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Business plan for a mini refinery distillation unit. Mini-refinery design

Ready-made business plan for the construction of an oil refinery (refinery) with a capacity of 5 million tons per year developed in August 2018 d. specially for the oil refining industry according to the author's methods of ECC "Invest-Project" taking into account international recommendations UNIDO, therefore, it can be used both for internal purposes and for presentation to Russian and foreign banks, investors, partners, authorities.

Settlement date: 22.08.2018.

Payment currency: ruble.

Planning period: 12 years by year.

Planning methodology: UNIDO international recommendations, own methods.

The purpose of the business plan: building a financial model and calculating the key financial, economic and marketing parameters of the project for the construction of an oil refinery (refinery) to confirm its economic efficiency and attract investment.

The business plan contains consolidated data on the project, reflects the concept of creating an enterprise and is a technical task for the further development of design and construction documentation, coordination with contractors, investors, and authorities.

Production capacity of the enterprise: before 5 million tons of raw materials per year.

Output Structure

Need of an oil refinery (refinery) for investments

Investment is required to implement the project *** billion rubles from two sources:

*** billion rubles at the expense of the project owner's own funds ( ** % investment),

*** billion rubles in the form of a bank loan at a rate 14,0 % per annum ( ** % of investments), repayment of the loan body - from the **-th to the **-th year inclusive, payment of interest - from the moment the tranche is received.

Total term of use borrowed money - ** of the year.

Interest will be charged on the loan *** million rubles

The need of an oil refinery (refinery) for land resources

The size of the site, taking into account fire breaks for the construction of the refinery as a whole, taking into account the commodity park and off-site facilities, is estimated at *** ha.

Project implementation timeline:

start of implementation: I quarter. 2019,

refinery design and construction stage: ** years,

commissioning and start of processing of raw materials: ***,

reaching design capacity: ***.

Industry Marketing Review

In 2017, oil and gas condensate production in Russia decreased by 0,1 % and amounted to 546,8 mln t. As of January 1, 2018, oil and gas condensate (petroleum feedstock) were produced 288 organizations holding licenses for the right to use subsoil.

In 2017, Russia increased oil exports by 1,1 %, before *** million tons. In 2017, the average annual price for Russian oil on the world market reached 53,1 dollars / barrel According to Rosstat, the average annual price of oil producers on the Russian market in 2017 was *** thousand rubles / t.

According to Rosstat, *** million tons of oil goes for processing - this is ** % of all oil produced.

According to the Ministry of Energy of the Russian Federation, in 2017 Russian refineries produced the following types of oil products in total:

motor gasoline - *** million tons;
diesel fuel - *** million tons;
aviation kerosene - *** million tons;
fuel oil - *** million tons

In 2017, the depth of oil refining for the first time reached 81,0 %.

In Russia, in 2017, producer prices for motor gasoline increased by 12 % (*** thousand rubles/t), for diesel fuel - by 20 % (*** thousand rubles/ton). Prices for fuel oil and road oil bitumen increased by 59 % And 68 %. The average annual price for fuel oil was *** thousand rubles/t, bitumen cost *** thousand rubles / t.

The average retail price for AI-92 gasoline in 2017 was set at *** rub./l., AI-95 gasoline cost *** rub./l., diesel fuel - *** rub. / l.

The tax component in the final price of each liter of motor fuel sold in the country is about 60 %.

Export of petroleum products in 2017 amounted to 148 million tons

Technical and economic indicators of an oil refinery (refinery)

Prices for the company's products

Products	base price, rub. / T	discount, %	opt. price, rub. / T	revenue, rub. / year
Diesel fuel

Road bitumen
For power generation, losses
Total:				*** billion rubles

Thus, the average annual revenue of the enterprise will be *** billion rubles.

Excises on petroleum products

* According to art. 193 part 2 of the Tax Code of the Russian Federation from 08/03/2018.

Key indicators of the project

Index	Meaning
Production capacity, t / year
Production capacity, t / month
Revenue, rub. / month
Revenue, rub. / year
Cost of production, rub. / T
Average price of products sold, rub. / T
Cost of processing, %

When the production and economic parameters of the business plan for the project are met, the following performance indicators will be achieved.

Project performance indicators

Name of indicator	Meaning	Dimension
General indicators of the project
Total revenue for the planning period		billion rubles
Disposals for current activities		billion rubles
Operating balance		billion rubles
Net profit of the project		billion rubles
Amount of investments		billion rubles
Property on the balance sheet at the end of the planning horizon		billion rubles
Return on sales for the whole project
Net profit margin
Net profit per month at the end of the forecast period		billion rubles / month
Sales at the end of the forecast period		billion rubles / month
Indicators for the lender / lender
Amount of own funds		million rubles
Amount of borrowed funds		billion rubles
Total funding	*******	billion rubles
Equity to Debt Ratio (D/E)
Loan rate (in nominal prices)
Accrued interest on loans		million rubles
Duration of repayment of the loan body		months
Loan terms		interval, years
Investment indicators of the project
Discount rate, annual
Discount rate, monthly
NPV of the project at the time of its inception		billion rubles
Project PI		once
Project IRR
Payback period (undiscounted)		interval, years
Payback period (discounted)		interval, years

Net present value(Net Present Value, NPV) of the project for the forecast period is *** billion rubles at discount rate 14,0 % per year (1.10% per month). When assessing the NPV value, it is important to take into account that the project is being implemented beyond the planning horizon.

Project Profitability Index, or the coefficient of return on investment funds (Payback Investments, PI) = ***. This means that for every ruble invested, the project will generate over the forecast period *** rub. (including discounting).

Internal rate of return(Internal Rate of Return, IRR) - ***%. This indicator demonstrates the stability of the project in relation to a possible increase in discount rates, construction and installation works and risks.

