World Petroleum Council Guide Petrochemicals and Refining

www.world-petroleum.org World ENGINEERING & CONSTRUCTION, Outstanding solutions for the biggest Oil & gas challenges Petroleum 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. Council 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. Guide ONE WORD, ONE WORLD Skills, Assets, Innovation, People, Environment, Market. Petrochemicals and Refining

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spm_adv10_148x210.indd 1 09/04/13 14:45 continues today with the licensing of the more environ­ Saipem: 60 Years of Achievements mentally friendly ETBE. l The design and construction under turnkey contractual schemes, innovative for Alberta, Canada, of two in Refining, Petrochemical and hydrotreating complexes for Canadian Natural Resources Ltd. to produce synfuels from oil sands (Horizon Project, phases 1 and 2). Fertiliser Plants l Most recently the design and construction on an entirely modular basis of the expansion of Staatsolie’s Tout Lui Faut Refinery in Suriname. All this in addition to the design and execution of equally Saipem has a long and articulated history of designing and important but more traditional projects, such as the aromatics building new refineries, petrochemical and fertiliser plants, complex, currently in progress, for the Rabigh II project in Saudi based on proprietary as well as on top-of-the-line third-party Arabia, for the Saudi Aramco-Sumitomo JV. technologies. This history originates in the 1950s with Almost since its earliest days, many decades ago, Saipem Snamprogetti, acquired in 2006, as well as with Sofresid, has been a world leader in the licensing, design and acquired together with Bouygues Offshore in 2002, and was construction of urea-based fertiliser plants, with 130 units later much reinforced by Saipem as a fully integrated global licensed to date based on the proprietary Snamprogetti urea company. Today, more than 100 major integrated complexes, technology, in every corner of the world. Rio Polimeros Gas Chemical Complex, Brazil. including 36 grassroots refineries, and almost 2,000 individual In the quest for economies of scale, following the successful process units bear the Saipem signature, mostly as the main start-up of the largest single-train urea unit in operation, back to the late 1950s, with Snamprogetti’s contribution to the EPC contractor. Profertil’s Bahia Blanca Fertiliser Complex in Argentina, which creation of Eni’s chemical production sites in Gela, Sicily, and By the end of the 1950s, before the tenth anni­versary of its achieved an average yearly production of about 3,600 t/d in during the 1960s of other sites, in support of the rapid growth foundation, Snamprogetti had designed, built and started up 14 2006 and has become the reference for the subsequent design of the leading shareholder at that time. new refineries, in several coun­tries in North and West Africa, in and construction of today’s biggest ammonia-urea complexes, Since the 1970s, Saipem has been engaged as an EPC India and Pakistan, in Europe and of course in Italy. Indeed, at the end of 2010 Saipem completed and put on stream the general contractor in many petrochemical projects in rapidly over the following­ decades, grassroots refineries had become first of the new wave of world largest single train units, the growing world markets, from China to the Americas, completing one of Snamprogetti’s main areas of activity, particularly in the Daharki Ammonia-Urea Complex for Engro in Pakistan, with the more than 160 petrochemical plants and integrated complexes Inauguration by Mr. Enrico Mattei, President of Eni, of the first Samir Refinery then new world markets: many new achievements in the Middle design production capacity of 3,835 t/d of urea. Two more such worldwide, producing olefins and diolefins, polymers and in Morocco, designed and built in 1960 by Snamprogetti, now Saipem. East, Eastern Europe, Asia, Latin America, as well as many units, with the capacity of 3,850 t/d, were recently completed in elastomers as well as base and intermediate chemicals, all this more in India and Pakistan. Slurry Technology, a revolutionary process for almost complete Qatar and several others are at various stages of design and by adopting the most modern technologies from leading Following the market shift in the 1990s, away from simple conversion of heavy residues and unconventional crude oils. construction in India, Saudi Arabia and Nigeria. licensors (e.g. Univation). An example of such an involvement in refineries in favour of larger complexes with enhanced Following satisfactory test results at lab and pilot plant scale In addition to continuous technology improvements, e.g. the a multi-billion dollar project is the recent design and execution conversion capacities to maximise gasoline and diesel and after the semi-commercial demonstration in a 1,200 bpsd new Omegabond Advanced Tubing Technology for improved of the Rio Polimeros Gas Chemical Complex in Brazil, in JV with production, Snamprogetti had focused on the design and unit, the first full scale 22,400 bpsd commercial plant is close stripper performance, developed in collaboration with ATI ABB Lummus. construction of major “bottom-of-the-barrel” upgrading projects. to completion in Eni’s flagship refinery at Sannazzaro de’ WahChang, and the adoption of continuously improved process Therefore, in downstream as well as in upstream markets, Thus, the constituent companies of Saipem have become one Burgondi, close to Milan, Italy. schemes for increased reliability and availability, environmental onshore as well as offshore, Saipem confirms that it is today not of the world leaders in hydrocracking (30 units to date), residue Saipem’s activity included also some very novel tech­nology impact reduction and energy savings, Saipem has recently only one of the world largest, but also one of the most balanced conversion (7), solvent deasphalting (13), IGCC (4, two of which applications in new market settings; for example: developed a ready-for-implementation design for single-train engineering and con­struc­­tion contractors in the oil and gas are the world largest) and generally in heavy oil upgrading. l In the 1970s and 1980s, the invention, licensing and often plant capacities exceeding 5,000+ t/d. industry. Its many achievements in other markets have not Saipem’s extensive know-how in this area was also applied design and construction of numerous plants to produce Also in petrochemicals, the early steps of Saipem’s involve­ distracted it from its strong focus also on the most exacting to the development, in support of Eni’s efforts, of EST – the Eni MTBE, the popular octane-booster. This area of activity ment as an engineering and construction main contractor date challenges in the downstream process industries.

Horizon Project, Phase I, for Canadian Natural Resources, Ft. McMurray, Alberta, Canada. Engro’s Daharki Ammonia-Urea Complex, Pakistan. world petroleum council 19-12-2012 rev1.pdf 1 2012/12/19 1:58 PM

Contents

The President’s Opening Remarks 6 Construction 58 By Jess Coutts Message from the Director General 7 Fertiliser 62 WPC Vision, Mission, Values and Principles 8 By Jess Coutts WPC overview and map of member Food 64 countries 10 By Ju Piau Khue Historic timeline 16 Textiles 70 Carbon chemistry and refining 20 By Georgia Lewis By William Srite Sports and Leisure 76

C Feedstocks overview 32 By Georgia Lewis

M Gas-to-liquids 36 Global summary 82 By Mark Blacklock Y The Future of the Petrochemical

CM Alcohols overview 42 Industry 102 By Peter Reineck MY Healthcare and cosmetics 44

CY By Georgia Lewis Glossary 108

CMY Computers and electronics 50 Acknowledgements 112

K By Georgia Lewis The opinions and views expressed by the authors in this book are not necessarily those of WPC, its members or the publisher. While every care has Transport and Automotive 54 been taken in the preparation of this book, they are not responsible for the authors’ opinions or for any inaccuracies in the articles. By Georgia Lewis Unless otherwise stated, the dollar ($) values given in this book refer to the US dollar.

5 The President’s opening remarks Message from the Director General

The President’s Message from Opening the Director Remarks General Petrochemical producers need to Over the decades, the technology innovate and focus on sustainability has changed but oil, gas and coal in a world that is undergoing rapid are still being used to create many social, political and economic products we take for granted. change.

Renato Bertani. Dr Pierce Riemer.

It has been a long trajectory since the first World study and the first gallon of a processed product to This book emphasises that nearly every aspect of covered new oil fields, drilled deeper oil wells Petroleum Congress was held in London in 1933, span a full decade. This is more than enough time modern life is impacted by oil and gas. Oil is used for than Colonel Drake’s first 70-foot well, and made but the principles of the WPC’s mission never for significant changes in availability, grade and fuels that drive our vehicles. Power stations burn oil great strides in refining and distribution. The first changed: Sustainable production and price of feedstocks, demand, specification require­ and gas to produce electricity, oil and gas are used to oil refinery was constructed in 1862. Gasoline was consumption of oil, natural gas and its products ments, environmental and safety regulations. This create medicines, plastics, textiles, cosmetics and a by-product of these early units, and emerged as for the benefit of humankind. is only a short list of the enormous uncertainties many other products that enhance our lives. their most important product. The interdepen­ This WPC Guide has been prepared with those that need to be taken into consideration when In the 1800s, oil was a by-product of the salt dency of the oil and auto industries became clear principles in mind. It is aimed at those who have planning large and long-term investments. business as wells drilled for salt water produced as priorities overlapped, and superior engines and an interest, either as a regulator, producer or con­ While planning for and dealing with changes “foul-smelling petroleum”. Following experimen­ cleaner burning fuels were produced. sumer, in refined products and petrochemicals. That may impact on economic performance, account­ tation in distilling this liquid petroleum, a lamp oil Since the 1960s, refiners have worked on means all of us. Modern life is all but impossible­ ing for the human needs is essential when it comes called carbon oil was produced in 1851. It burned cleaner burning fuels to satisfy environmental without such products. This book aims to assist in to sustainability. It is only those projects that priori­ with little smoke and odour and was sold for $1.50 concerns. We are now entering the age of the the understanding of the issues associ­ated with tise the safety of employees and communities­ a gallon. Prices – and chemistry – have changed unconventional refinery. From the early days of this capital-intensive, socially and economi­cally near­by, environmentally friendlier processes and since then. In Pennsylvania, USA, Colonel Drake Coal to Liquids (CTL) technology in the 1930s and high-impact sector of the petroleum value chain. products, and superior business ethics that ultimately rec­ognised the value of this product and his first 40s and more recently Gas to Liquids (GTL), we In the last two decades, we have witnessed soc­ial, will be sustainable and profitable in the long term. oil well kicked off the petroleum industry in 1859. now have operations like Pearl in Qatar which economic and political change at unpreceden­ ­ted We trust that the information provided in this At this time, Lenoir’s development of the internal demonstrate the “refinery” of the future. The speed. It is quite common for new products and guide will facilitate the understanding of these combustion engine paved the way for the modern refining industry will continue to take on technologies to become obsolete just a few years interrelated issues. And that all of us, as producers automobile industry. challenges and meet them through science and after they are introduced. Consumer demand pat­ or consumers, will be able to make more informed From 1859 to 1900, there were many tech­ innovation. terns can change almost overnight and social media decisions, even if only at choosing the right fuel nological innovations as auto inventors tapped We hope that this guide will give you an insight can trigger rapid political and economic reforms. grade at the petrol pump. the potential of the internal combustion engine, into a vital and fascinating side of our industry. This pattern of constant, fast change is no diff­ and petroleum pioneers improved methods of erent in the petrochemical sector. But it is not un­ Renato Bertrani producing, refining and delivery. Entrepreneurs Dr Pierce Riemer common for the gap between the first viability President, World Petroleum Council such as John D. Rockefeller and Henry Flagler dis­ Director General, World Petroleum Council

6 WPC Guide Petrochemicals and Refining 7 WPC Vision, Mission, Values and Principles WPC Vision, Mission, Values and Principles

l Information dissemination via l Focused, so that our goals are clear and l Communication to increase awareness, congresses, reports, regional meetings transparent of WPC’s activities, through enhanced and workshops l Understandable to all communication, both internally and l Initiatives for recruiting and retaining externally. expertise and skills to the industry Key strategic areas l Global representation to attract and WPC Vision, l Awareness of environmental issues, l World Class Congress to deliver a retain worldwide involvement in WPC. conservation of energy and sustainable quality, premier world class oil and l Youth and gender engagement to Mission, Values solutions gas congress. increase the participation of young l Inter-Congress activities to organise people and women in oil and gas issues, and Principles Values forums for cooperation and other including the establishment of a WPC values strongly: activities on specific topics; and to dedicated Youth Committee for the l Respect for individuals and cultures organise regional events of relevance to development of active networking worldwide WPC members and all stakeholders. opportunities with young people. l Unbiased and objective views l Cooperation with other stakeholders l Legacy to create a central WPC legacy l Integrity to add value by cooperating with other fund to benefit communities and Vision l Transparency organisations to seek synergies and individuals around the world based on An enhanced understanding and image of l Good governance promote best practice. WPC’s mission. the oil and gas sector’s contribution to l A positive perception of energy from sustainable development. petroleum World Petroleum Congresses l Science and technology Mission l The views of all stakeholders 2014 21st WPC Moscow The World Petroleum Council (WPC) is the l The management of the world’s 2011 20th WPC Doha 1979 10th WPC Bucharest only organisation representing the global petroleum resources for the benefit oil and gas community. WPC’s core value of all 2008 19th WPC Madrid 1975 9th WPC Tokyo and purpose cen­tres on sustaining and 2005 18th WPC Johannesburg 1971 8th WPC Moscow improving the lives of peo­ple around the Principles 2002 17th WPC Rio 1967 7th WPC Mexico City world, through: WPC seeks to be identified with its mission l Enhanced understanding of issues and and flexible enough so that it can embrace 2000 16th WPC Calgary 1963 6th WPC Frankfurt challenges change and adapt to it. WPC has to be: 1997 15th WPC, Beijing 1959 5th WPC New York l Networking opportunities in a global forum l Pro-active and responsive to changes and 1994 14th WPC Stavanger 1955 4th WPC Rome l Cooperation (partnerships) with other not merely led by them organisations l Creative and visionary, so that we add 1991 13th WPC Buenos Aires 1951 3rd WPC The Hague l value for all An opportunity to showcase the industry 1987 12th WPC Houston 1937 2nd WPC Paris and demonstrate best practice l Challenging, so that our goals require 1983 11th WPC London 1933 1st WPC London l A forum for developing business effort to attain but are realistic and opportunities achievable

8 WPC Guide Petrochemicals and Refining 9 WPC overview WPC overview

Executive Committee every three years to develop the building of a state-of-the-art Petroleum­ Mus­ Committee to provide financial assistance to help and execute its strategy. The Council also selects eum in Stavanger. needy young South Africans pursue qualifications the host country for the next World Petroleum The 15th World Petroleum Congress in Beijing in petroleum studies. Congress from the candidate countries. adopted the issue of young people as part of its In 2008, with the 19th Congress in Madrid, the WPC overview Every three years, the Council organises the theme: “Technology and Globalisation – Leading trend continued and the organisers selected a World Petroleum Congress. Known as the the Petroleum Industry into the 21st Century”. To number of projects and foundations to receive Since 1933, the World Petroleum “Olympics of the petroleum industry”, it covers all support the education and future involvement of the surplus from the event for charitable and edu­ Council (WPC) has been the world’s aspects of oil and gas from technological young people in the petroleum industry, the cational programmes in Spain and around the premier oil and gas forum and is the advances in conventional and unconventional Chinese National Committee dona­ted all com­ globe. The 19th Congress was the first one to off­ up­stream and downstream operations, the role of puter and video equipment used for the Congress set all its carbon emissions and receive a certi­ only international organisation natural gas and renewables, industry man­ to its Petroleum University. fication as a sustainable event. repre­senting all aspects of the agement and its social, economic and environ­ Profits from the 16th Congress in Calgary The most recent Congress in Qatar also offset petroleum sector. mental impact. endowed a fund that gives scholarships to post- all of its carbon emissions and has chosen a pro­ In addition to industry leaders and experts, secondary students in several petroleum-related ject to educate and support young people as outside stakeholders such as governments, other fields. The Canadian Government Millennium­ recipient for the 21st WPC Legacy Programme. industry sectors, NGOs and international insti­ Scholarship Foundation matched the amount tutions also join the dialogue. To ensure the dollar-for-dollar, creating an endowment which Youth outreach The World Petroleum Council (WPC) was esta­ scientific and topical quality of the event, the WPC supported more than 2,000 students until its Youth is a critical factor in the sustainability of the blished in 1933 to promote the management of Council elects a Congress Programme Committee conclusion in 2010. oil and gas industry. Involving young people in the world’s petroleum resources for the benefit of whose members are responsible for delivering The 17th World Petroleum Congress was the the design of future energy solutions is a major all. It is a non-advocacy, non-political organisation the high-level content for its Congresses. Moscow first to integrate the concept of sustainability issue for WPC’s 65 member countries. WPC recog­ and has received accreditation as a non-gov­ will be the host of the 21st World Petroleum throughout its event, taking responsibility for all nises their significance to the future of the petro­ ernmental organisation (NGO) from the UN. WPC’s Congress in 2014 (www.21wpc.com). waste it generated. The congress and the Rio Oil & leum industry and the importance of giving the prime function is to facilitate dialogue among WPC is also involved with a number of other Gas Expo 2002 generated 16 tonnes of recyclable young generation scope to develop their own internal and external stakeholders on technical, meetings such as the WPC Youth Forum, the WPC- waste. All proceeds of the recycling activities were ideas, talents and competencies to create viable social, environmental and management issues in UN Global Compact Best Practice Forum, joint passed on to a residents’ cooperative with 6,000 solutions for the future of our world. order to contribute towards finding solutions to WPC/OPEC workshops and other regional and inhabitants in the port area of Rio de Janeiro. An As part of its outreach to the next generation, those issues. topical events on important industry issues. army of 250 volunteers collected 36 tonnes of WPC created its Youth Committee in 2006 to Headquartered in London, WPC includes 65 rubbish in 10 days in a community effort to clean provide a channel through which young people member countries representing more than 95% Legacy up the Corcovado area before the Congress, have a direct involvement and say in the strategy of global oil and gas production and consumption. As a not-for-profit organisation, WPC ensures donating all proceeds to the rubbish collectors, and activities of the organisation. It aims to create Membership is unique, as it includes both OPEC that any surpluses from its events are directed some of the poorest inhabitants of Rio. The and nurture a collaborative, global forum for and non-OPEC countries with high-level repre­ into educational or charitable activities, there- Congress’s surplus funds were used to set up the young people to be heard, to champion new sentation from National Oil Companies (NOCs) by leaving a legacy. WPC has set up a dedi­cated WPC Educational Fund in Brazil, which was ideas within the petroleum industry, to promote a and Independent Oil Companies (IOCs). Each WPC Legacy Fund to spread the benefits beyond increased in 2005 with tax initiatives by the realistic image of the petroleum industry, its country has a national committee made up of the host countries and its members and alleviate Brazilian government. challenges and opportunities, and to bridge the representatives of the oil and gas industry, the ener­gy poverty through carefully sel­ected The 18th World Petroleum Congress also chose generation gap through mentorship networks. service sector, academia, research institutions and projects. a sustainability focus for the first-ever Congress to In 2011, WPC launched a pilot Mentorship government departments. The concept of leaving a legacy in the host be held in Africa: “Shaping the Energy Future: Par­ Programme to provide a bridge between inter­na­ The governing body of WPC is the Council with country started in 1994 with the 14th World tners in Sustainable Solutions”. Education was the tional experts and the next generation of our ind­ representation from all national committees. Its Petroleum Congress in Stavanger, Norway. After focus of the 18th World Petroleum Congress ustry. This programme is now in its second suc­ global membership elects the President and an this Congress, the surplus funds were put towards Legacy Trust, set up by the South African National cessful cycle and has already created 150 matches.

10 WPC Guide Petrochemicals and Refining 11 reserved for Air Liquide ad reserved for Air Liquide ad WPC overview WPC overview

WPC Member Countries

Algeria India Portugal Angola Indonesia Qatar Argentina Iran Romania Australia Israel Russia Austria Japan Saudi Arabia Azerbaijan Kazakhstan Serbia Bahrain Kenya Sierra Leone Belgium Korea Slovak Republic Brazil Kuwait Slovenia Canada Libya South Africa China Macedonia Spain Colombia Mexico Suriname Croatia Morocco Sweden Cuba Mozambique Thailand Czech Republic The Netherlands Trinidad and Denmark Nigeria Tobago Egypt Norway Turkey Finland Oman United Kingdom France Pakistan Uruguay Gabon Panama USA Germany Peru Venezuela Hungary Poland Vietnam

14 WPC Guide Petrochemicals and Refining 15 Petrochemicals historical timeline Petrochemicals historical timeline

1859 Oil discovered when retired railway including mobile phones, electronic toys and 1920 German chemist Hermann Staudinger conductor Colonel Edwin L. Drake drills a well computer screens. recognised that polystyrene (see 1839) is made near Titusville, Pennsylvania. Annual US oil 1900 Texas, California and Oklahoma all up of many styrene molecules joined together in production is 2,000 barrels. producing oil. Annual US production at a chain. (see 1929) 1862 Industrialist John D. Rockefeller finances 64 million barrels. 1925 US oil production exceeded 1 billion his first oil refinery and created the Standard Oil 1909 The discovery barrels. Petrochemicals Company with his brother, William and several of Bakelite is ann­ 1925 Synthetic fuels pioneered with the associates. ounced. Considered development of the Fischer-Tropsch process by historical 1865 First successful oil pipeline built from the world’s first plas­ German researchers Franz Fischer and Hans Titusville to a railway station five miles away. tic, it was invented Tropsch. Coal, biomass or natural gas could now timeline Trains then transported oil to refineries on the by Belgian Leo be converted into synthetic fuels. Atlantic coast. Hendrik Baekeland 1926 IG Farben acquires patent rights to the 1878 John D. Rockefeller controls 90% of the oil when he tried to Bergius hydrogenation process (see 1913). Carl refineries in the United States. make a substitute Bosch had already been working on high- Bakelite, the original plastic, found 1879 The first synthetic rubber was created. for shellac. It helped many uses from radios to cameras pressure hydrogenation processes for IG Farben. 1888 The study of liquid crystals begins in transform the radio and beyond, and examples are still 1926 American inventor Waldo Semon much sought-after today. Austria when scientist Friedrich Reinitzer found industry in the 1930s. plasticises PVC by blending it with different 1835 Polyvinyl chloride (PVC) discovered by that a material known as cholesteryl benzoate 1908 First major discovery of oil in Iran. additives to create a more flexible material. French chemist and physicist Henri Victor had two different melting points. However, it has 1912 German chemist Fritz Klatte develops a 1927 First major discovery of oil in Iraq. Regnault after leaving a sample of vinyl chloride only been in the last few decades that liquid new process for producing PVC using sunlight. 1928 Portable offshore drilling on a submersible gas in the sun. The sample hardened into a white crystal use has come into its own with uses He was the first to patent PVC but had difficulties barge pioneered by Texan merchant marine solid but it was not patented until 77 years later. processing the sometimes brittle polymer. captain Louis Giliasso. 1839 Polystyrene discovered by accident by 1913 High-pressure hydrogenation process 1929 Scientists at chemical company BASF German pharmacist Eduard Simon when he tried for transforming heavy oils into lighter oils develop a way to commercially manufacture to distil a natural resin called storax. He obtained developed by German organic chemist polystyrene based on Staudinger’s findings (see an oily substance he called “styrol” and this Friedrich Bergius. 1920) and a year later, large-scale polystyrene thickened, probably due to oxidation. This 1913 Thermal cracking patented as a method of production started. substance wasn’t recognised as being made up oil refining by chemical engineers, William Burton 1930s New process of alkanisation and fine- of many styrene molecules until 1920. and Robert Humphreys, of Standard Oil. powder fluid-bed production increases the 1851 Carbon oil for lamps first produced. 1914-1918 During World War I, Germany started octane rating of aviation gasoline. 1856 Synthetic dyes first discovered by 18-year- large-scale production of synthetic rubber and 1931 Neoprene invented by DuPont scientists old student William Perkin at the Royal College of further investigations into its production after attending a lecture by Belgian priest and Chemistry in London when trying to develop an continued after the war. chemistry professor Dr Julius Nieuwland. artificial form of quinine from coal tar. Instead of 1920s-1940s A busy era for petrochemicals with 1931 German organic chemist Friedrich Bergius quinine, he was left with a purple powder which nylon, acrylics and polyester materials dev­ and Carl Bosch share a Nobel Prize for their was used as an affordable fabric dye. Before this, eloped, as well as new compounds derived from work in high-pressure hydrogenation. (See 1913 fabric was dyed purple using shells of a oil-refining by-products entering the market. and 1926) Mediterranean mollusc and was very expensive. Other successful materials included polystyrene, 1933 German scientists invent Buna-S, a syn­ This discovery, making purple fabrics more polyvinyl chloride (PVC) and polyethylene. Nylon, thetic rubber made from styrene and butadiene. widely available, boosted the petrochemical acrylics and polyster developed for a wide range Mainly used for car tyres. industry by demonstrating the usefulness and of uses, such as clothing, sports gear, industrial 1933-1935 Plexiglass is discovered by accident 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. equipment, parachutes and plexiglass. by German researcher Otto Röhm. He developed

16 WPC Guide Petrochemicals and Refining 17 Petrochemicals historical timeline Petrochemicals historical timeline

a method for polymerising methyl methacrylate alumina-based catalysts, introduced by French V By the time this photo­ which was intended for use as a drying oil in scientist Eugene Houdry. graph of an oil refinery and varnishes but found it could also be used as a 1937 Ethylene glycol and propylene glycol storage tanks was taken in 1956, Saudi Arabia was coating for safety glass. Plexiglass was manu­ become available as an anti-freeze. Methanol was well on the way to capitali­ factured from 1938, used in war planes from 1940 used until this time. sing on the world’s largest oil reserves. and in car exteriors from 1974. 1937 German chemist Otto Bayer patents 1933 A white, waxy material, is discovered by polyurethane and further tests created moulded accident by two organic chemists at the UK’s foam with bubbles. Between 1943 and 1944, the Imperial Chemical Industries (ICI) research Germans secretly used polyurethane on wartime laboratory. ICI chemist Michael Perrin develops a aircraft components. In the post-war years, it high-pressure synthesis process in 1935 to turn became highly successful in mattresses, insu­ the waxy material into polyethylene. It was lation and furniture padding. Polyurethane is also available on the mass market in the toy sector used in paints, varnishes and sportswear fabrics. from the 1950s. 1938 First major discovery of oil in Saudi Arabia. 1935 American chemist Wallace Hume Caothers 1938 Dow Chemical Company introduces and develops Dacron, a second polyester fibre. because of limited oil imports with the trade creats a fibre which came to be known as Nylon. STYRON polystyrene resins. 1946 It is believed that the first synthetic sanctions under the apartheid regime. Nylon stockings were introduced to the US 1938 American chemist Roy Plunkett develops detergents were developed by the Germans in 1960s Work conducted on water conservation market in 1940 to great acclaim. The material is Teflon after accidentally exploding tetrafluoro­ World War I because of a shortage of fats for for soils in the US led to the development of a used today for multiple purposes including ethylene gas. The white, waxy powder that making traditional soaps. In 1946, there was a resin in the form of an acrylic gel which were fabrics, carpets, ropes and guitar strings. Solid remained was a polymer of tetratfluoro­ethylene breakthrough in detergent development when then developed into super-absorbent fibres. nylon is used for mechanical parts. which was used as the basis for Teflon, a new the first man-made detergent, containing a Commercial production began in Japan in 1978 1936 Catalytic cracking, using silica and non-stick, heat-resistant plastic. Gore-Tex, the surfactant/builder combination, was introduced and in 1980, super-absorbent polymer was used breathable, waterproof textile, is also a result of in the US. in baby diaper production. this discovery. 1947 German-born American chemical engineer 1960s First synthetic oils are developed with 1939-1945 World War II. During this time, the US Vladimir Haensel invents platforming, a process Mobil Oil and AMSOIL leading the field. The supplied more than 80% of aviation gasoline and for producing cleaner burning high-octane fuels. synthetics contain additives such as polyalpha­ American refineries manufactured synthetic The process uses a platinum catalyst to speed up olefins derived from olefins. Introduced commer­ rubber, toluene, medicinal oils and other impor­ chemical reactions. ci­ally in the 1970s to the automotive market. tant petrochemical-based military supplies. 1949 BASF chemist Fritz Stastny starts work on a 1963 Australian chemists start work on conduc­ 1941 DuPont chemists John R. Whinfield and process to turn polystyrene into a foam form. In ting polymers which are now used as anti-static James T. Dickinson created the polyester fibre 1951, he succeeded and turned STYRON, a substances for computer screen shields, windows from ethylene, glycol and terephthalic acid. This substance that is 98% air, into one of the world’s that can exclude sunlight and photographic film. was called Terylene and was manufactured by ICI. most successful plastics. 1965 Kevlar is invented at DuPont as a result of 1941 Polyethylene terephthalate – or PET – is Early 1950s Polypropylene discoveries were made research involving high performance chemical developed from ethylene and paraxylene. It was in different places because of improved knowledge- compounds. It is used in bullet-proof vests, under­ originally used in synthetic fibres, was first used sharing but this led to nine different teams claim­ water cables, space vehicles, brake linings, skis, in packaging in the mid-1960s and pioneered ing to have invented it. Patent liti­gation was building materials, parachutes, boats and skis. for bottles in the early 1970s. It was first recycled finally resolved in 1989. American chemists Paul 2000 The Nobel Prize for Chemistry is awarded in 1977. Hogan and Robert Banks, working for Phillips to three Australian researchers, Alan J. Heeger, 1942 The first catalytic cracking unit is put on Petroleum, are generally credited as the inventors. Alan G. MacDiarmid and Hideki Shirakawa, stream by Standard Oil in Baton Rouge, Louisiana. 1955 South Africa starts making its own for their discovery and development of Otto Bayer conducting an experiment demonstrating polyurethane foam in 1952. 1946 DuPont buys all legal rights for polyester synthetic fuels using the Fischer-Tropsch method conducting polymers.

