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Guide
Petrochemicals
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ENGINEERING & CONSTRUCTION,
Outstanding solutions for the biggest Petroleum
Council
Oil & gas challenges
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
Guide
and onshore projects, particularly in oil & gas markets.
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.
Petrochemicals
Skills, Assets, Innovation, People, Environment, Market.
and Refining
Published by International Systems and Communications Limited (ISC)
in conjunction with the World Petroleum Council (WPC).
Copyright © 2013. The entire content of this publication is protected by copyright, full details of which are available from the
publisher. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems or transmitted in any form or
by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior permission of the copyright owner.
Fertiliser Plants
Ltd. to produce synfuels from oil sands (Horizon Project,
phases 1 and 2).
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.
Contents
5
The President’s opening remarks Message from the Director General
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 unprecedented 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
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.
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.
WPC overview
Congress from the candidate countries. adopted the issue of young people as part of its In 2008, with the 19th Congress in Madrid, the
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
advances in conventional and unconventional Chinese National Committee donated all com globe. The 19th Congress was the first one to off
premier oil and gas forum and is the
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.
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
Petrochemicals
his first oil refinery and created the Standard Oil 1909 The discovery barrels.
Company with his brother, William and several of Bakelite is ann 1925 Synthetic fuels pioneered with the
historical
associates. ounced. Considered development of the Fischer-Tropsch process by
1865 First successful oil pipeline built from the world’s first plas German researchers Franz Fischer and Hans
timeline
Titusville to a railway station five miles away. tic, it was invented Tropsch. Coal, biomass or natural gas could now
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
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
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-
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 industrial 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.
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. (i n s e t ) 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 liquefac 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
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 environmental 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.
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
mainly obtained from natural gas. Naphtha and
and supply trends can change, especially when new.
Ethane feedstock supply has decreased in the
sector. As such, planned petrochemical plants in
the Middle East are based on naphtha feedstock.
feedstocks gas oil, as well as benzene, toluene and xylenes, (a
group commonly referred to as BTX) are obtained
Middle East and Canada, for example. New oil and
gas discoveries have impacted on the petro
Natural gas production increased in Saudi Arabia,
Iran and Qatar but it’s not enough to satisfy the
from petroleum refineries. Ethylene, propylene chemical industries of the US, Brazil and Canada. requirements. Despite the increases in natural gas
Oil, gas and coal provide the
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.
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.
Gas-to-liquids and South Africa had large coal reserves but had
to import oil. The challenge of subsequent R&D
would use shale gas as a feedstock. Other com
panies are considering projects.
For its offshore oil fields Petrobras is evaluating a
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
methods are used: international market.
the peak. It was South Africa which took the lead GTL is a means of monetising gas resources that
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
Then Fischer-Tropsch synthesis converts syngas conventional petrochemical upgrading processes,
price now around $4/mmBtu the US oil premium
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.
Professor Franz Fischer (l e f t ) and Dr Hans Tropsch carried out
It is the flood of unconventional gas which has
pioneering work on synthetic fuels. driven US prices down and is now driving interest
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
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
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
bathroom cabinets the world over.
and gels.
Petrochemical resins have also been used in
in healthcare Healthcare
drug purification. These resins simplify mass pro
duction of medicine, thus making them more
and cosmetics Petrochemicals are used in healthcare products,
from the most commonplace to the highly speci
affordable to produce and then distribute. The
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.
Petrochemical productss have been the-counter pain medications. Plastics play an important role in healthcare
Plastics are used in the manufacture of surgical gloves, petri
While penicillin, a drug that has saved countless too. Resins and plastics from petrochemicals
developed for a wide range of 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.
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.
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
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.
While there are environmental issues surround There is no natural source for these ingredients and
WHAT YOU CAN EXPECT VISIT ALBERTA
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: info@wpcyouthforum.com
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
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
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.
