It's brand new day.We re at critical crossroads of nigerian renaissance. In this well researched paper,
Ibikunle Laniyan Abraham the blogger takes an elaborate world view of the midstream oil and gas and then domestic outlook at the prospect and the impact of Dangote Refinery towards nigeria's belated economic renaissance. Enjoy the reading.
1.0.Market Segmentation.
Obviously the Petroleum Industry is subdivided into three segments.This includes the upstream involving exploration and Production, midstream segment controlling refinery business and petrochemical Production and downstream segment comprises of Marketing and marketing activities.In this context we focus on the midstream category and we briefly review the origin of world Refineries ,structural formation, technology, evolution and transition in mordern times.
2.0.The Complex nature Of World Refineries.
Refinery by mode is an extremely complex scientific work of art and with the visionary debut of Dangote Refinery,in nigeria,we now know better.
An industrial process plant where crude oil is refined into byeproducts like Diesel fuel, gasoline,fuel Oils, asphalt base,heating oil, liquefied Petroleum gas , kerosene and a host of other products, as derivatives in the Refining process is often known as Refinery in mordern parlance.The refining feedstocks for Petrochemicals like propylene and ethylene,can be broken down by crude oil cracking to produce lighter products.Facilities such as oil Depot is located or close to Refinery for incoming crude oil storage feedstock including bulk liquid products .The total capacity of global Refineries grew to 101.2million bpd in 2020.
As sprawling industrial complexes, Refineries are wonderful mordern industrial petrochemical masterpieces in the midstream sector often bulk large grand processors transporting and pipping streams between giant chemical processing units towards end users.
Surprisingly to me the historical growth of Refinery business and Strategic capacity building still evolving in mordern society .
.3.0.The Origin of world Refineries.
Frankly speaking it takes thousands of years to build industry and empower them with appropriate technology.Between 512-518BC in the Northern Wei Dynasty,in China a geographer , politician and Chinese writer Li Daoyoun invented crude oil refining process into diverse lubricants .In his famous work,"Commentary on the Water Classic"he unveils the secret.The cognoscentis in the Asian region have made immense contribution in this context.Like Li,the Arab Chemists were much famed for oil distillation much explained in the Arabic handbooks.Some of the methodology belonging to Muhammed Ibn Zakariya Razi (c.865-965) extremely adopted and with this methodology Baghdad streets were tarred or paved with tar accessible to natural fields in the region.In modern Baku , Azerbaijan , Oilfields were exploited .Hasan Ali Al-Masindi in the 10th century wrote about the same like Marco Polo later did in the 13th century described hundreds of shiploads as well as distilled outputs.This included inflammable products for military purposes.The Arab and the Persians perhaps through channels of Islamic Spain circulated the technology throughout Western Europe in the 12th century.
In the Northern Song dynasty (960-1127),the production of refined oil was also used as weapon by the dynasty for Song military .It was catalysed and inspired from a workshop dubbed"Fierce Oil Workshop".It led to the origin of Molotov cocktails that was begun with device like iron cans, filled with refined and inflammable products to torment the enemy territory.The resultant fire explosion was infact dubbed World's first fire bomb a prelude to mordern ammunition, missiles, hydrogen bomb and the nuclear fission in mordern times.
3.1Workshop And Production commencement
The first workshop employed thousands of people and one of the world's earliest refining oil facilities.And that was quite similar to later Manhattan project which uncovered atomic bomb from Oppenheimer lab in the second world war.
Prior to findesiecle oil and oil use was known as far back as ancient Egypt, Babylon, Azerbaijan,Rome, Philippines, China.The mordern history of world oil refining was commenced in 1846 when Abraham Gessner of Nova Scotia, Canada, initiated kerosene Production process from coal.Likewise in 1854,in Prosno, Poland, kerosene Production was evacuated from hand dug well by Ignacy Lukasiewicz .
3.2.North American Exploits And Rockefeller
Indigenous Indians in America utilised oil in different ways in terms of seepages Inclusive of lighting.Suggestions that oil could be found on the ground by specialists probably led to Drake's discovery.Immediately John D.Rockefeller small boy accountant built several Refineries to exploit the new situation.He produced basically kerosene and took monopoly of refining business and marketing activity in America.He founded Standard oil manufacturing standard kerosene with topmost quality of diverse features from different crude oil.He had several corporation and company in every state in America untill 1911 when it was broken down into smaller pieces accused of monopoly under the Sherman act .The corporation was broken down into 34units including standard oil of new Jersey now Exxon part of ExxonMobil , standard oil of California now Chevron, standard oil of new York now Mobil and a host of others.
However the world for Petroleum Industrial Refinery was founded in 1856 in Ploiesti ,Romania .In the North America, the first oil well was drilled by James Williams Miller in 1858.This occurred in the Oil Springs, Ontario Canada.The pioneer of Petroleum industry in America Edwin Drake in 1859started his exploits in Pennsylvania.From a technical view point refining Industry took off in 1863 when in Boston ,USA,the first distillation unit was constructed.
The industry gained little pace in the 19th century with the Oil lamp's kerosene Production .The emergence of internal combustion engine including use in automobiles also created gasoline Market.The Arab experience, Ontario initiative and Pennsylvanian innovation,were soon dusted by large oil finds and phenomenal booms in Oklahoma,Texas and California.Surprisingly, before Drake's finds,Samuel Kier had established American first oil Refinery in 1853 on Seventh Avenue,near Grant Street in Pittsburgh.The following year,Polish pharmacist Ignacy attempted the first large Refinery in Ploiesti, Romania established between 1856-57.In the operation tidal wave it was bombed by the Allies during the second world war long after it was taken over by Nazi Germany.Another claim to the world largest Refinery title was located in Salzbergen ,in Lower Saxony, Germany.It was opened in 1860 a decade prior to formation of Germany by Otto Von Bismarck.
