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WPC Guide To Petrochemicals and Refining - Final PDF
WPC Guide To Petrochemicals and Refining - Final PDF
Petroleum
Council
Guide
Petrochemicals
and Refining
www.world-petroleum.org
ENGINEERING & CONSTRUCTION,
Outstanding solutions for the biggest
Oil & gas challenges
Saipem is a leading global general contractor, with a full range of project
management, engineering, procurement, construction and installation services,
with distinctive capabilities in the design and execution of large-scale offshore
and onshore projects, particularly in oil & gas markets.
Saipem has a growing focus on activities in remote and difficult areas, as well
as on major technological challenges, such as deep waters exploitation, gas
monetization and liquefaction, heavy and unconventional oils production and
conversion, and many others.
saipem.com
World
Petroleum
Council
Guide
Petrochemicals
and Refining
Published by International Systems and Communications Limited (ISC)
in conjunction with the World Petroleum Council (WPC).
Copyright 2013. The entire content of this publication is protected by copyright, full details of which are available from the
publisher. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems or transmitted in any form or
by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of the copyright owner.
Horizon Project, Phase I, for Canadian Natural Resources, Fort McMurray, Alberta, Canada.
l The design and construction under turnkey contractual
schemes, innovative for Alberta, Canada, of two hydrotreating
complexes for Canadian Natural Resources Ltd. to produce
synfuels from oil sands (Horizon Project, phases 1 and 2).
l Most recently the design and construction on an entirely
modular basis of the expansion of Staatsolies Tout Lui Faut
Refinery in Suriname.
All this in addition to the design and execution of equally
important but more traditional projects, such as the aromatics
complex, currently in progress, for the Rabigh II project in Saudi
Arabia, for the Saudi Aramco-Sumitomo JV.
Almost since its earliest days, many decades ago, Saipem has
been a world leader in the licensing, design and construction of
urea-based fertiliser plants, with 130 units licensed to date
based on the proprietary Snamprogetti urea technology, in every
corner of the world.
In the quest for economies of scale, following the successful Rio Polimeros Gas Chemical Complex, Brazil.
start-up of the largest single-train urea unit in operation, Profertils
Bahia Blanca Fertiliser Complex in Argentina, which achieved an Since the 1970s, Saipem has been engaged as an EPC
average yearly production of about 3,600 t/d in 2006 and has general contractor in many petrochemical projects in rapidly
become the reference for the subsequent design and construction growing world markets, from China to the Americas, completing
of todays biggest ammonia-urea complexes, at the end of 2010 more than 160 petrochemical plants and integrated complexes
Saipem completed and put on stream the first of the new wave of worldwide, producing olefins and diolefins, polymers and
world largest single train units, the Daharki Ammonia-Urea Complex elastomers as well as base and intermediate chemicals, all this
for Engro in Pakistan, with the design production capacity of 3,835 by adopting the most modern technologies from leading
t/d of urea. Two more such units, with the capacity of 3,850 t/d, licensors (e.g. Univation). An example of such an involvement in
were recently completed in Qatar and several others are at various a multi-billion dollar project is the recent design and execution
stages of design and construction in India, Saudi Arabia and Nigeria. of the Rio Polimeros Gas Chemical Complex in Brazil, in JV with
In addition to continuous technology improvements, e.g. the ABB Lummus.
new Omegabond Advanced Tubing Technology for improved Therefore, in downstream as well as in upstream markets,
stripper performance, developed in collaboration with ATI onshore as well as offshore, Saipem confirms that it is today not
WahChang, and the adoption of continuously improved process only one of the world largest, but also one of the most balanced
schemes for increased reliability and availability, environmental engineering and construction contractors in the oil and gas
impact reduction and energy savings, Saipem has recently industry. Its many achievements in other markets have not
developed a ready-for-implementation design for single-train distracted it from its strong focus also on the most exacting
plant capacities exceeding 5,000+ t/d. challenges in the downstream process industries.
Also in petrochemicals, the early steps of Saipems involve
ment as an engineering and construction main contractor date Daslav Brkic
back to the late 1950s, with Snamprogettis contribution to the Senior Vice President, Business Development
creation of Enis chemical production sites in Gela, Sicily, and Saipem
during the 1960s of other sites, in support of the rapid growth
of the leading shareholder at that time. daslav.brkic@saipem.com
5
The Presidents opening remarks
The Presidents
Opening
Remarks
Petrochemical producers need to
innovate and focus on sustainability
in a world that is undergoing rapid
social, political and economic
change.
Renato Bertani.
It has been a long trajectory since the first World study and the first gallon of a processed product to
Petroleum Congress was held in London in 1933, span a full decade. This is more than enough time
but the principles of the WPCs mission never for significant changes in availability, grade and
changed: Sustainable production and consump price of feedstocks, demand, specification require
tion of oil, natural gas and its products for the ments, environmental and safety regulations. This
benefit of humankind. is only a short list of the enormous uncertainties
This WPC Guide has been prepared with those that need to be taken into consideration when
principles in mind. It is aimed at those who have planning large and long-term investments.
an interest, either as a regulator, producer or con While planning for and dealing with changes
sumer, in refined products and petrochemicals. That may impact on economic performance, account
means all of us. Modern life is all but impossible ing for human needs is essential when it comes to
without such products. This book aims to assist in sustainability. It is only those projects that prioritise
the understanding of the issues associated with the safety of employees and communities nearby,
this capital-intensive, socially and economically environmentally friendlier processes and products,
high-impact sector of the petroleum value chain. and superior business ethics that will be sus
In the last two decades, we have witnessed social, tainable and profitable in the long term.
economic and political change at unprecedented We trust that the information provided in this
speed. It is quite common for new products and guide will facilitate the understanding of these
technologies to become obsolete just a few years interrelated issues. And that all of us, as producers
after they are introduced. Consumer demand pat or consumers, will be able to make more informed
terns can change almost overnight and social media decisions, even if only at choosing the right fuel
can trigger rapid political and economic reforms. grade at the petrol pump.
This pattern of constant, fast change is no diff
erent in the petrochemical sector. But it is not un Renato Bertrani
common for the gap between the first viability President, World Petroleum Council
6 WPC Guide
Message from the Director General
Message from
the Director
General
Over the decades, the technology
has changed but oil, gas and coal
are still being used to create many
products we take for granted.
Dr Pierce Riemer.
This book emphasises that nearly every aspect of covered new oil fields, drilled deeper oil wells
modern life is impacted by oil and gas. Oil is used for than Colonel Drakes first 70-foot well, and made
fuels that drive our vehicles. Power stations burn oil great strides in refining and distribution. The first
and gas to produce electricity, oil and gas are used to oil refinery was constructed in 1862. Gasoline was
create medicines, plastics, textiles, cosmetics and a by-product of these early units, and emerged as
many other products that enhance our lives. their most important product. The interdepen
In the 1800s, oil was a by-product of the salt dency of the oil and auto industries became clear
business as wells drilled for salt water produced as priorities overlapped, and superior engines and
foul-smelling petroleum. Following experimen cleaner burning fuels were produced.
tation in distilling this liquid petroleum, a lamp oil Since the 1960s, refiners have worked on
called carbon oil was produced in 1851. It burned cleaner burning fuels to satisfy environmental
with little smoke and odour and was sold for $1.50 concerns. We are now entering the age of the
a gallon. Prices and chemistry have changed unconventional refinery. From the early days of
since then. In Pennsylvania, USA, Colonel Drake coal-to-liquids (CTL) technology in the 1930s and
recognised the value of this product and his first 40s and more recently gas-to-liquids (GTL), we
oil well kicked off the petroleum industry in 1859. now have operations like Pearl in Qatar which
At this time, Lenoirs development of the internal demonstrate the refinery of the future. The
combustion engine paved the way for the modern refining industry will continue to take on
automobile industry. challenges and meet them through science and
From 1859 to 1900, there were many tech innovation.
nological innovations as auto inventors tapped We hope that this guide will give you an insight
the potential of the internal combustion engine, into a vital and fascinating side of our industry.
and petroleum pioneers improved methods of
producing, refining and delivery. Entrepreneurs Dr Pierce Riemer
such as John D. Rockefeller and Henry Flagler dis Director General, World Petroleum Council
8 WPC Guide
WPC Vision, Mission, Values and Principles
l Focused, so that our goals are clear and l Communication to increase awareness,
transparent of WPCs activities, through enhanced
l Understandable to all communication, both internally and
externally.
Key strategic areas l Global representation to attract and
l World Class Congress to deliver a retain worldwide involvement in WPC.
quality, premier world class oil and l Youth and gender engagement to
gas congress. increase the participation of young
l Inter-Congress activities to organise people and women in oil and gas issues,
forums for cooperation and other including the establishment of a
activities on specific topics; and to dedicated Youth Committee for the
organise regional events of relevance to development of active networking
WPC members and all stakeholders. opportunities with young people.
l Cooperation with other stakeholders l Legacy to create a central WPC legacy
to add value by cooperating with other fund to benefit communities and
organisations to seek synergies and individuals around the world based on
promote best practice. WPCs mission.
1991 13th WPC Buenos Aires 1951 3rd WPC The Hague
WPC overview
Congress from the candidate countries.
Every three years, the Council organises the
World Petroleum Congress. Known as the
Since 1933, the World Petroleum Olympics of the petroleum industry, it covers all
Council (WPC) has been the worlds aspects of oil and gas from technological
advances in conventional and unconventional
premier oil and gas forum and is the
upstream and downstream operations, the role of
only international organisation
natural gas and renewables, industry man
representing all aspects of the agement and its social, economic and environ
petroleum sector. mental impact.
In addition to industry leaders and experts,
outside stakeholders such as governments, other
industry sectors, NGOs and international insti
tutions also join the dialogue. To ensure the
The World Petroleum Council (WPC) was esta scientific and topical quality of the event, the WPC
blished in 1933 to promote the management of Council elects a Congress Programme Committee
the worlds petroleum resources for the benefit of whose members are responsible for delivering
all. It is a non-advocacy, non-political organisation the high-level content for its Congresses. Moscow
and has received accreditation as a non-gov will be the host of the 21st World Petroleum
ernmental organisation (NGO) from the UN. WPCs Congress in 2014 (www.21wpc.com).
prime function is to facilitate dialogue among WPC is also involved with a number of other
internal and external stakeholders on technical, meetings such as the WPC Youth Forum, the WPC-
social, environmental and management issues in UN Global Compact Best Practice Forum, joint
order to contribute towards finding solutions to WPC/OPEC workshops and other regional and
those issues. topical events on important industry issues.
Headquartered in London, WPC includes 65
member countries representing more than 95% Legacy
of global oil and gas production and consumption. As a not-for-profit organisation, WPC ensures
Membership is unique, as it includes both OPEC that any surpluses from its events are directed
and non-OPEC countries with high-level repre into educational or charitable activities, there-
sentation from National Oil Companies (NOCs) by leaving a legacy. WPC has set up a dedicated
and Independent Oil Companies (IOCs). Each WPC Legacy Fund to spread the benefits beyond
country has a national committee made up of the host countries and its members and alleviate
representatives of the oil and gas industry, the energy poverty through carefully selected
service sector, academia, research institutions and projects.
government departments. The concept of leaving a legacy in the host
The governing body of WPC is the Council with country started in 1994 with the 14th World
representation from all national committees. Its Petroleum Congress in Stavanger, Norway. After
global membership elects the President and an this Congress, the surplus funds were put towards
10 WPC Guide
WPC overview
the building of a state-of-the-art Petroleum Mus Committee to provide financial assistance to help
eum in Stavanger. needy young South Africans pursue qualifications
The 15th World Petroleum Congress in Beijing in petroleum studies.
adopted the issue of young people as part of its In 2008, with the 19th Congress in Madrid, the
theme: Technology and Globalisation Leading trend continued and the organisers selected a
the Petroleum Industry into the 21st Century. To number of projects and foundations to receive
support the education and future involvement of the surplus from the event for charitable and edu
young people in the petroleum industry, the cational programmes in Spain and around the
Chinese National Committee donated all com globe. The 19th Congress was the first one to off
puter and video equipment used for the Congress set all its carbon emissions and receive a certi
to its Petroleum University. fication as a sustainable event.
Profits from the 16th Congress in Calgary The most recent Congress in Qatar also offset
endowed a fund that gives scholarships to post- all of its carbon emissions and has chosen a pro
secondary students in several petroleum-related ject to educate and support young people as
fields. The Canadian Government Millennium recipients for the 21st WPC Legacy Programme.
Scholarship Foundation matched the amount
dollar-for-dollar, creating an endowment which Youth outreach
supported more than 2,000 students until its Youth is a critical factor in the sustainability of the
conclusion in 2010. oil and gas industry. Involving young people in
The 17th World Petroleum Congress was the the design of future energy solutions is a major
first to integrate the concept of sustainability issue for WPCs 65 member countries. WPC recog
throughout its event, taking responsibility for all nises their significance to the future of the petro
waste it generated. The congress and the Rio Oil & leum industry and the importance of giving the
Gas Expo 2002 generated 16 tonnes of recyclable young generation scope to develop their own
waste. All proceeds of the recycling activities were ideas, talents and competencies to create viable
passed on to a residents cooperative of 6,000 solutions for the future of our world.
members in the port area of Rio de Janeiro. An As part of its outreach to the next generation,
army of 250 volunteers collected 36 tonnes of WPC created its Youth Committee in 2006 to
rubbish in 10 days in a community effort to clean provide a channel through which young people
up the Corcovado area before the Congress, have a direct involvement and say in the strategy
donating all proceeds to the rubbish collectors, and activities of the organisation. It aims to create
some of the poorest inhabitants of Rio. The and nurture a collaborative, global forum for
Congresss surplus funds were used to set up the young people to be heard, to champion new
WPC Educational Fund in Brazil, which was ideas within the petroleum industry, to promote a
increased in 2005 with tax initiatives by the realistic image of the petroleum industry, its
Brazilian government. challenges and opportunities, and to bridge the
The 18th World Petroleum Congress also chose generation gap through mentorship networks.
a sustainability focus for the first-ever Congress to In 2011, WPC launched a pilot Mentorship
be held in Africa: Shaping the Energy Future: Par Programme to provide a bridge between interna
tners in Sustainable Solutions. Education was the tional experts and the next generation of our ind
focus of the 18th World Petroleum Congress ustry. This programme is now in its second suc
Legacy Trust, set up by the South African National cessful cycle and has already created 150 matches.
Heavy Refinery
Coal Naphtha LPG Natural Gas
Residue Off-gases
CO Shift CO2
Conversion Removal
PSA
H2 H2 CO Synthesis Gas
1215_e
www.engineering-solutions.airliquide.com
WPC over view
14 WPC Guide
WPC overview
Petrochemicals
his first oil refinery and created the Standard Oil
Company with his brother, William and several
historical
associates.
1865 First successful oil pipeline built from
timeline
Titusville to a railway station five miles away.
Trains then transported oil to refineries on the
Atlantic coast.
1878 John D. Rockefeller controls 90% of the oil
refineries in the United States.
1879 The first synthetic rubber was created.
1888 The study of liquid crystals begins in
Austria when scientist Friedrich Reinitzer found
1835 Polyvinyl chloride (PVC) discovered by that a material known as cholesteryl benzoate
French chemist and physicist Henri Victor had two different melting points. However, it has
Regnault after leaving a sample of vinyl chloride only been in the last few decades that liquid
gas in the sun. The sample hardened into a white crystal use has come into its own with appli
solid but it was not patented until 77 years later.
1839 Polystyrene discovered by accident by
German pharmacist Eduard Simon when he tried
to distil a natural resin called storax. He obtained
an oily substance he called styrol and this
thickened, probably due to oxidation. This
substance wasnt recognised as being made up
of many styrene molecules until 1920.
1851 Carbon oil for lamps first produced.
1856 Synthetic dyes first discovered by 18-year-
old student William Perkin at the Royal College of
Chemistry in London when trying to develop an
artificial form of quinine from coal tar. Instead of
quinine, he was left with a purple powder which
was used as an affordable fabric dye. Before this,
fabric was dyed purple using shells of a
Mediterranean mollusc and was very expensive.
This discovery, making purple fabrics more
widely available, boosted the petrochemical
industry by demonstrating the usefulness and
Edwin Drake (right) in 1866, pictured in front of the well where he
profitability of petrochemical products. first struck oil in 1859, heralding the birth of the global oil industry.
16 WPC Guide
Petrochemicals historical timeline
cations including mobile phones, electronic toys 1920 German chemist Hermann Staudinger
and computer screens. recognised that polystyrene (see 1839) is made
1900 Texas, California and Oklahoma all up of many styrene molecules joined together in
producing oil. Annual US production at a chain. (see 1929)
64 million barrels. 1925 US oil production exceeds 1 billion barrels.
