ALBERTA PROPYLENE UPGRADING PROSPECTS prepared for ALBERTA DEPARTMENT OF ECONOMIC DEVELOPMENT by T. J. MCCANN AND ASSOCIATES LTD. in conjunction with SIGURDSON & ASSOCIATES MARCH 2000 TABLE OF CONTENTS PAGE GLOSSARY ...................................................................................................................................................................................vii DISCLAIMER...............................................................................................................................................................................viii 1.0 EXECUTIVE SUMMARY............................................................................................................................................... 9 2.0 INTRODUCTION .......................................................................................................................................................... 11 2.1 Terms of Reference......................................................................................................................................... 11 2.2 General Bases.................................................................................................................................................. 11 2.3 Propylene Only ............................................................................................................................................... 11 3.0 BYPRODUCT PROPYLENE ........................................................................................................................................ 12 3.1 Availability ..................................................................................................................................................... 12 3.1.1 Overall............................................................................................................................................. 12 3.1.2 Incremental Propylene from Ethylene Production........................................................................... 14 3.1.3 Lack of Flexibility........................................................................................................................... 14 3.2 Byproduct Propylene Processing..................................................................................................................... 14 3.2.1 Preamble.......................................................................................................................................... 14 3.2.2 Feedstock Handling......................................................................................................................... 15 3.2.3 Product Propylene Qualities............................................................................................................ 16 3.2.4 Byproduct Processing...................................................................................................................... 17 3.2.5 Excess Product Sales....................................................................................................................... 17 3.2.6 Byproduct Propylene Valuation ...................................................................................................... 18 4.0 PROPYLENE FROM PROPANE .................................................................................................................................. 20 4.1 Preamble ......................................................................................................................................................... 20 4.2 Technology...................................................................................................................................................... 20 4.3 Integration Potential........................................................................................................................................ 21 4.4 Hydrogen Use ................................................................................................................................................. 22 4.5 Propylene Handling......................................................................................................................................... 22 4.6 Production Cost............................................................................................................................................... 22 4.7 Propane from Propylene Cost.......................................................................................................................... 24 5.0 PROPYLENE CHEMICAL OPPORTUNITIES IN ALBERTA.................................................................................... 26 5.1 Propylene Derivatives in an Alberta Context .................................................................................................. 26 5.2 Polypropylene (PP) ......................................................................................................................................... 26 5.2.1 North American Market for Polypropylene (PP)............................................................................. 26 5.2.2 Major Producers of Polypropylene (PP).......................................................................................... 27 5.2.3 Production Technology for Polypropylene (PP).............................................................................. 27 5.2.4 Technical Business Trends in Polypropylene (PP).......................................................................... 28 5.2.5 Potential for Alberta ........................................................................................................................ 29 5.3 Acrylonitrile (ACN) ........................................................................................................................................ 29 5.3.1 North American Market for Acrylonitrile (ACN)............................................................................ 29 5.3.2 Major Producers of Acrylonitrile (ACN)......................................................................................... 30 5.3.3 Production Technology for Acrylonitrile (ACN) ............................................................................ 30 5.3.4 Technical Business Trends in Acrylonitrile (ACN)......................................................................... 31 5.3.5 Potential for Alberta for Acrylonitrile (ACN) ................................................................................. 31 5.4 Cumene and Phenol......................................................................................................................................... 32 5.4.1 North American Market for Phenol and Cumene ............................................................................ 32 5.4.2 Major Producers of Cumene and Phenol ......................................................................................... 32 5.4.3 Production Technology for Cumene and Phenol............................................................................. 33 5.4.4 Technical Business Trends in Cumene and Phenol ......................................................................... 35 5.4.5 Potential for Alberta in Cumene and Phenol ................................................................................... 35 5.5 Propylene Oxide (PO) and Glycol................................................................................................................... 36 5.5.1 North American Market for Propylene Oxide (PO) and Glycol ...................................................... 36 5.5.2 Major Producers of Propylene Oxide (PO) and Glycols.................................................................. 37 - i - TABLE OF CONTENTS PAGE 5.5.3 Production Technology for Propylene Oxide (PO) and Glycol ....................................................... 37 5.5.4 Technical Business Trends in Propylene Oxide (PO) and Glycol ................................................... 40 5.5.5 Potential for Alberta with Propylene Oxide (PO) and Glycol ......................................................... 40 5.6 Propylene Ethers ............................................................................................................................................. 40 5.6.1 North American Market for Propylene Ethers................................................................................. 41 5.6.2 Major Producers of Propylene Ethers.............................................................................................. 41 5.6.3 Production Technology for Propylene Glycol Ethers...................................................................... 41 5.6.4 Technical Business Trends in Propylene Glycol Ethers .................................................................. 42 5.6.5 Potential for Alberta with Propylene Glycol Ethers ........................................................................ 42 5.7 n-Butanol......................................................................................................................................................... 42 5.7.1 North American Market for n-Butanol ............................................................................................ 42 5.7.2 Major Producers of n-Butanol ......................................................................................................... 42 5.7.3 Production Technology for B-butanol............................................................................................. 43 5.7.4 Technical Business Trends