Ready-made business plan for an oil refinery (refinery) 153 pages, 44 tables, 34 graphic arts, 14 diagrams and 6 drawings.

Buy ready-made or order an individual business plan for the construction of an oil refinery (refinery): +7 (495) 617.39.02.

A completed business plan can be modified for the project:

By power(1, 2, 3 or 10 million tons per year);
By place location of the plant (Bryansk, Volgograd, Samara, Orenburg, Irkutsk regions, Krasnoyarsk, Krasnodar or Perm regions, Tatarstan, Bashkiria, YNAO, Kazakhstan, Kyrgyzstan);
by output structure products;
at the cost of purchasing raw oil;
by source and terms of financing, etc.

2. MARKETING REVIEW OF THE MARKET

2.1. Inflation and GDP in Russia, 2003-2020

2.2. Analysis of the oil market in the Russian Federation

2.2.1. Oil production in Russia

2.2.2. The main regions of oil production in the Russian Federation

2.2.3. Production capacity for oil production

2.2.4. Oil resources of the Russian Federation

2.2.5. Export of crude oil

2.2.6. Oil prices

2.3. Classification of petroleum products

2.4. The market of oil products in the Russian Federation

2.4.1. Production of petroleum products

2.4.2. Producer prices for petroleum products

2.4.3. Retail prices for petroleum products

2.4.4. Export of petroleum products

2.5. Oil refineries in Russia

2.6. TOP-10 Russian refineries

2.7. Register of Russian refineries

2.8. Modernization of refineries in the Russian Federation

2.9. Modernization of the ROSNEFT refinery

2.9.1. JSC "Kuibyshev Refinery"

2.9.2. RN-Tuapse Refinery

2.9.3. Achinsk Oil Refinery VNK

2.9.4. RN-Komsomolsk Refinery

2.9.5. Saratov Oil Refinery

2.9.6. Ryazan Oil Refining Company

2.10. Refineries under construction and put into operation after 2000

2.10.1. JSC "Taneco"

2.10.2. Antipinsky Oil Refinery

2.10.3. Ilsky oil refinery

2.10.4. Novoshakhtinsk Oil Products Plant

2.10.5. Anzherska oil and gas company

2.10.6. Volkhov Oil Refinery

2.10.7. Yenisey LLC (Usinsky Oil Refinery)

2.10.8. OOO VPK-Oil (Kochenevsky Oil Refinery)

2.11. Structure of an oil refinery

3. PRODUCTION PLAN

3.1. Project production parameters

3.2. Oil refining plan

3.3. revenue plan

3.4. Operating cost parameters

3.5. Parameters of direct production costs

4. PROJECT STAFF

4.1. Need for staff and payroll

5. INVESTMENT PLAN

5.1. Structure and volume of necessary investments

5.2. Calendar plan for financing and project implementation

6. ASSESSMENT OF RISKS AND WAYS TO REDUCE THEM

6.1. Qualitative risk analysis

6.2. Break even

6.3. NPV sensitivity analysis

7. FINANCIAL PLAN OF THE PROJECT

7.1. Basic assumptions for calculations

7.2. Cash flow plan

7.3. Profit and loss plan (PLO)

7.4. Excises on petroleum products

7.5. Refinery taxation

7.6. Investor income forecast

7.7. Project owner income forecast

7.8. Financial analysis of the project

8. ABOUT THE BUSINESS PLAN DEVELOPER

Total 153 pages, 44 tables, 34 graphic arts, 14 diagrams and 6 drawings.

LIST OF TABLES, GRAPHS, CHARTS

List of tables

Table 1. The structure of output.

Table 2. Prices for the company's products.

Table 3. Excises on petroleum products.

Table 4. Key indicators of the project.

Table 5. Processing of raw materials and output of products (t / year.).

Table 6. Structure of investments.

Table 7. Distribution of tax deductions by budget levels.

Table 8. Project performance indicators.

Table 9. Largest oil producing companies in the Russian Federation, 2017, million tons

Table 10. Key indicators for the oil resources of the Russian Federation.

Table 11. List of oil and condensate fields in Russia.

Table 12. Export of crude oil in value and volume terms, 2010-2017.

Table 13. World prices for oil and natural gas in 2010-2017, USD/bbl

Table 14. Average producer prices for oil by federal districts, 2013-2018, RUB/t

Table 15. Production and refining of oil in Russia in 2010-2017

Table 16. Production of main oil products in the Russian Federation, 2012-2017, thousand tons.

Table 17. Average annual producer prices for the main oil products, rub./tn.

Table 18. Average producer prices for refined products in the Russian Federation, 2012-2017, rub. / T.

Table 19. Retail fuel prices, 2012-2018, rub. / l.

Table 20. Export of petroleum products in value and physical terms, 2010-2017

Table 21. TOP-10 Russian refineries in 2017.

Table 22

Table 23. The program of modernization of the refinery of the company "NK Rosneft".

Table 24. Project parameters.

Table 25. Plan for the production of petroleum products, 2019-2030, tons

Table 26. Revenue plan by years.

Table 27. Parameters of current costs.

Table 28. Plan of current expenses by years.

Table 29. Parameters of direct costs.

Table 30. Plan of direct costs by years.

Table 31. Refinery and payroll personnel.

Table 32. Structure of investments.

Table 33. Schedule of financing and implementation of the project.

Table 35. Calculation of the break-even point.

Table 36. Sensitivity of NPV to changes in key project parameters.

Table 37. Cash flow plan by years.

Table 38. Profit and loss plan by years.

Table 39. Excise rates for petroleum products.

Table 40. Taxation for the planning period by years.

Table 41. Plan for obtaining and returning funding.