4.0.Mordern Evolution
Most Petroleum Refineries were begun as crude distillation units.Some composed of thermal cracking and vacuum distillation units like viscosity breakers or visbreakers lowering viscosity.Ancillary processes evolved during the second world war and afterwards were at best commercially viable in a decade say maximum by 1955-60s.
Shortly after the war industry experienced phenomenal growth in terms of structural and technological advancement. There was colossal growth in the size of Refineries Worldwide, ferociously driven by growing demand for automotive fuel and gasoline products.
The was a decline in the 1980s driven by various Political and economic reasons.However,most Refineries in U.S. revamped their units'technology and added new models improving Refinery tonnage and capacity.This led to increase in crude oil processing including gasoline prodeucts'octane ratings, reduced diesel fuel's sulfur contents and fuels for home heating .It complied also with improvement in Environmental regulation including air and water pollution requirements.
Refineries in the U.S. processed oil mainly to recover kerosene in the 19th century.There was no Market for volatile fraction components like gasoline a waste often dumped into nearby Rivers.The stardom of automobile invention ended this spectre of ignorance and skyrocketed gasoline and diesel demand.It became the game changer and still remains primary refine products till date.The stringent environment standard,that emerged made obtaining permit for Refinery construction much more tedious.Consequently there was no new Refinery construction between 1976-2014.The small Dakota Prairie Refinery that took off in the same 1976 was the last Refinery in the interregnum.
Infact over half of Refineries found operating in 1980 were closed down either by mergers or obsolescence or low use.It precipitated gross decline in total Refinery capacity between 1981-1995.The United States operates a staggering 301refineries in 1982 with refining capacity of 17.9million bpd declined to 140 in 2014 still with increased tonnage of 18.02million bpd.Both demand and profitability fell between 2009-2010 when Refineries were sold or closed down by oil companies.
4.1.Mordern Technology And Petrochemical Process.
Unprocessed crude oil, barely useful in Industrial application, although light , sweet,or low sulfur or low viscosity in terms of crude oil was used directly as burner fuels.The use was directed to produce seagoing propulsion steam.The fuel tanks'explosive are byeproducts of ligher elements,toxic in warships.Crude oil 's hydrocarbon molecules in their hundreds during refining are separated.Several components byeproducts include fuels, lubricants and feedstocks in the very Petrochemical processes for production of plastics,detergents,elastomers , solvents,fibers like nylon, polyesters.
Internal combustion engines use fossil fuels for power production such as in ships, automobiles, aircraft engines,bikes, rockets,jets.
4.2.Hydrocarbons: Separation.
Hydrocarbons are separated at different boiling points in distillation units.Due to high demand for lighter liquid products for combustion engines'use , Refineries in mordern times tend to convert both heavy hydrocarbons and ligher gaseous elements into higher value products.
Oil is composed of hydrocarbons with variety of molecules and molecular gasses including the forms and lenghts.It includes Parraffin, aromatics,naphthenes,or cycloalkenes ,alkenes, dienes,alkynes.
Crude oil molecules involve various atoms like sulfur, nitrogen are most visible forms of molecules with varying length and complex composition of hydrogen,some oxygen atoms and carbon atoms.Their varying physical and chemical properties linked to the molecules'structural differences.A form of variety that makes oil utility in varied ways.
The separation of contaminants and impurities after purification ordinarily leads to lubricants sales with no further processing needs.Smaller molecules like Isobutane, propylene or butylene once certain octane requirements are met can be recombined by processes such alkylation or commonly finished by dimerization.
Through catalytic reforming gasoline octane grade can be improved .This involves hydrogen removal from hydrocarbons towards compound production with higher octane ratings like aromatics,gasoils or intermediate products .It maybe reprocessed for further cracking,long chained context into shorter light chained or lighter oil.This can be achieved by many forms of cracking like fluid catalytic cracking ,thermal cracking and hydro carbon cracking.And for gasoline to reach final step production requires fuels blending composed of various gradings , vapor pressures and a host of other properties to meet product specification.Devolatilisation process as another reprocesing method for intermediate products or residual oils ,used to separate from waste asphaltene material usable Oil.
4.3.Refining And Chemical Process.
Refineries are giant chemical plants processing thousands of barrels per day barely process in batches at steady state.Most units persistently operate the desirability of process optimisation and advanced process control also makes the high possible capacity.
Crude oil through fractional distillation is separated into fractions and top fractions on fractioning column records lowers boiling points than bottom fractions . Heavy bottom fractions get cracked into lighter useful products and fractions are processed into other units.Petroleum products are crude oil derivatives as processed output from Refineries.
Besides these outputs ,Petroleum products and several classes of fuels Refineries also produce intermediate products like hydrogen, light hydrocarbons , reformate and pyrolysis , gasoline often subject of further processing a main reason behind the location of chemical plants inside the Refineries.
Light hydrocarbons for instance in an ethylene plants are steam cracked and produce polymerised ethylene to generate polyethylene polyethene.The vitality of low sulfur a reality except for heaviest products that ensure adequate Environmental protection.Ordinarily what is transformed into hydrogen sulfide via catalytic hydro desulfurization and extracted from product stream through amine gas treating is crude sulfur contaminant.It uses Claus process and the Sulfide is sold to the chemical industry after being transformed from elementary sulfur.
