Ethylene Raw Material Pattern to Persist Through 1970, Natural Gas

Nov 6, 2010 - Ethane, propane, and refinery off gases will still be the preferred raw materials for ethylene in 1970. By that time more than 10.8 bill...
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equipment design men who can do plant layouts and piping designs. These are followed by electrical en­ gineers and finally structural engi­ neers, the classification that is easiest to fill. Brown & Root says it has a constant and continuing need for en­ gineers and concurs with Weatherly on the order of scarcity. Fluor evaluates its problem in these words: "We're short. We would hire 20 engineers tomorrow if we could get them. In particular we would like experienced process, instrument, and computer specialists. ,, By dou­ bling the number of its campus trips this year, Fluor expects to hire more recent graduates and train them it­ self. Jacobs Engineering also finds manpower in very short supply, es­ pecially chemical engineers. It is re­ cruiting, advertising, and using over­ time extensively. Exception. Lummus recognizes a shortage of manpower, but claims it does not have much trouble getting engineers. Chicago Bridge & Iron, owned by U.S. Steel, is an exception. It calls the manpower situation "fine/' saying that the company employs 500 engineers, and has no trouble getting new ones. M. W. Kellogg Co. sums it up in the words "adequate, no ex­ cess." Kellogg has started a major recruitment program, and also trains its own engineers for key spots. Chemico, Procon, and Foster Wheeler also have training programs. The increased demand on engineer­ ing-construction companies has not forced a marked rise in subcontract­ ing. Most companies do as little sub­ contracting as possible. For instance, Foster WTieeler does not subcontract unless it can provide adequate con­ tract management, such as supervi­ sors from among its own personnel. From time to time, however, it han­ dles a big job jointly with another company in the same field. Kellogg says that little of its work is subcontracted, and that present conditions have caused no change. There is also no change at Lummus. Chemico is doing a bit more subcon­ tracting than previously, but not much to speak of. Weatherly finds that most subcontractors are incapable of doing the kind of work expected. Jacobs feels that subcontracting is most unsatisfactory and would rather turn down work. Furthermore, sub­ contractors usually have very poor help, Jacobs says, and those that have good men are themselves very busy. 38

C&EN

OCT. 11, 1965

Ethylene Raw Material Pattern to Persist Through 1970, Natural Gas Men Told Ethane, propane, and refinery off gases will still be the preferred raw materials for ethylene in 1970. By that time more than 10.8 billion pounds of these materials will be used by chemical plants on the Gulf Coast. This preference will persist even though some chemical companies will get quotas to import naphtha before 1970, possibly by Jan. 1, 1966, Dr. Norman J. Lewis of Pace Co. told a meeting of the Natural Gas Men of Houston. Total U.S. use of ethylene in 1970 will be 13.22 billion pounds, accord­ ing to projections made by Pace, a consulting engineering firm based in Houston, Tex. Products made in the U.S. from ethylene will total nearly 19 billion pounds in 1970, of which 15.5 billion pounds will be made in plants on the Gulf Coast. Comparable data for 1964 are more than 12 billion

pounds total ethylene-derived prod­ ucts of which almost 9.5 billion pounds came from Gulf Coast plants. Capacity for needed ethylene will certainly be available, Dr. Lewis says. Counting only existing capacity and expansions to be completed by 1967, total ethylene capacity on the Gulf Coast will exceed 12.2 billion pounds by then. Balance. This total allows for the unlikely situation that older ethylene units will not be shut down, and gives a capacity utilization of 88.5%. More than likely, however, older units will be shut down in favor of new, more efficient units. Also, some large new facilities will go on stream in in­ crements. As a result, demand and real capacity to supply will be nearly in balance during the next few years. In his survey of ethylene plants, Dr. Lewis finds only three Gulf Coast

Ethylene Makers Prefer Ethane, Propane, Off Gas as Raw Materials Company

AlliedWyandotte Dow Du Pont El Pa so-Rexa II Gulf Humble (Enjay) Jefferson Mobil Monsanto PCI Phillips Shell Chemical SinclairKoppers Texas Eastman Union Carbide