Table 42. Investment performance indicators.

Table 43. Calculation of the NPV of the project.

Table 44. Financial analysis of the project (year 12).

List of charts

Graph 1. Production plan (t / year).

Chart 2. Dynamics of receipt of proceeds (rubles / year).

Chart 3. Dynamics of current costs.

Graph 4. Dynamics of direct costs.

Chart 5. Dynamics of net profit.

Chart 6. Collection and repayment of debt.

Graph 7. NPV of the project and undiscounted cash flow.

Chart 8. Dynamics of inflation and GDP in Russia, 2003-2020 (forecast), %.

Chart 9. Oil production in the Russian Federation, million tons

Graph 10. Dynamics of crude oil exports in physical terms, 2010 - 2016, t.

Chart 11. Dynamics of average prices for crude oil in the Russian Federation, 2013-2018, RUB/ton

Chart 12. Dynamics of primary oil refining in the Russian Federation, 2010-2017, million tons

Chart 13. Depth of crude oil refining in the Russian Federation, 2010-2016, %.

Chart 14. Change in average annual producer prices for basic oil products, rub. / tn.

Chart 15. Dynamics of average producer prices for main oil products, 2012-2017, rubles per ton.

Chart 16. Dynamics of retail fuel prices in the Russian Federation, 2012 - 2018, rub. / l.

Chart 17. Dynamics of exports of petroleum products in physical terms, 2010-2017, tons

Chart 18. Dynamics of exports of petroleum products in value terms, 2010-2017, million USD

Chart 19. Capital expenditures for the modernization of leading oil refineries.

Chart 20. Plan for the commissioning of installations that affect the depth of processing, 2014-2020.

Chart 21. Dynamics of production (t/year).

Chart 22. Dynamics of revenue receipt.

Chart 23. Dynamics of current costs, rub.

Chart 24. Dynamics of direct costs, rub.

Chart 25. Calculation of the break-even point.

Chart 26. Sensitivity of NPV to changes in key project parameters.

Chart 27. Revenue, costs, profit.

Chart 28. Dynamics of net profit.

Chart 29. Financial results.

Chart 30. Collection and repayment of debt.

Chart 31. Debt service.

Chart 32. Sensitivity of NPV to the discount rate.

Chart 33. NPV of the project and undiscounted cash flow.

Chart 34. Payments to the investor on an accrual basis.

List of diagrams

Diagram 1. Revenue structure.

Diagram 2. Distribution of crude oil production between Russian oil companies, 2017,%.

Diagram 3. Distribution of oil production by federal districts, 2017, %.

Diagram 4. Structure of production of main oil products in the Russian Federation, 2017, %.

Diagram 5. Dynamics of the number of vehicles in the Russian Federation, 2010-2017, units

Diagram 6. The structure of the output of petroleum products by the number of producers.

Diagram 7. The structure of output (tons).

Diagram 8. Output volumes (t/year).

Diagram 9. Refinery revenue structure, rub.

Diagram 10. Structure of current costs.

Diagram 11. Structure of direct costs.

Diagram 12. Structure of initial investments.

Diagram 13. Structure of tax deductions.

Diagram 14. Structure of costs in the 12th year of the project implementation.

List of drawings

Figure 1. Refinery block diagram.

Figure 2. Oil reserves in Russia.

Figure 3. Development of the oil industry in 2017.

Figure 4. Crude oil and refined products.

Figure 5. Map of Russian oil refining.

Figure 6. Block diagram of the complex of oil refineries and petrochemical plants of TANECO JSC.

Total 153 pages, 44 tables, 34 graphic arts, 14 diagrams and 6 drawings.

The MINI refinery offered by us for production and turnkey delivery has a number of advantages compared to analogues (despite the fact that the vast majority of diverse projects of atmospheric MINI refineries as a whole have a common processing scheme):

General advantages of our MINI refinery

1. The production time of our MINI refinery, including design, is short, and the price is attractive. When placing an order for several plants, a discount of up to 20% is provided, and installment payment is also possible. Only with us, the commissioning of a plant can include bringing the product to marketable specifications!

2. Our plant, operating on light raw materials (gas condensate, compounded oil) does not require maintenance for 3 years, it is also easy to maintain, which can be carried out within 24 hours, since all plant structures are dismantled and collapsible.

3. The design of our MINI refinery involves not only the basic division into the main oil products - gasoline, diesel fuel, fuel oil, but also allows you to get several intermediate fractions - kerosene, naphtha if desired.

4. The design of our MINI refinery implies a clearer separation by fractions, which is important for obtaining high-quality gasolines by compounding, and also allows you to obtain high-quality diesel fuel during primary processing.

5. The hydrocarbon furnace of our MINI refinery is a vertical double-circuit, which allows us to efficiently serve the entire plant and save on raw materials for the burner. The hydrocarbon furnace is located at a distance of 30-40 meters from the plant, which implies complete operational safety.

6. The installation area of our MINI refinery is small in size: width 6 meters, length 8 meters, maximum height - 15 meters. All this makes it possible to place a plant with a capacity of 27,000 tons / year in a small hangar without any problems.

7. With the design and installation of our MINI refinery, the service of its full automation is offered with the output of the entire process control to a computer in the operator's room.

8. Our MINI refinery is convenient and economical for transportation, because unlike many analogues that require 3-4 euro trucks for transportation, it can be loaded into one euro truck measuring 2.5 * 13 meters (excluding additional metal structures).

Advantages of our MINI refinery complete with cavitation unit

9. The design of our MINI refinery, with additional equipment, can include a cavitation unit, which makes it possible to obtain high-quality gasoline grades AI-92-AI-98 both with and without additives. The cavitation unit makes it possible to obtain high-quality winter diesel fuel from summer diesel fuel, as well as to completely remove high-boiling paraffins from diesel fuel by converting them into a kerosene fraction.