1909 The discovery 1925 Synthetic fuels pioneered with the
of Bakelite is ann development of the Fischer-Tropsch process by
ounced. Considered German researchers Franz Fischer and Hans
the worlds first plas Tropsch. Coal, biomass or natural gas could now
tic, it was invented be converted into synthetic fuels.
by Belgian Leo 1926 IG Farben acquires patent rights to the
Hendrik Baekeland Bergius hydrogenation process (see 1913).
when he tried to Carl Bosch had already been working on
make a substitute high-pressure hydrogenation processes for
Bakelite, the original plastic, found
for shellac. It helped many uses from radios to cameras IG Farben.
transform the radio and beyond, and examples are still 1926 American inventor Waldo Semon
much sought-after today.
industry in the 1930s. plasticises PVC by blending it with different
1908 First major discovery of oil in Iran. additives to create a more flexible material.
1912 German chemist Fritz Klatte develops a 1927 First major discovery of oil in Iraq.
new process for producing PVC using sunlight. 1928 Portable offshore drilling on a submersible
He was the first to patent PVC but had difficulties barge pioneered by Texan merchant marine
processing the sometimes brittle polymer. captain Louis Giliasso.
1913 High-pressure hydrogenation process 1929 Scientists at chemical company BASF
for transforming heavy oils into lighter oils develop a way to commercially manufacture
developed by German organic chemist polystyrene based on Staudingers findings (see
Friedrich Bergius. 1920) and a year later, large-scale polystyrene
1913 Thermal cracking patented as a method of production started.
oil refining by chemical engineers, William Burton 1930s New process of alkanisation and fine-
and Robert Humphreys, of Standard Oil. powder fluid-bed production increases the
1914-1918 During World War I, Germany started octane rating of aviation gasoline.
large-scale production of synthetic rubber and 1931 Neoprene invented by DuPont scientists
further investigations into its production after attending a lecture by Belgian priest and
continued after the war. chemistry professor Dr Julius Nieuwland.
1920s-1940s A busy era for petrochemicals with 1931 German organic chemist Friedrich Bergius
nylon, acrylics and polyester materials dev and Carl Bosch share a Nobel Prize for their
eloped, as well as new compounds derived from work in high-pressure hydrogenation. (See 1913
oil-refining by-products entering the market. and 1926).
Other successful materials included polystyrene, 1933 German scientists invent Buna-S, a syn
polyvinyl chloride (PVC) and polyethylene. Nylon, thetic rubber made from styrene and butadiene.
acrylics and polyster developed for a wide range Mainly used for car tyres.
of uses, such as clothing, sports gear, industrial 1933-1935 Plexiglass is discovered by accident
equipment, parachutes and plexiglass. by German researcher Otto Rhm. He developed
18 WPC Guide
Petrochemicals historical timeline
V
By the time this photo
graph of an oil refinery and
storage tanks was taken in
1956, Saudi Arabia was
well on the way to capitali
sing on the worlds largest
oil reserves.
and develops Dacron, a second polyester fibre. because of limited oil imports with the trade
1946 It is believed that the first synthetic sanctions under the apartheid regime.
detergents were developed by the Germans in 1960s Work conducted on water conservation
World War I because of a shortage of fats for for soils in the US led to the development of a
making traditional soaps. In 1946, there was a resin in the form of an acrylic gel which was then
breakthrough in detergent development when developed into super-absorbent fibres.
the first man-made detergent, containing a Commercial production began in Japan in 1978
surfactant/builder combination, was introduced and in 1980, super-absorbent polymer was used
in the US. in baby nappy production.
1947 German-born American chemical engineer 1960s The first synthetic oils are developed with
Vladimir Haensel invents platforming, a process Mobil Oil and AMSOIL leading the field. The
for producing cleaner burning high-octane fuels. synthetics contain additives such as polyalpha
The process uses a platinum catalyst to speed up olefins derived from olefins. Introduced commer
chemical reactions. cially in the 1970s to the automotive market.
1949 BASF chemist Fritz Stastny starts work on a 1963 Australian chemists start work on conduc
process to turn polystyrene into a foam form. In ting polymers which are now used as anti-static
1951, he succeeded and turned STYRON, a substances for computer screen shields, windows
substance that is 98% air, into one of the worlds that can exclude sunlight and photographic film.
most successful plastics. 1965 Kevlar is invented at DuPont as a result of
Early 1950s Polypropylene discoveries were made research involving high performance chemical
in different places because of improved knowledge- compounds. It is used in bullet-proof vests, under
sharing but this led to nine different teams claim water cables, space vehicles, brake linings,
ing to have invented it. Patent litigation was building materials, parachutes, boats and skis.
finally resolved in 1989. American chemists Paul 2000 The Nobel Prize for Chemistry is awarded
Hogan and Robert Banks, working for Phillips to three Australian researchers, Alan J. Heeger,
Petroleum, are generally credited as the inventors. Alan G. MacDiarmid and Hideki Shirakawa,
1955 South Africa starts making its own for their discovery and development of conduc
synthetic fuels using the Fischer-Tropsch method ting polymers.
The Sauber Mercedes C 291: The use of carbon-fibre reinforced plastic allowed the drivers cell, safety bar and roof to be made in one
piece for the first time.
20 WPC Guide
Introduction to extraction, refining and processing
tions; chemically rearranging low-value configur One, fuel oil, is used for heating or for diesel fuel in
ations of hydrocarbon molecules into high-value the automotive industry. Another one is naphtha,
combinations to produce a variety of end-pro used in gasoline and also as the primary source
ducts; and treating these products to meet en from which petrochemicals are derived.
vironmental and other specifications and stan In addition to the various fractions, the dregs
dards by removing impurities, such as sulphur. still remain. But these dregs are very useful be
cause they are heavy residues that contain carbon
Refining oil for feedstock and hydrogen which is used to produce more
There are two types of oil, sweet and sour. Sour complex compounds and, ultimately, to create
crude has lots of sulphur (inorganic) in it so useful products. These are generally processed
requires an additional step to make it ready for using high temperatures and low pressures.
the refining process, which in turn makes it more At this stage of the refining process, certain
expensive to refine. Sweet crude is the industry products, such as jet fuel, are pretty much ready
standard and is what is quoted when you hear for use but most products are not yet finished and
things like Brent crude, West Texas Intermediate, further heating, pressure and chemical catalysts
and so on in reports on the markets. are required to make them into desirable pro
Refining oils is very similar to making whiskey. ducts. Naphtha and by-products of the oil refining
With whiskey, you mix up grains and yeast and let process, such as ethane and propane, are feed
it ferment until the yeast converts sugars in the stocks which are processed using an operation
beer or mash into alcohol and carbon dioxide. known as cracking, which takes place, logically, in
Then it is put in a kettle that has a lid and a means a cracker. Cracking is the process of breaking down
for the vapours to escape, and heat is then app heavy oil molecules into lighter, more useful frac
lied. The process with oil is much the same, with tions. When a catalyst is used, the process is known
heat being applied, usually around 350C, and the as catalytic cracking.
vapourised petroleum being pumped into a frac After cracking, new products are obtained. These
tionating tower. form the building blocks of the petrochemical
In whiskey, the alcohol is the second most vola industry olefins (mainly ethylene, propylene and
tile chemical in the mix, methyl is first and that butadiene) and aromatics, named for their dis
why distillers throw away the first gallon or so. In tinctive perfumed scent (mainly benzene, toluene
the case of oil, it rises up the tower, cools down and xylenes). These new products are then pro
and its components condense back into several cessed in petrochemical plants to become more
distinct liquids, collected in a series of trays. Lighter familiar products. The steps required for transfor
liquids, such as kerosene and naphtha (commonly ming olefins and aromatics into useful, more
known as Zippo lighter fluid), collect near the top specialised, products varies, depending on what
of the tower, while the heavier ones, such as lubri the final product is going to be.
cants and waxes, fall to the bottom.
The role of a refinery is to produce physical and Refining oil from unconventional sources
chemical changes in crude oil and natural gas. This The refining sector has had to adapt to new
is done via an arrangement of specialised manu challenges as feedstocks diversify to include oil
facturing processes. One of these processes is from unconventional sources, such as oil sands
distillation the separation of heavy crude oil into and shale. These feedstocks require different ex
lighter groups (called fractions) of hydrocarbons. traction and refining techniques that are often
22 WPC Guide
FURTHERMORE
INTEGRATED
At Total, we believe that refining and petrochemical operations are a natural fit.
Grouped in the Refining & Chemicals business segment, they make Total Europes No. 1
refiner and No. 2 petrochemical producer one of the worlds top ten companies in
terms of end-to-end integration along the oil and gas value chain.
We have a clearly defined strategy to address both mature and fast-growing markets.
We are adjusting our production base to market trends in Europe and the United
States, where we have a solidly established presence, focusing on the largest integrated
refining and petrochemical platforms to position them among the best in the industry. And
at the same time, we are stepping up our expansion in markets in Asia and the Middle
East, by developing world-class platforms aligned with the aspirations of our partners
in Qatar, Saudi Arabia, South Korea and China.
We are investing in technology to differentiate ourselves through optimized processes
and innovative products that meet our customers needs.
Our priority emphasis on safety is the cornerstone of our operational excellence. This is
the key to maintaining our stakeholders long-term trust.
www.total.com
Loading a truck with oil sand in Alberta, Canada. The extraction of unconventional oil and gas remains both difficult and controversial.
more complicated than the processes used for cess separates the four different parts. Hot water
converting conventional crude oil. is added to the sand to form a slurry which is piped
to an extraction plant for agitation. The combina
Extraction and refining from oil sands tion of hot water and agitation released the bitu
Oil sands are a combination of clay, sand, water men and causes tiny air bubbles to attach to bitu
and bitumen. Around two tonnes of tar sands are men droplets. These droplets float to the top of the
needed to produce one barrel of oil and many of separation vessel and are skimmed off. Additional
the techniques use vast quantities of water and processing removes residual solids and water.
energy. Oil sands are also known as tar sands, as Bitumen then requires further upgrading before
the bitumen was used for roofing and paving tar, it can be refined into synthetic crude oil, which
but this particular use for bitumen has been can then be used as the basis of petrochemical
largely superseded by more modern materials. products. It is a very viscous substance so it needs
This oil is retrieved from these sands by strip to be diluted with lighter hydrocarbons so it can
mining, open pit techniques, steam injection, sol be transported by pipeline for refining.
vent injection or underground heating with addi The bitumen can then be used as a feedstock
tional upgrading. The oil that is retrieved is similar for useful petrochemicals such as ethylene, propy
to oil pumped from conventional oil wells but a lene, benzene and paraxylene. Off-gas, a by-
separation process is required to remove the bitu product of bitumen processing that is rich in
men from the clay, sand and water. A hot water pro vapours that can be condensed into ethane,
24 WPC Guide
Introduction to extraction, refining and processing
propane and butane is currently being used as a tion process in which liquid oil is simply pumped
fuel, but it is expected that in the future, ethane out of the ground.
and other gas liquids, extracted from off-gas, will Royal Dutch Shell has developed In Situ Conver
not only supplement conventional gas supplies sion Process (ICP) to simplify the refining process
but also be used to meet ethane demand. for shale oil. With ICP, the rocks are not excavated
Upgraded bitumen can be used as a feedstock in from the site. Instead, holes are drilled into the
the form of intermediary refined petroleum shale and heaters are lowered into the earth. Over
products, such as naphtha, aromatics and vacuum the course of at least two years, the shale is slowly
gas oil. heated and the kero-gen (the fossilised material
Both light hydrocarbons from off-gas and inter in rock that yields oil when heated) seeps out. The
mediary products from oil sands are not being kerogen is then collected in situ and pumped to
exploited to their full potential as a source of petro the surface for further refining.
chemical feedstock because of issues surrounding
environmental concerns and developing inte Refining natural gas for feedstock
grated approaches to reach economies of scale. Natural gas plays an important role in todays
While the Canadian province of Alberta is a world global petrochemical industry. It is a common build
leader in petrochemical refining from oil sands, ing block for methanol which has many industrial
market conditions and technology still need to applications. Natural gas is converted to synthesis
evolve further for bitumen and off-gas to offer a gas (syngas), which is a mixture of hydrogen and
secure, stable-priced feedstock for the sector. carbon oxides created through a process called
steam reforming. Ethane, an alternative to crude
Extraction and refining of shale oil oil-derived ethylene, is a by-product of natural
Like oil extracted from oil sands, shale oil has not gas and the US shale gas boom in particular is
been processed in vast quantities for petro capitalising on the abundant supply.
chemical feedstock. The process for extracting Steam reforming occurs by exposing natural
shale oil is more complicated than extracting gas to a catalyst that causes oxidisation when it is
liquid crude oil from the ground. Getting crude oil
from shale rock remains difficult and controversial,
as is also the case with shale gas extraction.
Oil shale is mined using either underground- or
surface-mining methods, After excavation, the
mined rock undergoes a retorting process this is
the exposure of mined rock to pyrolysis, the appli
cation of extreme heat without the presence of
oxygen to produce a chemical change. Between
345C-370C, the fossil fuel trapped within starts
to liquefy and separate from the rock. The emer
ging oil-like substance can be further refined to a
synthetic crude oil.
When it is mined and retorted above ground,
the process is called surface retorting. This process
Measuring the viscosity of a shale oil sample in Enefits oil
adds two extra steps to the conventional extrac laboratory in Estonia.
brought into contact with steam. This process is monia. The process of ammonia production for
similar to the Fischer-Tropsch process. Once this fertiliser use is similar to the gas-to-liquid process,
process results in synthesis gas, it can be used to but different catalysts, pressure and temperature
produce methanol (CH3OH), also known as methyl are required.
alcohol, which is then used to produce useful sub To produce ammonia, the natural gas is first
stances such as formaldehyde, acetic acid, a fuel cleaned of sulphur and mixed with heated water
source in fuel cells, insulation materials, varnishes, vapour. It is then supplied to a reactor where it
paints, glues, and methyl tertiary butyl ether passes through catalyst beds. This is the primary
(MTBE), which is used as an additive for gasoline reforming stage, also known as gas-vapour con
that burns more cleanly. It can also be used within version. A gas mixture made up of hydrogen, meth
the energy industry as an agent to prevent ane, carbon dioxide (CO2), and carbon monoxide
hydrate plugs forming in oil and gas pipelines at (CO) emerges from the reactor. The mixture is then
low temperatures. sent to a secondary reforming gas-vapour conver
Mineral fertilisers are also produced from nat sion stage where it is mixed with oxygen, vapour
ural gas feedstocks. This involves a series of sev and nitrogen. For the next stage, CO and CO2 are
eral chemical conversions. The first stage is am removed from the mixture. Finally, a mixture of
26 WPC Guide
Introduction to extraction, refining and processing
hydrogen and nitrogen gases are added at high The coal chemical sector can be divided into
temperature and high pressure in the presence of traditional coal chemical and new coal chemical
a catalyst to form ammonia. This final stage is sub-sectors. Traditional coal chemical production
known as the ammonia synthesis process. mainly includes synthetic ammonia, coke and
calcium carbide, while new coal chemical pro
Refining coal for feedstock duction includes petroleum substitutes such as
Coal is made up primarily of two main elements, ethylene glycol, oil and olefins.
hydrogen and carbon. These elements have been Coal is usually refined for the petrochemical
important to the energy sector for decades and sector by either gasification or liquefaction.
they are also the building blocks for chemicals,
feedstocks and synthetic materials, all of which are Coal gasification
in high demand. While much of this growing Coal gasification is used to produce chemicals
demand has been met by oil and gas refining, coal and feedstocks as well as fuels and electricity. It is
has also been exploited as a source of petro more efficient and less expensive than liquefac
chemical feedstock. Refining coal can be highly tion. One of the guiding principles behind dev
profitable with many high-value chemicals being eloping fully integrated gasification sites where
produced in this sector. coal could be turned into electricity and chemicals
Over the years, governments and private com is that energy production costs, air emissions and
panies in multiple countries have devoted signi solid waste production could all be reduced. The
ficant resources towards researching and dev gasification process can take place in-situ within
eloping coal refining. While coal was first used in natural coal seams or in coal refineries.
blast furnaces in Britain in the early 17th Century The US Department of Energy has cited num
and first successfully carbonised for commercial erous advantages to processing coal by gasifica
use in Britain in 1709, the major breakthrough for tion. These include product flexibility, with a num
coals use in the petrochemical sector came in ber of different commodities produced by the
1913. This is when Friedrich Bergius, a German resulting synthesis gas (syngas), especially meth
chemist, discovered that if coal is treated with anol and ammonia. Gasification produces lower
hydrogen at high temperature and pressure in the emissions, is more efficient than other forms of
presence of a catalyst, an oil similar to crude coal refining and gasification plants can cope with
petroleum is produced. refining different types of coal.
