Title: Modular-mini refineries: A positive strategy for developing economies

Abstract

Modular-Mini refineries are scaled-down versions of standard oil refineries. They vary from simple diesel production units to more sophisticated ones, are less cost intensive. These can be used more flexibly to respond to changes in product demand, particularly in developing economies with reasonable to rich oil resources. Key drivers of Modular refinery market are: • Rise in government initiatives to increase local refining capacities by investing significantly in modular refineries, primarily based on local crude supplies to convert it into ever increasing demand for refined products, to reduce fiscal deficit, ensure security of transportation fuels, enhance power generation and secure LPG supply, quick installation period and lower investment costs. In addition such plants offer great environmental friendliness as compared to standard plants. • Country specific reasons: Nigeria says the gap between petroleum product demand and supply in the country is due to the sub-optimum state of their domestic refineries. Indonesia, an archipelagic country, faces challenges in supplying fuel to various remote regions. Solution evolved is to build mini refineries with appropriate processing capacities to maximize the potential of existing oil reserves, reach remote areas and meet domestic demand. The Modular-Mini refineries tend to be topping or hydro-skimming type that may range from 5,000 to 30,000 BPSD crude capacity. Configuration tends to be simpler and can include process units such as a Crude Distillation Unit, Diesel Hydro-treating, Naphtha Hydro-treating, Reforming, Isomerization, Sulfur treating, etc. Such refineries can be configured and sized to meet target product demands and flexible to expand for future needs. Other benefits include: high quality off site modular fabrication, shorter schedule and possibility for future relocation. Mini refining has been embraced as a positive strategy in developing economies with Nigeria and Indonesia being the lead nations. Also Emirates National Oil Co’ plans to build a 7,500 bpd modular refinery in Fujairah, Iran plans eight new mini-refineries to serve the South Pars gas field, Equatorial Guinea and Angola refinery projects.