Introduction

Chapter 1

INTRODUCTION

Introduction

There is an ever-increasing demand of the energy all over the world.

The most important sources that have been utilized over the centuries are the fossil
fuels. These include coal, natural gas and crude oils. But these reserves are limited
and are going to end in the next few decades. So there is a need to use them as
efficiently as possible. Another possibility is to upgrade the low quality fossil fuels
to more valuable ones. The current project is based on the same idea.
Crude oils differ in their compositions, both in molecular weight and
molecular type of the hydrocarbons present. A crude oil contains a very wide range
of components, from light gases having boiling points below the freezing point of
water (0 C) to those having boiling points exceeding several hundred degrees
centigrade. A sample profile of a crude oil is shown in figure 1.

Figure 1. Distillation Analysis of a Crude Oil

The figure shows that a crude oil contains up to 50% residual oils that
have a boiling point in excess of 370 C. The remaining 50% are the distillate fuels
or the transportation fuels. These include LPG, naphtha, kerosene and diesel. The
cuts of these fuels are listed in table 1.

Introduction

Table 1. Boiling Cuts of Different Fuels

Fuel (Fraction)
LPG and Gases
Light Naphtha
Heavy Naphtha
Kerosene
Diesel

Boiling Range
(C)
<25
25-100
100-150
150-225
225-350

With the development of more efficient fuel engines, especially for

transportation, there has been a gradual increase in the demand for the diesel fuels,
jet aviation fuels (kerosene), and motor gasolines. The requirement of any particular
fuel is strongly dependent upon the environmental conditions of the region. Lighter
fuels like gasoline have greater demand in cold countries like those in Europe. On
the other hand, diesel range fuels are relatively widely used in hot environments like
Pakistan. Therefore, the project aims at maximization of middle distillates (diesel
and kerosene).
On the other side, the demand for the residual oils is rapidly
decreasing. This is due to a number of factors, the most important being their high
viscosity and low mobility, their high boiling points and very high level of
contaminations. The major contaminants present in the fuel oils are sulfur and
nitrogen that produce environmentally-hazardous gases on burning. Other
contaminants include metals like nickel, vanadium, iron, lead, and mercury. All
these are highly dangerous to the human life. Environmental regulations are
becoming strict, and it is often very difficult to meet the standards while using these
fuels.
Another aspect is that the oil reserves of the world are rapidly
declining. Therefore, the crude oils are becoming heavier and heavier, and also
more and more contaminated. A result of this situation is that now even those crude
oils are being considered for use that had been rejected in the past.

Introduction

Since the refiners must make products in harmony with the market
demand, they need to convert the residual oils into transportation fuels, and also to
reduce the contaminants present. The reduction in boiling point is achieved only by
reducing the molecular weight of the hydrocarbon molecules, and this is done by
breaking the carbon chain, or cracking. The products of the cracking are light
intermediate distillates and gasoline. Olefins are also produced in the cracking
process. They find wide applications as intermediates and in polymer industry.
The economic factor also goes to the favor of conversion of heavier
fuels to lighter ones. The profit margin associated with the processing of residual oil
is very high. The feedstocks are heavy oils and residues that have a market price
comparable or even less than the crude oil. (330 $/MT of fuel oil compared with
70 $/Bbl of crude oil, as on August 16, 2006). On the other hand, the products are
transportation fuels that have a price almost twice or even greater as compared to
that of the feedstock ($719/MT for kerosene and $653/MT for high-speed diesel).
There is also one major problem associated with the processing of
residual oils. Due to high contamination levels and poor flow properties of the
residual oils, and because of the large amount of energy required to crack the
molecules, these plants require a very high capital investment. It is estimated that
the cost of processing the residues of a refinery (about 40-50% of the total crude
being processed) is approximately of the order of the cost of the entire plant. This
factor is so important that many industries are not able to install residue-processing
units, even when the overall economics is favorable.
All the above reasoning is simplified below in order to show the
importance of the project.
1.
2.
3.
4.
5.

The reserves of conventional crude oils are rapidly declining.

The residual oils constitute a very large fraction of a crude oil.
The demand for transportation fuels is growing.
The demand for residual oils is declining due to environmental regulations.
The profit margin associated with the processing of residues is very high.