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without permission in writing from Hydrocarbon Education Research & Society.
Contents
Block-I
Unit 1
Unit 2
Unit 3
The Macro-system......................................................................................................... 29
Unit 4
Unit 5
Unit 6
Unit 7
Production Methods...................................................................................................... 77
Unit 8
Unit 9
Unit 10
Unit 11
Unit 12
Unit 13
Unit 14
Unit 15
Unit 16
Unit 17
Unit 18
Unit 19
Unit 20
iv
Block-V
Unit 21
Unit 22
Unit 23
Unit 24
Unit 25
1
Notes
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___________________
___________________
___________________
BLOCK-I
Detailed Contents
Notes
UNIT
1: BASIC CONCEPTS
___________________
z
Introduction
___________________
z
What is Petroleum
___________________
z
Reservoir, Well and Well Fluid
___________________
z
Crude Oil and Natural Gas
___________________
z
Units Specifically Used in Oil and Gas Industry
___________________
UNIT 2: CRUDE OIL AND NATURAL GAS
___________________
CONCEPTS
___________________
z
Introduction
z
___________________
Various Forms of Natural Gas
___________________
Elementary Concepts on Hydrocarbons
Introduction
Introduction
Unit 1
Basic Concepts
Objectives
After completion of this unit, the students will be aware of the following
topics:
3
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Introduction
Oil industry is perhaps the most exciting industry in the history of
civilization. Although the history of oil traces back to seepages of
oil as early as 3000 B.C., the real thrill of it started with the oil
boom in the USA. When Rockefeller was asked to tell very briefly
how people get rich, he replied Some people find oil, some dont.
Its amazing how much oil and gas has penetrated into our lives
today. The toothbrush we use to start the day, the suit we wear,
the fuel we use in our cars to drive to office, the car interiors, back
home with cozy furniture, tapestry, and mattress of the bed we
sleep on all are petrochemicals i.e. chemicals from petroleum.
Oil business has been responsible for prosperity, war, intrigues
and adventure.
Search of oil and gas leads us to some of the most exotic forests,
deserts, and ocean. Perhaps some of the most beautiful man made
sights in the world are offshore platform in Deep Ocean, array of
offshore rigs in a remote desert or jungle or an illuminated
petrochemical complex at night.
Let us understand the importance of oil and gas industry by
looking at its share in the energy supply to the world. More than
60% of the energy needed in the world is provided by oil and gas.
And it is not really as expensive as it sounds.
___________________
4
Notes
Activity
Discuss
in groups if oil and
___________________
gas will truly start depleting in
___________________
another
20 to 30 years.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
What is Petroleum?
Petroleum is a word derived from the Latin words Petra (rock) and
Oleum (oil). It essentially comprises of naturally occurring
hydrocarbons i.e. compounds made of carbon and hydrogen atoms.
These hydrocarbons are trapped below the surface of the earth, in
porous rocks, in the form of oil and gas.
From where did the hydrocarbons come? There are various
theories. The most accepted theory is the organic theory.
Hydrocarbons came from remains of the bodies of pre-historic land
based animals, marine organisms (plankton) and vegetation, which
were washed away and buried below the earth during upheavals
on the earths surface millions of years ago.
In the course of time the buried organic matters decomposed and
the carbon and hydrogen present in these reacted under heat and
pressure to form various compounds, generally hydrocarbons.
The hydrocarbons got trapped in the porous rocks and were
covered by hard sedimentary rocks that formed over it. They acted
as cap or seal to prevent hydrocarbons from escaping.
As explained later, carbon and hydrogen atoms can join together to
form molecules of various sizes and structures. Hydrocarbons could
be a small molecule with combination of one or a few carbon atoms
with hydrogen (e.g. Methane - CH4, Ethane - C2H6). Or it could be
very large molecule by combination of dozens of carbon and
hydrogen atoms (e.g. Wax - C20H42) or even thousands of carbon and
hydrogen atoms (e.g. Polythene).
Petroleum is essentially composed of hydrocarbons with some
other impurities. The words petroleum, oil and gas and
hydrocarbon are all used synonymously in the oil and gas
industry.
Hydrocarbons in petroleum could be in gaseous, liquid or solid
form depending on the type and size of hydrocarbon molecule:
z
Name
Formula
Phase
Methane
CH4
Gas
Hexane
C6 H14
Liquid
Octane
C8 H18
Liquid
Wax
C20 H42
Solid
5
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
6
Notes
Activity
Construct
a model of the
___________________
formation of a Reservoir.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
It must be noted that the reservoir in an oil field is not like a pool
of liquid or a container filled with gas. It is oil or gas trapped in
pores of porous sedimentary rocks, covered by impervious cap rock.
To produce oil from the reservoir, wells are drilled through the
surface of the earth. A well is then perforated at right location
from where the oil or gas enters the well pipe and rushes out
because of high pressure.
7
Activity
Notes
State all the components of
___________________
Crude
oil.
___________________
___________________
The fluid that comes out of the well in an oilfield or gas field is
___________________
___________________
Well fluid is a mixture of crude oil, natural gas and saline water
___________________
along with small amounts of sand and sludge. The water is called
___________________
___________________
___________________
get the final products would have been easy and at low cost. But a
___________________
Proportion of oil, water and gas may vary widely from one field
to other. It changes substantially with time during production.
8
Notes
Activity
Find
out using the Internet
___________________
how many barrels of oil India
___________________
imports
in a year.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
American origin, the American units are more often used in the
Notes
industry rather than Metric Units. Here are some important units
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
10
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
Petroleum is a saying determined from the Latin statements Petra
(rock) and Oleum (oil). It basically includes commonly happening
hydrocarbons i.e. fuses made of carbon and hydrogen particles. The
aforementioned hydrocarbons are trapped beneath the surface of
the earth, in permeable shakes, in the manifestation of oil and gas.
Carbon and hydrogen molecules can join together to shape
particles of different sizes and structures. Hydrocarbons could be a
modest atom with consolidation of one or a couple of carbon
particles with hydrogen (e.g. Methane CH4 , Ethane -C2H6). On the
other hand it could be extremely huge atom by fusion of portions of
carbon and hydrogen iotas (e.g. Wax - C20H42) or even many carbon
and hydrogen particles (e.g. Polythene).
Petroleum is basically made out of hydrocarbons with some
different pollution. The statements 'petroleum', 'oil and gas' and
'hydrocarbon' are all utilized synonymously as a part of the oil and
gas industry.
Keywords
Aromatics: They are compounds having a ring of six carbon atoms
with alternating double and single bonds and six hydrogen atoms.
Crude Oil: It is predominantly made of hydrocarbons. It is
composed of three main hydrocarbon groups: Paraffins,
Naphthenes, and Aromatics.
Well Fluid: It a mixture of crude oil, natural gas and saline water
along with small amounts of sand and sludge.
Petroleum: It essentially comprises of naturally occurring
hydrocarbons i.e. compounds made of carbon and hydrogen atoms.
2.
3.
4.
What are the units most commonly used in the Oil and Gas
industry?
11
Notes
___________________
___________________
___________________
___________________
___________________
Further Readings
___________________
___________________
Books
Vollhardt, K.P.C. & Shore, N., Organic Chemistry (5th Edition),
New York: W.H. Freeman, (190-192), 2007.
Shore, N., Study Guide and Solutions Manual for Organic
Chemistry (5th Edition), New York: W.H. Freeman, (70-80), 2007
Web Readings
www.need.org/needpdf/infobook_activities/ElemInfo/PetroE.pdf
www.hindustanpetroleum.com
___________________
___________________
___________________
12
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 2
Crude Oil and Natural Gas
Concepts
13
Notes
Activity
Find___________________
out what basis the colour
of Crude oil depends on, using
___________________
the Internet.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics:
___________________
Hydrocarbons
___________________
___________________
___________________
___________________
Introduction
Crude oil is a mixture of about 500 organic chemicals,
predominantly hydrocarbons (molecules made of carbon and
hydrogen). It is recovered from underground reservoirs, normally
1000 - 5000 meters down the earth.
Crude oil can be of wide variety and characteristics. It could be
very fluid, very viscous or semisolid. The colour could be black,
dark brown, amber or light brown. It is also called Petroleum.
Natural gas is a mixture of the lightest hydrocarbons like
methane, ethane, propane and butane. It also contains water to its
saturation limit. It may also contain hydrogen sulphide (H2S),
carbon dioxide (CO2), nitrogen (N2) and occasionally small amounts
of helium (He).
14
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
What is Hydrocarbon?
Hydrocarbons are compounds made of carbon and hydrogen. The
hydrocarbon molecules are formed by:
15
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
: GAS
C6H6 (BENZENE)
: LIQUID
C20H42 (WAX)
: SOLID
16
Notes
Activity
Conduct
further research on
___________________
Paraffins
and
make
a
___________________
presentation.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
17
Notes
___________________
___________________
___________________
Activity
___________________
What
is the boiling point of a
mixture of two liquids A and B
___________________
mixed 50-50, A and B having
a boiling
points of 70C and
___________________
80C respectively?
___________________
___________________
___________________
___________________
18
Notes
Example:
___________________
C1 = Methane
___________________
___________________
___________________
___________________
___________________
Methane
CH4
CH4
___________________
Ethane
C2H6
CH3 - CH3
___________________
Propane
C3H8
CH3CH2CH3
___________________
Butane
C4H10
___________________
C5H12
CH3 - CH - CH3
|
CH2
|
CH3
Thus one can have more and more isomers as the number of
carbon atoms in the chain increases.
19
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Isomers (isohexanes)
___________________
___________________
___________________
10 API
Arabian Crude
Venezuelan Crude
20
Notes
___________________
___________________
___________________
Paraffinic base
___________________
Asphaltic base
___________________
Intermediate base
___________________
Naphthenic base
___________________
___________________
___________________
___________________
Crude oils for which the residue after distillation contains paraffin
wax is called paraffinic. If the residue contains asphalt, it is called
asphaltic base and so on.
Refinery processing scheme and product yields depend on type of
crude in terms of chemical nature and gravity. It also indicates the
type of product it can yield.
As typical example:
Paraffinic base crude do not yield good bitumen (road tar) and
is not good for lubricating oil manufacture. But it is good for
diesel.
Light crude contains more of gasoline.
Medium crude is good for diesel production.
Heavy crude may give better bitumen.
Naphthenic crudes are good for lubricating oil.
Cut or Fraction
Crude Oil and its products are mixtures of several components.
Each component has a boiling point. It is interesting to examine
what would be the boiling point of mixture of several liquids.
Thus mixtures do not have a single boiling point; it has a boiling
range - from the initial boiling point to the final boiling point.
Liquid mixtures are identified with their boiling range. Crude oil
being a mixture, has a boiling range. Each product like gasoline or
kerosene is also a mixture and has a boiling range.
21
Notes
___________________
___________________
Product / Cut
Boiling Range
Carbon Number
Natural Gas
<20C
C1- C4
Gasoline
40 - 200C
C5 - C10
Kerosene
180 250C
C10 - C15
240 350C
C14 - C20
170 - 240C
C10 - C15
Lube Oil
350 - 450C
C20 - C30
Bitumen/Tar
450C+
C30 ++
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Petroleum Products
___________________
Crude oil (Oil) and natural gas (Gas) mixed along with water,
comes out of the well as well fluid. Crude oil and natural gas
together can be broadly referred as petroleum. Petroleum is just a
raw material. Let us see what products we get from oil and gas
that comes out from well head.
Calorific Value
(Kcal/Kg)
Price
US Dollars/Ton
6,500
80
Crude Oil
10,400
150
Fuel Oil
10,000
120
Motor Gasoline
11,000
180
Polythene
Not fuel
500
Polystyrene
Not fuel
550
The high calorific value of the petroleum products, its low cost in
the past and its suitability for use as relatively clean fuel created
incentive to consume as fuel. But in the current economic scenario,
valorization to higher value products has become integral part of
oil and gas industry.
22
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
23
___________________
This makes the oil and gas industry a real global industry.
___________________
Some important terms often used in oil and gas industry with
respect to the block diagram:
Offshore: Oil or gas field situated in the sea/ocean.
Onshore: Land based oil or gas field.
Methane (C1)
Composition
Volume %
50-96
Utilization
Fuel, Petrochemical
feedstock, power generation
Ethane (C2)
2-15
Petrochemical feedstock
Propane (C3)
1-12
Butane
0.5-3
Petrochemical feedstock,
LPG
Petrochemical feedstock,
LPG
(C4)
___________________
___________________
___________________
___________________
Component
Notes
0.1-1
0-15
0-30
Nitrogen
0-30
Water
Saturated
Undesirable component
Total
100
___________________
___________________
___________________
___________________
24
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Methane
rich
Sweet Gas
Associated
gas
(mildly
sour)
Sour
gas
Gas with
high
N2
Methane (C1)
94.5
76.5
71.5
62.5
Ethane (C2)
Propane (C3)
2.8
1.0
12.2
6.5
10.2
5.7
4.2
2.5
0.2
1.8
1.0
0.5
Butane (C4)
Heavies (C5+)
Hydrogen Sulfide
Carbon Dioxide
Nitrogen
Water
Total
Traces
Nil
1.5
Nil
Saturated
100.0
1.0
Nil
2.0
300 ppm
Saturated
100.0
0.5
3.5
7.6
Nil
Saturate
100.0
0.1
Nil
5.4
24.8
Saturated
100.0
25
Notes
Activity
What
is
the
chemical
___________________
composition
of
C7
___________________
Hydrocarbon?
___________________
___________________
___________________
Petrochemical Products/Petrochemicals
What are petrochemicals? Petrochemicals are usually plastic
products and chemicals that are derived from petroleum and
natural gas and are made on a large scale (approximately >10,000
tons per annum upwards). As indicated in the earlier sections,
certain components from gas processing plants and refinery are
used as feedstock for manufacture of petrochemicals (e.g. ethane,
propane, naphtha).
26
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
Raw petroleum might be of wide mixed bag and aspects. It could be
exceptionally liquid, extremely thick or semisolid. The colour could be
dark, dim tan, golden or light tan. It is additionally called Petroleum.
Regular gas is a mixture of the lightest hydrocarbons like
methane, ethane, propane and butane. It likewise holds water to
its immersion limit. It might additionally hold hydrogen sulphide
(H2S), carbon dioxide (CO2), nitrogen (N2) and at times minor
measures of helium (He).
Hydrocarbons are fuses made of carbon and hydrogen.
27
Notes
___________________
___________________
___________________
___________________
___________________
Keywords
Natural Gas Liquids (NGL): It is formed during production or
transportation of gas, when the heavy components such as pentane or
hexane, condense due to natural cooling and separate out as liquids.
Liquefied Petroleum Gas (LPG): It is the propane/butane
component of the natural gas is liquefied under moderate
pressures and is supplied as cooking gas fuel.
Liquefied Natural Gas (LNG): This is bulk of the natural gas in
liquefied form and is re-vaporized after receiving it at its
destination from tankers, to be used as natural gas.
Compressed Natural Gas (CNG): This is natural gas in highly
compressed form but not liquefied.
2.
3.
4.
What are the various products from Crude oil? State them.
Further Readings
Books
Vollhardt, K.P.C. & Shore, N., Organic Chemistry (5th Edition),
New York: W. H. Freeman, (190-192), 2007
Shore, N., Study Guide and Solutions Manual for Organic
Chemistry (5th Edition), New York: W.H. Freeman, (70-80), 2007
Web Readings
www.need.org/needpdf/infobook_activities/ElemInfo/PetroE.pdf
www.hindustanpetroleum.com
___________________
___________________
___________________
___________________
___________________
28
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 3
The Macro-system
Objectives
After completion of this unit, the students will be aware of the following
topics:
29
Notes
Activity
Make
a chart showing the
___________________
entire Petrochemical industry.
___________________
___________________
___________________
___________________
Oil and gas chain from oil well down to the petrochemical industry
___________________
___________________
Introduction
Use of petroleum dates back to 3000 BC. But it was sourced from
natural oil seepages that occurred on the earths surface. Asphalt
from natural oil seeps is known to have been used around 3000 BC
in Mesopotamia They used it for construction of roads. Egyptian
mummies were known to be wrapped in asphalt-soaked clothing.
Application of asphalt was also made for the construction of
pyramids.
The oil producing countries are divided into two groups those who
are members of Organization of Petroleum Exporting Countries
(OPEC) and those who are not.
In India, the oilfield in Digboi was discovered during the later part
of nineteenth century. Till 1970, oilfields in Assam and Gujarat
were the major producers. In the seventies, Mumbai High was
developed into a major producer.
___________________
___________________
___________________
30
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
31
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
32
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
33
Gas Processing
Notes
Refinery
___________________
Petrochemicals
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
34
Notes
___________________
___________________
___________________
___________________
The search for oil and gas today is much more complicated.
