Details of two implemented opportunities

Opportunity: Improve fuel-oil blending at Rijeka

Expected benefit: $6 million/year

Actual benefit (September 1999): $7.5 million/year

Key strategies:

• Eliminate conversion unit feeds in blends.
• Optimize cutter-stock selection.
• Minimize fuel-oil product quality give-away.
• Burn heavier fuel oil in refinery heaters to overcome fuel-oil blending constraints.

Actions:

• INA-KBC management helped relax constraining Conradson carbon specification with the major domestic consumer (National Power Co.).
• Blending action team established product-quality give-away targets and set short-term goals (for example, blend 90% of fuel oil inside a 5% band within 3 months). The team compared weekly blending performances vs. target and addressed constraints with action items.
• PIP monitoring report clearly showed blending performance and highlighted "give-away" in dollar terms. Management gave more emphasis to fuel oil blending. Culture changed from volumes-focused to profit-focused.
• Blending action team identified minor modifications (new piping connections and improved tank mixing) to improve blending. PIP management team pushed for a quick release of funds for the low-cost project (<$200,000).
• KBC supplied Microsoft Excel-based fuel oil blending-optimization tool. After an initial trial, the program was integrated into daily blending operations and used on a day-to-day basis.
• Blending operations better integrated into the refinery planning and scheduling organization. Blending group received prices and economic drivers on a regular basis.
• Action team focused on improving economic awareness for fuel-oil blending within all disciplines (refinery management, laboratory, tankfarm, etc.)

Opportunity: Improve LPG recovery, improve fuel gas system operation, and reduce flaring at both sit

Expected benefit:

• Reduce flaring by $5 million/year ($2.5 million/site)
• Improve LPG recovery by $2.8 million/year ($1.2 million/year at Rijeka, $1.6 million/year at Sisak)

Actual benefit (September 1999):

• Reduced flaring by $6 million/year ($3 million/site)
• Improved LPG recovery by $3.9 million/year ($1.1 million at Rijeka, $2.8 million/year at Sisak). Improved LPG recovery at Rijeka comes under improved FCC and reformer operations in Table 1a.

Key strategies:

• Minimize LPG in fuel gas by improving operations of crude-distillation unit (CDU) light ends, FCC gas plants, and reformer-stabilizer columns.
• Improve fuel-gas system pressure control to minimize fuel-gas let down to flare and to encourage operators to burn more fuel gas in heaters.

Actions:

• Appointed site-wide energy coordinator who carried out key initiatives:

- Monitored flaring in terms of dollar value.

- Monitored heater operation and encouraged maximum gas firing.

- Put in place new flaring and fuel-gas operating procedures.

- Promoted economic awareness regarding flaring and encouraged better cooperation between unit operations teams.

• Technicians routinely checked valve connections to flare system for leaks.
• Fuel-gas system control and reliability were improved:

- Improved pressure control systems at no cost.

- Improved integration of refinery fuel gas systems.

- Rationalized fuel gas system indicators.

• Computer simulations optimized gas-plant operations. Mini-plant tests were carried out to confirm results. KPIs were established for key unit operating parameters.
• Routine measurement of LPG content of fuel gas were established and KPIs put in place.
• Rijeka refinery management set up a small bonus system for CDU operators. Operators received a small monthly bonus based on improved LPG recovery and reduced flaring.
• PIP top management team focused on better coordination between headquarters and refineries for improved scheduling of LPG and naphtha products.