In the 1930s and 40s, research into using the In this process, coal is gasified to produce a low-
Fischer-Tropsch process for coal refining led to or medium-Btu fuel gas. During gasification, ele
coal liquids being used for transportation fuel for mental sulphur and carbon dioxide can be re
the German army in World War II. Sasols facilities covered, steam can be produced and the slag left
in South Africa started making liquid and gaseous over from the gasification process can be used for
fuels from coal thanks to this early work on the road construction or as a building material. The
Fischer-Tropsch process. Oil embargoes and coal gas, a type of syngas, can also be used to pro
natural gas shortages in the early 1970s precipi duce industrial chemicals, such as ammonia, as
tated more recent efforts to refine coal. China is well as petrochemical feedstocks.
now a world leader in coal refining with 34 coal- The coal is dried before it is devolatilised. Devo
to-chemical facilities in operation and more latilisation is an important part of the process in
planned for the future. which high temperatures are used in order to extract
Shenhuas direct coal liquefaction plant, the first of its kind in the world, has been in operation since 2008.
tar, primary gaseous volatiles, such as carbon mon drogen is produced by further reaction with steam.
oxide and carbon dioxide, and residual char. The In general, existing methods for coal gasifica
tar also yields gaseous volatiles, as well as residual tion use the same chemical process. Low-grade
soot. After devolatilisation, volatile combustion, coals, which are high in water, can be gasified
char combustion and gasification can take place. using technology where no steam is needed for
Coal is blown through with oxygen and steam the reaction and carbon and oxygen are the only
as well as being heated and, in some instances, reactants. Furthermore, some gasification methods
pressurised. If the heat comes from an external do not require high pressure and use pulverised
source, it is called allothermal and if it is heated coal as fuel.
with exothermal chemical reactions which take The technologies for supplying the blowing
place inside the gasifier, it is called autothermal. part of the process also vary. With direct blowing,
During the reactions, oxygen and water molecules the oxidiser passes through coke and ashes to the
oxidise the coal to produce a gaseous mixture of reaction zone where it interacts with coal. Hot gas
carbon monoxide, carbon dioxide, water vapour is produced which passes fresh fuel and heats it
and molecular hydrogen. while absorbing tars and phenols. Significant re
If a refiner wants to produce alkanes, coal gas is fining is then required before being used in the
routed to a Fischer-Tropsch reactor, and if hydro Fischer-Tropsch reaction. This creates highly toxic
gen is the desired final product, the coal gas under products which require special treatment before
goes a water gas shift reaction, whereby more hy they can be used.
28 WPC Guide
Introduction to extraction, refining and processing
Reversed blowing, a newer form of technology, in the coal reacts with oxygen and water to pro
has the gas produced in the reaction zone pass duce carbon monoxide, carbon dioxide, hydrogen
through coke and ashes and the carbon dioxide and methane. The CO2 is waste and other gases
and water is chemically restored to carbon mono can be burnt or processed further.
xide and hydrogen. There is no chemical interaction The second stage for liquefaction is the Fischer-
between the coal and the oxidiser before it reaches Tropsch process. Once the coal gas is filtered and
the reaction zone and no toxic by-products are processed, the carbon monoxide and hydrogen
present in the gas as these are disabled in the ratio is adjusted by the addition of water or car
reaction zone. As well as being more ecologically bon dioxide. This hot gas is passed over a catalyst,
friendly, reversed blowing produces two useful causing the carbon monoxide and hydrogen to
products gas and middle-temperature coke. The condense into long hydrocarbon chains and water.
gas can be used as fuel and the coke can be used These chains can be used as an alternative to oil
as a technological fuel in metallurgy, a chemical products such as heating oil, kerosene and gaso
absorbent or in products such as fuel briquettes. line. The water, meanwhile, can be recycled and
used as steam for the liquefaction process.
Coal liquefaction Aside from this two-stage process, coal can also
Liquids that have been obtained via the coal be liquefied via direct coal liquefaction (DCL). This
liquefaction process can potentially be used as can take place as a one- or two-stage process. In
fuels or feedstocks for a wide range of petro the 1960s, single-stage DCL techniques were pio
chemical products. It is generally more expensive neered but these first-generation processes have
than refining crude oil but it can be cost-effective now been largely superseded or abandoned. The
if crude oil is in limited supply, unavailable or the single-stage processes attempted to convert coal
supply has been disrupted. This process was first to liquids with a single reaction stage, usually
used in the 19th Century to provide fuel for indoor involving an integrated hydrotreating reactor.
lighting. Coal liquefaction has a long history in
countries such as Germany and South Africa where
there is not a secure supply of crude oil.
Pioneers in coal liquefaction technology dev
elopment included American companies such as
HRI, Exxon, Gulf Oil, Conoco, Chevron, Amoco,
Lummus, Kerr-McGee and Consol; Germanys
Ruhrkohle; the UKs British Coal Corporation; and
Japans NEDO and Mitsubishi Heavy Industries.
Coal liquefaction can be a more efficient pro
cess if it is combined with electricity production
as this utilises some of the heat that would other
wise be wasted.
There are two main stages to the coal lique
faction process when indirect coal liquefaction
(ICL) is used coal gasification and gas-to-liquid
(GTL). During gasification, air and steam are
Ongoing research and development efforts are vital to the future
added to raw coal and this is heated. The carbon of the petrochemicals industry.
High-tech challenges
Simply continuing to churn out products we
already know how to make isnt an option for com
panies to remain competitive and profitable. Com
Finished motor
gasoline (45%) panies need to create new products and find cheaper
Distillate fuels ways to do things, which is why research and dev
(23%)
elopment is important to petrochemical producers.
Kerosene-type
jet fuel (8%) The chemical and manufacturing processes in
Petroleum coke this part of the downstream business require a
(5%)
Still gas (4%)
huge pool of expertise and a lot of money to
Residual fuel ensure engineers and scientists continue to make
oil (4%)
breakthroughs. The drive to produce more with
Asphalt and
road oil (3%) less, and more cheaply, provides researchers with
Petrochemical access to the sort of facilities rarely found beyond
feedstocks (2%)
Liquefied refinery
the commercial sector.
gases (2%) Keeping costs down is vital, because the facilities are
Propane (2%)
expensive to build, maintain and run. Refiners and petro
Other (2%)
chemical producers must also contend with ongoing
volatility in the prices of commodities, with forward-
planning essential for years when margins are low.
Environmental issues are a vital part of research
In DCL, the coal is put in direct contact with the in the sector, so firms have to focus on how the ind
catalyst at very high temperatures (850F/455C) in ustry can meet increasingly stringent standards
the presence of additional hydrogen. This reaction for cleaner refining and manufacturing processes,
takes place in the presence of a solvent. The solvent and high health and environmental standards re
facilitates coal extraction. The solubilised products, quired of the final products. These high standards
which consist mainly of aromatic compounds, may are often imposed at a self-regulatory level by the
then be upgraded by conventional petroleum re companies themselves and by governments.
fining techniques, such as hydrotreating In the US, for example, which has more refining
DCL processes are more efficient than ICL but a capacity than any other nation on Earth, the sec
higher quality coal is required for best results. tor is, in the words of the US Department of Energy,
However, since the late 1980s, very few DCl pro one of the most heavily regulated industries. If
grammes were continued with the exception of refineries fail to comply, they cannot operate.
HTI, now called Headwater Inc, who developed a For alternatives to fossil fuel-based petro
two-stage catalytic liquefaction process that was chemicals, see page 102.
funded by the US Department of Energy. This tech
nology was then licensed to Chinas Shenhua William Srite is a freelance journalist.
30 WPC Guide
Petrochemical feedstocks
32 WPC Guide
Petrochemical feedstocks
a viable alternative for areas with few fossil fuel The petrochemical sectors of Saudi Arabia, Iran
resources but space for large-scale agriculture. and Qatar use ethane as the main petrochemical
feedstock, but securing new ethane supplies has
Feedstock and geography become difficult because of high demand from
Feedstock supplies vary between different regions existing petrochemical plants and the energy
and supply trends can change, especially when new. sector. As such, planned petrochemical plants in
Ethane feedstock supply has decreased in the the Middle East are based on naphtha feedstock.
Middle East and Canada, for example. New oil and Natural gas production has increased in Saudi
gas discoveries have impacted on the petro Arabia, Iran and Qatar but its not enough to satis
chemical industries of the US, Brazil and Canada. fy requirements. Despite the increases in natural
In the case of the US and Brazil, both countries gas production in Saudi Arabia and Iran, ethylene
have benefited with the respective discoveries of capacity has increased even more. Qatars ethane
shale gas and pre-salt reserves. production has been restricted because of a mor
In Canada, ethane production is down because atorium on its North Dome gas field.
of reduced natural gas supply from the Western The emergence of Chinas shale gas and coal
Canadian Sedimentary Basin. The Canadian petro industries has also changed the face of the worlds
chemistry sector is now focusing on the discovery feedstock supplies. This ongoing development in
of bituminous oil, which now accounts for more China will serve to bolster the countrys growing
than 50% of the countrys crude oil production, economy. For more detailed information on the
for meeting future feedstock needs. worlds petrochemical markets, turn to page 82.
FPSO Cidade de So Paulo leaving port bound for the Sapinho field, offshore Brazil. Pre-salt discoveries, though challenging to extract, will
have a major impact on the countrys oil and gas industries.
Gas-to-liquids and South Africa had large coal reserves but had
to import oil. The challenge of subsequent R&D
was to make synthetic fuel production commer
By Mark Blacklock cially viable, and a number of proprietary tech
nologies using F-T synthesis have been developed.
The gas-to-liquids (GTL) process The basic process (see box) sees methane con
offers a means of extracting greater verted to carbon monoxide and hydrogen (syngas)
value from an important resource. for processing in a reactor to produce paraffinic
waxes which can then be refined. The various
proprietary technologies use different combi
nations of catalysts, reactor types and process
conditions. The production phase of GTL uses
more energy and thus entails higher emissions of
Todays GTL business draws on the pioneering greenhouse gases compared to a standard refi
work on synthetic fuels carried out by Franz nery, but the end products are cleaner.
Fischer and Hans Tropsch in Germany in the 1920s. The main product of a typical GTL plant is auto
They developed a process to turn gasified coal motive diesel with virtually no sulphur or aro
into liquids, and gave their names to the generic matics and a high cetane number. High-quality
term Fischer-Tropsch (F-T) synthesis. However, naphtha for petrochemical feedstock, kerosene
Germanys synthetic fuel production during World for blending into jet fuel, normal paraffins and
War II (which reached a peak of 50% of consump base oils for top-tier lubricants are also produced.
tion in 1943) was largely based on hydrogenation
with F-T production accounting for about 8% at Monetising gas
the peak. It was South Africa which took the lead GTL is a means of monetising gas resources that
in developing large-scale F-T liquefaction plants are abundant, undervalued or wasted by flaring.
A barrel of oil has roughly six times the energy
of a million Btu (mmBtu) of gas. Oil has traditionally
traded at a premium to gas given the ease of refin
ing it to produce a range of products, but this pre
mium is increasing in some markets. At the time
of the 19th World Petroleum Congress in 2008,
for example, the oil price of $147/b and the US
Henry Hub price for gas of $13/mmBtu meant the
oil premium was about 100%. With the Henry Hub
price now around $4/mmBtu the US oil premium
is 370%.
Professor Franz Fischer (l e f t ) and Dr Hans Tropsch carried out
It is the flood of unconventional gas which has
pioneering work on synthetic fuels. driven US prices down and is now driving interest
36 WPC Guide
Gas-to-liquids
in developing GTL plants. Sasol is moving ahead the Escravos GTL plant being built by Chevron
with the front-end engineering and design (FEED) and the Nigerian National Petroleum Company
stage of Westlake GTL in Louisiana and is also will help the country eliminate flaring.
looking at a GTL plant in western Canada. Both Brazil also wants to avoid flaring associated gas.
would use shale gas as a feedstock. Other com For its offshore oil fields Petrobras is evaluating a
panies are considering projects. project to include a small GTL plant on floating,
For countries with abundant conventional gas production, storage and offloading (FPSO) vessels.
resources, GTL is a way of providing high-quality This would produce a synthetic crude (syncrude)
products to the domestic market as well as extrac which would then be shipped with the main
ting greater value from exports. Qatar Airways, for crude production to be refined elsewhere.
example, plans to fuel its aircraft with a 50:50
blend of locally-produced GTL kerosene and con GTL plants around the world
ventional jet fuel. The resulting GTL jet fuel is not The first large-scale plants using gas as a feed
only cleaner but has a higher concentration of stock were commissioned in 1992 by Mossgas
energy and weighs less than conventional jet fuel. (now part of Petro SA) in Mossel Bay, South Africa
Flaring gas associated with oil production is (using Sasols advanced synthol process), and in
polluting and wasteful. Nigeria is one of the mem 1993 by a Shell-led consortium in Bintulu,
bers of the World Bank-led Global Gas Flaring Malaysia (using Shell middle distillate synthesis
Reduction (GGFR) public-private partnership, and SMDS). The Malaysian plant suffered an explosion
After raw natural gas has been treated, there are l Fluidised bed processes, in which syngas
three main operations in a gas-to-liquids plant. is passed rapidly at high temperatures through
Firstly, synthesis gas (syngas) is produced. This is a catalyst bed, such as the Sasol advanced
typically a combination of hydrogen and carbon synthol process. This uses an iron-based
monoxide in a ratio of 2:1, and four alternative catalyst. It has been superseded by SPD in the
methods are used: international market.
l Steam reforming of the feedstock in the l Slurry processes, in which syngas is reacted in a
presence of a catalyst. slurry with a catalyst and molten wax
l Partial oxidation oxygen is separated from (produced in the reactor), such as the Sasol
nitrogen in a cryogenic air separation unit slurry phase distillate (SPD) low-temperature
(ASU) and burned with natural gas at high process. This uses a cobalt-based catalyst.
temperatures and pressures. Alternatively, air l Fixed bed processes, where the syngas
may be used instead of pure oxygen. flows through tubes containing catalyst, such
l Autothermal reforming, where partial oxidation as Shell middle distillate synthesis (SMDS). This
is combined with steam reforming. uses a cobalt-based catalyst.
l Gas-heated reforming of natural gas with The synthetic crude is then converted
steam and oxygen. into marketable petroleum products using
Then Fischer-Tropsch synthesis converts syngas conventional petrochemical upgrading processes,
into paraffinic hydrocarbons, a waxy synthetic depending on the final slate of products required
crude. There are three principal types of process: by the plant operator.
Petro SAs plant in Mossel Bay was the first to start volume GTL The Oryx GTL plant in Qatar is expanding capacity.
production.
in its air separation unit in December 1997 and Meanwhile, in Nigeria, the problems of build
was closed until May 2000, but this was caused ing Escravos GTL in the Niger Delta caused long
by an accumulation of air-borne contaminants delays and cost over-runs. The plant was originally
from forest fires and was not related to the expected to cost $1.7 billion and be in service by
GTL technology. 2008. The cost is now $8.4 billion and it is due to
Oryx in Ras Laffan, Qatar was the next GTL plant start operations in late 2013. This is around six
and uses the slurry phase distillate (SPD) process times the cost of the similarly-sized Oryx plant
developed by Sasol at a test plant in Sasolburg. (which was built under a fixed-price contract
Oryx shipped its first product in April 2007 but a signed before construction costs in the petroleum
higher than design level of fine material in the industry escalated) but it will still be profitable at
paraffinic wax initially constrained output, and it current oil prices. Escravos will use SPD.
took several years to resolve the problems and However, the largest GTL plant, Pearl in Ras
achieve full output. Oryx is now working on Laffan, Qatar, was built on time and budget. The
expanding capacity through debottlenecking. first product was shipped in June 2011 and full
38 WPC Guide
Gas-to-liquids
HH Sheikh Hamad bin Khalifa Al-Thani, Emir of Qatar (second right) inaugurated Pearl GTL in a ceremony on November 22, 2011,
accompanied by HE Abdullah bin Hamad Al-Attiyah, Deputy Prime Minister (left), Peter Voser, CEO of Shell (second left) and HE
Mohammed bin Saleh Al-Sada, Minister of Industry & Energy (far right).
output was achieved in mid-2012. Pearl is an inte SMDS and SPD are the two principal proprie
grated project and its $19 billion cost covered the tary F-T technologies in commercial operation;
upstream as well as the downstream develop others are on the verge of commercialisation.
ment. The project produces 120,000 b/d of up One is GTL.F1, a low-temperature process using
stream products (condensate, LPG and ethane), a cobalt-based catalyst in a slurry bubble column
while the GTL plant has two 70,000 b/d trains and reactor. This was developed by Petro SA, Lurgi and
uses SMDS with improved catalysts based on Statoil in a 1,000 b/d semi-commercial unit (SCU)
experience from the Bintulu plant. at Mossel Bay. Statoil has since withdrawn and the
two remaining partners are looking at opportu
GTL projects nities for GTL.F1 in North America.