18 WPC Guide Petrochemicals and Refining 19 Introduction to extraction, refining and processing Introduction to extraction, refining and processing

Bakelite, the 1950s heralded a new and powerful era for Substances such as ethylene, propylene, buta­ the petrochemical ind­us­try. This continues to this day. diene, benzene, toluene and xylenes are pro­ Introduction Oil and gas were broken down into constituent cessed in petrochemical plants into more speci­ parts and reassembled to make what we need. It alised products – and it can take more than one to extraction, was discovered that oil has every element needed step for these products to become fit for use by to make any other organic compound. To do this, downstream industries and then to be made into refining and heat is used, certain catalysts and certain proper­ familiar products. For example, it takes one oper­ ties of physics will separate the elements and ation, albeit a complex one, to turn ethylene into processing recombine them in more useful ways. It is similar plastic polyethylene but there are more than seven to oil floating on water – that is a physical sep­ steps involved in turning benzene into Nylon, one aration technique that can be applied to any two of the most commonly used materials in clothing By William Srite compounds that don’t mix. and sporting equipment manufacturing. Oil, gas or coal can all be refined for the Mixing is related to the stability of atoms, elec­ trons and valence shells and is outside the scope The science behind carbon chemistry creation of petrochemical products. of this. But when two compounds are stabile (have Let’s step back for a moment and talk about the right number of electrons in their outer shell, physics and chemistry and how it works together. usually eight, but it can vary and can be as many “Organic” chemistry can be explained as an “arti­ The importance of carbon chemistry as 32) they don’t mix, then you can use physical ficial” branch of chemistry that harkens back to a Around the 1950s, carbon chemistry was dev­elop­ sep­aration techniques, like the one des­cribed above. time when chemists were still trying to find the ed and we started using hydrocarbons in oil in new This allows us to make products as diverse as “essence of life” in elements – those that were ways. While advances in new uses for hydro­­carbons Kevlar, nylon, plastic, artificial sweeten­ers, rubber thought to have this “essence” were organic occurred before the 1950s, such as the invention of tyres, and carbon fibre. elements and everything else was inorganic. The 12 Pipestill Unit at BP’s Whiting oil refinery in Indiana. Today, we know there is no such thing as an Currently undergoing modernisation, the refinery first started operation in 1889, predating the advent of the motor car. “essence of life”, at least not in chemical elements. But, we still use the term and today it simply Carbon is such a useful element and is the basis means chemistry or chemicals that use carbon as of all life. This is because in its natural state it lacks a building block. We’ve all heard that carbon is the four electrons in its outer shell, which makes it building block of life and we’ll talk about why that very, very promiscuous and willing to bond with is in a moment, but it is good to start with some almost any other element to try to fill that outer basic science. shell with four more electrons. That’s why we can First, we need to explain what an element is. An string together long chains of hydrocarbons. Carbon element is a substance made from just one kind of has four different places where we might attach atom. Which is to say: you cannot reduce an another element, unlike, say helium, which has a element beyond the atomic level – you can, but full shell. Carbon is one of the most imbalanced particle physics is outside the scope of this. So, the elements in organic chemistry but, thanks to element hydrogen is an atom made from one pro­ carbon chemistry, it continues to be one of the ton and one electron. It can also have a varying most useful, particularly in the field of petro­ number of neutrons, as can all atoms. In an atom, chemical production. a proton has a positive electric charge, a neutron Refineries come in many different sizes and has no charge at all and an electron is negatively configurations, depending on the local market, charged. When there is an imbalance in the charge, the types of products required and the types of The Sauber Mercedes C 291: The use of carbon-fibre reinforced plastic allowed the driver’s cell, safety bar and roof to be made in one piece for the first time. elements seek other elements to balance out. feedstocks available for processing. But all refiner­

20 WPC Guide Petrochemicals and Refining 21 Introduction to extraction, refining and processing Introduction to extraction, refining and processing

ies perform the same basic tasks – distilling crude distillation – the separation of heavy crude oil into oil, gas or coal into its various constituent frac­ lighter groups (called fractions) of hydrocarbons. tions; chemically rearranging low-value configur­ One, fuel oil, is used for heating of 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 it 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. So 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 Loading a truck with oil sand in Alberta, Canada. The extraction of unconventional oil and gas remains both difficult and controversial. 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 and shale. These feedstocks require different ex­ separation process is required to remove the bitu­ lied. The process with oil is much the same, with tions. When a catalyst is used, the process is known trac­tion and refining techniques that are often men from the clay, sand and water. A hot water pro­ heat being applied, usually around 350°C, and the as catalytic cracking. more complicated than the processes used for cess separates the four different parts. Hot water vapourised petroleum being pumped into a frac­ After cracking, new products are obtained. These converting conventional crude oil. is added to the sand to form a slurry which is piped tionating tower. form the building blocks of the petrochemical to an extraction plant for agitation. The combi­na­ In whiskey, the alcohol is the second most vola­ industry – olefins (mainly ethylene, propylene and Extraction and refining from oil sands tion of hot water and agitation released the bitu­ tile chemical in the mix, methyl is first and that butadiene) and aromatics, named for their dis­ Oil sands are a combination of clay, sand, water men and causes tiny air bubbles to attach to bitu­ why distillers throw away the first gallon or so. In tinctive perfumed scent (mainly benzene, toluene and bitumen. Around two tons of tar sands are men droplets. These droplets float to the top of the the case of oil, it rises up the tower, cools down and xylenes). These new products are then pro­ needed to produce one barrel of oil and many of separation vessel and are skimmed off. Additional­ and its components condense back into several cessed in petrochemical plants to become more the techniques use vast quantities of water and processing removes residual solids and water. distinct liquids, collected in a series of trays. Lighter familiar products. The steps required for transfor­ ­ energy. Oil sands are also known as tar sands, as Bitumen then requires further upgrading before liquids, such as kerosene and naphtha (commonly ming olefins and aromatics into useful, more the bitumen was used for roofing and paving tar, it can be refined into synthetic crude oil, which known as Zippo lighter fluid), collect near the top speci­alised, products varies, depending on what but this particular use for bitumen has been can then be used as the basis of petrochemical of the tower, while the heavier ones, such as lubri­ the final product is going to be. largely superseded by more modern materials. products. It is a very viscous substance so it needs cants and waxes, fall to the bottom. This oil is retrieved from these sands by strip to be diluted with lighter hydrocarbons so it can The role of a refinery is to produce physical and Refining oil from unconventional sources mining, open pit techniques, steam injection, sol­ be transported by pipeline for refining. chemical changes in crude oil and natural gas. This The refining sector has had to adapt to new vent injection or underground heating with addi­ The bitumen can then be used as a feedstock is done via an arrangement of specialised manu­ challenges as feedstocks diversify to include oil tional upgrading. The oil that is retrieved is similar for useful petrochemicals such as ethylene, propy­ fac­turing processes. One of these processes is from unconventional sources, such as oil sands to oil pumped from conventional oil wells but a lene, benzene and para-xylene. Off-gas, a by-

22 WPC Guide Petrochemicals and Refining 23 Introduction to extraction, refining and processing Introduction to extraction, refining and processing

shale oil is more complicated than extracting Steam reforming occurs by exposing natural sources of energy for decades and they are also liquid crude oil from the ground. Getting crude oil has to a catalyst that causes oxidisation when it is the building blocks for chemicals, feedstocks and from shale rock remains difficult and controversial, brought into contact with steam. This process is synthetic materials, all of which are in high demand. as is also the case with shale gas extraction. similar to the Fischer-Tropsch process. Once this While much of this growing demand has been met Oil shale is mined using either underground- or process results in synthesis gas, it can be used to by oil and gas refining, coal has also been exploit­

surface-mining methods, After excavation, the produce methanol (CH3OH), also known as methyl ed as a source of petrochemical feedstock. Refin­ mined rock undergoes a retorting process – this is alcohol, which is then used to produce useful sub­ ing coal can be highly profitable with many high- the exposure of mined rock to pyrolysis, the appli­ stances such as formaldehyde, acetic acid, a fuel value chemicals being produced in this sector. cation of extreme heat without the presence of source in fuel cells, insulation materials, varnishes, Over the years, governments and private com­ oxygen to produce a chemical change. Between paints, glues, and methyl tertiary butyl ether panies in multiple countries have devoted sig­ni­ 345°C-370°C, the fossil fuel trapped within starts (MTBE), which is used as an additive for gasoline ficant resources towards researching and ­dev to liquefy and separate from the rock. The emer­ that burns more cleanly. It can also be used within eloping coal refining. While coal was first used in ging oil-like substance can be further refined to a the energy industry as an agent to prevent blast furnaces in Britain in the early 17th Century synthetic crude oil. hydrate plugs forming in oil and gas pipelines at and first successfully carbonised for com­mercial Measuring the viscosity of a shale oil sample in Enefit’s oil laboratory in Estonia. When it is mined and retorted above ground, low temperatures. use in Britain in 1709, the major break­through for the process is called surface retorting. This process Mineral fertilisers are also produced from nat­ coal’s use in the petrochemical sector came in product of bitumen processing that is rich in adds two extra steps to the conventional extrac­ ural gas feedstocks. This involves a series of sev­ 1913. This is when Friedrich Bergius, a German vapours that can be condensed into ethane, tion process in which liquid oil is simply pumped eral chemical conversions. The first stage is am­ chemist, discovered that if coal is treated with propane and butane is currently being used as a out of the ground. mo­nia. The process of ammonia production for hydrogen at high temperature and pressure in the fuel, but it expected that in the future, ethane and Royal Dutch Shell Oil Company has developed fertiliser use is similar to the gas-to-liquid process, presence of a catalyst, an oil similar to crude other gas liquids extracted from off-gas, will not In Situ Conversion Process (ICP) to simplify the but different catalysts, pressure and temperature petroleum is produced. only supplement conventional gas supplies but refining process for shale oil. With ICP, the rocks are required. In the 1930s and 40s, research into using the also be used to meet ethane demand. Upgraded are not excavated from the site. Instead, holes To produce ammonia, the natural gas is first Fischer-Tropsch process for coal refining led to bitumen can be used as a feedstock in the form of are dril­led into the shale and heaters are lowered cleaned from sulphur and mixed with heated water coal liquids being used for transportation fuel for intermediary refined petroleum products, such as into the earth. Over the course of at least two vapour. It is then supplied to a reactor where is the German army in World War II. The Sasol naphtha, aromatics and vacuum gas oil. years, the shale is slowly heated and the kero- passes through catalyst beds. This is the primary facilities in South Africa started making liquid and Both light hydrocarbons from off-gas and inter­ gen (the fossilised material in rock that yields oil reforming stage, also known as gas-vapour con­ gaseous fuels from coal thanks to this early work mediary products from oil sands are not being when heated) seeps out. The kerogen is then version. A gas mixture made up of hydrogen, meth­ on the Fischer-Tropsch process. Oil embargoes and

exploited to their full potential as a source of petro­ collected in situ and pumped to the surface for ane, carbon dioxide (CO2), and carbon oxide (CO) natural gas shortages in the early 1970s precipi­ chemical feedstock because of issues surrounding further refining. emerges from the reactor. The mixture is then sent tated more recent efforts to refine coal. China is environmental concerns and developing inte­ to a secondary reforming gas-vapour con­ver­sion now a world leader in coal refining with 34 coal- grated approaches to reach economies of scale. Refining natural gas for feedstock stage where it is mixed with atmospheric oxy­gen, to-chemical facilities in operation and more While the Canadian province of Alberta is a world Natural gas plays an important role in today’s vapour and nitrogen. For the next stage, CO and planned for the future.

leader in petrochemical refining from oil sands, global petrochemical industry. It is a common build­ CO2 are removed from the mixture. Finally, a mixture The coal chemical sector can be divided into market conditions and technology still need to ing block for methanol which has many indus­ ­trial of hydrogen and nitrogen gases are added at high traditional coal chemical and new coal chemical evolve further for bitumen and off-gas to offer a applications. Natural gas is converted to synthesis temperature and high pressure in the presence of sub-sectors. Traditional coal chemical production secure, stable-priced feedstock for the sector. gas (syngas), which is a mixture of hydro­gen and a catalyst to form ammonia. This final stage is mainly includes synthetic ammonia, coke, calcium carbon oxides created through a processed called known as the ammonia synthesis process. carbide, while new coal chemical production inc­ Extraction and refining of shale oil steam reforming. Ethane, an alternative to crude ludes petroleum substitutes such as ethylene gly­ Like oil extracted from oil sands, shale oil has not oil-derived ethylene, is a by-product of natural Refining coal for feedstock col, oil and olefins. been processed in vast quantities for petro­ gas and the US shale gas boom in particular is Coal is made up primarily of two main elements, Coal is usually refined for the petrochemical chemical feedstock. The process for extracting capitalising on the abundant supply. hydrogen and carbon. These have been important sec­tor by either gasification or liquefaction.

24 WPC Guide Petrochemicals and Refining 25 Introduction to extraction, refining and processing Introduction to extraction, refining and processing

to extract tar, primary gaseous volatiles, such as and water is chemically restored to carbon mono­ carbon monoxide and carbon dioxide, and resi­ xide and hydrogen. There is no chemical inter­ dual char. The tar also yields gaseous volatiles, as action between the coal and the oxidiser before it well as residual soot. After devolatilisation, volatile reaches the reaction zone and no toxic by-pro­ combustion, char combustion and gasification can ducts are present in the gas as these are disabled take place. in the reaction zone. As well as being more eco­ Coal is blown through with oxygen and steam logically friendly, reversed blowing produces two as well as being heated and, in some instances, useful products – gas and middle-temperature pressurised. If the heat comes from an external coke. The gas can be used as fuel and the coke can source, it is called “allothermal” and if it if heated be used as a technological fuel in metallurgy, a with exothermal chemical reactions which take chemical absorbent or in products such as fuel place inside the gasifier, it is called “autothermal.” briquettes. During the reactions, oxygen and water molecules oxidise the coal to produce a gaseous mixture of Coal liquefaction carbon monoxide, carbon dioxide, water vapour Liquids that have been obtained via the coal and molecular hydrogen. liquefaction process can potentially be used as If a refiner wants to produce alkanes, coal gas is fuels or feedstocks for a wide range of petro­ routed to a Fischer-Tropsch reactor, and if hydro­ chemical products. It is generally more expensive gen is the desired final product, the coal gas under­ than refining crude oil but it can be cost-effective goes a water gas shift reaction, whereby more hy­ if crude oil is in limited supply, unavailable or the dro­gen is produced by further reaction with steam. supply has been disrupted. This process was first A coal gasification plant in Yueyang, China with the capacity to gasify 2,000 tonnes of coal a day. (inset) Examples of the products In general, existing methods for coal gasifica­ used in the 19th Century to provide fuel for indoor derived from coal gasification. tion use the same chemical process. Low-grade lighting. Coal liquefaction has a long history in coals, which are high in water, can be gasified countries such as Germany and South Africa where using technology where no steam is needed for there is not a secure supply of crude oil. the reaction and carbon and oxygen are the only Pioneers in coal liquefaction technology dev­ Coal gasification anol and ammonia. Gasification produces lower reactants. Furthermore, some gasification methods elopment include American companies such as Coal gasification is used to produce chemicals emissions, is more efficient than other forms of do not require high pressure and use pulverised HRI, Exxon, Gulf Oil, Conoco, Chevron, Amoco, and feedstocks as well as fuels and electricity. It is coal refining and gasification plants can cope with coal as fuel. Lummus, Kerr-McGee and Consol; Germany’s more efficient and less expensive than fac lique­ ­ refining different types of coal. The technologies for supplying the blowing Ruhrkohle; the UK’s British Coal Corporation; and tion. One of the guiding principles behind dev­ In this process, coal is gasified to produce a low- part of the process also vary. With direct blowing, Japan’s NEDO and Mitsubishi Heavy Industries. elop­ing fully integrated gasification sites where or medium-Btu fuel gas. During gasification, ele­ the oxidiser passes through coke and ashes to the Coal liquefaction can be a more efficient pro­ coal could be turned into electricity and chemicals mental sulphur and carbon dioxide can be re­ reaction zone where it interacts with coal. Hot has cess if it is combined with electricity production is that energy production costs, air emissions and cover­ed, steam can be produced and the slag left is produced which passes fresh fuel and heats it as this utilises some of the heat that would other­ solid waste production could all be reduced. The over from the gasification process can be used for while absorbing tars and phenols. Significant re­ wise be wasted. gasification process can take place in-situ within road construction or as a building material. The fining is then required before being used in the There are two main stages to the coal lique­ natural coal seams or in coal refineries. coal gas, a type of syngas, can also be used to pro­ Fischer-Tropsch reaction. This creates highly toxic faction process when indirect coal liquefaction The US Department of Energy has cited num­ duce industrial chemicals, such as ammonia, as products which require special treatment before (ICL) is used – coal gasification and gas-to-liquid erous advantages to processing coal by gasifica­ ­ well as petrochemical feedstocks. they can be used. (GTL). During gasification, air and steam are tion. These include product flexibility, with a num­ The coal is dried before it is devolatilised. Reversed blowing, a newer form of technology added to raw coal and this is heated. The carbon ber of different commodities produced by the Devolatilisation is an important part of the pro­ has the gas produced in the reaction zone pass in the coal reacts with oxygen and water to pro­ resulting synthesis gas (syngas), especially meth­ cess in which high temperatures are used in order through coke and ashes and the carbon dioxide duce carbon monoxide, carbon dioxide, hydrogen

26 WPC Guide Petrochemicals and Refining 27 Introduction to extraction, refining and processing Introduction to extraction, refining and processing

Shenhua’s direct coal liquefaction plant, the first of its kind in the world, has been in operation since 2008. Ongoing research and development efforts are vital to the future of the petrochemicals industry.

and methane. The CO2 is waste and other gases to liquids with a single reaction stage, usually ded demonstration testing in 2008 and has been chemical producers must also contend with ongoing can be burnt or processed further. involving an integrated hydrotreating reactor. operational ever since. volatility in the prices of commodities, with forward- The second stage for liquefaction is the Fischer- In DCL, the coal is put in direct contact with the planning essential for years when margins are low. Tropsch process. Once the coal gas is filtered and cat­alyst at very high temperatures (850°F/455°C) in High-tech challenges Environmental issues are a vital part of research processed, the carbon monoxide and hydrogen the presence of additional hydrogen. This reac­tion Simply continuing to churn out products we in the sector, so firms have to focus on how the ind­ ratio is adjusted by the addition of water or car­ takes place in the presence of a solvent. The solv­ent already know how to make isn’t an option for com­ ustry can meet increasingly stringent standards­ bon dioxide. This hot gas is passed over a catalyst, facilitates coal extraction. The solubi­lised pro­ducts, panies to remain competitive and profitable. Com­ for cleaner refining and manu­fac­turing pro­cesses, causing the carbon monoxide and hydrogen to which consist mainly of aromatic com­pounds, then panies need to create new products and find cheaper and high health and environmen­ ­tal standards re­ con­dense into long hydrocarbon chains and water. may be upgraded by conven­tional petro­leum ways to do things, which is why research and dev­ quired of the final products. These high standards These chains can be used as an alternative to oil refining techniques, such as hydro­treating elopment is important to petrochemical producers. are often imposed at a self-regulatory level by the products such as heating oil, kerosene and gaso­ DCL processes are more efficient than ICL but a The chemical and manufacturing processes in companies themselves and by governments. line. The water, meanwhile, can be recycled and higher quality coal is required for best results. this part of the downstream business require a In the US, for example, which has more refining used as steam for the liquefaction process. How­ever, since the late 1980s, very few DCl pro­ huge pool of expertise – and a lot of money – to capacity than any other nation on Earth, the sec­ Aside from this two-stage process, coal can also grammes were continued with the exception of ensure engineers and scientists continue to make tor is, in the words of the US Department of Energy, be liquefied via direct coal liquefaction (DCL). This HTI, now called Headwater Inc, has developed a breakthroughs. The drive to produce more with “one of the most heavily regulated industries.” If can take place as a one- or two-stage process. In two-stage catalytic liquefaction process that was less, and more cheaply, provides researchers with refineries fail to comply, they cannot operate. the 1960s, single-stage DCL techniques were pio­ funded by the US Department of Energy. This tech­ access to the sort of facilities rarely found beyond For alternatives to fossil fuel-based petro­ neered but these first-generation processes have nology was then licensed to China’s Shenhua the commercial sector. chemicals, see page 102. now been largely superseded or abandoned. The Corporation in 2002 for the construction of a Keeping costs down is vital, because the facilities are single-stage processes attempted to convert coal 20,000 bpd plant in Inner Mongolia that commen­ expensive to build, maintain and run. Refiners and petro­ William Sripe is a freelance journalist.

28 WPC Guide Petrochemicals and Refining 29 Introduction to extraction, refining and processing

What you get from a barrel of crude oil

Finished motor gasoline (45%)

Distillate fuels (23%)

Kerosene-type jet fuel (8%)

Petroleum coke (5%)

Still gas (4%)

Residual fuel oil (4%)

Asphalt and road oil (3%)

Petrochemical feedstocks (2%)

Liquefied refinery gases (2%)

Propane (2%)

Other (2%)

30 WPC Guide Petrochemical feedstocks Petrochemical feedstocks

result, operational costs, such as transportation, a viable alternative for areas with few fossil fuel The petrochemical sectors of Saudi Arabia, Iran are reduced. Coal-derived feedstock, meanwhile, sources but space for large-scale agriculture. and Qatar use ethane as the main petrochemical is mainly methanol, obtained from a coal-to- feedstock, but securing new ethane supplies has liquids process. Coal can also be gasified to Feedstock and geography become difficult because of high demand from produce feedstocks. Feedstock supplies vary between different regions existing petrochemical plants and the energy Petrochemical Methane, ethane, propane and butanes are and supply trends can change, especially when new. sector. As such, planned petrochemical plants in mainly obtained from natural gas. Naphtha and Ethane feedstock supply has decreased in the the Middle East are based on naphtha feedstock. feedstocks gas oil, as well as benzene, toluene and xylenes, (a Middle East and Canada, for example. New oil and Natural gas production increased in Saudi Arabia, group commonly referred to as BTX) are obtained gas discoveries have impacted on the petro­ Iran and Qatar but it’s not enough to satisfy the Oil, gas and coal provide the from petroleum refineries. Ethylene, propylene chemi­cal industries of the US, Brazil and Canada. requirements. Despite the increases in nat­ural gas and butadiene are the basic building blocks of all In the case of the US and Brazil, both countries production in Saudi Arabia and Iran, ethy­lene hydrocarbons for feedstocks. olefins (also known as alkenes) and these form the have benefited with the respective discoveries of capacity has increased even more. Qatar’s ethane basis for many common products (see diagram on shale gas and pre-salt reserves. production has been restricted because of a mor­ page 34). In Canada, ethane production is down because a­torium on its North Dome gas field. Synthesis gas, also known as syngas, is the term of reduced natural gas supply from the Western The emergence of China’s shale gas and coal for gas obtained from synthesising hydrogen and Canadian Sedimentary Basin. The Canadian petro­ industries has also changed the face of the world’s carbon monoxide, and this can also be converted chemistry sector is now focusing on a discovery of feedstock supplies. This ongoing development in Feedstocks are the various hydrocarbons derived into feedstock. Syngas can also be an intermediate bituminous oil, which now accounts for more China will serve to bolster the country’s growing from the refining of oil, gas and coal. These are by-product developed during the processing of than 50% of the country’s crude oil production, economy. For more detailed information on the then further refined to produce petrochemical­ ammonia, methanol, synthetic petroleum or for meeting future feedstock needs. world’s petrochemical markets, turn to page 82. products. They are the building blocks of synthetic natural gas. Petroleum by-products that petrochemical products. might otherwise end up as waste can be These building blocks are converted into a conserved as feedstock. During the gasfication wide range of chemical products with a wide refining process, any material which contains range of uses. At the feedstock stage, they are carbon can also be converted. usually known as intermediates – then the inter­ Since feedstocks and the end products vary, mediates are processed into plastics, liquids and there are many different production methods (see resins which ultimately are turned into useful page 22). For example, an ethylene-producing products. Some feedstocks, however, are used plant is most likely to use catalytic cracking, a directly to produce petrochemicals, such as technique that uses high pressure and high methane and BTX. But ethane, propane, butanes, temperatures to crack natural gas. But in a naphtha and gas oil are optional feedstocks for methanol-producing plant, a reforming process, steam crackers that produce intermediate petro­ using high temperature steam, medium pressure chemical feedstocks. Other examples of inter­ and a catalyst, will produce the product. mediate feedstocks include ethylene, propylene, While oil, gas and coal are still in plentiful sup­ butenes and butadiene. ply in many parts of the world, alternative sour­ces Gas and oil are the most common starting for petrochemical feedstocks have been devel­ points for feedstocks because they are still readily oped and will continue to be developed as fossil available, can be processed efficiently and are fuels are depleted (see page 102). For example, feed­­ usually less expensive than other raw materials. stocks can be produced from sugar cane, corn and This is why petrochemical companies often build other organic agricultural sources. While there is FPSO Cidade de São Paulo leaving port bound for the Sapinhoá field, offshore Brazil. Pre-salt discoveries, though challenging to extract, will their plants close to oil and gas refineries – as a controversy over using food for fuel, this is seen as have a major impact on the country’s oil and gas industries.

