PERP Report

Linear Alkylbenzene (LAB)

01/02S8
April 2003

44 South Broadway, White Plains, New York 10601, USA

Tel: +1 914 609 0300 Fax: +1 914 609 0399
Contents
Section Page

1 Executive Summary .................................................................................................... 1

1.1 INTRODUCTION ............................................................................................ 1
1.2 LAB COST OF PRODUCTION....................................................................... 6
1.2.1 UOP HF Paraffin Process ..................................................................... 6
1.2.2 UOP Detal Process................................................................................ 6
1.2.3 HF Olefins (Internal Olefins) Process .................................................. 6
1.2.4 Summary ............................................................................................... 6
1.3 SUPPLY............................................................................................................ 7
1.4 DEMAND ......................................................................................................... 10
1.5 SUPPLY/DEMAND BALANCE ..................................................................... 12
2 Introduction................................................................................................................. 13
2.1 AIM OF THE STUDY...................................................................................... 13
2.1.1 Technology ........................................................................................... 13
2.1.2 Process Economics................................................................................ 13
2.1.3 Market/Commercial Section ................................................................. 13
3 Technology................................................................................................................... 14
3.1 INTRODUCTION ............................................................................................ 14
3.2 N-PARAFFINS COMMERCIAL ROUTES (UOP, EXXONMOBIL)........... 19
3.2.1 UOP n-Paraffin Process ........................................................................ 19
3.2.2 ExxonMobil n-Paraffins Process .......................................................... 21
3.2.3 Comparison Between the Two Technologies ....................................... 24
3.2.4 n-Paraffins Quality................................................................................ 24
3.3 LAB PRODUCTION TECHNOLOGIES ........................................................ 26
3.3.1 UOP HF/n-Paraffin Process.................................................................. 26
3.3.2 DetalTM Process................................................................................... 31
3.3.3 Chloroparaffin/AlCl3 Alkylation.......................................................... 35
3.3.4 Paraffin dehydrogenation / AlCl3 alkylation........................................ 38
3.3.5 Alpha-Olefins/HF Alkylation ............................................................... 38
3.4 PRODUCT CHARACTERISTICS................................................................... 39

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3.4.1 Low 2-Phenyl Alkane and High 2-Phenyl Alkane ............................... 39

3.4.2 Tetralin Impurities ................................................................................ 40
3.5 MINI LAB PLANTS ........................................................................................ 41
4 Process Economics ...................................................................................................... 42
4.1 RAW MATERIAL AND BY PRODUCT VALUATION ............................... 42
4.2 CAPITAL INVESTMENT ............................................................................... 42
4.3 COST OF PRODUCTION BASIS ................................................................... 43
4.4 NORMAL-PARAFFIN COST OF PRODUCTION......................................... 44
4.4.1 UOP Process ......................................................................................... 44
4.4.2 ExxonMobil Process ............................................................................. 44
4.5 LAB COST OF PRODUCTION....................................................................... 48
4.5.1 UOP HF Paraffin Process ..................................................................... 48
4.5.2 UOP Detal Process................................................................................ 48
4.5.3 HF Olefins (Internal Olefins) Process .................................................. 48
4.5.4 Summary ............................................................................................... 48
4.6 SENSITIVITY ANALYSIS ............................................................................. 53
4.6.1 Sensitivity to Capital Investment.......................................................... 53
4.6.2 Sensitivity to Economy of Scale ........................................................... 55
4.6.3 Kerosene Price ...................................................................................... 56
4.6.4 Benzene Price Sensitivity ..................................................................... 58
4.6.5 n-Paraffin Transfer Price Sensitivity .................................................... 59
4.6.6 Alpha-Olefin Price ................................................................................ 60
5 Commercial Analysis .................................................................................................. 62
5.1 SUPPLY............................................................................................................ 62
5.2 DEMAND ......................................................................................................... 65
5.3 SUPPLY/DEMAND BALANCE ..................................................................... 66
5.4 THE LAB VALUE CHAIN.............................................................................. 67
5.5 REGIONAL ANALYSIS ................................................................................. 69
5.5.1 North America ...................................................................................... 69
5.5.2 Latin America ....................................................................................... 72
5.5.3 Western Europe..................................................................................... 75

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5.5.4 East Europe ........................................................................................... 78

5.5.5 Asia Pacific ........................................................................................... 80
5.5.6 Middle East/Africa................................................................................ 84
5.6 NORMAL PARAFFINS CAPACITIES........................................................... 86
5.7 LAB AND N-PARAFFIN INTEGRATION .................................................... 88
5.8 POTENTIAL IMPACT OF GTL TECHNOLOGY ON SUPPLY OF N-
PARAFFINS ..................................................................................................... 89

Appendix Page

A Elements of Nexant's/Chem Systems' Capital Cost Estimate................................. A-1

B PERP Program Title Index ........................................................................................ B-1

Figure Page

1.1 LAB Production Routes................................................................................................ 3

1.2 LAB Worldwide Capacity by Process .......................................................................... 5
1.3 Global LAB Capacity by Region, 2002........................................................................ 8
1.4 World LAB Capacity Share by Producer, 2002............................................................ 10
1.5 Global LAB Demand by Region, 2002......................................................................... 11
1.6 Global LAB Operating Rates, 2000-2012 .................................................................... 12
3.1 LAB Production Routes................................................................................................ 16
3.2 LAB Worldwide Capacity by Process .......................................................................... 18
3.3 UOP n-Paraffin Process ................................................................................................ 20
3.4 ExxonMobil n-Paraffin Recovery Process ................................................................... 23
3.5 ExxonMobil n-Paraffin Purification Process ................................................................ 25
3.6 UOP Pacol/Define Dehydrogenation n-Paraffin Process ............................................. 27
3.7 UOP HF Process-Alkylation......................................................................................... 30
3.8 UOP HF LAB Process Purification .............................................................................. 32
3.9 UOP Detal LAB Process............................................................................................... 33
3.10 Enichem Chloroparaffin/AlCl3 Alkylation Process ..................................................... 37
4.1 n-Paraffin Cost Sensitivity to Capital Investment ........................................................ 54
4.2 LAB Cost Sensitivity to Capital Investment................................................................. 54

