Petroleum Refining and Petrochemical Industry Integration and Coordination under Uncertainty
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Petroleum refining and the petrochemical industry account for a major share in the world energy and industrial market. In many situations, they represent the economy back-bone of industrial countries. Today, the volatile environment of the market and the continuous change in customer requirements lead to constant pressure to seek opportunities that properly align and coordinate the different components of the industry. In particular, petroleum refining and petrochemical industry coordination and integration is gaining a great deal of interest. However, previous research in the field either studied the two systems in isolation or assumed limited interactions between them. The aim of this thesis is to provide a framework for the planning, integration and coordination of multisite refinery and petrochemical networks using proper deterministic, stochastic and robust optimization techniques. The contributions of this dissertation fall into three categories; namely, a) Multisite refinery planning, b) Petrochemical industry planning, and c) Integration and coordination of multisite refinery and petrochemical networks. The first part of this thesis tackles the integration and coordination of a multisite refinery network. We first address the design and analysis of multisite integration and coordination strategies within a network of petroleum refineries through a mixed-integer linear programming (MILP) technique. The integrated network design specifically addresses intermediate material transfer between processing units at each site. The proposed model is then extended to account for model uncertainty by means of two-stage stochastic programming. Parameter uncertainty was considered and included coefficients of the objective function and right-hand-side parameters in the inequality constraints. Robustness is analyzed based on both model robustness and solution robustness, where each measure is assigned a scaling factor to analyze the sensitivity of the refinery plan and the integration network due to variations. The proposed technique makes use of the sample average approximation (SAA) method with statistical bounding techniques to give an insight on the sample size required to give adequate approximation of the problem. The second part of the thesis addresses the strategic planning, design and optimization of a network of petrochemical processes. We first set up and give an overview of the deterministic version of the petrochemical industry planning model adopted in this thesis. Then we extend the model to address the strategic planning, design and optimization of a network of petrochemical processes under uncertainty and robust considerations. Similar to the previous part, robustness is analyzed based on both model robustness and solution robustness. Parameter uncertainty considered in this part includes process yield, raw material and product prices, and lower product market demand. The Expected Value of Perfect Information (EVPI) and Value of the Stochastic Solution (VSS) are also investigated to numerically illustrate the value of including the randomness of the different model parameters. The final part of this dissertation addresses the integration between the multisite refinery system and the petrochemical industry. We first develop a framework for the design and analysis of possible integration and coordination strategies of multisite refinery and petrochemical networks to satisfy given petroleum and chemical product demand. The main feature of the work is the development of a methodology for the simultaneous analysis of process network integration within a multisite refinery and petrochemical system. Then we extend the petroleum refinery and petrochemical industry integration problem to consider different sources of uncertainties in model parameters. Parameter uncertainty considered includes imported crude oil price, refinery product price, petrochemical product price, refinery market demand, and petrochemical lower level product demand. We apply the sample average approximation (SAA) method within an iterative scheme to generate the required scenarios and provide solution quality by measuring the optimality gap of the final solution.
Cite this work
Khalid Alqahtani (2009). Petroleum Refining and Petrochemical Industry Integration and Coordination under Uncertainty. UWSpace. http://hdl.handle.net/10012/4204