10. Our MINI refinery allows you to go through a complete refining process at minimal cost, similar to large plants that include such expensive technical processes as reforming and cracking. All this became possible when using a cavitation unit in production, which allows not only compounding straight-run gasoline with an additive, but rather increasing the octane number of gasoline without additives and improving its main characteristics using ultrasonic cavitation. All this leads to a synergistic effect of improving the quality of the product.

11. The use of a cavitation unit with our MINI Refinery makes it possible to obtain a high-quality product - gasoline and diesel fuel from raw materials with overlapping fractions, which is possible if the temperature regime is violated in our MINI Refinery and is practically unavoidable in most similar MINI Refineries. Fuel overlap is a major problem with most MINI refineries, but is not a problem with our MINI refinery.

Advantages of our MINI refinery with a cavitation unit when using our developed additive

12. With the delivery of a MINI refinery and a cavitation unit, we offer a stable supply at a low price of an additive of our development, which is a mixture of high-octane components of gasoline and detergent additives, which, without harm to the environment, when adding 2% to straight-run gasoline, increase the octane number up to 30%, as well as improve all other characteristics of commercial gasoline.

ATTENTION: our MINI refinery, despite the high output commercial characteristics of petroleum products, does not include a reformer unit, which makes it possible to obtain a low-sulphur product that corresponds to Euro-3-Euro-4 quality in terms of sulfur content only on low-sulfur oil and gas condensates (no more than 1 % sulfur). All atmospheric MINI refineries of any other modification also DO NOT allow you to get a completely desulfurized product of Euro-5 quality. At the same time, the high content of paraffin in oil for our MINI refinery has not a negative, but a positive effect.

Existing problems

Traditionally, the oil industry has used large-scale refineries supplied with crude oil or natural gas through pipelines or tankers. However, most of the new hydrocarbon discoveries in the world occur in areas where the infrastructure for transportation and processing is either limited or non-existent, so producers are forced to:

either develop expensive infrastructure to transport hydrocarbons to an existing refinery, or build a new refinery close to the field, which requires a huge investment of time and money.
or install a high-tech mini-refinery offered by us for processing raw materials directly at the field or in another place convenient for the customer.

High-tech refineries, modular-block design, have a capacity of 10,000 to 600,000 metric tons of feedstock per year (200-12,000 bbl per day) and can produce a number of different products, including high-octane gasoline, commercial jet fuel, kerosene, arctic and summer diesel fuel, heating oil, asphalt, as well as granulated sulfur from gases, preventing their emissions into the atmosphere.

Two or more plants can be installed on the same site, allowing processing of different types of oil. Also, if one of the installations stops, the others can continue to work.

Description and advantages of installations

The advantage of the proposed installations is the fact that the performance of the refinery can be increased in steps.

Models of high-tech oil refineries can be assembled and put into operation within a few days after the delivery of components to the job site.

The plants, or mini-factories, are fully automated, and after the operator sets all the control points, the temperatures of all products, the process will be controlled automatically.

One operator can cold start the plant in less than two hours and bring it to full capacity. If the characteristics of the products begin to change or an emergency occurs, the mini-factory is automatically transferred to a safe mode without operator intervention, and an indicator lights up on the signal panel indicating the reason for the stop.

The operator must adjust the operation of the system, otherwise the mini-factory will be automatically stopped.

Installation of mini-factory elements

For the installation of elements of a mini - plant, only a flat area or a concrete slab without anchor bolts is required. The refineries offered by us can be manufactured in a matter of months and, upon delivery, launched in a few days without special foundation costs and can produce products, operating on full self-sufficiency without electricity, steam and water. The fuel may be natural gas, naphtha, diesel, or a combination thereof.

Mini-refineries are offered to buyers with a processing capacity of 200 to 12,000 barrels, in terms of raw materials per day and more powerful on special orders. Several distillation products can be produced simultaneously in the distillation process, such as light naphtha, heavy naphtha, kerosene/jet fuel, diesel and heating oil, and heating oil. Each processing plant has a block-modular design and can be easily transported to the source of raw materials or to the pipeline. Small units can be up and running within 48 hours of being delivered to a prepared job site and can be easily moved to a new site with minimal assembly work. Products produced by mini-processing plants can be sold locally or used as raw materials for further processing.

Residual products of oil refining

Residual products of oil refining can be used as fuel for diesel power generators or during the operation of boilers, furnaces, etc. Mini-refineries are especially effective in areas where there is a source of raw materials, but there is not enough refined oil or there is no necessary refining capacity, and where transportation costs are very high, such as in remote areas or on offshore platforms.

The first mini refineries. New approaches to design and equipment

The first mini processing plant was launched thirty years ago. It was a 1,000 bbl/d plant on a single frame that included an electric generator, a horizontally mounted column with manual vertical positioning, and permanently attached manual jacks to remove the block from the truck. The aim was that the plant could be operational within one day of delivery to the installation site, without the use of cranes, concrete foundations or power sources.

The plant was supposed to be moved monthly, however, over time it turned out the following:

1. The mini-factory has been in the original location for several years.

2. Most locations had a source of electricity or, if not available, the required source of electricity would need to be of a significantly higher capacity to power other installations.

3. Cranes were available at most sites so manual jacks were not required. Since there were cranes for installing the blocks, it became possible to use several modules for more free placement of equipment.

