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Report 29H
Ethylene via Ethane Steam Cracking
By Anthony Pavone
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By Anthony Pavone
December 2014
Abstract
The widespread commercialization of hydraulic fracturing (fracking) combined with horizontal drilling in
hydrocarbon containing shale formations has resulted in an enormous increase in natural gas and natural
gas liquids (ethane, propane, butane) production, as well as the production of petroleum condensate (light
crude oil). Although these processes have been initially commercialized in the US and Canada, other
regions of the world will soon (as of 2014) receive the same low cost hydrocarbon economic benefits,
either through the importation of natural gas liquids from the US, or hydrocarbon production from their
own domestic shale formation reservoirs.
Globally, nearly half of ethylene production is based on light naphtha steam cracking (liquids cracking),
where the light naphtha is priced at nearly parity with crude oil ($US 100/bbl in 2014). Natural gas liquids
produced via fracking are sold in 2014 at 4–8 $US/MM-Btu , equivalent to an oil price of $US 22-44/bbl,
providing an enormous feedstock cost advantage for producing ethylene via steam cracking. The
downside is that natural gas liquids steam cracking (gas cracking) produces a smaller amount of the
heavier by-products (butadiene, isobutylene, n-butenes, pyrolysis gasoline) used in derivative
petrochemicals production.
Where fracking is widespread (in 2014 predominantly in the US and Canada), chemical operating
companies have announced significant grass roots projects to build world-scale ethylene steam crackers
(gas crackers) that are designed to feed these low cost shale derived feedstocks, in order to capture the
cost advantage of natural gas liquids production from shale reservoirs. This report presents current
commercial process technology, and the corresponding production economics, for a) producing ethylene
via 100% ethane steam cracking, b) producing ethylene via 50:50 ethane:propane steam cracking, and c)
producing ethylene via 100% n-butane steam cracking.
Contents
1. Introduction ............................................................................................................................................... 1
Process safety considerations .................................................................................................................... 2
Historical background ............................................................................................................................... 2
2. Summary ................................................................................................................................................... 4
Introduction ............................................................................................................................................... 4
Process design cases .................................................................................................................................. 4
Process safety consideration...................................................................................................................... 5
Ethylene industry status ............................................................................................................................ 5
Chemistry and process technology for commercial ethylene production.................................................. 8
Production economics ............................................................................................................................. 14
Tables
Table 2.1: Ethylene physical properties ........................................................................................................ 9
Table 3.1: Historic and forecast GDP rates................................................................................................. 17
Table 3.2: Ethylene product grade specifications ....................................................................................... 18
Table 3.3: Project specifications for ethylene purity .................................................................................. 19
Table 3.4: Project specifications for propylene purity ................................................................................ 20
Table 3.5: 2014 Distribution of global ethylene production by feedstock & technology (kty) .................. 28
Table 3.6: 2014 Distribution of global ethylene capacity by region ........................................................... 29
Table 3.7: 2014 Distribution of global propylene production by source (kty) ........................................... 30
Table 3.8: 2014 Distribution of global propylene capacity by region (kty) ................................................ 31
Table 3.9: 2014 Ethylene producers by country and region (kty)............................................................... 32
Table 3.10: 2014 Ethylene largest producers by aggregate capacity (kty) ................................................. 42
Table 3.11: Recently announced steam cracker projects (kty).................................................................... 42
Table 7.13: Total production cost estimate in PEP YEARBOOK format ................................................ 232
Table 8.1: Design basis table .................................................................................................................... 233
Table 8.2: Overall yield pattern ................................................................................................................ 235
Table 8.3: Once through steam cracking yield pattern ............................................................................. 235
Table 8.4: Stream by stream material balance .......................................................................................... 265
Table 8.5: Overall material balance summary .......................................................................................... 236
Table 8.6: Equipment list with duty specifications ................................................................................... 237
Table 8.7: Total fixed capital cost estimate .............................................................................................. 241
Table 8.8: Variable production cost estimate............................................................................................ 243
Table 8.9: Total production cost estimate ................................................................................................. 244
Table 8.10: Total production cost estimate in PEP YEARBOOK format ................................................ 245
Table 9.1: Design basis table for normal butane steam cracking.............................................................. 246
Table 9.2: Overall yield pattern ................................................................................................................ 247
Table 9.3: Once through yield pattern for steam cracking normal butane ................................................ 248
Table 9.4: Stream by stream material balance .......................................................................................... 273
Table 9.5: Material balance summary ....................................................................................................... 249
Table 9.6: Equipment list with duty specifications .................................................................................. 250
Table 9.7: Total fixed capital cost estimate .............................................................................................. 254
Table 9.8: Variable production cost estimate........................................................................................... 255
Table 9.9: Total production cost estimate ................................................................................................ 256
Table 9.10: Total production cost estimate in PEP YEARBOOK format ............................................... 257
Figures
Figure 2.1: Ethylene integrated product chain diagram ................................................................................ 6
Figure 2.2: Global historical annual demand for ethylene ............................................................................ 7
Figure 2.3: Global historical annual demand for propylene ......................................................................... 7
Figure 2.4: US Historic ethylene contract prices .......................................................................................... 8
Figure 2.5: Steam cracking yield on selected feedstock ............................................................................. 10
Figure 2.6: Conventional steam cracking process configuration ................................................................ 11
Figure 2.7: Block flow diagram for 100% ethane steam cracking.............................................................. 12
Figure 2.8: Total fixed capital cost estimates ............................................................................................. 13
Figure 2.9: Unit feedstock consumption to produce ethylene..................................................................... 13
Figure 2.10: Unit production cost estimate ................................................................................................. 14
Figure 3.1: Steam cracking yield on selected feedstock ............................................................................. 16
Figure 3.2: Ethylene integrated product chain diagram .............................................................................. 21
Figure 3.3: Distribution of ethylene uses .................................................................................................... 22
Figure 3.4: Distribution of propylene uses.................................................................................................. 23
Figure 3.5: Global distribution of butylene uses ......................................................................................... 24
Figure 3.6: Global historical annual demand for ethylene .......................................................................... 25
Figure 3.7: 2014 Global geographical distribution of demand for ethylene ............................................... 25
Figure 3.8: Global historical annual demand for propylene ....................................................................... 26
Figure 3.9: 2014 Global geographical distribution of demand for propylene............................................. 26