Overview Petroleum Refinery

Overview
THE PURPOSE OF AN OIL REFINERY
IS TO TRANSFORM RELATIVELY
LOW VALUE CRUDE OIL INTO HIGH
VALUE PRODUCTS AS EFFICIENTLY,
PROFITABLY AND
ENVIRONMENTALLY SOUND A WAY
AS POSSIBLE
 What is Crude Oil?
• Crude oil is a mixture of
hydrocarbons formed from
organic matter.
• Crude varies significantly in
color and composition
• Composition varies
– Sulfur content
– Density varies
– Contains sediment and
water
 Crude Oil Characteristics
• Crude density is commonly measured by API
gravity
– API gravity provides a relative measure of crude oil
density. The higher the API number, the lighter the
crude
• Sulfur content measures if a crude is sweet
(low sulfur) or sour (high sulfur)
– Typically less than 0.5% sulfur content = sweet
– Typically greater than 1.5% sulfur content = sour
– High sulfur crudes require additional processing to
meet regulatory specs
Crude Distillation
Crude oils are first desalted and then introduced with steam to an
atmospheric distillation column. The atmospheric residue is then
introduced to a vacuum distillation tower operating at about 50
mmHg, where heavier products are obtained. Typical products from
both columns and their boiling point ranges are listed in Table
Major refining processes in modern refineries
Chemical conversion
Catalytic Thermal
Physical Separation
Distillation Reforming Delayed coking
Solvent deasphalting Hydrotreating Flexicoking
Solvent extraction Hydrocracking Visbreaking
Solvent dewaxing Alkylation
Isomerization
Crude distillation products (Gary and Handwerk, 2001)
*The yields quoted here depend on feed composition and properties. In this case feed API was 26.3.
Yield(wt%)* Trueboilingtemperature(C)

Atmospheric distillation
Refinery gases (C1 C2)
Liquid petroleum gases 0.10 –
(LPG) 0.69 –
Light straight run (LSR) 3.47 32–82 (90–180 F)
Heavy straight run (HSR) 10.17 82–193 (180–380 F)
Kerosene (Kero) 15.32 193–271 (380–520 F)
Light gas oil (LGO) 12.21 271–321 (520–610 F)
Heavy gas oil (HGO) 21.10 321–427 (610–800 F)
Vacuum distillation
Vacuum gas oil (VGO) 16.80 427–566 (800–1050 F)
Vacuum residue (VR) 20.30 +566 (+1050 F)
Solvent De-asphalting
This is the only physical process where carbon is
rejected from heavy petroleum fraction such as
vacuum residue. Propane in liquid form (at
moderate pressure) is usually used to dissolve the
whole oil, leaving asphaltene to precipitate. The
deasphalted oil (DAO) has low sulphur and metal
contents since these are removed with asphaltene.
This oil is also called ‘‘Bright Stock’’ and is used
as feedstock for lube oil plant. The DAO can also
be sent to cracking units to increase light oil
production.
Solvent Extraction
In this process, lube oil stock is treated by a
solvent, such as N-methyl pyrrolidone
(NMP), which can dissolve the aromatic
components in one phase (extract) and the
rest of the oil in another phase (raffinate).
The solvent is removed from both phases
and the raffinate is dewaxed.
 Solvent Dewaxing
The raffinate is dissolved in a solvent (methyl
ethyl ketone, MEK) and the solution is
gradually chilled, during which high
molecular weight paraffin (wax) is
crystallized, and the remaining solution is
filtered. The extracted and dewaxed resulting
oil is called ‘‘lube oil’’. In some modern
refineries removal of aromatics and waxes is
carried out by catalytic processes in ‘‘all
hydrogenation process’’.
 Chemical Catalytic Conversion Processes
Catalytic Reforming
In this process a special catalyst (platinum metal
supported on silica or silica base alumina) is used
to restructure naphtha fraction (C6–C10) into
aromatics and iso-paraffins. The produced naphtha
reformate has a much higher octane number than
the feed. This reformate is used in gasoline
formulation and as a feedstock for aromatic
production (benzene–toluene–xylene, BTX).
 Chemical Catalytic Conversion Processes
Hydrotreating
This is one of the major processes for the
cleaning of petroleum fractions from
impurities such as sulphur, nitrogen, oxy-
compounds, chloro compounds, aromatics,
waxes and metals using hydrogen. The
catalyst is selected to suit the degree of hydro-
treating and type of impurity. Catalysts, such
as cobalt and molybdenum oxides on alumina
matrix, are commonly used.