32 WPC Guide Petrochemicals and Refining 33 Petrochemical feedstocks

Methane & Derivatives Ethylene & Derivatives Benzene & Derivatives Propylene & Derivatives Reaction solvent, textile dry cleaning, fire Packaging film, plastic bags, milk bottles, oil Transparent sheets (e.g. aircraft windows, police Rubbing alcohol, pharmaceuticals, coating extinguishing, metal degreasing, grain fumigant, cans, fuel tanks, caps & lids, insulation, pipe & car glass, storm doors, bath & shower doors, solvents, personal care products, aerosols, packaging, auto parts, appliance parts, plumbing tubing, diaper covers, housewares, toys. lighting fixtures), molding & extruding (e.g. tail chemical intermediates (e.g. plastics & rubber & hardware, pens & pencils, lighters, shavers, comonomer (linear low density polyethylene), light lenses, dials & knobs, bathroom plumbing products), carpeting, brushes, rope, tape, toys, molding compound, particle board adhesive, synthetic lubes, chemical intermediate, materials, bottles, medical & dental parts), non-woven fibre, plastic bottles, boxes, foam insulation, automotive parts, furniture, detergent, paper & textile, wax substitute, oil pharmaceuticals, adhesives, paint thinner/ appliance parts. protective coating in latex dinnerware, plastics, gasoline component, single field chemical, mold release, plasticiser, leather cleaner, solvent (e.g. fibre spinning, protective paints, adhesives, ink solvents. extracted cell protein (use as additives and animal feeds), treating, cement additives, cosmetics, corrosion coatings, ink, paper coatings, magnetic tape, lube solvents for oils, perfumes, drugs. plastics, chemical intermediate (e.g. perfumery inhibiter, photo chemicals, non-ionic surfactant, oil dewaxing, rubber processing). polycarbonates leather solvents, coated paper & textiles. chemicals), windshield wash, ethyl alcohol fumigant, sterilising agent, pharmaceuticals, (e.g. transparent plastics), epoxy resins (e.g. apparel, carpet, draperies & curtains, awnings & denaturing, latex paints, lacquer resins, enamel latex paints, antifreeze, polyester fibre & resin, floors & floor coatings, plastic tiles, & blankets, home furnishings, paint rollers, speaker resins, oil additives, leather finishes, paper brake fluid, hydraulic fluid, fibre – apparel, dispensing machines), flame retardant, resins, grills, battery separators. pipe & fittings, coating, textile coating, floor polishes, high household, non-woven, draperies. plastics, plywood adhesives, chemical intermediate automotive parts, appliance parts, business octane gasoline component & oxygenate. lacquer, aspirin, fragrances, pharmaceuticals, (plastic bags, carpeting, cosmetic, perfumes, oil machines, telephones, packaging, luggage, toys. chemical intermediate, starch modifier, solvents - well drilling, food industry, paper industry, medical disposables, industrial parts, boxes & coatings, plastics, general purpose. cosmetics, ceramics), disinfectant, fibre, automotive parts, containers. polyurethane foam, fibreglass Butylenes & Derivatives toiletries, medical applications, chemical feed- film wire, film, cable coating, molded products, composites, food fumigant, chemical Sealants, caulking compound, adhesives, tyre stocks, gasohol, flavours, mouthwash, wood glue. recreational products, oil additives, agricultural intermediate, detergents. solvent, antifreeze, products, lube viscosity improver, adsorbent chemicals, preservatives for fats and oil, latex humectant (creams, lotions, moisturisers), fibre, pipe fabrication. solvent (e.g. vinyl paints, housewares, furniture, appliance parts, preservative, lubricant, softening agent, coatings, acrylic coating), paper and ink Butanes & Derivatives electronic components. cosmetics, hydraulic fluid, cutting oil, suntan manufacture, lube oil dewaxing. Domestic (e.g. space-heating, cooking, lighting, lotion, pharmaceuticals. paper, cements, hot water supply and refrigeration), leisure ( e.g. ceramics, disposable diaper, floor polish. caravans and boats, barbecues and green- Butadiene & Derivatives Xylene & Derivatives houses, camping and outdoor activities, blow Tyres and tyre products, hoses and belts, rubber Plasticisers, dyes, chemical intermediate, apparel, lamps and other hand tools), industrial (e.g. goods, footware, adhesives and cements, sealant Toluene & Derivatives carpet upholstery, tyre cord, conveyor belts, welding, jewelry making/ soldering, aerosol additives, molded products, latex foams, latex Solvents, high octane gasoline component, home furnishings, beverage bottles, coatings, propellants), automotive (fuel for fork lift, trucks, paints, wire and cable coating, coated fabrics, explosives, flexible foams - beddings, cushions, adhesives, films & tapes, molded products, cars, taxis and other vehicles which operate carpet backing. car seats. rigid foams – insulators, refrigerators, hoses, wheels & rollers, insulation, recreational within a restricted radius of their base depots). trucks & rail cars. coatings – marine, varnishes. products, tubing, furniture, pipes, tanks, automotive parts, simulated marble, bowling balls, shower stalls, cements, buttons, auto parts. Gas-to-liquids Gas-to-liquids

after the war, initially using coal as a feedstock in developing GTL plants. Sasol is moving ahead the Escravos GTL plant being built by Chevron and later natural gas as well. with the front-end engineering and design (FEED) and the Nigerian National Petroleum­ Company The original development of synthetic fuels stage of Westlake GTL in Louisiana and is also will help the country eliminate flaring. was subsidised for strategic reasons; Germany looking at a GTL plant in western Canada. Both Brazil also wants to avoid flaring associated gas. and South Africa had large coal reserves but had would use shale gas as a feed­stock. Other com­ For its offshore oil fields Petrobras is evaluating a Gas-to-liquids to import oil. The challenge of subsequent R&D panies are con­sidering projects. project to include a small GTL plant on floating, was to make synthetic fuel production commer­ For countries with abundant conventional gas production, storage and offloading (FPSO) vessels. By Mark Blacklock cially viable, and a number of proprietary­ tech­ resources, GTL is a way of providing high-quality This would produce a synthetic crude (syncrude) nologies using F-T synthesis have been developed. products to the domestic market as well as extrac­ which would then be shipped with the main The gas-to-liquids (GTL) process The basic process (see box) sees methane con­ ting greater value from exports. Qatar Airways, for crude production to be refined elsewhere. offers a means of extracting greater verted to carbon monoxide and hydrogen (syngas) example, plans to fuel its aircraft with a 50:50 value from an important resource. for processing in a reactor to produce paraffinic blend of locally-produced GTL kerosene and con­ GTL plants around the world waxes which can then be refined. The various ventional jet fuel. The resulting GTL jet fuel is not The first large-scale plants using gas as a feed­ proprietary technologies use different combi­ only cleaner but has a higher concentration of stock were commissioned in 1992 by Mossgas nations of catalysts, reactor types and process energy and weighs less than conventional jet fuel. (now part of Petro SA) in Mossel Bay, South Africa conditions. The production phase of GTL uses Flaring gas associated with oil production is (using Sasol’s advanced synthol process), and in more energy and thus entails higher emissions of polluting and wasteful. Nigeria is one of the mem­ 1993 by a Shell-led consortium in Bintulu, Today’s GTL business draws on the pioneer­ing greenhouse gases compared to a standard refi­ bers of the World Bank-led Global Gas Flaring Malaysia (using Shell middle distillate synthesis – work on synthetic fuels carried out by Franz nery, but the end products are cleaner. Reduction (GGFR) public-private par­tner­ship, and SMDS). The Malaysian plant suffered an explosion 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 Processing of natural gas term Fischer-Tropsch (F-T) syn­thesis. However, naphtha for petrochemical feedstock, kerosene After raw natural gas has been treated, there are l Fluidised bed processes, in which syngas Germany’s synthetic fuel pro­duction during World for blending into jet fuel, normal par­a­ffins and three main operations in a gas-to-liquids plant. is passed rapidly at high temperatures through War II (which reached a peak of 50% of consump­ base oils for top-tier lubricants are also produced. Firstly, synthesis gas (syngas) is produced. This is a catalyst bed, such as the Sasol advanced tion in 1943) was largely based on hydrogenation typically a combination of hydrogen and carbon synthol process. This uses an iron-based with F-T pro­duc­tion accounting for about 8% at Monetising gas monoxide in a ratio of 2:1, and four alternative catalyst. It has been superseded by SPD in the the peak. It was South Africa which took the lead GTL is a means of monetising gas resources that methods are used: international market. l Steam reforming of the feedstock in the l Slurry processes, in which syngas is reacted in a in dev­eloping large-scale F-T liquefaction plants are abundant, undervalued or wasted by flaring. presence of a catalyst. slurry with a catalyst and molten wax A barrel of oil has roughly six times the energy l Partial oxidation – oxygen is separated from (produced in the reactor), such as the Sasol of a million Btu (mmBtu) of gas. Oil has traditionally nitrogen in a cryogenic air separation unit slurry phase distillate (SPD) low-temperature traded at a premium to gas given the ease of refin­ (ASU) and burned with natural gas at high process. This uses a cobalt-based catalyst. ing it to produce a range of products, but this pre­ temperatures and pressures. Alternatively, air l Fixed bed processes, where the syngas mium is increasing in some markets. At the time may be used instead of pure oxygen. flows through tubes containing catalyst, such of the 19th World Petroleum Congress in 2008, l Autothermal reforming, where partial oxida­tion as Shell middle distillate synthesis (SMDS). This for example, the oil price of $147/b and the US is combined with steam reforming. uses a cobalt-based catalyst. Henry Hub price for gas of $13/mmBtu meant the l Gas-heated reforming of natural gas with The synthetic crude is then converted oil premium was about 100%. With the Henry Hub steam and oxygen. into marketable petroleum products using price now around $4/mmBtu the US oil premium Then Fischer-Tropsch synthesis converts syngas conventional petrochemical upgrading processes, into paraffinic hydrocarbons, a waxy synthetic depending on the final slate of products required is 370%. crude. There are three principal types of process: by the plant operator. It is the flood of unconventional gas which has Professor Franz Fischer (left) and Dr Hans Tropsch carried out pioneering work on synthetic fuels. driven US prices down and is now driving interest

36 WPC Guide Petrochemicals and Refining 37 Gas-to-liquids Gas-to-liquids

Petro SA’s 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 HH Sheikh Hamad bin Khalifa Al-Thani, Emir of Qatar (second right) inaugurated Pearl GTL in a ceremony on November 22, 2011, paraffinic wax initially constrained output, and it current oil prices. Escravos will use SPD. accompanied by HE Abdullah bin Hamad Al-Attiyah, Deputy Prime Minister (left), Peter Voser, CEO of Shell (second left) and HE took several years to resolve the problems and However, the largest GTL plant, Pearl in Ras Mohammed bin Saleh Al-Sada, Minister of Industry & Energy (far right). 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 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 SMDS was proved at the Bintulu GTL plant in Malaysia. plant on the US Gulf Coast. syngas, meaning there is no need for a separate

38 WPC Guide Petrochemicals and Refining 39 Gas-to-liquids

Syntroleum’s proprietary F-T process also uses air rather than oxygen and the company was evalu­ ating a number of GTL projects but is currently con­ centrating on biomass-to-liquids ventures. A Japanese consortium has developed a pro­cess

that allows natural gas containing CO2 to be used directly as a feedstock rather than having to be treated first. Japan GTL was suc­cessfully trialled at a 500 b/d demonstration plant in Niigata bet­ween April 2009 and December 2011 by Inpex, Nippon Oil & Energy, Japan Petroleum Exploration, Cosmo Oil, Nippon Steel Engineering and Chiyoda in cooper­ation with Japan Oil, Gas and Metals Nat­ ional Corporation (JOGMEC). Commercial oppor­ Escravos GTL is due to start up in late 2013. tunities are now being sought.

oxygen plant and a GTL plant can be integrated on a Growing importance vessel. The capacity of the plant can be adjusted to By late 2013, GTL production will exceed 250,000 match the declining flow of associated gas through­ b/d. While this is still a small proportion of the out the life of an oilfield, with plant modules overall market for refined petroleum products, a being shut down and removed for refurbishment high oil price and premium over gas mean the and/or re-deployed elsewhere. sector is set to grow in importance. A modular unit has been tested at the Petrobras research site in Aracaju and it has been app­roved Mark Blacklock is the Editor-in-Chief of Inter­national for commercial deployment. Systems and Communications.

GTL plants in operation, under construction and in FEED

Name/Location Partners F-T Process Capacity (b/d) Status/Notes Pearl, Ras Laffan, Qatar Qatar Petroleum, Shell middle 140,000 Operational Shell distillate synthesis Oryx, Ras Laffan, Qatar Qatar Petroleum, Sasol Sasol slurry phase distillate 34,000 Operational Mossel Bay, South Africa Petro SA Sasol advanced synthol 22,000 Operational Sasolburg, South Africa Sasol Sasol synthol 15,600 Converted from coal to gas feedstock in 2004 Bintulu, Malaysia Shell, Diamond Gas Shell middle 14,700 Operational (owned by Mitsubishi), distillate synthesis Petronas, Sarawak govt. Escravos, Nigeria Chevron Nigeria, Nigerian Sasol slurry phase distillate 32,400 In service late 2013 National Petroleum Co. Shurtan, Uzbekistan Uzbekneftegaz, Sasol, Sasol slurry phase distillate 38,000 FEED underway, Petronas projected start-up in 2018 Westlake, USA Sasol Sasol slurry phase distillate 96,000 FEED underway, projected start-up phase 1 2018, phase 2 2019

Note: Sasol’s Secunda plant in South Africa uses a mix of coal and gas feedstock.

40 WPC Guide Alcohols Alcohols

food oils for food production rather than products used as an automotive anti­freeze as well as in brake aldehyde, the starting point for many products. such as fuels and plastics, and the uncertainty fluid and man-made fibres. It is also mildly toxic. The hydroformylation reaction and then the hydro­ created by weather for palm kernel harvests, Propylene glycol is similar in its physical proper­ genating of the aldehyde is performed to obtain which impacts on feedstock availability. ties to ethylene glycol, but it is non-toxic and used the alcohol. An intermediate step of adding two Well-known alcohols include ethanol (also known heavily in food preservation, cosmetics and dental aldehydes together to obtain a larger aldehyde as ethyl alcohol or grain alcohol), methanol (also hygiene products. Other important glycols inc­ can be performed before the hydrogenation. Gas, Alcohols known as methyl alcohol or wood alcohol) and lude1,3-butanediol, which is used in the manu­ rather than oil, is widely used in the oxo process, isopropyl (commonly known as rubbing alcohol facture of brake fluid and plasticisers for resins; which is based on the reactions of olefins with car­ Alcohols can be created from or surgical spirit and is usually composed of around 1,4-butanediol, which is used in polyurethanes, bon monoxide and hydrogen. hydrocarbons and their applications 70% ethanol), glycols and oxo alcohols. Alcohols polyester resins for coatings and plasticisers, and Major oxo alcohols that are used commercially are many and varied. are also used as intermediates in the synthesis of for making butyrolactone, a solvent and chemical include 2-methyl-2-butanol (2M2B), n-butanol, other compounds. intermediate; 2-ethyl-1,3-hexanediol, which is used 2-ethylhexanol, isononyl alcohol and isodecyl in insect repellent; and 2-methyl-2-propyl-1,3- alcohol. The main global manufacturers of oxo Ethylene and ethanol propanediol, which is used in the production of a alcohols include BASF, Dow Chemical Company, Ethanol is manufactured by synthesis from ethy­ tranquillising drug. Eastman Chemical Company and ExxonMobil. lene. It is an oxygenated hydrocarbon and it is Oxo alcohols are used as solvents and coatings used in a wide variety of solvents. It can be found Methanol and in the manufacture of pharmaceuticals, Over the years, efficient processes have been in dyes, detergents, disinfectants, toiletries, cos­ Methanol is produced from carbon monoxide and flavour­ing agents, plastics, dyes and cosmetics. developed for the mass manufacture of alcohols metics, paints, lacquer thinners, inks and pharma­ hydrogen. It is used in the production of formalde­ They are also reacted with phthalic anhydride to from hydrocarbons from the refining of oil and ceuticals. It also acts as a chemical raw material for hyde, acetic acid and methyl methacrylate (MMA) for phthalates which are used to manufacture gas. These processes allow for economically viable producing monomers. In transportation, it can be as well as a solvent. In the transportation industry, vinyl plasticisers. production of aliphatic alcohols (“Aliphatic” refers used as a fuel by itself, it can be blended with gaso­ it is used to produce methyl-tert-butyl-ether (MTBE), to any organic compound in which the main line or it can be used as a gasoline ethane enhancer. which is used as an octane booster in fuel as well struc­ture of a chain of carbon atoms joined to each Large quantities of ethylene are also used to as a gasoline compound. Formaldehyde is mainly other). They are created via the hydration of ole­ create acetaldehyde, acetic acid, acetate and ethyl produced by the vapour-phase oxidation of meth­ fins, the air oxidation of paraffins and using syn­ alcohol. Ethylene oxide, as well as propylene anol and large quantities are used to manufac­ ­ture thesis reactions, such as catalytic hydroformu­la­ oxide, are important in petrochemical synthesis as many resins and plastics. tion of olefins with carbon monoxide and hydrogen. they are used for the production of glycols, Acetic acid is an intermediate used in the pre­ Alcohols all have the signature hydroxyl group surface-active agents, and ethanolamines (which paration of metal acetates, some printing pro­ces­ OH, which is bound to a carbon atom. The general are prepared by the reaction of ammonia and ses, vinyl acetate (used to make industrial chemi­ formula for alcohols is R–OH, where the R group ethylene oxide and widely used as absorbents for cals, glues, packaging, paints, paper, coating­ for can represent the alkyl, alkenyl, or alkynal groups. acidic components of natural gas and petroleum plastic films and as a modifier of food starch), Alcohols are capable of being con­verted to metal refinery gas streams, as well as detergent and acetic anhydride (used in photographic film and salts, alkyl halides, esters, aldehydes, ketones and cosmetics uses and as a cement additive). other coated materials, aspirin production and as carboxylic acids. a wood preservative) and volatile organic esters, Petrochemical-derived alcohol derivatives are Glycols such as ethyl and butyl acetates (primarily used as often perform better than other types of alcohols Glycol is the term for any class of organic com­ solvents in nail care products). (such as that derived from palm kernel oil, known pounds that belong to the alcohol family. The term is as “oleo-derived alcohols”) because of higher for­ often broadly applied to the simplest member of the Oxo alcohols mulation flexibility. Other reasons to choose petro­ class, ethylene glycol. It is produced­ commercially Oxo alcohols are prepared by adding carbon mon­ chemical-derived alcohols over oleo-derived­ alco­ from ethylene oxide, which is obtained from oxide and hydrogen – usually combined as a syn­ Part of BASF Petronas Chemicals’ integrated site at Kuantan, hols include: a growing global preference to use ethylene (see above). Ethylene glycol is commonly thesis gas – to an olefin. This blend creates an Malaysia producing oxo alcohols and syngas.

42 WPC Guide Petrochemicals and Refining 43 Petrochemicals in healthcare and cosmetics Petrochemicals in healthcare and cosmetics

In the world of cosmetics, petrochemicals have bacterials, rectal suppositories, cough syrups, played a big role in the mass production and lubricants, creams, ointments, salves, analgesics Petrochemicals afford­ability of products that can be found in and gels. bathroom cabinets the world over. Petrochemical resins have also been used in in healthcare drug purification. These resins simplify mass pro­ Healthcare duction of medicine, thus making them more and cosmetics Petrochemicals are used in healthcare products, affordable to produce and then distribute. The from the most commonplace to the highly speci­ resins have been used in the production of a wide By Georgia Lewis alised. An everyday example is ASA – or Acetyl­ range of medications including those for treating salicylic acid – an important part of many over- AIDS, arthritis and cancer. the-counter pain medications. Plastics play an important role in healthcare Petrochemical productss have been Plastics are used in the manufacture of surgical gloves, petri developed for a wide range of While penicillin, a drug that has saved countless too. Resins and plastics from petrochemicals dishes and other laboratory equipment. lives since its discovery by Alexander Fleming in are used to make artificial limbs and joints. They applications across the healthcare 1928 and subsequent development by Howard are also a familiar sight in hospitals and other are also made of plastic. Even safety has improved and cosmetics industries. Florey and Ernst Chain in the 1940s, is manu­ medical facilities for storing blood and vaccines, thanks to the introduction of child-proof caps and factured via fungi and microbes, phenol and for use in disposable syringes and other items of tamper-proof seals for medication containers, all cumene are used as preparatory substances. medical equipment that are used once to prevent made using plastics. Surgical gloves are often Petrochemicals play a big role in the manufacture These sub­stances are also used in the production the threat of contagion. Specially created poly­ made from pliable plastics, plastic petri dishes are of many healthcare and beauty products. Many of aspirin, with acetylsalicylic acid being aspirin’s mers are used extensively in healthcare, most essential to laboratories and at a larger level, for advances in healthcare and sanitation have been main metabolite. notably during cardiac surgery or for auditory and the housing of large diagnostic medical machinery. made possible by the use of petrochemicals and Other common medical products, some avail­ visual stimulators. As well as petrochemicals playing an important there is a long history of their use, with oils first able by prescription, some over-the-counter, that Eyeglasses have benefitted from the use of role in the manufacture of pharmaceuticals and being used in medicines at least 1,000 years ago. use petrochemicals include antihistimines, anti­­ plastics in frames and lenses and contact lenses medical equipment, petroleum use through

Historical packaging for Aspirin on display at the Apothecary Museum in Heidelberg, Germany. The drug was first developed by Felix The main use of petroleum products in healthcare is actually in transportation fuel. Finding alternative means of power, especially for Hoffmann, a chemist working for Bayer, and was brought to market in 1899. emergency response vehicles, may become an issue in the future.

44 WPC Guide Petrochemicals and Refining 45 Petrochemicals in healthcare and cosmetics Petrochemicals in healthcare and cosmetics

transport­ is a major cost to healthcare systems mineral oil. Phenoxyethanol is a very widely used limited to use as a moisturiser or emollient, par­ globally, including ambulances, staff transport and ingre­dient in cosmetics but it is only used at less ticularly in regard to manicures and pedicures. transportation of supplies. Indeed, in the United than 1% of the product composition, which is the Microcrystalline wax is less brittle and more States, according to US Bureau of Labor Statistics legal maximum in most countries. It is an oily, malleable than paraffin wax, is more compatible figures, it is estimated that the use of petroleum slightly viscous fluid that smells faintly of roses. It with oils and often contains 1%-4% mineral oil. As pro­ducts in transport for healthcare is far greater is used in many skincare products, eye makeup, such, it is widely used in the cosmetics and per­ than that used for drugs and plastics. The ongoing fragrances, blushers, deter­gents, baby pro­ducts, sonal care industry. It is especially useful in lip­ supply of the fossil fuels required to make all sunscreens and cuticle softeners. It is synth­esised sticks and lip balms to prevent the product from these relevant healthcare products may become a for use in commercial cosmetic products. “sweating” and is also commonly used in baby bigger issue as time goes on and if healthcare sys­ Waxes are an important group of ingredients products, makeup, nail care, skincare, hair care, tems are placed under further financial pressure. for the cosmetics industry and while some, such fragrance and sunscreen. Finding alternatives to using petrochemicals as lanolin, are animal waxes and others, such as Mineral oil has a broad range of applications for many medications and items of medical equip­ jojoba, are plant waxes, mineral waxes and both in and out of the cosmetics and personal ment may become important if healthcare is to synthetic waxes are derived from petrochemicals. care industry. It is used in products that condition remain accessible or, for some regions, to become Mineral waxes used in cosmetics include or protect the skin and hair and as a solvent. more accessible. In the United States, the Center ozokerite, paraffin, microcrystalline wax, ceresin Medically, it is used in laxatives, and it is also used for Disease Control is investigating the impact of and petrolatum. as a release agent for non-stick bakeware. It is a An employee using a homogeniser at BASF’s cosmetics lab in dwindling petroleum reserves on the provision Ozokerite is a naturally occurring mineral wax mixture of liquid hydrocarbons produced from Ludwigshafen, Germany. The machine stirs ingredients at high of healthcare. but it is also produced as a mixture of micro­ the distillation of petroleum and then refined so it speed to produce finished skincare products. Going forward, the healthcare industry may crystalline wax, paraffin wax and other natural is suitable for commercial use. have to look at alternatives to using petro­ waxes that match the properties of ozokerite. It is Petrolatum is best known in its commercial foamy lather is desirable and the aim is to clean chemicals for pharmaceuticals and plastics al­ often used in creams because of its thickening form as Vaseline, the popular petroleum jelly and soften the skin. though currently there are few alternatives. How­ and emulsifying properties. Ceresin is usually a product. Petroleum jelly is a semi-solid wax that Polysorbates also contain ethylene oxide chains ever, as only a tiny proportion of petrochemicals is type of paraffin wax or it is made from a blend of can be used as an emollient and lubricant and is and are widely used in the cosmetics industry. The used to produce specialised products for the petroleum waxes. It has similar properties to ozo­ also used as a bodifying agent to improve the polysorbate ingredients used are numbered 21, healthcare industry, the supply chain for such kerites so is generally used for similar applications. viscosity of cosmetic products. 40, 60, 61, 65, 80, 81 and 85 and they are a series of products is currently considered to be secure. Paraffin wax is a refined mixture of solid cryst­ Synthetic waxes are made by blending low general purpose surfactants. Main uses include alline hydrocarbons. However, it is more brittle in molecular weight polymers of ethylene. Synthetic skincare products such as fresheners and cleans­ Cosmetics texture than ozokerite and not very compatible beeswax is made from a blend of fatty esters, fatty ers, makeup bases, foundations, shampoos, fra­ The production of cosmetic products makes up a with mineral oil so its cosmetic uses are generally acids, fatty alcohols and high molecular weight grances and products for creating permanent very small proportion of global petrochemical hydrocarbons. waves in hair. use. However, they are products which many of us Myreth, oleth, laureth and ceteareth ingredients Other petrochemical ingredients have been use on a daily basis and, as such, the role of petro­ are produced by reacting the starting material banned or restricted. Benzene, for example, has chemicals in their manufacture has generated a with ethylene oxide and are root names for groups been identified as a Class A carcinogen and ban­ lot of attention. While there has been a push of ingredients, usually followed by a number, such ned as a cosmetic ingredient in the USA, the Euro­ towards “all-natural” ingredients in cosmetics in as “ceteareth-15”. The number is usually, although pean Union, Australia, China and Japan. Toluene, recent years as well as much debate over whether not always, related to the average length of the meanwhile, is only used in very tiny quan­tities in petrochemicals are safe to include in cosmetics, ethylene oxide chain attached to the root mole­ the cosmetics industry as an ingre­dient in some petrochemicals are a common component of cule. Some of these root molecules may also be nail products, such as certain nail varnishes. many popular beauty products. derived from petrochemical sources. Com­bina­ Common petrochemical-based ingredients of tions of these ingredients are used in mainly in Georgia Lewis is the Deputy Editor of International NIVEA Creme, in production since 1911, contains many cosmetics include phenoxyethanol, waxes and ingredients derived from petrochemicals. soap and cleansing products where creating a Systems and Communications.

