Petrochemical ProcessesPKC-6050

Syllabus

• Unit I: Overview & Current Scenario of Petrochemical Industry in India,Primary raw materials for petrochemicals, Feed stocks and its productionby cracking and reforming, Various unit processes and unit operationsinvolved in petrochemical production.

• Unit II: Petrochemicals from C1, C2, C3,C4:Methanol,Formaldehyde,Ethylene oxide, Ethylene Glycol, Isopropanol,Acetone, Butadiene, Maleic Anhydride etc

• Unit III: Petrochemicals from Aromatics: Cumene, Styrene, LAB, BisphenolA, Terephthalic Acid, Phthalic Anhydride etc.

• Unit IV: Thermoset and thermoplastic polymers: polyethylene,polypropylene, polystyrene, PVC, ABS plastic, nylon, polycarbonate, rubberetc.

• Petrochemical industry contributes about 30 percent to India's chemical industry which islikely to become $250 billion by 2020.

• The growth story of the Indian economy is incomplete without mentioning the role thatpetrochemical industry plays in this journey. With new joint ventures and expansions inplace, this rapidly growing industry is all set to take the burgeoning global demand in itsstride.

1. What does the petrochemical industry produce?Petrochemicals can be converted into thousands of industrial and consumer products,including PLASTICS, paints, RUBBER, fertilizers, detergents, dyes, TEXTILES and solvents.2. What is meant by petrochemical industry?The petrochemical industry is concerned with the production and tradeof petrochemicals. It directly interfaces with the petroleum industry, especially thedownstream sector. A major part is constituted by the plastics (polymer) industry3. Why is the petrochemical industry important?In reality, the petrochemical industry is one of the most beneficial things in our lives.They're responsible for creating many of the items we use every day. But most importantly,the petrochemical industry plays a huge role in benefiting the economy of the country.

PETROCHEMICALS• Definition: These are the chemicals that are made from petroleum and natural gas.

Petroleum and natural gas are made up of hydrocarbon molecules, which comprises ofone or more carbon atoms, to which hydrogen atoms are attached. - About 5 % of the oiland gas consumed each year is needed to make all the petrochemical products.Petrochemicals play an important role on our food, clothing, shelter and leisure. Becauseof low cost and easy availability, oil and natural gas are considered to be the mainsources of raw materials for most petrochemicals.

• Petrochemicals are chemicals products that are produced from petroleum. Thesechemicals can be split into the two most common classes – olefins, which includeethylene and propylene, and aromatics, which include benzene and toluene. Both classesare produced in oil refineries by fluid catalytic cracking – olefins can also be produced inchemicals plants by steam cracking, and aromatics are produced by catalytic reforming ofnaphtha. Both of these provide the building blocks for many materials such as solvents,detergents, adhesives, plastics and lubricants materials, and so are extremely useful inday to day life.

• These petrochemicals are predominantly produced in a few manufacturing locations arethe world. The most prominent producers of petrochemicals include Jubail and Yanbu inSaudi Arabia, Texas and Louisiana in the USA, Teeside in the UK, Rotterdam in theNetherlands and Jamnagar and Dahej in India. The abundance of locations prove thatpetrochemicals are not only a huge portions of the global chemical industry but, at leastfor now, are here to stay.

History of Petrochemicals• The earliest usage of petrochemicals can actually be dates back to ancient Egypt.• The substances that we know as ethylene and polyethylene were produced by ancient Egyptians by using

gas and fig plants.• Bitumen was found as one of the materials used in building the pyramids and in the embalming process that

was so popular at the time. These three chemicals can all be derived from petroleum today.• The first chemicals to be made from petroleum, however, were produced in 1872.• Carbon black was produced by the partial combustion of natural gas, and was used in the production of

synthetic rubber.• Fast forward around 50 years and the petrochemical industry was born, when the Standard Oil Company

plant was opened in New Jersey, USA which produced propylene.• Nowadays, petrochemicals represent the majority of all chemicals that are shipped between continents and

accounts for around 40% of the global chemicals market.• About 5% of the world’s annual oil supply is utilised to make petrochemicals, so it’s clear that they’re a huge

part of today’s chemical industry.• To say the petrochemicals industry has come on leaps and bounds since its conception is a huge

understatement.• From traces of ethylene and bitumen found in Egypt to today’s abundance of different products and uses,

the petrochemical industry has come a long way, and will most likely continue to develop and adapt asrenewable resources begin to compete.

The World's Largest Chemical ProducingCompanies

Rank Company Country

1 BASF Germany

2 DowDuPont USA

3 DUPONT China

4 SABIC Saudi Arabia

• The first petrochemical industry in India was - The National OrganicChemicals Industries Limited (NOCIL), established in private sector in 1961,started the first naphtha based chemical industry in Mumbai. Later, severalother companies were formed. The plants located at Mumbai, Barauni,Mettur, Pimpri and Rishra are the major producers of plastic materials.