 Chemical Catalytic Conversion Processes
Catalytic Hydrocracking
For higher molecular weight fractions such
as atmospheric residues (AR) and vacuum
gas oils (VGOs), cracking in the presence of
hydrogen is required to get light products. In
this case a dual function catalyst is used. It is
composed of a zeolite catalyst for the
cracking function and rare earth metals
supported on alumina for the hydrogenation
function. The main products are kerosene, jet
fuel, diesel and fuel oil.
 Chemical Catalytic Conversion Processes

Catalytic Cracking
Fluid catalytic cracking (FCC) is the
main player for the production of
gasoline. The catalyst in this case is a
zeolite base for the cracking function.
The main feed to FCC is VGO and the
product is gasoline, but some gas oil
and refinery gases are also produced.
 Chemical Catalytic Conversion Processes
Alkylation
Alkylation is the process in which isobutane
reacts with olefins such as butylene (C4= ) to
produce a gasoline range alkylate. The
catalyst in this case is either sulphuric acid or
hydrofluoric acid. The hydrocarbons and acid
react in liquid phase. Isobutane and olefins
are collected mainly from FCC and delayed
coker.
 Isomerization Chemical Catalytic Conversion Processes

Isomerization of light naphtha is the process in

which low octane number hydrocarbons (C4, C5,
C6) are transformed to a branched product with the
same carbon number. This process produces high
octane number products. One main advantage of
this process is to separate hexane (C6) before it
enters the reformer, thus preventing the formation
of benzene which produces carcinogenic products
on combustion with gasoline. The main catalyst in
this case is a Pt-zeolite base.
Thermal Chemical Conversion Processes
These processes are considered as upgrading processes
for vacuum residue.
Delayed Coking
This process is based on the thermal cracking of vacuum
residue by carbon rejection forming coke and lighter
products such as gases, gasoline and gas oils. Three
types of coke can be produced: sponge, shot and needle.
The vacuum residue is heated in a furnace and flashed
into large drums where coke is deposited on the walls of
these drums, and the rest of the products are separated
by distillation.
 Thermal Chemical Conversion Processes
Flexi coking
In this thermal process, most of the
coke is gasified into fuel gas using
steam and air. The burning of coke by
air will provide the heat required for
thermal cracking. The products are
gases, gasoline and gas oils with very
little coke.
 Thermal Chemical Conversion Processes
Visbreaking
This is a mild thermal cracking process used
to break the high viscosity and pour points of
vacuum residue to the level which can be
used in further downstream processes. In this
case, the residue is either broken in the
furnace coil (coil visbreaking) or soaked in a
reactor for a few minutes (soaker visbreaker).
The products are gases, gasoline, gas oil and
the unconverted residue.
Refinery Configuration
The refinery configuration can range from
single topping for crude distillation to high
conversion refinery for petro-refinery. This
will depend on the factors indicated in the
following sections
Type of Products
In this case, refining is carried out by increasing
the hydrogen/carbon (H/C) ratio. This can be
achieved either by hydrogenation processes such
as hydro-treating, hydrocracking or by carbon
rejection processes such as thermal
cracking(coking) and FCC. The-products of such
processes are shown in Fig.
Some products can also be produced by special
refining operations, like in catalytic reforming,
isomerization and alkylation. The products are
classified in terms of average carbon number and
H/C ratios.
Petroleum products
 Environmental Regulation
Modern regulations in many countries require a low level of
contaminants like sulphur. This requires the change of severity or
design of hydro-conversion units which can produce ultra low
sulphur products. Clean fuels are gaining great interest, and
completely new refinery configurations are now being introduced to
produce clean fuels from new refinery feeds and configurations.
Additional units have been added to existing refineries to handle
untreated gas emissions and refinery waste water due to changes in
environmental regulations.
 Crude Assay and Quality
Crude quality is getting heavier worldwide. Existing
refineries, which are designed to handle normal crudes are
being modified to handle heavy crude. New technology
for upgrading is used to obtain clean and light products
from lower cost feeds. The crude assay will determine the
yields of different cuts and consequently, the refinery
configuration. A high conversion cracking-coking refinery
is shown in Figure
A high conversion refinery
 Refinery-petrochemical Integration
The growth of the petrochemical industry has put pressure
on refineries to either change their configuration or
operating conditions to produce more aromatics and gases.
FCC has been developed to petro-FCC which produces high
yield of gases. The phasing out of the idea of increasing the
octane number by increasing aromatic content has changed
the role of the catalytic reformer to produce a high yield of
aromatics as BTX feedstock. The addition of gasification
units to process vacuum residue has opened the way for the
addition of a variety of petrochemicals. Such a refinery
petrochemical configuration is shown in Fig.
