Reduction of Fuel Quality Giveaway

Client Overview

A leading oil and gas company operates a major petroleum refinery that produces transportation fuel. The refinery processes multiple feedstocks and utilizes complex blending strategies to meet fuel quality standards.

petroleum refinery

Challenge

The refinery was experiencing highly variable fuel quality giveaway, consistently exceeding specification limits. Over time, this quality giveaway accelerated, leading to significant inefficiencies, margin erosion and lost revenue. Despite the ability to blend additional refinery streams to increase fuel production, the refinery lacked an optimized blending strategy. Additionally, historical reliability issues and process control gaps were compounding the problem, making sustained improvement difficult.

Objectives

  • Identify and reduce sources of fuel quality variability.

  • Optimize blending strategies to incorporate additional lower value refinery streams while maintaining product integrity.

  • Minimize fuel quality giveaway while increasing production volumes.

  • Establish a sustainable quality control framework to maintain improvements over time.

Results

  • downtime icon

    reduction in quality variability

    50%

  • fuek icon

    increase in fuel production volumes

    20%

  • graph icon

    per year increase in revenue

    $2.5M+

  • Quality variability and giveaway significantly reduced, achieving tighter control over diesel production.

  • Fuel yield increased through optimized stream blending, unlocking additional production capacity.

  • Reduced operational costs & improved profitability, without requiring additional capital investment.

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Crude Oil Production Cost Reduction