Petrochemicals outlook [May 2016]

Petrochemical is a vast category of chemicals derived from oil and gas. They can be described by categorization of the most important of them into base chemicals, intermediates, formulated products and end – uses. Most important base products include:

-          Olefins [ethylene, propylene, butylene]

-          Aromatics [benzene, toluene, aromatic amines, xylenes, etc]

-          Alcohols

-          Carboxylic acids

-          Amines

-          Alkanes

Most important formulated products derived by these basic chemicals are:

-          Plastics and resins [such as extruded films, coatings, sheets, and foams]

-          Synthetic fibers

-          Rubbers

-          Adhesives and sealants

-          Lubricants

-          Paints

-          Coatings

-          Cleaning agents

-          Industrial chemicals

-          Flame retardants

And many other secondary categories. These formulated products are used in a range of activities and applications covering:

-          Automotive

-          Consumer products

-          Transportation

-          Packaging

-          Construction

-          Industrial

-          Pharmaceuticals

-          Medical

-          Textiles

-          Electronics

-          Aerospace

And other secondary categories.

Petrochemicals market in 2014 was evaluated at around 550B$. Most predictions suggest that the market will reach 880-900B$ by 2020. This trend is mainly supported by an increasing demand for Ethylene and Methanol which accounted for one quarter of the total petrochemical market in 2014. Polypropylene demand [PP] and propylene oxide are the main two products exhibiting the increased demand. PP’s main uses include textiles, packaging, stationery applications, automotive and others. Methanol on the other hand is used as a solvent in a number of chemical transformations, as gasoline additive, as the first material for the manufacturing of olefins, and other uses.

Benzene is another popular organic solvent that despite its health and environmental effects [it has proven to be carcinogenic and contributes to VOC emissions and pollution is expected to grow steadily up to 2020, reaching a record high of 42 M tons. Benzene is also used in a series of transformations and is the first raw compound in a series of organic families like aromatic amines, aromatic acids, and others.

The largest market in petrochemical consumption is Asia [estimated 50% of total consumption] with China being the undisputed leader. A major transformation that is expected to continue in the years to come is the total shift of manufactures from US and Europe to Middle East countries and especially Saudi Arabia and UAE. Those regions provide operational advantages that include abundance of first materials and know-how that has been acquired during the last decades. New manufacturing methodologies and new research and development centers in Saudi Arabia have attracted world class specialists in the region.

During the beginning of 2016, US initiated ethane exports to Europe. Iran has announced that they are going to double their PE manufacturing up to 8 M tons by 2022. Recently Aramco and Total have announced that they decided on a 10% expansion in the capacity of their joint refinery in Saudi Arabia. Royal Dutch Shell have announced that their US based project was ‘on hold’ possibly due to thoughts about activation in Middle East.

Petrochemical industry is greatly dependent on the additives industry for the production of polymers and composites. In short, the most important additives for polymer industry are presented in Table 1:

Table 1: Additives in the polymers industry

Function Additives

Fillers & Re enforcing agents: Inorganics

Oxides [MgO, SiO2]

Hydroxides [Al(OH)3]

Metals [Boron, Steel fibers]

Silicates [Talc, Mica]

Fillers & Re enforcing agents: Organics

Carbon

Carbon black

Graphite

Aramic fibers

Cellulose fibers

PET

PE

PVA

Plasticizers

Trialkyl phosphates

Adipates

Chlorinated paraffins

Polyesters

Epoxy derivatives

Phthalate esters

Impact modifiers

EPDM

NBR

NR

EVA

MBS

CPE

Elastomers

Cross linking agents

Organic peroxides

Rubber curatives

Flame retardants and smoke suppressants

Sb2O3

Chlorinated paraffins

Al(OH)3

Mg(OH)2

Organophosphate esters

Zinc borate

Brominated organic compounds

Molybdate salts

Conductive agents

Carbon black

Graphite fibers

Metals

Metallized fibers

Processing additive: stabilizers

Primary antioxidants

Hydroperoxide decomposers

Acid adsorbers

Processing additive: lubricants

High molecular weight fatty acids

High molecular weight fatty acids derivatives

Paraffin waxes

Metal soaps

Ester and amide waxes

Silicones

Polyfluoro carbons

Processing additive: flow and fusion promoters

PMMA

MBS

Acrylic ester copolymers

Processing additive: Thixotropic agents

Fumed silica

Clays

Antiaging: Antioxidants

Sterically hindered phenols

Sec- aromatic amines

Phosphates

Thioethers

Antiaging: metal deactivators

Chelating agents

Antiaging: Light stabilizers

Pigments

UV absorbers [hydroxyphenones]

Excited state quenchers [Organic – Ni complexes]

Free radical scavengers

Hindered amine light stabilizers

Antiaging: Biostabilizers

Copper quinolinolate

Phthalimides

Thio compounds

Surface modifiers: antistats

Ethoxylated amines

Phosphate esters

Glycerides

Surface modifiers: antifoggers

Fatty chain glycol surfactant

Polyether surfactants

Surface modifiers: antiblocking and slip additives

Silica

Amide waxes

Oleamide

Surface modifiers: antiwear

Graphite

MoS2

PTFE

Surface modifiers: wetting agents

Ionic surfactants

Non ionic surfactants

Surface modifiers: adhesion promoters

Silanes

Titanates

Block and graft copolymers

Pigments

Ti, Fe, Cr oxides

Cd, Ba, Pb sulfides, chromates and sulfates

Carbon black

Phthalocyanines

Quinacridones

Azo pigments

SiO2, talc, sodium benzoate

Anthraquinones

Azo and bisazo compounds

Blowing agents

Hydrocarbons, halocarbons

CO2, N2

Bicarbonates

Benzene sulfonylhydrazides

Tetrazoles

Depending on type of polymer required, various forming processes are used, including:

-          Sand casting

-          Dye casting

-          Investment casting

-          Low pressure casting

-          Forging

-          Extrusion

-          Sheet forming

-          Powder methods

-          Electro machining

-          Conventional machining

-          Injection molding

-          Blow molding

-          Compression molding

-          Rotational molding

-          Thermo forming

-          Polymer casting

-          Resin transfer molding

-          Filament winding

-          Lay up methods

-          Vacuum bag