Paraffinic Products

Complete case study of Modular Mini Petroleum Refineries

Despite the generally low ROI oil refinery, modular mini - refineries, from simple diesel production units more sophisticated refineries are increasingly cracking becoming a choice of flexible and cost effective supply for oil producers in remote regions. This is especially when there is a need to adapt quickly to meet local demand. Relatively low cost capital speed and ease of construction are the main advantages of a mini - Modular refinery. Two 30,000 bpd1 production units high octane unleaded, LPG, diesel, kerosene and fuel oil can be installed in a time window of 18 months with a budget of 200 million dollars. 4,000 bpd modules to 30,000 bpd of primary distillation capacity will add to congestion in creating a refinery of 100,000 barrels per day or more should dictate demand. The necessary conditions for such viable investment usually include: A location in close proximity and access to oil supplies; close to markets with considerable logistical advantages , reduces the high cost of remote distribution, regions , project financing on preferential credit agencies and development almost certainly some government incentives to support regional development. Mix Aromatics Solvents A Challenging Industry The oil refining sector has undergone significant rationalization in the last three decades. In refining capacity of 1980 and 1990 caused overall surplus increased competition between and reduced refinery margins. Weak commercial conditions, along with the tough environment regulations, led to the closure of most of the least efficient, smaller refineries worldwide. The historically low yields, usually below the cost of capital, also led to significant under -investment in industry concentration and industry reinvestment only in larger, more efficient complex refineries. In recent years, despite rising oil prices and the growth in demand for refined products, particularly in market development, there has been significant volatility and continued the general downward trend refining margins. Short-term improvements have not been maintained and are insufficient to

Meanwhile, as a result of global economic trends, most new capacity is now into operation in Asia and the Middle East where growth in demand is greater. There are few viable green field projects in Europe and North America, where demand is stagnant and regulatory obstacles are numerous. Despite this , changes in product slate combined with the strictest specifications make many refiners in these regions are still required to invest in improving operations as a cost of staying in business . At the same time, a number of other non-economic drivers for refinery investment often this is as a result of government intervention, for example - environmental change legislation or investment incentives to mitigate security of supply. In other cases, companies seem willing to invest in the refining sector economy to achieve the objectives marginal parallel such as Chinese investment in African refineries seeking access to upstream resources. Oils & Allied Mixed Hydrocarbons Adding Tracking Numbers The general economy or the viability of a refinery depends on the interaction of three key elements: Choice of crude oil used or shale oil, the refining equipment complexity or refinery configuration, and the desired type and quality of the products produced or slate product. Slate Crude oil is the major input in the petroleum refining industry. Even some oil exporting countries, transport costs associated with the movement of crude oil from oil fields consuming regions and the largest variety of quality oil that is cheaper to distant refineries using imported crude oil. Similar factors have led to the development of modular mini - refineries in oil-producing regions. Modular mini refineries may be located near the source of crude oil to minimize raw logistics and distribution cost. This approach has been successfully applies in places such as Kurdistan, Indonesia, West Africa and western Siberia. With more expensive, light sweet crude requires less refining update, but supplies Light , sweet crude are declining and the differential with heavy and sour crudes is increasing. The use of cheaper heavy crude means more investment in the modernization process. Costs and ROI Periods for refining units must weigh the expected costs of oil and price differential between light and heavy crude projected. The largest expansion of the complex refineries is driven by this, due to better operational efficiencies and the ability to process cheaper, heavier crudes. Larger units can more easily recover the substantial capital cost of secondary conversion capability, such as a "coker" or hydro - cracking. However, if lighter crudes are sweeter has a mini - Modular

refinery with only primary distillation capacity in the right conditions may still have significant competitive advantages. This unit requires much less capital but is faster project implementation and is more flexible to respond to changes in demand rapid development regions.

Arham Petrochem recognized mini petroleum refinery producing Heavy Aromatic Solvent and Mini Petroleum Refinery