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PERAC's role in energy conservation.

PERAC's Role in Energy Conservation

Pakistan is only moderately-endowed with natural resources such as oil, gas, coal, wood etc. and is one of the developing countries which depend largely on imported crude oil and finished petroleum products for meeting its energy needs oil and gas accounts for about three quarter of country's energy consumption.

So far as oil concerned about 60 per cent of the total crude oil requirement for petroleum products is currently being met by imports. In addition to imports of crude oil about 6 MM tonnes of finished products are currently being imported. These imports of deficit products is expected to increase to about 15 million tones/year by the end of the century. The refining capacity in the country is thus very small compared to the demand of the products and the refineries which are operating were established at a time when crude oil was very cheap and the trend in those days was such that energy consuming plants and equipments were designed to reduce capital costs at the expense of energy consumption. The same applied to most industries built in Pakistan in the sixties. With spiralling energy costs, this is no more the situation, and worldwide the designs, technologies and operating techniques for industrial plants and equipments have been improving so that energy consumptions are minimum and utilisation of each energy streams available to the country is optimally economic.

In order to keep up with world trends and to sustain a respectable level of economic growth in an overall energy resource deficit environment, Pakistan is faced with a great challenge which calls for planned energy resource conservation and optimum utilization of its available energy resources, particularly in the petroleum sector. Such a course has now become inevitable in view of the instability in the Gulf Region, which has been the source of all imports in the country. The State Petroleum Refining & Petrochemical Corporation (Pvt.) Ltd. (PERAC) was set up in 1974 under the economic reforms order with the objectives to develop and manage petroleum refining and petrochemical industrial sector in the country. National Refinery Limited (NRL) with the total investment of Rs. 10 crore was the first company to be placed under its umbrella. PERAC has since then emerged as one of the major companies of the public sector working directly under the Ministry of Production with a total investment of Rs. 400 crore in its companies and expects to reach Rs. 1300 crore before the end of the century. To fulfill its objectives PERAC is actively engaged in implementation of properly chalked out development strategy based on optimising the usage of the barrel of crude oil through installation of adequate processing facilities and implementation of energy conservation measures.

Energy Conservation

We must realise that a barrel of oil saved is equal to a barrel of oil produced but at a much lesser cost. It is therefore, essential that all efforts are made at all levels to economise the use of energy. There is every need to continuously monitor the use of energy. Developments in processes are continuously taking place which call for studying, particularly for older plants, changes that can be instituted for implementing changes leading to energy conservation. Keeping this in view, energy management and conservation studies were done at National Refinery Limited and as a result of these studies, NRL has identified scheme which with modest investments would reduce energy consumption by around 20 per cent and icncrease throughout capacity of the refinery by around 30 per cent. These schemes are briefly describes as under:

Energy Conservation at NRL

i. Revamp of Crude Distillation Unit:- This project envisaged the reduction of energy losses by improving the efficiency of furnace and by optimisation of heat recovery system, thus providing sufficient energy to process 15,000 bbl/day more of crude oil in the Crude Distillation Unit (CDU). This project is complete and had been commissioned in February 1990. The project would provide 0.6 million tons of refined products with no additional energy inputs, saving thereby about US $ 4.5 million in foreign exchange. The project also establishes a landmark of self-reliance as this is for the first time that a Refinery Project in the country has been completed with maximum utilisation of indigenous resource. All the engineering, fabrication of major portion of equipment, construction/erection and supervision, all done by local consultant/contractor. This experience is now being further utilised in other Revamp Projects of NRL. ii. For improving the efficiency of crude charge heater, a combustion air preheater is being installed to enhance the efficiency of the fired heater. iii. Balancing of the steam system includes elimination of steam venting losses by replacing steam drives for pumps with electrical motors. iv. Heat exchanger train of crude distillation unit of Lube-I Refinery has potential for energy conservation as the system was designed and built in mid-sixties. The project includes re-arrangement of existing heat exchangers and addition of new ones to achive an optimum heat transfer. v. Heat exchangers for Kero Hydrobon which is envisaged to increase the heat duties of feed/effluent heat exchangers to reduce the fuel oil, fired in the furnace of the unit to the extent of 20,000 tons/yr. vi. Revamp - II Project: Phase II of Revamps at NRL which is under implementation also aims at reducing energy consumption level of the refinery and improving the operating efficiency of equipment manpower. The phase V consists of the followings:

a) B&M of Platforming and Hydrobon Units:- This project envisages balancing and modernisation of Platforming and associated Hydrobon Units to process surplus naphtha to upgrade it to 28,000 tons of High Octane and 1750 tons of LPG per year. b) Co-generation of Power:- This project would conserve energy through effective utilisation of high pressure steam already available in the refinery to co-generate 7.5 MW of electricity through an extractive condensing type steam turbine. c) Process Modification of Lube-I: This project envisages process modification at downstream lube unit of Lube-I refinery in order to improve overall thermal efficiency of heat exchanging and solvent recovery equipment. These modifications would result in additional production of 15000 metric tons of lube base oils.

Hydrocracker Project

The existing processing configuration of our crude oil refineries at Karachi is not optimal as about 35 per cent output of the refineries is heavy residue (long residue) which has price much lower than the feed-stock (crude oil). This low value long residue has the potential of being converted into petroleum fuels which are much higher in value than the crude oil feed and which are currently being imported by spending huge amounts of valuable foreign exchange. Towards this end Hydrocracker Project is being set up to bring processing configuration of existing Karachi Refineries in line with modern oil refineries of the world. This project would be able to upgrade total quantities of long residue available from Karachi Refineries to produce about one million tonnes of deficit premium products such as Diesel Oil, Kerosene/Jet Fuels, Hy-Octane Motor Gasoline and LPG. With the addition of the Hydrocracker, the productions slate of existing crude refineries would become more value added as from the same barrel of crude oil currently being processed in the country, maximum yields of premium products can be obtained. The project on the average is expected to save US $ 100 million per year net (after paying for the cost of feedstock in foreign exchange at import price), which amounts the country can spend on import of other deficit petroleum products or can plough this money for exploitation of oil and gas in the country.

PERAC R&D Centre

To provide back-up services for the development of petroleum refining and petrochemical products and technology, PERAC is executing an R&D Project as a cost of Rs. 9.00 crores. It will carry out bench scale and semi-commercial pilot plant research and specialised analytical studies including work on environmental pollution controls. Total foreign exchange requirement of the scheme is provided by UNDP in the form of grant-in-aid.

Establishment of Energy Conservation Cell At ENAR

There is a need for the industrial organisations to adopt such energy efficient measures and policies which would result in reduction of their overall cost of production, PERAC has established an Energy Conservation Cell (ECC) at ENAR Petrotech Services Ltd. Over the past few years, ENAR has undertaken a number of initiatives to promote the concept of energy efficiency in the country and energy utilisation efficiency of about twenty-five major energy consuming plants under MOP are being monitored on a monthly basis. A monthly report on the status of energy utilisation efficiency of each plant is submitted to the Ministry. Energy cost has recently been included as an index in monitoring the overall performance of the plants.

Awareness Programme

In order to induce the awareness for energy conservation amongst the plant manager a National Symposium on energy conservation was conducted for the executive management in 1984 by ENAR Petrotech Services, which was a big success and promoted USAID Mission in Pakistan to allocate a portion of its energy sector loan specifically for the energy conservation.

Later on, PERAC joined hands with ENAR Petrotech Service and ENERCON to organise International Energy Conservation Symposium as an annual feature to create awareness regarding energy conservation in the country and provide an opportunity to exchange technical information on energy conservation technologies and appreciation at local and international level. The theme of the Symposium "Working together for an Energy Efficient Future" represents cooperation among countries at various stages in their development, among various government agencies, between public and private sector, between educational institutions and industries, between economists and engineers, to promote Energy Efficiency in all walks of life. The last of such Symposium was held in May 1990.

Dr. M.H. Chaudhry, Chairman, PERAC
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Title Annotation:State Petroleum Refining and Petrochemical Corporation Ltd.
Author:Chaudhry, M.H.
Publication:Economic Review
Date:Feb 1, 1991
Words:1638
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