A large amount of heat generated is freed by this process used in other parts of the Refinery.Electrical power plant invariably takes up excess heat combined in the full refining process.Refineries can produce diverse shade of Petroleum products based on nature of Refineries'complex composition.The biggest share of the products is used by energy carriers in various grades of gasoline and fuel Oils.Such blendable fuels generate gasoline,jet fuel, diesel fuel, heating oil and heavier fuel oils.Nonvolatile heavier fractions as utility generate Parraffins ,plastics and other useful materials.Elementary sulfur another petroleum product few percent sulfur containing molecules and carbon a Petroleum Coke form and hydrogen are intermediate products.
The Refinery outputs as Petroleum products are grouped into 4 categories mainly LPG, Gasoline, naphtha's as Light distillates; middle distillates include kerosene,jet fuel, diesel and heavy distillates as residuum include heavy fuel oil ,lubricating oils,wax , asphalt.The blending of various feedstocks as required, mixture of appropriate additives , provision of short-term storage,bulkloading preparation to trucks,barges , product ships and rail cars are essentials.
4.4.Crude Distillation And Classification
Based on the way Crude is distilled we classify below accordingly: Gaseous fuel like liquefied Petroleum gas LPG, propane being stored and in liquid form under pressure shipped lubricants like light machine oils ,motor oils , greases, as required as viscosity stabilizers .They are often shipped in bulk into off-site packaging plant; Parraffin is utilised in candle industry and beyond shipped as packaged block.It is also in wax emulsions, candles, matches ,rust protection, frozen foods packaging, construction boards,and vapour barriers.Sulfur or sulfuric acid as sulfur removal byeproducts, with several percent of sulfur as organic sulfur containing compounds.They are useful industrial plants prepared and shipped as acid precursor Oleum ;Bulk tar shipping for use in tar and gravel roofing is for off-site unit packaging.Asphalt is a gravel binder,for formation of asphalt concrete utilise for road pavings and lots; Petroleum Coke:Often used in specialty carbon products like electrodes or solid fuel ; Petrochemicals as organic compounds are chemical industry's elements from polymer and pharmaceuticals like ethylene, benzene-toluene -xylenes (BTX).They are subject to further processing in the Petrochemical plants and maybe Olefins if precursors or various types of aromatics Petrochemicals . About 6,000items churn out from Petroleum waste byeproducts .They include fertilizer,floor coverings, perfume, insecticide,petrolem jelly ,soap, Vitamins capsules.We examine chemical processes ;Desalter unit washes salt away from Crude oil prior to entry into atmospheric distillation unit ; Crude oil distillation unit:It distills incoming crude oil into diverse fractions and needs further processing into other units; Vacuum distillation unit :It distills further residue oil from Crude oil distillation unit bottom and performed at pressure well below atmospheric pressure;Naphtha hydro treater unit:To desulfurise Naphtha from atmospheric distillation it uses hydrogen.Before sending it into catalytic reformer unit,Naphtha must be desulfurise.Then catalytic reformerncomverts into higher octane molecules from desulfurized naptha molecules.It produces reformate products.To add the reformate often with higher contents of aromatics and cyclic hydro carbons ,endproduct Gasoline product .As well as the hydrogen , another byeproducts produced during catalyst reaction and used either in the hydro treaters or hydro crackers ; Distillates hydro treater after atmospheric distillation desulfurizes Distillates like Diesel . Hydrogen is used to desulfurize Naphtha fractions from Crude oil distillation of other units ; Fluid catalytic cracker (FCC),from the Crude oil distillation FCC upgrades products ;Hydrocracking :To upgrade heavy Residual oil from Vacuum distillation unit.It uses hydrogen by thermally cracking them into ligher but more valuable products with retarded viscousity Products; While Merox desulfurizes LPG , jetfuel ,or kerosene through oxidisation of mercaptans into organic disulfides known alternative processes for mercaptans removal like doctor sweetening process also endorses caustic washing; Cooking units (delayed coker ,fluid Coker,flex Coker):It processes into Gasoline and diesel fuel from very heavy oil leaving Petroleum Coke a residual product .
Alkylation unit:It uses hydrochloric or sulfuric acid to generate high octane into. Gasoline components blending,converts light end Isobutane and butylene from FCC process into alkylate.Alkylate is a high octane components from endproduct Gasoline or petrol .Others include Dimerization unit that converts into high octane Gasoline , Olefins Dimerisable butenes can be transformed isooctene subsequently hydrogenated to form isooctane.Dimerisation is also used to produce highly unsaturated and reactive hydrogen and sporadically form guns .In this Context, Dimerization effluents require more blending into finished Gasoline Products pool or somewhat hydrogenated.
In the case of Isomerisation it converts linear molecules like Normal pentane to higher octane molecules for blended Gasoline or feed to alkylation units.
The conversion of normal butane into Isobutane also uses the same for alkylation unit's utility.In the case of steam reforming it uses its unit to convert natural gas into Hydrogen for use in the hydrotreater or Hydrocracker . Propane and similar Gaseous fuels are stored in the liquefied gas storage vessels at sufficient pressure for liquids maintenance invariably spherical vessels or bullets like horizontal vessels with rounded end.
In the amine gas treater ,Claus unit ,tail gas treatment converts hydrodesulfization , hydrogen sulfide into elementary sulfur.About 64,000metric tons of sulfur produced in 2005,in most cases Worldwide was byeproducts of Petroleum Refinery and natural gas processing plants.
Sour water stripper :To remove Hydrogen,it uses sulfide gas from diverse waste water streams for later conversion into end product, sulfur in Claus unit. To circulate cooling Water is the responsibility of cooling towers as boiler plants generates steam for steam generators . Pneumatically,operated control valves and electrical substation composes the instrumental air systems.
