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Crude Oil to Chemicals Complexes and now Gas to Chemicals Complexes? Life is sure getting complex!
09 February 2021Dr. Jeffrey S. Plotkin
So-called "crude oil to chemicals"
refineries or COTC is a trend that has received
a lot of attention and investment over the last
several years. In 2019 in China, Hengli started-up
a huge 20 million barrels per year crude oil refinery with the aim
of maximizing chemicals production, up to 40% of
output (see image below), primarily para-xylene to be used
for their polyester production. In 2020, Zhejiang Petroleum
& Chemicals also started up a similar refinery in
China. Other such crude oil to chemicals refineries are
either starting up, in construction, or under development. With
forecasts of flattening gasoline and diesel
demand, such highly integrated refineries that emphasize
chemicals production over fuels, will likely become increasingly
important. But from a purely process chemistry point of view (which
is how I tend the view the world) nothing much new here to report,
mostly using and/or modifying existing technologies - on
steroids! (My engineer colleagues, I am sure, will be
quick to tell me that such huge jumps in scale are no easy feats,
and I respect that.)
The recent announcement of
an agreement by Sibur, Gazprom Neft, and Uzbekneftegaz
to study the "creation of a gas to
chemicalscomplex" using methanol to olefins (MTO)
technology in Uzbekistan is very interesting. Why do I say that?
Historically, the only large volume chemical products made from
natural gas are ammonia and methanol - not olefins, not aromatics.
However, that paradigm started to change in 2011
when the first MTO plants started up in China and
now there is over 3 million metric tons per year of ethylene
capacity in China via MTO. Although, some of the methanol feedstock
for these plants is home-grown coal-based methanol, some is
imported methanol made from natural gas. But I think it is fair to
say that such MTO plants cannot be described as "gas to
chemicals complexes", considering that long voyage of imported
methanol across the sea.
While the product slate for the proposed gas to chemicals MTO
complex in Uzbekistan has not been explicitly announced, the very recent
announcement (Feb 2, 2021) by Versalis that they are
licensing LDPE and EVA technology to this project
gives some indication about how the ethylene will be used. This
complex will be the first time that MTO or its cousin
technology, methanol to propylene (MTP), will be used outside of
China. Other such gas to chemicals projects had earlier
been announced and under study but failed to make it, at least so
far, to the finish line. For instance, in 2014,
BASF had announced their intention of building a
gas-based MTP complex in the U.S. but this project was scuttled in
2016 owing to poor market conditions. And in 2017,
NPC in Iran had announced that they were going to
license MTP technology from Air Liquide/Lurgi but due to
international tensions and sanctions over Iran's nuclear program,
this continuing relationship is unclear. Nevertheless, it
now appears NPC has made progress on its own MTP technology
and a gas to chemicals complex in Iran may still be in the
cards.
For a more in-depth discussion and understanding of how
the interaction of technology, markets and economics drive
profitability in the petrochemical industry, why not considering
joining one my virtual courses? I promise to unravel and breakdown
all of this "complexity".