Refinery-petrochemical integration
Development of New Technology
If a new technology is developed to give better yields,
save energy, meet environmental regulations and product
specifications, then this technology might replace old
technology in existing and new refineries, depending on
the economics. Other factors, which might influence the
refinery configuration, are;
 feedstock availability,
 product markets and
 a company’s strategic objectives.
 How Do I Keep In Business ?
• I need to design and revamp the plant utilizing
the latest technology to be more efficient
• I need to make the plant more flexible and
responsive
• I need to operate (control) the plant in the most
efficient manner possible
• I need to keep the equipment running all the time

I NEED CHEMICAL ENGINEERS!

 Crude Types Versus Demand
Gasoline Gasoline Gasoline
5 - 15 % Naturally occuring
20 - 30 % hydrocarbon molecules do 40 - 45%
Distillate not meet customer needs.
20 - 25%
Distillate The refining processes must Distillate
adjust the molecules, reshape
25 - 35% Heavy Fuel 30 - 35%
Oil them and remove contaminants Heavy Fuel
60 - 75% to ensure they meet Oil
Heavy Fuel requirements for: ~10%
Oil - end use performance
35 - 55% - environmental performance Asphalt ~5%
Other ~5 -10%
Light Crude Heavy Crude Example
Product Product Product
Composition Composition Demand
Basic Refining Concepts
THE REFINERY
The Refining Process
 What Is Crude Oil?
• Crude Oil is a liquid mixture of thousands of
organic chemicals found underground. It is
the result of organic matter decaying over
thousands of years; hence the name fossil fuel
• Crude oil is found all over the world and varies
tremendously in its density, aromatics, sulfur,
and metals content
 Crude Oil ….
• Crude oil is composed of thousands of different
chemical compounds, all with different boiling
points.
• A typical crude oil may begin to boil ~150°F; at
1000°F there is still crude oil which has not boiled.
• Crude oil is generally described as being light/heavy
or sweet/sour.
– There are no strict definitions describing these measures.
– In general a heavy crude is <25°API while a light crude is
>30°API.
• API is an index which is a relative measure of weight; the lower the
number the heavier the material.
– In general sour crude has more than 2% sulfur, while sweet
has less than 0.5%.
• The majority of Venezuelan oil is heavy and sour.
 Major Refinery Products
• LPG (Propane/Butane)
• GASOLINE (hundreds of blends)
• JET FUELS
• DIESEL FUELS
• HEATING OILS
• GREASES
• ASPHALTS
• COKE (not the kind you drink )
 Major petroleum products
LPG
Liquefied petroleum gas, consisting primarily of propane and butane, is used as a fuel and as
an intermediate in manufacturing petrochemicals.
Gasoline
Different gasoline blends are produced as regular or premium grades in both summer and
winter formulations. Additives are often used to enhance performance and provide protection
against oxidation and corrosion.
Naphtha
A low-octane gasoline product used as a feedstock by the chemicals industry, as a feedstock
for catalytic reforming, and in the production of hydrogen.
Middle distillates
Middle distillates are diesel fuel, heating oil, and kerosene.
Fuel oil
Many ships, power plants, commercial buildings, and industrial facilities use fuel oil or
combinations of fuel oil and distillate fuel.
Bitumen
This low-value residual product of crude oil vacuum distillation is used primarily for road
surfaces and in roofing materials.
 Major petroleum products
Petrochemicals
Many products – such as ethylene, propylene, butylenes,
and isobutylene – are primarily intended for use as
petrochemical feedstocks in the production of plastics,
synthetic fibers, synthetic rubber, and other products. Some
are also used as solvents, including benzene, toluene, and
xylene.
Niche products
Niche products are produced in relatively small quantities
and include base oils, biofuels, MTBE(Methyl tert-butyl
ether), ETBE(Ethyl tert-butyl ether), and TAME (Tertiary
Amyl Methyl Ether). These are commonly used as blending
components for traffic fuels or in lubricants.
Hydrocarbon Chains
 Gasoline Specifications
Gasoline must meet many criteria which change
with the time of year and geographic location.
Some critical specifications are:
• Vapor Pressure
• Octane
• Aromatics / Benzene Content
• Sulfur Content
Gasolines are always a blend of a number of
streams in the refinery
 Other Specifications
Other refinery products must meet other
specifications such as:
• Cetane number
• Density
• Pour Point
• Flash Point
• Viscosity
So, How Do You Make Good Stuff
Out Of That Gooey Crude?
So, How Do You Make Good Stuff
Out Of That Gooey Crude?