___________________
___________________
___________________
___________________
___________________
___________________
35
Notes
___________________
___________________
___________________
___________________
In India, the oilfield in Digboi was discovered during the later part
of nineteenth century. Till 1970, oilfields in Assam and Gujarat
were the major producers. In the seventies, Mumbai High was
developed into a major producer.
___________________
The Middle East came into the picture in the 1930s. In 1932, the
first crude oil discovery in Bahrain was made by Standard Oil. In
1936, Standard Oil of California joined with other American
majors to form Arabian American Oil Company (ARAMCO).
ARAMCO made a major oil discovery in Saudi Arabia in 1938.
___________________
North Sea oil field were discovered and developed during the late
sixties and seventies. During the eighties and nineties, some of the
Latin American countries (Mexico, Venezuela) made major oil field
discoveries and development. During the nineties, Asia Pacific
countries like China and Indonesia became major producers.
___________________
___________________
___________________
___________________
36
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
1.
2.
3.
4.
5.
6.
7.
8.
9.
37
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
38
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
39
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
In this unit, the total macro-system from oil well to petrochemicals
was explained in the form of block diagram. Flow of various
components of gas and oil in to the manufacturing blocks of
refinery and petrochemicals leading to final products was
highlighted.
Indications were given how at each step of processing the oil and
gas get valorized in to higher priced products.
Having explained the macro-system, a brief history of oil and gas
industry was presented. Major players in the world and specifically
in India were identified.
40
Notes
___________________
Prepare a project report on the history of oil and gas industry and
their composition worldwide.
___________________
___________________
Keywords
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Review Questions
1.
2.
3.
4.
Explain the Oil and Gas chain with the help of an illustration.
Further Readings
Books
March, J., Advanced Organic Chemistry: Wiley, 4th edition. 1992.
Walber, Richards & Haltiwangler, J. Am.Chem. Society. 1982
Web Readings
www.economywatch.com/world-industries/oil
www.oilmillmachinerysuppliers.com/history.html
www.history.com/topics/oil-industry
Unit 4
The Indian Perspective
Objectives
After completion of this unit, the students will be aware of the following
topics:
\
Introduction
Oil exploration and production industry in India dates back to the
late nineteenth century. The first commercial oilfield was struck at
Digboi in North-Eastern India in the year 1890. Till the 1970s,
petroleum production was mainly from oilfields in the NorthEastern region and Gujarat.
In this unit we will study about the Indian Oil and Gas scenario.
41
Notes
Activity
Starting
with Mumbai High
___________________
oilfield, trace in the form of a
___________________
block
diagram the following:
(a) ___________________
How oil and gas are
transported to shore.
___________________
(b) Where do the sub-sea oil
and
gas
pipelines
___________________
terminate.
___________________
(c) To which refineries the oil
is transported by pipeline.
___________________
(c) ___________________
What happens to the gas
after it reaches shore.
___________________
(e) How is the gas distributed.
(f) ___________________
What
are
the
Petrochemical Complexes
and fertilizer plants based
on Mumbai High Gas.
42
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Company
Other activities
Bombay
High,
South
Bassein, Heera and other Oil and Gas
western offshore Oilfields, Pipeline
KG basin, Assam, Gujarat,
Rajasthan
Contd
43
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
44
Assam, Rajasthan
Cauvery Basin
Essar Oil
Hindustan Oil
Exploration Co.
Niko Resources
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Downstream
refineries &
petrochemicals,
Pipeline
Petrochemicals
Cambay Basin
The domestic oil demand and supply are presented in Table 4.1. It
can be seen that we are grossly insufficient in our hydrocarbon
resources and dependant on imports of oil and gas.
___________________
Natural Gas
The demand of gas has been projected by various estimates
depending on assumed user pattern at figures between 150 to 200
million SCMD. Major consumption of Natural Gas in India will be
in the Power and Fertilizer sectors. Natural Gas consumption in
other industries, such as petrochemicals, town gas, or as
Compressed Natural Gas (CNG) in the automobile sector, is also
considered in the projections.
This leaves a wide gap in the supply demand balance for Natural
Gas in the country. The India Hydrocarbon Vision 2025 has
projected that the demand for Natural Gas will go up to about 230
million standard cubic meters per day by 2007, to more than 310
million standard cubic meters per day by 2011, finally reaching a
level of 390 million standard cubic meters per day by 2025. In the
45
Notes
___________________
indigenous resources.
___________________
___________________
___________________
___________________
Future Perspective
___________________
The per capita energy consumption in India is very low at the level
of 226 Kg of Oil Equivalent compared to 7759 Kg Oil Equivalent in
the USA. With a low base, the energy supply in India has been
growing @ 6% annually compared to an average of 1.5% worldwide.
It is projected that the growth rate of Indian economy may go up to
7-8% in the near future. This will further increase the energy
requirement for the future.
Obviously the future energy needs has to be planned keeping
hydrocarbon, coal, hydroelectric power, nuclear energy and
unconventional sources of energy into consideration. The
hydrocarbon resources are expected to be enhanced in the following
manners.
Increased search of hydrocarbon resources in India by the
policy of liberalization and leasing out prospective hydrocarbon
basins.
Prospecting for hydrocarbons overseas by Indian companies
(e.g. ONGC investing in Vietnam and other prospective
regions).
Import and distribution of LNG. Petronet, a public sector LNG
distribution company was set up for this activity.
Linking hydrocarbon resources from countries
Bangladesh, Iran by cross country pipeline to India.
like
___________________
___________________
___________________
___________________
46
Notes
Activity
Carry
out a similar exercise as
___________________
the first one for the oil, gas,
___________________
refinery
and petrochemical
facilities
of
Reliance
___________________
Petroleum.
___________________
___________________
___________________
___________________
___________________
___________________
The refinery industry also dates back to over one hundred years.
___________________
Regulatory
regime
was
introduced
on
production,
47
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
48
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Transportation Infrastructure
India has major ports for handling of oil and products (export and
import) at Jamnagar, Mumbai, Mangalore, Cochin, Chennai, Vizag
and Haldia. Inland transportation of crude from the production
sites or ports is primarily undertaken via pipelines.
49
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Pipelines
A few of the major pipeline systems in the country is shown in the
next block. A vast network of oil, gas, LPG and petroleum product
pipelines exist all over the country.
Rail System
About 40 Million tons of petroleum products are moved from
refineries to storage terminals or depots in other various cities and
towns by the railway network.
Summary
In this unit, the total macro-system from oil well to petrochemicals
was explained in the form of block diagram. Flow of various
components of gas and oil in to the manufacturing blocks of
refinery and petrochemicals leading to final products was
highlighted.
___________________
___________________
___________________
50
Notes
Indications were given how at each step of processing the oil and
gas get valorized in to higher priced products.
___________________
___________________
___________________
___________________
presented with maps. The high growth potential of oil and gas
___________________
___________________
___________________
___________________
___________________
___________________
Keywords
Oilfield Processing: The well fluid is processed in or in the
vicinity of the oilfield.
Upstream: Includes Oilfield Processing and Transportation of oil
and gas.
Downstream: Includes Gas Processing, Refinery, Petrochemicals,
Power Plants and other gas based industries.
HBJ Pipeline: It provides feedstock to numerous fertilizer plants,
power plants and petrochemical plants on its route.
2.
3.
4.
5.
Name
four
major
refining
companies
in
India
with
Further Readings
51
Notes
Books
___________________
___________________
___________________
Web Readings
___________________
www.economywatch.com/world-industries/oil
___________________
www.oilmillmachinerysuppliers.com/history.html
___________________
www.history.com/topics/oil-industry
___________________
___________________
___________________
___________________
52
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 5
53
Notes
Case Study
___________________
___________________
___________________
Objectives
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
54
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
55
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
56
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
57
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
58
___________________
___________________
Question
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
59
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
BLOCK-II
Detailed Contents
60
Notes
UNIT
6: THE EXPLORATION OF OIL
___________________
z
Introduction
___________________
z
Formation of Oil Traps
___________________
z
Exploration for Oil and Gas
___________________
UNIT
7: PRODUCTION METHODS
___________________
Introduction
Introduction
___________________
Introduction
___________________
___________________
___________________
Unit 6
The Exploration of Oil
Objectives
After completion of this unit, the students will be aware of the following
topics:
\
How hydrocarbons (oil and gas) were formed and trapped below the
surface of the earth
61
Notes
Activity
Make
a presentation on the
___________________
formation of Oil traps.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Introduction
It is important to have an elementary understanding on how
hydrocarbon is formed and trapped in the rocks below the earth.
It was explained earlier that according to the widely accepted
organic theory, oil and gas were originated from huge masses of
organisms, animals and vegetation that got buried under the earth
and were covered by sedimentary rocks. Layers of rock formed over
it and the formation and trapping of the hydrocarbons took place in
the following stages over millions of years.
62
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
63
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
In the trap, the gas being the lightest rises to the top. The oil
settles below the gas, and the water, which is heaviest, settles at
the bottom. Due to high pressure, a lot of gas remains dissolved in
the oil. A large formation of rocks of this nature bearing
hydrocarbons is called reservoir. The earth surface above a
reservoir from which commercial exploitation takes place, is called
oil, gas or condensate field depending on what it produces.
The term hydrocarbon reserves refers to the estimated amount of
oil, gas or condensate that is expected to be produced in the future
from wells in known fields.
The search for hydrocarbons is called prospecting or exploration of
oil or hydrocarbons.
64
Notes
Activity
Differentiate
between
___________________
Geologists and Geophysicists
___________________
according
to the nature of their
work.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
through locating seepages. It is said that the first oil field in India,
___________________
at Digboi was identified after oil was seen on the mud carried with
footsteps of elephants in the jungles of Assam. With such easily
locatable and shallow oilfields having been exhausted and the
demand for energy having gone up by leaps and bounds, the search
for oil is a different ball game today. It is very technology-oriented,
yet uncertainties and risks are still heavy.
A commonly used terminology in oil companies, Exploration
& Production (E&P), comprises of search, discovery and production
of oil and gas by undertaking the following activities:
z
65
___________________
___________________
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
66
Notes
___________________
___________________
___________________
___________________
gravity at a location.
___________________
___________________
___________________
___________________
___________________
___________________
6.4
depicts
seismic
survey
being
done
with
67
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Drilling
After geological and geophysical studies are carried out, the
possibility of presence of hydrocarbon deposits worth further
exploration is established. Once an exploration target is defined a
drilling contractor is hired to drill exploratory wells.
Exploratory well: An exploratory well is required to confirm the
existence of oil or gas in a basin identified through geological and
geophysical surveys. The first exploratory well drilled in a field is
called wildcat. The first successful well showing hydrocarbon
presence during wildcat is called discovery well. Points to note are:
z
The information interpreted from the well logs is used for decision
making on whether the well is to be used for production or is to be
abandoned for being not viable economically. The information is
also used to update the geological models.
68
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Oil wells are being drilled all over the world in diverse
geographical areas. Very often they are in remote areas like
deserts, forests or oceans (offshore). On land (onshore) the well site
must be cleared and access roads are constructed.
A typical drilling rig onshore is shown in Figure 6.5.
___________________
___________________
___________________
69
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Horizontal Drilling
Horizontal drilling is an important technology which makes oil
production more economic. Wells are usually drilled vertically or
slanted from a platform. Modern drilling technology can produce a
90 degree turn in a short distance. This is due to methods and tools
that control the drill bit, flexible pipe and innovative engineering
design. A horizontal well is first drilled vertically to a target then
angled to a path parallel to the formation to penetrate the
reservoir. This improves recovery and economics.
___________________
70
Notes
Offshore Drilling
___________________
___________________
___________________
1.
2.
A Drill Ship is like any other ship but has a mast located
centrally and is therefore a very mobile drilling rig.
3.
4.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
71
Notes
___________________
___________________
___________________
Recovery techniques
Environmental impact
De-commissioning costs
De-Commissioning of Wells
In most of the countries, it is mandatory to decommission the
wells and bring back the land to its original state after the field is
abandoned.
Exploration and Production Costs
The costs incurred for production of oil and gas comprise of the
following:
z
Exploration Costs
Development Costs
Operating Costs
___________________
___________________
___________________
___________________
___________________
___________________
___________________
72
Notes
___________________
___________________
___________________
___________________
___________________
Development of FPSO
___________________
___________________
___________________
___________________
___________________
73
Notes
___________________
___________________
___________________
Field life
___________________
___________________
Production profile over the field life (for oil, gas and water)
___________________
___________________
___________________
Field Life
It could be from a few years to a few decades. Fields with low
production profile and short life are referred as marginal fields.
___________________
___________________
74
Notes
___________________
___________________
___________________
___________________
___________________
___________________
Oil Ratio (GOR) can vary widely from field to field and over the
field life.
Production Profile
Normally the oil production starts at a low level, it increases to a
peak level called plateau level and then tapers off. The gas and
water production also changes with field life depending on
characteristics of the reservoir. Typical production profile of an
oilfield is given in Figure 6.7.
___________________
___________________
___________________
___________________
Summary
In this unit, at first the formation of hydrocarbon bearing
structures was described. A description of hydrocarbon reservoir
comprising of porous rocks containing the hydrocarbon in its
pores and covered by a non-permeable cap rock was given.
This was followed by description of the methods of oil exploration,
identification of probable hydrocarbon bearing structures and
75
Notes
___________________
___________________
___________________
___________________
___________________
Drilling Rig
___________________
___________________
Keywords
___________________
___________________
___________________
2.
3.
4.
Further Readings
Books
Fundamentals of Oil & Gas Accounting? Charlotte J. Wright,
Rebecca A. Gallun - Business & Economics, 2008
Introduction to the Global Oil & Gas Business? -Samuel Van
Vactor - Business & Economics
76
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Web Readings
www.ril.com/html/business/exploration_production.html
www.wikinvest.com/.../Oil_%26_Gas_Drilling_%26_ Exploration
www.satimagingcorp.com Satellite Imaging Services
www.hoovers.com Hoover's Directories Industry Overviews
Unit 7
Production Methods
Objectives
After completion of this unit, the students will be aware of the following
topics:
Make
a presentation on
___________________
Sucker Rod Pumps and how
they___________________
pump out the oil.
___________________
___________________
___________________
___________________
___________________
Notes
Activity
Introduction
77
___________________
___________________
___________________
78
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
The plunger goes deep down the well moving up and down
pumping out the oil.
Water Injection
Water is first treated to meet reservoir specification for particulate
content, dissolved solids content, oxygen content etc. Then it is
injected around the periphery of the producing well as shown
(Figure 7.2).
79
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Contd
80
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Steam Injection
Steam is injected down injection wells to heat the heavy oil to
reduce its viscosity and make it more fluid. The steam also
produces drive to push the oil toward producing wells.
In-situ Combustion
This method of EOR is used for very viscous crude oils. It is also
used as primary production method where crude oil is too viscous
to flow up through the well on its own.
81
Notes
___________________
In this process (Figure7.4), air and water are injected into the oil
reservoir in alternate cycles. At first air is injected around the
outer layer of the reservoir and the oil is ignited as a result of
presence of oxygen (air). The heat generated raises the
temperature of oil thus reducing the viscosity.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
82
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
In this unit, an overview was given on various primary and
secondary methods of oil and gas production. This included Water
injection, Steam injection, In-situ Combustion and Gas Injection
and Gas Lift.
Keywords
Primary Production: It is the kind of production of oil on its own
pressure.
Christmas Tree: It is a primary production facility comprising a
Manifold on top of the well.
In-situ Combustion: This method of EOR is used for very viscous
crude oils.
2.
3.
Further Readings
83
Notes
Books
___________________
___________________
Introduction to the Global Oil & Gas Business, Samuel Van Vactor
- Business & Economics
___________________
___________________
___________________
Web Readings
___________________
www.ril.com/html/business/exploration_production.html
___________________
www.wikinvest.com/.../Oil_%26_Gas_Drilling_%26_ Exploration
___________________
___________________
___________________
84
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 8
Onshore Oilfield Processing
Objectives
After completion of this unit, the students will be aware of the following
topics:
85
Notes
Activity
Find___________________
out which are some
Hydrocarbon producing fields
___________________
in India.
___________________
___________________
___________________
How oil and gas are gathered from many wells in the oilfield
___________________
___________________
___________________
___________________
___________________
Introduction
Wellhead fluids must be processed before anything else. So, oil and
gas production involves a number of surface unit operations
between the wellhead and point of custody transfer. Collectively
these operations are called oilfield processing.
This unit talks about Oilfiels processing and its various facets.
86
Notes
distances (less than a Km) spread over the whole area. The well
___________________
___________________
(GGS), where the oil, gas, and water are separated and processed.
___________________
___________________
As shown, the well fluid is collected from the wells by flow lines
___________________
___________________
___________________
___________________
___________________
___________________
87
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Oil and gas as produced in the field is not transportable and does
not meet customer specification. Before transportation to the buyer
by pipeline or tanker, crude oil and natural gas must be separated
and treated to meet certain customer specifications. Table 8.1 gives
an idea of the quality of oil and gas as it comes out from the oil well
and as desired by the customer.