Computer housings, monitors, keyboards, l Polymethyl pentane (PMP) Circuit boards.
manufacturers rely heavily on a wide range of that are durable as well as those that are delicate.
telephone handsets. l Polyphenylene oxide (PPO) TV housings,
plastics for control panels, housings, wiring A new era for plastic electronics is here,
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 interconnect devices. Replaces ceramics in
l Epoxy resins Electrical components.
– 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 Phenol formaldehyde Fuses boxes, switches, l Styrene acrylonitrile (SAN) Outer covers of
strong commitment to research and develop The multifaceted uses of petrochemicals
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
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
Kevlar honeycomb, exhibits great structural strength while
Kromatis, meanwhile, is used for urban roads and petrochemical-derived product, and a seat made of plastics in the manufacture of aircrafts has 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.
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.
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
High-density polyethylene replacing corroded steel pipework in
Tyvek, manufactured by DuPont, is strong but easy uction and many synthetic-based paints rely on ture, improve adhesion, reduce levels of glossiness
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.
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
X-Seed hardening accelerator (here magnified 960:1) makes
consistency, and horsehair to prevent shrinkage produced using acrylics, polyurethanes and in factories rather than work on building sites.
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.
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.
Haber invented a way to extract it – into a
tiliser can do, such as causing algae to grow and
depleting waterways of oxygen. However, animal
many markets now place restrictions on who can
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
principle is employed today using natural gas as a cheaper to buy than many organic alternatives. be reduced by combining its use with organic
invaluable role in agriculture since
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.
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
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.
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
astaxanthin, fed to farmed
been rising concerns over the safety and long- to ensure that naturally sourced plastics are on
salmon, both improves their term consumption effects on human health. A par with petroleum-derived plastics in terms of
health and imparts the
characteristic redness of
clear cut consensus on the usage of the different effectiveness, cost and production efficiency.
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.
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
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
Best known for its use in bulletproof vests, Kevlar’s properties of
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
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
by the oil industry in a subsea application for drilling and
waterproof garments. The combination of warmth, temperature range. As such, it is used on wetsuits, many different grades for a range of clothing,
recovery. durability and weatherproofing makes it a very laptop sleeves, orthopaedic braces, electrical insu accessories and equipment that is safe and cut-
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
Sports and
Synthetic turf has gone on to
surfacing. It has become a popular surface for find many uses beyond the
tennis and netball courts. The rubber is a multi- field of play.
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.
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
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 BASF’s plant in Schwarzheide. BASF is one of many German
tant part of Russia’s continued economic growth. In 2012, two major Russian players, gas giant
markets, such as the US. As long as oil prices companies increasing production. Russian petrochemical producers have responded Gazprom and petrochemical manufacturer Sibur,
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.
Corporation Sohar that will provide feedstock for the new PTA-
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 Mesaieed.
(OAPEC) in September 1974. APICORP’s vision is to As part of its current five-year strategy, the multi
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
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.
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.
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.
Arab Hydrocarbon
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
and speciality synthetic yarns, coming onstream
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
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.
Industry
60
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 Bio-PE
By Peter Reineck 50
these concerns, they have the potential to dam
Oil-based
pen demand.
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 Source: Peter Reineck
X
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
releases carbon dioxide (CO2, a greenhouse gas) feedstock processing and products which are 6%
Automative
example) affect the competitive position of petro
7%
into the atmosphere. Therefore, petrochemicals expected as a result. It is also essential to examine 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-
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
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.
20 20
duced its 30% bio-PET PlantBottle™ in 2009, and Gasification enables more efficient conversion
in 2011, P&G announced a bio-PE shampoo bottle. of fossil and bio resources into energy and petro 10 10
terms Butadeine A colourless, flammable hydro- contain only carbon and hydrogen; through substantial quantities of hydrogen. The process
carbon obtained from petroleum with the intermediates that incorporate chlorine, nitrogen includes desulfurisation and the removal of
chemical formula, C4H6. Often used to make or oxygen in the finished derivative. Some substances that deactivate catlysts (such as
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 C2H2. It is hydrocarbon that is a colour- desired composition. formation in gasoline and in other processes to
hydrocarbon with the chemical formula C4H10.
less gas, widely used as a fuel and chemical Detergent A cleansing agent, especially a upgrade the quality of a fraction.