• Separate crude into fractions
• Convert low octane components to higher octane
components
• Convert the very heavy stuff to heavy oils
• Convert heavy oils to gasoline,diesel,jet fuel
• Remove sulfur/nitrogen through reaction
• Blend intermediate streams together to meet
product specifications
 SEPARATIONS -
CRUDE FRACTIONATION

• HUGE DISTILLATION COLUMNS

– ATMOSPHERIC DISTILLATION
– VACUUM DISTILLATION
• TYPICAL SIZE: 150,000 BARRELS/DAY
• 750 OF
 OTHER SEPARATIONS
• FLASH
• DISTILLATION
• ABSORPTION
• ADSORPTION
• SETTLING (WATER/OIL)
 Value Creation At The Refineries
• Refineries add value in two primary ways:
– Separating oil into its more valuable
components
• The primary process is fractionation.
• Another widely used process is extraction.
– Chemically reacting the components to create
more valuable products
• Primary examples are:
–Hydrodesulfurization
–Reforming
–Cat Cracking
–Coking
 Vacuum Fractionation
• Further processing of straight run resid (50% of the yield) in the
atmospheric unit would tend to crack it and form coke at
elevated temperatures.
• Since boiling points are reduced as pressure decreases, we can
boil the atmospheric residue in a vacuum at temperatures low
enough to prevent cracking and coking.
• The vacuum unit separates about half its feed into vacuum gas
oil, which is further processed at the Cat Cracker. The residue
(“bottom of the barrel”) is sent to the Coking Unit for further
processing.

Extraction
• Main uses of extraction: petrochemicals and lubricants.
• Oil and water are not mutually soluble. Likewise, certain
solvents dissolve different oil compounds better than in the
original oil.
• Taking advantage of this allows us to separate aromatics from
reformates and lube base oils and waxes from vacuum gas oils.
 Chemical Reactions
• The value addition so far has only come through the
separation of the molecules created by nature.
Changing the chemical composition of the crude oil is
the main source of value addition in the refining
business.
• Numerous catalysts are used throughout the refining
process to facilitate the chemical reactions.
• Crude oil itself will yield only ~30-40% of
gasoline/diesel fuels.
• When our refineries are finished processing the oil, we
are able to yield ~90% as gasoline/diesel fuels.
REACTIONS
 REACTIONS
Almost all the reactions in the
refinery use special catalysts
that increase the rate and
selectivity of the reaction. This
improves efficiency and
reduces unwanted byproducts.
 Chemical Reactions
• Reforming changes the molecular structure of naphtha to
produce reformate (a primary gasoline blending stock).
• Fluid catalytic cracking mixes vacuum gas oil with a catalyst at
temperatures over 1000°f, promoting numerous chemical
reactions. By breaking long molecules down into shorter ones
(“cracking”), over 75% of the feed is converted to more valuable
gasoline and lighter products.
• Cokers process vacuum resid, which is heated to over 900°F and
put into the coke drums, where it undergoes thermal cracking as
the oil decomposes under the extreme heat. Products include
butanes and lighter, naphtha for the Reformers, turbine and
diesel fuel, gas oil for the Cat Crackers, and petroleum coke,
which is sold as a fuel.
 Chemical Reactions
• Alkylation combines small molecules into larger ones to
create alkylate, a high-octane gasoline component.
• Hydrocracking also converts big molecules to smaller
ones, but can process a much wider range of feedstocks.
Expensive to operate, but very flexible. Operations can
be tailored to suit economic opportunities.
• Hydrotreating removes impurities (primarily sulfur and
nitrogen) by combining hydrogen with refined products
over special catalysts at high temperatures.
• Sulfur recovery converts H2S from the coking, cracking
and hydro-treating processes and converts it to pure
sulfur for sale.
 Putting It All Together
• The simplest refineries generally consist of crude,
vacuum, reforming and some hydrotreating
capacity.
– If a refinery such as this would process heavy sour
crudes, it would at best be able to produce ~35% of
finished gasoline, turbine and diesel. The majority of the
balance would be vacuum gas oil and asphalt type
material.
– These refineries, therefore, are usually limited to light,
sweet crudes.
– Most of these refineries have already ceased operations
due to poor profitability. The remaining refineries of
similar configuration are usually operating in a niche.
 Putting It All Together
• The next level of complexity adds cat crackers
and some additional hydrotreating.
– If a refinery like this processed heavy, sour
crude, it would at best be able to produce ~65%
of finished gasoline, turbine and diesel, with the
majority of the balance being asphalt type
material.
– These refineries, therefore, usually process
lighter sweet crudes. However, they can process
heavy sour if they can obtain a secure outlet for
the large volumes of asphalt they produce
 Putting It All Together
• The most complex refineries add
cokers, more hydrotreating and
possibly hydrocracking.