___________________
Processing of the well fluid and oil, gas and water is needed before
we can bring them to the desired specification for sending to a
customer. Thus some amount of processing at the oilfield itself is
required, whether offshore or onshore, however remote the location
may be.
The configuration of an oil field is presented in Figure 8.2 in block
diagram format outlining the gathering scheme and minimum
processing at the gathering station.
The block diagram configuration of Group Gathering system
(Figure 8.2.) is to be seen in conjunction with oilfield configuration
shown in Figure 8.1. Flow lines carrying well fluid from the wells
are all taken to a GGS. A Header or a manifold collects all the well
fluid. As indicated in Figure 8.2 the main processing blocks are:
z
___________________
88
Notes
Activity
Make
a presentation on the
___________________
topic Gas Dehydration.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
89
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
90
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Dehydration of gas
Treatment of water
91
Notes
___________________
Flare System
Control System
___________________
___________________
___________________
___________________
___________________
of
Separators
These are pressure vessels whose function is to separate oil, gas
and water. A simple sketch of a separator was presented earlier.
The operating pressure of the separators could be very high (say 50
to 60 atmospheres) or lower depending on the reservoir pressure.
Besides the simple design of separator shown, there could be wide
variety of designs, some of them of proprietary make:
z
Horizontal separator
Vertical separator
___________________
___________________
___________________
___________________
92
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Most of the free water comes out of the crude oil in the separators.
But the emulsion water remains dispersed in the crude. There can
be as high as 30 to 40% emulsion water in some crude oils after the
separator. Special equipment called Electrostatic Treater or
Heater Treater is used to dehydrate the crude oil to a level of below
0.5% water content. While Electrostatic Treater treats the crude by
coalescing the water particles in emulsion by creating an electro
static field, the Heater Treater also heats the crude oil in the same
equipment reducing the viscosity of crude oil and facilitating
dropping down of water particles.
A sketch of Heater-Treater is shown in Figure 8.7. It has two
chambers. First crude oil enters the heating chamber where it is
heated by a fire tube which is fired with oil or gas burners. Some
water droplets settle down in this chamber itself. Then the crude
passes through the treater section where an electrostatic field is
created by a high voltage transformer. Here the electrically
charged emulsion water particles coalesce, settle down at the
bottom and drained.
93
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 8.7: Heater Treater
___________________
___________________
Dehydration of Gas
There are a number of processes for dehydration of gas as
described later. These could be Dry Bed Adsorbent process, where
moisture is adsorbed on the porous surface of the drying medium,
which are solid particles. For example beads of Silica Gel or
Molecular Sieves are used as drying medium. Some of these
processes are used to dry the gas to bone dry level.
The other type of processes are based on absorption of the moisture
from the gas by scrubbing (washing) the gas with a liquid drying
agent, which is a good absorbent of moisture. These units are
easier to operate but not suitable for getting the gas totally dry
(bone dry). In oilfield, absorption type of process is more commonly
used. Water is removed from the gas by contacting the wet gas
with an absorbent liquid which absorbs the water (Figure 8.8).
Generally Glycols are used as absorbent. Tri-ethylene glycol (TEG)
and ethylene glycol (EG) are the two most commonly used glycols
in natural gas dehydration.
TEG is used in about 95% of glycol dehydrators. Dehydration with
TEG is most widely used in oil/gas field processing.
Dehydration of gas takes place in a column (Absorber Column)
with trays or packing inside to facilitate contact between glycol
absorbent and the wet gas. The gas fed at the bottom part of the
column goes up and the dry glycol (lean glycol) fed at upper part of
the column comes down the column absorbing water out of the gas.
Absorbent containing water absorbed from gas (rich glycol) is
94
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Such systems are widely used in offshore and onshore fields for
dehydration of gas. Gas dehydration unit is also skid-mounted
with piping and ancillary equipment for easy installation in the
field.
95
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 8.9: Produced Water Treatment
Flare System
Flare system is an important facility in any plant processing oil or
gas. It is essentially a tall stack made of steel pipe along with a
flare tip (burner) at top and ancillary equipment.
It burns out any hydrocarbon released during processing due to
overpressure in any of the equipment. Normally, the plant
facilities have safety release valves which release the contents of
an equipment if the pressure rises beyond a safe operating limit.
The flare system prevents such flammable hydrocarbon releases to
get into the plant area and surroundings by burning out such
releases.
It is also used to burn out any excess gas produced. This situation
can occur when a customer downstream suddenly stops taking the
gas due to any operating problem in his plant. It may take some
time for the oilfield operator to cut down the gas production.
During this period the gas is diverted to flare, to avoid any kind of
accident.
Also in a field producing crude oil, the associated gas produced
may be more than the gas demand in the market. Then the excess
gas will need to be flared.
___________________
___________________
96
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
97
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
The well fluid is gathered from the wells by flow lines into a
manifold at GGS.
98
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
Certain amount of processing needs to be done at the oilfield before
the oil and gas are transported to refineries or gas processing
plants. This unit described what are the processing done,
schematics and equipment for such processing.
Typical configuration of an oil field with wells, gathering of well
fluid and processing stations were described for both onshore and
offshore fields.
Keywords
Separator: It is essentially a vessel having some internals to
facilitate separation.
Crude Oil Dehydration: The process of removal of water from
crude oil is called crude oil dehydration
Dry Bed Adsorbent: This is a process, where moisture is absorbed
on the porous surface of the drying medium, which are solid
particles.
Flare System: An important facility plant processing oil or gas. It
is essentially a tall stack made of steel pipe along with a flare tip
(burner) at top and ancillary equipment.
Demulsifier Chemicals: There are used to break emulsions of
water in oil or oil in water.
2.
3.
4.
Further Readings
Books
Maurice Stewart, Ken Arnold, Emulsions and Oil Treating
Equipment: Selection, Sizing and Troubleshooting, Technology &
Engineering, 2008
Hussein K. Abdel-Aal, Mohamed Aggour, M. A. Fahim, Petroleum
and gas field processing, Technology & Engineering, 2003
Maurice Stewart, Ken Arnold, Gas-liquid and liquid-liquid
separators, Technology & Engineering, 2008
Web Readings
www.pennwellbooks.com Petroleum Books Production
hw.tpu.ru/en/short-courses/sc/Sc_PTSF/Oilfield/
www.egpet.net/vb/showthread.php?...Oilfield-Processin... - United
States
99
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
100
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 9
Offshore Oilfield Processing
Objectives
After completion of this unit, the students will be aware of the following
topics:
\
101
Notes
Activity
Make
a presentation on
___________________
FPSO.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Introduction
The oilfield facilities are installed in the oilfield whether it is an
onshore or offshore field. So far we had focused on the
configuration of onshore facilities. We explained how oil and gas
are gathered in Group Gathering Stations and processed.
In this unit, we will talk about offshore oilfields.
___________________
102
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
103
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
104
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
105
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
FPSO
Floating Production and Storage Offloading (FPSO) is one of the
most popular systems for offshore production. The first floating
system started production in North Sea in 1975. Its design has
been adopted to wide variety of production situations and
environment. FPSOs are operating today all over the world. It can
operate down to 2000 meters of water depth.
FPSOs have been effectively used in large producing fields, deep
sea and marginal fields. Its economic advantage comes because:
z
106
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
reaches sea bed. Then piles are hammered through it into the sea
bed to fix the legs on the sea bed.
Fabrication of rest of the platform is done meanwhile in a shore
based construction yard. A rectangular three dimensional piece of
steel structure called jacket is fabricated to hold together the four
legs. The finished structure is then skidded on to the
transportation barge, taken to the location and placed on top of the
legs to hold them together. Also the platform decks are fabricated
in the yard, brought by the barge to the location and placed on top
of the jacket. Process equipment along with piping and ancillaries
are also fabricated in different shops on shore as modular skid
mounted units. They can be placed on the decks beforehand at the
yard itself or brought by barge to the location and placed by crane
on top of the decks.
107
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
108
Notes
Activity
Discuss
how the Logistics of
___________________
off-shore oilfields is taken care
of. ___________________
location, and filled with sea water so that it can sink down to its
final position on the seabed. Such structures can weigh hundreds
of thousand tons.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 9.5: Offshore Construction
Operating Philosophy
Special features of operating philosophy in offshore platform are:
Safety: Being far away in a remote area, operating safety and
emergency planning for containment of disaster and evacuation of
personnel are important features in design and operation of an
offshore platform. This involves:
z
Logistics
Logistics management is very important for successful operation of
offshore production facility.
Logistics support requirements are personnel related, maintenance
related and equipment related.
Logistics relate to:
109
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
110
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
This unit described what are the processing done, schematics and
equipment for such processing. Typical configuration of an oil field
with wells, gathering of well fluid and processing stations were
described for offshore fields. How the concept of an oilfield at offshore
changes and develops with time was described from real life example.
Keywords
Production Platform: Production platform contains certain
minimum processing facility like separation and stabilization of
crude oil.
Process Platform: Process Platforms are the biggest platforms in
an offshore complex, which is equivalent to a GGS onshore.
111
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
1.
___________________
2.
3.
Further Readings
Books
Maurice Stewart, Ken Arnold, Emulsions and Oil Treating
Equipment: Selection, Sizing and Troubleshooting, Technology &
Engineering, 2008
Hussein K. Abdel-Aal, Mohamed Aggour, M. A. Fahim, Petroleum
and gas field processing, Technology & Engineering, 2003
Maurice Stewart, Ken Arnold, Gas-liquid and liquid-liquid
separators, Technology & Engineering, 2008
Web Readings
www.pennwellbooks.com Petroleum Books Production
hw.tpu.ru/en/short-courses/sc/Sc_PTSF/Oilfield/
www.egpet.net/vb/showthread.php?...Oilfield-Processin... - United
States
www.amazon.com ... Engineering Chemical Engineering
112
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 10
113
Notes
Case Study
___________________
___________________
___________________
Objectives
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.
___________________
___________________
___________________
Annual
Production
15,000
1,500
Competitor B: Petronas
8,000
800
Competitor C: Pertamina
7,500
750
6,000
450
6,000
___________________
___________________
___________________
___________________
114
Notes
___________________
___________________
___________________
Analysis:
___________________
___________________
___________________
___________________
___________________
___________________
___________________
115
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
BLOCK-III
Detailed Contents
116
Notes
UNIT
11: GAS PROCESSING
___________________
z
Introduction
___________________
z
Characteristics of Natural Gas
___________________
z
Overview of Gas Processing
___________________
z
Process Description
___________________
UNIT
12: LIQUEFIED NATURAL GAS (LNG)
___________________
z
z
z
z
Introduction
___________________
The LNG Cycle
___________________
LNG Project Economics
___________________
The Indian Scenario
___________________
Introduction
Why Refining
Product Specifications
Introduction
Refinery Configurations
Unit 11
Gas Processing
Objectives
After completion of this unit, the students will be aware of the following
topics:
117
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Introduction
Natural Gas processing is a complex industrial process designed to
clean raw natural gas by separating impurities and various
non-methane hydrocarbons and fluids to produce what is known
as pipeline quality dry natural gas.
Natural Gas processing begins at the well head. The composition of
the raw natural gas extracted from producing wells depends on the
type, depth, and location of the underground deposit and the
geology of the area. Oil and natural gas are often found together in
the same reservoir. The natural gas produced from oil wells is
generally classified as associated-dissolved, meaning that the
natural gas is associated with or dissolved in crude oil. Natural gas
production absent any association with crude oil is classified as
non-associated.
Physical Properties
Natural Gas is gaseous at any temperature over 161C (258F).
Since that is a very cold temperature, we normally consider
natural gas as a gas. Natural gas boils at atmospheric pressure
and a temperature of 161C, exactly like water turns into a
vapour (steam) at +1000C. Natural gas is handled in a wide range
of operating conditions as a liquid below -161C (LNG) and also
as compressed gas at 200 Bar (3,000 psi) for automobile (CNG).
___________________
118
Notes
___________________
___________________
___________________
___________________
___________________
One cubic meter (SM3) of natural gas weighs roughly 0.8 Kg.
Comparatively one M3 of oil weighs about 800 Kg.
That means 600 cubic meters (M3) of gas (which is roughly 480
Kg) is made into 1 cubic meter of LNG.
___________________
___________________
___________________
___________________
___________________
Hydrogen sulfide (H2S) and carbon dioxide (CO2) are often present
119
Notes
___________________
to health).
___________________
This means that natural gas being lighter than air will rise if
escaping, thus dissipating from the site of a leak. This important
characteristic makes natural gas safer than most fuels.
Natural gas does not contain any toxic component; therefore there
is no health hazard in handling of the fuel. Heavy concentrations,
however, can cause drowsiness and eventual suffocation.
Chemical Properties
The air-to-fuel ratio (AFR) indicates the amount of air relative to
the amount of fuel used in combustion. The minimum amount of
air relative to fuel for complete combustion is called the
stoichiometric ratio. The stoichiometric ratio for natural gas (and
most gaseous fuels) is normally indicated by volume. The air to
natural gas (stoichiometric) ratio by volume for complete
combustion is 9.5:1 to 10:1. This ratio is approximate only because
of the variations in fuel composition.
The Lower Explosive Limit (LEL) and the Upper Explosive Limit
(UEL) determine the range of lammability. For natural gas, the
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
120
Notes
Activity
Make
a chart on the process
___________________
of Gas Processing.
___________________
___________________
___________________
___________________
___________________
___________________
LEL is 4%, while the UEL is 14%. It means that a natural gas
mixture ignites within a range of 25:1 to 7:1 air-to-fuel ratio by
volume. By comparison, a propane mixture ignites within a range
2% LEL to 10% UEL. It means a gas leaner or richer outside the
explosive limits is not explosive.
Natural gas has a very high octane number, approximately 130. By
comparison, propane is approximately 105 and gasoline 92 to 94 at
best. This means that a higher compression ratio engine can be
used with natural gas than gasoline. Indeed, many racing cars use
the high octane rating of natural gas to give them more power.
___________________
___________________
___________________
121
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Removal of Impurities
The main impurities present in the gas are moisture, carbon
dioxide, hydrogen sulfide, nitrogen, mercury.
Some of these need to be removed totally (to a few ppm level),
while some need to be brought down in concentration.
Gas Dehydration: The gas need to be dehydrated because:
z
It is very toxic
It is highly corrosive
___________________
___________________
122
Notes
___________________
___________________
___________________
___________________
___________________
___________________
Recovery of Hydrocarbons
The objective is to recover hydrocarbons like ethane, propane,
butane by condensing them at very low temperatures and then
purifying by fractionation. The word cryogenic is used for low
temperature processing.
___________________
___________________
Recovery of NGL
___________________
Recovery of LPG
Recovery of Ethane
___________________
Liquefaction of Gas
For liquefaction of gas for transportation purpose (LNG),
temperature below 160C is required at atmospheric pressure.
During liquefaction normally LPG and ethane are recovered when
temperature levels mentioned above are reached. The remaining
bulk of the gas, mainly methane, is transported as LNG. As
mentioned later, LNG by itself is a large and complex industry.
There could be processing at lower temperatures for helium
recovery or nitrogen rejection for gases containing high amount of
nitrogen.
Essentially to recover any component, the gas needs to be chilled to
a temperature at which the component will condense.
The flow diagram and brief description of the processes are given
later.
An overall block diagram of the processing steps in a gas
processing plant is given in Figure 11.1.
Gas received from pipeline often comes along with slugs of liquid
(NGL). This is trapped in Slug catcher. The liquids are separated
in the slug catcher. The gas is first sweetened to remove H2S (if it
is a sour gas). Some amount of carbon dioxide also gets removed
along with H2S. Normally H2S is not allowed to be discharged into
the atmosphere. It is converted to sulfur in a sulfur recovery plant.
Sulfur comes out as a by-product.
123
___________________
___________________
There are two possible ways the methane rich gas after recovery of
heavy hydrocarbons is transported to the user:
z
Through pipeline
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
124
Notes
Activity
Find___________________
out using the Internet
why Dry bed processes are
more___________________
difficult to operate
compared
to the Glycol
___________________
Dehydration process.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Process Description
This section talks about the process of Gas processing.
Gas Dehydration
There are two types of gas dehydration processes:
Adsorption Processes: These are solid bed processes using
reagents like Molecular Sieve or Alumina as adsorbents.
Absorption Processes: These use liquid absorbents which absorb
the moisture from the gas.
125
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
126
Notes
___________________
which reduces the energy requirement in the stripper and cools the
___________________
___________________
The dry bed processes are not normally used in offshore or onshore
___________________
___________________
___________________
___________________
requirement.
Dry bed processes using molecular sieve granules as drying agent
is used to make the gas bone dry (below 1 ppm moisture) before
processing at low temperatures.