API separators , dissolved air flotation (DAF)units make up waste water selection and treating system,with further treatment units like activated sludge biotreaters to make water for reuse application and disposal;To remove heavy waxy constituents like petrolatum from Vacuum distillation Products .It is the functions of solvent dewaxing ;in terms of storing crude oil and finished products.It is the obligation of storage tanks often vertical cylinderical vessels with some sorts of control for vapor emissions enclosed by an earthen berm to contain spillages.
5/Standard and Schematic nature of consists different configurations from Crude oil distillation unit to vacuum distillation unit and a host of other units examine below:
Crude oil distillation unit (CDU):In virtually all the Refineries CDU is the first unit you use and see that distills flowing incoming Crude into various fractions of diverse boiling ranges and processes into other units of the Refinery.The atmospheric distillation unit is based on the fact it functions slightly above the atmospheric pressure.The incoming Crude must be preheated by heat exchanges with some hot distilled fractions and streams later Desalted to eschew inorganic salts primarily sodium chloride.Crude oil is further heated by heat exchanger following desalter with hot distilled fractions.Thereafter heated in a fuel fired furnace or fired heater to 398°c as standard temperature later routed into distillation bottom unit.
The partial provision of heat exchange with incoming Crude oil is responsible for cooling and condensing of distillation tower overhead and partially by air-cooled or water-cooled condenser.By pumping around system additional heat removed from the distillation unit column.
Naphtha is the distillation column's overhead distillate fractions.Fractions removed from distillation column side at various points between the top and bottom columns known as sidecuts.Sidecuts like kerosene ,light gas oil , heavy gas oil,are cooled by heat exchanger with the incoming Crude oil.Those that are not sent to intermediate storage tanks prior to being processed are fractions like overhead naptha.
5.0.The Standard Criteria for Refinery Location.
Now we examine standard criteria for location of Refineries.The location of Refinery must follow laid down standard prior to its localisation.
--The potential site must be far from residential and urbane like the poultry business.
--Availability of infrastructure,raw materials supply and shipment to other Markets.
--Availability of energy for plant use and operation
--Availability of waste disposal facilities.
Site selection factors for Refinery:Land
availability ; traffic and transport availability; Labour and resources availability ; Provision of utilities like Water supply and power supply.
The entity invariably uses large amount of heat surrounded with abundance sources of water resources and cooling Water.Refineries are often located close to navigable rivers or port or coast.This kind of environment gives quick access to efficient transportation either by road , Rivers,or sea with crude oil pipeline transportation as the best and cheapest not excluded.Therefore it is profitable to transport large volume of crude oil by pipeline enroute terminals instead of small outputs by road, rail and badges.
Fine fractionating including Petroleum plants and solvent Production oil plants requires spaces for large volume of refinery Products processing or admixture of chemical additives with source's products as opposed to terminals' blendings.
6.0.Pollutants And Environmental Degradation
The process of refining produces and releases into atmosphere a host of chemicals and contaminants endangering surrounding environment including natural species.In the "4.0.Mordern evolution" cited above pollution is a threat to any economy.Apparently, we repeated it twice gave it two columns in this incendiary piece as note of warning and precaution to regulators,policy makers and captains of industry to avoid ecological recklessness given its grievous implications to our people and Environment as we chart a new dawn with the tremendous debut of Dangote refinery opening a new chapter in our nation's checkered antecedence of envirnmental economic management.Niger Delta the world second largest Delta and the world largest industrial complex contributing to global warming or green house gasses is a living witness and first hand knowledge of Environmental Degradation history in Nigeria.
According to AP42 compilation of air pollutant emission factors ,a report by U.S.environmental protection agency (EPA)'s Emission factor information on air pollution, pollutant was a major social threat.It was first published in 1968 and fifth edition came out in 2018.Air pollution,waste water concerns, industrial risks and allied accident s like fire, explosion,noise, health effect like Industrial noise were identified.Worker health is very important.
6.1.Social, Environmental threat: Worker's health.
In the book by Al Gore 'Earth In The Balance' which I critiqued unveils empirical evidence of environmental degradation and global warming world wide.Since Refineries release contaminants governments world wide have placed a cap and restrictions on the ratio of this release to protect the environment.
Most Refineries unarguably have installed standard equipment in reaction to this Environmental restrictions ordered by pertinent Environmental protect agencies.Subsequently ,it precipitated a drastic decline like the case in America.Consequently in view of this threat ,it might have influenced the location of the facilities far away from Urban region and residential areas.Take a close look at the necklace shoreline of refineries in California's Contra costa county and Solano county constructed in the 20th century prior to recent population explosion.Chemical plants upsurge and detrimental explosion Close to Urban areas in places like Richmond, Martinez, Pacheco, Concord, Pittsburgh,Vallejo Benicia .Some Refineries located in Sherwood Park at Alberta,close to City of Edmonton with over a million people.
The precarious nature of the industry due to volatile friction embedded in interrelated interhazardous operative routine of chemical plants does not affords legal and institutional sustainability for the phenomenal industry to transact in the atrophy of teething regulation.They require precise temperature ,pressure parameters and effective monitoring apparatus to ensure the standard compliance to thrive the quite Complex nature of the process progression.It is subject to proper evolution ongoing and witnessed in the scientific advancement in the field of Petroleum engineering .The large proportion of chemical addittives and the contaminants release enormous volume of potential health hazards into the environment jeopardize the health of Refinery workers.
Infact occupational hazards is quite common in the U.S.even when reported were not properly treated.Health impact Reports on workers were prevalent as far as back as 1800 in the U.S.In 1890 for instance an explosion killed 20workers in a Chicago Refinery.Even in Nigeria so many workers had died as casuals and in tank farm cleaning unreported.Such implications resonate round the and barely stop in the 21st century.This could be proven with evidence of recurrent explosion in Refineries across the world and places like Wisconsin in U.S.and Germany in 2018 for instance.A proof of potential hazards that could endanger Refinery workers.
