Energy Singularity
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Energy singularity means a point where our source of energy is almost infinite, coming from the renewable sources and completely accessible to everyone on the planet.

04 December 2007

Petrochemical Projects Archive for December 2007

China’s Synthetic Butadiene Rubber Plants On-stream 2008
China is likely to increase butadiene imports in 2008 as 5 new synthetic butadiene rubber plants are coming on-stream in 2008. The capacity for the 5 new plants will add 320 ktpa tonnes per year of synthetic rubber in China.

Butadiene, a scarce feedstock in China has no new capacity expansion announcement yet. The five butadiene rubber plants will be:
1. 100,000 tonne/year SBR plant capacity at Lanzhou Petrochemical
2. 50,000 tonne/year SBR plant capacity in Guangdong province
3. 100,000 tonne/year styrene butadiene styrene (SBS) plant capacity in Guangdong province
4. 20,000 tonne/year styrene-ethylene-butylene-styrene (SEBS) plant capacity in Jiangsu province
5. 50,000 tonne/year polybutadiene rubber (BR) plant capacity in Jiangsu province

Petrochemical Complex: IOC for Plan for Phase II Mixed Feed CrackerIndian Oil Corporation (IOC) has planned for a mixed feed cracker and downstream derivatives petrochemical plants
complex at Abhayachandrapur in Orissa. The petrochemical complex which will include refinery and polyolefins petrochemical plants will be built for a cost of $5 billion. The feedstock will most likely use offgases, naphtha and gas oil feedstock. This is Phase II following the Phase 1 of the project which has a capacity to produce 15 mil tonne per year of refinery products.

The petrochemical plants already lining up for the plan include ethyl vinyl acetate, polyethylenes, polypropylene, monoethylene glycol and polyvinyl chloride. Petrochemical products are enjoying good market outlook given high demand and decreasing supply due to middle east delays.

Petrochemical Technology: ExxonMobil’s Coal to Fuel Technology Applied in USCoal to Fuel technology which widely utilized in the GTO (Gas to Olefins) technology uses coals to produce syngas that is used for production of methanol which can either be used for DME for gasoline blending or as feedstock for petrochemicals (olefins).

DKRW Advanced Fuels has reportedly being another US company which will use ExxonMobil’s methanol to gasoline technology for the gasoline blending, reducing the sulphur and benzene content of the fuel as well.

The project will be implemented in Medicine Bow, Wyoming with capacity of 15,000 barrels per day of gasoline expected to be commissioned in 2012. DKRW will only use ExxonMobil’s technology for Methanol to Gasoline but the syngas will be produced by DKRW for the methanol production.

Gas to Olefins and Fuel is catching popularity and earlier, DKRW has announced its coal to diesel plant utilizing Rantech technology. GTO is popular in China due to cheap available coals in the country as well as China’s announcement earlier to not be dependent on external oil.

Mega-refinery and Mega-Petchem Project in India by KPC
KPC (Kuwait Petrochemical Corporation) is reportedly to build of what would become a mega-refinery and mega-petrochemical project in India.

The mega-refinery projects including the petrochemical plants derivatives will be in partnership with Reliance Industries Limited (RIL), Indian Corporation (IOC) and others. The preliminary economics are showing positive results with feedstock will be coming from Kuwait, as mentioned by the KPC spokesperson.

The mega refinery would be in the capacity of more than 200,000 barrels per day, much likely higher since the multi billion dollar investments by all the parties are not yet firmed.

Timeline is expected to be three to four years, since the northern Kuwait oil crude production will only be ready by then for the feedstock to the refinery.
Oxea Expanding Germany Neopentylglycol (NPG) Capacity
Oxea is planning to expand the company’s neo pentyl glycol (NPG) capacity in Oberhausen, Germany from current production up to 50% additional capacity, largely due to the healthy market of paints worldwide.

The plan is also studying the feasibility of adding neopentyl glycol (NPG) capacity in other regions. This follows shortly after Oxea expanding its carboxylic acid for global application of lubricants and fragrances.

Petrochemical News: Iran Petrochemical Complex Assaluyeh to be Delayed 3-6 MonthsAssaluyeh Petrochemical Complex of Iran, comprising of 1.32 mil tonne per year of cracker products including a 300 ktpa capacity polypropylene (PP) plant and a 300 ktpa capacity high density polyethylene (HDPE)/linear low density PE (LLDPE) capacity swing plant will be delayed anywhere from 3 to 6 months although analysts expecting a longer delay.

However, a 300,000 tpa capacity HDPE plant is all set and ready to go taking feedstock from Arya Sasol cracker which capacity is 1 mil tonne per year petrochemical products in January although the initial plan is to use the feedstock from Assaluyeh cracker.

A lot of other petrochemical derivatives plants are waiting feedstock from the Jam's Assaluyeh Cracker including a 400 ktpa monoethylene glycol (MEG), 300 ktpa PP, 300 ktpa HDPE and LLDPE plants.

