Glossary of Report No.33 of 2017 - Performance Audit Union Government of Petroleum and Natural Gas

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Glossary

S. No. Item Details


1. Crude Distillation Unit Distil and separate valuable distillates (LPG, Naphtha,
(CDU) Kerosene, Diesel etc) and bottom from the crude at normal
atmospheric pressure. Various fractions are further processed
in other units.
2. Continuous Catalytic It convert lower octane value naphtha into higher octane
Reformer Unit (CCR) products.
3. Delayed Coker Unit Converts low value residue into valuable products (Naphtha,
(DCU) Diesel and Coker gas oil) and Pet Coke.
4. Diesel Hydro The unit removes Sulphur, Nitrogen and metal impurities of
Desulphurisation Treating the feed received from different units.
Unit (DHDT)
5. Fuel & Loss Fuel & Loss refers to the cost that refineries incur due to the
fuel consumed to run the refineries and the fuel lost in the
system while processing crude into petroleum products.
6. Gas Oil Hydro De- Removes Sulphur from Light Gas Oil (LGO), Heavy Gas Oil
Sulphurisation (GOHDS) (HGO), and Vacuum Gas Oil (VGO) which is converted into
Unit ultra-low sulfur diesel to meet the sulfur specification of
diesel.
7. Gross Refinery Margin The Gross Refinery Margin (GRM) is the difference between
(GRM) the total value of petroleum products coming out of an oil
refinery (output) and the price of the crude used for producing
the petroleum products. GRM is typically expressed in US
dollars per barrel.
8. Heavy Coker Gas Oil This unit is a feed preparation unit for downstream PFCCU. It
Hydrotreating Unit produces feed stock of low sulfur, low nitrogen feed hydro
(CHTU) treated Heavy Coker Gas Oil feed stock for downstream
PFCC unit.
9. Hydrocracker Unit (HCU) Unit in which heavier fractions of VGO from the VDU and
Vis-breaker units are cracked into lighter, more valuable
middle distillates using hydrogen
10. Hydrogen Generation Unit Produces hydrogen by steam reforming of Naphtha
(HGU)

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Report No. 33 of 2017

11. Light or Heavy Crude Crude with High API (American Petroleum Index) is light
crude and crude with low API is heavy crude
12. Lump Sum Turn Key In LSTK contract, the contractor is entrusted with the
(LSTK) work/services at a fixed cost along with all associated risks till
the handing over of the project/asset.
13. Open Book Execution In an OBE contract, the buyer and seller of work/services
(OBE) agree on remunerable cost and margin that the supplier can
add to these costs. The project is invoiced to the customer
based on the actual cost plus the agreed margin.
14. Petrochemical Fluidized Produces fuel gas, LPG, polymer grade Propylene, Naphtha
Catalytic Cracking Unit and light cycle oil from unconverted bottoms from HCU,
(PFCCU) hydro-treated heavy Coker gas oil from CHTU and low
Sulphur VGO from CDU/VDU.
15. Poly Propylene Unit (PPU) Petrochemical unit for production of Poly Propylene from
Propylene, output of PFCCU.
16. Sulphur Recovery Unit Unit recovers Sulphur from the feed.
17. Sweet or Sour Crude Crude containing low sulphur content is termed as sweet
crude and crude with high sulphur content is termed as sour
crude.
18. Throughput The total tonnage of crude oil fed into an oil refinery is its
throughput.
19. Vacuum Distillation Unit Distills the residue crude from the bottom of the CDU to
(VDU) valuable gas oils.
20. Vis-breaker Unit (VBU) Upgrades short residues coming from the bottom of vacuum
distillation column by thermally cracking into lighter, reduced
viscosity products.

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