Looking ahead, a GTL plant using SPD in Another has been developed by CompactGTL
Uzbekistan is at the FEED stage, while the Sasol and is the technology being used by the Petrobras
projects in Canada and the USA would also use project in Brazil. It is for small, modular plants rang
SPD. And now that Pearl is in full operation Shell is ing in capacity from 200 to 5,000 b/d and does not
evaluating its future GTL options, including a require pure oxygen to convert the feedstock into
plant on the US Gulf Coast. syngas, meaning there is no need for a separate
40 WPC Guide
Alcohols
42 WPC Guide
Alcohols
used as an automotive antifreeze as well as in brake aldehyde, the starting point for many products.
fluid and man-made fibres. It is also mildly toxic. A hydroformylation reaction and then the hydro
Propylene glycol is similar in its physical proper genating of the aldehyde is performed to obtain
ties to ethylene glycol, but it is non-toxic and used the alcohol. An intermediate step of adding two
heavily in food preservation, cosmetics and dental aldehydes together to obtain a larger aldehyde
hygiene products. Other important glycols inc can be performed before the hydrogenation. Gas,
lude1,3-butanediol, which is used in the manu rather than oil, is widely used in the oxo process.
facture of brake fluid and plasticisers for resins; Major oxo alcohols that are used commercially
1,4-butanediol, which is used in polyurethanes, include 2-methyl-2-butanol (2M2B), n-butanol,
polyester resins for coatings and plasticisers, and 2-ethylhexanol, isononyl alcohol and isodecyl
for making butyrolactone, a solvent and chemical alcohol. The main global manufacturers of oxo
intermediate; 2-ethyl-1,3-hexanediol, which is used alcohols include BASF, Dow Chemical Company,
in insect repellent; and 2-methyl-2-propyl-1,3- Eastman Chemical Company and ExxonMobil.
propanediol, which is used in the production of Oxo alcohols are used as solvents and coatings
some tranquillising drugs. and in the manufacture of pharmaceuticals,
flavouring agents, plastics, dyes and cosmetics.
Methanol They are also reacted with phthalic anhydride to
Methanol is produced from carbon monoxide and form phthalates which are used to manufacture
hydrogen. It is used in the production of formalde vinyl plasticisers.
hyde, acetic acid and methyl methacrylate (MMA)
as well as a solvent. In the transportation industry,
it is used to produce methyl-tert-butyl-ether (MTBE),
which is used as an octane booster in fuel as well
as a gasoline compound. Formaldehyde is mainly
produced by the vapour-phase oxidation of meth
anol and large quantities are used to manufacture
many resins and plastics.
Acetic acid is an intermediate used in the pre
paration of metal acetates, some printing proces
ses, vinyl acetate (used to make industrial chemi
cals, glues, packaging, paints, paper, coating for
plastic films and as a modifier of food starch),
acetic anhydride (used in photographic film and
other coated materials, aspirin production and as
a wood preservative) and volatile organic esters,
such as ethyl and butyl acetates (primarily used as
solvents in nail care products).
Oxo alcohols
Oxo alcohols are prepared by adding carbon mon
oxide and hydrogen usually combined as a syn
Part of BASF Petronas Chemicals integrated site at Kuantan,
thesis gas to an olefin. This blend creates an Malaysia producing oxo alcohols and syngas.
Historical packaging for Aspirin on display at the Apothecary Museum in Heidelberg, Germany. The drug was first developed by Felix
Hoffmann, a chemist working for Bayer, and was brought to market in 1899.
44 WPC Guide
Petrochemicals in healthcare and cosmetics
The main use of petroleum products in healthcare is actually in transportation fuel. Finding alternative means of power, especially for
emergency response vehicles, may become an issue in the future.
transport is a major cost to healthcare systems mineral oil. Phenoxyethanol is a very widely used
globally, including ambulances, staff transport and ingredient in cosmetics but it is only used at less
transportation of supplies. Indeed, in the United than 1% of the product composition, which is the
States, according to US Bureau of Labor Statistics legal maximum in most countries. It is an oily,
figures, it is estimated that the use of petroleum slightly viscous fluid that smells faintly of roses. It
products in transport for healthcare is far greater is used in many skincare products, eye makeup,
than that used for drugs and plastics. The ongoing fragrances, blushers, detergents, baby products,
supply of the fossil fuels required to make all sunscreens and cuticle softeners. It is synthesised
these relevant healthcare products may become a for use in commercial cosmetic products.
bigger issue as time goes on and if healthcare sys Waxes are an important group of ingredients
tems are placed under further financial pressure. for the cosmetics industry and while some, such
Finding alternatives to using petrochemicals as lanolin, are animal waxes and others, such as
for many medications and items of medical equip jojoba, are plant waxes, mineral waxes and
ment may become important if healthcare is to synthetic waxes are derived from petrochemicals.
remain accessible or, for some regions, to become Mineral waxes used in cosmetics include
more accessible. In the United States, the Center ozokerite, paraffin, microcrystalline wax, ceresin
for Disease Control is investigating the impact of and petrolatum.
dwindling petroleum reserves on the provision Ozokerite is a naturally occurring mineral wax
of healthcare. but it is also produced as a mixture of micro
In the future, the healthcare industry may have crystalline wax, paraffin wax and other natural
to look at alternatives to using petrochemicals for waxes that match the properties of ozokerite. It is
pharmaceuticals and plastics although currently often used in creams because of its thickening
there are few alternatives. However, as only a tiny and emulsifying properties. Ceresin is usually a
proportion of petrochemicals is used to produce type of paraffin wax or it is made from a blend of
specialised products for the healthcare industry, petroleum waxes. It has similar properties to ozo
the supply chain for such products is currently kerites so is generally used for similar applications.
considered to be secure. Paraffin wax is a refined mixture of solid cryst
alline hydrocarbons. However, it is more brittle in
Cosmetics texture than ozokerite and not very compatible
The production of cosmetic products makes up a with mineral oil so its cosmetic uses are generally
very small proportion of global petrochemical
use. However, they are products which many of us
use on a daily basis and, as such, the role of petro
chemicals in their manufacture has generated a
lot of attention. While there has been a push
towards all-natural ingredients in cosmetics in
recent years as well as much debate over whether
petrochemicals are safe to include in cosmetics,
petrochemicals are a common component of
many popular beauty products.
Common petrochemical-based ingredients of
NIVEA Creme, in production since 1911, contains many
cosmetics include phenoxyethanol, waxes and ingredients derived from petrochemicals.
46 WPC Guide
Petrochemicals in healthcare and cosmetics
It is all too common to see claims on cosmetics and A common claim for cosmetics is that they are
websites that the products are free from certain all-natural or 100% natural. However, this claim
substances. There is a much debate as to the needs to be closely examined. Natural can also
acceptability of this practice and certain coun be confused with organic. Only two questions
tries, such as France, South Africa and Canada, need to be asked to determine of a substance is
ban companies from making such claims, either natural. Does the substance exist in nature? Is
by regulation or industry code of practice. Indeed, the substance extracted from nature with any
the forthcoming revision of EU cosmetics legisla chemical modification? If the substance does not
tion, the Cosmetics Regulation (EC) No. 1223/2009, exist in nature, it cannot be described as natural
due to be enacted mid-2013 will make it illegal to even if natural substances have been used
make such claims under most circumstances. exclusively in its manufacture. This can only be
These days, it is virtually impossible to see the described as nature-derived.
word petrochemical without it being associated However, taking the nature-derived definition
with the word free or does not contain or a to its logical conclusion, the only question is to
negative adjective such as toxic. Yet products how many stages of processing has the substance
containing oil or petrochemicals, which come been exposed. This introduces the concept of deg
from oil, are not necessarily toxic or harmful. rees of processing. Given that so few cosmetics
Oil itself is totally natural in origin. Synthetic ingredients are truly natural, how many degrees
chemicals produced from oil are not natural, of processing are acceptable to keep the ingredient
although many may be described as nature- as close to nature as possible? This is where the dis
identical. However, this does not mean that petro cussion becomes subjective rather than scientific.
chemicals used for cosmetics should all be classi Furthermore, can nature-identical substances
fied as toxic. The fact that a chemical has been be described as 100% natural? Part of the consi
derived from oil/petroleum in no way determines deration here should be the source of raw materials
the toxicity of the chemical. The toxicity of any used to manufacture nature-identical products.
substance, including petrochemicals used in The two most common nature-identical ingredi
cosmetics, is not related to its origin nor to the ents are sodium benzoate and potassium sorbate
origin of its precursors. as stated earlier, these are both petrochemicals.
While there are environmental issues surround There is no natural source for these ingredients and
ing the exploration, extraction and refining of oil, all usage in cosmetics is from synthetic production.
the singling out of the cosmetics industry for Many products which claim to be all-natural
using toxic petrochemicals is not accurate. With use petrochemicals but this does not mean they
less than 0.1% of total oil production used to are unsafe.
provide ingredients for cosmetics, sustainability is Dene Godfrey, a scientist, council member and
not a major concern. Many products which claim past president of the UK Society of Cosmetic
to be petrochemical-free contain sodium ben Scientists, has written on the use of petrochemicals
zoate and/or potassium sorbate which are both in the cosmetics industry and the safety issues. This
petrochemicals, albeit ones that exist in nature. is an edited version of his article, Petrochemicals:
These ingredients require a multi-stage synthesis Confusion and Hypocrisy and 100% Natural?
with many petrochemicals involved along the Almost 100% Certainly Not, first published on
way, but this does not make them any less safe. www.personalcaretruth.com.
48 WPC Guide
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50 WPC Guide
Petrochemicals in computers and electronics
52 WPC Guide
Petrochemicals in computers and electronics
important components and to ensure the pro separated at the point of recycling, such as separ
ducts we take for granted constantly improve. ating those with and without flame retardant.
Governments and businesses are recognising
End of life measures for plastics in electronics the economic opportunities that can be gleaned
In response to concerns about what happens to from recycling and proper end-of-life protocols
plastic in obsolete electronics, infrastructure for for electronics, including the plastic components.
recycling plastics used in electronics has been, or Indeed, the Minnesota Office of Environmental
is being, developed in many countries. This is ach Assistance deemed the recycling of electronic
ieved via government-run schemes, such as those thermoplastics as the single greatest opportunity for
organised by local authorities in Britain and the adding revenue to the electronics recycling process.
United States, as well as private companies, such The market for recovered plastics is growing
as Envirofone, a European recycler of mobile phones. with many product and industry applications
End-of-life options for the plastics used in elec under development. These include: compact disc
tronics include: feedstock recycling, mechanical re covers, camera casings, automotive parts, con
cycling, energy recovery (which is becoming more struction, shipping and concrete.
popular in European markets) and safe landfilling.
Technology has advanced to the point where Georgia Lewis is the Deputy Editor of International
different types of plastics can be detected and Systems and Communications.
Different types of plastics perform different roles l Polyamide Adaptors, food processor bearings.
in the manufacture of electrical products. Here l Polycarbonate Telephones.
are some common types and their main uses: l Polyesters Switches, electrical insulation.
l Acrylonitrile butadiene styrene (ABD) l Polyethylene Electrical insulation.
Computer housings, monitors, keyboards, l Polymethyl pentane (PMP) Circuit boards.
telephone handsets. l Polyphenylene oxide (PPO) TV housings,
l Alkyd resins Circuit breakers, switch gear. coffee machines.
l Amino resins Lighting fixtures. Useful l Polyphenylene sulphide (PPS) Transformers,
because of low conductivity. hairdryer grilles, element bases, moulded
l Epoxy resins Electrical components. interconnect devices. Replaces ceramics in
l Ethylene vinyl acetate (EVA) Handle grips, high-performance electrical components used
fridge-freezer door seals, vacuum cleaner in high-frequency applications.
hoses. l Polypropylene Kettles.
l Liquid crystal polymer (LCP) Moulded inter- l Polystyrene Refrigerator trays and linings.
connect devices. Replaces ceramics in high- l Polysulphone Microwave grilles.
performance electrical components used in l Polyvinyl chloride (PVC) Cable trunking,
high-frequency applications. cable and wire insulation.
l Phenol formaldehyde Fuseboxes, switches, l Styrene acrylonitrile (SAN) Outer covers of
handles. electrical devices, battery housings, air
l Polyacetal Also known as polyoxymethylene conditioning components.
(POM), used in electrical appliance housings. l Urea formaldehyde Fuse boxes, switches.
54 WPC Guide
Transport and automotive uses
Nylons contribution to car safety is most dramatically demonstrated in the deployment of airbags
ethylene in the manufacture of cars include reser seats made from petrochemical-based products,
voirs for wiper fluid, brake fluid and coolant, as well as such as styrene-based plastics, have been dev
flexible parts, such as suspension dust covers. eloped to meet crash test standards. Such seats
Other plastics that are commonly used in car have helped reduce the death rate from motor
production include dodecyl mercaptan, used for vehicle occupant-related injuries among children
headlight lens covers, and dodecyl disulphide, aged 14 and under.
used for brake light covers. Styrene, a clear liquid, is used to make acrylo
Petrochemical-derived synthetic rubber tyres nitrile butadiene-styrene (ABS), a heat-resistant
have improved car safety with their excellent thermoplastic widely used in automotive parts,
road-holding abilities, especially in wet conditions. including headlight covers and moulded plastic
Synthetic rubber is derived from petroleum, as interior parts. Seatbelts and airbags also rely on
opposed to natural rubber, which is obtained petrochemical-derived products for their manu
from certain tropical trees and this is commonly facture. Styrene-butadiene latex is used to make
used on aircraft and bicycle tyres as well as auto carpet backing for vehicles.
motive vehicles and motorcycles. Styrene butadiene- Polyalphaolefins (PAOs) are base oils which are
rubber (SBR) is a common synthetic rubber used not only used to manufacture fluids, oils and lub
for tyres, belts and hoses because of its excellent ricants when mixed with other additives, but can
abrasion resistance and durability. Another syn also be used in seat covers and other automotive
thetic rubber widely used in the automotive fabrics that require low volatility.
industry is thermoplastic olefin rubber (TPO). It is Other fabric-related uses for petrochemicals inc
used for parts such as interior and exterior trims, lude cyclohexane, a feedstock for nylon. This is com
door seals, arm- and headrests, consoles, airbag monly found in seatbelts and carpets, but nylon
covers and instrument panels. Cyclohexyl mer resins are also used in engine covers, air intake
captan is used in the automotive world to vul manifolds, airbags, reservoirs and in air con
canise rubber for tyres. ditioning components, such as fans. Paraxylene is
Phenolic resins are used in binders for friction a feedstock for polyester, found in seat fabrics,
materials in brakes and clutches, and car booster headliners and carpet, as well as radial tyre cord.
In high performance racing cars, where safety is vitally important, plastics are everywhere; from helmets and neck braces to seatbelts and
fire-proof clothing.
Products associated with car maintenance also coloured its use helps mark traffic areas clearly,
rely heavily on petrochemicals, such as antifreeze such as bus lanes, improving safety.
and radiator coolant, which is often produced
using ethylene glycol. Hydraulic brake fluids and Motorsport uses
petroleum demulsifiers are also made with ethy Motorsport is heavily reliant on a range of
lene glycol. Other petrochemicals used to make petrochemical-derived products, such as carbon
car maintenance products include polysulphides fibre, used to make lightweight body parts. To
for engine lubricants and sulfolene for trans improve the power-to-weight ratio, carbon fibre
mission fluids and other base oil formulations. and other plastics are used extensively. This is an
example of how motorsport technology transfers
Road construction uses to passenger cars, which are featuring more plas
Roads themselves are also created using petro tic components than ever before and, especially
chemicals. Asphalt, a by-product of crude oil re at the luxury end of the market, carbon fibre is
fining, has long been used on roads, motorsport being used more extensively.
race tracks and footpaths. Companies such as The E20 chassis designed for the Lotus Formula
Total have further developed asphalt with addi One team uses carbon fibre for the top and bot
tional ingredients to create high-performance tom wishbones of the suspension and moulded
surfaces. Totals two flagship asphalt products, carbon fibre is used in conjunction with an
Styrelf and Kromatis combine standard asphalt aluminium composite for strength and light
with elastomers to provide road surfaces that are weight efficiency. The car also features a synthetic
elastic, cohesive and adhere well to the ground. rubber fuel cell reinforced with Kevlar, another
Kromatis, meanwhile, is used for urban roads and petrochemical-derived product, and a seat made
it can be cold-mixed or hot-mixed and bulk- from an anatomically formed carbon composite.
56 WPC Guide
Transport and automotive uses
Motorsport teams form close, mutually-beneficial partnerships with oil companies exemplified by multiple F1 championship winning
Red Bull Racing and Total.
Formula One teams, World Rally Championship to reach 50% in 2013. Ethylene and propylene
teams and Moto GP teams form partnerships with glycols are used in products, similar to car anti
oil companies in order to provide high quality freeze, to help aeroplanes take off in winter
fuels, lubricants and other specialised additives weather conditions.
for the racecars. For example, in the world of
Formula One, Red Bull is in partnership with Total Georgia Lewis is the Deputy Editor of International
and Ferrari Scuderia is in partnership with Shell. Systems and Communications.
Petrochemical experts are required to create
products such as additives for cold resistance,
enhanced combustion and efficient, cleaner-
burning fuels and lubricants.
Aeronautical uses
Like the automotive and motorsport industries,
the aeronautical industry relies heavily on petro
chemicals. Composites derived from petrochemi
cals can save more than 30% of the weight of an
aircraft structure. Keeping components light is
essential on aircraft and the weight of every item
counts, right down to the plastic used in the
miniature spirit bottles. Since the 1970s, the use
Kevlar honeycomb exhibits great structural strength while
of plastics in the manufacture of aircrafts has consisting of 90-99% open space, an important consideration in
increased from 4% to almost 30% and is expected the aerospace industry where weight is at a premium.
