INTRODUCTION TO PETROCHEMICALS

1. INTRODUCTION TO PETROCHEMICALS

2. Module-1What are Petrochemicals?

3. What are Petrochemicals • A “petrochemical” is any chemical derived, directly or indirectly from petroleum or natural gas or obtained from hydrocarbons and utilized in industrial & household markets(.) • Starting material, also called raw material, undergoes chemical transformation, using heat or a catalyst wherein desired product as well as by-products are obtained in special equipment called reactor(.)

4. What Are Petrochemicals. • The finished product is separated from the rest employing unit operations, like distillation, crystallization, centrifuging, drying, etc(.) • The product is then stored, its quality checked, and if found suitable, packed for sale. The by-products are also useful materials, which find applications(.)

5. What are Petrochemicals • Petroleum Ref., petrochemicals---- Polymer is a chain in real sense and the three industries should think in brotherly unision(.) • If there is any dislocation in one of the segments, the whole chain or cycle feels the tremer(.) • Petrochemicals like Ethylene, Propylene and Benzene are converted to a multitude of Intermediate and products on large scale throughout the world(.) • Alcohol based chemicals, 1999 ---By A.K. Das

6. What are Petrochemicals • Most organic chemical products. • Compounds or elements derived from Petroleum/NG • Organic Chemicals • Same composition , structure and properties as corresponding non petroleum derived sources.

7. Is Asprin a PC? • Likely that same C-atoms and H-atoms comes from petroleum/NG. • Yet it is not a PC. • PC made on large scale. • Phenol and acidic anhydride are PC and aspirin derived from them is not.

8. What large scale mean? • Roughly it means plant capacities > 10,000 t/a. • C2,C3 and Benzene converted to a multitude of intermediate and products on large scale throughtout the world. • 95% of total organic chemical manufacture is presently based on petroleum and NG.

9. Share of Crude Oil (CO) • Only 8% of world production of (COI) for manufacture of PC. • USA 5% of petroleum used as raw material for chemical manufacture.

10. Are PC by products of Refining ? • Part of chemical Industry. • Uses same products of refining as raw material. • Two separate organizations. • Need of Hour.

11. Evolution • Prior 1919, organic chemicals manufactured from coal ,wood and agricultural raw material. • Resources enough to meet the small demand of organic chemicals .. • Demand became large with progressive civilization. • Availability of agricultural raw material like cotton, rubber, sugarcane dependent on natural phenomena.

12. Evolution • Inadequate supply of raw material of vegetable origin prompted search for alternative source. • Lead to the birth of synthesis organic material as substitute for natural essential commodities.

13. Growth • Due to advantage of synthetic chemicals on natural material their demand grew. • 1918 Petroalcohol process for Making isopropyl alcohol from propylene Obtained from petroleum refining. • 1925 TEL from petroleum E.I du Pont De nemours and Co, USA invention. • 1926 CH3OH, CH3CHO and HCHO synthesised from petroleum sources.

14. Growth • World war II helped the Industry. • Demands for explosives, natural rubber substitutes and other chemicals led to the development of synthetic ammonia. HNO3 • Ammonia Nitroglycerin explosive Toluene (TNT) • Styrene for SBR (Known as Govt. rubber Synthetic (GRS) from petroleum.

15. Growth • The remarkable growth could be judged by from the following • 1930 10 Petrochemicals • 1940 35 Plants • 1951 94 Plants • 1957 372 Petrochemicals Plants

16. GrowthSpecific Product • Plastic , rubber and synthetic fibre --------Second largest petrochemicals volume today. • Growth of Petrochemicals and discoveries made in polymer field interrelated. • Discovery of Zeigler- Natta Catalyst for low pressure polymerization of olefins acted as a great stimulant for dev. of ethylene production technology from petroleum hydrocarbon feed stocks.

17. New Vistas • Zeigler-Natta responsible for stereo specific polymerization. • Synthetic Rubber Industry-Helped growth >Polybutadiene (PBR) >Polyisoprene Rubber (PIR) • Large demand of PBR and PIR helped growth of Industry. • High purity Terephthalic acid directly from p-xylene oxidation (A breakthrough reaction). • Demand for polyester Fibers augmented.

