Bulk Fuels

1. Bulk Fuels

2. What is Energy? Energy is the Ability To Do Work All of these sources provide us the energy we need to live our busy lives.

3. FUELS • Sources of Energy • Renewable/Non renewable • Solid/Liquid/Gas • Conventional/Non Conventional

4. Primary Energy Consumption by Fuels-2007(source: BP Statistical Review-2008)

5. Major Energy Consumption Centre

6. Major Oil Consumption Centre

7. Oil Consumption: Major economies(Source: BP Statistical review-2008)

8. Petro-Fuels • Fossil fuels derived from Crude Oil • Gaseous as well as Liquid • Vast applications—Domestic/Industrial/Agriculture/Auto • Store of Chemical energy • Provide thermal/light energy/mechanical energy by a process called combustion

9. Unique Features • Non renewable-limited resources • Millions of Years in formation • Highly significant for World’s/Country’s Energy Security needs • Associated Environmental hazards Call for judicious use

10. Liquid Petroleum Fuels • Motor Spirit • High Speed Diesel • Light Diesel Oil • Furnace Oil • LSHS/HPS • Naptha • SKO • ATF

11. MS • Transport fuels for SI Engines • Governing Specs IS:2796:2000 • Total 15 parameters • Driven by performance parameters & environmental considerations

12. HSD • Primarily Transport fuel for CI Engines operating over 750 RPM • Also used in stationary DG sets/Pumping sets/gas turbines • Governing Specs IS:1460:2005 • Total 20/22 parameters • Driven by performance parameters & environmental considerations

13. LDO • Fuel for stationary CI Engines operating below 750 RPM e.g. Pumping /DG Sets • Boilers • Governing Specs IS:1460:2005

14. FO • Dark viscous residual/ heavy distillate Fuel • Broadly used for steam generation, Industrial furnaces, power generation etc. • Also used as feed stock for fertilizer manufacture • Governing Specs IS:1593:1982 (LV/MV1/MV2/HV)/IS 15217:2002/IS:11488-1985

15. LSHS • Residual fuel produced by processing of indigenous crude oils • Obtained in lieu of Furnace Oil • Differ with FO in Viscosity/”S” Content • Require handling at temperatures higher than ambient due to high pour • Governing Specs IS:11489-1985 (for HPS)/Refinery specific (for LSHS)

16. Constituents of Fuels Saturated Ring Structure (eg Cyclo-pentene) Unsaturated Ring Structure (e.g. Benzene)

17. Typical Composition

18. Basic Combustion Reactions C+O2---- CO2 + 8084 K Cal/Kg of C 2C+O2----- 2CO + 2430 K Cal/Kg of C 2H2+O2 ---- 2H2O + 28922 K Cal/Kg of H S+O2 ----- SO2 + 2224 K Cal/Kg of S

19. MAIN SPECIFICATIONS VISCOSITY SULPHUR CONTENT GROSS CALORIFIC VALUE POUR POINT DENSITY FLASH POINT ASH CONTENT

20. VISCOSITY A measure of a fluid’ resistance to flow due to it’s internal friction. One of the most important physical property of a petroleum product. Significant in handling of fuels by pumps, injector systems and atomization rate on burners.

21. Viscosity • Kinematic Viscosity Measure of resistive flow of a fluid under influence of gravity • Dynamic Viscosity Also called Absolute viscosity; Product of KV and density(ή=Уxρ) • SI unit of KV: c St (1 cSt = 1 sq mm/s) • SI unit of AV :milli Pascal-second (mPa-s)

22. KV of various liquid fuels

23. SULPHUR CONTENT Present in petroleum products because crude oil itself contains the S. Can’t be completely removed economically , presence minimized. High S fuels are injurious to many metallurgical processes such as annealing of metals. Environmental hazard.

24. S in various liquid fuels

25. POUR POINT Lowest temperature at which the fuel will still remain fluid. An indication of the lowest temperature at which the fuel can be pumped for burning.

