China to build Asia’s largest oil refinery in Pakistan

[niaz]

Thank you for the information.
A new refinery is being built in India. This time by Government owned oil companies instead of private ones.

http://energy.economictimes.indiati...nery-by-2022-at-a-cost-of-40-billion/59154630

They are saying it will be worlds largest, but Governments(particularly mine) are prone to grandstanding. can you confirm the authenticity and where this project stands in terms of global outlook?

If you consider the total investment of about $40-billion, this is certainly the biggest single petroleum project in the world.

I would presume that like the expansion of ESSAR refinery of Vadinar, Gujarat, most of pumps, pipeline & tanks and reactor vessels will be fabricated in India, therefore the cost of the refinery itself should not be much more $12-billion.

I had not heard of the Babulwadi until now and had to look at the map to find where it is (half way between Mumbai & Goa); presumably a lot of investment will be in the infra-structure and for the petrochemical complex.

On the refinery size itself, Reliance Industries complex at Jamnagar also boasts a refinery of 60-million ton nameplate capacity. In my humble opinion, the claim of the largest oil refinery in the world is probably based on its volume throughput.

We know that RIL runs heavy crudes and its volume throughput is 1.24-million bpd. If Babulwadi refinery is designed to run on lighter crudes than its throughput in bpd terms could be higher.

For example Venezuelan crude Leona 24 API (density 0.9095) has conversion factor of 6.927 bbl /metric ton. On the other hand Abu Dhabi Murban has API of 39.2 (density 0.8295) conversion factor 7.596 bb/ metric ton.

60-milion per annum of Leona = 415.62 million bbls. Assuming 350 working days per year, throughput will be 1.187 million bbl per stream day.

60-million tons of Murban crude = 455.76 million bbl with 350 days working we get throughput at 1.302 bbl per day

Thus Babulwadi refinery could have the same capacity as RIL by weight but higher in volume terms. However, it is too early for the project be discussed in detail in the international journals. Most of the available info being from the Indian publications; at this point in time I have no basis to doubt its veracity.

 

[Acknowledge]

If you consider the total investment of about $40-billion, this is certainly the biggest single petroleum project in the world.

I would presume that like the expansion of ESSAR refinery of Vadinar, Gujarat, most of pumps, pipeline & tanks and reactor vessels will be fabricated in India, therefore the cost of the refinery itself should not be much more $12-billion.

I had not heard of the Babulwadi until now and had to look at the map to find where it is (half way between Mumbai & Goa); presumably a lot of investment will be in the infra-structure and for the petrochemical complex.

On the refinery size itself, Reliance Industries complex at Jamnagar also boasts a refinery of 60-million ton nameplate capacity. In my humble opinion, the claim of the largest oil refinery in the world is probably based on its volume throughput.

We know that RIL runs heavy crudes and its volume throughput is 1.24-million bpd. If Babulwadi refinery is designed to run on lighter crudes than its throughput in bpd terms could be higher.

For example Venezuelan crude Leona 24 API (density 0.9095) has conversion factor of 6.927 bbl /metric ton. On the other hand Abu Dhabi Murban has API of 39.2 (density 0.8295) conversion factor 7.596 bb/ metric ton.

60-milion per annum of Leona = 415.62 million bbls. Assuming 350 working days per year, throughput will be 1.187 million bbl per stream day.

60-million tons of Murban crude = 455.76 million bbl with 350 days working we get throughput at 1.302 bbl per day

Thus Babulwadi refinery could have the same capacity as RIL by weight but higher in volume terms. However, it is too early for the project be discussed in detail in the international journals. Most of the available info being from the Indian publications; at this point in time I have no basis to doubt its veracity.

Thank you for the technical details that you have provided.

The Government wants to give a big push to plastics in India and become a major exporter in plastic goods. Plastic goods and other petrochemical goods are employment intensive(i.e finished goods) as well as forex generating and generally SME's are involved in it. So win-win from Government point of view.

Thus, there is now an increased push to build petrochemicals complex in India to expand capacity. Traditionally India had not prioritised petrochems as much as refining. Now with the change in Government, value added production is being focused on. Petrochemical complexes are being built now beside existing refineries which were built a while back.


The reason Government wants to build a refinery on the west coast is clear enough, 2 reasons - with the new Delhi-Mumbai industrial corridor coming along well by 2020, almost all new major manufacturing units are being set up on this corridor. Thus major demand in the future is going to come from here.

Secondly, being on the west coast allows for flexibility in sourcing crude from both Africa and West Asia at lower costs.

Thirdly, it is easy to export to Europe and US from here vis-a-vis from the East Coast.