___________________
___________________
___________________
127
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 11.3: Dry Bed Gas Dehydration
___________________
Gas Sweetening
Hydrogen sulfide, carbon dioxide and mercaptans can be removed
from natural gas by several processes. The various processes for
sweetening used are:
z
mono
128
Notes
___________________
___________________
Volume of gas
___________________
___________________
and CO2) fed at the top of the column and traveling down the
___________________
column.
___________________
The acid gas components, H2S and CO2, are absorbed by the amine
___________________
___________________
___________________
___________________
solution and the sweet gas leaves the absorber for further
processing. The rich amine (amine with dissolved hydrogen sulfide
and carbon dioxide) is drawn from the bottom.
The absorption column operates at high pressure (at pressure of
the gas) in the range of 30 ata to 70 ata while the stripper is
operated at closer to atmospheric pressure. The temperature at the
absorption column is close to the ambient temperature (30-40C).
The rich amine is sent to a flash tank to drop the pressure and
absorbed hydrocarbons exit as the flash-tank vapour. The rich
amine flows through the lean/rich amine heat exchanger
increasing the temperature to above 100C.
Fine particles, resulting from wear and tear of the piping and other
equipment, collect in the amine solution, which ultimately lead to
blocking and foam generation in the column. So there is a amine
filtration step before the regeneration in the stripping column.
The rich amine (amine with dissolved hydrogen sulfide and carbon
dioxide) is separated (regenerated) in a later step using steam in
the stripping column. From the top of the regeneration column
mainly hydrogen sulfide and carbon dioxide mixture with a little
quantity of hydrocarbons absorbed by the amine come out.
The hot rich amine is stripped at low pressure removing the
absorbed acid gases, dissolved hydrocarbons, and some water.
Considerable amount of energy is required to strip the amine. Heat
is supplied by a firetube type reboiler. The temperature at the
bottom of the stripping column can be over 200C.
The stripped or lean amine is sent back through the lean/rich
exchanger decreasing its temperature. A pump boosts the pressure
such that it is greater than the absorber column. Finally, a heat
exchanger cools the lean solution before entering the absorber. The
lean amine entering the absorber is usually 40 to 45C.
129
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
130
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
131
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
By an appropriate combination of external refrigeration and turboexpander process, very low temperatures can be factors like:
z
Summary
In this unit we learnt about the Physical properties and
characteristics of Natural gas. We also learnt about its Chemical
properties and its composition. The entire process of Gas
Processing is also explained.
132
Notes
___________________
___________________
___________________
Keywords
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Further Readings
Books
Arthur J. Kidnay, William R. Parrish, Dan McCartney,
Fundamentals of Natural Gas Processing, Second Edition
Dominic C. Y. Foo, Mahmoud M. El-Halwagi, Raymond R. Tan,
Recent Advances in Sustainable Process Design and Optimization
Web Readings
en.wikipedia.org/wiki/Natural-gas_processing
www.linde-india.com/.../Natural%20Gas%20Processing%20
Plants.pd...
www.bv.com/Downloads/Resources/.../rsrc_ENR_Gas
Processing.pdf
ftp://ftp.eia.doe.gov/pub/oil_gas/...gas/.../ngprocess/ngprocess.pdf
Unit 12
Liquefied Natural Gas (LNG)
Objectives
After completion of this unit, the students will be aware of the following
topics:
133
Notes
Activity
With___________________
the help of the Internet,
list the Chemical components
___________________
of LNG.
___________________
___________________
___________________
LNG Cycle
___________________
___________________
Introduction
Natural Gas is a highly desirable energy source: it burns cleanly,
with little pollution, it is often inexpensive to produce and can be
transported easily through pipeline like any other petroleum
product. The demand for natural gas is growing at a fast pace as a
source of energy and petrochemicals.
___________________
___________________
___________________
134
Notes
___________________
___________________
___________________
Mol. Wt.
___________________
___________________
___________________
___________________
___________________
___________________
01.0 %
85.1 96.7 % (Lean)
1.9 8.6 % (Rich)
0.68 4.1 %
Traces
16.8 19.3 (Rich)
10.450 Kcal/NM3
0.455
Spilled LNG will crack a steel plate like boiling water hitting
frozen glass.
___________________
N2
Methane
Ethane
Propane
i- Butane, nButane
Mol. Wt.
01.0 %
85.1 96.7 % (Lean)
1.9 8.6 % (Rich)
0.68 4.1 %
Traces
16.8 19.3 (Rich)
10.450 Kcal/NM3
0.455
Spilled LNG will crack a steel plate like boiling water hitting
frozen glass.
135
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
136
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 12.2: LNG Upstream
___________________
___________________
___________________
storage
(generally
at
like glass. The storages are made of special nickel steel as normal
steel becomes brittle at that low temperature.
137
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
138
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Basic gas price at source for LNG facilities are relatively cheap,
based on large and easily produced reserves. Processing
(Liquefaction) and transportation equipment is capital intensive
and highly specialized, requiring large investment for each new
facility. For each million cubic feet of gas delivered to end use, less
than 30 percent of the cost is associated with the raw material
price (gas price at source). The balance is the cost associated with
processing and transportation.
Liquefaction is a very energy-intensive process. Typically, about
8 to 9 percent of the natural gas delivered as raw material at an
LNG plant, is used as plant fuel for liquefaction. The number of
tankers required is a function of the distance between the export
terminal and the import terminal and the number of days it takes
to move between the source of gas and destination. The unit cost of
marine transport is primarily a function of the capital cost of the
tanker, distance, the financing terms and acceptable rate of return
for the tanker owners.
Liquefaction
plant,
Consuming organizations
Financiers
139
Notes
Activity
Do ___________________
further research on the
reason for the large gap
___________________
between
demand and supply
of gas in India.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
140
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
LNG Facility
___________________
___________________
___________________
For the import of LNG, the long-term tie-ups are with producers in
the Middle East.
Notes
___________________
___________________
141
formed
to
transport
and
___________________
___________________
___________________
___________________
___________________
Summary
Basic properties and characteristics of natural gas was described
in the beginning.
This was followed by highlighting the need or objectives of
processing natural gas namely removal of impurities and
separation of the components of gas. Various processes used in gas
purification was described with simple flow diagram. The
importance of gas dehydration and gas sweetening was
highlighted.
Liquefaction of the gas to LNG and separation of various
components of gas were described with simple flow diagrams.
Various methods of getting low temperatures for condensation of
gas was described.
Keywords
Calorific Value: Calorific Value of a hydrocarbon is measure of
heat released by burning unit volume or weight of the
hydrocarbon.
Specific Gravity of a Gas: Specific Gravity of a Gas is defined as
the weight of a given volume of the gas compared to the weight of
the same amount of air at the same temperature and pressure,
where air weight is taken as reference (= 1).
___________________
___________________
___________________
142
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
2.
3.
4.
Further Readings
Books
Arthur J. Kidnay, William R. Parrish, Dan McCartney,
Fundamentals of Natural Gas Processing, Second Edition
Dominic C. Y. Foo, Mahmoud M. El-Halwagi, Raymond R. Tan,
Recent Advances in Sustainable Process Design and Optimization
Web Readings
en.wikipedia.org/wiki/Natural-gas_processing
www.linde-india.com/.../Natural%20Gas%20Processing%20
Plants.pd...
www.bv.com/Downloads/Resources/.../rsrc_ENR_Gas
Processing.pdf
ftp://ftp.eia.doe.gov/pub/oil_gas/...gas/.../ngprocess/ngprocess.pdf
Unit 13
Petroleum Refining
Objectives
After completion of this unit, the students will be aware of the following
topics:
143
Notes
Activity
Do ___________________
further research on
Naphtha and its different uses.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Introduction
What does a petroleum refinery do? Why do we need refining?
These are some of the questions that this unit will try to answer. It
will also trace the history of development of the various processes
in the refining industry.
Why Refining
In a nutshell the main functions of a refinery are:
Primary Separation: Crude oil is a mixture of around 500
components. They need to be separated into useful products. The
separation is not done to recover individual components but as
products which are mixtures of suitable boiling ranges. This is
done by distillation, where various cuts or fractions are taken out
as gasoline, kerosene, diesel etc. which are essentially raw
material or intermediate products.
Processing to Meet Quality Specifications: Typical examples of
this type of processes are those used for improvement of octane
number to meet gasoline specification. Raw gasoline cut or
naphtha as it comes out of distillation has low octane number (may
be around 40 to 60 ON). But for the market we need octane
numbers of 87 and above. Processes are used to improve the octane
number by converting the low octane components of gasoline to
high octane components. For example, Catalytic Reforming process
converts straight chain paraffin in the raw gasoline to aromatics
144
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 13.1: Refinery under Construction
145
Notes
Activity
Using
the Internet, find out
___________________
more information about the
___________________
Indian
Standards Institute (ISI)
and its functions.
___________________
___________________
___________________
Product Specifications
The product specifications for products to be refined in a refinery
are as follows:
___________________
___________________
___________________
___________________
___________________
146
Notes
___________________
___________________
and helps to set the design pressure for the cylinder. Propane
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
specification.
Flash Point: It is the minimum temperature at which the product
generates enough vapour to form an explosive mixture with air.
Flash point is significant to the safety during storage. During
storage it can form explosive mixture in the empty part of the tank
above the liquid surface. It is preferable to store a product below
its flash point. Each country has its own specification of flash point
depending upon the climatic conditions of the country.
Octane Number (ON or O.N.): This signifies ignition quality of
the gasoline in automobile engines. The engine has cylinders with
pistons where the fuel (gasoline) and air mixture is injected. The
cylinders of an automobile pass through a cycle of expansion,
compression and ignition for movement of the pistons, which drive
the wheels through a crankshaft. For optimum delivery of power to
the engine, the fuel air mixture injected to the engine should ignite
at the right timing. Due to heat of compression, the temperature in
the cylinder goes high and there could be mistimed ignition of the
fuel due to the heat generated by compression. A high octane
gasoline is better for ignition. A mistimed ignition creates knocking
in the engine and this results in loss of power.
The different hydrocarbon content in gasoline (like in crude oil)
are:
straight
chain
paraffin,
isoparaffins,
naphthenes
and
aromatics. Normally for the same carbon number and size of the
molecule straight chain paraffins have the lowest octane number.
Branched chain paraffins (isomers) and naphthenes have the
higher octane number. Olefins also have high octane number but
they are undesirable in gasoline because they tend to polymerize to
form resins or gum in the tank.
Typical octane number of various constituents is given in the
table 13.2.
147
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
148
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
149
Notes
Activity
Chart
out the evolution of the
___________________
Refinery industry.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
150
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
History
Let us trace the history of development of the various processes in
the refining industry (Table 13.3).
It can be seen from the table that at first only separation processes
were used. Then came gasoline upgradation processes to meet
motor gasoline specification and conversion of heavies to lighter
151
Notes
___________________
___________________
As we can see from Table 13.3, almost all the current processing in
the refineries came into existence by the fifties. Later the changes
and innovations were related mainly to minimizing residues in the
refinery and to meet sulfur and other environment related
specifications.
Table 13.3: History of Refining
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Primary Separation
Let us discuss Primary Separation in greater detail. It is done by
Atmospheric Distillation and Vacuum Distillation. This is
diagrammatically represented in Figure 13.4
Atmospheric Distillation
Atmospheric Distillation is the first step in the refinery processing
to separate out the raw products (cuts) by distillation under
pressures above atmospheric pressures (Atmospheric Distillation).
152
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Vacuum Distillation
The limitation of distilling at higher temperatures is because
deterioration of crude oil starts at temperatures above
350- 370C. Crude oil starts cracking at high temperatures i.e. the
heavier molecules start breaking into smaller molecules.
Uncontrolled cracking process results in coke formation and
production of unstable olefinic (double bonded) hydrocarbon
products.
Vacuum distillation unit yields vacuum gas oil as distillate which
are used as feedstock for cracking to lighter products. Vacuum gas
oil also can form the base oil for processing into lubricating oils.
In vacuum distillation, the residue from atmospheric distillation is
heated to around 350-370C and distilled under vacuum
conditions.
With vacuum distillations, cuts like vacuum gas oil (feed for
cracking or lube oil manufacture) and bituminous residue etc. are
generated as shown in Figure 13.4. One or more gas oil cuts can be
drawn out of vacuum distillation. The residue which is left after
vacuum distillation is called short residue.
Atmospheric and Vacuum Distillation Cuts
Conversion Processes
Primary separation processes are essentially physical separation of
the raw products by distillation. Conversion process means change
of the molecules of the raw products obtained from distillation by
reaction process under heat, pressure, along with or without a
catalyst, from one type of molecule to another.
As mentioned earlier, there are two types of conversion processes:
z
Gasoline Upgradation
Gasoline upgradation is a typical example of conversion process to
meet specification of the product. Octane Number of gasoline cut
from distillation is low. Octane levels need to be raised to the
desired specification for engine performance requirements.
In the sixties and seventies, Catalytic Reforming was the most
prevalent process to increase Octane Number. The process
essentially converted paraffin in the gasoline cut into aromatics,
which have high ON. For further boosting the octane number, small
dosage of Tetra Ethyl Lead (TEL - Octane Booster) was added.
Aromatics generated by reforming process were found to be
carcinogenic and Lead was found to be health hazard.
With lead addition eliminated, new octane boosters (ethers like
MTBE or other oxygenated compounds) were developed.
With stricter aromatics specification in gasoline, use of reformate
gasoline (product from catalytic reforming) as gasoline blending
stock was reduced. New processes were developed for converting
naphtha to high-octane gasoline. Some such processes are:
z
153
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
154
Notes
___________________
___________________
Conversion of heavy cuts (e.g. gas oil from vacuum distillation) and
residues which are dark coloured, low value products to light and
valuable products are important for refinery economics. This is
done by Cracking Processes.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Visbreaking
Coking etc.
Treatment Processes
Sulfur Removal
Hydro-desulfurization is one of the processes to remove sulfur by
reaction of hydrogen with sulfur bearing components of oil. This
155
Notes
___________________
___________________
Finishing of Products
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
156
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
qualities are met by vacuum gas oils i.e. high boiling cuts distilled
by vacuum distillation of crude oil. These gas oil cuts are called
lubricating oil base stocks.
All crude oils do not give good lube base stock. For example waxy
crude oils like Mumbai High or some South East Asian crude oils
are not good for lube oil manufacture. Yield of suitable lube base
stocks are lower in these cases (as the oil is light) and wax creates
a lot of operational problems during lube extraction process. Some
of the medium heavy Middle East Crude oils give good quality lube
base stocks.
The various processing steps are:
De-asphalting Unit: Here asphalt from the lube base stock is
removed by solvent extraction process because asphalt is not good
to meet lube oil specifications.
Aromatics Extraction: Aromatic hydrocarbons are removed by
solvent extraction process to improve viscosity.
De-waxing: This is another solvent extraction process which
removes wax from the lube base stock. This is also solvent
extraction process.
Hydro-finishing: After these series of extraction processes, the
lube oil base stock is treated with hydrogen (hydro-finishing
process) to improve colour and give stability.
Summary
Bride oil needs to be separated into useful products. The
separation is not done to recover individual components but as
products which are mixtures of suitable boiling ranges. This is
done by distillation, where various cuts or fractions are taken out
157
Notes
___________________
___________________
Keywords
Flash Point: It is the minimum temperature at which the product
generates enough vapour to form an explosive mixture with air.
Octane Number: This signifies ignition quality of the gasoline in
automobile engines.
Octane Number: It is defined as the percent volume of iso-octane
in a mixture of iso-octane and normal heptane that gives the same
knocking as that of the fuel when tested under defined conditions.
Smoke Point: It is the length of flame in a standard laboratory
test, which produces smoke.
2.
3.
4.
Further Readings
Books
Arthur J. Kidnay, William R. Parrish, Dan McCartney,
Fundamentals of Natural Gas Processing, Second Edition
Dominic C. Y. Foo, Mahmoud M. El-Halwagi, Raymond R. Tan,
Recent Advances in Sustainable Process Design and Optimization
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
158
Notes
___________________
___________________
___________________
Web Readings
en.wikipedia.org/wiki/Natural-gas_processing
www.linde-india.com/.../Natural%20Gas%20Processing%20Plants.
pd...
___________________
www.bv.com/Downloads/Resources/.../rsrc_ENR_Gas
Processing.pdf
___________________
ftp://ftp.eia.doe.gov/pub/oil_gas/...gas/.../ngprocess/ngprocess.pdf
___________________
___________________
___________________
___________________
___________________
Unit 14
Refinery Requirements
Objectives
After completion of this unit, the students will be aware of the following
topics:
\
159
Notes
Activity
Discuss
in groups about the
___________________
differences in the Refinery
___________________
configuration
of the 60s and
that of modern refineries.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Introduction
We will have a look at how the refinery configuration looked in the
sixties. There has been other health and environment related
specifications like limitation of aromatics in the automotive fuels.
As a result, there have been huge investments to meet the product
quality with respect to sulfur and other environment related
specifications, lowering the margins.
