Platts 4th Annual Asian Refining

Summit 9th March 2017

Sudhakara Rao R

Retd Executive Director-HPCL

Index

• Indian Refining Scene

• Naphtha Supply Demand • India

• Asia Pacific

Indian Refining

2016: Indian Refineries and Capacity

Refineries No. MMTPA

IOC Group 11 74.7

BPC group 4 30.5

HPC Group 3 23.8

ONGC/MRPL 2 15.0

Reliance 2 60.0

Essar 1 20.0

Total 22 224.0

Refineries in India • (000 BARRLES PER DAY)

• North India Eastern India

•

• IOC MATHURA 160 IOC GUWAHATI 20

• IOC PANIPAT 300 IOC BARAUNI 120

• HMEL BHATINDA 180 IOC HALDIA 150

• BORL BINA 120 IOC DIGBOI 13

• BPCL NRL 60

• IOC BONGAIGON 47

• IOC PARADEEP 300

• Western India Sothern India

• BPCL MUMBAI 240 CPCL CHENNAI 210

• IOC KOYALI 275 CPCL NARIMANAM 20

• RIL JAMNAGAR 660 HPCL VISAKH 166

• RIL EXPORT UNIT 540 MRPL MANGALORE 400

• ESSAR JAMNAGAR 400 BPCL KOCHI 190

HIGHER COMPLEXITY REFINERIES

Refinery Upgradation

Currently, 15 Delayed Coking Units (DCUs) operating, 3 under implementation

4 Major existing refineries do not have residue upgradation

(IOCL-Mathura, HPCL-Vizag & Mumbai, BPCL-Mumbai)

Cumulative refinery capacity yet to implement residue up-gradation ~35

MMTPA

Complexity Factor : Observations

Complexity Factor

Indian Public Sector IOC/BPC/HPC refineries lower in capacity and lower complexity

Average complexity factor 6 (excluding IOC Koyali, Panipat)

Private Sector /Joint Sector High Complexity Refineries

Reliance,Essar,HMEL,BORL etc

Average Complexity Factor 12

Demand projections to 2021-22

Source : XII Year Plan - P&NG

REFINING CAPACITY EXPANSION

New Capacity increase on cards (2017)

Short term

BPCL Kochi expansion ( 6 mmt)

IOC Paradeep Commissioned in 2016( 9 mmt)

Long term (2017-2020) HPCL Visakh Refinery expansion plan

New Petroleum and Petrochem park in Southern State of Andhra Pradesh

Steps by Indian Refiners for Value addition

Hydro skimming Refinery

Secondary Processing

Complex Refinery

Residue Up-gradation

Petrochemicals Integration

Integrated Refinery-Cum-Petrochemical

Complex

NEW TECHNOLOGIES

Public Sector IOC/BPC/HPC/MRPL implementing Bottom upgradation facilities/flexibility to process high API/High acid crudes

MRPL : Delayed Coker Commissioned

BPC-Kochi: Delayed Coker Construction is in progress. Expected commissioning: 2017

CPCL: Delayed Coker in progress(2017)

HPCL – Vizag: Slurry Hydrocracker being planned

IOC – Paradeep: Commissioned 2016(with Delayed Coker)

•Major Revamps In Progress For Bottom Upgradation

Naphtha

• Refined Light Petroleum Distillate

• Boiling point below 250° C

• 0-100°C “light virgin naphtha”

• 100-200°C “heavy virgin naphtha”

• 160-200° C “heavy FCCU Naphtha”

• In Addition to crude processing also produced thru Gas Condensate

Naphtha

• Constituents of Naphtha • Paraffins

• Naphthenes

• Aromatics

• Olefins

• Production processes • Crude fractionation/straight run/cracking

• Reforming/solvent extraction/hydrogeneration

• Polymerisation of olefins/alkylation

Naphtha in Refining and end use

• Used in Converting to Gasoline

• Directly used for Power Generation

• Direct Use • Rubber Solvent, Lacquer Solvent, Varnish

solvent, cleaner

• Most Common use • Produce Aromatic compounds such as

Benzene, Toluene, xylenes • By far basic raw material for most of the

petrochemicals

Naphtha Balance Asia (kbd)

2017 2018 2019 2020 2021

3,048.8 3,052.8 3,083.6 3,127.5 3,195.9

37.0 39.0 39.5 40.0 40.5

1,985.1 2,041.9 2,045.3 2,058.6 2,058.6

392.0 341.4 316.7 308.1 303.0

4,678.9 4,792.3 4,851.7 4,918.1 4,991.9

Naphtha Refinery Output

Non-Ref Output

Imports

Exports

Demand

Asia continues to have Net Deficit of Naphtha

Naphtha Net Exports 2016

Australia 4

China 1

India 175

Indonesia -

Japan -

Malaysia 33

Pakistan 19

Philippines 4

Singapore 31

S. Korea 125

Taiwan 0

Thailand 21

Vietnam -

Other 5

TOTAL 420

Unit KBD

Naphtha Net Imports 2016 (kbd)

Australia -

China 181

India 60

Indonesia 43

Japan 446

Malaysia 24

Pakistan -

Philippines 16

Singapore 208

S. Korea 612

Taiwan 299

Thailand 28

Vietnam -

Other 8

TOTAL 1,926

Major Players in Naphtha 2016

Imports Exports

China 186 1

Japan 446 0

S Korea 612 125

Taiwan 299 0

Major Players in Naphtha 2017 (Estimates)

Imports Exports

China 199 3

Japan 451 0

S Korea 649 113

Taiwan 272 0

Unit KBD

Major Players in Naphtha 2020 (Estimates)

Imports Exports

China 218 2

Japan 430 0

S Korea 702 43

Taiwan 248 0

India Import /Export of Naphtha (kbd)

2016 2017 2018 2019 2020

Import Export Import Export Import Export Import Export Import Export

60 175 50 162 40 140 36 131 35 127

Conclusions

• Naphtha will continue to be main feed stock for Petro-chemicals

• Asia Demand for Petrochemicals would grow

• Asia would continue to be short of Naphtha

• Higher demand for Gasoline may dent Naphtha availability

• India Likely to be self sufficient in Naphtha with customers expecting narrow range cuts

R S Rao rsrao88@gmail.com