18. Then Remarkable Process • SOHIO process for propylene ammoxidation to acrylonitrile. • An example how demand for a cheap monomer in polymer industry led to the spectacular advances in petrochemical technology.

19. KEY Petrochemicals • Propylene---Polypropylene • Chemicals >Cumene, acrylonitrile, Propylene oxide >Isopropyl Alcohol >Oxo aldehyde >Oxo Alcohols and Acrolin

20. Conventional Technologies • Steam cracking (Mainly thermal cracking product gas rich etc). • Feedstocks steam cracking. >Ethane Propane. >Naptha –Better feed stock. >Gas oil. • By product of conventional FCC.

21. Estimation • 1 MMTPA capacity conventional FCC unit of Indian refineries would produce 25 to 31TPA of propylene depending on Catalyst and process conditions. • This order of production is insufficient for large scale propylene plant.

22. Steam Cracking • Short residence time. • Improved coil geometeries. • On line decoking. • Inspite of these improvements did not result in yield improvements in respect of Propylene.

23. Modern Technologies • Emerging FCC option DCC and NRCC , ZSM-5. • Catalytic dehydrogenation (Endothermic) oleflex (UOP). • Catofin (ABB lumus) star (Phillips Petroleum) FBP-4 (Snamprogetti SPA). • Oxidative Dehydrogenation. • Oxidative coupling of Methane. • Methanol to olefin MTO (UOP).

24. Overview of Petrochemical Industry • The global chemical industry is reported to be valued at $360 billioni.e., 6% of global GDP and the share of petrochemicals is placed at 40%. • In the last couple of decades, India has progressed very well in the field of petrochemical production.($9 billion PC industry). • World scale capacity plants have been established based on the latest technologies available.

25. Overview • Safety records commendable . • Several downstream plastics processing industries and polyester fibre/filaments set up . • Capacity has exceeded domestic demand. • The quality of the products meets the international standards and finds overseas markets.

26. High Growth Rate • High growth in consumption of petrochemicals in India, estimated to be 12 to 14 per cent per year. • Indian consumption is well below the world average. • For instance, the per capita consumption of plastics is only 3.6 kg. While the world average is 17.5 kg. • Synthetic fibre 1.8kg Per capita compared to world average of 3.8kg. Required=12 kg per person

27. Market Variations • The prices of petrochemical products fluctuate in a cyclic manner in the international markets over a span of 3 to 4 years. • In the Indian context, petrochemicals flourished under the dual protection of high tariff and the license-raj until liberalization started in the ‘90s. • Capacity ceilings were removed, industrial licensing made redundant and clear road map on tariff reduction was spelt

28. Market Variations • Ubiquitous: • (plastics are everywhere). • Capital intensive. • Cyclical (prone to bouts of over expansion). • High volume cheap price (a true commodity) • Closely linked to consumer goods (packaging, toys, electronics, apparel, paints, autos, housing)

29. Market variations. • Driven by oil & gas • Opaque market • Diverse • (Market is fragmented into small niche sectors) • But there is a clear Core (Aromatics, Olefins, Polymers)

30. Prices Impacted by Multiple Factors Related Markets Unexpected Weather Upstream Markets Price Demand Supply Plant Expansion Downstream Markets The Economy

31. Plastics: the main end uses for Petrochemicals Polymers 172-mil t 2006 Global Petchem Output = 325 million mt

32. Capacity Of Production • Capacity of petrochemical production in India stands at 8 million tones with an asset base exceeding Rs.70,000 crores including downstream processing to finished goods. • In the 11th five-year plan period, the total investment planned for the industry was above Rs.72,000 crores. About 25% of the total domestic production is envisaged to be exported.

33. Applications • Commodity plastics have found large-scale applications in agriculture, horticulture and floriculture. • Performance polymers are the cost-effective substitutes for metal, wood and glass in aviation and white goods industry.

34. Applications. • They also find many new applications in medical, electrical, electronics and telecommunication sectors employing advanced technologies and enhancing safety and reliability factors. • In the recent times, engineering plastics have found novel applications through new material developments and designs.