A modern refinery has a number of process units. A list of various
types of process units in a petroleum refinery is given in Table
14.1. The refinery may have various combinations of process units
out of the list given here. A detailed description of the process and
plants and technologies are given later. At this point it is
important to know the description of the overall facility in a
refinery complex.
Refinery Configurations
The previous section gave an overview of various types of processes
used in the refinery. The process units in the refinery and their
capacities are determined by:
Product Demand
Product Prices
Product Specifications
Crude Oil Characteristics
___________________
160
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Fuel oil always fetched a low value, sometimes lower than the
crude oil resulting in negative return. A part or all of it was
distilled under vacuum to generate vacuum gas oil cuts, which go
as feedstock for lubricating oil manufacture. In the Lube Plant,
processes like dewaxing, and other extraction processes like
de-asphalting were used to produce lubricating oils meeting
specifications. Mild hydrogen treatment of the lube oils in the lube
plant was done to meet the final specifications and improve the
colour.
Gas oil cuts from vacuum distillation unit were also taken to Fluid
Catalytic Cracking Unit (FCC) to produce more of gasoline. FCC
unit was designed to produce gasoline as well as kerosene and
diesel. Some gases were also produced as a result of cracking.
Residue from vacuum distillation unit was often mildly cracked in
a Thermal Cracking Process called Visbreaker for use as fuel oil.
These units also produced some gases, gasoline and kerosene.
Gasoline, kerosene and diesel were made by blending the stocks
from crude distillation unit, and the various cracking and other
conversion units.
This is a typical configuration, simple and without any integration
with any other kind of facility.
161
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
162
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
163
Notes
common today.
Lower sulfur specs increases hydrotreating application and
generates need for a large hydrogen plant for the refineries.
Integration with a cogeneration power plant with coke and fuel
___________________
___________________
___________________
___________________
margin.
___________________
___________________
___________________
___________________
___________________
___________________
application
of
hydrogenation
processes
like
164
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
LPG. The cracking units generate some olefins like propylene and
___________________
butylenes
___________________
___________________
which
become
valuable
feedstock
for
making
165
Notes
Activity
Utility and offsite facilities
___________________
may cost more than 50%
___________________
of the total cost of the
project.
___________________
Utility and offsite facilities
___________________
occupy more than 60% of
the space in a refinery
___________________
layout.
___________________
Discuss thses two facts, in
Groups.
___________________
___________________
___________________
Figure 14.5: Balancing the Gases
___________________
166
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Utility Facilities
167
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
168
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
169
blending operations,
Notes
___________________
___________________
___________________
Control Room
___________________
crude
oil
is
received
by
Summary
In this unit, the history of development of the refining process and
refinery configuration was explained. The process units and
utility/offsite facilities required in a refinery was summarized.
___________________
___________________
___________________
___________________
___________________
___________________
170
Notes
___________________
Visit a refinery and find out how Storage and Handling of Crude
and Products are done.
___________________
___________________
Keywords
___________________
___________________
___________________
___________________
___________________
___________________
___________________
2.
3.
State any two properties of crude oil that decrease the quality
and efficiency of the oils. How are they improved?
4.
Further Readings
Books
Arthur J. Kidnay, William R. Parrish, Dan McCartney,
Fundamentals of Natural Gas Processing, Second Edition
Dominic C. Y. Foo, Mahmoud M. El-Halwagi, Raymond R. Tan,
Recent Advances in Sustainable Process Design and Optimization
Web Readings
en.wikipedia.org/wiki/Natural-gas_processing
www.linde-india.com/.../Natural%20Gas%20Processing
%20Plants.pd...
www.bv.com/Downloads/Resources/.../rsrc_ENR_Gas
Processing.pdf
ftp://ftp.eia.doe.gov/pub/oil_gas/...gas/.../ngprocess/ngprocess.pdf
Unit 15
171
Notes
Case Study
___________________
___________________
___________________
Objectives
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
172
Notes
always the possibility for fugitive gas leaks and the potential to
increase revenues.
___________________
Question
___________________
___________________
Source: http://leakimaging.com/gas-processing-case-study/
___________________
___________________
___________________
___________________
___________________
___________________
___________________
173
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
BLOCK-IV
Detailed Contents
174
Notes
UNIT
16: DISTILLATION IN REFINERIES
___________________
z
Introduction
___________________
z
Optimization of Refinery Operations
___________________
z
Description of Process Units
___________________
z
Vacuum Distillation
___________________
UNIT
17: PETROCHEMICAL INDUSTRY
___________________
Introduction
___________________
Polymerization Basics
___________________
Some Common Polymer Plastics
___________________
Petrochemicals in Our Lives
___________________
High Impact Plastics
Types of Plastics
z
z
z
z
Introduction
Steam Reforming
Aromatics Production
Introduction
Modes of Transportation
Pipeline Systems
Unit 16
Distillation in Refineries
Objectives
After completion of this unit, the students will be aware of the following
topics:
175
Notes
Activity
Find___________________
out more about LP
Modelling and its use in
___________________
different
fields.
___________________
___________________
___________________
___________________
___________________
Vacuum Distillation
___________________
___________________
Introduction
The basic software for optimization is available in the market
along with data bank on crude oil, possible refinery configuration,
cost data, process models, etc. One needs to define and give input
data on the specific problem and define what need to be optimized.
Let us now look into some of the process units in greater detail. We
will understand a generic processing system for refineries and
petrochemical plants and Vacuum Distillation.
___________________
176
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Constraint
equations
such
as
product
demand
and
Notes
___________________
___________________
___________________
___________________
___________________
optimization software.
z
177
___________________
___________________
___________________
Product specifications
___________________
___________________
178
Notes
Activity
Make
a chart on the Desalting
___________________
process.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Reactor vessel which gives time for the reaction to take place.
The Figure 16.2 depicts the concept in the form of a process where
two raw materials (feedstock) A and B are processed to get
products C and D. A and B are pumped through heat exchangers
which recover heat from outgoing hot products C and D. Then, A
and B are mixed and heated in a furnace to the desired
temperature. Reaction at high temperature takes place in the
reactor producing C and D as products. C and D are separated by
distillation and sent out to be stored as product.
179
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
180
Notes
___________________
___________________
___________________
___________________
Heater
Liquid Outlet
___________________
___________________
___________________
Liquid inlet
Motor
___________________
Pumps
___________________
Hot Fluid
___________________
Out
Cold Fluid
Shell
Tubes
Out
Heat Exchanger
Figure 16.3: Process Equipment
With this generic description in mind, let us now get into the flow
diagram and description of some of the important processes in the
refinery.
Desalting
Crude oil arriving from oilfield generally contains around 1%
saline water and organic salts. The salinity of the water could be in
the range of 15,000 to 30,000 ppm. In the refinery, the crude oil is
heated and distilled. Part of the salts contained in the crude oil,
particularly magnesium chloride, tends to undergo hydrolysis at
temperatures above 120C. Upon hydrolysis, the chlorides get
converted into hydrochloric acid and corrode the distillation
columns overhead and condenser. A desalter is normally installed
in the preheat section of crude distillation unit of a refinery, before
the distillation column. Its function is to reduce the salt content to
around 20-40 ppm and water content to below 0.1%.
Description
As described in the next section on crude distillation, desalters are
normally integral part of distillation plant.
181
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
182
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Crude Distillation
Atmospheric Distillation of the crude is the first step in the
processing of crude oil in a refinery. It is physical separation of oil
components at slightly higher than atmospheric pressure by
heating to around 350C + and subsequently distilling into
fractions (raw product cuts).
As crude oil starts cracking at temperatures higher than
370-380C, the residue from Atmospheric Distillation is
subsequently distilled under vacuum at similar temperatures. This
is called Vacuum Distillation. Distillation produces some gases
(LPG, Fuel Gas) and raw cuts of light products like gasoline,
naphtha, kerosene and diesel.
The residue from the bottom of the Atmospheric Distillation
Column is vacuum distilled to produce heavy gas oil, which form
the base stock to produce lubricants. The gas oil is also sent to
Cracking Unit to produce further light products.
Description
The fractionating column where multi-component distillation takes
place is the heart of the process. The crude needs to be heated up
before entering the fractionation column. This is done at first in a
series of heat exchangers where heat is taken from outgoing
products from the column, which need to be cooled before being
sent to storage. Heat is also exchanged against condensing streams
from the top of the column. Optimum design of this heat recovery
train or pre-heat train is extremely important for energy efficient
operation of the column. Typically, the crude will be heated up in
this way up to a temperature of 200-280C by heat recovery alone,
before entering a furnace.
As the raw crude oil received from oilfields contains water and salt,
it is normally sent for salt removing first, in a piece of equipment
called a desalter. This has been discussed in the preceding section.
The desalter is put midway in the pre-heat train at temperature of
around 130C.
Downstream the desalter, crude is further heated up with heat
exchangers, and starts vaporizing at about 200-280C. Then, the
crude enters the furnace where it is heated up further to about
330-370C. The furnace outlet stream is sent directly to the
fractionation column. Here, it is separated into a number of
fractions, each having a particular boiling range.
At 350C, and about 1 barg, crude oil is partly vapourized and the
vapours rise up along the column through trays. The vapours come
into contact with liquid coming down from the top of the column.
The different fractions are gradually separated from each other on
the trays of the fractionation column. The heaviest fractions
condense on the lower trays and the lighter fractions condense on
the trays higher up in the column. At different elevations in the
column, with special trays called draw-off trays, fractions are
drawn out by gravity through pipes, for further processing in the
refinery.
At the top of the column, vapours are routed to an overhead
condenser, typically cooled by water or air coolers. At the outlet of
overhead condenser, vapours are condensed into liquid (naphtha)
and gases are separated in an Accumulator at around 40C. Gases
are routed to a compressor for further recovery of LPG (C3/C4),
while the liquids (gasoline or naphtha) are pumped to a stabilizer
column. Part of the cold, condensed liquid is put back at the top if
the column as reflux.
This method of cooling the top part of the column and providing
heat at the bottom creates a temperature gradient along the
column. Top temperature remains close to 40C and the bottom
temperature of the column is around 350C.
The products are also drawn from different trays of the column.
These are called side draw-offs. The lightest side draw-off from the
fractionating column is a fraction called kerosene, boiling in the
range 150-280C, which flows into a smaller column called sidestripper. The purpose of the side stripper is to remove some light
hydrocarbons by using steam injection or an external heater called
reboiler. It essentially helps to meet the properties specified for
kerosene, since in a multi-component distillation there is overlap of
constituents of various cuts.
The second and third (optional) side draw-offs from the main
fractionating column are diesel or gas oil fractions, boiling in the
range 200-400C, which are ultimately used for blending the final
diesel product. Similar as with the kerosene product, the gas oil
fractions (light and heavy gas oil) are first sent to a side stripper
before being routed to further treating units.
At the bottom of the fractionation column a heavy, brown/black
coloured residue is drawn off.
183
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
184
Notes
Activity
Find___________________
out about Carbon-tocarbon bonding. In which all
___________________
areas
can you find it?
All the top and side draw-offs go for further treatment to meet
product specifications. The residue is vacuum distilled (see section
on Vacuum Distillation).
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Vacuum Distillation
As crude oil cracks above a range of 350-370C after atmospheric
distillation, it is distilled under vacuum to distillation unit recover
additional distillates from atmospheric residue (also termed long
residue). The objective is to minimize the residual stock and
maximize yield of useful products.
Vacuum gas oil cuts are produced in the vacuum distillation unit
for use as lubricating oil base stocks and/or feedstock for
conversion (cracking). The residue from vacuum distillation
(referred as short residue) can be used as feedstock for to produce
bitumen or as fuel component. It can also sometimes be cracked
further to produce light oils.
Description
185
Notes
___________________
___________________
___________________
Distillation Column. Vacuum Gas oil cuts are taken from top and
side of the column and cooled before dispatch to storage.
Vacuum is maintained with vacuum ejectors and sometimes also
___________________
___________________
___________________
___________________
___________________
pressure of the oil. Dry Vacuum Units use deeper vacuum with less
___________________
or no steam.
___________________
186
Notes
___________________
___________________
___________________
___________________
___________________
___________________
Catalytic Reforming
Catalytic reforming is a high temperature catalytic process to
convert low-octane naphthas into high- octane gasoline blending
components called reformates. Most straight run naphthas from
primary distillation of crude comprises of a lot of low octane
components like normal paraffins and five and six carbon
naphthenes. Reforming involves:
z
Isomerisation of paraffins
___________________
___________________
___________________
___________________
Description
The first step is hydrodesulfurisation of the naphtha feed. Then
the actual reforming process starts.
A typical flow diagram is presented in Figure 16.7. The reforming
process has three sections:
z
187
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Thermal Cracking
Thermal cracking is used for conversion of residues into more
useful products by cracking the large hydrocarbon molecules into
smaller ones, at a temperature level of 450-500C. The degree of
cracking can be controlled by controlling temperature and time of
reaction (residence time). Long chain paraffinic hydrocarbon
molecules break down into a number of smaller ones by rupture of
a carbon-to-carbon bond.
188
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Visbreaking
Visbreaking is a mild thermal cracking process. The objective is to
reduce the viscosities and pour points of vacuum distillation
bottoms to meet fuel oil specifications. Refinery production of
heavy oils can be reduced by 30% by Visbreaking. Visbreaker also
produces gas, gas oil stock and gasoline which go for further
processing.
The principal reactions which occur during the Visbreaking are:
z
rings
under
higher
Description
189
Notes
Coil Cracking
___________________
Soaker Cracking
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
190
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Description
The feedstock gets preheated by exchange of heat from outgoing
products and is partially vaporized in a specially designed coking
furnace. Mild cracking takes place in the furnace where thermal
cracking temperatures of 485 to 505C are reached. From the
furnace, the liquid-vapour mixture goes to one of the two coking
drums operating in batch. The vapours undergo cracking as they
pass through the coke drum. The heavy hydrocarbon liquid
trapped in the coke drum is subjected to successive cracking and
polymerization until it is converted to vapours and more coke.
The cracked products go to fractionation facilities downstream
where cracked gas, naphtha, kerosene and gas oil are separated.
The petroleum coke is formed in the drum due to high residence
time of cracking in the drum.
The feed stream is regularly switched between drums with one
operating and the other under decoking process. Decoking is done
using high pressure water jets. This generally follows a 12-16 hour
cycle.
191
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 16.10: Delayed Coking
___________________
___________________
Description
Catalytic Reactor and Regeneration systems followed by
Distillation to separate cracked products are the key steps. Hot
feed, together with some steam, is introduced at the bottom of the
reactor via distribution nozzles. Here it meets a stream of hot
regenerated catalyst from the regenerator flowing down the
inclined regenerator standpipe. The oil is heated and vaporized by
the hot catalyst. The cracking reactions take place at 500C. The
vapour, initially formed by vaporization and successively by
cracking, carries the catalyst up a riser in the reactor. At the outlet
of the riser the catalyst and hydrocarbons are separated. The
catalyst, partly deactivated by coke deposit and the vapour enter
the reactor. The vapour passes an overhead cyclone separator for
removal of entrained catalyst before it enters the fractionators for
product separation. The catalyst then descends into the stripper
where entrained hydrocarbons are removed by injection of steam.
___________________
192
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Hydrocracking
___________________
___________________
Hydrocracker Reactions
The main reactions in hydrocracking are:
z
Cracking
193
The reaction of
deoxygenation.
desulphurisation,
denitrogenation
Notes
___________________
and
Description
When the cracking and treating step is combined in one reactor,
the process is called a Single-Stage Process.
This simplest of the hydrocracker configuration finds application in
cases where only moderate degree of conversion (say 60% or less) is
required. The single stage process can also be used for full
conversion, but with a limited reduction in molecular weight. An
example is the production of middle distillates from heavy
distillate oils.
In a multi-stage Process, the cracking reaction mainly takes place
in an added reactor. There could be two stage or three stage
hydrocracker. These processes were developed to overcome the
limitations of single stage process the limitations of conversion as
well as catalyst poisoning by undesirable components. In the two
stage process, the undesirable compounds are removed from the
unconverted hydrocarbons in the first reactor. In the first reactor,
desulphurisation and denitrogenation occurs besides a limited
amount of hydrocracking. These are exothermic reactions. The
catalyst is arranged in a number of fixed beds. Reaction
temperatures are controlled by introducing part of the recycle gas
as a quench medium between beds. The liquid from the first
reactor is fractionated to remove the product made in the first
reactor.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
194
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
In this unit, the process units and utility/offsite facilities required
in a refinery was summarized. An overview of application of Linear
Programming techniques for refinery optimization was presented.
A generic description of typical refinery process was given
highlighting the basic system and equipment involved. This was
followed by description of some of the important processes used in
the refinery along with flow diagram.
Keywords
Specific Gravity of a Gas: It is defined as the weight of a given
volume of the gas compared to the weight of the same amount of
air at the same temperature and pressure, where air weight is
taken as reference (= 1).
Gas Sweetening: Removal of carbon dioxide and hydrogen sulfide
from gas is called gas sweetening.