It is produced synthetically from petroleum.
building block. surface-active chemical such as an alkyl sulphonate. Hydrogen A flammable, colourless gas with the
Its uses include household fuel, as a refrigerant,
Acetyl A functional group with the formula aerosol propellant and in the manufacture of Distillation A method of physically separating chemical symbol H and H2 as a molecule of gas. It
CH3CO synthetic rubber. mixtures in a boiling liquid mixture. is the lightest and most abundant element in the
Acrylic fibres Fibres where the major raw universe. As petrochemicals are produced from
Butylene A colourless, flammable, liquid gas Dye Substance, either natural or chemical, used
material is acrylonitrile, a derivative of propylene. hydrogen-containing hydrocarbons, hydrogen is
with a detectable odour. Butylenes have a to colour materials.
involved in nearly all petrochemical processes.
Aliphatic Hydrocarbons characterised by a chemical formula of C4H8 and are formed during 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 CnH2n+2. hydrocarbons, especially in automotive exhaust 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 NH3, often used to manufacture octane liquid products. These products are called 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 ethylene glycol for polyester textile fibres and
Fraction A component of a mixture that has
Asphalt A brown-black solid or semi-solid as part of the refining process. styrene which is used in rubber and plastic
been separated by a fractional process, such as
mixture of bitumens which are commonly used manufacturing.
Cyclisation See dehydrogenation, catalytic fractional distillation.
in roofing, paving and waterproofing. Derived reforming. Isobutylene A four-carbon branched olefin, one
Fractional distillation The process of separating
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 C4H8.
removal of hydrogen. Frequently used in catalytic it and separately condensing the parts according
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 composed of the same elements in the same pro
Hydrocarbon A broad term that refers to
atoms and molecular structures can be attached. formation of one or more rings in a hydrocarbon portions but have differing properties because of
organic chemicals that are characterised by
Common uses include medicine, crop protection – is also part of the catalytic reforming process. differences in how the atoms are arranged.
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. or polymeric compound.
Petrochemicals Any substance obtained from 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 CH4. It is the simplest natural gas and petroleum. Widely used as fuel.
Petroleum A thick, flammable mixture of natural origin.
alkane and the main constituent of natural gas. Its chemical formula is C3H8.
gaseous liquid and solid hydrocarbons occurring Synthetic fibres Manufactured fibres, the most
Methanol A colourless, volatile, poisonous liquid naturally beneath the Earth’s surface. The origins Propylene (C3H6) A three-carbon, flammable common of which are polyester, a combination
compound with the chemical formula CH3OH. It 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.
Monomer A molecule that can combine with lubricating oils, naptha, kerosense, paraffin wax in carpets and clothing.
Thermal cracking A petroleum refining process
other molecules of the same kind to form a and asphalt.It can also be used as raw material Refinery An industrial plant where a crude that decomposes, rearranges or combines hydro
polymer. for a range of derivative products. 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.
highly volatile flammable liquid mixtures of “petcoke” or “pet coke”, this is the carbonaceous useful products.
Thermoplastic A synthetic plastic or resin, such
hydrocarbons which are distilled from petroleum, solid derived from petroleum during a Reformate See Catalytic reforming and as polystyrene, that becomes soft when heated
coal tar and natural gas. Naphtha mixtures are refining process. 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
Natural gas A fossil fuel. Natural gas is a including cosmetics, preservatives, medicines, solution or is capable of dissolving another permanently after one application of heat and
mixture of naturally occurring hydrocarbon gases cleaning and industrial lubrication. Also known substance. pressure. Once hardened, a thermosetting plastic
and it is primarily used a fuel and for making as mineral oil.
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.
steam-cracking natural gas liquids. Also known Xylene A major aromatic feedstock usually
occurring or synthetic, that has large molecules Sulfur recovery The process whereby gas is
as alkenes. obtained from petroleum or natural gas disti
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.
Acknowledgements