of Produ t $"ate There has to be a move from the traditional option of middle distillate maximization to arrive product patterns which enhance refinery profitability. Refineries are already indicating a need to maximize (P, and ,asoline rather than +iesel to add value to their product slate. Accordingly studies have been initiated in a number of cases to revamp 1luidized 4atalytic 4rac!ing -nits to operate at higher severity while using more active catalyst to maximize the production of olefins*(P, and ,asoline. This is a short term measure to increase profitability. In the long term there is a need to examine options of integrating petrochemical plants with refineries ma!ing speciality products 5solvents )enzene Toluene 1ood ,rade .exane "ax 4arbon )lac! 1eedstoc! etc6. .

IN$TA%%ED & PROPO$ED REFINING CAPACITY %o ation P$, IOC% +igboi ,uwahati )arauni 7oyali .aldia Mathura Panipat Paradip /PC% Mumbai Bisa!h Pun$ab Mangalore 0PC% Mumbai
)ina

REFINERY CAPACITY' MMTPA E(I$TING ADDITIONA% PROPO$ED TI%% )**+ -. PRI.ATE P$, -. PRI.ATE

8.9: ;.8 <.= ;=.: >.?: @.8 9.8 :.: ?.:

;.@

9.8 A.8

A.8 A.9 ?.: 9.8 9.: 8.: 9.: =.>: 9.8

CPC% Manali
/arimanam

1R% 7ochi 0RP% )ongaigaon NR%

/uimaligarh

>.8 =?.8 ;8.: 9.8

RP%
Camnagar

EO%
Camnagar

Na2ar3una
4uddalore

Tota"

?<.9: A.9 =?.8 >?.@ ;9.9D In addition other Private &ector refineries that have been considered in the report of the sub group on refining for the /inth 1ive Eear Plan include the following % /ippon +enro A.8 MMTPA &oros 9.8 MMTPA Asho! (eyland =.8 MMTPA