In terms of chemical exposures we xray or highlight heavily automated and technically advanced context of mordern Refineries in line in which almost standard and processes are embedded in engineering controls .This nevertheless exhibit a substantial exposure reduced risk in comparison to earlier times However specific task or certain work in Refinery establishment may lax exposure to chemical reaction and subvert on the fringes these process of safety mechanism honed by empirical stress over centuries.
We paint the scenarios to include: System failures like leaks, explosion etc; standard modules for inspection,product sampling , process turnaround or equipment maintenance, cleaning routine.Refineries are known to produce Carcinogens, explosive chemicals, Cancer rates' literature on oil Refinery workers is mixed.For instance there is a relationship between Benzene and Cancer like Leukemia even though conclude Studies suggest otherwise.The case of Asbestos related Mesothelioma,a cancer linked relationship with Carcinogens was investigated in this context of oil workers This research work unveils quite a marginal link between Mesothelioma and Refinery employment.A metaanalysis in a data of 350,000 Refinery workers found a marginal but peculiar growth link in Melanoma deaths.A half a century of U.S.based study of 17,000 workers found similar evidence and bereft of excess mortality.
A group of common volatile organic compounds (VOCs) found in oil refinery environment serves as in depth - exposition in the paradigm of occupational injury limit and forces revamped safety mechanism to curiously acts as surveillance among Refinery workers is the issue of BTX- Benzene, Toluene and xylene. The most channel for BTX exposure is the inhalation arising from chemical low boiling points.
BTX gaseous Production in most cases occurs in tank cleaning and fuel transfer.It causes chemical offgassing in the air . Ingestion via contaminated waters perhaps unlikely in occupational setting and dermal exposure and absorption possible.Perhaps less likely to occur where adequate personal protective equipment put in place in ideal setting.In a 2018 U.S Bureau of Labour statistics report pelucidly refinery workers boasts of significantly lower rate of occupational injury .At 0.4 OSHA -recordable cases per 100 full time work force 3.1 cases than all industries,oil and gas extraction at 0.8 cases and 1.3cases. in general in petrolem manufacturing .This doesn't mean we should undermine the significance of health risks and occupational hazards that exist.
6.2.Standards And Restriction .
A couple of regulation must be complied with in line with standard practices.The Occupational safety and health administration (OSHA),National institute for occupational safety and health (NIOSH) and American conference of Governmental industrial hygienists (ACGIH) provided clinical regulatory template for management of occupational exposure limit in America.
Physical hazards,like heat ,noise requires hazards controls using the theory of hierarchy of controls to guide Refinery workers towards safety.Engineering controls Includes like fire detection and extinguisher system , pressure chemical ical sensors to detect structural integrity loss and adequate maintenance against structural failure.They have easily predictable navigable controls.
7.0.Growth In Size And Proliferation.
The largest and the most functional and malfunctional refineries around the world which in most cases former ones are located in Asia.For instance Jamnagar refinery owned by reliance industries located in Jamnagar , Gujarat,India is the world largest refinery producing about 1.240,000bpd. Jamnagar was commissioned in July 1999, started with a capacity of 668,000bpd.It was built at a powerful speed with unprecedented construction methods and totally transformed the future mode for Refinery construction.It made India net exporter of Petroleum products from net purchaser and guaranteed energy safety. Paraguana refinery complex (PDVSA)in Punto fijo, Falcon, Venezuela produces 971,000 bpd.It comprises of three Refineries including carbon and amuay Refineries in the paraguana peninsula and Bajo Grande Refinery in Zulia state of Venezuela.Both Refineries posses 955,000 and the one in Bajo produces 16,000bpd at a total of 971,000bpd opened in 1976 owned by state oil company ,Petroleos de Venezuela (PDVSA).
In 1964 SK Energy owned Ulsan refinery at Ulsan South Korea produces 850,000bpd.It is the first oil Refinery in korea and largest .While Ruwais refinery owned by Abu Dhabi national oil company was launched in 1982, located in Ruwais,UAE on the coast of the Arabian gulf west of Abu Dhabi city produces 837,000bpd ,Yeosu refinery owned by GS Caltex in Yeosu,South Jeollanam ,South Korea,Onsan refinery produces 800,000bpd located in Ulsan,South Korea.It is the second largest in South Korea and third largest in Asia.
The next seventh largest owned by Aliko Dangote himself located in Lekki free Trade zone at 650,000bpd hits Market by August bigger than port arthur.The ExxonMobil owned refinery Jurrong Island refinery based in Jurrong Island, Singapore churn out 605,000bpd.Garyille refinery owned by marathon Petroleum , located in Garyville,Lousiana, United States operates at 585,000bpd.Exxon Mobil owns another refinery, Baytown refinery located in Baytown,Texas,USA churning out 560,500bpd.Port Arthur refinery located in Port Arthur ,Texas the motiva refinery also produces 630,000bpd more than Jurrong.This was followed by these two refineries:Ras Tanura refinery formerly world largest owned by Saudi Aramco world largest Company by revenue, located in Saudi Arabia and the one in Baton Rouge,in Louisiana,U.S owned by same ExxonMobil.It churns out 540,000bpd as some of the largest refineries in the world.India has the some of the world largest refineries.For instance,India's Pandip refinery, Bina refinery, Mangalore refinery, Mumbai refinery and Jamnagar refinery at 1.2m.bpd are jawdroping dimensions to behold.Obviously and unarguably India and China no doubt considering their status behemoths have the largest population of refineries in Asia like Russia.China has more than 30refineries churning out millions of hydrocarbon outputs including petrochemicals sold across the world.Sinopec Zhenhai Refinery at 345,000bpd;Urumai petrochemical owned by China national Petroleum Company produces 101,000bpd.Dushanzi refinery at 120,000bpd;Sinopec Tianjin Company refinery at 100,000bpd ; Shanghai Gaoqiao oil refinery churns out 220,000bpd; Sinopec oil company refinery at 195,000bpd;linan Company refinery at 21,000bpd;Wepec Dalain refinery,200,000bpd;Jinzhou petrochemical refinery,112,000bpd;Jinxi refinery 112,000bpd;Petrochina owned Fushun Petrochemical refinery at 186,000 bpd;Dalian Petrochemical refinery at 144,000bpd;Jilin chemical refinery,265,000bpd,115,000bpd; Sinopec Jiujiang Company refinery churns out 98,000bpd.
