The Global Petrochemical Industry · 2019-02-19 · Slide Title Area New propylene capacity by region (Top Margin of Body Text Bottom Margin of Body Text ... 2-Ethylhexanol 3% Butanols

The Global Petrochemical Industry:

Understanding the Complex Interactions Between Technology, Economics and Markets

Online Training

Manuel Asali

Vice President

[email protected]

Copyright © by Nexant Inc. 2019

All rights reserved

Propylene and derivatives

Section 3

Propylene

Section 3 Module 1

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Like ethylene, propylene’s double bond enables

polymerization, hydroformylation, epoxidation

CH3 CH2 CH

Polypropylene

Oxo alcohols

Cumene

MMA

Propylene oxide

Epichlorohydrin

Acetone/IPA

Acrylonitrile

Acrylic acid

Acrolein

Acrylamide

Allyl Chloride

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Propylene and ethylene price differential

P/E Contract Price Ratio Evolution

Source: Nexant

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

P/E

Pric

e R

atio

NW Europe US Gulf Coast

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

P/E

Pric

e R

atio

NW Europe US Gulf Coast

C2= prices collapse in the US

while C3= still expensive

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What about the other regions of the world?

Regional Propylene Supply Sources, 2018

0

10

20

30

40

50

60

70

North America South America Western Europe Middle East Asia Pacific

Mill

ion

tons

Steam Crackers Refinery OPP

Source: Nexant

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On-purpose propylene technologies

Propane Dehydrogenation (PDH)

Olefin Metathesis

Olefin Interconversion (Olefin Cracking)

Enhanced Catalytic Cracking

Methanol to Olefins (MTO/MTP)

“Green” Propylene

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Propane dehydrogenation is simple in concept but

difficult to carry out

High Temperatures

Low Pressures

Endothermic

Fairly capital intensive

CH3CH2CH3 CH3CH=CH2 + H2

Catalyst

Propane Dehydro Plants in the World represent

5% of Global Propylene Capacity

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Olefin metathesis is as a way to increase propylene output from

crackers

CH2=CH2 + CH3CH=CHCH3

2 CH3CH=CH2

Ethylene Ethylene Butene

Propylene

Lyondell has operated such a plant since 1985, now Lummus

is the leading licensor of metathesis technology

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Ways to increase propylene output in a naphtha

cracker

Metathesis Olefin Interconversion

Steam

cracker

Naphtha

Metathesis

C2=

C3=

C4S

C3=

Naphtha

Olefin

Interconversion

C2=

C3=

C4S C3=

BTX

Pygas

Steam

cracker

Aromatic

Extraction

C5S

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MTO – new paradigm for olefins production?

Catalyst – Zeolite

SAPO-34 model

Source: UOP and DOI: 10.1021/acscatal.5b00007

Methanol (CH3OH) Olefins + water + side products

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Major Chinese coal to olefins (CTO) projects

up to 2015

Location of Coal to Olefin Plant Hainan

Xinjiang

Qinghai

Tibet

Gansu

Sichuan

Yunnan Guangxi

Fujian

Henan

Guangdong

Ningxia

Inner Mongolia

Heilongjiang

Jilin

Liaoning

Hebei

Tianjin

Zhejiang

Anhui

Jiangsu

Shandong

Shanxi

Beijing

Shanghai

Hunan

Hubei

Guizhou

World’s first:

Shenhua Group – Baotou

(2010),

300kta PE & 300kta PP

6. Baofeng Energy

(2014), Yinchuan,


7. Shenda Chemicals

(2014), Tengzhou,

200kta PP, 100kta EVA, 120 EO

5. ChinaCoal

(2014), Yulin,


3. Wison Clean Energy

(2013), Nanjing,

300kta PE/PP

4. Yanchang Group

(2014) – Jingbian,


8. Pucheng Clean Energy

(2014), Pucheng,


9. Zhejiang Xingxing

(2015), Jiaxing,


Chongqing

Jiangxi

2. Fund Energy

(2013), Ningbo,

300kta EG & 400kta PP

Shaanxi

Source: C&EN

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New propylene capacity by region (2018-2020)

By region

By technology

New propylene capacity = 13.7 million metric tons

MTO/MTP 20%

PDH 25% Steam

Cracker 39%

FCC 16%

Metathesis 0%

Asia Pacific 79%

Middle East 9%

Africa 8%

Eastern Europe

3%

Central Europe

1%

Source: Nexant

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Leading global propylene producers, 2018

(chemical and polymer grade)

Top 10 represents 28 percent of global capacity

0

1000

2000

3000

4000

5000

6000S

inop

ec

Pet

roC

hina

Dow

DuP

ont

Exx

onM

obil

She

ll

Tot

alP

etro

chem

ical

s

Ent

erpr

ise

Rel

ianc

e

For

mos

aP

etro

chem

ical

SA

BIC

Tho

usan

d to

ns p

er y

ear

Steam Cracking Refinery Metathesis PDH MTOSource: Nexant

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Propylene net trade (thousand metric tons)

Eastern Europe

North America

South America

Western Europe

Middle East

Asia Pacific

Source: Nexant

(564)

(140)

(689) 233

367

102

179

(86) (280)

131 41

304

164

399

836

(304)

(44) (119)

2008 2013 2018

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Global propylene consumption, 2018

Source: Nexant

Global Demand = 107.3 Million Tons

Polypropylene 66%

Propylene Oxide

7%

Acrylonitrile 6%

Acrylic Acid 4%

Cumene 4%

2-Ethylhexanol 3%

Butanols 3%

Isopropanol 1%

EPDM 1% Others

5%

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Documents

The Global Petrochemical Industry · 2019-02-19 · Slide Title Area New propylene capacity by region (Top Margin of Body Text Bottom Margin of Body Text ... 2-Ethylhexanol 3% Butanols