I’ll Do My Greatest To Answer
I’ve worked in a refinery for almost three years now, and within the Oil & Fuel industry for five. I’m not even near knowing every thing there may be to learn about operating a refinery let alone building one. I’ll do my greatest to answer.
A very good query however in absence of more details, I’m going to make sure assumptions-
- Permits and Approvals: Oil refining requires plenty of resources. Relying on your configuration, it’s oil and gas courses in usa essential secure land, wherever between 50-200 MW of electricity, steam, water and different utilities. At the same time, you will also want to seek regulatory body approvals relying on the jurisdiction. This varies wildly relying on which country, which firm and different elements. I am assuming you (the brand new refinery magnate) has already sorted them out.
Configuration: Relying on your demand and provide balances (which in turn is determined by the geographic location of your refinery), you’ll have to decide on which refinery configuration works finest for you. oil and gas courses in usa Oil refining has lengthy moved on from easy crude distillation and now is an incredibly integrated complicated comprising a number of upgrading & treating units.
Feedstock Supply: It might make little sense to build a refinery and not know what you will be feeding it. Sometimes refineries are designed round a basket of “design-crudes”, crude oil grades which are in considerable provide and may be reliably sourced in the medium time period horizon while you are still recovering your investment. I am assuming you might have this locked.
Others: Certainly not exhaustive, it’s good to kind out your corporate entity, license to operate, investment financing etc before you even assume about breaking ground.
Taking this under consideration, constructing a posh, hydrocracking, hyrdroskimming, catalytic cracking refinery, can cost wherever between 5-15 billion USD. The throughput (processing capability) of this refinery ought to be between 250-500,000 barrels per day. Oil refining is a troublesome enterprise and margins are painfully slim. Economies of scale are critical to maintaining a viable enterprise.
Now coming to the query of time. You’d be sensible if you’ll be able to begin to run your refinery on some primary infrastructure as relaxation of the models start to come back on-line. Duration from breaking ground to reaching full complexity & throughput can range between three-8 years relying on the scope of the mission. Some refineries (Shell’s Pulau Bukom Refinery in Singapore for example) would possibly even require reclaiming land from the sea earlier than any construction can start.
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