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What is Mini Refinery
Mini-refineries, like large refineries, are responsible for refining Used oil , with the difference that they have much smaller dimensions and scale.
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With the growth of the population in the country and the need of various factories and industries in all parts of the country for oil products, the construction of refineries or mini-refineries has become popular in our country.
The presence of scattered oil lines in different parts of the country is also a reason for investors to build mini refineries.
Diesel, liquefied gas, naphtha, sulfur, bitumen, fuel oil and chemical products are among the most important products produced by mini refiners.
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Mini Refinery Plants
What is the purpose of writing the briefing plan of the mini-refinery?Investors who intend to set up a mini-refinery must obtain an establishment license from the relevant organizations in order to start their industrial activity. For this purpose, investors should first order and set up the explanatory plan of the mini-refinery.
In the explanatory plan, the experts review the project from the economic, technical and operational point of view and prepare the plan for presentation to the organization or institution issuing the license.
Getting a loan by the investor is another application of the justification plan. Usually, for the construction of mini-refineries, facilities are given to investors from the government.
Allocation of facilities is not possible without providing a justification plan according to the requested format of the bank, because the bank must first ensure the justification of the plan.
Investigating the necessary capital for the construction of a mini-refinery
Not needing huge capital is one of the advantages of building a mini refinery.
The initial capital to start this business primarily depends on the capacity of the mini-refinery. Mini refiners can refine 200 barrels to 20 thousand barrels of Used oil per day.
In addition, some mini refiners have the ability to move; But some are built permanently. Mobile mini refiners require higher capital than the fixed type.
The amount of capital depends on the refining process of Motor oil and the type of product produced.
The estimation of the initial capital is one of the important pillars and principles of the justification plan of the small-scale mini-refinery because other financial indicators of the plan are analyzed based on it.
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Calculation of mini refiner setup costs
Calculation and estimation of expenses in this business should be done by collecting daily data and accurate information so that financial resources are provided for their payment by the investor.
For accurate configuration of financial indicators, all costs should be checked from the smallest to the largest cost.
The cost of land, cost of manpower, cost of fuel consumption, etc. should be clearly stated.
The authors and compilers of the mini-refinery explanatory plan determine the costs in a specialized manner and with daily amounts so that the project has the most efficient and optimal conditions possible.
What is the profit of the mini refinery?
The construction of a mini-refinery is a profitable investment project because it is possible to produce various petroleum products in the shortest possible time. The production of diverse products provides good added value for entrepreneurs in this sector.
The internal rate of return in this plan is between 25 and 40 percent and the investment return period is estimated between 3 and 4 years.
Calculating the net and gross profit of the project and other factors related to profit are also on the agenda of the experts for writing the explanatory plan of the mini-refinery. Profit calculation is done with specialized software and according to the amount of initial capital and costs.
The equipment needed in the mini refinery business plan
One of the important parts of the mini-refinery briefing plan is the analysis of raw materials, the review of the production process and the equipment needed in production, and the technical knowledge of the project in general.
In addition to Used oil , raw material in mini-refineries can include gas condensate, oil waste, light and heavy hydrocarbons, etc.
In general, the stages of production of petroleum products in a small-scale mini-refinery are as follows:
- Distillation
- Purification
- Separation
- Oil product production
- The equipment required in mini refiners are:
- Distillation
- Operational reservoirs
- Furnace
- heat exchanger
- Utility system
- Product depot tanks
- Product storage tanks
- Control room
- Cracking equipment
- Fire fighting system
- Provision of standard equipment for small scale refinery
- The production of high-quality petroleum products is the most important principle in the mini-refinery’s profitability. Production equipment and machinery play an important role in product quality. Not using standard equipment is one of the problems of this business.
high-quality petroleum products
However, by studying the technical part of the business plan, successful entrepreneurs buy the right equipment and prevent product quality from falling. In addition, investors with
In addition to high-quality petroleum products, they also bring good currency.
Construction of mini-refinery (small-scale refinery) – technical plan
Is the construction of a mini-refinery economically justifiable?
Mini refineries are generally built next to oil pipelines at a much lower cost than large refineries. Feed or raw material for these refineries is diverse and not only Used oil .
Currently, with the increase in the export of gas condensates by large refineries, the production of gas condensates by mini refineries and its sale inside the country brings a good profit for them.
In addition, due to the possibility of importing Used oil from other countries, it is also smart to build mini-refineries in border areas. In addition, the economic justification of the project has also been proven in the justification plan of the mini-refinery.
Ordering a special briefing plan for mini-refinery
Since mini-refineries are different in terms of specifications, volume and product type, it is not possible to propose a ready justification plan for them.
On the technical plan site, to support the mini refinery investors, we have considered two unique points: 5 months of free plan support and free online meeting.
The free online meeting is held at your request, dear investor, with the aim of answering your doubts and questions. In this meeting, our experts will provide you with explanations regarding the administrative process of obtaining a license for a mini-refinery, documents and bank guarantees, procedures for obtaining bank loans, etc.