Others include Jinlin Company refinery,265,000bpd; Sinopec Wuhan Company refinery at 80,000bpd; Sinopec CPCC Changling Company refinery,100,000bpd;Jingmen Company refinery produces 100,000bpd and Luoyang Company refinery at 100,000bpd.Petrochina ,Daqing Petrochemical refinery produces 122,000bpd and Sinopec Beihai Company refinery,12,000bpd;Maoming Company refinery refinery ,265,000bpd.While CPCC Guangzhou branch refinery opeates at 150,000bpd,LanZhou refinery ,Sinopec Anqing Company refinery Fushun Petrochemical refinery churns out 112,000bpd ,110,000 bpd and 165,000bpd respectively.
7.1.Medium sized and small Refineries In Africa.
When one appraises data outside these behemoths then Asia refinery business though trails behind but cannot be truly said to be a non starter like the deplorable experience in subsaharan Africa.For in stance in Afghanistan,Ghazanfar oil refinery owned by Ghazanfar Group churns out 11,874bpd ;Kam oil refinery 11,874bpd ;Ansar oil refinery,Herat at 200,000bpd.Bahrain's Petroleum Company Bapco refines 267,000bpd and not like Bangladesh's Eastern refinery,33,000bpd; petromart refinery at 2,500bpd;superpetrochemical,3,000bpd;Bashundhana oil and gas,40,000bpd;
The setback in terms of economic growth in Africa can be linked to the nature of poorly constructed refineries and malfunctional Petrochemical complexes found in the region.This in turn was adversely affected by bad planning and pandemic legacy of monumental legacy of unbridled corruption gripping the region.Besides the marghreb region and South Africa the refineries both in terms structural inadequacy and low expertise dented the integrity of subsaharan Africa.For instance refineries in Algeria predominant in Petrochemical Production.Skikda refinery owned by Sonatrach churns out 350,000bpd compared to Cabinda refinery at 16,000bpd owned by Chevron corporation in Angola including Luanda refinery owned by Sonangol produces 56,000bpd.Limbe refinery in Cameroun produces 42,000bpd or you compare that with Chad's Djarmaya refinery at 20,000bpd and Congo democratic republic at 15,000bpd.Take a look at Egypt's Alexandra America refinery, Alexandria MIDOR and Alexandria Elmex producing 81,000bpd,100,000 bpd and 117,000bpd respectively.In Sudan , Khartoum refinery operates at 100,000bpd and El Obeid less than 150,000bpd ;Port Sudan refinery at 21,700bpd .Dar es Salam refinery at 17,000bpd in Tanzania and Tunisia 's Bizerte refinery at 34,000bpd .In Uganda,Proposed 60,000bpd yet to be financed in contrast to Indeni Petroleum refinery at 25,000bpd in Zambia.Egypt also boast of smaller and minirefineries such as tanta refinery at 35,000bpd;Asyut refinery,47,000bpdd ;Niestorod ,80,000bpd; Wedi feran,8,550bpd;El Nasir refinery,132,000bpd.Mombasa refinery in Kenya,70,000bpd slightly above 68,000bpd in Abidjan,Cote d'voire .In Libya total refinery less than 400,000bpd from five refineries.They include'Ra's Lanif refinery,220,000bpd;Zaniya refinery ,120,000bpd ,El breya ,10,000 bpd and Sarir refinery ,10,000bpd and Tob Ruk refinery,20,000bpd.In Morocco, refineries are closed down both Mohammedia refinery (samir)127,000bpd and Sidi kazam refinery,50,000bpd .
In South Africa, Capetown Refinery,100bpd;Engen Refinery,135,000bpd;Sapref Refinery,a joint venture p of Royal Deutsche Shell and BPl-180,bpd;Sasol Refinery (Secunda CTL)(Sasol)/,150,000bpd;Natre Refinery a joint venture between Sasol and total South Africa at 108,000bpd;Mossel Bay GTL refinery like(Petrosa)/45,000bpd.About 6refineries in South Africa,producing 700,000bpd as total capacity excluding Petrochemicals.
7.2.Nigerian Refineries.
In Nigeria, Kaduna refinery,110,000bpd ; Port Harcourt refinery,210,000;Warri refinery,125,000bpd;Waltersmith refining and Petrochemical Company,5,000bpd;Azikel Refinery owned by Azikel Petroleum,12,000bpd still under construction to be completed in summer 2023;Ogbele Refinery owned by niger delta Petroleum resources,11,000bpd.
Inspire of giant strides in the midstream revolution worldwide,United States maintained his historical feat as the world largest refiner and refining country and no nation barely came close.The top five refiners beginning with India in 4th position,at a total Refinery capacity of five million bpd.Russia took third at 6.86million bpd in terms of total Refinery capacity below China in the second position,with total Refinery capacity of 16.99million. America is an interesting story maintains her lead at 17.94million bpd.U.S.accounts for 20% of World total refining capacity.What were the main secrets of the American dream and success in Refinery leadership?Pretty simple.As far back as 1982, United States had 250refineries contributed meaningfully to sustainable economic growth.In 2019 the Refinery capacity declined to 132refineries but today it grew to 147refineries with almost 20m.bpd.