Lastly, the Government is quite focused on building a giant refinery which is why for the first time the PSU Oil Companies are being forced to collaborate. Generally they are fierce competitors and build their separate refineries. Which is why despite one of them(Indian Oil) being larger than Reliance, Reliance has the largest refinery in India not Indian Oil.

Also, I find it interesting that Essar refinery expansion was done using mostly Indian manufacturing and fabrication. I would have thought that everything was imported from China, things being least cost there in terms of heavy equipment and manufacturing. Are you sure on this information?

 

[niaz]

Thank you for the technical details that you have provided.

The Government wants to give a big push to plastics in India and become a major exporter in plastic goods. Plastic goods and other petrochemical goods are employment intensive(i.e finished goods) as well as forex generating and generally SME's are involved in it. So win-win from Government point of view.

Thus, there is now an increased push to build petrochemicals complex in India to expand capacity. Traditionally India had not prioritised petrochems as much as refining. Now with the change in Government, value added production is being focused on. Petrochemical complexes are being built now beside existing refineries which were built a while back.


The reason Government wants to build a refinery on the west coast is clear enough, 2 reasons - with the new Delhi-Mumbai industrial corridor coming along well by 2020, almost all new major manufacturing units are being set up on this corridor. Thus major demand in the future is going to come from here.

Secondly, being on the west coast allows for flexibility in sourcing crude from both Africa and West Asia at lower costs.

Thirdly, it is easy to export to Europe and US from here vis-a-vis from the East Coast.

Lastly, the Government is quite focused on building a giant refinery which is why for the first time the PSU Oil Companies are being forced to collaborate. Generally they are fierce competitors and build their separate refineries. Which is why despite one of them(Indian Oil) being larger than Reliance, Reliance has the largest refinery in India not Indian Oil.

Also, I find it interesting that Essar refinery expansion was done using mostly Indian manufacturing and fabrication. I would have thought that everything was imported from China, things being least cost there in terms of heavy equipment and manufacturing. Are you sure on this information?

That's what I was told by the ESSAR engineers during a meeting at their London Berkley Square office. In case you are not aware Essar purchased the 12-million ton Shell Stanlow refinery near Ellesmere Port in Cheshire England for about £800-million in 2011.

 

[wiseone2]

If you consider the total investment of about $40-billion, this is certainly the biggest single petroleum project in the world.

I would presume that like the expansion of ESSAR refinery of Vadinar, Gujarat, most of pumps, pipeline & tanks and reactor vessels will be fabricated in India, therefore the cost of the refinery itself should not be much more $12-billion.

I had not heard of the Babulwadi until now and had to look at the map to find where it is (half way between Mumbai & Goa); presumably a lot of investment will be in the infra-structure and for the petrochemical complex.

On the refinery size itself, Reliance Industries complex at Jamnagar also boasts a refinery of 60-million ton nameplate capacity. In my humble opinion, the claim of the largest oil refinery in the world is probably based on its volume throughput.

We know that RIL runs heavy crudes and its volume throughput is 1.24-million bpd. If Babulwadi refinery is designed to run on lighter crudes than its throughput in bpd terms could be higher.

For example Venezuelan crude Leona 24 API (density 0.9095) has conversion factor of 6.927 bbl /metric ton. On the other hand Abu Dhabi Murban has API of 39.2 (density 0.8295) conversion factor 7.596 bb/ metric ton.

60-milion per annum of Leona = 415.62 million bbls. Assuming 350 working days per year, throughput will be 1.187 million bbl per stream day.

60-million tons of Murban crude = 455.76 million bbl with 350 days working we get throughput at 1.302 bbl per day

Thus Babulwadi refinery could have the same capacity as RIL by weight but higher in volume terms. However, it is too early for the project be discussed in detail in the international journals. Most of the available info being from the Indian publications; at this point in time I have no basis to doubt its veracity.

is the entire $40billion in the refinery ?

 

[kaykay]

I think OP is wrong. In India atleast 15-20 refineries are bigger than that by output(greater than 5 mtpa capacity). Anyway my bread and butter is linked with oil refineries across India....so I know it.

 

[JohnyD]

Perhaps...Pakistan's largest....

 

[Jinn Baba]

How did we go from news about a refinery in Pakistan to a full blown discussion on refineries in India

 

[YeBeWarned]

Oil Refinery is good enough for me, Big or small doesn't concern me ..

 

[YeBeWarned]

Oil Refinery is good enough for me, Big or small doesn't concern me ..

 

[niaz]

is the entire $40billion in the refinery ?

Certainly not. Refinery on its own would cost no more than $12 - 15- billion.