46 WPC Guide Petrochemicals and Refining 47 Petrochemicals in healthcare and cosmetics

Are petrochemicals toxic in cosmetics? By Dene Godfrey

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 Join us 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. VISIT ALBERTA While there are environmental issues surround­ There is no natural source for these ingredients and WHAT YOU CAN EXPECT ing the exploration, extraction and refining of oil, all usage in cosmetics is from synthetic production. • 1500 – 2000 international delegates the singling out of the cosmetics industry for Many products which claim to be “all-natural” • Network with international energy experts 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. • Share technical innovations and sustainable energy solutions provide ingredients for cosmetics, sustainability is Dene Godfrey, a scientist, council member and • Engage industry peers on local and global energy issues 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 Information zoate and/or potassium sorbate which are both in the cosmetics industry and the safety issues. This 2013 WPC Youth Forum Committee petrochemicals, albeit ones that exist in nature. is an edited version of his article, Petrochemicals: [email protected] These ingredients require a multi-stage synthesis Confusion and Hypocrisy and 100% Natural? + 1 604 661 4953 with many petrochemicals involved along the Almost 100% Certainly Not, first published on Please visit our website for more information about the conference. way, but this does not make them any less safe. www.personalcaretruth.com

2013YouthForum 2013YouthForum www.wpcyouthforum.com 48 WPC Guide Petrochemicals in computers and electronics Petrochemicals in computers and electronics

The use of petrochemicals has revolutionised While there is a strong drive today towards the electronics sector through research, develop­ storing data online, CDs and CD-ROMs are still ment and invention – as a result, the electronics widely used. Most CDs consist of a clear Petrochemicals industry is thriving as a global concern worth polycarbonate, derived from benzene, cumene billions of dollars and creating an enormous or bisphanol. This polycarbonate is easy to in computers number of jobs. mould and thermoform. It is impressed with Virtually no electronic need is too big or too tiny bumps which are arranged as a long spiral and electronics small for plastics to play a role, whether it is the track of data. This is then covered with an rugged plastic required for water-resistant radios aluminium layer and then a thin layer of spray- By Georgia Lewis used by fire-fighters and light-socket canisters on on acrylic is added for protection. Finally, a drilling rigs or more delicate applications, such as label can be printed on the finished product. Compact disc cases are made from polystyrene. So many of the electronic products microwave transmission and heat-resistant auto­ The plastic boxes in which CDs are usually we take for granted have been motive fuses. stored are made from polystyrene, another are just three products which have become created thanks to petrochemicals. There are many benefits to using petrochemical- petrochemical-based product. steadily smaller and this has been aided by derived products to manufacture computers and l Smaller size Plastics are useful for making advances in plastics technology. elec­tronics. The latest electronic devices utilise new smaller components, especially those which l Safety Plastics with thermal and insulating generation plastics because of their special features. cannot be seen. Nearly half of all plastics used properties insulate almost all building wiring These include mobile phones, television sets, CD l Resource-efficiency Liquid crystal display (LCD) in the electronics sector are for cable sheath­ today and are used in switches, connectors players, radios, DVD and Blu-Ray players, games flat screens, commonly used in televisions and ing and small internal components. An obvious and receptacles. consoles, cords, cables and devices such as iPods. computer monitors, are made of liquid crystal­ use of petrochemicals in computers is micro­ Fires can start from electronic sources so Computers are educational as well as economically line plastics which use at least 65% less electri­ chips, made using plastics which are cheaper flame-retardant materials are important to essential, electronics have paved the way for city than screens with cathode ray tubes. Poly­ to produce than sand-based silicone. manufacturers of electronic goods. Most improved international communication and even mers are also useful for storing energy for longer. The ongoing miniaturisation of circuit boards commonly, a polymer will be formulated improved medical procedures – without Modern refrigerators are insulated with and components such as computer chips, especially for each application for maximum petrochemical-derived plastics, very little of this thermal -efficient plastic foam with interiors relies on high-performance plastics to provide resistance to fire and heat. Plastics are also would be part of our everyday lives. made of durable, easy-to-clean plastics. Other tough, dimensionally stable parts that can used to improve safety when used for insula­ large appli­ances, such as dishwashers, are withstand the stress of assembly and use. With tion on items such as cords and cables as well sporting more and more plastic components. plastics, electronic designers decrease size as the devices and appliances themselves. l Light yet strong Plastics are lightweight as while increasing the functionality of circuitry in On a basic level, smoke detectors made with well as being durable, attractive and cost- consumer, business and industrial appplications. plastics, have become standard fixtures in effective. As such, they are used in nearly all of Another innovation has taken place between modern homes, cutting down on fire deaths small appliances, such as coffee makers, irons, the German Research Foundation and the and property losses. electric kettles, mixers, hair dryers, food University of Erlangen to develop polyether­ l Resistance Resistance to electromagnetic processors, microwave ovens and shavers. ether­ketone (PEEK), which are heat-resistant radiation, mechanical shocks and stress, Films of polycarbonate are used to create the films which can replace rigid printed circuit combined with durability and flexibility, make touchscreens used on products such as tablets boards and can be produced as a lightweight, plastics ideal for applications such as safe, and smartphone – this eliminates the need for miniaturised alternative. efficient power supplies. a heavy keyboard. Light, strong plastics are The extensive use of strong, lightweight l Cost benefits Plastics have improved the also used for phone handsets and MP3 players. plastics in the computer industry is also largely durability, weatherability and chemical Also, keyboards and computer housings are thanks to the miniaturisation of many products resistance of many electrical products. As a The most visible use of petrochemicals in electronics is the plastic made from styrenic plastics which have the – they need to be light, strong and durable. result, cost savings are made with increased coating on wiring, clearly demonstrated in this Danish telephone exchange. advantage of being light and strong. Mobile phones, digital cameras and laptops product life, estimated at 50%. Today’s most

50 WPC Guide Petrochemicals and Refining 51 Petrochemicals in computers and electronics Petrochemicals in computers and electronics

made from conductive polymers offer high important components and to ensure the pro­ separated at the point of recycling, such as separ­ power and low weight. The optical properties ducts we take for granted constantly improve. ating those with and without flame retardant. of polymers also help with facilitating the flow Governments and businesses are recognising of data over long distances. End of life measures for plastics in electronics the economic opportunities that can be gleaned Improvements in design, aided by the use of In response to concerns about what happens to from recycling and proper end-of-life protocols many plastics, has also seen many com­mon plastic in obsolete electronics, infrastructure for for electronics, including the plastic components. products evolve for the better – an obvious recycling plastics used in electronics has been, or Indeed, the Minnesota Office of Environmental example is mobile phones which have become is being, developed in many countries. This is be­ing Assistanced deemed the recycling of electronic smaller, lighter and more practical thanks to done via government-run schemes, such as those thermoplastics as “the single greatest opportunity for improvements in micro-technology and plastics. organised by local authorities in Britain and the adding revenue to the electronics recycling process.” The basic materials for printed electronics are functional The world of electronics has advanced to the United States, as well as private companies, such The market for recovered plastics is growing electrically conductive or semiconductive polymers. These soluble point where products can entertain and edu­ as Envirofone, a European recycler of mobile phones. with many product and industry applications polymers are printed as a type of electronic ink. cate, such as sophisticated electronic toys. End-of-life options for the plastics used in elec­ under development. These include: compact disc popular appliances would cost at least 25% Home computers play multiple roles for tronics include: feedstock recycling, mech­anical re­ covers, camera casings, automotive parts, con­ more to produce and consume at least 30% families, including budgeting, corresponding, cycling, energy recovery (which is be­coming more struction, shipping and concrete. more energy than similar products without playing games and working from home. All popular in European markets) and safe landfilling. plastics. In short, plastics make electronic these machines depend on plastic housings, Technology has advanced to the point where Georgia Lewis is the Deputy Editor of International products practical and economical. Use of circuit boards, components and packaging. different types of plastics can be detected and Systems and Communications. plastic has made products such as television Computer electronics will continue to play a sets far more accessible to more people large role in the home – as well as improved app­ globally with the cheaper production costs liances, builders have shown that it is possible Types of plastics used in electronics and corresponding drop in retail prices. to build “all-electronic houses” with computers Different types of plastics perform different roles l Polyamide Adaptors, food processor bearings. l More efficient manufacturing With com­ controlling lights, climate control, humidity, in the manufacture of electrical products. Here l Polycarbonate Telephones. puters playing a bigger role in the automated security systems, appliances and home enter­ are some common types and their main uses: l Polyesters Switches, electrical insulation. production lines of many modern factories, tainment units - again, all this requires plastics l Acrylonitrile butadiene styrene (ABD) l Polyethylene Electrical insulation. manufacturers rely heavily on a wide range of that are durable as well as those that are delicate. Computer housings, monitors, keyboards, l Polymethyl pentane (PMP) Circuit boards. l Polyphenylene oxide (PPO) TV housings, plastics for control panels, housings, wiring A new era for plastic electronics is here, telephone handsets. l Alkyd resins Circuit breakers, switch gear. coffee machines. boards, sensors and robotic components. based on inherently conductive polymers l Amino resins Lighting fixtures. Useful l Polyphenylene sulphide (PPS) Transformers, l Medical electronic applications Electronics (ICPs) and flexible substrates. Products which because of low conductivity. hairdryer grilles, element bases, moulded play an important role in the field of medicine will use ICPs, which have been developed by l Epoxy resins Electrical components. interconnect devices. Replaces ceramics in – devices such as scanners and X-rays which Nasa, include anti-static coating, rechargeable l Ethylene vinyl acetate (EVA) Handle grips, high-performance electrical components used allow early detection of medical conditions batteries, radio frequency identification (RFID) fridge-freezer door seals, vacuum cleaner in high-frequency applications. without invasive exploratory surgery rely on and organic light-emitting displays (OLEDs) for hoses. l Polypropylene Kettles. radiation-transparent plastic materials used in computers and mobile phones, flexible solar l Liquid crystal polymer (LCP) Moulded inter- l Polystyrene Refrigerator trays and linings. X-ray tables. These permit lower strength panels that can be laminated to walls and connect devices. Replaces ceramics in high- l Polysulphone Microwave grilles. radiation to be used effectively. ceilings or used to as a source of energy for performance electrical components used in l Polyvinyl chloride (PVC) Cable trunking, l Innovation and new advances Due to a portable equipment. high-frequency applications. cable and wire insulation. l l Styrene acrylonitrile (SAN) Outer covers of strong commitment to research and develop­ The multifaceted uses of petrochemicals Phenol formaldehyde Fuses boxes, switches, handles. electrical devices, battery housings, air ment, plastics in the electronic sector are con­ have proven to be a great boon to the elec­tro­ l Polyacetal Also known as polyoxymethylene conditioning components. stantly evolving. An example of this is lithium nics sector. The electrical goods and electronic (POM), used in electrical appliance housings. l Urea formaldehyde Fuse boxes, switches. batteries which can now be made from re­ industries will continue to rely heavily on the cycled plastic bags. Plastic batteries that are petrochemical products and industries for many

52 WPC Guide Petrochemicals and Refining 53 Transport and Automotive Uses Transport and Automotive Uses

reliant on the use of petrochemical-deri­ved products. Roads, too, are constructed with the assistance of petrochemistry. Transport and Petrochemicals in car production Automotive Automotive bodies and components benefit from the light weight, design flexibility and durability Uses of many petrochemical products. Petrochemical products are generally easy to process and more cost-efficient for the manufacturer because of avail­ By Georgia Lewis ability and reduction in vehicle assembly time. The use of butadiene for The light weight is a particular bonus because car tyres has greatly The petroleum industry does more improved safety, especially this translates into energy savings for the end user. in wet weather. than provide fuel for vehicles. In a modern car, around 100kg of petrochemical-­ Nylon’s contribution to car safety is most dramatically demonstrated in the deployment of airbags based plastics can replace 200-300kg of traditional materials. The average car now con­tains 120kg of ethylene in the manufacture of cars include res­er­ seats made from petrochemical-based products, plastics, comprising 15-20% of its total weight. voirs for wiper fluid, brake fluid and coolant, as well as such as styrene-based plastics, have been dev­ The petroleum industry has had a very obvious With this increased use of strong, lightweight flexible parts, such as suspension dust covers. eloped to meet crash test standards. Such seats role to play in the world of transport by providing plastics in cars, the environmental outcomes are Other plastics that are commonly used in car have helped reduce the death rate from motor the fuels that power vehicles across the world. impressive – the lighter weight of plastic compo­ production include dodecyl mercaptan, used for vehicle occupant-related injuries among children While hybrid, hydrogen and electric technology nents means fuel economy can be improved by headlight lens covers, and dodecyl disulphide, aged 14 and under. are all improving and becoming more cost-effec­ 25-35% and for every kilogram of weight lost, the used for brake light covers. Styrene, a clear liquid, is used to make acrylo­ tive, oil will still be used as fuel to power vehicles car will emit 20kg less of carbon dioxide over its Petrochemical-derived synthetic rubber tyres nitrile butadiene-styrene (ABS), a heat-resistant for many years to come. But oil also has a vital role operating life. have improved car safety with their excellent thermoplastic widely used in automotive parts, to play in terms of the petrochemical products An example of a lightweight petrochemical- road-holding abilities, especially in wet conditions. including headlight covers and moulded plastic which are essential to the modern trans­port derived product with multiple uses is Chevron’s Synthetic rubber is derived from petroleum, as interior parts. Seatbelts and airbags also rely on industry. Indeed, the cars, buses, motor­cycles, Ryton PPS. Made from polyphenylene sulphide opposed to natural rubber, which is obtained petrochemical-derived products for their manu­ trucks and aeroplanes of today are all heavily (PPS), it is a lighter weight, high performance from certain tropical trees and this is commonly facture. Styrene-butadiene latex is used to make engineering thermoplastic. It is used in parts used on aircraft and bicycle tyres as well as auto­ carpet backing for vehicles. exposed to high temperatures, automotive fluids motive vehicles and motorcycles. Styrene butadiene- Polyalphaolefins (PAOs) are base oils which are and mechanical stress, such as brake systems, fuel rubber (SBR) is a common synthetic rubber used not only used to manufacture fluids, oils and lub­ systems, transmission systems, coolant systems for tyres, belts and hoses because of its excellent ri­cants when mixed with other additives, but can and induction systems. It is also used in car light­ abrasion resistance and durability. Another syn­ also be used in seat covers and other automotive­ ing, for powertrain components and electrical thetic rubber widely used in the automotive fabrics that require low volatility. com­ponents. Ryton PPS compounds are also used industry is thermoplastic olefin rubber (TPO). It is Other fabric-related uses for petrochemicals inc­ in automotive fluids, such as brake fluid and used for parts such as interior and exterior trims, lude cyclohexane, a feedstock for nylon. This is com­ power steering fluid. door seals, arm- and headrests, consoles, airbag monly found in seatbelts and carpets, but nylon High density polyethylene gasoline tanks have covers and instrument panels. Cyclohexyl mer­ resins are also used in engine covers, air intake helped prevent countless fires. This is because of captan is another petrochemical used in the auto­ manifolds, airbags, reservoirs and in air con­ their excellent shape-resistance. In the event of a motive world to vulcanise rubber for tyres. ditioning components, such as fans. Para­xy­lene is collision, the tank holds its shape, petrol does not Phenolic resins are used in binders for friction a feedstock for polyester, found in seat fab­rics, Plastics have superseded glass in the manufacture of car headlight covers. leak and a fire cannot start. Other uses for poly­ materials in brakes and clutches, and car booster headliners and carpet, as well as radial tyre cord.

54 WPC Guide Petrochemicals and Refining 55 Transport and Automotive Uses Transport and Automotive Uses

fpo

Combining petrochemical products with asphalt such as this application of Total’s Kromatis in a tunnel at Lodeve, France can greatly Motorsport teams form close, mutually-beneficial partnerships with oil companies – exemplified by multiple F1 championship winning improve road legibility. Red Bull Racing and Total.

Products associated with car maintenance also coloured – its use helps mark traffic areas clearly, Formula One teams, World Rally Championship to reach 50% in 2013. Ethylene and propylene rely heavily on petrochemicals, such as antifreeze such as bus lanes, improving safety. Teams and Moto GP teams form partnerships with glycols are used in products, similar to car and radiator coolant, which is often produced oil companies in order to provide high quality antifreeze, to help aeroplanes take off in winter using ethylene glycol. Hydraulic brake fluids and Motorsport uses fuels, lubricants and other specialised additives weather conditions. petroleum demulsifiers are also made with ethy­ Motorsport is heavily reliant on a range of for the racecars. For example, in the world of lene glycol. Other petrochemicals used to make petrochemical-derived products, Such as carbon Formula One, Red Bull is in partnership with Total Georgia Lewis is the Deputy Editor of International car maintenance products include polysulphides fibre, used to make lightweight body parts. To and Ferrari Scuderia is in partnership with Shell. Systems and Communications. for engine lubricants and sulfolene for trans­ improve the power-to-weight ratio, carbon fibre Petro­chemical experts are required to create mission fluids and other base oil formulations. and other plastics are used extensively.­ This is an products such as additive for cold resistance, example of how motorsport tech­nology transfers enhanced combustion and efficient, cleaner- Road construction uses to passenger cars, which are featuring more plas­ burn­ing fuels and lubricants. Road 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 Aeronautical uses fining, has long been used on roads, motorsport being used more extensively. Like the automotive and motorsport industries, race tracks and footpaths. Companies such as The E20 chassis designed for the Lotus Formula the aeronautical industry relies heavily on petro­ Total have further developed asphalt with addi­ One team uses carbon fibre for the top and bot­ chemicals. Composites derived from petrochemi­ ­ tional ingredients to create high-performance tom wishbones of the suspension and moulded cals can save more than 30% of the weight of an surfaces. Total’s two flagship asphalt products, carbon fibre is used in conjunction with an aircraft structure. Keeping components light is Styrelf and Kromatis combine standard asphalt aluminium composite for strength and light­ essential on aircraft and the weight of every item with elastomers to provide road surfaces that are weight efficiency. The car also features a synthetic counts, right down to the plastic used in the elastic, cohesive and adhere well to the ground. rubber fuel cell reinforced with Kevlar, another miniature spirit bottles. Since the 1970s, the use Kromatis, meanwhile, is used for urban roads and petrochemical-derived product, and a seat made of plastics in the manufacture of aircrafts has Kevlar honeycomb, exhibits great structural strength while consisting of 90-99% open space, an important consideration in it can be cold-mixed or hot-mixed and bulk- from an anatomically formed carbon composite. increased from 4% to almost 30% and is expected the aerospace industry where weight is at a premium.

56 WPC Guide Petrochemicals and Refining 57 Petrochemicals in the construction industry Petrochemicals in the construction industry

reliant on traditional materials and methods and protection from water for buildings. It is applied opportunities for innovation are offered through between a building’s outer cladding and frame. substances such as plastics and resins. Petrochemicals The main uses for plastics in construction Elastomer, epoxy and polyurethane include seals, windows, doors, pipes, cables, floor Elastomer is used for seals and gaskets. In con­ in construction coverings and insulation. Indeed, plastic can be struction, these are mostly used for weather strips, used to create entire buildings. This has been used aperture seals, gaskets and expansion joints. The By Jess Coutts in social housing projects as a means of providing polymers used in these items are chloro­prene and affordable accommodation. For improved sustain­ ethylene propylene diene monomer (EPDM). These The construction industry has ability, recycled plastics have been used for con­ are chosen because they are weather-resistant, benefited enormously from struction projects. deformation-resistant and retain elas­ticity. Vast petrochemical products with quantities of polymers are also used in construc­ improved cost-effectiveness, Plastics tion as a base for adhesives and sealants. durability and sustainability. Pipes and conduits are the largest users of poly­ Epoxy resins are flexible resins made using mers for the construction industry. Often used in phenols (aromatic alcohols) ‘Epoxy’ refers to a place of copper or lead, which can both be pro­ chemical group consisting of an oxygen atom A Tyvek SD2 vapour control layer played an important part in the blematic, PVC and polyethylene are generally use bonded to two carbon atoms that are already insulation system for the 50,000 m² roof of the Beichen Convention Center in Beijing, home to the international broadcast Petrochemicals, in particular plastics, have revolu­ for such applications as large pipes for sew­age, bonded in some way. They are predominantly media during the 2008 Olympic Games. tionised the construction industry. After pack­ drainage and potable water, as well as cabling. used in coatings, adhesives, electrical laminants aging, the construction industry is now the Windows and doors were commonly cladded and composites. This is because of useful pro­ The film-forming component of paint is known world’s second highest user of plastics. This is and profiled with wood before the rise of the perties such as adhesion, strength, chemical resis­ as the binder or vehicle – this helps paint adhere because of their durability, versatility, excellent plastics sector but PVC-U has now become a com­ tance and resistance to environmental degra­da­ to surfaces and influences the paint’s longevity, strength-to-weight ratio, cost-effectiveness, corr­ mon material for these purposes, as well as coving tion. It is because of this that as well as being used gloss, strength and flexibility. Synthetic binders osion resistance and low maintenance. and skirting. PVC can also be used as a membrane in construction, they play a major role in the man­ include resins such as acrylics, vinyl-acrylics, vinyl The use of petrochemical-derived products for roofing and linings. Exterior cladding and ufacture of aircraft components and boat hulls. acetate/ethylene (VAE), polyurethanes, polyesters, means the construction industry is not so heavily roofing using phenolic resin rather than timber is Epoxy resin coatings are also used in other melamine resins and epoxy resins. Emulsion paint also popular. Another advantage these materials specialist applications in the construction indus­ (known as latex paint in the US) is a term for all have over wood is a reduced fire risk. try. An example of this is non-slip floor coatings, paints that use synthetic polymers such as acrylic, Insulation, which has great energy conservation which are commonly used in warehouses, food vinyl acrylic (PVA) and styrene acrylic as binders. advantages, has also advanced thanks to petro­ preparation areas and factories. These coatings The solvent (or diluent) component of paint chemical developments. It is commonly manufac­ are hard-wearing and resistant to abrasion, serves to dissolve the polymer and adjust the tured from rigid polystyrene foam which can be chemi­cal spillage and impact. Similarly, poly­ paint’s viscosity. Solvent-borne paints, commonly incorporated into panels or fitted into the con­ urethane coatings are used on floors in places marketed as “oil-based paints” can contain differ­ struction of walls and roofs. Polystyrene-based such as mortuaries, breweries, vehicle mainten­ ent combinations of organic solvents including insulation is light, strong and easy to install. ance workshops and abbatoirs, where floors need aro­matics, alcohols and ketones. Specific exam­ Crystal polystyrene, such as that manufactured by to be able to withstand high-temperature clean­ ples include petroleum distillate, glycol ethers, Total, is one such example. ing and chemical resistance. syn­thetic resins and esters. Another example of a useful plastic is high- Other petrochemical-based additives for paint density polyethylene materials which are com­ Paints can be used to modify surface tension, improve monly used as housewraps. Products, such as Paints are used externally and internally in constr­ flow, impart anti-freeze properties, change the tex­ Tyvek, manufactured by DuPont, is strong but easy uction and many synthetic-based paints rely on ture, improve adhesion, reduce levels of glossiness High-density polyethylene replacing corroded steel pipework in one of the world’s largest oil shale-fired power plants in Estonia. to cut to size. Such housewraps provide breathable petrochemical products during their production. and improve the finished appearance.

58 WPC Guide Petrochemicals and Refining 59 Petrochemicals in the construction industry Petrochemicals in the construction industry

Concretes on polycarboxylic ethers, naphthalene formalde­ ated by concrete. Ground granulated slag from Concrete – a man-made material that combines hyde condensates or hydroxylated polymers. blast furnaces can also be used like fly ash in con­ cement with aggregate and water – has been an Accelerating admixtures are used to speed up crete production. important building material for centuries. There is the drying time of concretes. While calcium evidence the ancient Egyptians used a concrete- chloride-based accelerators can corrode steel used Petrochemicals and the future of the like material more than 5,000 years ago, using in concrete reinforcing, triethanolamine can be construction industry gypsum mortars, mortars of lime and mud mixed used instead. Conversely, retarding mixtures are Economic conditions play a major role in the for­ with straw to bind bricks when building the pyra­ used in hot weather to delay drying times. They tunes of the construction industry. Increased mids. It is also believed that the ancient Romans can also act as water reducers. demand for housing along with increased regula­ used an early form of concrete 2,000 years ago on Petrochemicals can play a part in the pro­duc­ tions to make the industry more sustainable and buildings such as the Coliseum and the Pantheon. tion of sealers for concrete. Sealers improve the energy-efficient will provide opportunities for the Roman concrete consisted of small pieces of gravel watertightness of concrete, make it easier to clean petrochemical sector. An example is the growth of and coarse sand mixed with hot lime and water. and protect concrete from damage caused by “intelligent” buildings and construction methods, Additives such as animal blood, fat or milk, for toxic spills. Film-forming sealers are commonly which include a move towards more prefabrication Nanoscale crystal seeds speed up concrete hardening. BASF’s consistency, and horsehair to prevent shrinkage pro­du­ced using acrylics, polyurethanes and in factories rather than work on building sites. X-Seed hardening accelerator (here magnified 960:1) makes additional heat superfluous and the concrete particularly strong were also used. epoxies. They are easy to use, dry quickly and are Petrochemicals are used to create a wide range and durable. Since ancient times, concrete has come a long cost-effective. of new materials which will continue to play an way and modern concrete often depends on By-products of the refining process can also be important role in sustainable construction pro­ osion, light weight, strength and potential for petrochemical-based additives. Plasticisers, also used in concrete production, such as fly ash, a by- jects. Polymeric composites and glass-reinforced creat­ing more load-bearing structures. As such, known as water-reducing admixtures, reduce the product from the coal sector. Fly ash can reduce plastic materials are two examples. Plastics are their use in construction has a long future. quantity of water needed in a concrete mix. Newer up to 30% of the cement needed in a mix, it advantageous during construction for a number water-reducing admixture products are often based improves workability and reduces the heat gener­ of reasons, such as versatility, resistance to corr­ Jess Coutts is a freelance journalist.