Now Nigeria is setting pace once again with the emergence of Dangote Refinery.She should emulate america and expand Refinery capacity inside and outside across west Africa.Methinks Refinery and Petrochemical city should be established to comprise of a thousand refineries earning trillions of dollars around from West Africa,to east, Central and southern African regions.We should have at least over 200refineries both Cottage and modular Refineries.The dearth of Refinery capacity in subsaharan Africa warrants this exploitation .
And you begin to wonder why the multinational oil companies operating in the country and milking dry our commonwealth never for once deem it fit to build a good refinery.This is quite appaling considering the fact shell built the first in 1965 portharcourt refinery 1 about 30,000bpd and since barely made another attempt.
Most South African Refineries are closed down .This includes proven cases such as Engery Mosel Bay,Sapref and refining in Southern Africa region remains heavily uncertain.Angola by 2025 could overtake South Africa as the biggest refiner in the region as Nigeria takes over the continent as biggest refiner during the period.The reopening of Astrong Energy owned 100,000bpd Caltex Refinery shut down in 2020 after deadly explosion was contemplated to ease the supply constraints in the region.Angola is discussing pipeline extension with neighbor countries like Zambia.
West African region houses the largest refining capacity on the subcontinent though only 23% of it is fully functional.
8.0.DANGOTE REFINERY:A GAME CHANGER.
Dangote Refinery was recently opened alongside the ongoing rehabilitation of 445,000bpd government owned ailing Refineries . The attempt was expected to generate currency savings, fight Inflation, improve foreign exchange,grow standard of living and repairs the wobbling macroeconomic Outlook.Ghana is reviewing the 45,000bpd Tema Refinery alongside Chinese developer commissioning the 40,000bpd in the first phase of 100,000bpd project at a cost of $3billion to be completed by 2025.
Certainly but not riddled by prejudice for the umpteenth time, evidences abound,Refineries in subsaharan Africa are strangulated out of existence.However there are proofs these Refineries in most cases have closed down more or less recently .They are extremely depreciating increasingly finding it compete let alone survive against the imperial deluge of fierce competion from large Refineries located in the person Gulf or india.From Mauritania, Sierra Leone,Togo ,Liberia grinding on the west coast down into the east coast comprising of Mombasa,Dar es Salaam and Maputo,the story is the same : a disgruntled nonstarter.Inland Market Refineries in isolated a wonderful worst case scenario from Mali,Niger,Chad to Uganda and Rwanda inspire of beautiful resources, Production was next to nothing very insightfully insulting and worrisome to Indeed dark continent.Very difficult to supply them finished products from African coast. The profitability of 20,000bpd Refineries as local resources built by Chinese ,after 2010 Iucidly ignores mordern reality.Moreso as you can not live above your means.Aparently the continent's limited capacity was concentrated in four countries Algeria, Nigeria, Egypt and South Africa.They represent 60% of the Continental capacity.Gloomy! Central and South America from Brazil to Venezuela have the large Refineries World beaters.
Modular Refineries are extremely growing in popularity in terms of adoption on the continent.As foolproof of advanced Refinery technology, taking Africa by storm where the strategic incentives of recouping Investment in modular in 13months is well proven from inception to completion.As a quick Investment return platform, modular get back return Maximum of 2years empowering developers and boosting Investor confidence when Investment returns are recouped in record numbers.It mitigates the associated risk of pipeline sabotage inbuilt with desegregated pipeline model that makes Refineries as evacuation systems completely free or independent of pipelines.
Dangote Refinery was built on 2,500hectares or 6,180acres site located at the Lekki free Trade zone, Lekki, Lagos State.It is located in an ideal atmosphere close to the sea, seaport, airport and is supplied by crude oil from World largest Subsea pipeline infrastructure about 1,100km long.About 135,000 jobs will be created when fully functional and the Refinery is blessed with a Nelson complexity index more complex than most Refineries in U.S..The best at their average 9.5 in America or Europe average of 6.5. and though the Refinery 's Nelson index of 10.5 still pale into insignificance in comparison to with Jamnagar refinery index of 21,is commonly adjudged as a game changer.The index after distillation like hydrocracking ,NHT,CCR,RFCC, Polymerization and a host of technical nomenclatures basically grows with capacity and volume of chemical procedures.
The Investment is over $19b.or close to $20b.and was first announced in September 2013 when he declared about $3.3b.for project financing. During the period the total project cost stood at $9b.with $3b.invested from Dangote Group.and the remainder financed by creditors.It was expected to commence Production in 2016 .However,according to popular story location change to Lekki altered the commencement date till 2016.It started with excavation and preparation of infrastructure components and planned completion pushed back to 2018.Nevertheless in 2017, when major structural construction was begun, Dangote announced the mechanical completion would be ready and commissioned in 2020 .Some insider sources unveiled the views the construction was likely to take twice as long as was stated.The fact was not far-fetched that partial project refining capacity not likely to start until 2020 with associated project at the Refinery so called the Urea fertilizer factory was scheduled to commence operation in 2018 producing 3million tons of urea per annum.During same period was expected to cost $15b.with $10b.invested in the Refinery proper and fertilizer factory and pipeline infrastructure gulped the remainder at $2.5b.apiece.
Then new fund was borrowed in July 2022 about 184.8billion naira or $442million at $462 to Dollar, at 12.75% or 13.5% per annum to complete the project.The Refinery was post poned thrice in 4years and sort of Investor confidence nosedived exhibited perplexity over completion date.