58 WPC Guide
Petrochemicals in construction
A special adhesive was developed to join the precast concrete segments of the Dubai Metro line, able to withstand the countrys
sometimes extreme climatic conditions as well as the impact caused by the trains.
60 WPC Guide
Petrochemicals in construction
New materials extend the possibilities for the construction industry. The Spyridon Louis stadium built for the 2004 Olympic Games in
Athens has a transparent roof made of Makrolon polycarbonate from Bayer MaterialScience.
62 WPC Guide
Fertilisers
Synthetic versus organic fertilisers cides and insecticides has increased along with
Synthetic fertilisers are chemically identical to nitrogen fertiliser use.
organic fertilisers, but fertiliser companies have Nitrogen fertilisers can also be explosive and
acknowledged the damage careless use of fer have been used in the making of bombs. As such,
tiliser can do, such as causing algae to grow and many markets now place restrictions on who can
depleting waterways of oxygen. However, animal buy fertiliser and quantities in which it is purchased.
manure also contributes to such pollution. Another Debate continues as to whether organic or
attraction of petrochemical fertilisers is that they chemical fertilisers are more environmentally
are generally more cost-effective to produce and friendly. Dependence on chemical fertilisers can
cheaper to buy than many organic alternatives. be reduced by combining its use with organic
Further issues have been identified with the fertilisers. Unlike organic fertilisers, chemical ferti
increased use of nitrogen fertilisers in a bid to lisers can be easily blended to provide more
meet growing demand for food in a world with a precise levels of nutrients.
rising population. These include issues related to Along with more eco-friendly manufacturing
the homogenisation of many staple crops, such as processes, many nitrogen fertiliser producers claim
rice, the use of fertilisers in explosives and the they are using ingredients, such as monoethanol
environmental issues. amine and potassium carbonate, because of
It has been argued that agriculture is now tied their purity and to ensure that compositions of
to the petrochemical industry because of the dev synthetic fertiliser are accurate so they can be
elopment of high-yield varieties of crops. Many of used efficiently.
these crops only respond well to nitrogen ferti Looking ahead, petrochemical companies invol
lisers and this has reduced the variety of crops ved in the production of fertiliser, are being encour
farmed in many countries. For example, in India, aged to diversify, to investigate alternative feedstocks
there were around 30,000 varieties of rice prior to and to ensure best practice techniques are used
the 1940s but only around 10 grown widely today. along the entire supply chain to minimise the en
All these are high-yield types and the narrower vironmental impact of nitrogen fertiliser production.
genetic base for these crops has made them more
susceptible to pests. Therefore, the use of pesti Jess Coutts is a freelance journalist.
Modern agricultural production and the petrochemicals industry advance hand-in hand. It is in everyones best interests to ensure that
petrochemical-based fertilisers continue to minimise their impact on the environment.
64 WPC Guide
Petrochemical usage in food
anisms remains the main contributor. Through retardation of growth and ultimately death of the
the understanding of how microorganisms are microorganism. As benzoic acid produces a sour
able to proliferate and thrive in our foods, meas taste, they are used as food flavourings to some
ures can be taken to optimise shelf life. extent. They are used to flavour the pickles used in
Food preservatives are substances that are McDonalds burgers.
introduced into foods to retard or eliminate the Mineral oils are also used as food preservatives.
growth of microorganisms. One of the most com They are manufactured from crude mineral oils
monly used petrochemicals in the food industry though various refining steps and encompass a
as a preservative is benzoic acid. Benzoic acid subgroup of the family of mineral oils and waxes.
occurs naturally in sources such as cranberries, There are two different types of waxes derived
prunes and plums, or can be synthesised via from petroleum that are used in the food industry
petroleum-derived intermediates such as phthalic paraffin waxes that are distinguished by large,
anhydride or toluene. well-formed crystals and microcrystalline waxes
Benzoic acid and its salts and esters (benzoates) (E 905) that have a higher melting point with
are commonly used in fruit juices and soft drinks smaller and irregular crystals.
in an acidic pH range. Different forms of benzoic The microcrystalline wax (E 905) is non-toxic
acid and benzoates used include benzoic acid (E and approved for use internationally for surface
210), sodium benzoate (E 211), potassium ben treatment of non-chocolate confectionery, chew
zoate (E 212) and calcium benzoate (E 213). The ing gum, melons, papayas, mangoes, and avocado
antimicrobial property of benzoic acid is attribu at quatum satis (meaning the use of the appro
ted to its ability to be absorbed by the micro priate concentration needed to achieve the des
organisms. Inside the cell, benzoic acid lowers the ired results, but not more). The wax coating im
pH of the internal environment and inhibits the proves the appearance and shelf life of the foods
metabolism of the microorganisms, resulting in by inhibiting dehydration and protecting from
V
The preservative benzoic acid,
while naturally occurring in
fruit including cranberries,
can be synthesised from
petroleum intermediates.
oxidation. The protective barrier of wax also atte oxyanisole (BHA) and butylated hydroxytoulene
nuates the risks of microbial contamination from (BHT) are added to spare the oxidation of fats. As
the environment. For the European market, the these substances are fat soluble and have anti
purity requirements of the waxes are defined as oxidant properties, they are able to extend the
per Directive 2009/10/EC. In addition to coatings, shelf-life of these products.
microcrystalline wax is also an essential ingredient Foods commonly associated with the use of
in the production of chewing gum. Another pet BHA (E 320) and BHT (E 321) are those containing
rochemical that is used in the manufacture of fats such as vegetable oils, animal fats, flavourings,
chewing gum is resin. spices, nuts, processed meats and snack products.
One of the many side effects of microbial growth Despite the similar antioxidant properties of vita
in foods is the secretion of the digestive enzyme min E, BHA and BHT are preferred for their superior
lipase that breaks down fats. Unsaturated fats in thermal stability. BHA has greater heat tolerance
particular, are susceptible to oxidative damage. compared to BHT. Since the 1970s, BHA has been
The presence of water and oxygen may also cause steadily replacing BHT due to toxicity studies.
oxidation of these unsaturated fats. Effects of the In addition to their functions as antioxidants in
oxidation of fats include decreased nutritional food, BHA and BHT are also used in food packaging
quality, increased toxicity, development of rancid materials. Antioxidants applied indirectly into
flavours and odours, and altered texture and foods, for example, via food packaging, are known
colour. Petrochemicals such as butylated hydr as secondary antioxidants. In recent years, the use
66 WPC Guide
Petrochemical usage in food
of packaging materials that exert antimicrobial Additives for flavour and preservation
and anti-oxidative properties has garnered con Some petrochemical-derived additives perform
siderable interest. In the USA, cereal industries more than one role when included in food products.
have been utilising wax paper liners applied with Glycerol or glycerine is an example of an
BHA and BHT to contain breakfast cereals and approved, petrochemical-derived food additive (E
snack food products. BHA- and BHT-treated liners 422) that has the combined effect of acting as a
exert anti-oxidative effects on the foods via eva food flavouring and food preservative. Glycerine
porative migration into the foods. is an odourless, colourless, oily, viscous liquid with
Plastics have long been used as a protective a sweet taste. Among its desirable effects in foods
barrier for foods and are derived from petroleum. are: being used as a humectant (retains moisture),
The process of manufacturing plastic begins with emulsifier for fats, smoothing agent, heat transfer
the distillation of crude oil. Due to the varying media for frozen foods, solvent for food flav
lengths of the molecules in crude oil, they can be ourings and colourings, and as a sweetener.
fractionised at different temperatures. Of these The multi-step production of synthetic glycerol
fractionised components, naphtha is the crucial via the petrochemical propylene is known as the
element in the production of plastics. Similar epichlorohydrin process. However, this method
to the manufacture of food additives, naphtha was more favourable back in the days before the
undergoes the cracking process and is broken biodiesel boom in the early years of the 21st
down into single unit molecules called monomers. century. The biodiesel boom refers to the period
These individual units are then linked together in where the biofuel industry experienced a rapid
a process called polymerisation, producing a and accelerated expansion, resulting in a sharp
polymer chain. These polymer chains determine increase in the availability of glycerine, a by-
the characteristics of the final plastic that is pro product of biodiesel production, leading to the
duced. There are two different families of poly glycerine glut. Consequently, from 2004 on
mers, namely thermoplastic and thermoset. wards, natural routes of glycerol production such
Thermoplastics soften when heat is applied. as oil and fat processing dominated the industry
This is due to the separation of molecules from as synthetic means became economically unviable.
one another, enabling them to move easily at
high temperatures. Thermoplastics can be melted
and remoulded an indefinite number of times. On
the other hand, thermosets (also known as ther
mosetting plastics) form additional chemical
bonds between the molecules when they are first
moulded. Due to this complex three-dimensional
and tightly interconnected network of bonds, a
thermoset cannot be re-melted or change its
shape. If sufficient heat is applied, chemical de
gradation takes place. Examples of the different
types of plastics that are frequently used in the
food industry include polyethylene terephthalate
(PET) in food-contact films and high density poly
ethylene in food containers. Plastics have long seen use as food packaging materials.
C
Petrochemical-derived
astaxanthin, fed to farmed
salmon, both improves their
health and imparts the
characteristic redness of
their wild counterparts.
68 WPC Guide
Petrochemical usage in food
in salmon feeds. However, the use of cantaxanthin passed on to consumers. Further, natural sources
is not approved in Australia and New Zealand. In lack stability and there are still certain properties
addition to fish feeds, cantaxanthin is also a sup of synthetic sources that are unrivalled, such
plement in poultry feeds in order to modify yolk as brighter colours from dyes and heat sta-
and skin pigmentation. ble antioxidants.
Furthermore, in the area of plastics, researchers
Alternatives to the use of petrochemicals have been looking into substituting petroleum-
Notwithstanding the many advantages of using derived plastics with plant-based plastics. How
petrochemicals in the food industry, there have ever, there is still a lack of technological advances
been rising concerns over the safety and long- to ensure that naturally sourced plastics are on
term consumption effects on human health. A par with petroleum-derived plastics in terms of
clear cut consensus on the usage of the different effectiveness, cost and production efficiency.
petrochemicals cannot be made, but efforts and There are many natural substitutes for most
measures have been taken by relevant govern petroleum-derived substances. However, the mar
ment bodies to regulate levels of usage. ket forces associated with consumer perception
With the increasing demand for organic foods, and acceptability of increased costs and de
some manufacturers have opted for natural creased product quality will ultimately determine
substitutes. As with most petrochemicals used in which products are used by the food industries
the food industry, similar substances could be and whether alternatives are viable.
found in naturally occurring sources. However,
due to efficiency, availability and cost issues, Ju Piau Khue is a graduate in Food Science and
this can then result in increased costs being Human Nutrition from the University of Newcastle.
Heiko Schneller, a BASF laboratory worker, checking the quality of beta-carotene powder. Nature-identical beta-carotene gives soft drinks,
ice cream, custard and many other foods an attractive yellow to reddish-orange colour.
70 WPC Guide
Textile industry uses
These threads are dyed before being woven or can be used to make nylon and polyester pro
knitted together to make fabric. This can be done ducts. Melt-spun fibres can be extruded from the
through four methods of spinning: wet, dry, melt spinneret in different cross-sectional shapes, such
and gel-spinning. as round, trilobal, pentagonal and octagonal.
Wet spinning is used on fibre-forming sub Trilobal-shaped fibres reflect light to give a spark
stances that have been dissolved in a solvent. The ling effect to the fabric. Fibres that are spun in a
spinnerets are submerged in a chemical bath and pentagonal shape or are hollow are used in car
as the filaments emerge, they precipitate and pets to show less dirt. Hollow fibres also trap air and
solidify. Acrylic, rayon and Spandex are produced create insulation. Octagonal-shaped fibres offer
via this process. glitter-free effects.
In dry spinning, solidification is achieved by Gel-spinning is a process used to make high-
evaporating the solvent in a stream of air or inert strength fibres. In this process, the polymer is not
gas. The filaments do not come into contact with in a true liquid state during extrusion. The polymer
a precipitating liquid so there is no need for chains are bound together at various points in a
drying. This process can be used to make acetate, liquid crystal form instead this produces strong
acrylic, Spandex and vinyon. inter-chain forces in the resulting filaments that
In melt spinning, the fibre-firming substance is can significantly increase the tensile strength of
melted for extrusion through the spinneret and the fibres. Stronger fabrics can also be created by
then directly solidified by cooling. This process drawing the filaments while they are solidifying or
Uses
Textiles created from petrochemicals are many
and varied. They include fabrics commonly used
in clothing, such as rayon, acetate, nylon, acrylic,
polyester, elastane, which is commonly marketed
as Lycra or Spandex. Other more specialist
materials created from petrochemicals include
Kevlar and neoprene. Synthetic fabrics often have
multiple uses, some of which cannot be easily
achieved with natural fibres alone. Adding further
chemicals to synthetic fibres can further improve
their versatility.
Fabrics with excellent stretch are commonly
The versatility of synthetics is exemplified by polyester fleece, used in swimwear, lingerie and hosiery as well as
made from polyethylene terephthalate (PET); the same material
garments that benefit from stretchy fabric, includ
used to make plastic bottles.
ing T-shirts and tracksuits. Synthetics can be mixed
with natural fibres to create improved fabrics. For
afterwards this pulls the molecular chains to
example, polyester, when mixed with cotton, is a
gether and orients them along the fibre axis to
common example of a synthetic-natural blend,
create stronger yarns.
whereby a garment such as a T-shirt benefits from
Sometimes, additional chemicals can be added
the cooling, breathable nature of cotton and the
to the fabric for specific purposes. Chemicals can
stretch, durability, easy care and quick drying
make the fabric softer, free of wrinkles, more
properties of polyester. Polyester is also used in
stretchy, flame-resistant, stain-resistant, water
raincoats, fleece jackets, childrens nightwear, med
proof and moth-repellant.
ical textiles and working clothes.
Other blends of natural and synthetic fibres
include cotton/Lycra blend, which is especially
useful for manufacturing denim which is more
comfortable and fits better than 100% cotton
jeans, and acrylic/wool blend, which is used to
manufacture trousers that are less expensive and
easier to care for than 100% wool.
Acrylic is widely used for jumpers, fleece jackets
and blankets because it has similar properties to
wool, but dries much faster and is more easily
washed in machines.
Nylon, commonly marketed under a number of
brand names, such as the Invista-owned Tactel,
Best known for its use in bulletproof vests, Kevlars properties of
has a wide range of uses, including active sports
high strength, abrasion and temperature resistance and electrical wear, fleece jackets, socks, seatbelts, tents and
insulation make it idea for shielding cables. This umbilical is used
by the oil industry in a subsea application for drilling and
waterproof garments. The combination of warmth,
recovery. durability and weatherproofing makes it a very
72 WPC Guide
Textile industry uses
V
DuPont vice president Charles
Stine announced the
development of nylon hosiery
at the New York Worlds Fair in
1938. The first sales were
made in Wilmington,
Delaware the following year.
versatile textile. It is also easy to clean and does lation, padding for bicycle seats and saddles, and
not crease easily. automotive fanbelts.
Neoprene, originally developed by DuPont scien Kevlar, developed by DuPont in the 1970s, is
tists in 1930, is produced by the polymerisation of another synthetic textile which has multiple uses.
