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Petrochemical Industry

Petroleum and petrochemical industries have revolutionized our life and are providing the major basic needs of rapidly growing, expanding and highly technical civilisation as a source of energy for domestic, industrial, transport sectors and as feedstock for fertilisers, synthetic fibers, synthetic rubbers, polymers, intermediates, explosives, agrochemicals, dyes, and paints etc. Modern petrochemical industry fulfill the requirement of large number of products which are being used in some or other form in daily life and also closely linked with the socio-economic aspiration of people which includes packaging to agriculture, automobiles to telecommunication, construction to 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 in our life have mention in Table M-VII 1.1. There is hardly any area of our life that is not compacted by petrochemicals.

The petrochemical industry is highly technological and capital intensive. Developments in petrochemical technology are taking place very fast. Tremendous resources and efforts are being continuously spent on increasing size of the plant, the yield through continuous upgradation of catalyst, reducing energy consumption and cost reduction through novel process rate, new chemistries or scale up approaches.

Due to huge population, the per capita consumption of petrochemicals in India is about 506kg compared to global weighted average 25 kg and China’s consumption of around 25-30 kg. Oil refining and steam cracking of naphtha and natural gas (ethane & propane) are the common routes of producing petrochemicals. Table M-VII 1.2 gives the building blocks for Indian petrochemical capacities. Many Indian refineries are now entering petrochemicals in a big way through green field projects and expansions. Major ethylene complex in India are given in Table M-VII 1.3. The potential possible in India can just be imagined, now with growth in various sectors of economy like automotives, construction, textiles etc taking off well .

Table M-VII 1.1: Petrochemical Socio-economic Linkage

Group of Product	Areas
Plastics 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 Hygiene.
Industrial chemicals	Drugs & pharmaceuticals, pesticides, explosives, surface coating, dyes and intermediates, lubricating oil additives, adhesives, oil field chemicals, antioxidants, chemicals, metal extraction, printing ink, paints, corrosion inhibitors, solvents, perfumes, food additives.
Fertilisers	Agriculture, polymers.

Table M-VII 1.2: Indian Petrochemical Capacities for Building Blocks (Metric tonnes) (2009-10)

Product	Installed Capacity	Production
Ethylene	3021	2515
Propylene	2387	1859
Butadiene	295	205
Aromatics
Benzene	1158	823
Toluene	281	123
Mixed xylene	165	55
o-Xylene	474	358
p-Xylene	2296	2223
Linear Alkyl benzene	497	464
Ethylene oxide	140	154
Phenol	74	71.59

Table M-VII 3: Major Ethylene Complexes in India(Metric tonnes)

Name of the complex	Location	Capacity	Feedstock
Reliance formerly IPCL	Vadodara	1,30,000	Naphtha
Reliance formerly IPCL	Nagothane	4,00,000	Gas

Reliance formerly IPCL	Gandhar	3,00,000	Gas
Reliance	Hazira	2,50,000	Naphtha/Gas
Haldia petrochemicals	Haldia	5,20,000	Naphtha
GAIL	Auria	4,00,000	Gas
Oswal Agro	Mumbai	23,000	Naphtha
Indian Oil Corporation Limited	Panipat	800,000	Naphtha

Structure of Petrochemical Complexes
The 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 processes include partial oxidation, steam reforming, catalytic and thermal cracking, alkylation, dealkylation, hydrogenation, disproportionation, isomerisation, etc. The commonly used unit 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 by various 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 of target products and chemicals to meet the consumer needs. It includes plastics, synthetic fibers, 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.

Indian Petrochemical Industry

Petrochemicals are backbone of chemical industry. Although the origin of petrochemical industry in world was in 1920, however, sixties marks the era of petrochemicals in India when Union Carbide set up first ethylene complex with capacity 20,000 TPA in 1963 in Mumbai. It was followed by NOCIL with 60,000 TPA ethylene complexes in 1968 in Thane near Mumbai and PSF plant of Chemical and Fibers India Ltd.(CAFI) at Thane - Belapur road. Indian Petrochemical Corp. Ltd. (IPCL) set up first integrated petrochemical complex in 1970 in public sector at Vadodara. With the modest beginning in 1960 by setting up of 20,000 tonnes naphtha cracked by Union Carbide in Mumbai, Indian petrochemical industry has sustained a high and steady rate of growth during last four decades and has entered the world market.

