INTEGRATED PRODUCTION FOR OIL REFINERIES AND PETROCHEMICAL PLANTS

In an increasingly globalised commodity market and under continually changing economic scenarios, oil, gas and petrochemical plants are forced to improve their operation practices in order to remain competitive. One strategy that can be adopted is to exploit the synergy between oil refineries and petrochemical plants through the strategy of integrated production. In this work, issues of integrated production strategy with respect to profitability, implementation and flexibility are explored. Profitability is the key motivation for any plant to change its operation practices. Three options for the strategy of integrated production are considered: integration of final products, integration of intermediate products, and integration of processing units. Decisions are made on the allocation of material resources, the distribution of products and the operating conditions of process units. These decisions are optimised for maximum profit while satisfying all production constraints. In the integrated production of an oil refinery and a petrochemical plant, propylene, naphtha, gasoil and pygas are selected for integration. The benefits of the integrated production strategy are lower costs and higher profits to the integrated plants. Systematic implementation of integrated production strategy is carried out by evaluating the necessary condition and generating an interaction model to bridge information flow between the two plants. Sensitivity analysis is used to evaluate the necessary condition for integrated production. The interaction model regulates the required information !low between the two plants and screens for options of integrated production network. Flexibility of integrated production plan is studied by varying demands and prices of exchanged materials. For an integrated production plant to be flexible, it has to remain feasible even when these parameters change. Flexibility analysis allows steps to be carried out at an early stage to ensure feasibility of the integrated production plan. All integrated production planning problems are formulated as nonlinear programming problem (NLP) and solved using the modular sequential optimisation approach. Case studies are performed to demonstrate how the three issues are addressed

Petroleum Refining and Petrochemical Industry Integration and Coordination under Uncertainty

Petroleum refining and the petrochemical industry account for a major share in the world energy and industrial market. In many situations, they represent the economy back-bone of industrial countries. Today, the volatile environment of the market and the continuous change in customer requirements lead to constant pressure to seek opportunities that properly align and coordinate the different components of the industry. In particular, petroleum refining and petrochemical industry coordination and integration is gaining a great deal of interest. However, previous research in the field either studied the two systems in isolation or assumed limited interactions between them. The aim of this thesis is to provide a framework for the planning, integration and coordination of multisite refinery and petrochemical networks using proper deterministic, stochastic and robust optimization techniques. The contributions of this dissertation fall into three categories; namely, a) Multisite refinery planning, b) Petrochemical industry planning, and c) Integration and coordination of multisite refinery and petrochemical networks. The first part of this thesis tackles the integration and coordination of a multisite refinery network. We first address the design and analysis of multisite integration and coordination strategies within a network of petroleum refineries through a mixed-integer linear programming (MILP) technique. The integrated network design specifically addresses intermediate material transfer between processing units at each site. The proposed model is then extended to account for model uncertainty by means of two-stage stochastic programming. Parameter uncertainty was considered and included coefficients of the objective function and right-hand-side parameters in the inequality constraints. Robustness is analyzed based on both model robustness and solution robustness, where each measure is assigned a scaling factor to analyze the sensitivity of the refinery plan and the integration network due to variations. The proposed technique makes use of the sample average approximation (SAA) method with statistical bounding techniques to give an insight on the sample size required to give adequate approximation of the problem. The second part of the thesis addresses the strategic planning, design and optimization of a network of petrochemical processes. We first set up and give an overview of the deterministic version of the petrochemical industry planning model adopted in this thesis. Then we extend the model to address the strategic planning, design and optimization of a network of petrochemical processes under uncertainty and robust considerations. Similar to the previous part, robustness is analyzed based on both model robustness and solution robustness. Parameter uncertainty considered in this part includes process yield, raw material and product prices, and lower product market demand. The Expected Value of Perfect Information (EVPI) and Value of the Stochastic Solution (VSS) are also investigated to numerically illustrate the value of including the randomness of the different model parameters. The final part of this dissertation addresses the integration between the multisite refinery system and the petrochemical industry. We first develop a framework for the design and analysis of possible integration and coordination strategies of multisite refinery and petrochemical networks to satisfy given petroleum and chemical product demand. The main feature of the work is the development of a methodology for the simultaneous analysis of process network integration within a multisite refinery and petrochemical system. Then we extend the petroleum refinery and petrochemical industry integration problem to consider different sources of uncertainties in model parameters. Parameter uncertainty considered includes imported crude oil price, refinery product price, petrochemical product price, refinery market demand, and petrochemical lower level product demand. We apply the sample average approximation (SAA) method within an iterative scheme to generate the required scenarios and provide solution quality by measuring the optimality gap of the final solution