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4.3 n-Paraffin Cost Sensitivity to Economy Of Scale......................................................... 55

4.4 LAB Cost Sensitivity to Economy of Scale.................................................................. 56
4.5 Historical Kerosene Prices............................................................................................ 57
4.6 LAB Cost Sensitivity to Kerosene Price....................................................................... 57
4.7 Historical Benzene Prices ............................................................................................. 58
4.8 LAB Cost Sensitivity to Benzene Price ........................................................................ 59
4.9 LAB Cost Sensitivity to n-Paraffin Transfer Price ....................................................... 60
4.10 LAB Cost Sensitivity to Alpha-Olefin Price ................................................................ 61
5.1 Global LAB Capacity by Region, 2002........................................................................ 62
5.2 World LAB Capacity Share by Producer, 2002............................................................ 64
5.3 Global LAB Demand by Region, 2002......................................................................... 65
5.4 Global LAB Consumption by End-use ......................................................................... 66
5.5 Global LAB Operating Rates, 2000-2012 .................................................................... 67
5.6 LAB Value Chain Structure.......................................................................................... 68
5.7 North America LAB Capacity Share, 2002 .................................................................. 70
5.8 LAB Consumption in North America, 2002................................................................. 71
5.9 Latin America LAB Capacity Share, 2002 ................................................................... 73
5.10 LAB Demand in Latin America, 2002.......................................................................... 74
5.11 Western Europe LAB Capacity Share, 2002 ................................................................ 76
5.12 Western Europe Heavy Duty LAB Market Segmentation1, 2002................................ 77
5.13 East European LAB Capacity Share, 2002 ................................................................... 79
5.14 Asia Pacific LAB Capacity Share, 2002....................................................................... 81
5.15 LAB Demand in Asia, 2002.......................................................................................... 83
5.16 LAB Capacity Share in the Middle East and Africa, 2002........................................... 85

Table Page

1.1 LAB Production Cost Summary ................................................................................... 7

1.2 Global LAB Capacity by Region, 2000-2012............................................................... 9
1.3 Global LAB Demand by Region, 2000-2012 ............................................................... 11
3.1 n-Paraffins Product Quality .......................................................................................... 26

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3.2 Catalyst Composition.................................................................................................... 35

3.3 Effect of Fluoride Level on Silica-alumina Catalyst Performance............................... 35
3.4 LAB Process Product Characteristics ........................................................................... 39
3.5 2-Phenylalkane Content by Catalyst Type.................................................................... 40
3.6 LAB and Tetralin .......................................................................................................... 41
4.1 Price and Utilities Basis................................................................................................ 42
4.2 Capital Investment – n-Paraffin Separation.................................................................. 43
4.3 Cost of Production Estimate for: Normal Paraffins Process: UOP
Hydrotreater/Molex Complex....................................................................................... 45
4.4 Cost of Production Estimate for: Normal Paraffins Process: ExxonMobil Chemical
Recovery and Purification ............................................................................................ 46
4.5 n-Paraffins Production Cost Summary ......................................................................... 47
4.6 Cost of Production Estimate for: Linear Alkylbenzene Process: UOP
PACOL/DeFine/PEP/HF Alkylation ............................................................................ 49
4.7 Cost of Production Estimate for: Linear Alkylbenzene Process: UOP
PACOL/DeFine/PEP/Detal Alkylation......................................................................... 50
4.8 Cost of Production Estimate for: Linear Alkylbenzene Process: Alpha & Internal
NormalOlefins/HF Alkylation ...................................................................................... 51
4.9 LAB Production Cost Summary ................................................................................... 52
4.10 LAB Production Cost Summary ................................................................................... 53
5.1 Global LAB Capacity by Region, 2000-2012............................................................... 63
5.2 Potential New LAB Plants and LAB/np Complexes .................................................... 63
5.3 Global LAB Demand by Region, 2000-2012 ............................................................... 65
5.4 North America LAB Capacity by Producer and Process, 2002.................................... 70
5.5 North America LAB Supply/Demand 2000-2012 ........................................................ 72
5.6 Latin America Capacity by Producer and Process, 2002.............................................. 73
5.7 Latin America LAB Supply/Demand 2000-2012 ......................................................... 75
5.8 Western Europe LAB Capacity by Producer and Process, 2002 .................................. 76
5.9 Western Europe LAB Supply/Demand 2000-2012 ...................................................... 78
5.10 East European LAB Capacity by Producer and Process, 2002..................................... 79
5.11 Eastern Europe LAB Supply/Demand Balance 2000-2012.......................................... 80
5.12 Asia Pacific LAB Capacity by Producer and Process, 2002 ........................................ 82
5.13 Asia Pacific LAB Supply/Demand, 2000-2012............................................................ 84

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5.14 Middle East and Africa LAB Capacity by Producer and Process, 2002 ...................... 84
5.15 Middle East and Africa LAB Supply/Demand Balance 2000-2012............................. 86
5.16 n-Paraffin Capacities by Producer, 2002-2003............................................................. 87
5.17 n-Paraffin LAB Integration........................................................................................... 88

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