35. Value Addition • Starting from crude oil or natural gas which is the basic hydrocarbon to produce petrochemicals, a large variety of end-products are marketed at much higher prices. • This phenomenon adds more value to the products in relation to the basic feedstocks.

36. Value Addition • Taking an example value of Crude oil at (say) $27/ barrel (or $115/tonne) when fractionated gives naphtha as one of the streams. • Naphtha is produced at $125/tonne, i.e., nearly1. 5 times higher than crude oil.

37. Valorization • Naphtha on cracking produces ethylene and the latter is priced at $ 275 to 300/ tonne. Polyethylene is produced from ethylene and it costs $ 425 to 450/ tonne • Thus in ultimate analysis there is a large amount of value addition taking place starting from crude oil to end polymers.

38. Economics Of Scale • When the market demand for the petrochemicals was low in India say in the 1970s, the capacities of the plants were small. • NOCIL naphtha cracker built in early 60s had 60,000 tpa ethylene capacity and IPCL’s cracker built in 1978 has 130,000 tpa.

39. Plant Size • Cracker of IPCL built in 1989 has 300,000 tpa ethylene capacity. • A world scale ethylene plant capacity is 300,000 tpa which is minimum economic size. • Reliance has set up the naphtha cracker of 750, 000 tpa ethylene capacity

40. Capital Cost Of PC Plant • There is no doubt that the capital cost of the petrochemical plant increases with plant capacity. • The normal cost relation is (PC1/PC2)=(C1/C2)**0.6, where PC1, PC2 are different plant capacities and C1 and C2 are capital cost of the corresponding plant capacities respectively. • In shorts the cost of production diminishes with higher plant capacity.

41. Development OF Indian Petrochemical Industry • Development of Indian petrochemical sector has emerged successfully over the last three decades. • To start with private sector established plants of small capacities in the 60s. • In the 70s IPCL in public sector established the integrated petrochemical complex under one roof at Baroda.

42. Development • It also gave boost to Research and Development in the relevant field. Later in late 80s IPCL built a world capacity gas cracker complex. • In the private sector reliance established polyester/aromatics complex and later a very large capacity naphtha cracker complex at Hazira. • In the 90s IPCL, GAIL and Haldia Petrochemicals commissioned three more cracker complexes.

43. Development • During the last two /three decades several downstream plastics processing industries and polyester fibre/filaments are set up and their capacity has exceeded domestic demand. • Thus India has now entered export market in petrochemicals.

44. Classification of Petrochemicals MODULE - 2

45. CLASSIFICATION OF PETROCHEMICALS FIRST GENERATION PETROCHEMICALS SECOND GENERATION PETROCHEMICALS THIRD GENERATION PETROCHEMICALS

46. FIRST GENERATION PETROCHEMICALS : • Chemicals directly available from petroleum crude or natural gas either by fractionation, isomerization, cracking. • Represent the basic petrochemicals which are the building blocks for various chemical synthesis.

47. Examples of First Generation Petro chemicals: • Methane, Ethane, Propane. • Ethylene, Propylene, Butylenes, Acetylene Butadiene. • Aromatics such as Benzene, Toulene, Xylenes. • These can be sub grouped as aliphatic, olefins, acetylene, dienic, naphthenic and aromatics basic petrochemicals.

48. Refinery Streams to Petrochemicals

49. Refinery Streams For Petrochemicals/ Chemicals PROPYLENE BUTENE, BUTANE PETROCHEMICALS /CHEMICALS CRACKED LPG PETROL NAPHTHA FERTILIZERS HAN POWER PLANTS LAN PETROCHEMICALS/ CHEMICALS AROMATICS REFINERY ETHYLENE PROPYLENE BUTADIENE NAPHTHA CRACKER PETROCHEMICALS/ CHEMICALS PETROCHEMICALS/ CHEMICALS KEROSENE N-PARAFFINS FUEL

50. SECOND GENERATION PETROCHEMICALS: • Not present as such as petroleum or crude oil. • Cannot be obtained by simple operations such as reforming, cracking or hydro cracking. • Derivatives of first generation petrochemicals. • Second generation petrochemicals constitute the intermediate chemicals constitute as the raw materials for consumer products like plastic, rubbers, fibers, dyes etc.