Adding Butane to a Blend Can Minimize Giveaway

The difference between the actual results of the chemical product and the stated results of the chemical product in oil refineries is a giveaway. This loss triggers marginal depletion of fuel, distillate, and heavy oil prices. These losses convert the giveaways into the income statement of a refinery by different types of opportunity costs. The blend quality is considered to be a giveaway if the product quality is greater than the blend spec. However, when the blend quality is less than the blend spec it is considered violated.

This topic will discuss the concept of Quality Giveaway and Violation, cost estimation of RON and RVP giveaways, analysis of refinery giveaway data, Butane Blending for RVP, Losing tangible benefits by the quality giveaway, estimation of quality giveaway cost, the concept of Octane Giveaway, normal distribution of RON and RVP Giveaway, estimation of yearly loss of benefits from the giveaway, etc.

Benefits lost due to giveaway

As per the industry average, 0.1 RON giveaway will cost the refinery a loss of over $1 million US dollars for a 300KB/day capacity refinery. There is a reduction in margin. Online analyzers calculate the evolution of the blending process either in real-time or directly in the final tank and this is done by taking and evaluating the samples of the substance. The first of the two options are more effective, as it allows for greater accuracy in the final specifications. It reduces the quality giveaway of the commodity.

How to estimate RON and RVP giveaway

Data required for cost estimation of RON and RVP giveaway are the price of Gasoline RON rates, production ratio of all the grades, and percentage of Gasoline from crude. A basic way of analyzing and calculating the blending benefits is to obtain the data for a specific period of time. Then estimate the quality giveaway and present the outcome graphically. The annual loss is estimated by obtaining a year’s data and then generate a normal distribution plot.

To reduce RVP giveaway nC4 should be blended, not iC4. iC4 exhibits a much higher vapor pressure than nC4. iC4 possesses a greater value as an alkylation feedstock. Octane giveaway may be reduced by placing reformer targets. There may be a blending of low octane components to minimize octane giveaway. Typical considerations for gasoline blending are octane flow and volatility flow (including T50, Reid Vapor Pressure, and Vapor / Liquid Ratio considerations). The product must undergo re-blending to bring it to spec. Re-blending is not a desirable process.

Butane blending may be performed using an online analyzer

Quality giveaway is described as a refinery product of higher value than desired. A refinery does prefer quality giveaway because there is a financial loss as the high valued chemical product is given away at a low price. There is an impact on product dispatch scheduling. An advanced control system can minimize product quality. In addition, Blend quality violation is also not acceptable because such a product cannot be dispatched. It will violate established norms. The product must undergo re-blending to bring it to spec. Re-blending is not a desirable process. The product dispatch schedule is greatly affected. Depending on the refinery characteristics, blending may be performed using an online analyzer. Giveaway losses are estimated in different ways in different refineries.

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