–Refineries like this can process heavy
sour crude with the capability of
yielding ~85% as finished gasoline,
turbine and diesel. Petroleum coke and
petrochemicals make up most of the
balance
 MAJOR REFINERY EQUIPMENT
• Vessels-Reactors, Separators, Storage Tanks
• Pumps & Compressors
• Furnaces
• Heat Exchangers
• Instruments (measure flow, temperature,
pressure, composition)
• Control Systems
 MINIMIZING POLLUTION
• Operate Furnaces Efficiently
• Waste Material Goes To The Flare Stack
• Avoid Spills & Accidental Releases
• Special Treatment of Sewer Water
• Lots of Paper Work!
Refinery Waste Characteristics
Boilers, process heaters, and other process equipment are responsible for the
emission of particulates, carbon monoxide, nitrogen oxides (NOx), sulfur oxides
(SOx), and carbon dioxide.
Catalyst changeovers and cokers release particulates. Volatile organic
compounds (VOCs) such as benzene, toluene, and xylene are released from
storage, product loading and handling facilities, and oil-water separation systems
and as fugitive emissions from flanges, valves, seals, and drains.
Petroleum refineries use relatively large volumes of water, especially for cooling
systems. Surface water runoff and sanitary wastewaters are also generated.
Refineries generate polluted wastewaters, containing biochemical oxygen
demand (BOD) and chemical oxygen demand (COD), phenol, oil in desalter
water, heavy metals (chrome lead and other pollutants.)
Refineries also generate solid wastes and sludges which may be considered
hazardous because of the presence of toxic organics and heavy metals.
Accidental discharges of large quantities of pollutants can occur as a result of
abnormal operation in a refinery and potentially pose a major local
environmental hazard.
Pollution Prevention and Control
Reduction of Air Emissions
• Minimize losses from storage tanks and product transfer areas by methods such as
vapor recovery systems and double seals.
• Minimize SOx emissions either through desulfurization of fuels, to the extent feasible,
or by directing the use of high-sulfur fuels to units equipped with SOx emissions
controls.
• Recover sulfur from tail gases in high-efficiency sulfur recovery units.
• Recover non-silica-based (i.e., metallic) catalysts and reduce particulate emissions.
• Use low-NOx burners to reduce nitrogen oxide emissions.
• Avoid and limit fugitive emissions by proper process design and maintenance.
• Keep fuel usage to a minimum.
Elimination or Reduction of Pollutants
• Consider reformate and other octane boosters instead of tetraethyl lead and other
organic lead compounds for octane boosting.
• Use non-chrome-based inhibitors in cooling water, where inhibitors are needed.
• Use long-life catalysts and regenerate to extend the catalysts’ life cycle.
Recycling and Reuse
• Recycle cooling water and, where cost-effective, treated wastewater.
• Maximize recovery of oil from oily wastewaters and sludges. Minimize losses of oil to
the effluent system.
• Recover and reuse phenols, caustics, and solvents from their spent solutions.
• Return oily sludges to coking units or crude distillation units.
Operating Procedures
• Segregate oily wastewaters from stormwater systems.
• Reduce oil losses during tank drainage carried out to remove water before
product dispatch.
• Optimize frequency of tank and equipment cleaning to avoid accumulating
residue at the bottom of the tanks.
• Prevent solids and oily wastes from entering the drainage system.
• Institute dry sweeping instead of washdown to reduce wastewater volumes.
• Establish and maintain an emergency preparedness and response plan and carry
out frequent training.
• Practice corrosion monitoring, prevention, and control in underground piping and
tank bottoms.
• Establish leak detection and repair programs.
 THE BAD STUFF IN THE CRUDE?
• Sulfur
– converted to elemental sulfur
– in high sulfur fuel oil
– in coke
• Heavy Metals (nickel, vanadium)
– in high sulfur fuel oil and coke
• Nitrogen (organic nitrogen)
– most is converted to ammonia and
neutralized
– in high sulfur fuel oil and coke
WHAT ROLE DO ENGINEERS
PLAY IN THE REFINERY?
What Role Do Chemical Engineers Play?
• Operations Engineer
• Maintenance Engineer
• Control Systems Engineer
• Design Engineer
• Health/Safety/Environmental Engineer
• Planning / Scheduling Engineer
• Reliability Engineer
• Plant Manager
 Other Ways Chemical Engineers Support
The Refining Industry
• Research & Development Engineers
• Technical Sales Engineers
• Engineering & Construction Engineers
• Governmental Regulators (EPA)
• University Professors
Other Engineering Disciplines In The Refinery
• Mechanical Engineers - design &
maintenance of compressors,
vessels …
• Electrical Engineers - electrical,
instrumentation, controls
• Computer Scientists - main plant
control & information systems
• Civil Engineers for …….