A special adhesive was developed to join the precast concrete segments of the Dubai Metro line, able to withstand the country’s New materials extend the possibilities for the construction industry. The Spyridon Louis stadium built for the 2004 Olympic Games in sometimes extreme climatic conditions as well as the impact caused by the trains. Athens has a transparent roof made of Makrolon polycarbonate from Bayer MaterialScience.

60 WPC Guide Petrochemicals and Refining 61 Fertilisers Fertilisers

Haber in the late 19th Century in response to a Synthetic versus organic fertilisers and insecticides has increased along with nitro­ global shortage of nitrate fertiliser. This shortage Synthetic fertilisers are chemically identical to gen fertiliser use. happened along with the industrialisation of organic fertilisers, but fertiliser companies have Nitrogen fertilisers can also be explosive and agriculture. In Haber’s era, scientists were aware of acknowledged the damage careless use of fer­ have been used in the making of bombs. As such, Fertilisers the nitrogen content in the air we breathe. tiliser can do, such as causing algae to grow and many markets now place restrictions on who can Haber invented a way to extract it – into a depleting waterways of oxygen. However, animal buy fertiliser and quantities in which it is purchased. By Jess Coutts heated, pressurised container equipped with a manure also contributes to such pollution. Another Debate continues as to whether organic or cata­lyst, he injected hydrogen and nitrogen at attraction of petrochemical fertilisers is that they chemical fertilisers are more environmentally Petrochemicals have played an one end and extracted ammonia at the other. This are generally more cost-effective to produce and friendly. Dependence on chemical fertilisers can invaluable role in agriculture since principle is employed today using natural gas as a cheaper to buy than many organic alternatives. be reduced by combining its use with organic fuel and for its hydrogen component. The gas is Further issues have been identified with the fertilisers. Unlike organic fertilisers, chemical ferti­ the 19th Century and continue to mixed with air over a catalyst in a heated, pres­ increased use of nitrogen fertilisers in a bid to lisers can be easily blended to provide more do so, alongside organic products. surised chamber. The resulting ammonia gas chills meet growing demand for food in a world with a precise levels of nutrients. to form a liquid which is then processed into a rising population. These include issues related to Along with more eco-friendly manufacturing number of different nitrogen fertilisers including the homogenisation of many staple crops, such as pro­cesses, many nitrogen fertiliser producers claim urea, nitric acid and ammonium nitrate, Also, urea rice, the use of fertilisers in explosives and the they are using ingredients, such as monoethanol­ and ammonia can be blended with water to make environmental issues. amine and potassium carbonate, because of Organic fertilisers, such as those produced from liquid nitrogen fertiliser. However, in some mar­ It has been argued that agriculture is now tied their purity and to ensure that compositions of fish emulsion or processed animal manure, have kets, sales of ammonium nitrate fertiliser is heavily to the petrochemical industry because of the dev­ syn­the­tic fer­tiliser are accurate so they can be grown in popularity in recent years but petro­ regulated because it can be made to explode. elopment of high-yield varieties of crops. Many of used efficiently. chemical fertilisers still dominate the international Gasified coal and gasified petroleum coke can these crops only respond well to nitrogen ferti­ Looking ahead, petrochemical companies invol­ market and demand remains strong. also be used to produce nitrogen fertilisers, but lisers and this has reduced the variety of crops ved in the production of fertiliser, are being encour­ Ongoing high demand for petrochemical ferti­ these make up a minority of global synthetic fer­ farmed in many countries. For example, in India, aged to diversify, to investigate alternative feed­stocks lisers is fuelled by the world’s growing population tiliser production. there were around 30,000 varieties of rice prior to and to ensure best practice techniques are used and also because large developing countries like Coal was originally gasified in 1792 by pioneer­ the 1940s but only around 10 grown widely today. along the entire supply chain to minimise the en­ China and India are moving towards diets with ing Scottish engineer William Murdock. He simply All these are high-yield types and the narrower vironmental impact of nitrogen fertiliser production. more meat which means more grain needs to be heated coal in a retort in the absence of air to par­ genetic base for these crops has made them more farmed to feed livestock. tially convert coal to gas with a coke residue also susceptible to pests. As such, the use of pesticides Jess Coutts is a freelance journalist. To understand the role of petrochemicals in produced. In 1873, the development of a cyclic fertilisers, it is important to understand the three steam-air process made gasification more efficient main nutrients that benefit plants. They are nitro­ and from the 1940s, processes have been further gen (for strong growth), phosphorus (for root developed to react coal with pure oxygen and growth) and potassium (for improved plant meta­ steam to produce a gas that can be converted to bolism and disease resistance). Of these, nitrogen syngas. In modern synthetic fertiliser produc­tion is the most important with the world’s agricultural based on coal, there are two common pro­cesses sectors needing around 110 million tonnes of it used. One is the Winkler process which uses a fluid­ each year along with 33 million tonnes of phosph­ ised bed in which powdered coal is agitated with orus and 30 million tonnes of potassium. reactant gases. The other is the Koppers-Totzek process which operates at a higher temperature­ A history of synthetic fertiliser production – powdered coal is reacted while it is en­trained in The production of nitrogen for fertiliser is based gases passing through a reactor. Ash is removed Modern agricultural production and the petrochemicals industry advance hand-in hand. It is in everyone’s best interests to ensure that on a process developed by German scientist Fritz as molten slag at the bottom of the reactor. petrochemical-based fertilisers continue to minimise their impact on the environment.

62 WPC Guide Petrochemicals and Refining 63 Petrochemical usage in Food Petrochemical usage in Food

or indirectly a component of such foods” (Article anisms remain as the main contributor. Through retardation of growth and ultimately death of the 1(2) of Directive 89/107/EEC). the understanding of how microorganisms are microorganism. As benzoic acid produces a sour Generally, most food additives could be cate­ able to proliferate and thrive in our foods, meas­ taste, they are used as food flavourings to some gor­ised into one or more of these sub-classes: food ures can be taken to optimise shelf life. extent. They are used to flavour the pickles used in Petrochemical flavouring, food colourings and food preservatives. Food preservatives are substances that are McDonalds burgers. introduced into foods to retard or eliminate the Mineral oils are also used as food preservatives. usage in Food Food flavourings growth of microorganisms. One of the most com­ They are manufactured from crude mineral oils Since the early ages of mankind, back to the monly used petrochemicals in the food industry though various refining steps and encompass a By Ju Piau Khue 400,000 BC when fire was first used for cooking, as a preservative is benzoic acid. Benzoic acid subgroup of the family of mineral oils and waxes. humans have been using spices and aromatic occurs naturally in sources such as cranberries, There are two different types of waxes derived Petrochemicals play varied roles plants to season food. But it was only around the prunes and plums, or can be synthesised via from petroleum that are used in the food industry in modern food production and 19th Century when humans have started to dev­ petro­leum-derived intermediates such as phthalic – paraffin waxes that are distinguished by large, preservation. elop the technology to synthesise artificial food anhydride or toluene. well-formed crystals and microcrystalline waxes flavourings. Food flavourings are substances that Benzoic acid and its salts and esters (benzoates) (E 905) that have a higher melting point with are added to foods to develop tastes and smells. are commonly used in fruit juices and soft drinks smaller and irregular crystals. A widely used petrochemical for artificial food in an acidic pH range. Different forms of benzoic The microcrystalline wax (E 905) is non-toxic flavouring is butyric acid. Although butyric acid acid and benzoates used include benzoic acid (E and approved for use internationally for surface The petrochemicals used in foods are usually has an unpleasant odour and acrid taste, it can be 210), sodium benzoate (E 211), potassium ben­ treatment of non-chocolate confectionery, chew­ derived from either petroleum (crude oil) or converted into butyric esters that have pleas­ant zoate (E 212) and calcium benzoate (E 213). The ing gum, melons, papayas, mangoes, and avocado natural gas. aromas or tastes that are used as fragrant and antimicrobial property of benzoic acid is attribu­ ­ at quatum satis (meaning the use of the appro­ These resulting intermediates and derivatives flavouring agents in food and beverages. Butyric ted to its ability to be absorbed by the micro­ priate concentration needed to achieve the des­ from the petrochemical processes, such as ther­ acids are produced industrially via chemical syn­ organisms. Inside the cell, benzoic acid lowers the ired results, but not more). The wax coating im­ mal cracking, catalytic cracking and steam re­ thesis. This involves the oxidation of butyr­alde­hyde pH of the internal environment and inhibits the proves the appearance and shelf life of the foods forming, are used as food additives. that is produced using propylene derived from metabolism of the microorganisms, resulting in by inhibiting dehydration and protecting from Petrochemicals can take forms as synthetic crude oil. Despite alternative methods, such as ex­ food additives that are not differentiated from their traction from butter and natural fermen­tation, V The preservative benzoic acid, natural counterparts. Therefore, a wide­spread lack chemi­cal synthesis is still the preferred method as it while naturally occurring in of consumer awareness is not sur­pri­sing as cur­ is low in production cost and there is a higher avail­ fruit including cranberries, can be synthesised from rent legislation in many markets does not specify ability of starting materials. Butyric acid is found petro­leum intermediates. the requirement of declaring synthetic food addi­ in a wide range of food products including sweet tives that are manufactured from petro­leum or and savoury biscuits, coffee whitener, chocolate, natural gas on food labels. confectionary and processed dairy products.

Food additives Food preservation According to European Commission of Food Safety, Food spoilages are characterised as the deterior­ food additives are defined in the Community ation of varying degrees in organoleptic proper­ legislation as “any substance not normally con­ ties (how a food is perceived via the senses, such sumed as a food in itself and not normally used as as taste, touch and smell), nutritional value, safety a characteristic ingredient of food whether or not and aesthetic appeal of foods to an extent that it has nutritive value, the intentional addition of the foods are deemed to be unfit for human con­ which to food for a technological purpose … sumption. These spoilages can be triggered by results ... in it or its by-products becoming directly many factors, however, the growth of microorg­ ­

64 WPC Guide Petrochemicals and Refining 65 Petrochemical usage in Food Petrochemical usage in Food

of packaging materials that exerts 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 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 to epichlorohydrin process. However, this method 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 Microcrystaline wax is an essential ingredient in the production of chewing gum. 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 oxidation. The protective barrier of wax also atte­ oxyanisole (BHA) and butylated hydroxytoulene duced. There are two different families of ­poly “glycerine glut”. Consequently, from 2004 on­ nuates the risks of microbial contamination from (BHT) are added to spare the oxidation of fats. As mers, namely thermoplastic and thermoset. wards, natural routes of glycerol production such the environment. For the European market, the these substances are fat soluble and have anti­ Thermoplastics soften when heat is applied. as oils and fats processing dominated the industry purity requirements of the waxes are defined as oxidant properties, they are able to extend the This is due to the separation of molecules from as synthetic means become economically unviable. per Directive 2009/10/EC. In addition to coatings, shelf-life of these products. one another, enabling them to move easily at microcrystalline wax is also an essential ingredient Foods commonly associated with the use of high temperatures. Thermoplastics can be melted in the production of chewing gum. Another pet­ BHA (E 320) and BHT (E 321) are those containing and remoulded in an indefinite number of times. ro­chemical that is used in the manufacture of fats such as vegetable oils, animal fats, flavourings, On the other hand, thermosets (also known as chewing gum is resin. spices, nuts, processed meats and snack products. thermosetting plastics) form additional chemical One of the many side effects of microbial growth Despite similar antioxidant properties of vitamin bonds between the molecules when they are first in foods is the secretion of the digestive enzyme E, BHA and BHT are preferred for their superior moulded. Due to this complex three dimensional lipase that breaks down fats. Unsaturated fats in thermal stability. BHA has greater heat tolerance and tightly interconnected network of bonds, particular, are susceptible to oxidative damage. compared to BHT. Since the 1970s, BHA has been thermosets cannot be re-melted or change its The presence of water and oxygen may also cause steadily replacing BHT due to toxicity studies. shape. If sufficient heat is applied, chemical de­ oxidation of these unsaturated fats. Effects of the In addition to their functions as antioxidants in grad­ation takes place. Examples of the different oxidation of fats include decreased nutritional food, BHA and BHT are also used in food packaging types of plastics that are frequently used in the quality, increased toxicity, development of rancid materials. Antioxidants applied indirectly into food industry include polyethylene terephthalate flavours and odours, and altered texture and foods, for example, via food packaging, are known (PET) in food-contact films and high density poly­ colour. Petrochemicals such as butylated hydr­ as secondary antioxidants. In recent years, the use ethylene in food containers. Plastics have seen long use as food packaging materials.

66 WPC Guide Petrochemicals and Refining 67 Petrochemical usage in Food Petrochemical usage in Food

in salmon feeds. However, the use of cantaxanthin being passed on to consumers. Further, natural is not approved in Australia and New Zealand. In sources lack stability­ and there are still certain addition to fish feeds, cantaxanthin is also sup­ pro­perties that are unrivalled by the synthetic plemented in poultry feeds in order to modify sources, such as brighter colours from synthetic yolk and skin pigmentation. dyes and heat stable antioxidants. Furthermore, in the area of plastics, researchers Alternatives to the use of petrochemicals have been looking into substitutes of petroleum- Notwithstanding the many advantages of using derived plastics using plant-based plastics. How­ C petrochemicals in the food industry, there have ever, there is still a lack of technological advances Petrochemical-derived been rising concerns over the safety and long- to ensure that naturally sourced plastics are on astaxanthin, fed to farmed salmon, both improves their term consumption effects on human health. A par with petroleum-derived plastics in terms of health and imparts the clear cut consensus on the usage of the different effectiveness, cost and production efficiency. characteristic redness of their wild counterparts. 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 Food colouring syn­thetically. This is because synthetic dyes are ment bodies to regulate the levels of usage. ket forces associated with consumer perception The earliest discovery of petrochemicals as syn­ cheaper to produce, more stable and produces With the increasing demand for organic foods, and acceptability of increased costs and de­ thetic dyes dates back to 1856, when William brighter colours than most natural colourings. some manufacturers have opted for the option creased product quality will ultimately determine Henry Perkin unintentionally discovered the pur­ The prevalence of the usage of petroleum-derived for natural substitutes. As with most petro­chemi­ which products are used by the food industries ple dye, mauve, from coal tar when he was trying food dyes is so common that they are used in pro­ cals used in the food industry, similar substances and whether alternatives are viable. to synthesise the anti-malarial drug, quin­ine. The ducts such as breakfast cereals, candy, snacks, bev­ could be found in naturally occurring sources. discovery of mauve initiated a race to discover­ erages, vitamins, and even on the skin of citrus fruits. How­ever, due to efficiency, availability and cost Ju Piau Khue is a graduate in Food Science and other synthetic dyes that are present in the myriad Nevertheless, the preconception that synthetic issues, this can then result in increased costs Human Nutrition from the University of Newcastle. of chemicals in coal tar. Dyes from coal tar were food colourings are limited to the use in manu­ quickly adopted to colour food, drugs and cos­ factured food products is seriously flawed. The metics. Food dyes in the present, however, are flesh of wild salmon from oceans and rivers are derived from petroleum. often red, pink or orange in varying degrees. This As food consumers, we are attracted to pro­ colouration depends on the carotenoid content in ducts that are aesthetically pleasing. We form the wild salmon’s diet, with astaxanthin being the judg­ments using colours to perceive the quality most common carotenoid obtained from natural and attractiveness of a product that is being occurring sources such as small crustaceans or marketed to us. Consumers associate colouration other fishes. As farmed salmon do not have access with superior flavour. Hence, most food manu­ to these naturally occurring sources, petro­chemi­ facturers incorporate food colourings or food cal-derived astaxanthin is incorporated into the dyes in order to enhance the visual quality of their diets of farmed salmon. products. In the USA, data collected by the United The addition of astaxanthin promotes the de­ States Food and Drug Administration (FDA) have sired redness of the flesh, functions as a precursor shown dramatic five-fold increment in the con­ of Vitamin A, and is important for the growth, sumption of dyes since 1955, with three synthetic reproduction, metabolism and health of the sal­ dyes – Red 40, Yellow 5 and Yellow 6 – accounting mon. The use of astaxanthin is approved by the for 90% of all dye usage. European Commission. In some countries, such as While some of these dyes are derived from Scotland, Ireland, Chile and Canada, cantaxanthin Heiko Schneller, a BASF laboratory worker, checking the quality of beta-carotene powder. Nature-identical beta-carotene gives soft drinks, natural sources, the majority are manufactured (E 161g), is used in combination with astaxanthin ice cream, custard and many other foods an attractive yellow to reddish-orange color.

68 WPC Guide Petrochemicals and Refining 69 Textile industry uses Textile industry uses

companies who are working to manufacture such textiles in a sustainable and responsible manner. It is important to make the distinction between synthetic and man-made fabrics. While all synth­ Textile etics are man-made using petrochemical-derived polymers, other man-made fibres can be comp­ industry uses osed of a range of materials, including silk, cotton and wool as well as plant polymers, such as cellulose. By Georgia Lewis Synthetic fibres have a wide variety of uses that go beyond familiar items of clothing, such as The petrochemicals industry has nylon stockings. This includes industrial uses, such revolutionised the production of as tyre cord and flame-proof linings, as well as textiles. home furnishing textiles, automotive textiles and sports and leisure uses, such as wetsuits and water­proof tents.

Sources and processes Without petrochemicals, we would not have the When magnified, synthetic fabrics look like plastic advances that have allowed for affordable mass that has been spun together. Generally, synthetic production of clothes, durable fabrics for a wide fabrics are made from chemically produced fibres. range of uses, the variety of fabric dyes we have The chemicals used to make these fibres include available and fabrics that are easier to care for than sodium hydroxide and carbon di-sulphide, which The stretchiness of materials such as spandex has revolutionised sportswear. natural fibres, such as cotton and silk. Synthetic are derived from coal, oil or natural gas. Polyester, fibres often possess qualities that are not easily acrylic and nylon are all examples of fabrics that These threads are dyed before being woven or can be used to make nylon and polyester pro­ found in natural fibres. The synthetic textiles ind­ come from these sources. Viscose, however, can be knitted together to make fabric. This can be done ducts. Melt-spun fibres can be extruded from the ustry has also offered economic benefits to many sourced from either pine trees or petrochemicals. through four methods of spinning: wet, dry, melt spinneret in different cross-sectional shapes, such countries. While there is controversy over the Initially, the fibre-forming polymers are solid. and gel-spinning. as round, trilobal, pentagonal and octagonal. ecological impact of synthetic fabrics, there are The solids are converted into a liquid state. This is Wet spinning is used on fibre-forming sub­ Trilobal-shaped fibres reflect light to give a spark­ done by melting if the polymers are thermoplastic stances that have been dissolved in a solvent. The ling effect to the fabric. Fibres that are spun in a synthetics (i.e: they soften and melt when heated), spinnerets are submerged in a chemical bath and pentagonal shape or are hollow are used in car­ or dissolving them in a solvent if they are non- as the filaments emerge, they precipitate and pets to show less dirt. Hollow fibres also trap air and thermoplastic cellulosics. If the polymer cannot be solidify. Acrylic, rayon and Spandex are produced create insulation. Octagonal-shaped fibres offer melted or dissolved, they are chemically treated via this process. glitter-free effects. to form soluble or thermoplastic derivatives. In dry spinning, solidification is achieved by Gel-spinning is a process used to make high- The chemicals in liquid form are then forced evaporating the solvent in a stream of air or inert strength fibres. In this process, the polymer is not through a device called a spinneret in a process gas. The filaments do not come into contact with in a true liquid state during extrusion. The polymer called extrusion. At this stage, the liquid is thick a precipitating liquid so there is no need for chains are bound together at various points in a and viscous with a consistency similar to cold drying. This process can be used to make acetate, liquid crystal form instead – this produces strong honey. A spinneret is similar to a bathroom shower acrylic, Spandex and vinyon. inter-chain forces in the resulting filaments that head and it may have from one to several hundred In melt spinning, the fibre-firming substance is can significantly increase the tensile strength of holes. As the liquid emerges from the spinnerets melted for extrusion through the spinneret and the fibres. Stronger fabrics can also be created by When viewed under a microscope, synthetic fabric’s resemblance to plastic is striking. and is exposed to air, it cools and forms tiny threads. then directly solidified by cooling. This process drawing the filaments while they are solidifying or

70 WPC Guide Petrochemicals and Refining 71 Textile industry uses Textile industry uses

Uses V DuPont vice president Charles Textiles created from petrochemicals are many Stine announced the and varied. They include fabrics commonly used development of nylon hosiery at the New York World’s Fair in in clothing, such as rayon, acetate, nylon, acrylic, 1938. The first sales were polyester, elastane, which is commonly marketed made in Wilmington, Delaware the following year. 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, children’s 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 fit 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 versatile textile. It is also easy to clean and does lation, padding for bicycle seats and saddles, and wool, but dries much faster and is more easily not crease easily. automotive fanbelts. washed in machines. Neoprene, originally developed by DuPont scien­ Kevlar, developed by DuPont in the 1970s, is Nylon, commonly marketed under a number of tists in 1930, is produced by the polymerisation of another synthetic textile which has multiple uses. brand names, such as the Invista-owned Tactel, 2-chlorobutadiene. This process occurs in an aque­ It is an aramid fibre, that is, a fibre that is an has a wide range of uses, including active sports­ ous emulsion. It is a versatile material that is dur­ aromatic polyamide. It is also produced under the Best known for its use in bulletproof vests, Kevlar’s properties of high strength, abrasion and temperature resistance and electrical wear, fleece jackets, socks, seatbelts, tents and able, elastic and maintains flexibility over a wide trade name of Twaron. It can be manufactured in insulation make it idea for shielding cables. This umbilical is used waterproof garments. The combination of warmth, temperature range. As such, it is used on wetsuits, many different grades for a range of clothing, by the oil industry in a subsea application for drilling and recovery. durability and weatherproofing makes it a very laptop sleeves, orthopaedic braces, electrical insu­ accessories and equipment that is safe and cut-

72 WPC Guide Petrochemicals and Refining 73 Textile industry uses 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 Fong’s Industries, based in company’s 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 more The 6th Recommendation Directory of Advanced responsible synthetic textile producers, such as a Energy-Saving and Emission-Reduction Technology processing system which reduces the use of for­ for China’s 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 BASF’s 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 toxic liquid which destroys unfixed dye par­ticles compete with food crops, making them a sus­ 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, Nylon fishing nets being prepared to be recycled to produce Biosfera I carpet tiles, extending the useful life of the material. 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 resistant. Like carbon fibre, which is commonly erature and pressure applications, and adhesives ing and finishing – the BASF Color Fast Finish is carpet glue – so while the patches are plastic, the used on racing cars, Kevlar is both lightweight and and sealants. much shorter than the conventional dyeing pro­ adhesive is far less volatile. strong. Other properties of Kevlar include low As well as producing fabrics, the petrochemicals cess, reducing energy and water consumption and Interface has also developed Biosfera I, another density, good impact resistance, good abra­sion industry also has a hand in creating products that subsequent carbon dioxide emissions. BASF’s Ultra­ carpet tile collection. Biosfera I tiles are made from resistance, good chemical resistance, good resis­ are related to the textiles industry. Fabric softener, phor SFG Liquid fabric brighteners can be app­lied 100% recycled materials, including nylon from tance to thermal degradation. It is usually yellow dye fix, dyestuffs, stain removers and fabric bright­ at lower temperatures for further energy savings. fishing nets. This gives products already created in appearance but is frequently coloured, depen­ eners all rely on petrochemicals Fong’s Industries, meanwhile, has been setting from petrochemicals a longer life, well past their ding on its application, such as camouflaging­ an example in China and Europe for several years original uses. colours for bullet-proof vests. While the manu­ Responsible textile manufacturing and with the textiles part of its business. China is by far Alternatives to synthetic, petrochemical-based facture of bullet-proof vests is probably the best alternatives the world’s leading producer of synthetic textiles, textiles that are equally practical, but more sus­ known application for Kevlar, it is a very versatile There has been concern that while these are des­ producing 51.8% of the world’s man-man fibres tainable are growing in popularity. An example of material with uses that transcend textile uses. irable qualities in fabrics, the fabrics are non- with India a distant second at 6.2%. Speaking at a company making great strides in this area is Other uses include protective apparel (such as biodegradable so they do not break down in soil if the inaugural ITMA Asia +CITME conference in Lenzing, a company which manufactures fibres gloves, motorcycle protective clothing, hunting they are discarded. The synthetic textile industry 2008, a major pan-Asian textile industry event, Bill from wood rather than oil. Polymers in the form of gaiters and chaps; sails for boats), belts and hos­ has also come under criticism for the effects on Fong, who oversees the group’s business dev­ cellulose wood pulp are converted into fibres ing for industrial and automotive applications, air­ the environment, wildlife and health, especially elopment projects, said of textile companies im­ known as “man-made cellulosic fibres”. craft body parts, boat hulls, fibre optic and elec­ for those who work to produce these fabrics. prov­ing environmental standards: “Action is need­ tromechanical cables, friction linings for clutch Factories have been accused of consuming exc­ ed, but the industry cannot do it alone. National Georgia Lewis is the Deputy Editor of International plates and brake pads, gaskets for high temp­ essive amounts of water and energy. However, and multinational governments should support Systems and Communications

74 WPC Guide Petrochemicals and Refining 75 Sports and leisure Sports and leisure

Ace, a surface that is essentially a high density, V AstroTurf’s first major high shock absorption rubber cushion mat that installation was at the has been combined with multi-layered acrylic Houston Astrodome in 1965. Synthetic turf has gone on to surfacing. It has become a popular surface for find many uses beyond the Sports and tennis and netball courts. The rubber is a multi- field of play. layered polyurethane rubber combined with Leisure fibre­glass, and EPDM (Ethylene Propylene Diene Monomer) rubber granule cushioning. This is laid By Georgia Lewis on top of an asphalt or reinforced concrete base. The main benefit of a shock-absorbing surface, The world of sports and leisure has such as Rebound Ace, is that it responds to body been transformed by the use of impact to reduce fatigue on the legs, ankles and petrochemicals. feet of players. This has led to the New Zealand Netball administrator claiming that cushioned courts have kept players playing for as many as 10 years beyond what is usually the norm on hard courts. It was also the surface for the Australian Petrochemicals are especially relevant in the man­ Open tennis courts from 1988 until 2007, when it u­facturing process of many items which have was replaced with another petrochemical-derived become inte­gral to modern sports and leisure surface, Plexicushion. This is another synthetic activities. For example, plastics are widely used in rubber surface, a blend of latex, synthetic rubber high-tech sports equipment, which ranges from and plastic particles. fairly com­mon items, such as tennis racquets, skis, footballs and running shoes, as well as the Artificial turf kind of sporting equipment that is not quite so Artificial turf has been refined and developed commonplace, such as F1 racecars (see page 54) over the years as a low-maintenance, durable, aff­ and yachts. ordable alternative to grass. It is commonly used Making sporting equipment from synthetics on playing fields and tennis courts. It is marketed has made mass production of such items easier under many different brand names but first came and made sporting equipment cheaper and more to prominence in the 1960s when Monsanto dev­ nally, artificial turf was made from short-pile syn­ beam and every needle pulls a yarn through a easily accessible to more people. As well as the eloped a product called AstroTurf. This was first th­etic fibres without infill while second-gener­ base fabric and form a loop. Each loop is then cut eco­nomic and social benefits, many synthetic installed on a large scale in 1965 at the Astrodome ation artificial turf used sand as an infill from the so the fibres stand upright. mat­erials used in sports and leisure equipment in Houston, Texas. Its use became widespread in 1980s. The latest artificial turfs, developed in the So commonplace are synthetic turfs in the are also more durable than naturally sourced mat­ the US in the 1970s, predominantly for baseball 1990s, tend to use infills made from a blend of world of sport that sports governing bodies such erials, such as leather for footballs. and American football. At the 1976 Olympics in sand and recycled rubber. as FIFA recommend and approve them, such as Montreal, hockey matches were played on a nylon The basic material for the short-pile turf is Total Petrochemicals Lumicene product. Hard, shock-absorbing surfaces synthetic turf – these days most top-level hockey polypropylene and polyethylene granules which As well as sporting uses, artificial turf has been Petrochemical-derived synthetics also play an matches are played on such surfaces and it has are melted and extruded to create long yarns or a used at airports instead of natural grass. It is easier important role in the manufacture of athletics changed the sport by making the game faster and film that is then cut into individual yarns. The for vehicles to drive over, it doesn’t attract wildlife tracks, tennis courts, netball and basketball courts, adding new playing techniques. yarns are then tufted into a polypropylene fabric, so the risk of wildlife colliding with planes is and artificial turf for football and rugby field. An While it is a registered trademark, AstroTurf be­ in a similar technique to that used for domestic reduced, it stays green in all weathers so it is easily example of this is the development of Rebound came a colloquialism for any artificial turf. Origi­ carpet – hundreds of needles are positioned on a spotted by pilots and it is easier to maintain.