After analyzing the operating experience of the first installed mini-mill, a new approach to design and equipment was developed, namely:

Recent advances in system design and construction avoid the use of level control valves, level controllers, glass level indicators and pumps with all ancillary piping. The absence of such devices greatly simplifies the requirements for operation and maintenance of the plant.
The plant is fully automated both for independent operation and for monitoring the work process, so that in the event of a potentially dangerous situation, the plant automatically stops work and a special alarm lets the operator know the reason for the stop.
Additionally, the design provides for a control room and a laboratory.
The scope of delivery includes the necessary set of hand tools and laboratory equipment, as well as the necessary spare parts for two years of operation.

Mini-plant delivery options

In the arctic version

The models are designed to work in the north.
Height above sea level 300 meters
Temperature: from -50°С to +40°С.
These units were installed in January 1995.
The units produce gasoline, drilling mud, winter and summer gasoline and liquid fuels.
Light oil products are used by large oil companies for passenger bus fleet and other transport.
Liquid fuel is supplied for sale to local power and central stations throughout the region.

Products output:

Naphtha 16%
Gasoline 33%
Balance 51%

In tropical version

Models designed to work in the south.
Height above sea level 1350 meters
Temperature: from +1°С to +36°С
These units produce gasoline.

The raw material for the plants is gas condensate, the raw material is fed down pipelines to gas processing equipment, where liquid substances are extracted and processed.

The gas is used in power plants supplying electricity to mining companies in the region for fuel and turbo engines.

Initially 2 units were installed in August 1991. As the pool and electricity consumption increased, 2 other units were installed in January 1992 in order to control the loading of gas condensate. Naphtha can be used as a fuel for turbines, while untreated condensate, due to the presence of heavy metals, can cause wear on turbine blades.

Products output:

Naphtha 65%
Diesel 30%
Balance 5%

Mini-plants are offered with the following parameters:

Note: it is possible to manufacture refineries with a higher capacity by special order.

The above data on the launch preparation time are based on the fact that the construction of auxiliary facilities and equipment has been completed, and there is also a crane at the time the mini-plant kit arrives at the site. In order for a potential customer to calculate the capacity of the plant in metric tons, it is necessary to multiply the number of barrels per day by 0.15893, and then by the specific gravity of the feedstock.

Optional equipment

At the request of the customer, the following additional equipment and material design are offered:

The use of special alloys in the manufacture of a plant for the processing of sour crude oil.
Desalter to remove salt from raw materials.
Hydrotreater for naphtha, jet fuel and diesel fuel to remove sulfur from products.
Reformers for the production of high-octane gasoline.
Gasoline stabilizers to reduce vapor pressure
Vacuum asphalt plants for asphalt production
Execution of units for work in cold and hot conditions, which are equipped with portable laboratories
Plants for the production of granulated sulfur
Catalytic reformer, with separator, hydrotreating, and stabilizer

Brief description of the technological process during operation

High-tech mini refineries

Introduction

The first part of any small refinery application analysis is an initial assessment of its economic viability. This requires an understanding of what a small refinery can do, as well as information on the intended feedstock and in-depth knowledge of local market conditions. Technical issues related to industrial technology or design are rarely important at this initial stage of feasibility.

Efficiency gains from scale-up

Mini refinery (usually<4000 баррелей в сутки) не обладает масштабами производства большого НПЗ (обычно >100,000 barrels per day). The capital cost of processing a liter of crude oil is inevitably high at mini refineries. These economic costs can be balanced by refinery access to cheap crude oil (for example, from remote or non-commercial oil fields) and/or savings in fuel or crude oil transportation costs (usually in remote or inaccessible regions) and/or government subsidies when supporting economic activity in remote regions.

The coastal location of the proposed mini-refinery will be carefully examined in case there is an alternative to imported processed product from the main oil-refining countries. On the other hand, a location in a remote or uninhabited area will provide favorable conditions for the operation of a mini refinery, since long distances and / or road surface conditions increase the cost of transporting imported fuel.

In order to reduce capital costs, a mini-refinery is often set up only as a simple refinery to produce straight-run diesel or kerosene, including naphtha and fuel oil as by-products.

In some cases, it may be economical to use a second distillation column to vacuum refine crude oil from an atmospheric tower into clean heavy diesel (vacuum gas-oil) and heavy residual oil. A thermal cracker or coker to convert some or all of the heavy oil residues into more valuable lighter products is neither practical nor economical at the size of a mini refinery.

Naphtha is the gasoline fraction of crude oil, but it is not used in automotive filling stations without octane enhancement through further processing and/or blending. As a result of the phase-out of tetraethyl lead additives at gas stations in many countries, there is no easy (and therefore cheap) way to increase the octane rating of naphtha on a small scale. The use of a catholic converter to reform naphtha for gas stations is not usually economically justified as the capital cost is high due to the low volume of production given that naphtha consists of no more than 25% crude oil, some of which is consumed during the refining process. The Catholic Converter is likely to increase the cost of mini-refineries for the production of direct distillation products by about 80%-100%

The main difficulty in implementing a mini-refinery project is not deciding what to do with diesel, but inventiveness, regarding, for example, finding the most cost-effective way to sell 50% to 75% of crude oil.

Alternative fuel costs

It is essential that the proposed mini refinery supply the processed product to the target market at more competitive prices than the existing fuel supply. Knowing the local fuel prices (and other available fuels such as gas or LPG) in the target market and their competitiveness is critical to any feasibility study. In some countries, fuel prices in remote regions may receive government subsidies, making it difficult for a refinery to compete in this market.

In some cases (but not often) crude oil can be of very high quality and therefore suitable for use in heavy diesel applications without the need for refining. Although crude oil is not suitable for the general diesel market, provided it is of good quality, it can be used in plant operations (eg pumps on crude oil pipelines).

