Refinery Planning
Refinery Planning
(OP)
This question is specifically related to refinery LP and pricing. Hopefully this is the right section to post it.
For our input prices for crude for the current month we use Brent Dtd + the differential on the crude at which the crude can be purchased today for delivery in M+1, 2 etc.. i.e. the so-called replacement value, and not the actual differential at which you purchased the crude.
Likewise, on the products, you use the current Platts price, with the spot premium / discount.
My question is, how do other refineries do it. If one uses the purchased differential you see different economics to the replacement value.
For the experienced LP planners, is there any generally accepted way of doing it?
For our input prices for crude for the current month we use Brent Dtd + the differential on the crude at which the crude can be purchased today for delivery in M+1, 2 etc.. i.e. the so-called replacement value, and not the actual differential at which you purchased the crude.
Likewise, on the products, you use the current Platts price, with the spot premium / discount.
My question is, how do other refineries do it. If one uses the purchased differential you see different economics to the replacement value.
For the experienced LP planners, is there any generally accepted way of doing it?
Talk To Other Members
RE: Refinery Planning
RE: Refinery Planning
If you take issue with this post under this section, then stick to pumps only.
RE: Refinery Planning
I suppose there are a few ways of setting up the LP. This is just one way. I recall setting it up for 4 quarters of production with inventories carried from quarter to quarter. Retail may be fixed while wholesale is variable. Probably some crude volumes are contracted for so they are fixed. A couple of crudes may be allowed to vary their volume based on product demand, and likely crude price and sulphur level. Refinery unit capacities would limit what can be run
HAZOP at www.curryhydrocarbons.ca