76 WPC Guide Petrochemicals and Refining 77 Sports and leisure Sports and leisure

ated with the Yingyou Group, China’s 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

BASF’s Conica track surface was specifically designed for world record attempts and to be easy on athletes’ joints.

Athletics tracks cals. Their tracks are approved by the International One of the most prominent sporting uses for Association of Athletics Federations. petrochemical products is on sporting tracks. BASF’s Conica surfaces, for example, have been Leading chemical companies, such as BASF Con­ created to be not too hard or too soft and are struction Chemicals Europe and Polimeri Europa, made from a three-layer solid plastic. A poly­ have created sporting surfaces using petrochem­ ­i­ urethane coating is applied before the track is laid and then synthetic rubber granules (EPDM) are used before the topmost polyurethane layer is applied. This surface is also weather-proof. Versalis, Italy’s leading petrochemical company, have also developed a polymer athletics track using their expertise. Marketed as Protopapa, the tracks are made from polyethylene and synthetic rubber, all derived from oil which the company refines at its own plant. The blend of polymers create a durable track that is UV-resistant

Other sporting equipment Whether it’s a more durable material than leather for footballs and rugby balls or wood for tennis rac­ quets, or replacing heavier steels in bicycles, pet­ rochemicals play a major role in the manufacture­ of many items of modern sporting equipment. For example, the Lianyungang Shenying Carbon A shell coating of DuPont’s Surlyn resin prevents chips and Bike Company, based in China, manufactures car­ ensures the wood-cored pins withstand constant impacts from Eva Terčelj of Slovenia competing in the 2012 Olympic Slalom Canoeing. Plastics selected for strength and lightness enhance equipment bowling balls, sidewalls and other pins themselves. bon fibre bicycles for the global market. It is affili­ ­ and protect participants in demanding sports.

78 WPC Guide Petrochemicals and Refining 79 reserved for Lurgi ad reserved for Lurgi ad Global summary Global summary

In the last two decades, Japan’s neighbours, those used for household applications, the auto­ sector. Investments by Chevron Phillips Chemical including Singapore, South Korea and Taiwan, motive industry, packaging, medicine, sports and include a world-scale ethane cracker and ethylene have expanded petrochemical producing capa­ fashion. A major focus of Total’s petrochemical facility at its existing operations on the US Gulf city to support their own economies and to ex­ and refining business is expansion in the growing Coast. The new facility will exploit feed sources port to regions with limited capacity. Three of the markets of Asia and the Middle East. from the development of shale gas reserves. Global fastest growing petrochemicals markets are China, Here is a region-by-region round-up of the Ongoing developments in technology are also Latin America and the Middle East. China, like industry. vital for the growth of the North American petro­ summary Thailand, Malaysia and Indonesia, has expanded chemical sector. Honeywell, for example, has ann­ due to a desire for self-sufficiency for a fast- North America ounced the launch of a new membrane element­ A round-up of developments and growing population. Many emerging markets are The shale gas revolution has resulted in major to efficiently remove contaminants from natural future plans for petrochemical also keen to export petrochemical products. changes to the North American petrochemical gas and reduce the amount of valuable methane markets from across the world. Emerging markets are set to play an ever- market. lost during the decontamination process. increasing role in producing petrochemicals. The US petrochemical sector is also bolstered According to The Outlook for the US Chemical United States of America by many of its leading companies expanding inter­ Industry report by KPMG, China is expected to Stable natural gas prices, along with an abundance nationally, something which many have been take over the US as the largest chemical producer of shale gas and a willingness to exploit this doing for decades. ConocoPhillips has been in the world by 2015, by 2025, India will have resource in many US states, has boosted industry expand­ing internationally since the 1930s (when While the global petrochemical sector faces chal­ more than 400 million middle-class consumers competitiveness. it was still trading as Phillips, it merged to form lenges, it remains for the foreseeable future, a (more than the current population of the US), and Low gas prices are helping the US industry in two ConocoPhillips in 2001) with forays into counties multi-billion dollar industry. But the status of the between 1995 and 2005, more than 95% of world ways – natural gas has become an important part such as Canada, Venezuela Mexico, China, Indonesia sector varies across different markets. The last chemical growth was concentrated in developing of the petrochemical industry’s energy mix, which and Australia. three decades have seen immense changes to the countries. The increased size and purchasing keeps costs down, and certain fractions of natural global petrochemical sector, most significantly, a power of these emerging markets will undoubt­ gas, such as ethane, methane and other light Canada reduction in the dominance of the United States, edly impact on the petrochemical industry as well hydrocarbons, are vital petrochemical feed­stocks. In Canada, the industry is very similar to that in Western Europe and Japan. In 2010, these three as the chemical industry as a whole. Low gas prices could have an adverse effect if the US but with some differences. The American regions accounted for just 37% of the world’s With increased globalisation, many companies gas production companies do not make a profit natural gas boom means the US has less need to petrochemical production. have a presence in the petrochemical markets of because that could lead to gas resources not import gas from Canada. Despite this, plenty of multiple countries either as sole operators or in being developed. But companies in the US are natural gas-derived petrochemical feedstocks in partnership with other companies or govern­ favouring the production of gas that is rich in petro­ Canada have been earmarked for the export market. ments. Halliburton is one such company – while chemical feedstock material – wet gas rather than The drop in demand from the US has led to a fall based in North America, it employs 5,600 people dry gas, which is low in feedstock components. in Canadian natural gas production – and the lack in the Asia-Pacific region and has announced a Projects to increase the capacity to produce of gas leads to a reduced availability of ethane for deal with Malaysian national oil company Petronas ethylene from ethane in US have been announced feedstock. However, natural gas com­panies in the to extend its capability in the region. but it is uncertain which ones will be completed Canadian province of Alberta have devised a Sasol is another multinational petrochemical – those that are built will be able to focus on creative solution – moving ethane to Alberta from producer with truly global reach, While the com­ export markets. However, Dow Chemicals is a shale formation in the US state of North Dakota, pany is based in South Africa, it exports to 90 confident its new ethylene plant in Texas will be extracting feedstock materials from the by-product countries and has petrochemical operations in com­pleted by 2017 and Celanese expects to off-gases resulting from the bitu­men upgrading, as the US, Italy, Slovakia, Germany, China, Qatar, Iran, complete a methanol production plant in Texas well as extracting incre­mental quantities of ethane Gabon and Nigeria. by 2015. from the gas that is produced in western Canada. Total Petrochemicals, meanwhile, produces a The shale gas boom in America will also Alberta is Canada’s leading producer of petro­ The dawn of America’s shale gas boom has profoundly changed the country’s gas and petrochemicals industries. wide range of petrochemical products, including continue to bolster the country’s petrochemical chemicals with the sector producing more than

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remain high, European feedstock prices will also Science is developing a toluene diisocyanate remain high. plant at Dormagen which is due to come onstream The economic issues, which have impacted on in 2014. This will replace existing facilities at multiple economies across the European Union, Dormagen and Brunsbuttel. have negatively affected demand for all products, Growth in the German petrochemical sector is including petrochemicals. However, the European projected to be around 2-2.5% per annum up petrochemical industry is strong and advanced so to 2020. it is expected to emerge successfully from the challenging economic climate. Germany, France France and the Netherlands are Europe’s three leading Following a year of zero growth in 2012, the petrochemical producers. French petrochemical sector is looking to boost research and development and exploit speciality While Canada has seen a fall in gas production, development is The Tobolsk-Polymer plant is Russia is scheduled for launch in still ongoing. Germany markets in order to strengthen the sector. Propy­ 2013, producing 510,000 metric tonnes of polypropylene per year. Germany is weathering the Eurozone crisis well lene, butadiene, the increasingly popuar linear $13.5 billion worth of products in 2011. The main and despite a decline in all sectors of the country’s low-density polyethylene (LLDPE) and poly­ethy­ to the need to compete on a global level, and to petrochemical products from Alberta are ethy­ chemical industry in 2011, it appears the slump lene terephthalate (PET) are the main petro­che­ offset potential undermining of price competitive­ lene, polyethylene, ethylene glycol, linear alpha has bottomed out. While there has been a mi­cal products made in France. The main areas of ness in the wake of feedstock price liberalisation, olefins and acetic acid and the two main export slowdown in exports to the US and an increasingly demand for French petrochemical pro­ducts is in by diversifying and building capacity. The diversi­ markets are the US and Asia. The Joffre and Fort competitive China, growth prospects for the aerospace, packaging and food processing. fication of the petrochemical sector has gone Saskatchewan petrochemical area includes four German petrochemical sector are expected in the French producers are looking beyond the tradi­ hand in hand with growth in the automotive and ethane-cracking plants, two of which are the production, research and development of high- tional markets within the Eurozone, with the US construction sectors, both of which rely heavily world’s largest. end specification plastics and speciality chemicals. and Asia offering more potential for growth. It is on petrochemical products. Overall production The government of Alberta amended the An example of an expanded petrochemical hoped that looking outside of Europe will offset capacities are expected to double by 2017. Incremental Ethane Extraction Programme to en­ plant is that of Evonik Industries, which is building the impact of factors such as low consumer confi­ Potential availability of naphtha and ethane cour­age more production of ethane from natural a polybutadeine plant at Marl. BASF has expanded dence, fiscal cuts, investment limited by space feedstock is strong because of expansion of refi­ gas and off-gases as a by-product of bitumen its production of extruded polystyrene by 17%. constraints, and unemployment. neries and the country’s growing gas sector. refining, with bitumen coming from the area’s Also, BASF is ramping up production of nylon Taiwan is an example of a market in which Fertiliser is a strong performer for the Russian extensive oil sands. engineering plastics and polybutylene tereph­ France is keen to expand its petrochemical activi­ petrochemical sector with an exportable surplus In eastern Canada, most notably the province thalate at its facility in Schwarzheide. Bayer Material ties. The Petrochemical Industry Association of being produced. Polymers capacity is expected to of Ontario, the corporate investing landscape was Taiwan and the French Institute in Taipei have exceed 10m tpa by 2017, a three-fold increase changed with a reduction in corporation tax and been holding meetings to discuss sharing tech­ from 2008. initiatives to address regulatory issues – this nology and knowledge in areas such as environ­ Projects slated for completion in Russia by 2014 business-friendly environment should lead to mental protection, energy conservation and manu­ include plants in the plastics and rubbers sector, opportunities for growth and investment in nat­ facturing. French companies slated to be involved including 60,000 tpa of acrylobitrile-butadeine- ural gas and the ensuing production of petro­ in possible partnerships include Elbe Petro, MPR styrene (ABS) and 3330,000 tpa of PVC. Other chemical feedstocks. Industries, RB Technologies, SAS, Vulcanic SAS and peptrochemical products with projected growth Bernard Controls. in production include polyethylene, polypropy­ Europe lene, polystyrene and polyethyleneterephthalate. Europe’s $98.5 billion petrochemical industry is Russia This growth mix is expected to coincide with primarily derived from feedstocks based on crude A robust petrochemical sector has been an impor­ growth in local demand for plastics. oil rather than natural gas, as is the case in other tant part of Russia’s continued economic growth. In 2012, two major Russian players, gas giant BASF’s plant in Schwarzheide. BASF is one of many German markets, such as the US. As long as oil prices companies increasing production. Russian petrochemical producers have responded Gazprom and petrochemical manufacturer Sibur,

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joined forces to sign a long-term contract to sup­ housing construction, and the PP sector is under ties were developed to cater to export markets portant for Kuwait to continue to invest in and ply natural gas liquids (NGLs) from the Surgut pressure from a slump in automotive production, with a strong focus on China. recognise the value of the country’s petrochemical Con­densate Stabilisation Plant to the Tobolsk- there is still good news ahead for Dutch petro­ While there were concerns that the new sector. With Gulf states, including Kuwait, looking Neftekhim facility up to 2021. The agreement chemical producers. capacity of the Arabian Gulf states would lead to to move away from relying on oil for energy, the means the annual supply of NGLs will rise from The sector is still very competitive in the area of oversupply and lower prices, this has not been the opportunity for Kuwaiti oil resources to continue 440,000 mt to 1 million mt by 2016. Hydrocarbon high-value finished products. As such, the sector case. The supply-demand balance has been well- to be exploited for use in the petrochemical feedstock volumes beyond 2016 will be agreed at is still very attractive to foreign investors. Teijin, a managed courtesy of three factors – stronger than sector is very positive. a later date. Japanese company, opened its first high-perfor­ anticipated worldwide demand and, interestingly, Rosneft is building a mega petrochemicals mance polyethylene (HPPE) production facility in delays in getting new capacity utilisation rates up, Oman com­plex with 3.4 million tpa capacity in Nakhodka Emmen in October 2011, as part of the drive as well as low production costs. Oman is in the process of stepping up its efforts to with a 2017 completion date. towards diversification. Thailand’s Indorama Ven­ Investment in the Middle Eastern petrochemical capitalise on its hydrocarbons resources and this Forming international partnerships is another tures is aiming to increase PTA capacity at its market continues, although the pace of invest­ includes expansion of the petrochemical sector. It diver­sification strategy for Russian companies. For Rotterdam plant by 2014 so it can serve as an ment has slowed. is hoped that this will reduce dependence on ex­ample, gas company, Novatek, has signed a 2013 important feedstock supplier to PET producers in imports and raise higher export revenues. agreement with the Yeochun Naphtha Cracker Western Europe. Kuwait The Oman Oil Company (OOC) announced in Center (YNCC), a South Korean petro­chemi­cal com­ Thanks to large crude oil reserves – proven reser­ ­ October 2012 that it was setting up a new pany, to supply up to 300,000 tonnes of light Denmark ves of 104 billion barrels – the petroleum industry petrochemicals facility in the industrial centre of naphtha, which is produced at the Ust-Luga Gas Con­ The production and export of petrochemicals accounts for nearly half the Gulf state’s GDP. As a Sohar on the Gulf of Oman. The plant has been densare Trans­shipment and Fractionation Complex. plays a major role in the Danish economy, with result of these vast natural resources, the largely budgeted at $800 million and it will produce companies such as Novo Nordisk and Haldor government-owned and run petro­chemical sec­ terephthalic acid (PTA) for polyester fibre, resin The Netherlands Topsøe leading the way. Novo Nordisk runs a tor has grown strong, with the assistance­ of and film, and polyethylene terephthalate (PET) for The petrochemical sector in the Netherlands high-tech, highly specialised operation with heavy foreign investors. use in plastics. is well placed to remain competitive despite investment in research. The five major players in the Kuwaiti petro­ OOC already has a large downstream petro­ troubled economic times in Europe. While export Haldor Topsøe, meanwhile, recorded its best- chemical sector are Equate Petrochemical Company chemicals portfolio, including Salalah Methanol growth has slowed, consumer demand is flat, the ever operating profit in 2012 with turnover inc­ (produces ethylene oxide, ethylene glycol, ethy­ and the Oman-India Fertiliser Company, as well as PVC sector is under pressure from a slump in reasing by 19% to DKK 5,244 million compared to lene and polyethylene), Kuwait Paraxylene Pro­ a holding in the Oman Refineries and Petroleum DKK 4,421 million in 2011. This was achieved in duction Company (produces benzene and para­ spite of increased research and development xylent), Petrochemical Industries Company (pro­ costs. The company is focusing on expansion and duces polypropylene), The Kuwait Olefins Company modernisation of the chemical and refining to (produces ethylene glycol and ethylene), and The create new opportunities worldwide. Long-term Kuwait Styrene Company (produces styrene). projects for Haldor Topsøe include investment in Dow Chemical Company is a major foreign Pakistan’s Fauji Fertiliser Company, in which it investor in the Kuwaiti petrochemical sector with holds a majority stake. 42.5% stakes in Equate Petrochemical Company and The Kuwait Olefins Company. Dow Europe Middle East Holding has a 42.5% stake in The Kuwait Styrene At the start of the 21st Century, a petrochemicals Company. The state-owned Qurain Petrochemical boom was tipped for the Middle East with exten­ Industries company is another major player with sive hydrocarbon resources in Kuwait, Oman, stakes in Equate, Kuwait Paraxylene Production Qatar, Saudi Arabia and the United Arab Emirates. Company and The Kuwait Olefins Company. While petrochemical demand within these coun­ Hamad Al-Terkait, CEO of Equate Petrochemical ORPIC’s aromatics plant in Sohar, Oman, converts naphtha A plastomers production site in Geleen, The Netherlands. tries is fairly limited, world-scale production facili­ Company, told Aljarida newspaper that it is im­ feedstock into benzene and paraxylene.

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Industries Company (ORPIC), which operates the Arab Petroleum Investments country’s two refineries, including the one at Sohar that will provide feedstock for the new PTA- Corporation PET plant. A project to expand the Sohar refinery is being planned, at a cost of between $1.5 billion and $1.8 billion. This is expected to be completed by the first half of 2016 and should have an extra The Arab Petroleum Investments Corporation (APICORP) In October 2012, APICORP’s strong fundamentals processing capacity of 60,000 barrels per day. is a multilateral development bank established to foster were endorsed by Moody’s upgrade of APICORP’s issuer the development of the Arab world’s oil and gas indus­ and senior unsecured rating from A1 to Aa3. Considering Qatar tries. The organisation was created under the terms of the current environment where substantial credit up­ The Qatari petrochemical sector, bolstered by an agreement signed by the 10 member states of the grades for financial institutions are rare, the Aa3 rating enormous natural gas resources and a buoyant Organisation of Arab Petroleum Exporting Countries upgrade of APICORP is considered exceptional. Qatar Fertiliser Company’s Ammonia-Urea plant, QAFCO 4, in economy, continues to experience steady growth (OAPEC) in September 1974. APICORP’s vision is to As part of its current five-year strategy, the multi­ Mesaieed. despite a slowdown in the Chinese economy and transform the Arab energy industry into a powerful force lateral development bank is seeking to broaden its the rapid growth of the petrochemical sector in the Qatari oil and gas industry with Qatar for the region’s economic progress. Driven by this investment and financing portfolios to cover new oil and multiple Asian countries. Chemical Company, Qatar Petrochemical Com­ vision, APICORP seeks to make equity investments and gas and utility sectors. The multilateral develop­ment A vacuum left by ongoing sanctions against pany, RasGas and Dolphin Energy all winning provide project loans, trade finance, advisory and bank is particularly looking at supporting projects that Iran and fully integrated industrial cities at Mesaieed Qatar oil and Gas Industry Safety, Excellence and research to the industry. will boost the region’s midstream and downstream and Ras Laffan have enable the petrochemical Innovation Awards. Since its founding, APICORP has made significant capabilities, which are crucial for Arab countries to sector to remain strong. Despite the Qatari gov­ contributions to the region’s energy industry. APICORP maximise economic benefits from energy resources. ernment imposing a cap of 49% on foreign own­ Saudi Arabia has invested, as an equity owner, in a total of 22 oil and Over the last two years, APICORP further stepped up its ership, many large oil and gas companies continue Saudi Arabia’s rich oil and gas resources mean the gas joint venture projects worth in excess of $16 billion. efforts to support Arab energy industry development to invest in the country’s hydrocarbons industries. kingdom is well placed to develop a robust petro­ APICORP has also participated in direct and syndicated through initiatives undertaken in partnership with global However, cracker capacity has outstripped gas chemical sector. The government is seeking to energy finance transactions worth in excess of $130 org­anisations. In February 2012, APICORP announced the production and the government has responded by diversify and focus on the production of high- billion. The multilateral development bank’s aggregate establishment of the APICORP Petroleum Shipping Fund, a suspending work on new projects until 2014 so sus­ performance and speciality-grade petrochemicals commitments in these transactions, both in equity and landmark $150 million Fund aimed at lever­aging growth tainable rates of gas production can be ascertained. with $150 billion worth of investment between debt, are valued in excess of $11 billion. opportunities in the petroleum product tanker char­ter mar­ Despite this setback, a new carbon dioxide re­ government, companies and joint ventures. APICORP has a track record of sustainable financial ket, in partner­ship with Tufton Oceanic, a leading global covery plant is being built by Qatar Fuel Additives Ethylene and propylene capacities are increas­ performance since inception. Its consistently strong fund manager in the mari­time and energy-related indus­ Company in Mesaieed Industrial City and it is ing, largely thanks to the expanding operations of performance over the past three decades reflects tries. Co-managed by Tufton Oceanic, the Fund is the first expected to be operational by 2014. Qatar Saudi Kayan Petrochemical Company. Saudi Kayan’s the robust nature of its asset portfolio and its ability to investment fund to be established by APICORP and the National Bank Group has financed the project Jubail plant is one of the largest in the world. strategically and prudently manage its debt portfolio. first fund in the region aimed at a specific vessel category. with a corporate loan agreement for $80 million. Diversification will continue to be important to In 2011, APICORP recorded profits of $105.4 million, Earlier, in May 2012, the organisation signed a trade Qatar Fertiliser Company, meanwhile, has built the Saudi petrochemical sector, especially after the highest net profit in its 36 year history. APICORP’s finance services agreement with global banking leader another ammonia and urea plant. profits were down among producers in 2012. This total assets rose 7% from 2010, exceeding $4.6 billion. J.P. Morgan, which enabled it to significantly expand its Additionally, Qatar Petrochemicals and Shell was largely attributed to product prices dropping Following these record results, APICORP delivered a trade finance services. Another partnership signed with are building a petrochemical complex in Qatar; and softening demand from Asia, especially in net income of $51 million for the first half of 2012, the International Finance Corporation in March 2011 and Qatar Petroleum has joined forced with Qatar regard to growth in China and India. an increase of 24% over the same period in 2011, was aimed at enabling APICORP to co-finance Petrochemical Company to develop a mega- An example of diversifying the sector is the with assets growing by a further 18% to reach developing country energy projects in which Arab petrochemical complex in Ras Laffan. Chevron Phillips Chemical Saudi Arabian joint $5.12 billion. countries have made investments. Safety and efficiency improvements are a ven­ture petrochemicals complex at Jubail, which priority for upstream and downstream sectors of was completed in 2011. The complex was built by

Petrochemicals and Refining 89 Global summary Global summary

Sadara Chemical Company, a joint venture bet­ diversification has limited the UAE’s petrochemical China ween Saudi Aramco and Dow, is increasing mon­ potential in the past, the expansion projects The emerging petrochemical markets of Asia, omer capacity with a mixed-feed cracker and aims and foreign investment will boost capabilities­ especially China and India, are growing and are to produce value-added chemical products and and make the sector more competitive in the set to continue to do so, along with population performance plastics. All units are scheduled to medium term. growth and a rising middle class. be operational by 2016. Petrochemicals have certainly benefited from Iran China’s booming economy. Demand and produc­ United Arab Emirates Despite trade sanctions, Iran has developed a tion of petrochemicals have grown at double-digit Like Saudi Arabia, the petrochemical sector in the healthy petrochemical sector with solid foreign rates during this century. While China is lacking in United Arab Emirates is exposed to the risk of investment and three petrochemical projects traditional feedstocks, the industry makes up for losing market share to the booming Chinese opening in 2012 alone. By expanding range and this disadvantage with low labour costs and proxi­ economy, with China’s petrochemical capacity volume, and investing in research and develop­ mity to emerging markets. Saudi Aramco and Sumitomo Chemical joint venture Petro Rabigh, an integrated oil refinery and petrochemical complex. inc­reasing. The UAE will be looking to other mar­ ment, the Iranian petrochemical sector is working Because of the lack of domestic crude oil and kets, such as India – its growing consumption of towards self-sufficiency for the domestic market. natural gas production for feedstocks, China has Saudi Polymers Company with the National petrochemicals should offer the UAE a long-term Foreign companies have invested $1.3 billion in become a pioneer in using coal to produce chemi­ Petrochemicals Company (Petrochem) and it pro­ source of export demand. the Iranian petrochemical industry between 2007 cals. Coal makes up 96% of China’s total fossil duces ethylene, propylene, polyethylene, hexane-1 Expansion is underway in the UAE petrochemi­ ­ and 2012, accounting for 5% of the country’s total resources – the technologies China is using to and polystyrene. cal sector, most notably with Borouge – the foreign investment. By 2015, Iran is aiming to imple­ exploit this vast coal resource are not necessarily Another major player, Saipem (based in Italy), Borouge 3 project is a significant expansion of the ment 47 petrochemical projects, adding 43 million new but China has been placed in a unique have signed a contract for the expansion of naphtha Ruwais plant in the emirate of Abu Dhabi. This is tpa to its capacity, which is currently at 55 million position to develop them, whereas the technolo­ and aromatics production at the integrated refi­ due to be completed by mid-2014. Borouge tpa. If all these projects come online, Iran will repre­ gies have been superseded by those based on oil nery and petrochemicals complex in the city of produces ethylene, polyethylene and polypropy­ sent at least 5.3% of the global petrochemical­ or gas in other markets. This use of coal, along Rabigh, located north of Jeddah on Saudi Arabia’s lene. Also in Ruwais, Takreer, is expanding its output and 36% of Middle Eastern production. with cheap labour and a large population, has led west coast. The work includes the engineering, naphtha production which will help with feed­ Local companies have also formed partnerships to China having the world’s largest chemical procurement and construction of two processing stock self-sufficiency for the UAE. outside of Iran. Petrochemical Commercial Company industry and consumer market for chemicals. units and it is expected to be completed by the The Tacaamol aromatics project, a joint venture is one such example – it is a major supplier of Joint ventures are also proving to be a popular end of 2015. between Abu Dhabi Chemical Company (Chema­ Iranian petrochemicals to international markets way to maintain a healthy petrochemical sector in we­yaat) and International Petroleum Investment and has affiliates in Britain, Singapore, China, South China. Shenua Group, China’s largest coal pro­ Company (IPIC) is due onstream in 2016. It is a $10 Korea, India and Turkey. ducer is involved in a 50:50 joint venture with billion, three-phase project in Al Gharbia, in the The government-owned National Iranian General Electric to form GE Shenhua Gasification western region of the UAE. As well as production Petro­chemical Company, which started with a Technology Company. This company aims to gen­ facilities, the project will include export storage fertiliser plant in 1964, has become the Middle erate electricity from gasified coal and produce tanks, a jetty and loading berths. East’s second largest producer and exporter raw materials for the petrochemicals sector. Foreign investment is also boosting the UAE of petro­chemicals. Zhong Tian He Chuang Energy Company is a petrochemical sector. In 2011, German petro­ joint venture between China Petroleum and chemical giant Lanxess founded a dedicated Asia Chemi­cal Corporation (Sinopec), China’s largest company for the Middle East with its headquarters While Japan has long been a powerhouse for the producer and supplier of petrochemical products, in Dubai. The main products Lanxess supplies to petrochemical sector in the Asian region, China and China Coal Group. This joint venture involves Middle Eastern customers are specialty chemicals, and India have both experienced rapid growth. plans to build a polypropylene plant in Ordos, colour pigments for the construction industry and Other countries in Asia are also experiencing growth Inner Mongolia, with technology licenced from high-end plastics and synthetic rubbers. While a in the petrochemicals sector even in sometimes Ineos. The 350,000 tpa plant will produce products Part of the current Borouge plant in Ruwais, Abu Dhabi. Capacity will be greatly increased in 2014. narrow product range and lack of downstream challenging economic and political conditions. to serve China’s domestic market.