The petrochemical industry has been the fastest growing sectors in India and become a major segment of chemical industry, which is growing faster than industries overall and within chemicals. It has posed serious threat to chemical industry based on natural feedstock – Biomass and Coal. The petrochemical industry is major supplier of chemical inputs to a large and growing number of downstream. The Indian chemical industry ranks twelfth by volume in the world for production of chemicals and accounts for about 14percent in the general index of industrial production and 17.6percent in the manufacturing sector. It accounts for 13-14percent of total exports and 8-9percent of total imports of the country. It contributes about 3 percent to the GDP. It contributes 13percent of the manufacturing industry's value added and 8percent of the total exports of the country.

Basic Petrochemicals

C1 group Methane, CO – H₂ synthesis, synthesis gas derivatives

C2 group Ethane, ethylene, ethylene derivatives, acetylene

C3 group Propane, propyl ene and propylene derivatives

C4, C5 group Butadiene, Butanes, Butenes, Pentane, Pentene, Isoprene, Cyclop entadiene

Aromatic Benzene, Toluene , Xylenes Naphthalene, BTX derivatives

Major End Products
Polymer, Synthetic fibre, synthetic rubber, synthetic detergent, Chemical intermediate, dyes and intermediates chemical intermediates, pesticides

Basic Building Block Process

Petrochemical manufacturing involves building blocks processes for the manufacture of building blocks and intermediates.

Cracking: Steam cracking, Catalytic cracking for olefins pyrolysis gasoline by product

Steam reforming and Partial oxidation: Synthesis gas

Catalytic Reforming: Aromatic production

Aromatic conversion processes: Aromatic production

Alkylation: Linear alkyl benzene

OXO Process: Oxo-alcohol

Polymerisation Process: Polymer, elastomers and synthetic fibre

Petrochemicals Feed Stock

One of the major issues, which have directed the worldwide growth of petrochemical industry, has been the availability of feedstock, which has led to replacement of the natural resources coal, molasses, fats, etc. Basic feedstock used in petrochemical industry for manufacture of olefins and aromatics are derived either from natural gas or petroleum fractions and includes natural gas (associated or non-associated), condensate, naphtha, kerosene, catalytic cracking and reformer gases, waxes, pyrolysis gasoline. Natural Gas and Petroleum Fractions as Petrochemicals Feedstock is given in Table M-VII 1.4. Alternative routes to principal petrochemicals is given in Table M-VII 1.5 . Some of the alternative feed stock choice for petrochemical industry are:

Naphtha from methane from natural gas to liquid process
Naphtha from coal via direct liquification or indirect liquification by FT process
Plastic waste to naphtha and other hydrocarbons through liquefaction, pyrolysis and separation processes ·
FT naphtha from biomass
Methanol routes: Synthesis gas from methane, coal and biomass; conversion of synthesis gas to methanol and production of olefin by methnol to olefin technology.
Conversion of methanol to dimethyl ether
Product recovery and separation Recovery of C₄&C₅ stream from FCC and steam cracker
Oxidative coupling of methane
Ethanol from biomass: direct fermentation of sugar rich biomass, hydrolysis of lingocellulosic biomass
Gasification of lingo-cellulosic biomass followed by fermentation or chemical catalysis to ethanol.
Carbon dioxide to liquid fuel by engineered bacteria
Gasification of petrocoke to hydrogen

Table M-VII 1.4: Natural Gas and Petroleum Fractions as Petrochemicals Feedstock

Petroleum Fractions and Natural Gases

Source

Composition

Intermediate

Processes

Intermediate

Feedstock

Refinery

Gases

Distillation,

catalytic

cracking,

catalytic

reforming

Methane, ethane, propane, butane, BP upto 25 ^oC

Liquefaction,

cracking

LPG, ethylene propylene, butane, butadiene.

Naphtha

Distillation and

thermal & catalytic cracking, visbreaking

C₄-C₁₂

hydrocarbon,

BP 70 - 200 ^oC

Cracking, reforming, alkylation, disproportionation , isomerisation

Ethylene, propylene, butane, butadiene, benzene, toluene, xylene

Kerosene

Distillation and

secondary

conversion

processes

C₉-C₁₀

hydrocarbon, BP 175-275 ^oC

Fractionation to obtain C₁₀-C₁₄range

hydrocarbon

Linear n C₁₀ - n

C₁₄ alkanes

Gas Oil

Distillation of

crude oil and cracking

C₁₀-C₂₅

hydrocarbons BP 200-400 ^oC

Cracking

Ethylene,

propylene,

butadiene,

butylenes

Wax	Dewaxing of lubricating oil	C₈-C₅₆ hydrocarbon	Cracking	C₆-C₂₀ alkanes
Pyrolysis Gasoline	Ethylene cracker	Aromatic, alkenes, dienes, alkanes, cycloalkane	Hydrogenation distillation, extraction, crystallisation, adsorption	Aromatics
Natural Gases & Natural Gas Condensate	Gas fields and crude oil stabilisation	Hydrogen, methane, ethane, propane, pentane, aromatics	Cracking, reforming, separation	Ethylene, propylene, LPG, aromatics, etc.
Petroleum coke	Crude oil	Carbon	Residue upgradation processes, gasification	Carbonelectrode, acetylene, fuel