Raw oil

Straight run product processing is simply rectified by refining crude oil into components to the boiling point. Distillation does not change the molecular structure of the chemical components. Therefore, the natural characteristics of the crude oil (or condensate) and the required specification of the final processed product are the defining indicators of the output of the product from the refinery.

In order to avoid condensation and oiling at the refinery, the highest possible salt content in crude oil is required - 1 kg per 1000 barrels. In the case when the salt level exceeds this indicator, it is necessary to carry out preparatory processes. While the addition of a salt-breaking agent is useful in mini refineries, some fresh water and a means of accommodating the remaining salt water are still needed.

Other undesirable components in crude oil, such as sulfur, will be transferred to the general stream of processed products. The maximum allowable level of sulfur for processed products is usually regulated by the state.

Crude oil with sulfur level<1% будет перерабатываться в пределах допустимых характеристик топлива для дизеля и нафты без необходимости процессов выделения серы. Однако следует учитывать и местные установки, поскольку различия в разных странах могут быть значительными. Приблизительно 70% серы концентрируется в осадках тяжелого топлива. Характеристики топлива могут определять максимальный допустимый уровень содержания серы в сырой нефти, с целью избежать

In conclusion, the optimum feedstock for mini refineries in general is high API quality crude oil or condensate with a relatively high quality diesel component.

The following additions contribute to the economic improvement of the project:

1. In the case of a large number of oil pools, one should choose the field where the quality of crude oil is high, in particular with a high level of diesel sales.

2. If a crude oil pipeline is located nearby, then undesirable oil by-products should be placed in it. Among other things, this will also require an agreement for the purchase of by-products from the refinery by oil companies, pipeline companies and refineries.

3. Find local markets for by-products. For example, naphtha can be used for turbojet engines (but the availability of competitive gas or LPG should be checked) or can be used as a solvent or petrochemical feedstock. In northern climates, naphtha is often used as a well completion antifreeze instead of diesel. The liquid fuel can be used as bunker fuel, boiler fuel or power plant heavy fuel oil if the performance is acceptable.

4. Vacuum distillation separates the heavy diesel (vacuum gas oil) from the residual oil, thus reducing the amount of sludge that must eventually be dealt with. Vacuum gas oil is suitable as a heavy fuel for factories (eg power stations).

5. While heavy diesel as a fuel is not suitable for the usual standard industrial turbines, there are enterprises for the production of turbine generator sets that use naphtha and gas oil vacuum mixture. These turbines are units fitted with ramps/chassis and can complement a product installation. To achieve the planned goals, it should be taken into account that the power consumption of 100 barrels per day of residual oil is 1.5 molecular weight of power plant capacity.

6. Provided the naphtha has the right characteristics, it can be blended with octane boosters such as motor gasoline, toluene, or oxygenate (MTBE/methyl tertiary butane ether) to produce low octane gasoline. However, a relatively large amount of these products is required, which causes significant additional costs for procurement, transportation and storage.

The oil refining business remains interesting and profitable. Sustainability is caused by the constant demand for petroleum products, as well as the low degree of processing, without a large increase in octane. There are sectors that consume heating oil (ships in small ports, boiler houses in cities), heating oil, and diesel fuel (diesel fuel) demanded by agriculture. If you have a sustainable source of oil from an independent producer and have access to a railroad that can transport this resource to the place of processing, then you will be able to offer the market good prices and have a permanent buyer.

Investments: financial section of the business plan

To understand whether you should go into the oil refining business, you need to understand the formula by which it is financed, and this formula is as follows: the availability of oil, logistics to the place (pipe or railroad) and sales. If these three components converge at one point, then investors make a positive decision to build an oil refinery.

Investments in oil refining are returned within three years after the start of investment, including a one and a half year investment period for planning, surveying and construction. Visually, the scheme for making a decision on investing in this project for banks and investors can be represented as shown in the figure. If all three parts converge around a point called a refinery, then a decision is made to invest and build.

Mini refineries

Most small-scale refineries are located in areas where it is unprofitable for large oil companies to operate due to volumes, but this does not reduce consumer demand. Petroleum products are needed always and everywhere. The profitability of a small refinery is about 50-60% per annum, i.е. with the calculated volumes, the investments are returned after three years, taking into account the investment period of one year and two years of construction.

A small oil refinery not only produces fuel: fuel oil, heating oil, diesel fuel, gasoline, but can also provide services to oil producers who do not have their own distillation facilities, but pump 2-5 thousand tons of oil per month. Then the business becomes non-excise in connection with the production of tolling raw materials. There are still quite a lot of such small oil producers in Russia, often working at old fields.

The price of developing a business plan for an oil refinery

Combination of oil refining and oil production

If you are building a refinery, then our experience shows that it is unprofitable to combine this business with oil production and with the marketing business - filling stations. This does not provide additional income, but will make the oil refining business less sustainable and dependent on additional regulation. Your formula for success is to find an old oil depot, restore communication lines (railway) to it, find independent oil producers (or buy small volumes at oil company tenders, but there are usually large lots), conclude sales contracts. Shipment of finished products occurs through self-delivery at 100% prepayment. The marketing strategy will be based on your factory specification.

Experience shows that in order to minimize the risks of environmental requirements that can lead to the closure of an enterprise in which investments start from 15 million dollars, it is best to build it on the basis of an old tank farm. In addition to having a railroad for transporting petroleum products to the base and a number of old overpasses, the base also has facilities for storing finished petroleum products.

Oil Source: Logistics Plan

The source of oil is a key and one of the most difficult parts in the entire plan for the construction and subsequent operation of the refinery. There are two options for delivering oil to the site of the future construction of the enterprise:

railway transport;
pipeline transport.