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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 India’s 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 the 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 ExxonMobil partnered with Sinopec, Fujian Province and Saudi Aramco to develop China’s first integrated refining and petrochemical facility with foreign participation. 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. The export market is essential to Sinopec’s on­ Venezuela in which an integrated refinery plant is chemical investment regions in states such as To overcome these issues, many Japanese com­ going growth with more than 150 end-user and being built in Guangdong. CNPC will have a 60% Tamil Nadu and Karnataka. panies are also turning their attention to produc­ dis­tributor countries in more than 100 countries. stake and Petroleos de Venezuela will have a 40% BASF India is increasing its presence with a tion activities in emerging markets, inc­luding China, Major end-users of Sinopec’s petrochemical pro­ stake in the $9.4 billion project which is expected $195.6 million investment in a new chemical Saudi Arabia, Singapore and Thailand. These com­ ducts include Dupont, Proctor & Gamble and to open in late 2014. production site in western India. panies include Sumitomo Chemical, Mitsui & Co, Michelin. Its main export products include petro­ China’s twelfth Five-Year Plan includes new There are challenges ahead for India’s petro­ Mitsubishi Chemicals, Asahi Kasei and Ube Industries. leum coke, paraffin wax, base oil, PET, PVC, soda ash, environmental laws to help ensure industries, chemical sector and these must also be addressed Masakazu Tokura, President of Sumitomo Chemi­ caustic soda and fertiliser. Sinopec is also involved in including petrochemicals, are more sustainable. to maintain competitiveness, stay cost-effective cal said: “Expansion of overseas operations is a joint venture in Guangdong with Kuwait Petroleum Under the latest plan, China is evolving its regu­ and continue to attract investment. Procuring raw necessary for the survival and the development of Corporation. This is worth $9.3 billion, includes a latory regime so that industries that are heavy materials and feedstock from oil- and gas-rich the petrochemical business. Japan’s petrochemical refinery and ethylene plant with a capacity of energy users are encouraged to adopt more eco- countries needs to be managed efficiently. There industry faces various challenges, such as the 1 million tpa. It is expected to come online in 2015. friendly policies. Stricter controls on proliferating is also a growing need for more investment in transfer of user industries’ production bases abroad, Numerous US companies have expanded into petrochemicals plants have been introduced since research and development, new technologies the Yen’s appreciation and a decline in cost-com­ the Chinese petrochemical market. Air Products 2011 to try and address environmental concerns. and environmentally friendly initiatives. India’s petitiveness due to higher electricity bills in Japan.” has opened a specialist amines plant in Nanjing to trade and logistics infrastructure will also require Sumitomo Chemical is going ahead with a joint complement existing petrochemical development. India more development to cope with the demands of venture with Saudi Aramco on the Rabigh Phase II pro­ ExxonMobil is expanding petrochemical oper­ Along with China, India is Asia’s other growing both the domestic and export market. ject worth $7 billion. The project will use cost-com­ ations in China and India, supplying these markets economic powerhouse. With a population that petitive ethane as part of its feedstock and exit­ing from its global network, including manufacturing has already exceeded one billion and set to Japan infrastructure from the Rabigh Phase I will be used. facilities in Singapore. Eastman Chemical Com­ approach that of China by 2025, the market is The Japanese petrochemical sector has long been Mitsui & Co will also be joining forces with a pany, through its acquisition of Genovique Speci­ enormous. Add to this the growing middle class, an important part of the country’s economy but in Saudi Arabian company. Along with a consortium alities Corporation, a worldwide producer of with more than 63 million households expected recent years, changes have been made to cope of other Japanese companies, Mitsui & Co has speci­alist chemical products, has acquired a joint to have an annual income greater than $6,500 by with increased competition from emerging signed a joint venture with Saudi International venture operation in Wuhan, China with Wuhan 2015 and the demand for consumer goods is markets. The March 2011 earthquake and tsunami Petrochemical Company (Sipchem) to set up a Youji. The plant opened in 2007 and it produces high, including petrochemical-derived products. also had an impact on the petrochemical sector. plant to produce methanol. Benzoflex, a plasticiser. Overall, India’s chemical industry is very strong As a result of this, many locally produced petro­ Mitsubishi Chemicals operates a PTA plant in China National Petroleum Corporation (CNPC) with an estimated $91 billion of sales in 2011, chemicals have been used in the reconstruction China’s Ningbo province and Asahi Kasei is ex­ has a joint venture with Venezuela’s Petroleos de projected to reach $134 billion by 2015. The work in affected areas, such as Fukushima, while panding its South Korean operations.

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ASEAN members, including Vietnam, Indonesia led to the early stages of developing a coal-based petrochemical investment was called off by the and the Malaysia-Thailand Joint Development petrochemicals sector. Coal is already the main central government due to environmental con­ Area (JDA) for the supply of gas. source of fuel for the north-west Asian nation and cerns and a negative public response. It was The Malaysian petrochemical sector has grown growing local demand for ammonia-based fer­ slated to include a refinery, naphtha cracker, aro­ rapidly thanks to abundant oil and gas as tilisers and methanol as a feedstock means that matic hydrocarbons centre, lower-stream plants feedstock, good infrastructure, cost competitive­ investment in coal-based petrochemical production and industrial harbour facilities. To offset the ness and Malaysia’s strategic location with close is crucial. possible losses from cancelling this project and to proximity to markets in the far East. Six gas The Mongolian Government’s coal policy, keep the local petrochemical sector competitive, processing plants in Kertih and Terrengganu according to the Ministry of Fuel and Energy, aims the Taiwanese authorities have announced plans supply a large proportion of feedstocks while to “provide national security and sustainable dev­ to add value to the sector. The plans include the Peninsular Gas Utilisation (PGU) gas trans­ elopment of Mongolia by introducing econo­mic increased spending on research and development, mission pipeline ensures gas is transported to and environmentally friendly clean coal techno­ ­ such as centres for the pilot production of industries around the country. Ketih is also home logy and production such as coal liquefaction,­ new materials. to the Petronas Petrochemical Integrated Com­ coal gasification and coal-chemical indus­try dev­ The Shell Eastern Petrochemicals Complex on Bukom Island, Singapore. plex. This links the whole oil and gas value chain, elopment.” This includes the limiting of fossil fuel South Korea starting with upstream exploration to the final imports so that the abundant local coal deposits The South Korean petrochemical sector largely In other parts of Asia, there are also exciting stage of the manufacturing process. The govern­ can be fully utilised, developing trans­port infra­ serves the automotive and electronics industries. times and new challenges ahead for the petro­ ment has also introduced incentives, such as structure, learning about petrochemical­ tech­no­ There has been a drop in demand for such chemical sector. reducing corporate tax to 25% to local- and logy from Chinese projects and attracting more products following slowdowns in Asian and foreign-owned com­panies, as well as further tax foreign investment. European markets, but multiple companies are Malaysia breaks for new companies. In April 2012, the Mongolian government increasing investment and expanding in South Malaysia has evolved since the 1970s from a Malaysia has also introduced the Industrial signed a Memorandum of Understanding with Korea. Aromatics are a particular area of expansion producer of raw materials to a multi-sector Master Plan 3 (IMP3) to maintain its competitive German company ThyssenKrupp to develop a with xylenes capacity set to exceed 10 million economy and petrochemicals has an important for manufacturing and services activities. In relation $2.1 billion coal-to-liquids plant. Prophecy Coal tonnes per annum by 2014. role to play in this mix. Petroleum and its related to petrochemicals, the main strategies of the IMP3 Corporation, a Canadian company, also has signi­ Three companies have major expansion plans products make up 10.1% of the economy. A wide include expanding existing capacities, broadening ficant investment in Mongolia’s nascent coal-to- for their sites in Yeosu. Lotte Chemical Corp Petro­ range of petrochemicals are produced in Malaysia, the range of petrochemicals pro­duced, intensified chemicals industry with projects underway in chemical is expanding production capacity for including polystyrene, olefins, vinyl chloride research and development, making feedstock Ulaan Ovoo and Tugalgatai. ethylene and propylene at its complex. Kumho monomer and polyvinyl chloride. Investments in avail­able at competitive prices and improving Petrochemical is building new Yeosu facilities the sector are estimated at $9.28 billion and there links with downstream industries, especially plastics. Taiwan scheduled to open in 2014. These new facilities are 29 petrochemical plants across Malaysia There are also plans to further integrate the petro­ Ongoing increases in demand and rising prices of will produce styrene butadiene rubber, bisphenol-A, making 39 types of products. Petronas is the main chemical zones in Kertih, Terengganu, Gebeng, petrochemical products have contributed to solid ethylene propylebe diene monomer (EPDM) rubber domestic petrochemical investor. Major inter­nat­ Pahang and Johor, as well as establishing new growth in the Taiwanese petrochemical sector in and methylene di-para-phenylene iso­cynate (MDI). ional players in the petrochemical industry have a petrochemical zones in Bintule, Sarawak, Gurin, recent years. At the end of 2011, Taiwan’s BASF is also increasing MDI capacity at Yeosu, as presence in Malaysia, indicating it is a healthy part Kedah, Tanjung, Pelepas, Johor and Labuan. BASF petrochemical output was at a record-breaking well as a new polyethylene terephthalate­ (PET) of the country’s economy. These companies and Petronas are in an agreement to develop a $65.2 billion, despite challenges faced in the wake facility at Jincheon. Increased PET production can include Dow Chemical, BP, Shell, BASF, Eastman refinery and petrochemical integrated develop­ of deflation in China, the US debt crisis, weakened be used to meet demand from China. Chemicals, Mitsubishi and Lotte Chemical Corp. ment (RAPID) complex in Johor. global demand, expansion in the Chinese and Such expansion plans aim to overcome the The US is the largest source of petrochemical Middle Eastern petrochemical sectors, and local challenges of chronic overcapacity, low operating investment for Malaysia, followed by Japan, the Mongolia occupational accidents. rates, and squeezed margins caused by rising United Kingdom, Germany and Taiwan. Mongolia’s abundant coal reserves – the world’s The sector has remained robust even after a crude prices on naphtha, all of which have Partnerships have also been forged with other third largest at more than 150 billion tons – have major project was aborted in 2011. The Kuo Kuang affected the South Korean petrochemical sector.

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A number of South Korean companies have projected as new projects continue to be developed. APICORP 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 An Integral Part of the companies include Hanwha Chemical Company, and add an 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 Arab Hydrocarbon and speciality synthetic yarns, coming onstream The Philippines in 2013. This is part of the company’s bid to become In the Philippines, there have been mixed fortunes a leading vertically integrated polyester value and Energy Industries in the chemical industry over all 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 Petrochemical, will invest up to $5 for the Philippines with foreign resins producers billion to set up a petrochemical complex in Cilegon, and this may negatively impact on the petro­ Banten with 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 country’s first naphtha feedstock, which costs 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 Thailand’s petrochemical industry is expanding Indonesia with major players signing overseas acquisition Indonesia’s 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, APICORP | Arab Petroleum Investments Corporation are plans for expanding the country’s grow­ing bringing the total number of crackers in Thailand P.O.Box 9599, Dammam 31423, Saudi Arabia polymer resins sector but declining oil pro­duc­tion up to seven. Since the 1990s, petrochemical infra­ Tel. No.: +966 3 847 0444 Fax No.: +966 3 847 0011/22 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 APICORP Bahrain | Al-Moayyed Tower Building (26th Floor) PO Box 18616, Road 2832, Block 428, Al-Seef District Manama, Bahrain Tel No: +973 (0) 17 563 777 Telefax No : +973 (0) 17 581 337 96 WPC Guide Email: [email protected] Website: www.apicorp-arabia.com Global summary Global summary

GDP. The overseas joint ventures are commonly Vietnam previous year, so there is certainly room for Argentina being signed in markets where Thai companies Vietnam is a new player to the Asian petrochemical growth. Further growth is also expected courtesy 2010 was a bumper year for the Argentinian already have a solid export sales presences. marketplace but early steps are being made to of the 2016 Olympic Games in Rio de Janeiro and petro­chemical market with 25% growth reported. The growth has taken place despite three major add this sector to the country’s growing economy. the 2014 FIFA World Cup. However, the sector has faced challenges since setbacks. In December 2009, a Thai court ruling Thailand’s Siam Cement Group has set up a joint The fragmentation of the plastics conversion then, most notably a lack of feedstock access. The ordered that dozens of construction projects on venture with QPI Vietnam (a subsidiary of Qatar sector is a major concern. Braskem is the mono­ drive towards diversification has suffered because the eastern seaboard be suspended until health, Petroleum International), Petrovietnam and poly supplier of polymer resins – this company of plant closures and a prioritisation of residential safety and environmental concerns were addressed. Vinachem to build Vietnam’s first petrochemical serves more than 11,500 converters that operate fuel demands which has restricted gas allocations Severe flooding struck Thailand in September 2011 complex. Siam Cement Group’s stake in the ven­ with high production costs. The naphtha-based to down­stream industries. While the chemical and the damage caused to large industrial estates ture is 28%. producers are struggling to compete with cheap industry overall is very strong in Argentina, led to a three-month disruption to the supply of The plans for the fully integrated $4.5 billion foreign imports – Brazil became a net importer of averaging annual growth of 10.5% between 2007 Thailand’s domestic petrochemical mar­ket. Political complex on Long Son Island in Vietnam’s Ba Ria- oil which made it more vulnerable to both foreign and 2011, the petrochemical sector has been instability in recent years in Thailand has impacted Vung Tau province include a jetty, port, power competition and external prices. A difficult regu­ limited by a scarcity of raw materials. on overall confidence in investing in the country’s plant and storage facilities. It is slated to have a latory environment and energy supply issues are But there is some good news for the long-term economy but there are indications that the confi­ capacity of 1.4 million tpa of olefins using ethane, also challenging the petrochemicals sector. future of the Argentinian petrochemical sector. dence is returning, such as new joint ventures. propane and naphtha as feedstock. Downstream The good news for the Brazilian market is that A favourable economic climate (the economy Natural gas feedstock accounts for more than petrochemical products will be consumed by the depreciation of the Real against the US dollar is projected to grow by 6% over the next few half of Thailand’s petrochemical production. Other Vietnam’s domestic market. It is expected to be and a rise in domestic demand should sustain years, stabilising at 3.5% by 2017) and govern­ feedstocks include imported naphtha and naphtha commercially operational by 2017. increasing output. Discoveries of new oil and gas ment policies to reduce poverty have helped supplies from local refineries. in the region have also helped, ensuring raw increase disposable incomes and food and bev­ Companies including Thaioil Company and IRPC Latin America materials are easily available. erage con­sumption, which also increases con­ Co of Thailand are among those expanding. Thaioil Across the Latin American countries, there are mixed Comperj, a $8.4 billion petrochemicals complex sumer use of plastics. As long as plastics manu­ Company is upping paraxylene production and fortunes for the petrochemical sector. While there near Rio de Janeiro, is expected to be completed facturers find ways to run their businesses effi­ IRPC is upping styrene monomer capacity. is much investment by both govern­ments and pri­ by Petrobras by the end of 2013. ciently, the high cost of feedstock is an issue that vate companies, issues such as feed­stock supply can be overcome. Singapore con­tinue to be an issue. While some Latin Ameri­ Adding to the optimism for the country’s petro­ New investments in production have contributed can countries have ample gas or oil resources to chemical sector is the discovery of shale gas – this to growth in the Singaporean petrochemical be, or potentially be, self-sufficient petrochemical could enhance polymer production capacities. sector. Development has been focused on three producers, others are reliant on imports. Signi­ficant investment in the Neuquen shale gas sites: the Shell Eastern Petrochemical Complex on play in central-western Argentina has improved Bukom, the ExxonMobil Chemical Complex and Brazil prospects. Argentine national energy company the Jurong Aromatics Complex, both on Jurong. Brazil, with its growing economy, has been dubbed YPF (formerly Repsol YPF in conjunction with Singapore is well located to supply China and the as one of the BRIC (Brazil Russia India China) Spain’s Repsol until Argentina nationalised the large refining base is another advantage, especi­ nations, the four countries whose economies YPF sub­sidiary), has exposure to around 3 million ally as competition is faced from the Middle East have become increasingly competitive – and have of the 7.4 million acres of the Neuquen Basin. As a with large feedstock supplies. Sweden’s Perstorp attracted much analysis and scrutiny as a result. result, YPF has driven much of the initial appraisal has also expanded capacity for hexamethylene However, the Brazilian petrochemical sector and development work in the area. However, derivatives at its Singapore manufacturing site. has to balance potential for further growth with a shale gas production is still several years away The Jurong Aromatics Corporation (JAC) is due slowdown in the national economy. Consumption and, in the short term, Argentina will rely on to start benzene production at the end of 2014 of plastics in Brazil in 2012 is 32kg per capita, less imported feedstocks. and this represents the biggest development for than one-third the consumption of the US or International investment may offer more opp­ With the discovery of vast offshore gas reserves, developments in Singapore’s petrochemical sector. Western Europe, but an increase of 6% on the Brazil’s petrochemicals sector could be just over the horizon. or­tunities for the Argentine market, such as

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Pluspetrol, which is investing $480 million in YPFB has also awarded a $US843 million con­ capacity stood at 226,800b/d but a deadline for a ing a $1 billion ethylene facility. A joint venture exploring and developing new natural gas tract to Samsung to build a new petrochemical state-backed plan to increase the total to 300,000b/d with Mexichem and Pemex to produce vinyl reserves in Peru’s largest natural gas block. fertiliser plant in Bolivia’s Cochabamba province. by the end of 2008 was pushed back owing to chloride monomer (VCM) is also planned. Argentinian manufacturers are also looking to The plant is expected to produce 650,000 tons per project delays. develop biodegradable plastics to counter the year of urea along with an additional ammonia Energy shortages will also have to be addressed Peru depletion of oil and gas reserves for feedstock. unit with a planned output of 400,000 tons per year. to revitalise Chile’s polymer production. A lack of Peru’s massive natural gas resources, concentrated Operations are scheduled to start in mid-2015. propylene feedstock has resulted in Petroquim in the Camisea gas field, mean the country has Bolivia EBIH, Bolivia’s state hydrocarbons industriali­ failing to produce close to the 150,000tpa capacity enormous potential for developing a strong Bolivia’s proven oil reserves of 209 million barrels, sation company has outlined $2.46 billion worth at its polypropylene plant and there are no plans petrochemical sector. These resources offer Peru as well as a claimed 391 million barrels of probable of investments in seven petrochemicals projects to increase capacity in the foreseeable future. the potential for at least one world scale cracker reserves and 255 million barrels of possible res­ from 2013-2017. and downstream production. Peru also expects to erves. The country also has South America’s Mexico attract around $53 billion worth of investment in second-largest proven natural gas reserve at Chile Mexico’s petrochemical sector has potential for the energy and mining sectors over the next approximately 24 tcf, according to the US Chile’s petrochemical sector has suffered because growth but this will hinge on a number of factors. decade. The state news agency, Andina, has Geological Survey. Of this, 85% can be found in of low-cost imports, a tough regional export These include: overcoming its dependence on reported that investment will divided between 47 the Tarija region in south-eastern Bolivia. market and a shortfall in gas feedstock. If the coun­ imports, introducing less bureaucratic regulations, projects, 27 of which are under exploration, 11 of More than half of Bolivia’s oil production is try is to overcome these hurdles and rejuvenate­ and more investment. The Mexican government is which have environmental impact studies app­ driven by two fields – Sábalo (37%) and San the petrochemical sector, the biggest chal­lenge keen to swiftly increase up-capacities across the roved, eight of which involve expanding existing Alberto (21%) – and significant operators include will be addressing upstream supply constraints. value chain through the involvement of the projects and one which is still waiting for Petrobras’s Bolivian subsidiary, and YPFB Chaco On the economic front, Chilean producers are private sector, especially major foreign companies. environmental impact approval. If these oil and and YPFB Andina, which are both subsidiaries of also facing stiffer competition in the wake of free In the foreseeable future, Mexico is set to gas resources can be exploited via all these pro­ the national oil company. The state-owned YPFB trade agreements (FTAs), resulting in US producers remain an importer of polymers. With the domes­ jects, Peru would be placed at a distinct com­ Transporte controls most of the country’s petro­ increasing their market share in recent years. tic market, sales of linear low-density polyethylene petitive advantage compared to many of its neigh­ leum transportation network with 2,500km of Polymer production has never been able to meet (LLDPE) have equalled that of low-density poly­ bours, which rely heavily on imported feedstock. pipe­lines capable of carrying crude oil, con­ local demand and this trend is forecast to continue. ethylene (LDPE) and are set to overtake LDPE, But the sector is still in its infancy because of a densate, natural gas liquids and intermediate pro­ Falling gas supplies resulted in an estimated because of LLDPE’s higher tensile strength and lack of infrastructure and environmental approval ducts, and connecting centres of production such methanol output in 2012 of around 500,000 tons. puncture resistance. It is most likely that Mexico for expanding gas production. There is no capacity as Cochabamba, Oruro and La Paz. CLHB S.A Methanex, Chile’s leading methanol producer, will have to keep importing polyolefins as LLDPE at present for production of basic petrochemicals, Nacionalizada, another part of the national oil says that just one in four of its plants is in oper­ capacity is not expected to rise in line with demand. such as ethylene, propylene or polymers. Currently, company, operates a further 1,500km of pipelines, ation, and that it is operating at 50% capacity. The However, the Braksem-Grupo Idesa project may the investment focus is on LNG exports and and an international pipeline in the north con­ company plans to move at least one of its plants help reduce the dependence on imports. This is a fertiliser production. Output is currently insuffici­ nects Bolivia with Chile. out of Chile by the end of 2014, which is an indi­ joint venture between Brazil’s Braksem and Mexico’s ent to meet domestic requirements in addition to These natural oil and gas resources point to a cation of the negative impact low levels of com­ Grupo Idesa, and the companies have awarded a the feedstock needs of a major petrochemicals strong future for the country’s petrochemical petitively priced gas supplies are having on Chilean contract to Technip, a global energy project com­ facility. As such, it is unlikely that Peru will see sector. Bolivia’s state oil company, YPFB, is building petrochemical production. pany. In October 2011, Technip started con­struc­ olefins and polyolefins capacity coming onstream an ethylene and polyethylene plant in the Tarija Overcoming feedstock supply issues will be tion on Ethylene XXI, a $1 billion plant that will in the short- to medium term. region as part of a $4.2 billion project to exploit critical if Chile’s petrochemical sector is to recover. produce ethylene, high-density polyethylene A joint venture between PetroPeru, Brazil’s natural gas output. It wil be using feedstock from Currently, Chile’s ethylene production relies very (HDPE) and LDPE. This plant, which will form the Petrobras and Braskem remains in the MoU stage. the nearby Gran Chaco liquids separation plant. heavily on napththa, which is provided by local core of a petrochemicals complex, is slated for The plan is to create a facility to produce poly­ This $2.3 billion production plant, as well as the refineries. Naphtha provides 76% of Chile’s petro­ completion by 2015. ethylene, but the project has been pushed back to Gran Chaco plant, are slated to be operational as chemical feedstock with 16% from butane and 8% Negotiations have also taken place between 2016 as the investors wait for increased gas sup­ soon as 2014. from ethane. At the end of 2011, Chile’s refining Mexichem and Occidental Petroleum over build­ plies to make it viable.

