Fundamentals of

Petrochemical Industry

Akil Sahiwala
Marketing Manager
Dow Polyurethanes
•The Dow Chemical Company
AGENDA

Petrochemical Value Chain Overview

Feedstocks to the Industry

Chemical Value Chains

Impact on the Region

2
World of Chemicals

Petrochemicals
Specialty
Chemicals

Fertilizers
Consumer Care
Raw Materials Products

Basic Inorganic

Life Sciences

Industrial gasses

Basic + Intermediates
3
Petrochemical Value Chain

Feedstock Monomers/ Derivatives Specialties /

Upstream Retail
Processing Base Chem /Intermediates Conversion

Ethylene
Olefins
Oil Propylene

C4s
Gas Benzene

Coal Toluene
Aromatics
Xylene

Methanol

4
Feedstock Processing – Crude Oil

Naphtha
Associated Gas Gas Processing

Petchem
Feedstock

Gasoline
Crude
Diesel

Refining Kerosene

LPG

Fuel Oil

Separation Blending

Conversion Treatment

5
Feedstock Processing – Gas

Dry Gas
Wet (Methane)
Gas
Oil
Industry, ~90%
Residential,
Separator Electricity
Water
Sulfur/
Separator Ethane
CO2
NGL
Separator
Separator

Fractionator
Oil/Condensate

Water
~10%
Sulfur/ Carbon
Dioxide

Propane
Butane
Light Naphtha

6
Shale Gas

What’s Different?

• Horizontal drilling in low permeability source rock

• Multi-stage hydraulic fracturing with proppants
• Multiple wells from one well pad

7
Coal to Chemicals

Ethylene
Methanol
Propylene
Coal

Methanol Reactor Methanol to Olefins Plant

Methanol to
Propylene

Syngas Ammonia Urea

DME Acrylic Acid

VAM
Coke Calcium Carbide Acetylene
PVC
8
Biofuels

Dehydration Polymerization
Ethanol is broken into Transformation of
ethylene & water ethylene to LLDPE
Sugarcane
320 KTA 350 KTA

9
 Olefins Flow

Ethylene
Olefins Naptha
‘Unsaturated’ straight chains Crude Oil Refinery Propylene
with a double carbon bond
Methane/Hydrogen

Ethane Crude C4s

H C H
Ethylene Propane
Gas Separation
H C H Natural Gas Pygas
Unit
Butane • BTX
H Condensates • Heavy Aromatics
H C • C5/C6 Non Aromatics
H C
Propylene
Fuel Oil
H C H

10
Steam Cracking Product Mix By Feedstock

Natural Gas Refinery

Feedstocks Feedstocks
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ethane Propane Light Naphtha
Ethylene Propylene C4s Methane/Hydrogen BTX Other Pygas Fuel Oil

11
Petrochemical Value Chain

Feedstock Monomers/ Derivatives Specialties /

Upstream Retail
Processing Base Chem /Intermediates Conversion

Ethylene Polyethylene

Ethane
Ethylene Oxide

Propane/Butane

EDC / PVC
Naphtha

Styrene

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Propylene - Sources

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Propylene Value Chain

Feedstock Monomers/ Derivatives Specialties /

Upstream Retail
Processing Base Chem /Intermediates Conversion

Propylene Polypropylene

Ethane
Propylene Oxide

Propane/Butane

Acrylic Acid
Naphtha

Phenol

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Other Value Chains

Feedstock Monomers/ Derivatives Specialties /

Upstream Retail
Processing Base Chem /Intermediates Conversion

Methane
Methanol Formaldehyde
Coal

Acetic

Gasoline

15
Aromatics

Key Facts Aromatics Structure

 Aromatics are based around a common cyclical structure

of 6 carbon atoms which are connected by alternating Benzene:
single and double bonds C6H6

 The three most commercially important aromatics are:

– Benzene
– Toluene
– Mixed Xylenes
Toluene:
 Benzene is the largest and most diverse of the aromatic C7H8
markets
 Toluene’s main chemical use is in the production of TDI
(toluene di-isocyanate), an intermediate in the production
of flexible polyurethanes, commonly used for foam
seating Para Xylene:
 Mixed Xylenes are used extensively in gasoline blending, C8H10
but also can be used to produce polyester resins

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Benzene Value Chain

Feedstock Monomers/ Derivatives Specialties /

Upstream Retail
Processing Base Chem /Intermediates Conversion

Benzene MDI

Nylon

Propane/Butane

Styrene
Naphtha
Ethylene

Phenol
Propylene

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Impact on the Region

Value Generator Petrochemicals

Value
Refinery
Crude oil/ gas

Employment Direct Indirect

150,000 450,000

Diversification Upstrea Feedstock Monomers/

Derivatives
/Intermediat
Specialties /
Retail
m Processing Base Chem Conversion
es

Move towards Downstream

Innovation

Patents
18
Thank You