2-chlorobutadiene. This process occurs in an aque It is an aramid fibre, that is, a fibre that is an
ous emulsion. It is a versatile material that is dur aromatic polyamide. It is also produced under the
able, elastic and maintains flexibility over a wide trade name of Twaron. It can be manufactured in
temperature range. As such, it is used on wetsuits, many different grades for a range of clothing,
laptop sleeves, orthopaedic braces, electrical insu accessories and equipment that is safe and cut-
Nylon fishing nets being prepared to be recycled to produce Biosfera I carpet tiles, extending the useful life of the material.
resistant. Like carbon fibre, which is commonly temperature and pressure applications, and ad
used on racing cars, Kevlar is both lightweight and hesives and sealants.
strong. Other properties of Kevlar include low As well as producing fabrics, the petrochemicals
density, good impact resistance, good abrasion industry also has a hand in creating products that
resistance, good chemical resistance, good resis are related to the textiles industry. Fabric softener,
tance to thermal degradation. It is usually yellow dye fix, dyestuffs, stain removers and fabric bright
in appearance but is frequently coloured, depen eners all rely on petrochemicals
ding on its application, such as camouflaging
colours for bullet-proof vests. While the manu Responsible textile manufacturing and
facture of bullet-proof vests is probably the best alternatives
known application for Kevlar, it is a very versatile There has been concern that while these are des
material with uses that transcend textile uses. irable qualities in fabrics, the fabrics are non-
Other applications include protective apparel biodegradable so they do not break down in soil if
(such as gloves, motorcycle protective clothing, they are discarded. The synthetic textile industry
hunting gaiters and chaps; sails for boats), belts has also come under criticism for the effects on
and hosing for industrial and automotive appli the environment, wildlife and health, especially
cations, aircraft body parts, boat hulls, fibre optic for those who work to produce these fabrics.
and electromechanical cables, friction linings for Factories have been accused of consuming exc
clutch plates and brake pads, gaskets for high essive amounts of water and energy. However,
74 WPC Guide
Textile industry uses
major companies are leading the way in dev the industry with incentive plans to change old
eloping economically and environmentally effi technology with modern equipment. Cutting edge
cient technologies, considered essential if the ind technology is available.
ustry is to evolve and remain relevant. Like BASF, Fong Industries have made improve
Two such companies are BASF Textile Chemicals, ments to their synthetic dyeing processes and the
based in Germany, and Fongs Industries, based in companys water- and energy-saving dyeing mach
Hong Kong. ine with an ultra-low liquor ratio has been listed in
BASF is taking a series of measures to be a more The 6th Recommendation Directory of Advanced
responsible synthetic textile producer, such as a Energy-Saving and Emission-Reduction Technology
processing system which reduces the use of for for Chinas textile, printing and dyeing industry.
maldehyde, including eliminating the use of for Other textiles companies, such as Interface, are
maldehyde in the dyeing, pigment dyeing and pig looking to reduce their reliance on using petro
ment printing process. Products that are manu chemicals until ultimately they are not used at all.
factured using fewer chemicals as well as saving An example of this is Fotosfera, a carpet tile pro
water and energy have been another staple of duct that is currently sourced from 63% bio-based
BASFs textile business. For example, Cyclanon ECO content, most notably oil from the seeds of castor
is a reducing agent for post-clearing dyeing on bean plants. Castor beans grow well in sandy soil,
polyester, polyester blends and acetate. It is a low- only require water every 25 days and do not
toxicity liquid which destroys unfixed dye partic compete with food crops, making them a sus
les so waste water leaving the dye house is mostly tainable source of oil for nylon. Fotosfera carpet
decolourised. It can also lighten direct dyeing. tiles are installed using another Interface product,
The carbon footprint of dyeing has also been TacTiles, which are plastic adhesive patches made
reduced with a one-step process of pigment dye from PET polyester and do not require traditional
ing and finishing the BASF Color Fast Finish is carpet glue so while the patches are plastic, the
much shorter than the conventional dyeing pro adhesive is far less volatile.
cess, reducing energy and water consumption and Interface has also developed Biosfera I, another
subsequent carbon dioxide emissions. BASFs Ultra carpet tile collection. Biosfera I tiles are made from
phor SFG liquid fabric brighteners can be applied at 100% recycled materials, including nylon from
lower temperatures for further energy savings. fishing nets. This gives products already created
Fongs Industries, meanwhile, has been setting from petrochemicals a longer life, well past their
an example in China and Europe for several years original uses.
with the textiles part of its business. China is by far Alternatives to synthetic, petrochemical-based
the worlds leading producer of synthetic textiles, textiles that are equally practical, but more sus
producing 51.8% of the worlds man-man fibres tainable are growing in popularity. An example of
with India a distant second at 6.2%. Speaking at a company making great strides in this area is
the inaugural ITMA Asia +CITME conference in Lenzing, which manufactures fibres from wood
2008, a major pan-Asian textile industry event, Bill rather than oil. Polymers in the form of cellulose
Fong, who oversees the groups business dev wood pulp are converted into fibres known as
elopment projects, said of textile companies im man-made cellulosic fibres.
proving environmental standards: Action is need
ed, but the industry cannot do it alone. National Georgia Lewis is the Deputy Editor of International
and multinational governments should support Systems and Communications.
76 WPC Guide
Sports and leisure
V
AstroTurfs first major
installation was at the
Houston Astrodome in 1965.
Synthetic turf has gone on to
find many uses beyond the
field of play.
nally, artificial turf was made from short-pile syn beam and every needle pulls a yarn through a
thetic fibres without infill while second-gener base fabric and form a loop. Each loop is then cut
ation artificial turf used sand as an infill from the so the fibres stand upright.
1980s. The latest artificial turfs, developed in the So commonplace are synthetic turfs in the
1990s, tend to use infills made from a blend of world of sport that sports governing bodies such
sand and recycled rubber. as FIFA recommend and approve them, such as
The basic material for the short-pile turf is Total Petrochemicals Lumicene product.
polypropylene and polyethylene granules which As well as sporting uses, artificial turf has been
are melted and extruded to create long yarns or a used at airports instead of natural grass. It is easier
film that is then cut into individual yarns. The for vehicles to drive over, it doesnt attract wildlife
yarns are then tufted into a polypropylene fabric, so the risk of wildlife colliding with planes is
in a similar technique to that used for domestic reduced, it stays green in all weathers so it is easily
carpet hundreds of needles are positioned on a spotted by pilots and it is easier to maintain.
BASFs Conica track surface was specifically designed for world record attempts and to be easy on athletes joints.
78 WPC Guide
Sports and leisure
ated with the Yingyou Group, Chinas biggest car as Marlborough Plastics, a US-based company,
bon fibre producer. Carbon fibre is strong, rust- supplies moulded plastics which are then turned
resistant and light so it is an obvious choice for into a wide range of products for different sports
improving bicycles. DuPont has used ionomer (a poly by other manufacturers. Sporting products which
mer with ethylene as the major component and can be made from plastics include helmets, archery
contains covalent and ionic bonds) resins to imp bows, canoes, tennis racquets, caps and nose plugs
rove the performance and durability of its golf balls. for swimmers and divers, bats and balls (especially
Plastics have revolutionised the world of sport for children), baskets on ball collecting carts for
ing equipment, often replacing traditional mat golf driving ranges and the seats at stadiums.
erials, such as leather and wood, to create items
that are durable, easy to mass-produce and are Georgia Lewis is the Deputy Editor of International
generally more affordable. Some companies, such Systems and Communications.
Eva Terelj of Slovenia competing in the 2012 Olympic Slalom Canoeing. Plastics selected for strength and lightness enhance equipment
and protect participants in demanding sports.
www.technip.com
Proprietary & Alliance Technologies
Technip Stone & Webster process technologies
Market leader in hydrogen having provided more than 250 hydrogen units worldwide.
Fluid catalytic cracking (FCC/RFCC) process developed jointly with Axens, IFP and Total. To-date, we
have licensed 52 grassroots units and performed more than 220 revamp projects. We are the world
leader in Resid FCC.
Deep catalytic cracking (DCC), developed by Sinopec Research Institute Processing. We license the
technology outside of China with 16 DCC units implemented worldwide.
BenzOUT gasoline benzene reduction technology licensed by Badger Licensing LLC, a 50/50
ExxonMobil and Technip alliance.
Global summar y
82 WPC Guide
Global summary
those used for household applications, the auto tor. Investments by Chevron Phillips Chemical inc
motive industry, packaging, medicine, sports and lude a world-scale ethane cracker and ethylene
fashion. A major focus of Totals petrochemical facility at its existing operations on the US Gulf
and refining business is expansion in the growing Coast. The new facility will exploit feed sources
markets of Asia and the Middle East. from the development of shale gas reserves.
Here is a region-by-region round-up of the Ongoing developments in technology are also
industry. vital for the growth of the North American petro
chemical sector. Honeywell, for example, has ann
North America ounced the launch of a new membrane element
The shale gas revolution has resulted in major to efficiently remove contaminants from natural
changes to the North American petrochemical gas and reduce the amount of valuable methane
market. lost during the decontamination process.
The US petrochemical sector is also bolstered
United States of America by many of its leading companies expanding inter
Stable natural gas prices, along with an abundance nationally, something which many have been
of shale gas and a willingness to exploit this doing for decades. ConocoPhillips has been ex
resource in many US states, has boosted industry panding internationally since the 1930s (when it
competitiveness. was still trading as Phillips, it merged to form
Low gas prices are helping the US industry in two ConocoPhillips in 2001) with forays into counties
ways natural gas has become an important part such as Canada, Venezuela, Mexico, China, Indonesia
of the petrochemical industrys energy mix, which and Australia.
keeps costs down, and certain fractions of natural
gas, such as ethane, methane and other light Canada
hydrocarbons, are vital petrochemical feedstocks. In Canada, the industry is very similar to that in
Low gas prices could have an adverse effect if the US but with some differences. The American
gas production companies do not make a profit natural gas boom means the US has less need to
because that could lead to gas resources not import gas from Canada. Despite this, plenty of
being developed. But companies in the US are natural gas-derived petrochemical feedstocks in
favouring the production of gas that is rich in petro Canada have been earmarked for the export market.
chemical feedstock material wet gas rather than The drop in demand from the US has led to a fall
dry gas, which is low in feedstock components. in Canadian natural gas production and the lack
Projects to increase the capacity to produce of gas leads to a reduced availability of ethane for
ethylene from ethane in the US have been feedstock. However, natural gas companies in the
announced but it is uncertain which ones will be Canadian province of Alberta have devised a
completed those that are built will be able to creative solution moving ethane to Alberta from
focus on export markets. However, Dow Chemical a shale formation in the US state of North Dakota,
Company is confident its new ethylene plant in extracting feedstock materials from the by-product
Texas will be completed by 2017 and Celanese off-gases resulting from the bitumen upgrading, as
expects to complete a methanol production plant well as extracting incremental quantities of ethane
in Texas by 2015. from the gas that is produced in western Canada.
The shale gas boom in America will also con Alberta is Canadas leading producer of petro
tinue to bolster the countrys petrochemical sec chemicals with the sector producing more than
Europe
Europes $98.5 billion petrochemical industry is
primarily derived from feedstocks based on crude
oil rather than natural gas, as is the case in other BASFs plant in Schwarzheide. BASF is one of many German
markets, such as the US. As long as oil prices companies increasing production.
84 WPC Guide
Global summary
France
Following a year of zero growth in 2012, the
French petrochemical sector is looking to boost
research and development and exploit speciality
The Tobolsk-Polymer plant is Russia is scheduled for launch in
markets in order to strengthen the sector. Propy 2013, producing 510,000 metric tonnes of polypropylene per year.
lene, butadiene, the increasingly popular linear
low-density polyethylene (LLDPE) and polyethy to the need to compete on a global level, and to
lene terephthalate (PET) are the main petroche offset potential undermining of price competitive
mical products made in France. The main areas of ness in the wake of feedstock price liberalisation,
demand for French petrochemical products is in by diversifying and building capacity. The diversi
aerospace, packaging and food processing. fication of the petrochemical sector has gone
French producers are looking beyond the tradi hand in hand with growth in the automotive and
tional markets within the Eurozone, with the US construction sectors, both of which rely heavily
and Asia offering more potential for growth. It is on petrochemical products. Overall production
hoped that looking outside of Europe will offset capacities are expected to double by 2017.
the impact of factors such as low consumer confi Potential availability of naphtha and ethane
dence, fiscal cuts, investment limited by space feedstock is strong because of expansion of refi
constraints, and unemployment. neries and the countrys growing gas sector.
Taiwan is an example of a market in which Fertiliser is a strong performer for the Russian
France is keen to expand its petrochemical activi petrochemical sector with an exportable surplus
ties. The Petrochemical Industry Association of being produced. Polymers capacity is expected to
Taiwan and the French Institute in Taipei have exceed 10 million tpa by 2017, a three-fold inc
been holding meetings to discuss sharing tech rease from 2008.
nology and knowledge in areas such as environ Projects slated for completion in Russia by 2014
mental protection, energy conservation and manu include plants in the plastics and rubbers sector,
facturing. French companies slated to be involved including 60,000 tpa of acrylobitrile-butadeine-
in possible partnerships include Elbe Petro, MPR styrene (ABS) and 3,330,000 tpa of PVC. Other
Industries, RB Technologies, SAS, Vulcanic SAS and petrochemical products with projected growth in
Bernard Controls. production include polyethylene, polypropylene,
polystyrene and polyethylene-terephthalate. This
Russia growth mix is expected to coincide with an inc
A robust petrochemical sector has been an impor rease in local demand for plastics.
tant part of Russias continued economic growth. In 2012, two major Russian players, gas giant
Russian petrochemical producers have responded Gazprom and petrochemical manufacturer Sibur,
joined forces to sign a long-term contract to sup housing construction, and the PP sector is under
ply natural gas liquids (NGLs) from the Surgut pressure from a slump in automotive production,
Condensate Stabilisation Plant to the Tobolsk- there is still good news ahead for Dutch petro
Neftekhim facility up to 2021. The agreement chemical producers.
means the annual supply of NGLs will rise from The sector is still very competitive in the area of
440,000 mt to 1 million mt by 2016. Hydrocarbon high-value finished products. As such, the sector
feedstock volumes beyond 2016 will be agreed at is still very attractive to foreign investors. Teijin, a
a later date. Japanese company, opened its first high-perfor
Rosneft is building a mega petrochemicals mance polyethylene (HPPE) production facility in
complex with 3.4 million tpa capacity in Nakhodka Emmen in October 2011, as part of the drive
with a 2017 completion date. towards diversification. Thailands Indorama Ven
Forming international partnerships is another tures is aiming to increase PTA capacity at its
diversification strategy for Russian companies. For Rotterdam plant by 2014 so it can serve as an
example, gas company, Novatek, has signed a 2013 important feedstock supplier to PET producers in
agreement with the Yeochun Naphtha Cracker western Europe.
Center (YNCC), a South Korean petrochemical com
pany, to supply up to 300,000 tonnes of light Denmark
naphtha, which is produced at the Ust-Luga Gas Con The production and export of petrochemicals
densare Transshipment and Fractionation Complex. plays a major role in the Danish economy, with
companies such as Novo Nordisk and Haldor
The Netherlands Topse leading the way. Novo Nordisk runs a
The petrochemical sector in the Netherlands high-tech, highly specialised operation with heavy
is well placed to remain competitive despite investment in research.
troubled economic times in Europe. While export Haldor Topse, meanwhile, recorded its best-
growth has slowed, consumer demand is flat, the ever operating profit in 2012 with turnover inc
PVC sector is under pressure from a slump in reasing by 19% to DKK 5,244 million compared to
DKK 4,421 million in 2011. This was achieved in
spite of increased research and development
costs. The company is focusing on expansion and
modernisation of chemical production and oil
refining to create new opportunities worldwide.
Long-term projects for Haldor Topse include
investment in Pakistans Fauji Fertiliser Company,
in which it holds a majority stake.
Middle East
At the start of the 21st Century, a petrochemicals
boom was tipped for the Middle East with exten
sive hydrocarbon resources in Kuwait, Oman,
Qatar, Saudi Arabia and the United Arab Emirates.
While petrochemical demand within these coun
A plastomers production site in Geleen, The Netherlands. tries is fairly limited, world-scale production facili
86 WPC Guide
Global summary
ties were developed to cater to export markets portant for Kuwait to continue to invest in and
with a strong focus on China. recognise the value of the countrys petrochemical
While there were concerns that the new capa sector. With Gulf states, including Kuwait, looking
city of the Arabian Gulf states would lead to over to move away from relying on oil for energy, the
supply and lower prices, this has not been the opportunity for Kuwaiti oil resources to continue
case. The supply-demand balance has been well- to be exploited for use in the petrochemical
managed courtesy of three factors stronger than sector is very positive.
anticipated worldwide demand and, interestingly,
delays in getting new capacity utilisation rates up, Oman
as well as low production costs. Oman is in the process of stepping up its efforts to
Investment in the Middle Eastern petrochemical capitalise on its hydrocarbons resources and this
market continues, although the pace of invest includes expansion of the petrochemical sector. It
ment has slowed. is hoped that this will reduce dependence on
imports and raise higher export revenues.
Kuwait The Oman Oil Company (OOC) announced in
Thanks to large crude oil reserves proven reser October 2012 that it was setting up a new
ves of 104 billion barrels the petroleum industry petrochemicals facility in the industrial centre of
accounts for nearly half the Gulf states GDP. As a Sohar on the Gulf of Oman. The plant has been
result of these vast natural resources, the largely budgeted at $800 million and it will produce
government-owned and run petrochemical sec purified terephthalic acid (PTA) for polyester fibre,
tor has grown strong, with the assistance of resin and film, and polyethylene terephthalate
foreign investors. (PET) for use in plastics.
The five major players in the Kuwaiti petro OOC already has a large downstream petro
chemical sector are Equate Petrochemical Company chemicals portfolio, including Salalah Methanol
(produces ethylene oxide, ethylene glycol, ethy and the Oman-India Fertiliser Company, as well as
lene and polyethylene), Kuwait Paraxylene Pro a holding in the Oman Refineries and Petroleum
duction Company (produces benzene and para
xylene), Petrochemical Industries Company (pro
duces polypropylene), the Kuwait Olefins Company
(produces ethylene glycol and ethylene), and The
Kuwait Styrene Company (produces styrene).
Dow Chemical Company is a major foreign
investor in the Kuwaiti petrochemical sector with
42.5% stakes in Equate Petrochemical Company
and the Kuwait Olefins Company. Dow Europe
Holding has a 42.5% stake in the Kuwait Styrene
Company. The state-owned Qurain Petrochemical
Industries Company is another major player with
stakes in Equate, Kuwait Paraxylene Production
Company and The Kuwait Olefins Company.
Hamad Al-Terkait, CEO of Equate Petrochemical ORPICs aromatics plant in Sohar, Oman, converts naphtha
Company, told Aljarida newspaper that it is im feedstock into benzene and paraxylene.
