KBC assessed the technical feasibility and the economics of a refinery conversion to an importing terminal supporting their domestic requirements, and recommend solutions to overcome any potential constraints.
To consider the long term shareholder value of continuing to operate as a refinery with increased environment regulatory investment costs plus importing the local fuels shortfall against the conversion of the site to an importing terminal.
KBC completed technical and financial analysis to identify the constraints in the existing infrastructure operating as an import terminal and then evaluated possible options to resolve those constraints.
The scope envelope covered product movement, tankage requirement, utilisation and demurrage throughout harbour, berths, products pipelines, harbour storage terminals, intersite transfer lines, refinery storage, rail loading and truck loading facilities
Stochastic modelling was used to assess the flexibility and constraint of the existing assets for conversion of the refining operation to an import terminal.
Evaluation of the required investment, capital expenditures, financial model of the refining vs. terminal business cases was stress tested against agreed likely future scenarios.
Based on KBC recommendations, the client’s board approved the budget for next phase of the conversion project. The recommended investments are mainly required at the harbour terminal facilities with new tankage and access to a new berth to meet the ship forecast schedule.
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BLOG
May 13, 2020
Sanjay Bhargava, Principal Consultant
Do you have an accurate representation of your plant to drive the right decisions in your organization at this critical time?
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