Value Additiion by Integrating C3 Derivatives with PDH Units

Fuels and Petrochemicals Division
AIChE Spring Meeting and Global Congress on Process Safety
April 30, 2013 - 9:02am-9:32am
With rapid development of Ethane based Ethylene production in Middle East and switch to lighter feedstock in US crackers have been mainly responsible for shortfall in Propylene and C4s. To fill this gap in Propylene supply, a number of new on-purpose Propylene production units (PDH) are being built in US, China & other parts of the world. With so many PDH units planned in US, an excess of propylene is already being speculated while most of the Propylene is used up in polypropylene units. The projected scenario of excess propylene will impact the long term profitability of propylene producers and will likely promote and justify propane export – which will not be in the best interest of US producers using propane feedstock. To sustain the long term profitability of on-purpose propylene producers, downstream integration with the relevant propylene derivatives is called for. Based on the increasing global market demand of those derivatives with better returns- such integration units are already being planned.

This presentation will examine the relative economics of various propylene derivative combinations- including Acrylic Acid & its derivatives as well as Oxo-Alcohols/aldehydes & its derivatives. Other propylene derivatives (like Acrylonitrile, PO, Cumene/Phenol will be briefly included but not for the economic comparison). A brief relevance of the market will also be included in the presentation.

Professional Development Hours
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