Ethylene Production Ethane & Natural Gas Ethylene Economics Ethylene Production Economies Of Scale World Scale vs. Regional Ethylene Plants
Supply Chain Resiliency
Selected Industry Definitions Inside Battery Limits (ISBL) – process units excluding
support equipment World Scale Ethylene Plant – plants over 1.5 Billion lbs./yr. Mont Belvieu – a major NGL storage, processing and trading hub located 30 miles East of Houston, TX Barrel – 42 gallons NGL – natural gas liquid (ethane, propane, butane, natural gasoline) Fractionator – A processing plant that separates NGL’s into its components via distillation (heat) Olefin – A unstable (double bond) straight chain hydrocarbon
US ETHYLENE CRACKERS DEVELOPMENTAL BACKGROUND IN THE 1960’S ETHYLENE PLANTS VIEWED TO BE
A REFINERY OPERATION ETHYLENE PLANTS CONSIDERED TO BE GARBAGE
DISPOSAL UNITS QUESTION OF PLANT SITE LOCATION • FEEDSTOCK • DOWNSTREAM MARKETS • EXPORT OPPORTUNITIES
Marcellus PE Freight Positioning
Rail Cost $.04/lb
Location-Location - Location Appalachian Basin
Appalachian Resins, Inc.
Major Polymer Resin Consumers
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Ethylene Chemical Compound
Ethylene is a hydrocarbon with the formula C2H4 or H2C=CH2.
Ethylene is a colorless flammable gas with a faint sweet odor pure. It is the simplest olefin.
What’s In A Name THE NAME CHANGES - NOT THE PLANT Ethylene Plant Ethylene Cracker
Ethane Cracking Reaction It’s the unstable double bond that makes ethylene reactive and a valuable petrochemical intermediate.
quench
Hydrogen Gas
NGL Fractionator
“Y” Grade
Natural Gasoline
Regional Ethane Cracker - - 500 MM Lbs/Yr Natural Gas Support
MACLE, INC.
Ethylene Yields
Ethylene Cracker Feed Yields EHANE Ethylene
Heavier feedstocks require more back end units.
Propylene C4's
Heavier feedstocks reflect higher capital costs. Heavy feed ethylene crackers resemble small refineries. Ethane crackers not as sensitive to capital economies of scale.
Ful Gas Pyrolysis Gasoline
NAPHTHA Ethylene Propylene
C4's Ful Gas
Appalachian Resins, Inc.
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Steam Cracker Costs Ethane Cracker Reflects Lowest Capital Cost
World Scale Ethylene Plant Typical Configuration MORE OF EVERYTHING
• • • • •
MORE ENVIRONMENTAL EMISSIONS MORE LAND MORE TRAFFIC MORE COST OVERRUN POTENTIAL MORE PRODUCTION BALANCING
POLYETHYLENE 1.0 Billion lbs/yr
ETHYLENE 2.0 Billion lbs/yr
ETHYLENE OXIDE
ETHYLENE GLYCOL
840 Million lbs/yr
600 million lbs/yr
WORLDSCALE vs REGIONAL ETHYLENE CRACKERS Per Pound Capital Cost
REGIONAL ETHANE CRACKERS CAN BE COST COMPETITIVE WITH “WORLDSCALE” PLANT
• Same yield structure • Less rail staging area requirements • Environmental Considerations • Regional crackers can be integrated with existing operations (brownfield)
Regional Plants Piggy-Back (Brownfield) Capability Barge Dock
Rail Car Capability Truck Capability Warehouses
Water Electricity Natural Gas
Support Services Office Space Nitrogen Blanketing
WORLD SCALE ETHYLENE PLANTS A world scale ethylene plant is over 1.5 Billion lbs. Largest ethylene plant is 3.7 Billion lbs (India).
A world scale ethylene plant has to support
downstream production facilities, such as: Polyethylene Ethylene Oxide Vinyl Chloride Monomer (VCM) A world scale ethylene plant is actually a
large petrochemical complex.
CLIMATE CHANGE RECOGNITION A COMPETITIVE EDGE Evidence that Earth’s climate is changing