 Summary
• Refineries are very complicated chemical
processing plants that use reactions and
separations to convert crude oil into gasoline
and other valuable products
• Chemical engineers play an important role in
keeping these plants running safely and
efficiently
Petroleum Products
• API gravity
Glossary
The API gravity illustrates the density of crude oil classified by the
American Petroleum Institute. The API gravity is defined as: 141.5 - 131.5/
Gravity of specific crude oil at 15.6 C. Thus, the higher the API gravity is,
the lighter is the crude oil.
• Aromatics
Hydrocarbons characterized by having at least one benzene ring and
known as aromatics because of their distinctive, sweet odor. Common
aromatics include toluene and xylene.
• Atmospheric crude distillation
The first step in the refining process. Before atmospheric crude distillation,
crude oil is heated up to temperatures of about 600 Fahrenheit degrees
(316 C) to 750 Fahrenheit degrees (399 C), depending on the nature of the
crude oil and desired refined petroleum products. During atmospheric
crude distillation, crude oil components are separated at atmospheric
pressure in the distillation tower. The components of crude oil vaporize in
succession at their various boiling points, then rise to prescribed levels
within the distillation tower according to their densities, condense in
distillation trays and are finally drawn off for further refining.
•
Glossary
Atmospheric crude distillation capacity
A maximum amount of feedstock that the atmospheric crude distillation
units of a refinery are able to process.
• Aviation fuels
Jet fuels and aviation gasolines.
• Barrel or bbl
Barrel of crude oil, 159 liters by volume.
• Base oil
The main component of lubricant blends.
• Biofuel
Gasoline or diesel fuel, which contains components derived from renewable
raw materials, such as vegetable oils and grain.
• Bitumen
The residual product of crude oil vacuum distillation. A black or dark brown
solid or semi-solid organic compound that gradually softens and turns to
liquid when heated.
• Bpd
Barrels per day.
• CIF
Glossary
Cost, insurance and freight. A delivery term that includes the costs as well as
freight and insurance charges of the delivery of goods to a named destination
as defined in the ICC Incoterms 2000.
• CO2
Carbon dioxide, a significant greenhouse gas.
• Condensates
Natural gas liquids used as feedstocks in oil refining.
• Cracking
The conversion of large hydrocarbon molecules into smaller ones. Cracking is
carried out either at high temperatures (thermal cracking), or with the aid of
a catalyst and high pressure (catalytic cracking and hydrocracking). The
cracking process enables greater quantities of saturated hydrocarbons
suitable for gasoline and other light fractions to be recovered from crude oil.
• Distillate
Any of wide range petroleum products produced by distillation, the primary
refining step in which crude oil is separated into fractions or components.
• Dwt
Dead-weight ton. A vessel’s cargo-carrying capacity measured in tons.
• EHVI base oil
Glossary
Enhanced high viscosity index base oil, a key component of high-quality
motor oils that reduce engine fuel consumption.
• ETBE
Ethyl tertiary butyl ether, ethanol based gasoline component reducing the
overall environmental impact of gasoline.
• Fame
Fatty Acid Methyl Ester, conventional biodiesel produced by esterification.

• Feedstocks
Crude oil and other hydrocarbons used as basic materials in a refining or
manufacturing process.
• Fluid catalytic cracking
The refining process of breaking down the larger, heavier, and more complex
hydrocarbon molecules into simpler and lighter molecules. Fluid Catalytic
Cracking is accomplished by the use of a catalytic agent, which is
continuously regenerated and is an effective process for increasing the yield
of gasoline from crude oil. Catalytic cracking processes fresh feedstocks as
well as recycled feedstocks.
• FOB
Glossary
Free on board. A delivery term denoting that the seller is responsible for
delivering goods on board a ship or other conveyance for carriage to the
consignee at a specified loading port as defined in the ICC Incoterms 2000.
• Futura
A brand name for Neste Oil’s gasolines and special gasolines as well as for
diesel oils.
• Gasoil
A general term for diesel fuel and heating oil.
• Gasoline
A light liquid petroleum product with a boiling range of 30–200_C which is
typically used as a fuel for internal combustion engines.
• GHG
Greenhouse gases.

• Heating oil
A fuel oil with an ignition temperature over 55 C. Heating oil is used in oil-
fired heating plants and boilers, and as a dieselequivalent to power some
types of machinery.
• Heavy fuel oil
Glossary
Fuel oil with a distillation range of over 350 C. Heavy fuel oil is used in heat
plants, power stations and industrial furnaces.
