Integrated Refinery Expansion Project

In view of the tremendous demand growth for petroleum products especially for the auto fuels in the country, Kochi Refinery is contemplating an integrated expansion of it’s refining capacity. A review of the demand potential for various petroleum products in the region indicates the need for further capacity addition in order to meet the demands beyond the year 2015. Sensing the sharp rise in demand for petroleum products other refineries in India are expanding or planning to expand the capacity. Kochi Refinery is envisaging a 6 MMTPA capacity addition with the effective utilization of available infrastructure like the SPM and Shore Tank Farm. Kochi Refinery would then be able to cater with ease to the Southern part of India.

The declining market for heavy fuel oils high in sulphur content and reduced availability coupled with increased prices of light/ low sulphur crudes, has made it imperative for refineries to set up suitable residue upgradation facility to maintain profitability. Recent capacity addition of the refinery has resulted in generation of additional quantities of residual fuels. The proposed Integrated Refinery Expansion project will be looking into the viability of suitable bottoms upgradation facilities which will minimize residual fuel generation and maximize distillates

Euro-IV quality auto fuels are already mandated in major cities in India and many of refineries have set up/ are setting up facilities for meeting Euro-IV quality fuels. Kochi Refinery is all set to produce Euro-III and partly Euro-IV quality fuels on completion of the ongoing refinery modernization. Facilities for production of auto fuels conforming fully to Euro-IV or higher norms are also being envisaged as part of the proposed capacity expansion project of the refinery. This will be required to meet the future quality standards in India and will enable the refinery to market its products anywhere in India including the major cities and also to export the products.

Thus the proposed Integrated Refinery Expansion Project , will integrate Capacity addition with Bottoms Upgradation and Auto Fuel quality improvement.

Additional Tankage at SPM.

Each tank at the Shore Tank Farm of the SPM facility in Puthuvypeen, Kochi is of 80,000 Kilolitre capacity. Four tanks are presently in place and there is space available for two more. Additional tanks are being proposed at the STF to cater to the needs of the proposed Integrated Refinery Expansion Project . This will also provide flexibility in operation especially while taking out tanks for periodical statutory inspections.

Petrochemicals

Kochi Refinery is presently producing petrochemical feed stocks such as Benzene, Toluene and Propylene in addition to the various petroleum products and specialty products. Increased quantities of Naphtha will be produced in the refinery after the proposed capacity expansion. Declining demand for Naphtha as product due to replacement by consumers with increasingly available Natural Gas/ LNG has made to think of alternative options for utilizing Naphtha. Integration of the refinery with a petrochemicals complex utilizing Naphtha and other feedstocks from the refinery is being looked into.

Power Generation

Power generation from byproducts from residue upgradation facility such as Coke or Pitch is another option being evaluated for value addition. The project will enable to generate power at lower costs than the current cost of fuel oil/ gas turbine based power generation. Excess power after meeting the internal demand would be exported.