Concept
In 2008 the program for the modernisation and revamp of Rafo refinery was initiated. The goals of RAFO’s modernisation are: reverting to gasoil – petrochemicals production, in order to process 2.6 million tons of crude oil per year, eliminating the gasoline production and obtaining EURO V gasoil.
According to the gasoil – aromatics flow sheet the total investment for refinery’s modernisation amounts to EUR 330.000.000 and includes:
• Increasing Coker’s capacity up to 650.000 t/year.
• Modernisation and modification of the operational status of FCC unit, by using UOP technology.
• Implementation of Aromatics Complex, using GTC technologies and licenses.
• Increasing the capacity of Hydrofining using Axens technology (France), Gases Desulphuration and Sulphur Recovery units using Le Gas Integral technology (France), in order to comply with EURO V standards.
• Other utilities projects.
All design solutions are based on the most efficient technologies, on their application, as well as on the maximum utilization of the facilities and of the equipments existing within the refinery. Such an approach will enable the decrease of the investment costs by 2,5 times as compared to the “Greenfield” type projects (new constructions) and it allows reaching the maximum complexity and increasing crude oil processing degree –aromatics production yields will represent 25% of the processed crude oil quantity.
All products obtained as a result of this project will be traded in Romania or in the European Community. It is estimated a steady increase in terms of the specific refining products consumption – gasoil and liquefied gases. The petrochemical products (propylene, benzene, paraxylene) are not distributed only on the European market, they could become feedstock for the further development of the complex, and the liquefied gases together with the raffinate will represent the best feedstock for the pyrolysis plants.
The investment’s feasibility study was carried out for 4 crude oil price options and the price of 60 dollars per crude oil barrel was taken into consideration as a basic option. According to the investment’s feasibility study the average yearly sales will be of 1,5 billion dollars, with EBIDTA of 186 million dollars per year.
Thus, both the utilization of the efficient technologies and their combination within RAFO refinery will represent a first time implementation in Europe and this will enable the creation of a new petrochemical complex, more economically efficient and durable considering the market changes.
Since February 2008, the works necessary to implement this project have been performed (engineering and construction works, order and delivery of facilities and equipments).
The Romanian Government also supported this concept because the project called “The modernisation and reconstruction of RAFO refinery into a petrochemical complex with aromatics production” may constitute a basis for reviving Romanian petrochemical industry. In this respect, RAFO’s management took the necessary steps in order to contract a loan with state guarantee. This governmental guarantee does not represent a state aid and will be contracted taking into account the market conditions, namely:
• The amount of the state guarantee will constitute 80% of the credit’s total value (amounting to Euro 330 million)
• The guarantee will be granted based on an undertaking;
• RAFO’s shares and/or assets will be used to pledge the guarantee
Marketing of the products
DIESEL
• Planned production: 1,080,000 MT per year
• Markets for RAFO: Romania, Bulgaria, Moldova, Ukraine, Slovakia, Serbia
• Domestic market volume approximately 5,000,000 MT per year
• Domestic market growth: (2002-2007) approximately 7%
• Main consumption sectors: automotive vehicles, agriculture, railway transportation
• Distribution: by railway, by trucks
AROMATICS
• Paraxylene (PX) is used primarily as a feedstock for the manufacture of purified terephthalic acid (PTA) which is an important chemical in the production of fiber and plastic bottles
• Planned production: 414,000 MT per year
• Markets for RAFO: Continental Europe, Turkey and CIS countries
• European consumption: 2,396,000 MT per year
• Market growth: approximately 13% in 2010
• Consumers: PTA and DMT producers
BENZENE
• Benzene is the basic petrochemical feedstock used for producing a wide range of products such as polystyrene, MDI (polyurethane component), polyamides, etc.
• Planned production: 233,000 MT per year
• Markets for RAFO: Continental Europe, Turkey and CIS countries
• European consumption: 11,500,000 MT per year
• Consumers: petrochemical companies (mainly MDI and Polystyrene producers)
PROPYLENE
• Main fields of utilization are: polypropylene, propylene oxide (polyurethane component), phenol and acetone
• Planned production: 100,000 MT per year
• Markets for RAFO: Romania, Continental Europe
• European consumption: 4,000,000 MT (CIS not included)
• Consumers: domestic market and European customers of petrochemical products
LPG
• Planned production: 262,000 MT per year
• Markets for RAFO: Romania, Serbia, Bulgaria, Moldova
• Domestic market volume: 300,000 MT per year, total capacity approximately 1,000,000 MT per year. (Ethylene Crackers not included)
• Market growth: (2008-2010) approximately 5%
• Main market sectors: automotive vehicles, households, Ethylene Crackers
OTHER PRODUCTS
Naphtha
• Planned production: 283,000 MT per year
• Markets for RAFO: Romania, Serbia, former USSR, Hungary
• Consumers: domestic and foreign markets
Coke
• Planned production: 157,000 MT per year
• Markets for RAFO: Romania (domestic market), export
Sulphur
• Planned production: 23,000 MT per year
• Markets for RAFO: Romania, export .
• Consumers: fertilizers producers and other fertilizers producers: North Africa