Molecular sieves: These are zeolite granules manufactured under
controlled conditions to create microscopic pores at its surface.
195
Notes
1.
2.
3.
___________________
___________________
___________________
___________________
___________________
4.
5.
6.
7.
___________________
___________________
___________________
Further Readings
Books
Arthur J. Kidnay, William R. Parrish, Dan McCartney,
Fundamentals of Natural Gas Processing, Second Edition
Dominic C. Y. Foo, Mahmoud M. El-Halwagi, Raymond R. Tan,
Recent Advances in Sustainable Process Design and Optimization
Web Readings
en.wikipedia.org/wiki/Natural-gas_processing
www.linde-india.com/.../Natural%20Gas%20Processing %20Plants.
pd...
www.bv.com/Downloads/Resources/.../rsrc_ENR_Gas
Processing.pdf
ftp://ftp.eia.doe.gov/pub/oil_gas/...gas/.../ngprocess/ngprocess.pdf
___________________
___________________
196
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 17
Petrochemical Industry
Objectives
After completion of this unit, the students will be aware of the following
topics:
197
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Introduction
Petrochemicals are usually plastic products and chemicals that are
derived from petroleum or natural gas and are made on a large
scale. The petrochemical industry means manufacture, supply and
distribution of plastics, fibres and chemicals which are produced
from one of the petroleum products as starting material or
feedstock. Petroleum products from refinery and natural gas,
supply over 50% of the feedstock for the entire chemical industry
and more than 50% of organic chemicals.
The petrochemical industry can use other organic or inorganic
material as feedstock along with feedstock of petroleum origin. For
example polythene is made only with feedstock of petroleum origin
(naphtha or ethane as feedstock). But PVC, another petrochemical
product, besides having naphtha or ethane as feedstock, also uses
chlorine as another raw material in its manufacture.
It is amazing how much oil and gas has penetrated into our lives
today. Oil is not just petrol or diesel. The toothbrush we use to
start the day, the suit we wear, the fuel we use in our vehicles, the
car interiors, back home with cosy furniture, tapestry, and
mattress of the bed we sleep on - petrochemicals have got into our
lives everywhere.
Petrochemicals consume only a tiny fraction (5 to 6%) of the
worlds oil production to give high value products.
198
Notes
___________________
___________________
___________________
___________________
Polyester Clothing
Nylon Can
___________________
___________________
___________________
___________________
___________________
___________________
PVC Pipes
Acrylic Carpet
Fibers
Polyester
Polypropylene
Nylon
Polyurethane
Cellulose
Polyacrylonitrile
Polymerization Basics
Here we will talk about the basics of Polymerization.
199
Notes
___________________
___________________
___________________
___________________
___________________
AAAAAAA
___________________
AAAAAAA
B
___________________
___________________
Figure 17.2: Monomers and Polymers
___________________
___________________
CH3
CH3
CH3
CH3
Co-polymer
When a polymer is made by linking only one type of small
molecules or monomers together, it is called a homo-polymer.
When two different types of monomers are joined in the same
polymer chain, the polymer is called a co-polymer. Two monomers
A and B can join together in different manner to form co-polymers:
200
Alternating Co-polymer: A B A B A B A B A B
Notes
Activity
Find___________________
out using the Internet
which is the thinnest and
___________________
thickest
form of Polythene in
use ___________________
in our daily lives.
Random Co-polymer:
A B A A A B B A A A
Block Co-polymer:
A A A A A B B B B B
Graft Co-polymer:
A A A A A A A A A A
|
|
B
B
|
|
B
B
|
|
B
B
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Polythene
201
Notes
___________________
___________________
___________________
HDPE Container
and carry bag
PVC
Polyvinyl chloride is the plastic commonly known as PVC. It finds
wide applications in PVC pipes for transportation of water.
PVC is made from vinyl chloride as monomer. Vinyl chloride is a
copolymer of acetylene and chlorine. Acetylene is of petroleum
origin produced by cracking of ethane or naphtha.
PVC is useful because it resists two things:
z
It resists water
It resists fire
___________________
___________________
___________________
___________________
___________________
___________________
___________________
202
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Synthetic Rubber
In the middle of nineteenth century, scientists cracked natural
rubber molecules into oil, tar and a volatile compound which they
called spirit. The spirit molecule was identified as C5H8 and
named Isoprene.
Manufacture of Synthetic Rubbers is reverse process of above.
Synthetic rubbers are polymer products from monomers (e.g.
Isoprene) obtained from processing of feedstock from petroleum.
In 1960s, Bayer developed two types of synthetic rubber by
polymerizing Butadiene and named Buna:
z
203
TREAD OF TYRE:
made of random copolymers
of styrene and butadiene.
SIDE WALLS:
made of polyisoprene.
INNER LINER:
made of polyisobutylene.
Notes
___________________
___________________
___________________
___________________
___________________
Polyisoprene
___________________
___________________
___________________
___________________
Automobile Parts
Auto body parts are made of polymer like acrylonitrile-butadienestyrene plastic, called ABS.
___________________
204
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Dresses :polyester
205
Notes
Dresses: Polyester
Socks have same polymers like nylon (and cotton/cellulose) and
spandex a kind of polyurethane.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
206
Notes
___________________
___________________
Foam
Fast food often comes in boxes made of polystyrene foam.
Napkins are made of paper, which is a form of a polymer called
cellulose.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Polypropylene
Polypropylene as the name suggests is a polymer of propylene.
Propylene is made by cracking petrochemical feedstock like
propane, butane or naphtha. The usefulness of propylene comes
from its ability to stand rain and humidity.
It is used for carpeting indoor and outdoor, making containers,
water pipes, stationary and file covers.
Polymethyl Methacrylate
z
207
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Capsule Tray
and
Capsules
___________________
208
Notes
Activity
Give
some examples of waste
___________________
from manipulated Polymers
___________________
being
reclaimed
and
remolded.
___________________
___________________
___________________
Capsule shell
Disposable syringes
___________________
___________________
___________________
___________________
___________________
Types of Plastics
Now having identified plastic materials let us look at broad
classification based on its thermal (transformation by heat or
moulding) properties:
Thermoplastics
Organic long chain polymers that can be soft when heated are
suitable for moulding. As explained earlier, the polymers can have
different properties and application by manipulating molecular
weight. Typical examples below are of polythene (also called
polyethylene):
z
Thermosetting Resins
Plastics of these types undergo changes during processing such
that they can not be softened and remolded. Hence it is difficult to
reclaim such plastics. Examples of this type are:
209
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
It is amazing how much oil and gas has penetrated into our lives
today. Oil is not just petrol or diesel. The toothbrush we use to
start the day, the suit we wear, the fuel we use in our vehicles, the
car interiors, back home with cosy furniture, tapestry, and
mattress of the bed we sleep on - petrochemicals have got into our
lives everywhere.
Keywords
Petrochemicals: They are usually plastic products and chemicals
that are derived from petroleum or natural gas and are made on a
large scale.
Monomers: They are organic molecules with double or triple bond
which have a tendency to join together several times to form a
large molecule.
Propylene: It is made by cracking petrochemical feedstock like
propane, butane or naphtha.
___________________
___________________
210
Notes
1.
2.
___________________
3.
___________________
4.
___________________
___________________
___________________
___________________
Further Readings
___________________
Books
___________________
___________________
___________________
Web Readings
en.wikipedia.org/wiki/Natural-gas_processing
www.linde-india.com/.../Natural%20Gas%20Processing%20Plants.
pd...
www.bv.com/Downloads/Resources/.../rsrc_ENR_Gas
Processing.pdf
ftp://ftp.eia.doe.gov/pub/oil_gas/...gas/.../ngprocess/ngprocess.pdf
We
Unit 18
Production of Petrochemicals
Objectives
After completion of this unit, the students will be aware of the following
topics:
211
Notes
___________________
___________________
___________________
___________________
___________________
Petrochemicals
___________________
___________________
___________________
___________________
___________________
Introduction
This unit summarizes various feedstock of petroleum origin,
intermediate step of processing the feedstock and the end product.
This is further elaborated in the form of a macro-level diagram of
the whole petrochemical industry.
212
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Styrene which
manufacturing.
is
important
in
rubber
and
plastic
213
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 18.2: Natural Gas to Petrochemicals
214
Notes
Activity
Show
the chemical reactions
___________________
taking
place
in
steam
___________________
processing
when natural gas,
methane or naphtha is taken
___________________
as feedstock and synthesis
gas ___________________
(CO+H2) is produced.
___________________
___________________
___________________
___________________
___________________
___________________
produce BTX (Benzene, Toluene and Xylenes). The BTX forms the
intermediate product to manufacture synthetic fibres.
215
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Steam Reforming
Takes natural gas, methane or naphtha as feedstock and produces
synthesis gas (CO+H2), which become precursors to urea fertilizers
and other petrochemical products. Methanol is an intermediate
product from which other petrochemical products like
formaldehyde and acetic acid are manufactured.
The next section describes how the base chemicals lead to
products.
216
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Drying
Effect of Feedstock
The effect of feedstock on the yields of intermediates is shown in
Table 18.2. As stated earlier, naphtha and gas oil yield a wider
range of intermediates including aromatics compared to ethane.
217
Notes
Activity
Find___________________
out what the components
of urea fertilizer are, with the
help___________________
of the Internet.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Steam Reforming
Methane or naphtha is steam reformed to produce synthesis gas,
which is essentially a mixture of carbon monoxide, hydrogen and
carbon dioxide. CO and H2 form the basic material from which urea
fertilizer and methanol are made.
Natural gas is first treated to remove traces of H2S. Then, a
mixture of purified natural gas and steam is superheated to 850C
in a furnace (reformer), where it is converted to synthesis gas
consisting of hydrogen, carbon monoxide and carbon dioxide.
The reactions involved in steam reforming are:
z
CO + H2O = CO2 + H2
218
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
0.1 ppm.
z
CO + 2H2 = CH3OH
219
Flue Gas
Notes
Activity
CH4
Natural Gas
Reformer
H2O
Steam
CO+H3
CO+H
2
2
Synthesis Gas
To Burner
To hydrogen
consumer
Find___________________
out
what
the
comsumption of BTX in India
is. ___________________
___________________
Methanol
Converter
H2
Methanol
___________________
Purge Gas
CHOH/HO
3
2
Methanol/Water
___________________
Distillation
___________________
___________________
Water
___________________
Figure 18.6: Methanol from Synthesis Gas
Aromatics Production
Key Aromatic Intermediates
As described earlier the main products are benzene, toluene and
xylenes (BTX), which go as feedstock for manufacture of synthetic
fibres like nylon, polyesters, etc.
___________________
___________________
220
Notes
___________________
Pyrolysis gasoline comes from the steam cracking of naphtha for the
production of ethylene, propene and higher olefins. As indicated in
Table 18.3, pyrolysis gasoline is quite rich in aromatics.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
221
Notes
Activity
Give
another example of a
___________________
derivative chemical formed
from___________________
its base petrochemical.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
222
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Polymerization
Polymerization is the final step in getting commercial grade
plastics or fibres. Polymerization processes are carried out in the
presence of a catalyst. There are various techniques of initiating
and controlling the polymerization reaction. Polymerization could
be in vapour phase or liquid phase or with suspension of catalysts
in a liquid medium. The operating temperatures and pressures
vary widely from process to process.
Generally the reaction is highly exothermic. Hence removal of heat
during the reaction is important in controlling the reaction.
Polymers are formed as granules in the reactor. They are
separated, dried and finally packed as bulk product.
Polythene Production
Ethylene is fed to the reactor bed reactor where polymerization
occurs. The temperature is controlled by circulation of the contents
of the reactor through a cooler. The polyethylene are withdrawn
from the reactor, and treated to stop residual catalyst activity.
Depending on the requirement of the polyethylene grade and end
product application, the polyethylene is either conveyed to the
extruder systems where additives are combined to produce natural
pelletised grades or to the compounding facility, where the product
is combined with dedicated colour master batches to form fully
formulated compounds.
The resins are then dried, homogenized and bagged for delivery.
223
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 18.10: Processing for End Products
___________________
___________________
___________________
224
Notes
___________________
Oxygen
___________________
Ethylene
Chlorine
EDC Recycle
Oxychlorination
EDC Purification
EDC Cracking
VCM
Direct Chlorination
By Product
___________________
Water
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
In this unit, an overview of the processing steps in the
petrochemical industry was presented with macro-level block
diagram, defining the feedstock and the final products. The steps
were further elaborated for each of the major feedstock like
naphtha and ethane.
The primary petrochemical units like steam cracker, steam
reforming and aromatics unit were described with flow diagram.
Keywords
Petrochemical Industry: Means manufacture, supply and
distribution of plastics, fibres and chemicals which are produced
from one of the petroleum products as starting material or
feedstock.
PVC: Polyvinyl chloride is the plastic commonly known as PVC. It
finds wide applications in PVC pipes for transportation of water.
Polyethylene terepthalate (PET): They are glass like material
used to make transparent bottles.
2.
3.
4.
5.
6.
8.
225
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
226
Notes
9.
Describe thermoplastic
examples.
and
thermosetting
resins
with
___________________
___________________
Further Readings
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Books
Albert V. Hahn, Roger Williams, Herman Zabel, The
petrochemical industry: market and economics, Technology &
Engineering, 1970
Alain Chauvel, Gilles Lefebvre, 1989, Petrochemical Processes:
Major Oxygenated, Chlorinated and Nitrated
Klaus Weissermel,
chemistry, Science
Hans-Jrgen
Arpe,
Industrial
organic
Web Readings
en.wikipedia.org/wiki/Petrochemical
www.cci.in/pdf/surveys.../chemical-petrochemical-industry.pdf
www.chemtech-online.com/.../01/indian-petrochemicalindustry.php
info.shine.com Industry Information
Unit 19
Transportation of Oil, Gas and
Products: Pipelines
227
Notes
___________________
___________________
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics:
___________________
___________________
___________________
___________________
___________________
Introduction
Hydrocarbons need to be transported from the place where it is
produced, to the different users. This unit talks about the different
forms of transportation of such Hydrocarbons through pipelines.
Modes of Transportation
Hydrocarbons, liquid or gas can be transported from the source of
generation to the bulk user in different ways depending on the
location of the source and the user; whether they are located at
land or sea, the distance and terrain between the two and the
quantity to be transported.
Bulk transportation is done by:
Pipeline
Marine Tankers and Barges
Road and Railway Tankers Pipeline
Pipeline is used for transportation on land (onshore pipeline) and
also along the bed of sea (subsea or offshore pipeline), up to a few
hundred meters of water depth. For bulk movement of hydrocarbon,
pipeline is often the most economical way of transportation. Long
distance pipeline is also termed as cross country pipeline, since the
pipeline crosses through several hundred kilometres of land across
the country or covering a number of countries. Land based pipeline
228
Notes
___________________
___________________
___________________
Marine tankers and barges are used for bulk supply across the sea,
where for some reason transport by subsea pipeline is either not
economical (e.g. due to depth of sea) or technically or politically not
feasible. Supply of the cargo is effected in batches and not continuous.
___________________
___________________
___________________
___________________
___________________
Road and railway tankers are used for transport where the bulk
quantity of the cargo is comparatively less, transport is on land
and the distances are also comparatively less.
___________________
___________________
229
Notes
Activity
Find___________________
out using the Internet
which are the Major Gas
___________________
pipelines
in India.
___________________
___________________
Pipeline Systems
Pipeline is the most preferred option to transport oil, gas or
products in bulk. It could be thousands of km long, branched and
networked.
Configuration of both oil and gas pipeline are very similar. A cross
country oil or gas pipeline system normally starts with pumping of
oil or compression of gas to develop the requisite pressure to travel
a long distance. The pressure required for pumping of oil or
compression of gas depends on pipeline length, pipe diameter, and
destination pressure requirements. For long pipelines (hundreds of
km), booster compressors for gas pipeline and booster pumps for oil
pipeline are required along the length.
Gas or oil (or any other liquid being transported) is distributed
along the length to many customers. Normally the following
minimum processing facilities are required upstream at the
oilfield, which has been described earlier:
Separation of oil, condensate and free water
Compression of gas, if necessary to deliver at required
pressure at shore
Pumping of oil
Dehydration of gas to protect the pipeline from corrosion
Sweetening, if necessary, to remove H2S
Metering
Corrosion inhibitor injection
___________________
___________________
___________________
___________________
___________________
___________________
230
Notes
___________________
___________________
Pig Launcher.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
231
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
232
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 19.4 also shows a tanker being loaded with the oil produced
in the platform. For this a floating manifold called SPM (Single
Point Mooring) is utilized. A more detailed picture of an SPM is
given in Figure 19.5.
It essentially is a floating manifold in a buoy, connected by flexible
hose to the PLEM, and permanently anchored in the seabed. An oil
tanker can be anchored near the SPM, get connected to the
manifold at the SPM and receive the oil through the PLEM.