Synthesis of Optimal Enterprise Networks between Bio-refinery and Petroleum Refinery

The production of transportation fuels from the conversion of biomass into gasoline and diesel in a bio-refinery is an attractive, clean, carbon neutral and sustainable process. The economics of standalone bio-refinery can be improved via integration with an existing petroleum refinery, whereby bio-refinery intermediates can be upgraded using the existing petroleum refinery infrastructure. The current literature considered only limited materials integration between bio-refinery and petroleum refinery. In this work, an efficient mathematical modeling approach for synthesizing optimum enterprise networks between bio-refinery and petroleum refinery is proposed for the utilization of materials and hydrogen across the enterprise

A framework for the near-real-time optimization of integrated oil & gas midstream processing networks

The oil and gas industry plays a key role in the world’s economy. Vast quantities of crude oil, their by-products and derivatives are produced, processed and distributed every day. Indeed, producing and processing significant volumes of crude oil requires connecting to wells in different fields that are usually spread across large geographical areas. This crude oil is then processed by Gas Oil Separation Plants (GOSPs). These facilities are often grouped into clusters that are within approximate distance from each other and then connected laterally via swing lines which allow shifting part or all of the production from one GOSP to another. Transfer lines also exist to allow processing intermediate products in neighbouring GOSPs, thereby increasing complexity and possible interactions. In return, this provides an opportunity to leverage mathematical optimization to improve network planning and load allocation. Similarly, in major oil producing countries, vast gas processing networks exist to process associated and non-associated gases. These gas plants are often located near major feed sources. Similar to GOSPs, they are also often connected through swing lines, which allow shifting feedstock from some plants to others. GOSPs and gas plants are often grouped as oil and gas midstream plants. These plants are operated on varied time horizons and plant boundaries. While plant operators are concerned with the day-to-day operation of their facility, network operators must ensure that the entire network is operated optimally and that product supply is balanced with demand. They are therefore in charge of allocating load to individual plants, while knowing each plants constraints and processing capabilities. Network planners are also in charge of producing production plans at varied time-scales, which vary from yearly to monthly and near-real time. This work aims to establish a novel framework for optimizing Oil and Gas Midstream plants for near-real time network operation. This topic has not been specifically addressed in the existing literature. It examines problems which involve operating networks of GOSPs and gas plants towards an optimal solution. It examines various modelling approaches which are suited for this specific application. It then focuses at this stage of the research on the GOSP optimization problem where it addresses optimizing the operation of a complex network of GOSPs. The goal is to operate this network such that oil production targets are met at minimum energy consumption, and therefore minimizing OpEx and Greenhouse Gas Emissions. Similarly, it is often required to operate the network such that production is maximized. This thesis proposes a novel methodology to formulate and solve this problem. It describes the level of fidelity used to represent physical process units. A Mixed Integer Non-Linear Programming (MINLP) problem is then formulated and solved to optimize load allocation, swing line flowrates and equipment utilization. The model demonstrates advanced capabilities to systematically prescribe optimal operating points. This was then applied to an existing integrated network of GOSPs and tested at varying crude oil demand levels. The results demonstrate the ability to minimize energy consumption by up to 51% in the 50% throughput case while meeting oil production targets without added capital investment.Open Acces

Global optimisation of large-scale quadratic programs: application to short-term planning of industrial refinery-petrochemical complexes