Delivery of oil by pipeline

There are projects where oil is delivered by pipeline through the Transneft system. However, you may encounter a situation where everything is contracted and there are no volumes. Such projects start from 1 million tons per year, it is almost impossible to obtain volumes and approvals. Usually, in order to obtain these approvals, you need to apply not to Transneft for connection to the system of main oil pipelines, but to an oil producing company.

Delivery of oil by rail

The use of railway transport is one of the most achievable schemes in Russian oil refining, even if this requires the construction of an additional railway line to your site. However, it is better to avoid additional investment in transport logistics and establish your plant on a site that already has a railway line.

Delivery by rail has obvious limitations. It should be taken into account that one tank car is 50-60 tons of oil, and the composition is up to 50 wagons of this type. Thus, at one time you will be able to deliver about 2.5-3.0 thousand tons of oil for processing. A maximum of such a refinery produces up to 50 thousand tons of fuel per month, respectively, about 500-600 thousand tons per year. It is realistic to deliver it only with properly built and thought-out logistics from fields to refineries. The question remains: who will sell you such volumes?

Calculate the refinery business plan only based on the actual volumes of oil that can be delivered to a certain point.

Oil refinery project

When you have decided on the volumes of oil and suppliers with whom you need to sign protocols of intent to sell the agreed volumes, you need to prepare a refinery project, including a business plan and a feasibility study. The project will be based on the volumes that you can deliver to the construction site. If the refinery feasibility study is set up by a well-known refinery company, such as a division of Shell, this will have a positive impact on banks and investors, even if you do not have enough turnover from the company initiating the project.

Refinery projects are often implemented in the former territories of oil bases, because, firstly, there are less requirements on environmental grounds (everything is already polluted), secondly, there is already a railway line to them, and thirdly, they are used to delivering crude oil from deposits. The presence of an oil base, albeit non-working, but really existing, has a positive effect on the investment decision to finance the project.

Marketing plan and sales

One of the easiest parts of your refinery project. Since you start from the tank farm, this means that local sales departments know it. It may not necessarily be gas stations that constantly need good fuel, and due to small volumes they cannot get it from large manufacturers due to the lack of tanks and low turnover, as well as the lack of normal short-term financing. These can be agreements (or preliminary agreements) with municipalities for the supply of M-100 heating oil as fuel for boiler houses. Other customers may be tank farms that have not yet become refineries - they can take in bulk.

The terms for developing business plans on average range from 4 to 20 working days.

General information

The current situation in the oil refining market is significantly different from the situation that was 10 years ago.

There have been many proposals for the manufacture of installations that allow oil processing, do not require additional infrastructure, and which supposedly can be placed on small plots of land.

This option may have been acceptable 10 years ago, but the requirements of regulatory documents and the control of public services that monitor their implementation have become tougher.

These proposals do not have a HISTORY and no one can guarantee that after some time you will find responsible persons after stumbling upon certain difficulties.

Since 1991, NPP NOUprom LLC has manufactured and implemented over 130 mini refinery units in Russia and the CIS countries. We have always followed their work and participated in their development.

Therefore, today the only correct option is the construction of a Mini Oil Refinery in accordance with all standards, according to a project developed and protected in the examination, which excludes all kinds of leads and, as a result, the suspension of already operating production.

Equipment that allows oil processing is currently easy to order and buy at an affordable price ( ATTENTION: the cost is calculated individually). Production of a mini refinery atLLC NPP "NOUprom" is carried out on a turnkey basis, which means you do not needadditional infrastructure cost for your project will be calculated individually.

Our specialists will help design a mini refinery and launch it into production in a short time. Contact us in any way convenient for you, and we will help you buy all the materials for a mini refinery at the lowest price.

Permits for mini refineries

The LLC NPP NOUprom enterprise works according to the legislation of the Russian Federation.

In accordance with Art. 7, clause 1 of Federal Law No. 116-FZ “On Industrial Safety of Hazardous Production Facilities” Art. 20 of Federal Law No. 184-FZ "On Technical Regulation" and Art. 8 of the Technical Regulations of the Customs Union of 10/18/2011 N 010/2011, all manufactured equipment is certified and declared for compliance with safety requirements.

Many companies that do not have the right to manufacture equipment for explosive objects, nevertheless offer their products made "on the knee in the garage." Therefore, we strongly recommend that you, even if you find options for which the price will be much lower, pay attention to the manufacturer's permits, as this may become a "stumbling block" for YOU.

Construction site requirements

The dimensions of the site for the construction of the Mini Refinery depend on the capacity of the planned production and auxiliary infrastructure.

For example:

For a mini refinery with a capacity of 20 thousand tons / year, a tank farm of 1500 m 3 (consists of horizontal tanks), autoloading for 2 cars and railway reception of raw materials for 2 cars, with auxiliary infrastructure (fire extinguishing system, treatment facilities, boiler room, recycling system accidental emissions, etc.) the minimum size of the plot is 2.5 ha, provided that it is of a regular rectangular shape (100*250) and the railway siding is adjacent to one of the short sides;

For a mini refinery with a capacity of 100 thousand tons / year, a tank farm of 15000 m 3 (consists of vertical tanks), autoloading for 8 cars and a railway overpass for 10 cars, with auxiliary infrastructure (fire extinguishing system, treatment facilities, boiler room, torch, etc. .e) the minimum size of the plot is 9.0 ha, provided that it is of regular shape (300*300 or 200*450) and a railway siding runs along one of the short sides of the edge of the plot.

It is important that mini-refineries have already been brought to the construction site, or passed nearby power lines, water supply (if not, it is necessary to make a well and a project for it), a gas pipeline (preferably; for large-capacity production it is mandatory).