SPM (also known by various trade names like SBM i.e. Single
Buoy Mooring) can also be used to unload from a tanker and take
233
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
234
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Along with the meter to measure the quantity of oil or gas being
transferred, there has to be an instrument for online measurement
of quality. For example, for oil it is important to measure water
content. Also temperature and pressure need to be measured for
volume standardization.
For gas, the temperature and pressure are measured to quantify
the gas under standard conditions. The composition is measured
online for the quality of gas in terms of calorific value and
contaminants.
235
Notes
___________________
___________________
___________________
___________________
___________________
___________________
Figure 19.7: Oil Storage and Pumping
___________________
Filter/Coalescer
___________________
In gas pipelines, Gas Filter Coalescer is used for the cleaning of the
arriving gas from dust particles and for removal of any entrained
liquid from the gas. Normally, there will be two filters arranged in
parallel in the system one in operation and the other in standby
condition.
___________________
___________________
236
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
sites on the body of the pipeline. Anodic and cathodic sites form for
many reasons:
237
Notes
___________________
Localized stresses
___________________
___________________
___________________
___________________
___________________
Pipeline Coating
All buried pipelines are coated externally (Figure 19.9) by a
suitable anti-corrosion coating, supplemented by cathodic
protection which covers any damaged or deteriorated area of the
coating. For each specific pipeline system the selection of the
coating material is based on the specific corrosion problems to be
encountered. Coating material used for the external protection of
oil and gas transmission pipeline systems are:
Hot applied asphalt or coaltar enamels
Polyethylene coatings (PE)
Fusion bonded epoxy coatings (FBE)
Plastic tape wrappings
Asphalt mastic coatings
Cold applied epoxy coal tar coatings.
___________________
___________________
___________________
___________________
238
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
239
Notes
Activity
Using
the Internet, find out
___________________
more about Right of Way
___________________
(ROW).
___________________
___________________
SCADA is also used for Leak Detection along with flow modelling
software. Dynamic Fluid Dynamic models for pipeline flow of oil
and gas can monitor the flow measurements at various locations in
the pipeline, match them with the supply volumes and consumer
withdrawals and predict leakages and approximate location of the
leakage.
___________________
___________________
___________________
___________________
___________________
___________________
240
Notes
like any other industry, there are certain special aspects that need
to be taken care of in a pipeline project.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Hydraulic Design
In order to determine the possible range of operational parameters
of the pipeline, a hydraulic analysis should be performed.
For a given pipe size, fluid properties and flow rate, the hydraulic
analysis should provide the pressure and temperature profiles all
along the pipeline for steady state and transient conditions.
Full account should be taken of possible changes in flow rates and
operational modes, over the complete operational life of the
pipeline.
The hydraulic analysis should provide information on: surge
pressure during shutdown of a liquid line, turn-down limitations
and inhibition or insulation requirements to prevent wax or
hydrates deposition, effect of flow conditions on the efficiency of
corrosion inhibitors, liquid hold-up and slug control requirements
at the downstream end of two phase lines.
Three most important end results of design are:
Material of pipeline
Diameter of the pipeline
Wall thickness
241
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
242
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Wall Thickness
Wall thickness of the linepipe depends on the strength of pipe
material and the internal pressure of the fluid inside the pipeline.
Pipeline Risks
The most common pipeline threats which may lead to the loss of
technical integrity are given below:
___________________
___________________
Internal erosion.
___________________
Pipeline Routing
The selection of the route is done by taking full account of the
associated risks, particularly safety and environmental risks, the
243
Notes
Pipeline Construction
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
244
Notes
___________________
___________________
___________________
___________________
___________________
___________________
Site Preparation
___________________
The route is cleared of trees and plant life, the topsoil removed and
all material stockpiled for re-instatement (clear and grade). Pipe is
delivered by truck and laid along the route (see Figure 19.13 and
Figure 19.14).
___________________
___________________
___________________
Coating of Pipeline
Exterior of pipes is generally coated at the shop or site. But at the
time of stringing coating may be partly damaged. The coating is
repaired and welded joints are freshly coated for corrosion
protection.
Stringing
The pipelines themselves are fabricated from 12 metre pipe
lengths. They are then welded into 250 metre lengths, known as
strings. The pipe is then lowered into the trench. Backfill material
is added beneath and around the pipe to secure it in place.
When the pipe is covered to a depth of at least one meter,
restoration of the area begins.
If necessary, the pipe is bent to follow the natural contour of the
land. Welds are stringently tested to ensure their integrity. This is
done while laying the pipeline in a string (see Figure 19.14).
2.
245
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
246
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
247
Notes
___________________
___________________
___________________
___________________
surveillance
of
lines in
where
densely
___________________
___________________
___________________
___________________
___________________
___________________
248
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
In this unit, the various modes for bulk transportation of
hydrocarbon resources were described at the beginning. This was
249
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Keywords
SCADA: It is a central monitoring system, which monitors the
entire pipeline parameters over several hundred kilometres by
telemetry and telecontrol.
Pipeline End Manifold(PLEM): It is essentially a set of valves
and flanges along with pipe header supported by steel structure,
from where the pipeline carrying oil, gas or any other material
starts.
Pig: A pig is a cylindrical or spherical in shape, made of metal or
plastic with or without brushes at the edge and having diameter
close to the pipe diameter.
Pigging: It is primarily the processes or activities of sending a Pig
through a pipeline.
different
modes
of
transportation
of
2.
250
Notes
___________________
3.
4.
___________________
(a) SCADA
___________________
(b) PLEM
___________________
(b) SPM
___________________
5.
___________________
6.
___________________
___________________
Further Readings
___________________
Books
___________________
Web Readings
www.hoovers.com Hoover's Directories Industry Overviews
www.youtube.com/watch?v=AuvvaZrUDe4
reaccess.epu.ntua.gr/LinkClick.aspx?fileticket... tabid=579&mid
www.careersinoilandgas.com ... Occupational Summaries
Unit 20
Case Studies
Objectives
After analyzing these cases, the student will have an appreciation of the
concept of topics studied in this Block.
251
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
252
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
253
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
BLOCK-V
Detailed Contents
254
Notes
UNIT
21: TRANSPORTATION OF OIL, GAS AND
___________________
PRODUCTS: OTHER MODES
___________________
Introduction
Introduction
___________________
Transportation by Marine Tankers
___________________
Road and Railway Transportation
IT Application in Operation
___________________
UNIT 22: HEALTH, SAFETY AND ENVIRONMENT
z
___________________
Introduction
___________________
Hazards Definitions, Causes and Types
___________________
Chemical Hazards
___________________
Safety Management Techniques in Plant Life Cycle
Introduction
Unit 21
Transportation of Oil, Gas and
Products: Other Modes
255
Notes
Activity
Name
one Indian Crude
___________________
Carrier
and
one
Clean
___________________
products carrier with the help
of the Internet.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics:
___________________
___________________
___________________
___________________
___________________
Introduction
In the earlier unit, you learnt about transportation of Oil and Gas
through pipelines. In this unit, you will learn about transportation
through Marine Tankers and by Road and Rail transport.
256
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
257
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
258
Notes
Activity
Make
a presentation on Road
___________________
Transportation of Oil and Gas.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
A flow meter
259
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
260
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Railway Tankers
The railway tankers are similar in design as road tankers except
that several rakes together form one train. Hence loading or
unloading facility should have several loading arms or unloading
arms in a row along the railway line inside the battery limit of the
plant or storage terminal.
261
Notes
___________________
___________________
___________________
___________________
___________________
___________________
Figure 21.7 (b): Railway Tanker
___________________
___________________
___________________
___________________
262
Notes
Activity
Create
models of different
___________________
liquid storage tanks.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
are
available
at
Rectangular Tanks
The rectangular tanks are the simplest tank for atmospheric
pressure service of non-hazardous liquids like water.
263
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
264
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
The same gases mentioned above are also stored in liquefied form.
Choice of type of storage is a matter of economic evaluation. As a
thumb rule, larger the storage requirement, more economic is the
liquefied storage.
As described in Gas Processing, LNG is transported and stored in
liquid form at below 160C. LNG storage is made of special Nickel
alloy to withstand such low temperatures where most metals
become brittle. Also special insulation and safety features put into
an LNG tank makes it very expensive.
Liquefied gas storages are often buried under the ground with just
the roof protruding out of the earth for safety reasons. Such buried
storages are called mounded tanks. Many operating companies
have preference for mounded tanks for liquefied gas storage.
265
Notes
___________________
___________________
___________________
___________________
Figure 21.11: Storages and Storage Terminals
___________________
___________________
___________________
___________________
___________________
___________________
Summary
The unit included description of transportation system by marine
tankers and brief description of road and railway wagon as means
of transportation.
Also, the various types of storages used for petroleum and
products, both liquid and gas were described.
Keywords
SCADA: Supervisory Control and Data Acquisition
Bottom Loading: In bottom loading the product is loaded by
connecting the loading arm/hose to a dedicated self-sealing
coupling at the bottom of the vehicle.
Cone Roof Tanks: These types of tanks are very widely used for
storing oil, products and chemicals at atmospheric pressures.
marine
tankers
used
for
266
Notes
___________________
___________________
___________________
2.
3.
Further Readings
___________________
Books
___________________
___________________
___________________
___________________
___________________
___________________
Web Readings
www.hoovers.com Hoover's Directories Industry Overviews
www.youtube.com/watch?v=AuvvaZrUDe4
reaccess.epu.ntua.gr/LinkClick.aspx?fileticket... tabid=579&mid
www.careersinoilandgas.com ... Occupational Summaries
Unit 22
Health, Safety and Environment
Objectives
After completion of this unit, the students will be aware of the following
topics:
267
Notes
Activity
Make
a presentation on the
___________________
different kinds of hazards in
___________________
Hydrocarbon
processing.
___________________
___________________
___________________
___________________
___________________
Causes of accident
___________________
___________________
___________________
Introduction
Hydrocarbon (oil and gas) and petrochemical products pose hazard
to the environment if not handled in a safe manner. Health, safety
and environment considerations start from conceptual stage of a
project to operation and abandonment stage.
Oil and gas are highly flammable material that can cause
explosion if not handled properly. Also a lot of toxic chemicals are
handled during processing, particularly in the downstream
facilities.
That is why a lot of importance is given today on learning and
implementing methods to take care of Health, Safety and
Environment (HSE) all over the hydrocarbon industry. HSE norms
and practices are followed at every stage of the plant life cycle. A
lot of investment in hardware and services is essential today to
take care of HSE.
268
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
269
Notes
___________________
___________________
___________________
___________________
Figure 22.1: Refinery Tank Fire
___________________
___________________
___________________
___________________
___________________
___________________
270
Chemical Hazards
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
271
Notes
___________________
___________________
___________________
___________________
___________________
Causes of Accidents
The various causes of accidents are:
Defect in Design
Defect in Construction
Defect in Material of Equipment
Faulty Operation or Maintenance
Lack of Monitoring
___________________
___________________
___________________
___________________
___________________
272
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
273
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
274
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
can
the
fire
fire
275
Notes
Activity
Using
the Internet, find out
___________________
more about ALARP.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
276
Notes
___________________
___________________
___________________
___________________
___________________
Concept Development
___________________
It is during this phase that most of the major hazards and effects
will be identified and an initial assessment of their importance will
take place. In this phase there is considerable scope for removing
potential hazards. As an example, even site selection is important
for HSE.
___________________
___________________
___________________
___________________
277
Notes
___________________
___________________
___________________
___________________
___________________
___________________
The tragedy at Bhopal due to toxic gas leakage from Union Carbide
plant is an example of tragedy due to faulty site selection for a
plant handling lethal chemicals.
___________________
___________________
What is HAZID?
HAZID (HAZard IDentification) is a technique for early
identification of potential hazards and threats. The technique has
two styles, Conceptual and Detailed and should be applied at the
very outset of a new venture or during the early stages of the
project. It is therefore likely to be the first formal HSE related
study for any new project. The major benefit of HAZID is that early
identification and assessment of the critical HSE hazards provides
essential input to project development decisions. This will lead to
safer and more cost-effective design options being adopted with a
minimum cost of change penalty.
HAZID study addresses the layout and operation of the entire
system under review. A HAZID study uses a guideword driven
methodology based on a comprehensive list of typical hazards. The
installation or subject of review is divided into areas of a similar
nature (e.g. process area, utilities) based on the location of these
areas and their function. The broad nature of the guide words help
in the identification of the hazard. For each identified hazard the
potential consequences are described and the control/mitigation
measures are listed.
___________________
___________________
278
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Detailed HAZID
The detailed study is conducted later in the engineering design
process, once design options have been identified but before any
final decisions have been made. A significant number of additional
documents and drawings will be available. The additional
documents would include, for each design option, preliminary
issues of:
Process Flow Schemes (PFS) with possibly Process
Engineering Flow Schemes (PEFS) at block diagram level with
mass balance information (for each competing design option)
279
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Safety philosophy
Operating philosophy
Raw material and product handling
Environmental assessment
280
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
They show outcomes in all possible situations and tell how likely
they are to occur. What this means for the decision makers is that
they finally have, if not perfect information, the most complete
picture possible. They could see what could happen, how likely it is
to happen, and therefore be able to judge accordingly which risks
to take and which ones to avoid. Design need to be modified as per
outcome of the process (Figure 22.5).
The essential features of a HAZOP study are:
It is systematic and detailed. A series of guide words is
repeatedly used to ensure consistency and repeatability.
It is conducted by a team who know most about the project or
facility, typically those who designed and those who must
operate it.
It concentrates on exploring the consequences of deviations
from the usual operating conditions.
It is an audit of the completed part of a design.
Traditionally the HAZOP procedure examines process equipment
on a system by system basis, reviewing the process parameters
using a checklist of guide words, which suggest deviations from the
normal operating conditions.
have
cropped
up
during
281
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
282
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Construction Safety
___________________
___________________
___________________
283
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
284
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
training,
and
Environmental Aspects
The environmental aspects can be stated as follows:
285
Notes
___________________
Sources of Pollution
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
286
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
processing
scheme
to
reduce
pollutant
287
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
288
Notes
___________________
___________________
___________________
One of the biggest pollution hazards facing the world today is oil
spill from large oil tankers carrying crude oil. Oil spillage occurs
when the ship leaks due to crashing in a reef or rock, any other
type of accident with the ship. Leakage can also occur during
loading/unloading and normal movement of the ship.
___________________
___________________
There are two stages of dealing with an oil spill containment and
recovery.
___________________
___________________
___________________
___________________
___________________
Wastes from refinery include free and emulsified oil from leaks,
spills, waste caustic, caustic and acid sludge, tank bottom sludge,
acid water, waste catalyst etc.
Crude oil storage tanks also are a large contributor to refinery waste.
It includes oily water, organic sulfur compounds, suspended matter,
insoluble and soluble salts, asphaltic compounds, H2S and Co2.
Most of the refinery waste come into the drainage headers along
with the waste water in various parts of the refinery and are
collected for treatment in the effluent treatment plant.
Petrochemical plant wastes are more complex due to wide range of
raw materials, intermediate chemicals and products. The design of
the Effluent Treatment Plant has to tailor made to suit the
effluent characteristics and discharge specifications. Wide range of
effluent processes are available to treat different types of effluents.
289
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
290
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
Health, Safety and Environment aspects have gained tremendous
291
Notes
importance in the entire plant life cycle. A plant can be made safe
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Keywords
Hazards: These are defined as having the potential to cause
harm, including ill health and injury, damage to property, products
or the environment, production losses or increased liabilities.
Threats: These are possible causes that could potentially release
the hazard and produce an incident.
Incidents: These are defined as an unplanned event or chain of
events, which have caused or could have caused injury, illness and
or damage (loss), to assets, the environment, or third parties.
Benzene: Benzene is an aromatic hydrocarbon, which can be
present in very low concentrations in some crude oils.
HAZID (HAZard IDentification): It is a technique for early
identification of potential hazards and threats.
___________________
292
Notes
___________________
1.
2.
3.
Name two very toxic chemicals that oil and gas processing
industry has to handle and identify with block diagram at
what stages of processing there are likelihood of hazard from
these chemicals.
4.
5.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Further Readings
Books
Fundamentals of Oil & Gas Accounting, Charlotte J. Wright,
Rebecca A. Gallun Business & Economics 2008
Introduction to the Global Oil & Gas Business, Samuel Van Vactor
Business & Economics
Oil and gas production in non-technical language, Martin
Raymond, William L. Leffler Technology & Engineering 2005
Web Readings
ww.api.org/ehs/
www.touchoilandgas.com/health-safety-c7.html
www.ogp.org.uk/pubs/254.pdf
www.ogj.com/blogs/health-safety-and-environmental.html
Unit 23
IT Applications in Hydrocarbon
Industry
293
Notes
___________________
___________________
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics:
___________________
___________________
___________________
___________________
___________________
Introduction
Like most of the other industries, the hydrocarbon industry is also
facing the pressure and challenges from expanding global
competition. Further, there have been huge investments and
expenditure arising out of the stringent environment and pollution
regulatory controls and greater concerns for safety. This is driving
the hydrocarbon industry towards more consistent higher quality
products involving stricter requirements on the traditional plant
operation.