This thesis is driven by an industrial problem arising in the short-term planning of an integrated refinery-petrochemical complex (IRPC) in Colombia. The IRPC of interest is composed of 60 industrial plants and a tank farm for crude mixing and fuel blending consisting of 30 additional units. It considers both domestic and imported crude oil supply, as well as refined product imports such as low sulphur diesel and alkylate. This gives rise to a large-scale mixed-integer quadratically constrained quadratic program (MIQCQP) comprising about 7,000 equality constraints with over 35,000 bilinear terms and 280 binary variables describing operating modes for the process units. Four realistic planning scenarios are recreated to study the performance of the algorithms developed through the thesis and compare them to commercial solvers. Local solvers such as SBB and DICOPT cannot reliably solve such large-scale MIQCQPs. Usually, it is challenging to even reach a feasible solution with these solvers, and a heuristic procedure is required to initialize the search. On the other hand, global solvers such as ANTIGONE and BARON determine a feasible solution for all the scenarios analysed, but they are unable to close the relaxation gap to less than 40% on average after 10h of CPU runtime. Overall, this industrial-size problem is thus intractable to global optimality in a monolithic way. The first main contribution of the thesis is a deterministic global optimisation algorithm based on cluster decomposition (CL) that divides the network into groups of process units according to their functionality. The algorithm runs through the sequences of clusters and proceeds by alternating between: (i) the (global) solution of a mixed-integer linear program (MILP), obtained by relaxing the bilinear terms based on their piecewise McCormick envelopes and a dynamic partition of their variable ranges, in order to determine an upper bound on the maximal profit; and (ii) the local solution of a quadratically-constrained quadratic program (QCQP), after fixing the binary variables and initializing the continuous variables to the relaxed MILP solution point, in order to determine a feasible solution (lower bound on the maximal profit). Applied to the base case scenario, the CL approach reaches a best solution of 2.964 MMUSD/day and a relaxation gap of 7.5%, a remarkable result for such challenging MIQCQP problem. The CL approach also vastly outperforms both ANTIGONE (2.634 MMUSD/day, 32% optimality gap) and BARON (2.687 MMUSD/day, 40% optimality gap). The second main contribution is a spatial Lagrangean decomposition, which entails decomposing the IRPC short-term planning problem into a collection of smaller subproblems that can be solved independently to determine an upper bound on the maximal profit. One advantage of this strategy is that each sub-problem can be solved to global optimality, potentially providing good initial points for the monolithic problem itself. It furthermore creates a virtual market for trading crude blends and intermediate refined–petrochemical streams and seeks an optimal trade-off in such a market, with the Lagrange multipliers acting as transfer prices. A decomposition over two to four is considered, which matches the crude management, refinery, petrochemical operations, and fuel blending sections of the IRPC. An optimality gap below 4% is achieved in all four scenarios considered, which is a significant improvement over the cluster decomposition algorithm.Open Acces

Insight into the Sustainable Integration of Bio- and Petroleum Refineries for the Production of Fuels and Chemicals.

A petroleum refinery heavily depends on crude oil as its main feedstock to produce liquid fuels and chemicals. In the long term, this unyielding dependency is threatened by the depletion of the crude oil reserve. However, in the short term, its price highly fluctuates due to various factors, such as regional and global security instability causing additional complexity on refinery production planning. The petroleum refining industries are also drawing criticism and pressure due to their direct and indirect impacts on the environment. The exhaust gas emission of automobiles apart from the industrial and power plant emission has been viewed as the cause of global warming. In this sense, there is a need for a feasible, sustainable, and environmentally friendly generation process of fuels and chemicals. The attention turns to the utilization of biomass as a potential feedstock to produce substitutes for petroleum-derived fuels and building blocks for biochemicals. Biomass is abundant and currently is still low in utilization. The biorefinery, a facility to convert biomass into biofuels and biochemicals, is still lacking in competitiveness to a petroleum refinery. An attractive solution that addresses both is by the integration of bio- and petroleum refineries. In this context, the right decision making in the process selection and technologies can lower the investment and operational costs and assure optimum yield. Process optimization based on mathematical programming has been extensively used to conduct techno-economic and sustainability analysis for bio-, petroleum, and the integration of both refineries. This paper provides insights into the context of crude oil and biomass as potential refinery feedstocks. The current optimization status of either bio- or petroleum refineries and their integration is reviewed with the focus on the methods to solve the multi-objective optimization problems. Internal and external uncertain parameters are important aspects in process optimization. The nature of these uncertain parameters and their representation methods in process optimization are also discussed