• Heavy residue hydrocracking unit
A hydrocracking unit of an oil refinery that converts vacuum residue (i.e.,
short residue) into traffic fuels.
• HSEQ
Health, safety, environment, quality.

• HVO
HVO Hydrotreated Vegetable Oil – a highquality biofuel produced by
hydrotreating vegetable oil or animal fat.
• ICC Incoterms 2000
Standardized delivery terms for goods issued by the International Chamber of
Commerce, which allocate the costs and liabilities of deliveries between
sellers and purchasers of goods.
• IGO
Intergovernmental organizations.
• ISCC
International Sustainability and Carbon Certification
• ISO
Glossary
The International Organization for Standardization.
• ISO 9001
An international standard established by the ISO to certify quality
management systems.
• ISO 14001
An international standard established by the ISO to certify environmental
management systems.
• Iso-octane
A high-octane and low RVP gasoline blending component derived and
produced from field butane.
• LOPC
(Loss of Primary Containment) – any non-planned discharge of material that
gets outside its primary containment or from area of intended use; may also
mean two products mixing by accident and not necessarily in the
environment.
• LPG
Liquefied petroleum gas. A gas mixture used for fuel purposes, containing
propane, propene, butane, or butene as its main components, that has been
liquefied to enable it to be transported and stored under pressure.
• Lubricants
Glossary
Fluids used to reduce friction and wear between solid surfaces (typically
metals) in relative motion. Lubricants are generally derived from petroleum.
• MK-1 diesel
A Swedish diesel fuel quality. MK-1 diesel has a low density (minimum of 800
kg/m3 and maximum of 820 kg/m3 at 15 C), low aromatics content
(maximum of five volume percent), non-measurable polyaromatics content
and maximum sulphur content of 10 ppm. The 95 percent point of distillation
is more than 285 C.
• MTBE
Methyl tertiary butyl ether, a high-octane component, and oxygenate, used in
the production of low-emission gasoline.
• Naphtha
A low-octane gasoline product used as a feedstock by the chemicals industry,
as a feedstock for catalytic reforming, and in the production of hydrogen.
• Natural gas
Any hydrocarbons or mixture of hydrocarbons and other gases consisting
primarily of methane which at normal operating conditions is in a gaseous
state.
• NExBTL diesel
Glossary
Neste Oil has developed a premium-quality renewable diesel production
technology, that can use a flexible mix of vegetable oil and waste fat from the
food industry to produce premium-quality NExBTL Renewable Diesel. NExBTL
diesel is compatible with the existing vehicle fleet as well as diesel fuel
logistic system and is technically easy to blend in conventional diesels in all
rations.

NExBTL technology
NExBTL is a technology developed by Neste Oil to produce high quality
biodiesel from any vegetable oil or waste fat from the food industry. Neste
Oil's NExBTL technology allows Neste Oil to use flexible feedstocks and to
produce diesel with premium qualities.
• NExETHERS and NExTAME
NExETHERS and NExTAME are Neste Oil’s proprietary technologies for
combined production of ethers in one unit. The technologies result in high
yields of gasoline ethers and almost total conversion of feed alcohol and offer
refiners an opportunity to maximize oxygenate production. Ethanol ethers
give an easy access for refineries to blend biofuels into the gasoline pool.
• NExOCTANE
Glossary
NExOCTANE is Neste Oil’s proprietary technology and it converts selectively
isobutylene to premium quality gasoline.
The product comprises primarily of iso-octane that can be saturated from iso-
octene. Both iso-octene and iso-octane have excellent blending properties.
The technology gives a cost effective route to convert MTBE units into
production of a high-value product.
• NGO
Non-governmental organizations.
NOx
Nitrogen oxides. Permanent nitrogen compounds, some of which destroy
stratospheric ozone and some of which are
‘‘greenhouse’’ gases that may contribute to global warming.
OHSAS 18001
International standards used to certify occupational health and safety
management systems.
• PAO
Polyalphaolefin. The main component of synthetic lubricants.
• Petrochemicals
Glossary
An intermediate product of oil refining which is used as a feedstock for
polymers and various other chemical products.
• Ppm
Parts per million.