• How large is India's oil production?India is the 26th-largest oil-producing country (734,180 barrels / day) in theworld. The top 10 countries by oil production are: World Production, UnitedStates, Russia, Saudi Arabia (OPEC), Iraq (OPEC), Iran (OPEC), China, Canada,United Arab Emirates (OPEC), Kuwait (OPEC).

The World's Largest Oil Reserves By Country• Canada - 169,709 million barrels.• Iran - 158,400 million barrels. ...• Iraq - 142,503 million barrels. ...• Kuwait - 101,500 million barrels. ...• United Arab Emirates - 97,800 million barrels. ...• Russia - 80,000 million barrels. ...• Libya - 48,363 million barrels. ...• United States - 39,230 million barrels. ...

Rank Company Assets

1 Apple 373.7

2 Microsoft 258.9

3 Amazon 162.6

4 Alphabet 232.8

Classification: Petrochemicals can be broadly classified into three categories-a. Light Petrochemicals: These are mainly used as bottled fuel and raw materials for otherorganic chemicals. The lightest of these -- methane, ethane and ethylene -- are gaseous atroom temperature. The next lightest fractions comprise petroleum ether and light naphthawith boiling points between 80 and 190 degrees Fahrenheit.b. Medium Petrochemicals: Hydrocarbons with 6 – 12 carbon atoms are called "gasoline",which are mainly used as automobile fuels. Octane, with eight carbons, is a particularlygood automobile fuel, and is considered to be of high quality. Kerosene contains 12 to 15carbons and is used in aviation fuels, and also as solvents for heating and lighting.c. Heavy Petrochemicals: These can be generally categorized as diesel oil, heating oil andlubricating oil for engines and machinery. They contain around 15 and 18 carbon atomswith boiling points between 570 and 750 degrees Fahrenheit. The heaviest fractions of allare called "bitumens" and are used to surface roads or for waterproofing. Bitumens canalso be broken down into lighter hydrocarbons using a process called "cracking”.

PETROCHEMICAL INDUSTRY

• Petroleum and petrochemical industries have revolutionized our life andare providing the major basic needs of rapidly growing, expanding andhighly technical civilisation as a source of energy for domestic, industrial,transport sectors and as feedstock for fertilisers, synthetic fibers, syntheticrubbers, polymers, intermediates, explosives, agrochemicals, dyes, andpaints etc.

• Modern petrochemical industry fulfill the requirement of large number ofproducts which are being used in some or other form in daily life and alsoclosely linked with the socio-economic aspiration of people which includespackaging to agriculture, automobiles to telecommunication, constructionto home appliances, health care to personal care, pesticides to fertiliser,textile to tyre cord, chemicals to dyes, pharmaceuticals and explosives.

Linkage of socioeconomic of petrochemical inour life have mention in Table

Group of Product AreasPlastics and Polymers Agricultural water management, packaging, automobiles,

telecommunications, health and hygiene, education, transportation,building

Synthetic Rubber Transportation industry, chemical, electrical, electronics, adhesives,sealants, coatings.

Synthetic fiber Textile, transportation, industrial fabrics, geo-textiles, non-woven fabrics.

Synthetic detergents Health and HygieneIndustrial chemicals Drugs & pharmaceuticals, pesticides, explosives, surface coating, dyes and

intermediates, lubricating oil additives, adhesives, oil field chemicals,antioxidants, chemicals, metal extraction, printing ink, paints, corrosioninhibitors, solvents, perfumes, food additives

Fertilizers Agriculture, polymers

1.

There is hardly any area of our life that is not compacted bypetrochemicals. The petrochemical industry is highly technological andcapital intensive. Developments in petrochemical technology are takingplace very fast. Tremendous resources and efforts are beingcontinuously spent on increasing size of the plant, the yield throughcontinuous upgradation of catalyst, reducing energy consumption andcost reduction through novel process rate, new chemistries or scale upapproaches. Due to huge population, the per capita consumption ofpetrochemicals in India is about 506kg compared to global weightedaverage 25 kg and China’s consumption of around 25-30 kg. Oil refiningand steam cracking of naphtha and natural gas (ethane & propane) arethe common routes of producing petrochemicals.

Petrochemical Industry in India

The petrochemical industry in India has been one of the fastest growing industriesin the country. Since the beginning, the Indian petrochemical industry has shownan enviable growth rate. This industry also contributes largely to the economy ofthe country and the growth and development of manufacturing industry as well. Itprovides the foundation for manufacturing industries like construction, packaging,pharmaceuticals, agriculture, textiles etc.

The Indian petrochemical industry is a highly concentrated one and is oligopolisticin nature. Even till a few days back, only four major companies viz. RelianceIndustries Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas Authority ofIndia Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate theindustry to a large extent. The recent amalgamation of IPCL with RIL has made theindustry more concentrated further, as they jointly account for over 70% ofcountry's total petrochemical capacity. However, the scene is a bit different for thedownstream petrochemical sector, which is highly fragmented in nature with over40 companies existing in the market.