90 WPC Guide
Global summary
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Global summary
ExxonMobil partnered with Sinopec, Fujian Province and Saudi Aramco to develop Chinas first integrated refining and petrochemical
facility with foreign participation.
The export market is essential to Sinopecs on Venezuela in which an integrated refinery plant is
going growth with more than 150 end-user and being built in Guangdong. CNPC will have a 60%
distributor companies in more than 100 countries. stake and Petroleos de Venezuela will have a 40%
Major end-users of Sinopecs petrochemical pro stake in the $9.4 billion project which is expected
ducts include DuPont, Proctor & Gamble and to open in late 2014.
Michelin. Its main export products include petro Chinas twelfth Five-Year Plan includes new
leum coke, paraffin wax, base oil, PET, PVC, soda ash, environmental laws to help ensure industries,
caustic soda and fertiliser. Sinopec is also involved in including petrochemicals, are more sustainable.
a joint venture in Guangdong with Kuwait Petroleum Under the latest plan, China is evolving its regu
Corporation. This is worth $9.3 billion and includes latory regime so that industries that are heavy
a refinery and ethylene plant with a capacity of energy users are encouraged to adopt more eco-
1 million tpa. It is expected to come online in 2015. friendly policies. Stricter controls on proliferating
Numerous US companies have expanded into petrochemicals plants have been introduced since
the Chinese petrochemical market. Air Products 2011 to try and address environmental concerns.
has opened a specialist amines plant in Nanjing to
complement existing petrochemical development. India
ExxonMobil is expanding petrochemical oper Along with China, India is Asias other growing
ations in China and India, supplying these markets economic powerhouse. With a population that
from its global network, including manufacturing has already exceeded one billion and set to
facilities in Singapore. Eastman Chemical Com approach that of China by 2025, the market is
pany, through its acquisition of Genovique Speci enormous. Add to this the growing middle class,
alities Corporation, a worldwide producer of with more than 63 million households expected
specialist chemical products, has acquired a joint to have an annual income greater than $6,500 by
venture operation in Wuhan, China with Wuhan 2015 and the demand for consumer goods is
Youji. The plant opened in 2007 and it produces high, including petrochemical-derived products.
Benzoflex, a plasticiser. Overall, Indias chemical industry is very strong
China National Petroleum Corporation (CNPC) with an estimated $91 billion of sales in 2011,
has a joint venture with Venezuelas Petroleos de projected to reach $134 billion by 2015. The
petrochemical sector is currently valued at around supply of consumer and automotive products
$40 billion, is expected to grow annually at a rate was disrupted.
of 12-15% and employs around one million people. Despite this, Japan has plenty of capacity to
There are numerous factors which will drive meet domestic requirements. The sector conti
growth in Indias petrochemical sector, including nues to grow each year, although growth for 2013
large, unexplored reserves of oil and gas and low- is projected to be 1.2%, compared with 1.5% in
cost infrastructure. Indian per capita consumption 2011. Looking ahead, Japanese petrochemical
of polymers is still relatively low but it will increase producers will continue to be challenged by the
as the population, labour force, and the middle appreciation of the yen, as well as competition
class grows with it. As long as the sector continues from the Middle East and other Asian countries,
to attract a combination of government, local and continuously high feedstock prices. In the
corporate and foreign investment, this will also wake of this, some Japanese petrochemical pro
drive growth. The Indian government is esta ducers are expected to restructure their oper
blishing new petroleum, chemical and petro ations or even close down some plants.
chemical investment regions in states such as To overcome these issues, many Japanese com
Tamil Nadu and Karnataka. panies are also turning their attention to produc
BASF India is increasing its presence with a tion activities in emerging markets, including China,
$195.6 million investment in a new chemical Saudi Arabia, Singapore and Thailand. These com
production site in western India. panies include Sumitomo Chemical, Mitsui & Co,
There are challenges ahead for Indias petro Mitsubishi Chemicals, Asahi Kasei and Ube Industries.
chemical sector and these must also be addressed Masakazu Tokura, President of Sumitomo Chemi
to maintain competitiveness, stay cost-effective cal said: Expansion of overseas operations is
and continue to attract investment. Procuring raw necessary for the survival and the development of
materials and feedstock from oil- and gas-rich the petrochemical business. Japans petrochemical
countries needs to be managed efficiently. There industry faces various challenges, such as the
is also a growing need for more investment in transfer of user industries production bases abroad,
research and development, new technologies the yens appreciation and a decline in cost-com
and environmentally friendly initiatives. Indias petitiveness due to higher electricity bills in Japan.
trade and logistics infrastructure will also require Sumitomo Chemical is going ahead with a joint
more development to cope with the demands of venture with Saudi Aramco on the Rabigh Phase II pro
both the domestic and export market. ject worth $7 billion. The project will use cost-com
petitive ethane as part of its feedstock and existing
Japan infrastructure from Rabigh Phase I will be used.
The Japanese petrochemical sector has long been Mitsui & Co will also be joining forces with a
an important part of the countrys economy but in Saudi Arabian company. Along with a consortium
recent years, changes have been made to cope of other Japanese companies, Mitsui & Co has
with increased competition from emerging signed a joint venture with Saudi International
markets. The March 2011 earthquake and tsunami Petrochemical Company (Sipchem) to set up a
also had an impact on the petrochemical sector. plant to produce methanol.
As a result of this, many locally produced petro Mitsubishi Chemicals operates a PTA plant in
chemicals have been used in the reconstruction Chinas Ningbo province and Asahi Kasei is ex
work in affected areas, such as Fukushima, while panding its South Korean operations.
94 WPC Guide
Global summary
Malaysia
Malaysia has evolved since the 1970s from a
producer of raw materials to a multi-sector
economy and petrochemicals has an important
role to play in this mix. Petroleum and its related
products make up 10.1% of the economy. A wide
range of petrochemicals are produced in Malaysia,
including polystyrene, olefins, vinyl chloride
monomer and polyvinyl chloride. Investments in
the sector are estimated at $9.28 billion and there
The Shell Eastern Petrochemicals Complex on Bukom Island,
are 29 petrochemical plants across Malaysia Singapore.
making 39 types of products. Petronas is the main
domestic petrochemical investor. Major internat manufacturing process. The government has also
ional players in the petrochemical industry have a introduced incentives, such as reducing corporate
presence in Malaysia, indicating it is a healthy part tax to 25% to local- and foreign-owned companies,
of the countrys economy. These companies as well as further tax breaks for new companies.
include Dow Chemical, BP, Shell, BASF, Eastman Malaysia has also introduced the Industrial
Chemicals, Mitsubishi and Lotte Chemical Corp. Master Plan 3 (IMP3) to maintain its competitive
The US is the largest source of petrochemical ness for manufacturing and services activities. In
investment for Malaysia, followed by Japan, the relation to petrochemicals, the main strategies of
United Kingdom, Germany and Taiwan. the IMP3 include expanding existing capacities,
Partnerships have also been forged with other broadening the range of petrochemicals pro
ASEAN members, including Vietnam, Indonesia duced, intensified research and development,
and the Malaysia-Thailand Joint Development making feedstock available at competitive prices
Area (JDA) for the supply of gas. and improving links with downstream industries,
The Malaysian petrochemical sector has grown especially plastics. There are also plans to further
rapidly thanks to abundant oil and gas as integrate the petrochemical zones in Kertih,
feedstock, good infrastructure, cost competitive Terengganu, Gebeng, Pahang and Johor, as well
ness and Malaysias strategic location with close as establishing new petrochemical zones in
proximity to other Asian markets. Six gas pro Bintule, Sarawak, Gurin, Kedah, Tanjung, Pelepas,
cessing plants in Kertih and Terrengganu supply a Johor and Labuan. BASF and Petronas are in an
large proportion of feedstocks while the Penin agreement to develop a refinery and petro
sular Gas Utilisation (PGU) gas transmission pipe chemical integrated development (RAPID)
line ensures gas is transported to industries complex in Johor.
around the country. Ketih is also home to the
Petronas Petrochemical Integrated Complex. This Mongolia
links the whole oil and gas value chain, starting Mongolias abundant coal reserves the worlds
with upstream exploration to the final stage of the third largest at more than 150 billion tons have
led to the early stages of developing a coal-based petrochemical investment was called off by the
petrochemicals sector. Coal is already the main central government due to environmental con
source of fuel for the north-west Asian nation and cerns and a negative public response. It was
growing local demand for ammonia-based fer slated to include a refinery, naphtha cracker, aro
tilisers and methanol as a feedstock means that matic hydrocarbons centre, lower-stream plants
investment in coal-based petrochemical production and industrial harbour facilities. To offset the
is crucial. possible losses from cancelling this project and to
The Mongolian Governments coal policy, keep the local petrochemical sector competitive,
according to the Ministry of Fuel and Energy, aims the Taiwanese authorities have announced plans
to provide national security and sustainable dev to add value to the sector. The plans include
elopment of Mongolia by introducing economic increased spending on research and development,
and environmentally friendly clean coal techno such as centres for the pilot production of
logy and production such as coal liquefaction, new materials.
coal gasification and coal-chemical industry dev
elopment. This includes the limiting of fossil fuel South Korea
imports so that the abundant local coal deposits The South Korean petrochemical sector largely
can be fully utilised, developing transport infra serves the automotive and electronics industries.
structure, learning about petrochemical techno There has been a drop in demand for such
logy from Chinese projects and attracting more products following slowdowns in Asian and
foreign investment. European markets, but multiple companies are
In April 2012, the Mongolian government increasing investment and expanding in South
signed a Memorandum of Understanding with Korea. Aromatics are a particular area of expansion
German company ThyssenKrupp to develop a with xylenes capacity set to exceed 10 million
$2.1 billion coal-to-liquids plant. Prophecy Coal tonnes per annum by 2014.
Corporation, a Canadian company, also has signi Three companies have major expansion plans
ficant investment in Mongolias nascent coal-to- for their sites in Yeosu. Lotte Chemical Corp is
chemicals industry with projects underway in expanding production capacity for ethylene and
Ulaan Ovoo and Tugalgatai. propylene at its complex. Kumho Petrochemical is
building new Yeosu facilities scheduled to open in
Taiwan 2014. These new facilities will produce styrene
Ongoing increases in demand and rising prices of butadiene rubber, bisphenol-A, ethylene propylebe
petrochemical products have contributed to solid diene monomer (EPDM) rubber and methylene
growth in the Taiwanese petrochemical sector in dipara-phenylene isocynate (MDI). BASF is also
recent years. At the end of 2011, Taiwans increasing MDI capacity at Yeosu, as well as a new
petrochemical output was at a record-breaking polyethylene terephthalate (PET) facility at
$65.2 billion, despite challenges faced in the wake Jincheon. Increased PET production can be used
of deflation in China, the US debt crisis, weakened to meet demand from China.
global demand, expansion in the Chinese and Such expansion plans aim to overcome the
Middle Eastern petrochemical sectors, and local challenges of chronic overcapacity, low operating
occupational accidents. rates, and squeezed margins caused by rising
The sector has remained robust even after a crude prices on naphtha, all of which have
major project was aborted in 2011. The Kuo Kuang affected the South Korean petrochemical sector.
96 WPC Guide
Global summary
A number of South Korean companies have projected as new projects continue to be developed.
signed up to a global campaign designed to The West Java-based Chandra Asri petro
improve the safety and management of chemical chemical joint venture is expanding to increase
products, including petrochemicals. The signing ethylene and polyethylene production capacity
companies include Hanwha Chemical Company, and add a butadiene extraction facility. Indorama
Lotte Chemical Corp, LG, Kumho Petrochemical Ventures, a Thailand-based company, is develop
Company and Samsung Petrochemicals Company. ing a plant in Indonesia to make polyester chips
and speciality synthetic yarns, coming onstream
The Philippines in 2013. This is part of the companys bid to become
In the Philippines, there have been mixed fortunes a leading vertically integrated polyester value
in the chemical industry overall with the value of chain producer.
chemical production increasing just 0.5% in 2012. PVC producer Asahimas Chemical has increased
However, the value of plastics production rose by production at its caustic soda plant in Cilegon and
11% in the same year. Overall output for the in the fertiliser segment, PT Pupuk Kalimantan
chemical industry was at just 0.6% in 2012 but Timur (Kaltim) is building a large-scale nitrogen
plastics was up by 7% and rubber by 5.5%. fertiliser plant at Bontang, East Kalimantan. PT
Adding to the mixed fortunes in the Philippines Pupuk Sriwidjaja is planning two urea production
is a declining automotive sector, which has hap plants in East Java.
pened as a result of rising production costs, more Saudi Aramco has signed a Memorandum of
competitive regional rivals and a relatively small Understanding with Pertamina, the Indonesian
domestic market. This has hit demand for engi state oil and gas company, for an integrated com
neering plastics and rubber. However, PVC con plex in Tuban, East Java. It will designed to process
sumption is on the increase, thanks largely to a 300,000 bpd of crude oil. No completion date has
growing construction sector. yet been scheduled. South Korean company, Lotte
Trade liberalisation has increased competition Chemical Corp, will invest up to $5 billion to set up
for the Philippines with foreign resins producers a petrochemical complex in Cilegon, Banten with
and this may negatively impact on the petro completion anticipated by 2016.
chemical sector. However, there are develop Looking ahead, the Indonesian government is
ments that might prove helpful in a challenging seeking to increase investment in the local petro
commercial environment. In Batangas, JG Summit chemicals sector to reduce its reliance of imported
Holdings is building the countrys first naphtha feedstock, which cost the country more than
cracker plant and polyethylene facility. Petron, $5 billion in 2011.
meanwhile, is upgrading its Bataan refinery to
include a fluid catalytic cracker. Thailand
Thailands petrochemical industry is expanding
Indonesia with major players signing overseas acquisition
Indonesias petrochemical sector also faces challen and expansion deals, production levels increasing,
ges and opportunities in the years to come. There and two more crackers being commissioned locally,
are plans for expanding the countrys growing bringing the total number of crackers in Thailand
polymer resins sector but declining oil production up to seven. Since the 1990s, petrochemical infra
and a constrained refining base may undermine structure construction has been taking place in
future feedstock supplies. Despite this, growth is the kingdom and the sector now represents 5% of
98 WPC Guide
Global summary
Pluspetrol, which is investing $480 million in ex YPFB has also awarded a $843 million contract
ploring and developing new natural gas reserves to Samsung to build a new petrochemical fertiliser
in Perus largest natural gas block. plant in Bolivias Cochabamba province. The plant
Argentinian manufacturers are also looking to is expected to produce 650,000 tons per year of
develop biodegradable plastics to counter the urea along with an additional ammonia unit with a
depletion of oil and gas reserves for feedstock. planned output of 400,000 tons per year. Operations
are scheduled to start in mid-2015.
Bolivia EBIH, Bolivias state hydrocarbons industriali
Bolivias proven oil reserves of 209 million barrels, sation company has outlined $2.46 billion worth
as well as a claimed 391 million barrels of probable of investments in seven petrochemicals projects
reserves and 255 million barrels of possible res from 2013-2017.
erves. The country also has South Americas
second-largest proven natural gas reserve at Chile
approximately 24 tcf, according to the US Geo Chiles petrochemical sector has suffered because
logical Survey. Of this, 85% can be found in the of low-cost imports, a tough regional export
Tarija region in south-eastern Bolivia. market and a shortfall in gas feedstock. If the coun
More than half of Bolivias oil production is try is to overcome these hurdles and rejuvenate
driven by two fields Sbalo (37%) and San the petrochemical sector, the biggest challenge
Alberto (21%) and significant operators include will be addressing upstream supply constraints.
Petrobrass Bolivian subsidiary, and YPFB Chaco On the economic front, Chilean producers are
and YPFB Andina, which are both subsidiaries of also facing stiffer competition in the wake of free
the national oil company. The state-owned YPFB trade agreements (FTAs), resulting in US producers
Transporte controls most of the countrys petro increasing their market share in recent years.
leum transportation network with 2,500km of Polymer production has never been able to meet
pipelines capable of carrying crude oil, conden local demand and this trend is forecast to continue.
sate, natural gas liquids and intermediate pro Falling gas supplies resulted in an estimated
ducts, and connecting centres of production such methanol output in 2012 of around 500,000 tons.
as Cochabamba, Oruro and La Paz. CLHB S.A Methanex, Chiles leading methanol producer,
Nacionalizada, another part of the national oil says that just one in four of its plants is in oper
company, operates a further 1,500km of pipelines, ation, and that it is operating at 50% capacity. The
and an international pipeline in the north con company plans to move at least one of its plants
nects Bolivia with Chile. out of Chile by the end of 2014, which is an indi
These oil and natural gas resources point to a cation of the negative impact low levels of com
strong future for the countrys petrochemical petitively priced gas supplies are having on Chilean
sector. Bolivias state oil company, YPFB, is building petrochemical production.
an ethylene and polyethylene plant in the Tarija Overcoming feedstock supply issues will be
region as part of a $4.2 billion project to exploit critical if Chiles petrochemical sector is to recover.
natural gas output. It wil be using feedstock from Currently, Chiles ethylene production relies very
the nearby Gran Chaco liquids separation plant. heavily on napththa, which is provided by local
This $2.3 billion production plant, as well as the refineries. Naphtha provides 76% of Chiles petro
Gran Chaco plant, are slated to be operational as chemical feedstock with 16% from butane and 8%
soon as 2014. from ethane. At the end of 2011, Chiles refining
capacity stood at 226,800 b/d but a deadline for a ing a $1 billion ethylene facility. A joint venture
state-backed plan to increase the total to 300,000 b/d with Mexichem and Pemex to produce vinyl
by the end of 2008 was pushed back owing to chloride monomer (VCM) is also planned.
project delays.