294
Notes
Activity
Make
a presentation on
___________________
FEED.
___________________
___________________
___________________
management
and
overall
management
skills.
___________________
___________________
industry.
___________________
___________________
___________________
___________________
295
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 23.1: IT Application during Plant Life Cycle
Feasibility Study
296
Notes
___________________
___________________
Major equipment cost forms the base cost for various types of
estimates. For feasibility study estimates, other cost heads are
often factored. It estimates cost of erection, piping,
instrumentation, electrical items, civil etc. by adding a series
of factors over the equipment cost. Inflation indices are
introduced.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
297
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
298
Notes
Activity
Write
a report on Autocad
___________________
Software.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
299
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
300
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
tools (software).
___________________
The
___________________
___________________
drawings
were
generally
done
earlier
using
Saving in time
301
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
IT Application in Operation
Nowadays computer and software application are extensively used
for operation, control and monitoring of a process plant.
302
Notes
___________________
___________________
___________________
___________________
___________________
Management functions.
___________________
___________________
___________________
___________________
___________________
For optimum and safe operation of the plant many of the above
parameters need to be monitored and controlled.
Equipment
health
parameters
temperature, corrosion status)
(vibration,
bearing
303
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Notes:
APC: Advance Process Control
DCS / DDCS: Distributed Control System / Digital Distributed Control System
Measuring and
despatched,
monitoring
the
material
received
and
304
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
For monitoring and control of facilities laid over long distances and
integrated together (e.g. pipeline) SCADA system was developed.
Enterprise Resource Planning software (ERP) now sits above DCS
and other software for overall planning and asset management.
Description of some of these IT applications is given below.
Processing
of
data
for
higher
purposes
(optimization,
305
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
DCS distributes its functions into smaller sets of semiautonomous sub-systems covering specific process or
geographic areas of the plant complex.
The functions generally are:
2.
3.
Data Collection
Process Control
Information
application
exchanges
with
business
and
logistics
306
Notes
___________________
___________________
___________________
unifying
the
semi-
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Figure 23.8: Monitor Imprint from Control Room
Operating conditions
Price of products.
Training Simulators
Plant operating personnel need to know how the plant will operate
during a variety of conditions. They can either gain that experience
by actually putting the plant into that condition, or they can
simulate the operation using training simulators. Using software,
an operator can safely simulate the operation of the process system
in these infrequent or potentially dangerous system-operating
conditions. Thus a plant operator gains experience in system
operation without affecting the operation of the physical plant.
The program allows the operator to determine optimum product
distributions based on current economic conditions, calculate new
control set points to achieve optimum performance, carry out
studies and determine where problems are occurring and why.
SCADA System
SCADA stands for Supervisory Control and Data Acquisition. It
refers to the combination of the fields of telemetry and data
acquisition. It is extensively used in facilities covering very large
area (e.g. cross country pipeline or a complex of offshore platforms)
monitoring, control, operations, maintenance and management.
SCADA encompasses the following:
z
307
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
308
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Flow measurement
Meter proving
Batch tracking
Pig tracking
Predictive module
Transmission
of
control
commands
and
configuration
309
Notes
Activity
Make
a presentation on the
___________________
different
Maintenance
___________________
Management
Software
available.
___________________
___________________
___________________
the
different
Maintenance
___________________
Management
___________________
___________________
___________________
___________________
310
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
311
Notes
Activity
What is ERP?
Earlier, most of the large process plant complex used to maintain
independent information centre/databank for individual functions
like Planning, Operation, Maintenance Management, Finance and
Marketing. However, now software programs integrate
information from those activities. But modern Enterprise Resource
Planning software (ERP) combines information, data and reports
from all departments together into a single, integrated software
program with a single data base, from which all can share
information and communicate with each other.
Members of staff of different departments see the same
information and can update it. Accountability, responsibility and
communication are the major benefit of the ERP.
In short, ERP consists of the following modules:
z
Asset Management,
Controlling,
Financial Accounting,
Human Resources,
Plant Maintenance,
Production Planning,
Project System,
Quality Management,
Materials Management,
312
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Project Management
Discussion on IT application is incomplete without mention of
project management software like Primavera, MS Project etc. Such
software are extensively used to meet specific objectives to make
the project on time, within budgeted cost and meeting quality.
Such software have both text and graphic interfaces to carry out
functions like:
z
Resource Management
313
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Summary
This unit gave a complete overview of IT application in the
hydrocarbon industry. The entire operation in a project life cycle
from conceptualization of the project to the project feasibility
study, design, construction, operation, maintenance and
management has extensive application of IT.
The project life cycle and application of IT in various phases of
plant life was at first identified. This was followed by description of
software application in each of the above phases. Examples of IT
application in design, operation and maintenance were explained
314
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Keywords
SCADA: It stands for Supervisory Control and Data Acquisition. It
refers to the combination of the fields of telemetry and data
acquisition.
Computerized Maintenance Management System (CMMS):
CMMS integrates routine maintenance, preventive maintenance,
work orders, inventory and purchasing in an intuitive interface.
Enterprise Resource Planning-software (ERP): It combines
information, data and reports from all departments together into a
single, integrated software program with a single data base, from
which all can share information and communicate with each other.
2.
3.
PFD
(d) DCSAPC
(e)
SCADA
(f)
FEED
(g) DFRDPR
4.
5.
315
Notes
___________________
___________________
___________________
___________________
___________________
Further Readings
___________________
Books
___________________
___________________
concepts,
Web Readings
www.geosocindia.org/Goldenjubilee/lucknowseminar.pdf
vinci.celuga.net/images/contenu/documents/Rock%20Eval% 206.pdf
___________________
___________________
316
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Unit 24
Economics and Technology
Trends
317
Notes
Activity
Make
a presentation on
___________________
FEED.
___________________
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics:
___________________
___________________
___________________
___________________
___________________
Introduction
Oil and natural gas dominate as main source of energy due to low
cost and ease of handling compared to other commercially viable
energy sources.
Coal is cheaper as raw material but more difficult to transport.
Coal has lower calorific value, lower efficiency of combustion and
greater environment pollution problem.
Technology of non-conventional sources of energy like solar energy,
wind energy, ocean energy or fuel cells are getting more attractive
but still a far cry for bulk production. At currently prevailing
prices of oil and gas, any major shift towards other sources of
energy is not expected in the near future.
Between oil and natural gas, the latter is cleaner and more
efficient fuel. But it is difficult to transport, difficult to store and to
fill in automobiles. Till now gas played second fiddle to oil as a
resource. Natural gas being a clean and efficient fuel and due to
improvements in the economics of liquefaction and re-gasification
technology, natural gas is gradually increasing its share in the
world energy supply.
Price fluctuation, competitiveness and changing business cycles
are characteristics of hydrocarbon industry. The huge turnovers
often in billions of dollars by major players and large profits during
318
Notes
Activity
Make
a presentation on the
___________________
International
Gas
price
___________________
scenario.
___________________
___________________
___________________
___________________
___________________
___________________
more
___________________
___________________
expensive
like
than
Qatar,
oil.
Improvements
Indonesia
and
in
elsewhere,
economics
of
substantially
319
Notes
___________________
___________________
In the early nineties, the price of LNG has been high compared to
___________________
the price of gas in the United States. Costs of delivery were around
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$2.50 to 3.00 per MMBTU (not including the netback price to the
owner
of
the
stranded
gas
reserves).
Assuming
US$
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cost basis.
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natural gas pricing yielding parity with residual fuel at the burner
tip, and the price at Henry Hub adjusting to whatever is necessary
to achieve burner-tip parity. Since a barrel of residual fuel has an
energy content of 6.287 BTU, and historically residual fuel is
priced at 95% of WTI, the burner tip parity rule would suggest that
a $50 price per barrel of WTI would result in a $7.06 per million
BTU price for natural gas.
In addition to the above three rules for describing the correlation
between oil and natural gas prices, Brown and Yucel also discuss
other factors that impact the oil-gas price relationship. One little
discussed influence on U.S. natural gas prices is the worldwide
price of petrochemical products. The authors point out that since
the U.S. petrochemical industry relies heavily on natural gas as a
feedstock, while a significant portion of the international
petrochemical industry uses oil as a feedstock in its manufacturing
processes, a pricing arbitrage exists during periods of low gas
prices in the U.S. Therefore, should U.S. natural gas prices
remain below their historical norms for an extended period,
petrochemical imports into the U.S. will decline and domestic
manufacturing will expand and increase demand for natural gas.
Another factor influencing the oil to gas price relationship in the
U.S. is the price of Liquefied Natural Gas (LNG). With an
increasing percentage of the world LNG pricing linked to world oil
prices (exporters are now demanding oil linked pricing), LNG
imports into the U.S. will remain at very depressed levels unless
natural gas prices rise substantially. Imports into the U.S. are
currently approximately 1 billion cubic feet per day (bcf/d) despite
approximately 12 bcf/d of import capacity. However, if we look at
gas prices in the U.K., a country which has seen domestic gas
production fall and now relies more heavily on LNG imports, we
see a much closer link between oil and gas prices. On 1/26/2011
spot natural gas in the U.K. was priced at $8.64 per million BTUs
and Brent crude priced at approximately $95. Therefore, the
current gas-to-oil ratio in the U.K. is approximately 11:1. Since
the U.S. imports virtually no natural gas via LNG on a long-term
fixed contract basis and the UK will likely continue to offer the
best terms for spot cargoes in the Atlantic Basin due to further
declines in domestic production, there will be no increase in LNG
imports into the U.S. until spot prices are well over $8.00US per
million BTUs.
Brown and Yucels final reason oil prices drive natural gas prices is
the reallocation of drilling funds by natural gas producers away
from natural gas projects and towards oil projects. In todays
world of approximately $89US per barrel WTI oil prices and
$4.35US per thousand cubic feet (mcf) natural gas prices, operators
are aggressively redirecting funds towards oil projects. It comes
as no surprise that most independent operators are now
concentrating on their oil projects given that oil and gas wells cost
about the same to drill and oil wells generate nearly three times
the revenue on a barrel of energy equivalent basis. The focus on
oil projects and liquid rich natural gas projects has led to a drop off
in the natural gas directed rig count in recent months and a
concurrent increase in the oil directed rig count. We see the
preference for oil drilling over natural gas drilling displayed very
clearly in the weekly Baker Hughes rig counts. The below graph
shows the large upswing in both gas and oil directed drilling over
the past two years as well as the recent fall off in natural gas
directed drilling:
There are two important reasons oil directed drilling will continue
to rise and natural gas directed drilling should continue to fall.
First, a significant portion of todays natural gas directed drilling,
as much as 25%, is being conducted to hold soon to be expiring
leases. Many leases in the Haynesville and Fayetteville shale were
signed with terms stipulating that to maintain the lease in good
standing; a well must be drilled within three years of lease
signing. With much of the prospective acreage already held by
production (HBP) in these two shale plays, operators have begun
reducing operations in these areas until economics improve.
According to Baker Hughes, Louisiana and Arkansas, home to the
Haynesville and Fayetteville shale plays, have fewer rigs operating
than at the same time last year due to declines in shale directed
drilling. While rig efficiency gains, such as pad drilling will reduce
drilling time per well and will certainly offset fewer rigs active in
natural gas shale plays, drilling more shale wells closer together
will not grow shale gas production enough to offset an expected
10% decline in conventional US natural gas production this year.
A final reason oil prices are now driving natural gas prices is that
inflation in oilfield services, especially pressure pumping, have
driven up drilling costs to the point where most natural gas wells
are uneconomic at todays prices. Pressure pumping is the
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the past year and operators drilling more and longer lateral wells
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by
short
term
contracts
for
additional
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Indian Scenario
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filled.
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Natural gas from these two sources would have cost structures
quite different from that for the existing sources of supply. The
supply from these sources would also be of substantial volume
exceeding the current availability of gas. This would lessen
government control on gas pricing and would force changes in the
pricing mechanism.
Perhaps in the long run, the market forces will settle the gas price
in India.
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There have been very large finds of natural gas in recent times
(e.g. Qatar, Indonesia). In future too greater proportion of gas
finds (compared to oil) are expected.
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Fuel Cell
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Global Trend
Earlier the ethylene business was more regional limited to trade
within European region, the Americas and the Asia Pacific region.
Now global players are emerging in the ethylene and derivative
market. The Middle East is emerging as large manufacturing base
to supply globally. China is emerging as a major producer.
However, most of the big players are still making a profit, just not
as big as the profits they made over the past two or three boom
years. Other positive factors include lower oil prices meaning lower
feedstock prices and the drop in the cost of raw materials has
meant that many companies have been able to trim billions of
dollars from major projects.
Economy of scale
Mergers
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Chevron/Texaco
Dow/UCC
Dow/UCC merged
Future Developments
Given below are the future developments that have been planned
in this area.
Hydrates as Energy Source
Hydrates are unstable compounds of hydrocarbons like methane
and water. They are solid and look like ice. In natural gas, the
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2.
3.
4.
For the same natural gas carrying capacity, the capital cost of
seven Natural Gas Hydrate ships was also estimated at
approximately one-quarter less than that of three LNG ships.
Toubro has carried out some work in this direction and proposed
integrated approach for co-production of methanol and acetic acid
along with power generation.
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Smart Chips
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Till the recent past, oil and gas have generated politics, power
struggle and war. But in South Asia, diplomatic moves are on to
overcome the politics that divides the subcontinent with gas as the
driving force behind it.
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Summary
We started with the description of history and trends in the prices
of oil and natural gas. Emergence of natural gas as a source of
energy in the immediate future was noted. The growth in LNG
trade for supply of natural gas to both developed countries and
emergent economies of China and India was described.
Hydrocarbon resources being limited, major companies are
working towards developing new sources of energy. Gas to Liquid
technology, Hydrates and Fuel cells as a future source of energy
was identified.
The economics of the refining industry was discussed and low
margins in the industry were identified. This was followed with
description of the business cycle in the petrochemical industry was
described.
The strategies adopted by major companies to be competitive and
overcome the low periods of business cycle were stated with
examples.
Keywords
Synfuel: It is essentially natural gas converted to light oil by
reaction processes with gasoline and diesel as products.
Fuel Cell: It is an electrochemical energy conversion device,
similar to a battery
Personal Protection Equipment (PPE): Equipment/clothing
which offers protection against risks to health and safety.
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1.
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2.
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What are hydrates? What are the new ideas coming up with
respect to the hydrates?
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3.
4.
5.
6.
Further Readings
Books
May 2003 An Outlook for Natural Gas Market in the APEC Region
- Symposium on Pacific Energy Cooperation(SPEC) 2003, Tokyo,
Yonghun Jung, Ph.D, Vice President, Asia Pacific Energy Research
Centre,
LNG Projects & Gas Transportation Infrastructure in India- Dr U
D Choubey, General Manager, Gas Authority Of India Ltd. , IndoUS Conference, April 17th2002
Web Readings
www.plugpower.com
www.indialpg.com
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Unit 25
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Case Study
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Objectives
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.
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Im not too worried about oil on the surface, says one scientist.
Its the things we dont see that worry me the most (Begley,
2010). The oil that has been leaking from the well has done more
than float to the surface and become an eyesore; it has also been
trapped beneath the surface of the waves and carried methane to
other parts of the Gulf (2010). At first officials (both for the
government and BP) attempted to dispel these finding, however,
the independent scientists who boldly made these claims have
been proven correct (2010). Not only has the oil spill affected the
shorelines and marshes, it has also seeped into unexplored ocean
and could possibly disrupt the natural ecosystems that thrived
there before the spill (2010). Louisiana State 2 University
chemist, Ed Overton, said, It's [the oil spill] going to cause very
substantial and noticeable damagemarsh loss and coastal
erosion and impact on fisheries, dead birds, dead turtlesbut we'll
know what that is. It's the things we don't see that worry me the
most. What happens if you wipe out all those jellyfish down there?
We don't know what their role is in the environment. But Mother
Nature put them there for a reason, (2010). The dispersants that
are used to help break up oil spills are making the environment
under water even worse by changing the chemistry and physics
of the oil, says biological oceanographer Ajit Subramaniam of
Columbia University's Lamont-Doherty Earth Observatory. They
are creating micro layers of oil that are being carried by the deep
currents. Even without dispersants, the crude gets broken into
zillions of droplets suspended in the water column and corralled
there, prevented from rising to the surface (2010). Two main
plumes of the oil and methane mix have been found and the
largest is 22 miles long, 6 miles wide, and 3,000 miles thick
(2010). Not only do the plumes deprive the areas of oxygen but
they also suffocate marine-life by clogging up their respiratory
systems with oil (2010).
Notes
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Contd
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Glossary
Glossary
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Glossary
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Glossary
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