26. Pour of various liquid fuels

27. DENSITY Mass per unit volume An expression of the weight to volume relationship of a product. Practically all liquid petroleum products are handled and sold on a volume basis. Density in comparison to a parent value aids in detecting contamination/ adulteration of fuels.

28. Density of various liquid fuels

29. FLASH POINT Lowest temperature at which vapors of fuel catch fire. Fire Point is the temperature at which the vapor continue to burn. Important for fuel handling/storage. Low flash point causes fuel to be a fire hazard. Petroleum products are classified as Dangerous or Non-dangerous for handling purpose based on flash point.

30. Flash of various liquid fuels

31. Explosives Regulation for Storage

32. ASH CONTENT Related to non combustible materials in the form of solid particles and oil/ water soluble metallic compounds. Ash forming materials can cause fuel system wear, fuel filter plugging and increase in engine deposits. May cause harmful deposits and high temperature corrosion in boilers, attack refractory in high temperature furnaces.

33. Ash Content in various liquid fuels

34. OCTANE RATING A measure of the antiknock quality - ability to burn without causing the audible “Knock” or “Ping” in a SI engine. Low anti-knock quality causes knock -a high pitch metallic rapping noise. Audibly annoying, leads to uncontrolled pre-ignition & damages piston crown and other engine parts.

35. OCTANE RATING • Measured in standard single cylinder, variable compression ratio SI engine with primary reference fuel • RON-under mild conditions • MON-under severe condition • AKI=(R+M)/2:Approximates the “Road Octane Number”

36. CETANE NUMBER A measure of Ignition quality of Diesel fuel Determined in a single cyl. test engine Measures ignition delay compared to primary reference fuels The higher the Cetane number ,easier a high speed ,direct injection engine will start, less “white smoke” & “diesel knock” after start up.

37. Up-gradation of MS Specs

38. Up-gradation in HSD Specs

39. Our Role to maximize

40. Consumer Buying-Typical features • Fewer & Larger buyers • Direct Purchasing, Close Supplier-Customer relationship • Derived & Inelastic Demand • Professional Purchasing • Prefer for System Buying/Total solution • Collective Decisions-Group dynamics • Multiple sales Calls/Aggressive sales efforts

41. Participants in Consumer Buying Process • Initiators • Users- Define Product Requirement • Influencers-Help define specs/Evaluation of alternatives/Technical • Deciders- Decide on Product/Supplier • Buyers –Select vendors/Negotiate • Gate-Keepers-Receptionist/Security • Custodians-Stores/Inventory Managers

42. Marketing Mix of Fuels Marketing Set of Marketing tools a seller uses to pursue marketing objectives in target market

43. Marketing Mix :Product 4Ps • “Bottleneck” Products • Standardized/Undifferentiated • Little scope of customization • High Entry, Exit Barriers

44. Marketing Mix-Price 4Ps • Standard/Transparent Prices • Comparable with global trends • Commercial terms/Discounts • Landed cost considering logistics & tax implications

45. Marketing Mix: Promotion 4Ps • Customer Relationship Management • Interpersonal & Individual factors • Competitive Intelligence System • Long Term Contracts • Technical Services/Energy Audit/Seminars • Emphasis to offer Higher Customer value • Effective Sales Force

46. Marketing Mix : Place 4Ps • Supply Chain Management • Infrastructure/Strategic Locations • Mode of transport -Delivered/Ex MI Supplies • Inventory Management

47. Improvement in Profitability

48. PROFITABILITY –Some terms • BCSP: Selling price to the customers ex a depot/terminal: Location specific • Customer price: Customer specific selling price • RTP: Price at which product is transferred by refinery to marketing • Marketing Margin: BCSP-RTP

49. PRESENT PRICING STRUCTURE-FO/LDO/LSHS • Prices based on Import parity • Prices revised on fortnightly basis • Previous fortnight’s average international price forms basis for current fortnight’s pricing

50. COMPONENTS AFFECTING PRICE • International price of the product • International freight rates • Custom Duties • Exchange Rate • Others - Insurance, port charges etc. • Excise and Sales Tax.