Framework for operability assessment of production facilities: an application to a primary unit of a crude oil refinery

This work focuses on the development of a methodology for the optimization, control and operability of both existing and new production facilities through an integrated environment of different technologies like process simulation, optimization and control systems. Such an integrated environment not only creates opportunities for op¬erational decision making but also serves as training tool for the novice engineers. It enables them to apply engineering expertise to solve challenges unique to the process industries in a safe and virtual environment and also assist them to get familiarize with the existing control systems and to understand the fundamentals of the plant operation. The model-based methodology proposed in this work, starts with the implementation of first principle models for the process units on consideration. The process model is the core of the methodology. The state of art simulation technologies have been used to model the plant for both steady state and dynamic state conditions. The models are validated against the plant operating data to evaluate the reliability of the models. Then it is followed by rigorously posing a multi-optimization problem. In addition to the basic economic variables such as raw materials and operating costs, the so-called “triple-bottom-line” variables related with sustainable and environmental costs are incorporated into the objective function. The methodologies of Life Cycle Assessment (LCA) and Environmental Damage Assessment (EDA) are applied within the optimization problem. Subsequently the controllability of the plant for the optimum state of conditions is evaluated using the dynamic state simulations. Advanced supervisory control strategies like the Model Predictive Control (MPC) are also implemented above the basic regulatory control. Finally, the methodology is extended further to develop training simulator by integrating the simulation case study to the existing Distributed Control System (DCS). To demonstrate the effectiveness of the proposed methodology, an industrial case study of the primary unit of the crude oil refinery and a laboratory scale packed distillation unit is thoroughly investigated. The presented methodology is a promising approach for the operability study and optimization of production facilities and can be extended further for an intelligent and fully-supportable decision making

Assessment of Lagrangean decomposition for short-term planning of integrated refinery-petrochemical operations

We present an integrated methodology for optimal short-term planning of integrated refinery-petrochemical complexes (IRPCs) and demonstrate it on a full-scale industrial case study under four realistic planning scenarios. The large-scale mixed-integer quadratically constrained optimization models are amenable to a spatial Lagrangean decomposition through dividing the IRPC into multiple subsections, which comprise crude management, refinery, fuel blending, and petrochemical production. The decomposition algorithm creates virtual markets for trading crude blends and intermediate petrochemical streams within the IRPC and seeks an optimal tradeoff in such markets, with the Lagrange multipliers acting as transfer prices. The best results are obtained for decompositions with two or three subsections, achieving optimality gaps below 4% in all four planning scenarios. The Lagrangean decomposition provides tighter primal and dual bounds than the global solvers BARON and ANTIGONE, and it also improves the dual bounds computed using piecewise linear relaxation strategies

Impact of natural gas and natural gas liquids on chemical manufacturing in the United States

Natural gas and natural gas liquids production in the United States has increased dramatically since 2005, due primarily to recent advancements in horizontal drilling and hydraulic fracturing. As raw materials for chemical production, the increased availability, at low cost, of these materials has the potential to change the structure of the United States chemical manufacturing industry. Industry-wide modeling, coupled with region-specific analysis, was used to map potential changes in chemical manufacturing as natural gas liquids continue to expand their influence in the chemical manufacturing industry. A network model was used to analyze technology development and to evaluate trends in the industry based on material flows throughout supply chains. Agent-based modeling and simulation was used for analysis of individual chemical markets and to determine the viability of emerging markets. The network model was used to quantify how downstream chemical supply chains respond to changes in natural gas and natural gas liquid prices. The model was also used to identify new reaction pathways that may become viable as the industry evolves and how those new pathways will impact costs and utility consumption in the system of chemical manufacturing technologies. Using the Four Corners region as a case study, an analytic process was developed and implemented to evaluate greenfield manufacturing based on regional feedstock availability and global chemical markets. Conceptual development of a comprehensive model of the natural gas liquids industry was also completed to map the challenges in developing chemical manufacturing system models that will include the impacts of exports, midstream infrastructure, supply, and new chemical demand.Chemical Engineerin