One expression frequently used since the Nigerian National Petroleum Company Limited recommenced operations at the rejuvenated Port Harcourt Refinery last November is ‘blending’, as many accused the state-owned company of not being transparent about the process of refining their products.
Unlike the usual petroleum refining process that typically involves fractional distillation, in which crude oil is heated to vaporise its different components before they are then separated into different products based on their melting point, blending is a process of combining two or more compatible preprocessed components to produce gasoline products with specific properties.
These techniques include mixing different crude oils at specific ratios, using blending additives to modify properties, and employing sophisticated equipment for precise control. It heavily relies on understanding the compatibility of different crude oils and employing efficient mixing methods, as Modcom stated.
With growing efforts around the world to combat climate change and reduce carbon footprints, there arises the need for a change in the oil and gas industry, and product blending is now providing alternative means for refineries to produce petroleum products that meet specific environmental requirements.
There are at least five reasons refineries worldwide embrace blending of petroleum products.
Regulatory compliance
About 117 countries have pledged to triple the world’s renewable energy capacity and double energy efficiency by 2030. Governments in those countries are rapidly enacting certain policies to meet those goals, so blending allows refineries to produce products for the market that satisfy certain specifications and environmental regulations.
These stringent regulations may include limits on sulfur content, levels of emission in fuels, and incorporation of biofuels and renewable components into products, which enable refineries to meet sustainability targets and reduce carbon footprints.
Better profit margins
Profit-making is also a major factor pushing refineries to embrace blending. It allows them to combine and manipulate various components to optimise operations, control product quality and improve yield optimisation to achieve better profit margins. For example, the mixture of low-octane gasoline and additives or high-octane components instead of producing a high-grade product from scratch.
It is estimated that the price of crude oil constitutes a significant portion (around 80 to 90 per cent) of the refinery’s cash flow; thus, blending enables the reduction of crude feedstock cost without affecting the quality of petroleum products while maximising their income.
Improved product quality
One of the driving forces behind blending is improving product quality to meet global standards. Blending allows refineries to manipulate different compatible intermediate components with the aim of achieving final products with unique characteristics that are more appealing to consumers. It creates competition among companies and, in turn, increases the need for these refineries to produce better products to outsell their competitors in the market.
Renewable potentials
Fuel blending simply describes the recycling of solvent waste — combining two or more fuels that are ordinarily destined for disposal. This process enables refineries to extend the life of products and intermediates beyond their original capacity instead of starting another process of oil extraction and refining from ground zero.
Those products and intermediates may no longer meet manufacturer specifications after the initial use. However, they still contain significant amounts of potential energy that can be combined with other products, creating an opportunity to manufacture valuable new products that can serve as an alternative fuel in energy production.
Operational flexibility
Blending offers refineries the flexibility to respond quickly to market changes by adjusting product formulations based on crude quality, supply, and demand. During peak demand periods, companies can produce multiple grades of products, including gasoline, diesel, jet fuel and others, to meet specific market demands. One example is creating premium and regular fuel grades from the same refinery streams by adjusting blending ratios to satisfy market demands in different regions based on their economic standings.
