KBR to Implement Patented ROSE Technology at HPCL's Mumbai Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--Leading global energy engineering firm KBR Incorporated (NYSE:KBR) (Houston, Texas) has secured a contract from Hindustan Petroleum Corporation Limited (BSE:500104) (HPCL) (Mumbai) to provide technology licensing, engineering services and equipment for HPCL's proposed augmentation of the de-asphalting facility at the company's refinery in Mumbai. As part of the contract, KBR will refurbish the propane de-asphalting unit with its patented, state-of-the-art Residuum Oil Supercritical Extraction (ROSE) and ROSEMAX technology. Project officials indicate that this technology is expected to help HPCL improve refinery efficiency and margins.

With the implementation at HPCL's Mumbai refinery, KBR will have completed 50 ROSE installations worldwide. This technology assists refiners in achieving larger output and higher product recovery from residue. The de-asphalted oils that are produced by this process are then used as feed in hydrocrakers and fluidized catalytic cracker units (FCCU). The process also recovers several types of asphaltenes and resins, which are used in several industrial applications.

A light, easily available solvent is used to extract de-asphalted oils. The solvent is then passed through a separator and subsequently recycled to recover the oil. The ROSE technology also reduces operating expenses, as it recaptures a large portion of the energy that is used for the recovery of solvent in heat exchangers. Globally, facilities using this technology are estimated to provide 50% more energy efficiency in comparison to traditional methods. On a yearly basis, facilities using this technology worldwide collectively process in excess of 1 million barrels per day of feed.

HPCL, which is one of India's leading oil refining and distribution companies, is planning an expansion of the 5.5 million-ton-per-year refinery at Mumbai. This includes the development of a 1.4 million-ton-per-year FCCU, which will increase the total capacity to 2.4 million tons per year. The expansion of the propane de-asphalting unit is part of the upgrade. The company also started production of Euro-III standard gasoline in August, and expects to start production of Euro-IV compliant fuels by the end of this year. HPCL is also planning to undertake augmentation of its 7.5-million-ton-per-year refinery at Vishakhapatnam (Vizag) in Andhra Pradesh.

HPCL is also developing a 9 million-ton-per-year refinery at Bhatinda, Punjab, in a 51:49 joint venture with Mittal Energy Investments Private Limited (Singapore). Mechanical work on the project has commenced and is expected to be completed by October 2010. The refinery, which is slated to begin operations by the end of 2012, will process heavy Arabian crude and will have the capability to handle acidic and sour crude. The project will consist of a 1,101-kilometer long pipeline network, connecting Bhatinda to Mundra in Gujarat. The earlier cost of the project was about $4 billion. But the slump in machinery and equipment prices due to the economic meltdown has reduced project costs to about $3.89 billion.

HPCL's proposed $10 billion Vizag refinery expansion is facing uncertainty after Total S.A. (NYSE:TOT) (Paris, France) decided to withdraw from the project. HPCL is planning to develop a 14 million-ton-per-year refinery and a 1 million-ton-per-year petrochemical complex adjacent to its existing 7.5 million-ton-per-year Vizag refinery. Earlier, Mittal Energy also opted out of the project. Industry experts have stated that the withdrawal by Total SA and Mittal Energy reflects the impact of the economic slowdown on the refining sector. Oil India Limited (Noida, Uttar Pradesh) and GAIL India Limited (BSE:532155) (New Delhi) are the other partners in this venture. For related news, see September 21, 2009, article - Total Withdraws from Proposed $10 Billion Vizag Refinery Project.

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