Energy shortages will also have to be addressed Peru
to revitalise Chiles polymer production. A lack of Perus massive natural gas resources, concentrated
propylene feedstock has resulted in Petroquim in the Camisea gas field, mean the country has
failing to produce close to the 150,000 tpa capacity enormous potential for developing a strong
at its polypropylene plant and there are no plans petrochemical sector. These resources offer Peru
to increase capacity in the foreseeable future. the potential for at least one world scale cracker
and downstream production. Peru also expects to
Mexico attract around $53 billion worth of investment in
Mexicos petrochemical sector has potential for the energy and mining sectors over the next
growth but this will hinge on a number of factors. decade. The state news agency, Andina, has
These include: overcoming its dependence on reported that investment will be divided between
imports, introducing less bureaucratic regulations, 47 projects, 27 of which are under exploration, 11
and more investment. The Mexican government is of which have environmental impact studies app
keen to swiftly increase capacities across the roved, eight of which involve expanding existing
value chain through the involvement of the projects and one which is still waiting for
private sector, especially major foreign companies. environmental impact approval. If these oil and
In the foreseeable future, Mexico is set to gas resources can be exploited via all these pro
remain an importer of polymers. With the domes jects, Peru would be placed at a distinct com
tic market, sales of linear low-density polyethylene petitive advantage compared to many of its neigh
(LLDPE) have equalled that of low-density poly bours, which rely heavily on imported feedstock.
ethylene (LDPE) and are set to overtake LDPE, But the sector is still in its infancy because of a
because of LLDPEs higher tensile strength and lack of infrastructure and environmental approval
puncture resistance. It is most likely that Mexico for expanding gas production. There is no capacity
will have to keep importing polyolefins as LLDPE at present for production of basic petrochemicals,
capacity is not expected to rise in line with demand. such as ethylene, propylene or polymers. Currently,
However, the Braksem-Grupo Idesa project may the investment focus is on LNG exports and
help reduce the dependence on imports. This is a fertiliser production. Output is currently insuffici
joint venture between Brazils Braksem and Mexicos ent to meet domestic requirements in addition to
Grupo Idesa, and the companies have awarded a the feedstock needs of a major petrochemicals
contract to Technip, a global energy project com facility. As such, it is unlikely that Peru will see
pany. In October 2011, Technip started construc olefins and polyolefins capacity coming onstream
tion on Ethylene XXI, a $1 billion plant that will in the short- to medium term.
produce ethylene, high-density polyethylene A joint venture between PetroPeru, Brazils
(HDPE) and LDPE. This plant, which will form the Petrobras and Braskem remains at the MoU stage.
core of a petrochemicals complex, is slated for The plan is to create a facility to produce poly
completion by 2015. ethylene, but the project has been pushed back to
Negotiations have also taken place between 2016 as the investors wait for increased gas sup
Mexichem and Occidental Petroleum over build plies to make it viable.
To improve refinery profit, innovative Fluidised-bed degree of coke selectivity for optimum unit operation.
Catalytic Cracking Catalysts are needed for all Our novel in-situ manufacturing process enables us to
feedstock types and all operating objectives. Our FCC control the catalyst pore size and volume leading to FCC
portfolio addresses this need. catalysts with enhanced feedstock contaminant metal
BASF The Chemical Company, we supply chemi tolerance, and also allows us to provide the highest
cals to almost all industries; we combined economic zeolite content catalysts available in the market with
success, social responsibility and environmental the lowest fresh catalyst sodium content; high zeolite
protection; In 2012, BASF filed for around 1,170 new content and low sodium content are needed for high
patents worldwide; our commitment to innovation conversion, coke selective cracking, and to provide
enables us to continually provide improved products inherent vanadium tolerance in residual feedstock
and solutions to all our customers. processing. In the area of residual feedstock process
BASF is a market leader in Catalysts and has the ing, we use our unique FCC Catalyst Platforms to pro
strongest portfolio in the market that includes cata vide balanced zeolite and matrix activity to maximize
lysts, materials and services. Our portfolio includes bottoms upgrading and conversion; to meet your needs,
Chemical Catalysts, Refinery Catalysts, as well as, we can provide high, moderate and low Z/M catalysts.
Mobile Emissions Catalysts, Battery Materials, Precious Examples where weve helped improve refinery profit
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Our growing Refining Catalysts business is a global sion PhinesseTM catalyst shows the same yield select
player with manufacturing, R&D and technical service ivities as market leading NaphthaMax III catalyst,
supporting our customers. Recent developments to with better coke selectivity resulting in higher gasoline
support our strategy include, for example, commission yields2; commercial trial of new AegisTM catalyst for
ing a new FCC circulating riser pilot plant in our R&D residue feedstock, which combines benefits of leading
facility in Iselin, New Jersey, USA; announcing a three- technology platforms to offer maximum product flexi
year global FCC catalyst supply and development bility leading to profit improvement of up to $1.2/bbl3;
agreement with Shell; and the construction of a new European trial of our newest FortressTM catalyst for resi
FCC catalyst testing and research laboratory in due feedstock reduced catalyst consumption by around
Heidelberg, Germany in partnership with hte. 10% with improved coke selectivity and bottoms up
To improve refinery profit, innovative Fluidised-bed grading4. Our success in commercial trials is enabled by
Catalytic Cracking Catalysts are needed for all feed our innovative FCC Catalysts, supported by our com
stock types and all operating objectives. Our FCC port plete portfolio of Additives and Solutions, industry lead
folio addresses this need. We have developed unique ing technical and logistic services. BASFs new Catalyst
FCC Catalyst Platforms1 to upgrade all feedstock types Change Management Process is a unique process that
to distillate and naphtha. Our Maximum Olefin Additive addresses all trial risks and delivers great results.
and Maximum Propylene Solution convert naphtha We invite you to contact us to discover how we
olefins to propylene. Using, for example, our award- can help improve your refinery profitability using
winning Distributed Matrix Structures platform with innovative FCC Cracking Catalysts and Solutions.
over 150 commercial successes and growing, we have
2 A.S. Shackleford et al. Rare Earth Alternative The Use of PhinesseTM FCC
improved selectivity to valuable products with a high Catalyst at Shell Sarnia, AM-13-02.
3 Y.-J. Jollien et al. Use an innovative cracking catalyst to upgrade residue
1 BASFs unique FCC Catalyst Platforms include DMS (Distributed Matrix feedstock, Hydrocarbon Processing Feb 2013.
Structures), Prox-SMZ (Proximal Stable Matrix and Zeolite) and MSRC (Multi 4 V. Vergopoulos, Profit Improvement in FCC Units using Innovative Cracking
Stage Reaction Catalysts). Catalysts, Middle East Downstream Week 2013, 12-15 May 2013.
limiting factors love
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Catalysts
Co-Catalysts
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Services and Solutions
www.catalysts.basf.com/refining
Contact us
Vas Vergopoulos, Refining Catalysts, EMEA,
vas.vergopoulos@basf.com
Ben OBerry, North & Central Europe,
benjamin.oberry@basf.com
Stefano Riva, Southern Europe and Middle East,
stefano.riva@basf.com
Vasil Bozukov, CIS and Russia,
vasil.bozukov@basf.com
The future of the petrochemical industry
for fuels, and regulations limit the amount of Other bio-based intermediates now close to
benzene and other materials that can be blended commercialisation enable the production of
into gasoline. rubber, paints and coatings, adhesives, insulation
Natural Gas Liquids (NGL), a by-product of pro materials, detergents, solvents and fibres which
cessing wet natural gas, were first used in the are wholly or partly bio-based. Several bio-based
USA in the 1970s as a low-cost feedstock for plastics are already in the market, the largest
ethylene. Plants were also built in Western Canada being polylactic acid (PLA) which is expected to
and the Middle East to utilise locally available replace oil-based plastics in more than 10% of
NGLs but steam cracking NGLs produces no packaging applications within 15 years.
propylene, only ethylene.
In the past few years, there has been a surge in Future trends
production of unconventional gas. In North America, The use of petrochemicals will continue to grow
the abundant supply of shale gas has caused a at or above GDP rates. The only alternatives to
drop in the market price of gas, which has driven petrochemicals are chemicals which are identical
producers to seek customers for NGL. As a result, a or functionally similar, produced from other fossil
number of new ethylene plants to refine shale gas fuels or plant matter. The big trends relate to
NGL are under construction. changes in feedstock, processing and products
The proportion of ethylene produced from NGL which are expected to result from making the
is expected to increase slightly as these new ethy industry more sustainable.
lene plants come on stream. These new plants will To date, predictions of peak oil were wrong.
produce no propylene, and some naphtha crackers However, peak cheap oil occurred at the time of
now producing propylene may not be able to the invasion of Iraq and we are now in an era of
compete. Since propylene demand is projected to hard to get oil. According to the BP Statistical
continue to grow faster than ethylene, this will Review of World Energy, June 2012, world crude
lead to continuing tightness in the propylene oil consumption increased by about 1.6% pa since
market and the need for new propylene capacity. 1986, which is well below growth in global GDP.
Propylene demand is an important driver for But in recent years, all net growth came from
the increase in the number of methanol-to-olefins emerging economies in Asia, South and Central
(MTO) plants, for which the feedstock is syngas America, and the Middle East, offsetting declines
from gasification. Most of these plants are in in Europe and North America.
China and based on coal gasification, but we can Nobody knows how long fossil fuels can last,
expect to see new gasification plants in Europe. but concerns about carbon footprint and the
The EU plants will be based on biomass, or wood potential for disruptions in the oil supply chain
or food waste. are leading to future-proofing strategies for the
Gasification of biomass and bio-waste is one supply chain by reducing oil dependence. The
way in which plastics and petrochemicals pro most important trend is the growing use of
ducers are expected to future-proof the supply feedstocks derived from bio-resources and from
chain and reduce dependency on fossil fuels. shale gas and coal.
Another strategy is fermentation of plant materi Another trend is more sustainable processes
als to produce ethanol which is then converted to for producing petrochemicals, such as using novel
bio-ethylene. Braskem in Brazil is already pro catalysts to reduce energy requirements and car
ducing bio-PE by this route. bon footprint. Another approach is green chemi
stry, a philosophy of chemical research and en printed and metallised, ready-meal trays which
gineering focussed on products and processes are contaminated with food residues, and auto
that minimise the use and generation of hazard mobile trim which is made from multiple materi
ous substances. als. For these products, the best end-of-life option
Gasification enables more efficient conversion is energy recovery. When bio-based content be
of fossil and bio resources into energy and petro comes much more valuable than a petro-derived
chemicals, and facilitates carbon capture and stor product, the energy recovered is renewable un
age to reduce or eliminate CO2 emissions. like the petro-derived materials, as there is no net
Finally, the market is starting to see new bio- gain of CO2.
based products that are as cost-effective as oil- In the 21st century, petrochemicals will con
based products. This was not the case for the first tinue to play an irreplaceable role. If the industry
generation of bio-based plastics, which were often can satisfy stakeholders concerns about the sus
inferior to oil-based plastics, and more costly. Typi tainability of the supply chain and end-of-life
cally, they were sold as green products that could disposal of plastics, its reputation can improve to
be composted after use, which might not be use the point where society looks to the chemical
ful for durable products, such as phone casings. industry for answers to the major challenges of
In future, most plastics will still be based on oil, sustainable development.
but bio-based plastics will steadily gain market
share. The most attractive applications for bio- Peter Reineck provides consultancy services for
based plastics will be those in which recycling is chemical industry clients. He also founded Nuplas
not feasible, such as film packaging which is often Limited www.nuplas.eu to produce PLA.
100 100
Asia Pacific
Africa
Middle East
Europe & Eurasia 90 90
S. & Cent. America
North America
80 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
86 91 96 01 06 11 0 86 91 96 01 06 11 0
Figures 3 and 4.
Naphtha The collective name for any of the Petroleum coke Often abbreviated to
highly volatile flammable liquid mixtures of petcoke or pet coke, this is the carbonaceous
hydrocarbons which are distilled from petroleum, solid derived from petroleum during a
coal tar and natural gas. Naphtha mixtures are refining process.
commonly used as solvents, fuel and to make Petroleum oil Any light hydrocarbon oil that is a
various chemicals. distillate of petroleum. It has a wide range of uses
Natural gas A fossil fuel. Natural gas is a including cosmetics, preservatives, medicines,
mixture of naturally occurring hydrocarbon gases cleaning and industrial lubrication. Also known
and it is primarily used a fuel and for making as mineral oil.
organic compounds. Deposits are found beneath Plastic A broad term describing any of a large
the Earths surface. Methane is the primary number of synthetic (usually organic) materials
component of natural gas but it also contains that have a polymeric structure and can be
varying quantities of ethane, propane, butane moulded while soft and and then set. In its
and nitrogen. finished state, a plastic might contain plasticiser,
Olefins Primary petrochemicals which include stabiliser, filler or pigments. See also, thermo
ethylene, propylene and butadiene. These are setting plastic and thermoplastic.
unsaturated molecules of carbon and hydrogen Plasticiser A substance added to plastic to make
that appear as short chains of two, three or four it more pliable.
carbons in length. Olefins are produced by Polymer A compound, either naturally
steam-cracking natural gas liquids. Also known occurring or synthetic, that has large molecules
as alkenes. made up of many relatively simple repeated
Organic Chemical compounds that contain units (see monomer). All plastics are examples
carbon atoms bonded to other carbon of polymers. A common example of a synthetic
polymer is Perspex. Naturally occurring oil and other industrial processes. The Claus
polymers include DNA, tortoiseshell and process is the most significant gas desulfurisation
cellulose in trees. Major polymer products process. It involves a series of high-temperature
include PVC and polystyrene (derived from reheating processes.
ethylene) and polypropylene (derived Surfactant A surface-active agent, the basic
from propylene). cleaning agent of petrochemistry.
Polymerisation The chemical process that Synthesis gas A mixture of carbon monoxide
combines several monomers to form a polymer and hydrogen. This is mainly used in chemical
or polymeric compound. synthesis to make hydrocarbons.
Propane A colourless gas which is found in Synthetic Produced by synthesis, not of
natural gas and petroleum. Widely used as fuel. natural origin.
Its chemical formula is C3H8.
Synthetic fibres Manufactured fibres, the most
Propylene (C3H6) A three-carbon, flammable common of which are polyester, a combination
gaseous molecule containing a double-bond. of ethylene glycol and terephtalic acid (made
Propylene is an olefin frequently used in organic from xyklene); and nylon, which has benzene
synthesis. It is a base chemical used to make as its most important raw material. See also,
polypropylene fibres which are commonly used acrylic fibres.
in carpets and clothing.
Thermal cracking A petroleum refining process
Refinery An industrial plant where a crude that decomposes, rearranges or combines hydro
substance, such as crude oil, natural gas or coal, carbon molecules using the application of heat,
is purified so it can then be turned into more without the use of catalysts.
useful products.
Thermoplastic A synthetic plastic or resin, such
Reformate See Catalytic reforming and as polystyrene, that becomes soft when heated
conversion. and re-hardens on cooling without any
Solvent A substance, usually liquid, which is appreciable change of properties.
dissolved with another substance to form a Thermosetting plastic A plastic that hardens
solution or is capable of dissolving another permanently after one application of heat and
substance. pressure. Once hardened, a thermosetting plastic
Solvent extraction A method used to separate cannot be remoulded.
compounds based on their relative solubilities in Toluene A liquid aromatic hydrocarbon with a
two different immiscible liquids, usually water benzene-like structure. However, it is less
and an organic solvent. Also known as liquid- flammable, toxic and volatile than benzene. It is
liquid extraction and partitioning. used in organic synthesis as a solvent and an
Steam cracking The high-temperature cracking anti-knock agent in gasoline.
of petroleum hydrocarbons in the presence of Wax A natural, oily or greasy substance consist
steam as part of the petroleum-refining process. ing of hydrocarbons or esters of fatty acids that
Steam cracking is the main industrial method are insoluble in water but soluble in non-polar
used for producing olefins. Also referred to as organic solvents, such as benzene.
steam-assisted thermal cracking.
Xylene A major aromatic feedstock usually
Sulfur recovery The process whereby gas is obtained from petroleum or natural gas disti
desulfurised. Sulfur can be recovered from raw llates. Used in the manufacture of plastics and
natural gas and by-product gases containing synthetic fibres as a solvent, and in the blending
hydrogen sulphide derived from refining crude of gasoline.
Acknowledgements