Optimization and Diversification of Ethylene Feedstock Yang Yuanyi, Beijing Research Institute of Chemical Industry, SINOPEC, China Abstract

Ethylene feedstock worldwide mainly consists of petroleum distillates and natural gas liquid (NGL). The application of different feedstocks depends on the cost and availability of local resources. In the course of crude oil exploration, it is expected that more heavier and inferior crude will be supplied to the market. As crude oil is a nonrenewable energy source and the natural reservation is limited, it will be an inevitable trend to upgrade it further for the manufacture of high value-added petrochemical products. While the growth rate in market demand for propylene has exceeded that of ethylene, propylene supply has become tighter and the use of NGL as pyrolysis feedstock will further propylene supply shortage. Therefore, it is essential to study the optimization and diversification of ethylene feedstock to ensure sustainable growth of economy. To increase the profitability of ethylene producers and resolve the problem of optimization of ethylene feedstock, the current situation and future trend of development in the world at large and in the main districts are analyzed, and criteria for the selection of ethylene feedstock and typical methods of optimization are presented. Considering the characteristics of composition of Chinas feedstock and related problems, optimization measures are proposed and discussed which include diversifying feedstock sources, integrating petroleum refining with petrochemical process, developing naphtha standards, intensifying technical support and actively developing new ethylene technology to make full use of resources. Introduction Keen competition accompanies the development of the ethylene industry and how to enhance the overall competitiveness becomes an urgent issue to be tackled. Because the cost of feedstock approximately makes up 70~75% of the production cost of ethylene (using naphtha and gas oil as feedstock), and ethylene in turn produces the same dominant influence on the production cost of downstream products, reduction in the production cost of ethylene by optimization of ethylene feedstock can effectively improve the overall efficiency and plant competitiveness. With increasing ethylene production capacity, the demand for ethylene feedstock grows accordingly. Global ethylene feedstocks mainly originate from oil and natural gas of limited resources that are regarded as being practically incapable of renewable. Therefore, people must take the issue of how to make full and reasonable use of these resources into consideration. Overview of global ethylene feedstock Composition and development trend of global ethylene feedstock Global ethylene feedstock mainly consists of petroleum distillates and NGL. In the past 10~15 years, about 50% of world ethylene was produced from naphtha. However, because of regional differences in resource conditions, the predominant feedstock varies around the world. Analysis of the future trend of development indicates naphtha will still be the main feedstock for ethylene production. However, taking into consideration the change in global oil and gas reserves ratio and other factors, the proportion of natural gas as pyrolysis feedstock is expected to increase in the future. Moreover, with the acceleration of the integration of petroleum refining with petrochemical production, diversification of ethylene feedstock has been a rather determined trend. Optimization of ethylene feedstock Ethylene manufacturers are applying the following feedstock strategies: (1) Adjustment of feedstock structure according to changes in the supply of feedstock and prices of ethylene and by-products to ensure maximum profitability. Currently, most ethylene manufacturers have enhanced the feedstock

flexibility, leading to diversification of feedstock. (2) Integrating refinery and petrochemical plants and realizing the inter-supply of feedstocks and products to optimize feedstock utilization, to ensure a safe and stable feedstock supply and increase market adaptability of ethylene plants. (3) Another strategy is selective investment. Some big companies have access to those regions with abundant resources by forming alliances or joint ventures to obtain cheap and high-quality ethylene feedstocks. Overview of Chinas ethylene feedstock Development history and present status Owing to the restrictions in quality and quantity of oil and natural gas resources in China, naphtha and heavy feedstocks made up a high proportion in the composition of Chinas ethylene feedstock. In recent years, the conditions have changed to some extent as a result of pursuance of optimization of ethylene feedstock. Optimization measures Select high-quality well-priced ethylene cracking feedstock Feedstocks with higher content of alkanes, especially normal alkanes, shall be selected as ethylene feedstock, and for ethylene manufacturers to select suitable ethylene feedstocks with appropriate prices and to optimize performance/price ratio, a national naphtha standard that is in line with international practice shall be implemented as early as possible. Feedstock diversification Owing to the shortage of domestic high-quality ethylene feedstock, the diversification of feedstock should also be taken into consideration while selecting high quality and light ethylene feedstock, and all utilizable resources should be made full use of. Some high-quality ethylene feedstocks are produced from heavy feedstock. Hydrogenated tail oil from hydrocracking or moderate hydrocracking and hydroup grading of VGO, with high paraffin and low aromatic contents, are high-quality ethylene feedstocks. Cheap and abundant residual oil makes up about 40% of Chinas crude oil. Hydrotreated gasoline and diesel fuel fraction from delayed coking are excellent pyrolysis feedstocks, Besides basing on the limited domestic resources, China should be kept informed of current global market price, and import high-quality ethylene feedstocks whenever necessary, to extend the source of ethylene feedstock. Further integration of refining and petrochemical processes Current refineries integrated with ethylene plants, are able to produce high-quality feedstocks for ethylene units and aromatics units as well if necessary, and at the same time turning out high quality oil products. Topped reforming feed, raffinate, hydrogenated tail oil, and light hydrocarbons, produced by refineries, are all excellent ethylene feedstocks. Ethylene can be recovered from refinery dry gas, together with ethane and propane that can be used as supplementary feedstocks for ethylene units. Methane and hydrogen from the ethylene unit can be used as fuel or feedstock for hydrogen production. The inter-supply of feedstocks and products can improve overall plant economics. Intensifying technical support Current feedstock evaluation devices should be made full use of to establish the performance database of oil products, and improve the mathematical model for predicting the pyrolysis yield of oil products. The techno-economic method of evaluation may be set up on this basis, so as to provide prompt and all-around analysis and evaluation for the purchase of selected oil products and a scientific basis for making decisions.

Developing new ethylene technology to make full use of resources Chinas petroleum resources are insufficient, and with continued exploration, the crude oil becomes heavier and poorer in properties. Therefore, it is crucial to develop heavy oil cracking technologies. Compared with the traditional steam cracking, heavy oil catalytic cracking or catalytic pyrolysis expands the ethylene feedstock source and increases the flexibility of product distribution. The technology not only develops a new feedstock resource for ethylene production, but also provides an approach to mitigate the short supply of propylene. In recent years, Heavy Oil Contact Cracking Process (HCC) and Catalytic Pyrolytic Process (CPP) have been developed for the production of ethylene from heavy hydrocarbons. An industrial unit employing HCC technology has been built at Fushun Petrochemical Company. The CPP process has successfully passed industrial tests on the revamped 80 kt/yr riser bed catalytic cracking unit at Daqing Refinery. Conclusion Optimization of ethylene feedstock is directly related to the production cost and comprehensive economic benefit of ethylene plants, so it is an essential condition for improving the overall competitiveness of Chinas petrochemical industry.