• Probable reserves Glossary
In general, probable reserves may include (1) reserves anticipated to be
proved by normal step-out drilling where ubsurface control is inadequate to
classify these reserves as proved, (2) reserves in formations that appear to be
productive based on well log characteristics but lack core data or definitive
tests and which are not analogous to producing or proved reserves in the
area, (3) incremental reserves attributable to infill drilling that could have
been classified as proved if closer statutory spacing had been approved at the
time of the estimate, (4) reserves attributable to improved recovery methods
that have been established by repeated commercially successful applications
when (a) a project or pilot is planned but not in operation and (b) rock, fluid,
and reservoir characteristics appear favorable for commercial application, (5)
reserves in an area of the formation that appears to be separated from the
proved area by faulting and the geologic interpretation indicates the subject
area is structurally higher than the proved area, (6) reserves attributable to a
future workover, treatment, re-treatment, change of equipment, or other
mechanical procedures, where such procedure has not been proved
successful in wells which exhibit similar behavior in analogous reservoirs, and
(7) incremental reserves in proved reservoirs where an alternative
interpretation of performance or volumetric data indicates more reserves
than can be classified as proved.
• Proved reserves
Glossary
In general, reserves are considered proved if the commercial producibility of the reservoir is
supported by actual production or formation tests. In this context, the term proved refers to the
actual quantities of petroleum reserves and not just the productivity of the well or reservoir. In
certain cases, proved reserves may be assigned on the basis of well logs and/or core analysis that
indicate the subject reservoir is hydrocarbon bearing and is analogous to reservoirs in the same
area that are producing or have demonstrated the ability to produce on formation tests. The
area of the reservoir considered as proved includes (1) the area delineated by drilling and
defined by fluid contacts, if any, and (2) the undrilled portions of the reservoir that can
reasonably be judged as commercially productive on the basis of available geological and
engineering data. In the absence of data on fluid contacts, the lowest known occurrence of
hydrocarbons controls the proved limit unless otherwise indicated by definitive geological,
engineering or performance data. Reserves may be classified as proved if facilities to process and
transport those reserves to market are operational at the time of the estimate or there is a
reasonable expectation that such facilities will be installed. Reserves which are to be produced
through the application of established improved recovery methods are included in the proved
classification when (1) successful testing by a pilot mproject or favorable response of an installed
program in the same or an analogous reservoir with similar rock and fluid properties provides
support for the analysis on which the project was based, and (2) it is reasonably certain that the
project will proceed. Reserves to be recovered by improved recovery methods that have yet to
be established through commercially successful applications are included in the proved
classification only (1) after a favorable production response from the subject reservoir from
either (a) a representative pilot or (b) an installed program where the response provides support
for the analysis on which the project is based and (2) it is reasonably certain the project will
proceed.
• PSE
Glossary
(Process Safety Event) – an unplanned or uncontrolled discharge of material
(LOPC) from a process, or an undesired event or condition that, under slightly
different circumstances, could have resulted in a LOPC of a material.
• Refinery
A facility used to process crude oil. The basic process unit in a refinery is a
crude oil distillation unit, which splits crude oil into various fractions through
a process of heating and condensing. Simple, or hydroskimming, refineries
normally have crude oil distillation, catalytic reforming, and hydrotreating
units. The demand for lighter petroleum products, such as motor gasoline
and diesel fuel, has increased the need for more sophisticated mprocessing.
Complex refineries have vacuum distillation, catalytic cracking, or
hydrocracking units. Cracking units process vacuum oil into gasoline, gasoil,
and heavy fuel oil.
• Reformulated gasoline
An advanced type of motor gasoline formulated to produce lower
environmental emissions than conventional gasolines.
• Renewable energy
Renewable energy sources include wood and biomass, as well as solar, wind
and tidal energy, and hydroelectric power.
• ROACE
Glossary
Return on Average Capital Employed, After Tax.
RSPO
Roundtable on Sustainable Palm Oil -organization.
• RSB
Roundtable on Sustainable Biofuels -organization.
• RTRS
Round Table on Responsible Soy -organization.
SO2
Sulphur dioxide, the combustion product of sulphur, which is formed through
the use of fuels containing sulphur.
• Solvent
A liquid that is used for diluting or thinning a solution. A liquid that absorbs
another liquid, gas, or solid in order to form a homogeneous mixture.
• SPE
Society of Petroleum Engineers.
• Spot market
With respect to commodities such as oil, a term used to describe the
international trade in one-off cargoes or shipments of commodities, such as
crude oil, in which prices closely follow demand and availability.
• Sulphur-free fuel
Glossary
Fuel with a sulphur content less than 10 mg/kg (ppm).
• TAME
Tertiary amyl methyl ether, a high-octane component, or oxygenate, used in
the production of low-emission gasoline.
• Ton
1 metric ton (1,000 kilograms) or approximately 2,205 pounds.
• Worldscale
A standard system for assessing freight rates. A set of base charter rates is
published annually for a theoretical standard vessel plying its trade between
each of the world’s most common shipping origins and destinations. Spot
freight rates are commonly expressed as percentages of those theoretical
rates.