The Characteristics of Indian Petrochemical Industry• The Petrochemical Industry in India is a cyclical industry. This industry, not

only in India but also across the world, is dominated by volatile feedstockprices and sulky demand. India has one of the lowest per capitaconsumptions of petrochemical products in the world. For example, theper capita consumption of polyester in India lies at 1.4 kg only comparingto 6.6 kg for China and 3.3 kg for the whole world. Similarly, the per capitaconsumption of polymers is 4 kg in India, whereas the per capitaconsumption is around 20 kg for the whole world.

Facts about Petrochemical Industry in India• Market size-US$700 million

Growth Rare -15 percent

Key Segments in the Indian Petrochemical industryPetrochemical industry is constituted of the following key segments:• Polymers: The demand for polymers witnessed a growth of 13.4 percent during 2007, as

compared to a demand growth of 5.6 percent in 2006. According to the prediction of Chemicalsand Petrochemicals Manufacturers' Association (CPMA), the demand growth for polymer wouldfurther be augmented to over 15% in the coming year.

• Polyester Intermediates: The combined production of 5 fiber intermediates (CAN, DMT,Caprolactum, MEG and PTA was 3,417 KT during 2007. Among those, PTA and MEG accounted for69% and 27% respectively, while the rest were DMT, Caprolactum and CAN.

• Aromatics (Paraxylene): The demand for Paraxylene (PX) saw a growth of 18% during 2007.According to the prediction of CPMA, it is expected to grow at the same rate in the coming year aswell.

• Benzene, Toluene, MX and OX: The demands for Toluene and OX saw a contraction rate of 4%and 10% respectively during 2007. However, Benzene and MX saw a positive growth though.

Key Issues and Challenges• The petrochemical industry in India is faced with numerous hurdles that

prevent it from surpassing other Asian countries.• India's production of ethylene is far lesser than China's. According to

experts the condition is going to remain so for at least the next 5-7 years.• The other important setback for the Indian petrochemical industry is the

price of feedstock which is comparatively higher in India as compared toChina.

• India also lags behind as far as technological development is concerned.

Top Petrochemical Companies in IndiaThough the Indian petrochemical industry is highly dominated by only a few players, however, there are anumber of petrochemical companies in India, doing their share of business. Some of the top companies can belisted as below:• Reliance Industries Ltd.• Haldia Petrochemicals Ltd.• Indian Oil Corporation• Gas Authority of India Limited• National Organic Chemical Industry Ltd.• Bongaigaon Refinery and Petrochemicals Ltd.• Manali Petrochemical Limited• I G Petrochemicals Limited• The Andhra Petrochemicals Limited• Tamilnadu Petroproducts Limited

The building blocks for Indian petrochemical Industries are• Ethylene• Propylene• Butadiene• Aromatics• Benzene• Toluene• Mixed xylene• o-Xylene• p-Xylene• Linear Alkyl benzene• Ethylene oxide• Phenol

Many Indian refineries are now entering petrochemicals in a big way through green field projectsand expansions. Major ethylene complex in India are.

Name of thecomplex

Location capacity Feedstock

Reliance formerlyIPCL

Vadodara 1,30,000 Naphtha

Reliance formerlyIPCL

Nagothane 4,00,000 Gas

Reliance formerlyIPCL

Gandhar 3,00,000 Gas

Reliance Hazira 2,50,000 Naphtha/GasHaldia

PetrochemicalsHaldia 5,20,000 Naphtha

GAIL Auria 4,00,000 GasOswal Agro Mumbai 23,000 NaphthaIndian Oil

CorporationLimited

panipat 800,000 Naphtha

STRUCTURE OF PETROCHEMICAL COMPLEXESThe petrochemical complexes involve one or a combination of the following operations.• The manufacture of basic raw materials like syngas, methane, ethylene, propylene,

acetylene, butadiene, benzene, toluene, xylenes, etc. The basic building processesinclude partial oxidation, steam reforming, catalytic and thermal cracking, alkylation,dealkylation, hydrogenation, disproportionation, isomerisation, etc. The commonly usedunit operations are distillation, extractive distillation, azeotropic distillation,crystallisation, membrane separation, adsorption, absorption, solvent extraction, etc.

• Manufacture of intermediate chemicals derived from the above basic chemicals byvarious unit processes like oxidation, hydrogenation, chlorination, nitration, alkylation,dehydrogenation along with various unit operations like distillation, absorption,extraction, adsorption, etc.

• Manufacture of target chemicals and polymers that may be used in the manufacture oftarget products and chemicals to meet the consumer needs. It includes plastics, syntheticfibers, synthetic rubber, detergents, explosives, dyes, intermediates, and pesticides.

• First Generation Intermediates:Hydrogen, Ammonia, Methanol Olefins and Dienic Hydrocarbons, Ethylene,Propylene, Butadiene, Isoprene, etc. Aromatic Hydrocarbons, Benzene,Toluene, Xylenes, Styrene, etc.• Second Generation Intermediates:Introduction of various hetro atoms into final molecule including oxygen,nitrogen, chlorine and sulfur by various unit process Intermediates.• Target Product:Plastics, Synthetic fibre, Fertilizers, Solvents, elastomer, Drugs, Dye stuff,Detergent, Explosive, Pesticides.