100 WPC Guide Petrochemicals and Refining 101 The future of the petrochemical industry The future of the petrochemical industry

products which are chemical-free is dishonest, as V Figure 1. everything in nature – including people – is com­ Plastics uses in Europe (2009). The Future posed of chemicals. 75 Petrochemicals are not the problem. They are EU Plastics Market (Mt) EU bio-based Plastics Market 2025 (Mt) of the part of the solution. Consequently, the petro­ 70 chemicals industry has a bright future. However, 65 Petrochemical the industry faces questions about its reputation and the sustainability of petrochemicals, based 60 Industry on environmental and political considerations 3.8 related to the petrochemicals supply chain and 55 Other 3.2 the use of plastics. Unless the industry addresses By Peter Reineck Bio-PE these concerns, they have the potential to dam­ 50 pen demand. Oil-based Continuing innovations are essential 45 plastics Highly specialised plastics made from petro­ to meet increasing global demand. chemicals are used to produce products for ~ essential industries such as healthcare. Public 2010 2015 2020 2025 con­cerns about dwindling petroleum resources X Source: Peter Reineck When considering the current and future impor­ have led to speculation about the future supply Figure 2. tance of petrochemicals and their use of oil reser­ of criti­cal products made from petrochemicals, ves, we should bear in mind that they consume such as pharmaceuticals or plastics used in Total production of plastics worldwide in 2009 Plastics demand is growing with global GDP only about 8% of the world’s oil production versus healthcare applications. However, because only a was 265 million tons (Mt), of which almost 50 Mt growth. Packaging demand is growing at above 92% for fuels. Today, most petrochemical feed­ tiny pro­portion of petrochemicals is used to was consumed in Europe. By far, the largest appli­ GDP rates as consumers in developing countries stocks are made by upgrading refinery streams produce these high value specialised plastics and cation is packaging (38%), followed by a total of increasingly do their food shopping at super­ made when producing fuels such as gasoline pharma­ceuticals, the supply chain for oil-based 34% used in construction, automotive and electri­ markets instead of traditional markets, and con­ and diesel. products for use in healthcare can be consi- cal & electronics. sumers in developed countries buy more con­ Compared to fuels, petrochemicals are a speci­ dered secure. venience foods. In each case, more packaging ality which provides the highest value end-use for It is important to review the impact of market is required. oil. As well, petrochemicals are used in more-or- trends and regulation on future demand for Projected breakdown of the European Total demand for oil-based plastics and fuels is plastics market to 2025. less durable applications such as plastics which petro­chemicals and on the supply chain for increasing, but fossil reserves are finite. Disrup­ act as a carbon sink, whereas burning fossil fuels petrochemical feedstocks – and the changes in ˙EU27+N, CH incl. Other Plastics (~6Mtonnes) tions in the supply chain (in the Middle East, for E & E 6% releases carbon dioxide (CO2, a greenhouse gas) feedstock processing and products which are Automative example) affect the competitive position of petro­ into the atmosphere. Therefore, petrochemicals expected as a result. It is also essential to examine 7% chemicals relative to alternatives and, in addition, are far more sustainable than fuels, and are the how long fossil fuels can last, what are the alter­ petrochemicals have a large carbon footprint. Packaging preferred end-use for oil. natives to petrochemicals, and how the industry 38% Building & There’s a need to future-proof the supply chain. Construction The chemical industry, including petro­chemi­ can be made more sustainable. 21% Consumer awareness and government concerns cals, is central to the pursuit of a sustainable soci­ put pressure on brand owners and retailers to re­ ety. Without it, the prospects of sustainably meet­ Impact of markets and regulation on future place oil-based plastics, not only in packaging, but ing the needs of a global population of 9 billion demand for petrochemicals also in cars and other durables. Manufacturers are

people by the second half of this century are zero, Most of the output of petrochemicals is used to Others taking steps to secure the supply chain, and the 28% as construction materials, transportation and tele­ produce plastics, with the rest being used for EU is following the USA by increasing pressure on 48.5 million tons communications equipment, clothing and crop rubber, paints and coatings, adhesives, insulation oil-based products and incentivising the adoption Source: European Bioplastic fer­tilisers all depend on chemicals. Talk of ‘natural’ materials, detergents, solvents and fibres. of bio-based products as an alternative for oil-

102 WPC Guide Petrochemicals and Refining 103 The future of the petrochemical industry The future of the petrochemical industry

Ethanol produced by fermenting sugar cane can be converted to bio-ethylene to replace oil-based feedstock. Abundant shale gas is driving new ethylene plant construction.

based plastics. Bio-based plastics are produced terephthalate (PET). PE is a commodity plastic and diesel; these refinery streams are then up­ in Western Canada and the Middle East to utilise from plant matter, also known as bio-resources. which is used in a wide variety of applications and graded to produce ethylene, propylene, buta­ locally available NGLs, however steam cracking Industry estimates call for 10% of bio-based is growing at GDP rates. However, PP has been diene, benzene and paraxylene. When ethy­lene is NGLs produces no propylene, only ethylene. plastics in the EU supply chain by 2025. On this growing faster than GDP as it is used in more produced from refinery streams such as naphtha In the past few years, there has been a huge basis, and assuming total plastics demand grows sophisticated developing markets, as has PET, in a steam cracker, propylene is produced at the increase in production of unconventional (shale) at 2.5% pa to 7 Mt, it is projected that 7 Mt of bio- which is used in packaging. Different growth rates same time. gas, much of it ‘wet’. In North America, the abun­ based plastics will be consumed in the EU market for these plastics are reflected in the demand for Many petrochemical plants are integrated with dant supply of shale gas has caused a drop in the in 2025, of which almost half is expected to be their feedstocks: ethylene and propylene (the lar­ refineries in order to optimise the combined oper­ market price of gas, which has driven producers bio-polyethylene (bio-PE). gest and second largest) and paraxylene (used to ations based on adding value to refinery streams to seek customers for NGL and, as a result, a num­ Despite the rapid growth rate of bio-based make PET). through conversion to petrochemicals. The price ber of new ethylene plants that would use shale plas­tics, plastics based on oil are projected to of petrochemicals relative to crude oil is higher gas NGL are under construction. grow twice as much in absolute terms, by 14 Mt. The future for the supply chain for than for fuels, and regulations limit the amount of In future, the proportion of ethylene produced As such, there will be a need for new production petrochemical feedstocks benzene and other materials that can be blended from NGL is expected to increase slightly from capacity for petrochemicals, as well as a need to In the second half of the 20th century, oil replaced into gasoline. 37% today, as these new ethylene plants come on introduce bio-based feedstocks for plastics into coal as the source of feedstocks for plastics and Natural Gas Liquids (NGL), a by-product of pro­ stream. These new plants will produce no propy­ the supply chain. other petrochemical-derived products. These feed­ cessing ‘wet’ natural gas, began to be used in the lene, and some naphtha crackers now producing In terms of volume, PE is the largest plastic, stocks are refinery streams which are co-products USA in the 1970s as a low-cost feedstock for propylene may not be able to compete. Since pro­ followed by polypropylene (PP) and polyethylene or by-products of refining oil to produce gasoline ethylene production. Large plants were also built pylene demand is projected to continue to grow

104 WPC Guide Petrochemicals and Refining 105 The future of the petrochemical industry The future of the petrochemical industry

faster than ethylene, this will lead to continuing natives to petrochemicals are chemicals which are based products. This was not the case for the first printed and metallised, ready-meal trays which tightness in the propylene market and the need identical or functionally similar, produced from generation of bio-based plastics, which were are usually contaminated with food residues, and for new propylene capacity. other fossil fuels or plant matter. Therefore, the big often inferior to oil-based plastics, as well as being automobile trim which is made from multiple Propylene demand is an important driver for trends relate to changes in feedstock, pro­ces­sing more costly. Typically, they were sold as ‘green’ materials. For these products, the best end-of-life the increase in the number of methanol-to-olefins and products which are expected to result from pro­ducts that could be composted after use, option is energy recovery, when bio-based con­ (MTO) plants in the past five years, for which the strategies to make the industry more sustainable. which might not be all that useful for durable tent becomes much more valuable than a petro- feedstock is syngas from gasification. Most of these To date, predictions of ‘peak oil’ (and the end of products, such as phone casings. derived product because the energy recovered is plants are in China and based on coal gasi­fication, the world) were wrong. However, ‘peak cheap oil’ In future, most plastics will still be based on oil, renewable; unlike the petro-derived materials, as

but in future we can expect to see new gasification did occur at the time of the invasion of Iraq and but bio-based plastics will steadily gain market there is no net gain of CO2. plants in Europe too. The EU plants will be based we are now in an era of ‘hard to get oil’. According share. Some second generation bio-based plastics In the 21st century, petrochemicals will con­ on biomass, or wood or food waste, with syngas to the BP Statistical Review of World Energy, June like PLA will have entirely new properties not tinue to play an irreplaceable role. If the industry from the larger ones used to produce bio- 2012, from which the charts below are taken, available from conventional oil-based plastics. For can satisfy stakeholders’ concerns about the sus­ ethylene and bio-propylene either by MTO or world crude oil consumption increased by about drop-in replacements for oil-based products such tain­ability of the supply chain and disposal of other processes. 1.6% pa since 1986, which is well below growth in as bio-PE, the only difference will be the content plas­tics at end of life, its reputation can improve to Gasification of biomass and bio-waste is one global GDP. In recent years, however, all of the net of C14 (radiocarbon) associated with new carbon. the point where society looks to the chemical way in which plastics and petrochemicals pro­ growth came from emerging economies in Asia, This is because plastics produced from oil reserves industry for answers to the major challenges of ducers are expected to take steps to future-proof South & Central America, and the Middle East, which were formed about 3 billion years ago sustainable development. the supply chain and reduce dependency on offsetting declines in Europe and North America. contain no C14 as it has all decayed. fossil fuels by producing bio-based alternates for Nobody knows for certain how long fossil fuels The most attractive applications for bio-based Peter Reineck provides consultancy services for oil-based feedstocks. Another strategy is fermen­ can last, but concerns about carbon footprint and plastics will be those in which recycling is not feas­ chemi­cal industry clients. He also founded Nuplas tation of sugar cane juice or other plant material the potential for disruptions in the oil supply chain ible, for example film packaging which is often Limited www.nuplas.eu to produce PLA. to produce ethanol which is then converted to are already leading to the adoption of strategies bio-ethylene. Braskem in Brazil is already pro­ to future-proof the supply chain by reducing de­ ducing bio-PE by this route, and is currently build­ pendence on oil. Thus the most important trend is Oil production by region Oil consumption by region Million barrels per day Million barrels per day ing a bio-PP plant, expected to come on line in 2013. the growing use of feedstocks derived from bio- 100 100 Asia Pacific In addition, other bio-based intermediates now resources and also from non-oil fossil reserves Africa Middle East close to commercialisation enable the production such as shale gas and coal. Europe & Eurasia 90 90 S. & Cent. America of rubber, paints and coatings, adhesives, insula­ Another trend in the industry is towards more North America 80 80 tion materials, detergents, solvents and fibres which sustainable processes for producing petrochemi­ are wholly or partly bio-based. Several unique bio- cals, for example by using novel catalysts to 70 70

based plastics are already in the market, the lar­ reduce energy requirements and carbon footprint. 60 60 gest being polylactic acid (PLA) which is expected Another approach is so-called green chemistry, 50 50 to replace oil-based plastics in over 10% of pack­ which is a philosophy of chemical research and aging applications within 15 years. Danone laun­ engineering focussed on the design of products 40 40

ched Activia Yogurt in Germany in a PLA cup in 2011. and processes that minimise the use and gener­ 30 30 Looking at other brand owners, Coca Cola intro­ ation of hazardous substances. duced its 30% bio-PET PlantBottle™ in 2009, and Gasification enables more efficient conversion 20 20

in 2011, P&G announced a bio-PE shampoo bottle. of fossil and bio resources into energy and petro­ 10 10 chemicals, and facilitates carbon capture and stor­ 86 91 96 01 06 11 0 86 91 96 01 06 11 0 Future trends age to reduce or eliminate CO emissions. 2 Source: BP Statistical Review of World Energy, June 2012 In future, the use of petrochemicals will continue Finally, the market is starting to see new bio- to grow at or above GDP rates. The only alter­ based products that are as cost-effective as oil- Figures 3 and 4.

106 WPC Guide Petrochemicals and Refining 107 Glossary Glossary

chemicals and as a solvent and component in See also, catalytic reforming. various carbon and hydrogen molecular Petrochemicals automotive fuels. Derivative products Petrochemical derivative structures. BTX A collective abbreviation for benzene, products which can be made in a number of Hydrorefining A refining process for treating glossary of toluene and xylenes. different ways: via intermediates which still petroleum in the presence of catalysts and Butadeine A colourless, flammable hydro- contain only carbon and hydrogen; through substantial quantities of hydrogen. The process terms carbon obtained from petroleum with the intermediates that incorporate chlorine, nitrogen includes desulfurisation and the removal of or oxygen in the finished derivative. Some substances that deactivate catlysts (such as chemical formula, C4H6. Often used to make synthetic rubber. derivatives are finished products while further nitrogen compounds). The process is used in the Acetylene Chemical compound with the steps are required for others to arrive at the conversion of olefins to paraffins to reduce gum Butane Either of two isomers of a gaseous formula C H . It is hydrocarbon that is a colour- desired composition. formation in gasoline and in other processes to 2 2 hydrocarbon with the chemical formula C H . less gas, widely used as a fuel and chemical 4 10 upgrade the quality of a fraction. It is produced synthetically from petroleum. Detergent A cleansing agent, especially a building block. Its uses include household fuel, as a refrigerant, surface-active chemical such as an alkyl sulphonate. Hydrogen A flammable, colourless gas with the chemical symbol H and H as a molecule of gas. It Acetyl A functional group with the formula aerosol propellant and in the manufacture of Distillation A method of physically separating 2 is the lightest and most abundant element in the CH3CO synthetic rubber. mixtures in a boiling liquid mixture. universe. As petrochemicals are produced from Acrylic fibres Fibres where the major raw Butylene A colourless, flammable, liquid gas Dye Substance, either natural or chemical, used hydrogen-containing hydrocarbons, hydrogen is material is acrylonitrile, a derivative of propylene. with a detectable odour. Butylenes have a to colour materials. involved in nearly all petrochemical processes. Aliphatic Hydrocarbons characterised by a chemical formula of C H and are formed during 4 8 Elastomer A material that can resume its The most common application of hydrogen is as straight or branched chain. They do not have a the cracking of petroleum fractions. Butylene is original shape when a deforming force is a reducing agent in catalytic hydrogenation and ring structure. The simplest aliphatic is methane. used in the production of high-octane gasoline, removed, such as natural or synthetic rubber. hydrorefining. Alkane Any of a group of hydrocarbons that butyl alcohols and synthetic rubber. Ethane A colourless, odourless flammable Inorganic The class of chemicals that does not have carbon atoms in changes linked by single Catalytic conversion The catalytic (of or relating gaseous alkane with the formula, C2H6. It is used contain carbons and hydrogens bound together bonds. They can be gaseous, liquid or solid and to a catalyst) oxidation of carbon monoxide and as a fuel and also in the manufacture of organic like those in organic compounds. These typically have the general chemical formula C H . hydrocarbons, especially in automotive exhaust n 2n+2 chemicals. exist as salts, acids and alkaline, as well as some Alkanes occur naturally in petroleum and natural gas to carbon dioxide and water. Ethylene A colourless, flammable gas contain­ gases and elemental compounds. An inorganic gas. They include methane, propane and butane. Catalytic reforming Catalytic reforming is the ing only two carbons that are double-bonded to petrochemical is one that does not contain car­ See also, paraffin. chemical process which is used to convert low- one another. It is an olefin that is used extensively bon atoms, ammonia being the most common. Ammonia A pungent, colourless gas with the octane petroleum refinery naphthas into high- in chemical synthesis and to make many different Intermediates Petrochemical intermediates are formula NH , often used to manufacture octane liquid products. These products are called 3 plastics, such as plastic used for water bottles. generally produced by chemical conversion of fertilisers and a range of nitrogen-containing reformates and they are components of high- Feedstock The raw material that is needed for primary petrochemicals to form more compli­ca­ organic and inorganic chemicals. octane petrol. some industrial processes. In relation to petro­ ted derivative products. Common petrochemical Aromatics Primary petrochemicals which Coking The process of deriving petroleum coke, chemicals, feedstocks derived from petroleum intermediate products include vinyl acetate for include benzene, toluene and xylenes. Aromatics a carbonaceous solid, from petroleum using oil are mainly used for the manufacture of chemi­ paint, paper and textile coatings, vinyl chloride are very stable and have multiple double bonds refinery coker units or other cracking processes. cals, synthetic rubber and a variety of plastics. for polyvinyl chloride (PVC) resin manufacturing, and a six-carbon ring structure. Cracking The breaking down of large molecules Fraction A component of a mixture that has ethylene glycol for polyester textile fibres and Asphalt A brown-black solid or semi-solid as part of the refining process. been separated by a fractional process, such as styrene which is used in rubber and plastic manufacturing. mixture of bitumens which are commonly used Cyclisation See dehydrogenation, catalytic fractional distillation. in roofing, paving and waterproofing. Derived reforming. Fractional distillation The process of separating Isobutylene A four-carbon branched olefin, one from either native deposits or as a petroleum of the four isomers of butane, with the chemical Dehydrogenation Any process that involves the the different parts of a liquid mixture by heating by-product. formula C H . removal of hydrogen. Frequently used in catalytic it and separately condensing the parts according 4 8

Benzene (C6H6) A colourless, volatile, flammable reforming processes to convert non-aromatic to their boiling points. Isomer Any of two or more substances that are liquid used as a base structure to which different hydrocarbons to aromatic. Cyclisation – the Hydrocarbon A broad term that refers to composed of the same elements in the same pro­ atoms and molecular structures can be attached. formation of one or more rings in a hydrocarbon organic chemicals that are characterised by portions but have differing properties because of Common uses include medicine, crop protection – is also part of the catalytic reforming process. differences in how the atoms are arranged.

108 WPC Guide Petrochemicals and Refining 109 Glossary Glossary

Isomerisation The conversion of a compound atoms, hydrogen atoms or other substitutes polymer is Perspex. Naturally occurring oil and other industrial processes. The Claus into an isomer of itself. Different processes can be for hydrogen, such as halogens, sulphur and polymers include DNA, tortoiseshell and process is the most significant gas desulfurisation used to achieve isomerisation. For example, in nitrogen. cellulose in trees. Major polymer products process. It involves a series of high-temperature petroleum refining, there are two processes Paraffin An alkane in liquid or wax form. It include PVC and polystyrene (derived from reheating processes. commonly used: a process that uses an alumi­ consists mainly of alkane hydrocarbons with ethylene) and polypropylene (derived Surfactant A surface-active agent, the basic nium chloride catalyst plus hydrogen chloride; boiling points in the range of 150°-300°C. Used as from propylene). cleaning agent of petrochemistry. and a process where feedstock is mixed with an aircraft fuel, in domestic heaters and as a Polymerisation The chemical process that Synthesis gas A mixture of carbon monoxide organic chloride and recycled hydrogen, heated solvent. Also known as kerosene. combines several monomers to form a polymer and hydrogen. This is mainly used in chemical and transferred to a reactor. Petrochemicals Any substance obtained from or polymeric compound. synthesis to make hydrocarbons. Methane A colourless, odourless flammable gas petroleum or natural gas. Propane A colourless gas which is found in Synthetic Produced by synthesis, not of with the chemical formula CH . It is the simplest 4 Petroleum A thick, flammable mixture of natural gas and petroleum. Widely used as fuel. natural origin. alkane and the main constituent of natural gas. Its chemical formula is C H . gaseous liquid and solid hydrocarbons occurring 3 8 Synthetic fibres Manufactured fibres, the most Methanol A colourless, volatile, poisonous liquid naturally beneath the Earth’s surface. The origins Propylene (C H ) A three-carbon, flammable 3 6 common of which are polyester, a combination compound with the chemical formula CH OH. It 3 of petroleum are believed to come from gaseous molecule containing a double-bond. of ethylene glycol and terephtalic acid (made is commonly used as a solvent and a fuel. Also accumulated remains of fossilised plants and Propylene is an olefin frequently used in organic from xyklene); and nylon, which has benzene known as methyl alcohol or wood alcohol. animals. Petroleum can be separated into synthesis. It is a base chemical used to make as its most important raw material. See also, Mineral oil See petroleum oil. fractions including natural gas, gasoline, polypropylene fibres which are commonly used acrylic fibres. lubricating oils, naptha, kerosense, paraffin wax in carpets and clothing. Monomer A molecule that can combine with Thermal cracking A petroleum refining process and asphalt.It can also be used as raw material other molecules of the same kind to form a Refinery An industrial plant where a crude that decomposes, rearranges or combines hydro­ for a range of derivative products. polymer. substance, such as crude oil, natural gas or coal, carbon molecules using the application of heat, Naphtha The collective name for any of the Petroleum coke Often abbreviated to is purified so it can then be turned into more without the use of catalysts. “petcoke” or “pet coke”, this is the carbonaceous useful products. highly volatile flammable liquid mixtures of Thermoplastic A synthetic plastic or resin, such solid derived from petroleum during a hydrocarbons which are distilled from petroleum, Reformate See Catalytic reforming and as polystyrene, that becomes soft when heated refining process. coal tar and natural gas. Naphtha mixtures are conversion. and re-hardens on cooling without any commonly used as solvents, fuel and to make Petroleum oil Any light hydrocarbon oil that is a Solvent A substance, usually liquid, which is appreciable change of properties. various chemicals. distillate of petroleum. It has a wide range of uses dissolved with another substance to form a Thermosetting plastic A plastic that hardens including cosmetics, preservatives, medicines, Natural gas A fossil fuel. Natural gas is a solution or is capable of dissolving another permanently after one application of heat and cleaning and industrial lubrication. Also known mixture of naturally occurring hydrocarbon gases substance. pressure. Once hardened, a thermosetting plastic as mineral oil. and it is primarily used a fuel and for making Solvent extraction A method used to separate cannot be remoulded. organic com­pounds. Deposits are found beneath Plastic A broad term describing any of a large compounds based on their relative solubilities in Toluene A liquid aromatic hydrocarbon with a the Earth’s surface. Methane is the primary number of synthetic (usually organic) materials two different immiscible liquids, usually water benzene-like structure. However, it is less compo­nent of natural gas but it also contains that have a polymeric structure and can be and an organic solvent. Also known as “liquid- flammable, toxic and volatile than benzene. It is varying quantities of ethane, propane, butane moulded while soft and and then set. In its liquid extraction” and “partitioning”. used in organic synthesis as a solvent and an and nitrogen. finished state, a plastic might contain plasticiser, Steam cracking The high-temperature cracking anti-knock agent in gasoline. Olefins Primary petrochemicals which include stabiliser, filler or pigments. See also, thermo­ of petroleum hydrocarbons in the presence of Wax A natural, oily or greasy substance consist­ ethylene, propylene and butadiene. These are setting plastic and thermoplastic. steam as part of the petroleum-refining process. ing of hydrocarbons or esters of fatty acids that unsaturated molecules of carbon and hydrogen Plasticiser A substance added to plastic to make Steam cracking is the main industrial method are insoluble in water but soluble in non-polar that appear as short chains of two, three or four it more pliable. used for producing olefins. Also referred to as organic solvents, such as benzene. carbons in length. Olefins are produced by Polymer A compound, either naturally steam-assisted thermal cracking. Xylene A major aromatic feedstock usually steam-cracking natural gas liquids. Also known occurring or synthetic, that has large molecules Sulfur recovery The process whereby gas is obtained from petroleum or natural gas disti­ as alkenes. made up of many relatively simple repeated desulfurised. Sulfur can be recovered from raw llates. Used in the manufacture of plastics and Organic Chemical compounds that contain units (see monomer). All plastics are examples natural gas and by-product gases containing synthetic fibres as a solvent, and in the blending carbon atoms bonded to other carbon of polymers. A common example of a synthetic hydrogen sulphide derived from refining crude of gasoline.

110 WPC Guide Petrochemicals and Refining 111 Acknowledgements Acknowledgements

For WPC: Alcohols: BASF SE (43). Director General: Dr Pierce Riemer Petrochemicals in healthcare and cosmetics: Rob Director of Communications: Ulrike von Lonski Marson [CC-BY-2.0] (44), Laurence Livermore [CC- For ISC: BY-2.0] (45 upper), Barry Skeates [CC-BY-2.0] (45 Editor: Mark Blacklock lower), Beiersdorf AG (46), BASF SE/Fotodesign Deputy Editor: Georgia Lewis Schmalow (47). Copy & Picture Editor: Adrian Giddings Petrochemicals in computers and electronics: TDC AS/ Publisher: Nigel Ruddin Jørgen True (50), Michael Hicks [CC-BY-2.0] (51), Publications Director: Robert Miskin PolyIC (52). Finance Director: Yvonne O’Donnell Transport and automotive uses: Brett Levin Finance Assistants: Maria Picardo, Anita d’Souza Photography [CC-BY-2.0] (54), Royal Dutch Shell (55 Senior Consultants: Jeffrey Fearnside, Michael left), Daimler AG (55 right), Total (56), Getty Images Gaskell, Karin Hawksley, Jonathan Unsworth (57 upper), DuPont (57 lower). Art and Design Director: Michael Morey Petrochemicals in construction: Borealis AG (58), Printed by: Buxton Press Ltd DuPont (59), BASF SE/Detlef W. Schmalow (60), BASF WPC and ISC would like to express their thanks to SE/Eye of science (61 upper), Bayer MaterialScience the following companies, people and organisations AG (61 lower). for providing pictures. The credits are listed by Fertilisers: Deere & Company (63) article. Where the pictures for an article came from Petrochemical usage in food: Pen Waggener [CC- a variety of sources, the appropriate page numbers BY-2.0] (65), Edvvc [CC-BY-2.0] (66), DuPont (67), are given in brackets after each source. Andrea Pokrzywinski [CC-BY-2.0] (68), BASF SE/ Cover: Royal Dutch Shell (left), Daimler AG/www. Fotodesign Schmalow (69). hoch-zwei.net (right). Textile industry uses: BASF SE/Eye of science (70), Opening remarks, Message, WPC overview: WPC. BASF SE/Bernhard Kunz (71), Royal Dutch Shell (72 Petrochemicals historical timeline: Drake Well upper), DuPont (72 lower & 73), Aquafil (74). Museum (16), Kevin Stanchfield [CC-BY-2.0] (17), Sports and leisure: Library of Congress, Prints & Bayer AG (18), UN Photo (19). Photographs Division, HAER, HAER TX-108-11 (77), Introduction to extraction, refining and processing: BASF SE (78 upper), DuPont (78 lower), David Daimler AG (20), BP (21), Royal Dutch Shell (23, 26 Merrett [CC-BY-2.0] (79). and 26 inset); Enefit (24), Axens NA/John Duddy Global summary: Ole Jørgen Bratland/Statoil (80), (28), BASF SE/Detlef W. Schmalow (29). Nexen Inc. (82), BASF SE (83), OJSC Sibur Holding Petrochemical feedstocks: Simon Townsley/BG Group (84), Borouge (85), ORPIC (86), ThyssenKrupp Uhde (33), BASF SE/Bernhard Kunz (34,35). GmbH (87 upper), Saudi Arabian Oil Co. (87 lower), Gas-to-liquids: Max Planck Institute of Coal Research Borouge (89), Royal Dutch Shell (90), Exxon Mobil (36), Petro SA (38 upper left), Oryx GTL (38 upper Corporation/Business Wire (91), Royal Dutch Shell right), Royal Dutch Shell (38 lower & 39), Eudon (93), Petrobras (98 & 100) Hickey/Escravos GTL (40). The future of the petrochemical industry: Royal Dutch Shell (104), Nexen Inc. (105).

112 WPC Guide