8.1.Dangote Refinery components And Superlatives.
We already highlight the Refinery components nevertheless hereby also cursorily review some components in the Dangote Refinery.
The Refinery components include Crude distillation unit(CDU) , Residual fluid catalytic cracking unit(RFCC) etc.The first unit requires input auch as crude oil to churn output such as combustion gasses, naphtha both light and heavy ,jetfuel, residual fluid , heavy oil and diesel fuel, with purpose of crude oil components separation by molecules, fractionated with required boiling temperature.The purpose of RFCC is to break down molecules longer more than 70 carbon atoms into short ones.The required input being the residual fluids from CDU and air catalyst,to churn out output such as combustion gasses,flu gas, catalyst to be reused and reprocessed.
Let us fast forward to the superlatives,the landmark,the phenomenal Installation of world largest crude oil distillation column weighing a total of 2,350tonnes by specialist Dutch firm .The record breaker was also blessed with a heights of 112metres slightly taller than Saturn V rockets tha transported the first Americans to the moon at 110metres in July 20,1969 and also 16meters tall than Big Ben.It also comprises of world's heaviest Refinery regenerator astounding and stunning to being the heaviest ever item transported over Public road in Africa.At a Mammoth of stately 3,000metric tonnes combined with being the heaviest or clumsiest single piece of steel structure or movable scientific work of art in the world.
A regenerator like RFCC boils components like heavy oil until molecules break up and turn into lighter molecules like gasoline and kerosene etc.It creates more valuable products from Crude oil unlike insaturated gas plant's debutanizer is fifty metres high, diameters of 8metres and weighs 520tons.It handles cracking unit's streams which comprises of Olefins not saturated like butylene and propylene.The presence of a de-ethanizer ,a sponge absorber ,depropanizer and de-isobutanizer can be found in the unsaturated gas plant.
The 50metres high Penex stabilizer column comprises a diameter of 6 meters,520tons of weight.The light straight run naphtha's molecules,isomerised or rearranged in the Penex process into higher octane level's molecules using catalyst like aluminum chloride.
The Refinery is endowed with marine facilities for freight optimisation.They comprise of 2 crude SPM(Single Point mooring),for ships'unloading from Aframax into ULCC(ultra large crude carrier );2 Subsea crude pipeline with 48 diameter or 1.22meters with interconnection;3 products SPM for export of products to suezmax vessels;4 Subsea pipelines for imports and products , diameter of 24 or 0.61metres and ca.120km Subsea pipelines.
The installation of Single crude oil distillation unit earns the Refinery the status of 'world largest single train refinery'processing 650,000bpd .It is transported via pipelines from nigerdelta oilfields where natural gas is sourced for fertilizer factory supply. Later used for Refinery complex's electricity generation.It will meet entire domestic fuel demand in nigeria excluding government's ailing Refineries as well as export of refined products.About 50million litres or 13million gallons of Emo V, quality gasoline and 17million litres or 4.5m.gallons or diesel daily .It also includes aviation fuel and plastic products.
9.0.Summary
In the summary,oil Refineries transform crude oil into Petroleum products like petrol diesel oil asphalt foundation heating oil kerosene, Petroleum naphtha and liquified natural gas to name a few.They have three major steps : separation,conversion and treatment.The first step involves crude oil piping moving through hot furnaces and moving liquid and vapors into distillation units.In these units the liquids as well as vapors separated into fractions according to respective boiling points.Begining from the lighter fractions to vapourise and grow to the tower top, condense back to liquids;this includes liquefied Refinery gas and gasoline,to the medium weight liquids like kerosenee,distillates located in distillation tower's middle onwards to heavier fractions liquids like gas oils are in the distillation tower separated lower down . Conversion as the next step with heaviest fractions further processed into lighter higher value products like gasoline.This happens in the exclusive unit composed of thick Walled reactors furnaces network and heat exchangers among other vessels.
The benefits to an economy include Energy security,an economy selfdependence on her self has better energy security.Economic growth oil industry generates revenue and growth , increase job creation and forex revenue and foreign currency earnings by exporting oil to generate forex earnings.
Since mid 50s when oil has been beneficial to global economy plus functioning Refinery,is an immense benefit for a country to have excess refined products.
10.Recent Developments and the Future of refining.
They were forced to adapt to major changes over time.A switch for instance to unleaded petrol around 1990;sulfur dioxide emissions reduction from ships requires scrubbers Installation or switch to NLNG and general fall in the fuels sulfur contents.
Construction architectures have also changed currently capable of high octane numbered gasoline components like regenerative catalytic reforming, alkylation, isomerisation etc.To meet rising demand for unleaded petrol and remodeling instead of new desulfurization units' construction in an attempt to cope with products sulfur contents forecast reduction and specifically diesel fuel.
The growing steady consumption of Petroleum requires increased refining capacity.The industry witnesses the disappearance of the unprofitable small size gave way to less pollution hungry low sulfur content big sized Refineries witnessing the rise of modular Refineries.The Asia and African markets badly needed experienced Investors to make it happen.Ships currently also used low sulfur content fuels that was mandatory in 2020.Evident of growing stringent environmental specification for light Products. The emergence of lighter crude oil than the previous discoveries around the 2nd world war compared to previous times.The risk of shale oil or Light tight oil due to their density API degree between 40-45 very low.The reason for construction of new Refinery with demand to sag in the next thirty years is quite scanty.Although refining situation Today better than the last thirty years.Margins and profitability expected to decline as was the case in eighties, expected to shift Energy Market in favour of renewables.Although larger Refineries would continue to play a bigger role in subsaharan Africa where the industry is still a non starter.
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