When choosing a construction site, the requirements of the Town Planning Code, Federal norms and rules in the field of industrial safety, Sanitary rules and norms, Building norms and rules, and other regulatory documents must be observed. Below are the main (some of them) memory requirements:

According to the requirements of SanPiN 2.2.1 / 2.1.1.1200-03 "Sanitary protection zones and sanitary classification of enterprises, structures and other objects", an oil refinery (including a bitumen plant) belongs to hazard class 1 and has SPZ 1000m. Therefore, within a radius of 1 km from the border of the site should not be: residential development, including individual residential buildings, landscape and recreational areas, recreation areas, territories of resorts, sanatoriums and rest houses, territories of gardening associations and cottage development, collective or individual country and garden plots, as well as other territories with standardized indicators of environmental quality habitats, sports facilities, playgrounds, educational and children's institutions, public health and treatment facilities, facilities for the production of medicinal substances, medicinal products and (or) dosage forms, warehouses of raw materials and semi-finished products for pharmaceutical enterprises; objects of the food industry, wholesale warehouses of food raw materials and foodstuffs, complexes of waterworks for the preparation and storage of drinking water, which may affect the quality of products.

According to the Town Planning Plan, the land plot must be located on industrial lands or on the lands of settlements and have a permitted type of use: industrial enterprisesIhazard class, in compliance with the established SPZ.

According to the requirements of SP 4.13130.2013 Fire protection systems. Limiting the spread of fire at protected facilities. Requirements for space-planning and design solutions from buildings, structures and outdoor installations located on the storage site, fire breaks must be maintained up to the border of the right of way of general railways and public roads, the border of the forest and the area of mass peat, to the banks of rivers and downstream (downstream) piers, river stations, large roadsteads and places of permanent parking of the fleet, hydroelectric power stations, shipbuilding and ship repair plants, bridges, water intakes, etc.

From the territory of the enterprise there must be at least two exits to public roads or dead-end entrances to the territory of the enterprise.

To check the fulfillment of the requirements of clause 3, it is necessary to develop a preliminary master plan for the enterprise, with the placement of all the main technological facilities.

Having no experience in building a miniature, it is difficult to check for compliance of the memory with all the requirements of the Regulatory Documentation and Federal Laws, all the more so to develop a preliminary master plan. We provide services to support the procedure for choosing a storage facility, developing a GP of an enterprise, processing the necessary requests to the appropriate authorities. You can check the cost of these services with our managers.

Venue selection completed! What's next?

Form of ownership of ZU

You can either buy land or rent it. Regardless of the form of ownership, the construction of an oil refinery on it must be agreed with the district administration. In the case of a lease, d.b. public hearings were held to allocate a land plot for the construction of this enterprise.

Preliminary specifications for connection to all engineering networks have been coordinated with the administration and relevant management companies.

Design and turnkey production of a construction site

Design and object begins with the signing of the contract. A mandatory annex to the contract is a list of initial data necessary to start designing and the price for the provision of services. The timing of project development directly depends on the speed with which they will be provided. On average, the period for the development of Project documentation, in the presence of all the initial data, is 6-8 months. Next is the examination. By this time, all TRs should have been received. Depending on the hazard class of the enterprise, the Project undergoes state or non-state expertise. The normative term for the examination is 60 days. The production of equipment for the installation also provides for certain documentation. It is released in 1.5-2 months. after receiving a positive expert opinion. The price of equipment that you can buy from us is competitive ( the cost for your project will be calculated individually).

Enterprise construction

After receiving a positive opinion and collecting the necessary package of documents, you receive a permit for the construction of a mini refinery. In the event that an enterprise of hazard class 3-4 according to the Federal Law of July 21, 1997 N 116-ФЗ “On Industrial Safety of Hazardous Production Facilities”, a construction permit is issued by the local government at the location of the land plot.

Construction begins with geodetic and marking work. The vertical layout of the site is carried out, the earth masses are leveled, the fertile layer is removed

After the geodetic breakdown of the site, the following work begins:

excavation of soil for the foundations of objects.
formwork and foundations
foundation pouring
construction of buildings and structures
arrangement of on-site underground networks
installation of technological equipment
installation of auxiliary equipment
installation of supports
road construction
piping of technological equipment
auxiliary equipment strapping
installation of technological communications
installation of fire lines and equipment.
installation of power supply lines and power consumption; installation of shields.
installation of instrumentation and A lines installation of instrumentation and A switchboards
installation of a boiler room
track arrangement
beautification of the area.

Some of the above types of work can be carried out in parallel, which significantly saves construction time.

Author's supervision

During the construction of a mini refinery, NPP NOUprom LLC carries out field supervision. Depending on the stages of construction, our specialists go to the construction site and identify deviations from design solutions, consult, fill in work logs: architectural supervision log, general work log, concrete work log, etc.

This type of work is necessary in order to identify the violations in time, eliminate them and warn the customer against further material costs.

installation chief

The NPP NOUprom LLC enterprise in Russia does not have a special team for installation work, since construction can be carried out from six months to a year for only one object. There can be several such objects and absolutely in different regions. As a rule, at the construction site it is much more profitable and cheaper at times to hire a specialized installation organization that will carry out the installation according to the project and adjust the equipment. We can offer the help of our specialists, who will constantly be at the construction site and control the work, and the price will be acceptable.

You are lined up, what's next?

Commissioning of the facility to the regulatory authorities.
Gosstroy
Rostechnadzor
Kotlonadzor
Ecology
local administration.

After the commissioning of the facility, you carry out commissioning and receive a PERMIT FOR THE USE OF THE OPERATION OF A FIRE AND EXPLOSION HAZARDOUS FACILITY (according to the old - a Processing License).

LLC NPP NOUprom produces facilities for oil refining in a short time. You can always order the design and further production of a mini refinery from us, as well as buy all this at a low price (the cost is calculated individually).