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    Nelson's Complexity Factor: Reliance Industries Limited, Maker Chambers IV, Nariman Point, Mumbai

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    raj hai
    The document discusses Nelson's Complexity Factor, which is used to calculate the equivalent distillation capacity (EDC) of refineries as a measure of manpower needs. The EDC is calculated through a two-step process of multiplying the capacity of each refinery unit by its Nelson's complexity factor and summing the products. The Nelson Complexity Index assigns numerical factors to different processing units to measure a refinery's secondary conversion capacity relative to its primary distillation capacity, as an indicator of investment costs and value-addition potential. Specifically, the Nelson Complexity Index for Reliance's Jamnagar refinery is over 9.93, pointing to its ability to process lower quality crudes and produce more valuable products.

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    Nelson's Complexity Factor: Reliance Industries Limited, Maker Chambers IV, Nariman Point, Mumbai

    Uploaded by

    raj hai
    242 views2 pages
    The document discusses Nelson's Complexity Factor, which is used to calculate the equivalent distillation capacity (EDC) of refineries as a measure of manpower needs. The EDC is calculated through a two-step process of multiplying the capacity of each refinery unit by its Nelson's complexity factor and summing the products. The Nelson Complexity Index assigns numerical factors to different processing units to measure a refinery's secondary conversion capacity relative to its primary distillation capacity, as an indicator of investment costs and value-addition potential. Specifically, the Nelson Complexity Index for Reliance's Jamnagar refinery is over 9.93, pointing to its ability to process lower quality crudes and produce more valuable products.

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    The document discusses Nelson's Complexity Factor, which is used to calculate the equivalent distillation capacity (EDC) of refineries as a measure of manpower needs. The EDC is calculated through a two-step process of multiplying the capacity of each refinery unit by its Nelson's complexity factor and summing the products. The Nelson Complexity Index assigns numerical factors to different processing units to measure a refinery's secondary conversion capacity relative to its primary distillation capacity, as an indicator of investment costs and value-addition potential. Specifically, the Nelson Complexity Index for Reliance's Jamnagar refinery is over 9.93, pointing to its ability to process lower quality crudes and produce more valuable products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    242 views2 pages

    Nelson's Complexity Factor: Reliance Industries Limited, Maker Chambers IV, Nariman Point, Mumbai

    Uploaded by

    raj hai
    The document discusses Nelson's Complexity Factor, which is used to calculate the equivalent distillation capacity (EDC) of refineries as a measure of manpower needs. The EDC is calculated through a two-step process of multiplying the capacity of each refinery unit by its Nelson's complexity factor and summing the products. The Nelson Complexity Index assigns numerical factors to different processing units to measure a refinery's secondary conversion capacity relative to its primary distillation capacity, as an indicator of investment costs and value-addition potential. Specifically, the Nelson Complexity Index for Reliance's Jamnagar refinery is over 9.93, pointing to its ability to process lower quality crudes and produce more valuable products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    Nelson's Complexity Factor

    In the Refining Industry, a common index termed as "EDC" - Equivalent Distillation


    Capacity is defined to calculate the benchmark of manpower requirement.

    Calculation of EDC is a two-step process. The first step is the multiplication of the
    capacity of each unit in the refinery with the Nelson's complexity factor and the
    second is the sum of these products to arrive at the EDC for the refinery in total.

    Nelson Complexity Index

    Nelson Complexity Index is a measure of secondary conversion capacity in


    comparison to the primary distillation capacity of any refinery. It is an indicator of
    not only the investment intensity or cost index of the refinery but also the value
    addition potential of a refinery.

    The index was developed by Wilbur L Nelson in 1960 to originally quantify the
    relative costs of the components that constitute the refinery. Nelson assigned a
    factor of one to the primary distillation unit. All other units are rated in terms of
    their costs relative to the primary distillation unit also known as the atmospheric
    distillation unit.

    Following are the factors for the various Processing Units :

    Nelson's Complexity Index


    Unit
    Older Reports 1998 Reports

    Distillation Capacity 1.0 1.0

    Vacuum Distillation 2.0 2.0


    Thermal Processes 5.0 2.75
    (Categories 1 and 2 - 2.75)
    (Categories 3 to 5 - 6.00)
    Coking 6.0
    Catalytic Cracking 6.0 6.0
    Catalytic Reforming 5.0 5.0
    Catalytic Hydrocracking 6.0 6.0
    Catalytic Hydrorefining 3.0 3.0
    Alkylation / Polymerization 10.0 10.0
    Aromatics / Isomerisation 15.0 15.0
    Lubes 60.0 60.0
    Asphalt 1.5 1.5
    Hydrogen (Mcfd) 1.0 1.0
    Oxygenates 10.0 10.0

    Reliance Industries Limited, Maker Chambers IV, Nariman Point, Mumbai. 1


    (MTBE / TAME)
    Thermal Operations
    Thermal Cracking 3.0
    Visbreaking 2.5
    Fluid Coking 6.0
    Delayed Coking 6.0
    Others 6.0

    The Nelson Complexity Index method uses only the Refinery Processing Units or the
    " Inside Battery Limits " ( ISBL ) Units, and does not account for the costs of Off-
    sites and Utilities or the " Outside Battery Limits " ( OSBL ) Costs, such as Land,
    Storage tanks, terminals, utilities required etc.

    The Nelson Complexity Index provides insight into refinery complexity, replacement
    costs and the relative value addition ability and allows different refineries to be
    ranked.

    The Nelson Complexity Index for the Reliance refinery is 9.93 and for the overall
    Jamnagar Complex is over 14.0.

    Essentially a high Nelson Complexity Index as the Reliance Jamnagar Refinery is,
    points to the following characteristics .

    • Ability to process inferior quality crude or heavy sour crudes. For example the
    Jamnagar Refinery generally processes crudes which are 5?API lower and
    0.7wt% sulphur higher compared to Indian peers.

    • Ability to have a superior refinery product slate comprising of high


    percentage of LPG, light distillates and middle distillates and low percentage
    of heavies and fuel oil. For example the Jamnagar Refinery produces no fuel
    oil which is unmatched by the Indian peers.

    • Ability to make high quality refinery products such as Bharat 3 gasoline or


    diesel. For example the Jamnagar Refinery can make Euro 3 grade gasoline
    unmatched by the Indian peers.

    Reliance Industries Limited, Maker Chambers IV, Nariman Point, Mumbai. 2

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