Table M-VII 1.5: Alternative Routes to Principal Petrochemicals

Chemicals	Petroleum Source	Alternate Source (Europe, except where stated)
Methane	Natural gas Refinery light gases (demethaniser overheads)	Coal, as byproduct of separation of coke oven gases (1920-30) or of coal hydrogenation (1930-40)
Ammonia	Methane Light liquid hydrocarbons	From coal via water gas (1910-20)
Methyl alcohol	Methane Light liquid hydrocarbons	From coal via water-gas (1920-30); from methane (from coal) by methane-stream and methane oxygen processes (1930-40)
Ethylene	Pyrolysis of gaseous liquid hydrocarbons	Dehydration of ethyl alcohol (original route). By-product in fractional distillation of coke oven gas (1925-35). Hydrogenation of acetylene (1940-45)
Acetylene	Ethylene	Calcium carbide (original process). methane from coal by partial combustion and by arc process(1935-45)
Ethylene glycol	Ethylene	From ethylene made as above (1925). In America, from coal via carbon-monoxide and formaldehyde (1935-40)
Ethyl alcohol	Synthetic ethyl alcohol Co-product	Fermentation of molasses (original route)
Acetaldehyde	of paraffin gas oxidation. Direct oxidation of ethylene	Fermentation of ethyl alcohol, or acetylene from carbide (1900-10)
Acetone	Propylene	Wood distillation (original process). Pyrolysis of acetic acid (1920-30) or by acetylene-stream reaction (1930-40)

Glycerol

Propylene

By-product of soap manufacture (original process)

Butadiene

1- and 2-Butenes

Butane

Synthetic ethyl alcohol By-product of ethylene by pyrolysis of liquid hydrocarbons

Ethyl alcohol (1915); acetaldehyde via 1:3- butanediol (1920-30); acetylene and formaldehyde from coal via 1:4-butanediol (1940-45); from 2:3-Butanediol by fermentation (1940-45)

Aromatic

hydrocarbons

Aromatic-rich and

naphthenic-rich fractions by catalytic reforming and direct extraction or by hydroalkylation

By-products of coal-tar distillation

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FAQs on Profile of Petrochemical Industry and its Structure (Part - 1) - Chemical Technology - Chemical Engineering

1. What is the petrochemical industry and what does it encompass?

Ans. The petrochemical industry involves the production and processing of chemicals and materials derived from petroleum or natural gas. It encompasses a wide range of products such as plastics, synthetic fibers, rubber, solvents, fertilizers, and various other chemicals.

2. How is the structure of the petrochemical industry organized?

Ans. The structure of the petrochemical industry typically consists of three main sectors: upstream, midstream, and downstream. The upstream sector involves the exploration and production of petroleum or natural gas. The midstream sector focuses on the transportation, storage, and processing of the raw materials. The downstream sector involves the manufacturing and distribution of the final petrochemical products.

3. What are the major challenges faced by the petrochemical industry?

Ans. The petrochemical industry faces various challenges, including fluctuating oil prices, environmental concerns, regulatory compliance, and the need for constant innovation. Additionally, competition from alternative materials and the demand for sustainable practices are also significant challenges for the industry.

4. How does the petrochemical industry contribute to the economy?

Ans. The petrochemical industry plays a crucial role in the economy by generating employment opportunities, contributing to GDP growth, and driving technological advancements. It also provides essential raw materials for various industries, such as automotive, construction, healthcare, agriculture, and packaging, thereby supporting their growth and development.

5. What are the future prospects and trends in the petrochemical industry?

Ans. The petrochemical industry is expected to witness several future prospects and trends. These include a shift towards bio-based and renewable feedstocks, increased focus on sustainability and circular economy practices, advancements in process technologies for improved efficiency, and the development of new materials with enhanced properties. Additionally, the industry is also likely to experience continued growth in emerging markets, such as Asia-Pacific, due to increasing industrialization and urbanization.

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