Petrochemical Plants: Iran Spending $8.3 Billion in AssaluyehIran has reportedly to spend over $8.3 billion in Assaluyeh petrochemical plants. Iran's National Petrochemical Company (NPC) announced that the investment will be used in the petrochemical sector of Pars Special Economic Energy Zone (PSEEZ), Assaluyeh, southern Iran.

The PSEEZ is located in Assaluyeh, a town in Bushehr Province, southern Iran. at the shore of Persion Gulf. PSEEZ has brought along a booming economy for the otherwise queit town of Assaluyeh. The strategic location of Assaluyeh provides closest land point to possibly the largest natural gas field in the world, the South Pars gas field. On top of that, there is an existing airport and direct access to international waters via a deep water port already present.

Other petrochemical complexes that already in operation in the Assaluyeh includes Mobin, Pars, Nuri, Zagros, and Ghadir. Iran's government is expecting over $11 billion of revenue through sales of product from PSEEZ in Assaluyeh alone, at least for the next 30 years.

Petrochemical Deals: Iran & Russia in a CompanyRussia and Iran are on their way for a joint gas company which undoubtedly will be a big geopolitical superpower. Iran's Foreign Minister Manuchehr Mottaki realising Tehran has gas (its production, transportation, treatment, sales and prices) which can be used as political trump cards when a country is partly isolated from the rest of the world. This comes amidst the growing tension between Iran and the US. Earlier this month there had been announcement on shipping of nuclear supply for energy from Russia.

Iran has selectively chosen Russia as their ally and the deal for a new company set up between them will put weight to this claim. Russia will be a potential rival to supply gas to Europe bypassing Gazprom and for Iran, exporting its huge gas deposits to outside market. Iran, second largest gas deposit in the world produces more than 150 billion cubic meters of gas per year.

Analysts are expecting the company to slowly develop Iran's gas facility. Iranian oil and gas sector more likely to need more than 150 billion dollars USD to be developed, but lacking investors commitment due to threats from United States of America.

With Russia as its backbone, the company is likely be able to bypass any US security threats in the future.

S-Oil to Become Second Largest Paraxylene ProducerS-Oil is in plan to build a $1.5 billion Korea aromatics plant come 2011. This will greatly place S-Oil as the second largest paraxylene (PX) producer in Asia after ExxonMobil. The petrochemical plant producing aromatics of 900 ktpa PX and 280 ktpa benzene is planned to start during next petrochemical upturn.

The naphtha feedstock will come from S-Oil refinery which already producing toluene, xylenes and PX including propylene at the refinery.
Iran Selecting Technology Licensors for HDPE PlantsIran is in the midst of selecting technology licences for its three new high density polyethylene (HDPE) plants which will be implemented by Dehdasht Petrochemical, Mamassani Petrochemical and Charmahal & Bakhtiari Petrochemical. This comes following the announcement of Iran’s proposed west ethylene pipeline which is expected to be awarded by the end of the 2007.

Technology licensors include INEOS, Basell and Mitsui with the HDPE plants projects expected to come on stream in 2009 with a capacity of 300 ktpa each. The projects are managed by National Petrochemical Corp (NPC) subsidiary Bakhtar Petrochemical Co, are located at Dehdasht, Mamassani and Charmahal-Bakhtiari. Each project will have a 300,000 tonnes/year capacity.
Siam Cement Concluding Study in 2008Siam Cement (SCC), Thailand's largest industrial conglomerate, is expected to finish its feasibility study by 2008 for a large-scale petrochemical complex in Long Son. The petrochemical complex which consists of a naphtha cracker and downstream chemical plants.

Vietnamese Prime Minister Nguyen Tan Dung has already announced the official company for the project. SCC is now pending for the official approval. The shareholding structure of the company is still undecided.

Siam Cement CEO Kan Trakulhoon previously mentioned that the company would spend $3.7bn to build the Long Son petrochemical complex next to a large oil refinery in Ba Ria-Vung Tau province.

World Largest DME Plant in ChinaThe world's largest dimetyl ether (DME) unit in China has been on-stream recently. Inner Mongolia Tianhe Alcohol Ether Co Ltd had constructed the 200 ktpa plant in Inner Mongolia in 2006 for a production of DME. The petrochemical plant uses Lutinhua Co Ltd catalyst for the process.

DME is a substitute for petroleum and natural gas and is expected to help ease the tight supply of gasoline and diesel. It is also environmentally friendly.


PETRONAS's Turkmenistan Project Awarded to TanjungPETRONAS awarded Tanjung Offshore's subsidiary, Tanjung Petroconsult Sdn Bhd contract of construction for a gravity base structure, substructure and Topside for Turkmenistan Block 1 Gas Development Project valued at around RM 7 mil (USD 3mil).

The project is owned by PETRONAS Carigali (Turkmenistan) Sdn Bhd, a PETRONAS subsidiary. Tanjung is in the process of determining the scope of work involved in the design, engineering, assembly, and delivery of the structures which is expected to be completed by September 2008.

Gas is widely used as petrochemical feedstock for various petrochemical plants.   

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