* ** Ε Ρ Ο

Plant Site

Geismar Plaquemine Freeport Orange Odessa Port Arthur Cedar Bayou Baton Rouge Baytown Port Neches Beaumont Texas City Chocolate Bayou Lake Charles Sweeny Deer Park Norco Houston Longview Texas City Seadrift Taft

Expanded* Capacity 1964 Capacity (millions of pounds)

400 220 600

305 1300

70 230

820 320

425 400

425 400

690 90

1000 90

175 380

450 380

100 500

100 500

275 550 275

1000**

225 750 900

Announced expansions to be completed by 1967. Expansion to be a joint venture with Houston Natural Gas. Ethane C Condensate Propane L Liquids Off gas NG Natural gasoline

Source: Dr. Norman .1. Lewis, Pace Co.

360 275 500

500 450 750 900 1000

Feedstocks

Ε, Ε, Ε, Ε, Ε, Ρ, Ρ Ε, 0 Ε, 0, C C Ε, Ε, Ρ, Ε,

Ρ Ρ Ρ Ρ Ρ 0 0, L, GO Ρ, 0 NG

Ρ, 0 Ρ, 0 0 Ρ, 0

Ρ, 0 Ε, Ρ Ε, Ρ, 0 Ε, Ρ Ε, Ρ, possibly Ν later GO Gas oil Ν Naphtha

producers which use raw materials other than ethane and propane (both from natural gas), and refinery off gas (which is largely ethane and ethylene). These raw materials are the only good source if ethylene, and only ethylene, is the desired product. Cracking heavier materials creates problems of purifying and selling the co-products. The existing and expanded Gulf Coast ethylene plants used about 72,000 barrels per day of ethane and 100,000 barrels per day of propane in 1964. By 1970, requirements may be about 115,000 barrels per day of ethane and 200,000 barrels per day of propane. Change. This use of ethane and propane will be assured if no major change in import policies occurs. If a change does occur, then a change in economics of raw materials will result. For example, ethane and propane sell today at about 1 cent a pound at desirable locations on the Gulf Coast, Dr. Lewis says. Butane, natural gasoline (C 5 and higher), condensate, and crudes used in making olefins move at 1 to 1.2 cents per pound. The light raw materials from natural gas thus have a cost advantage in products where cost of raw materials can be up to 75% of manufacturing cost. But if foreign naphtha came into Gulf ports in quantity at 5 cents a gallon, it would be a 3 / 4 cent-per-pound feedstock. And a 1-cent-lower price per gallon for naphtha can mean a decrease of 11.8% in cost of ethylene made from it, assuming economically sized plants and a reasonable return from sales of coproducts (such as butylènes, pentenes, benzene, toluene, and xylenes). Such possible raw material costs lie behind efforts by chemical companies, such as Dow and Union Carbide, to obtain foreign trade subzones. They seek the same benefit from lower world petroleum prices that refiners have in the import quota program, which aims to aid the U.S. economy, yet protect domestic oil producers and royalty owners to a degree. Companies can import foreign feedstocks into foreign trade zones without regard to the oil import quotas. Products made in the zone and sold in the U.S. are subject to the same customs and tariff regulations as imported products, but the regulations are not prohibitive. Thus, to take advantage in the U.S. market of the cheap foreign feedstocks, a chemical

firm usually must either get a foreign trade zone or an oil import quota. Because of this situation, Dr. Lewis gives this assessment of intentions of the Department of Interior: • Quotas will be set for producers of materials such as ethylene, propylene, and benzene, but not for ammonia and carbon black, at least initially. • Quotas will be small at first, and will possibly be in effect by Jan. 1. These will result from conferences with companies and the open hearing scheduled for Oct. 28. • Phillips Petroleum will get a new 50,000 barrel-per-day quota when its planned petrochemical complex in Puerto Rico is ready to start up. This action will be affected by wording in the revised Presidential Proclamation 3279, to be issued soon, which may allow the Secretary of the Interior to act to aid economic development when deemed desirable or necessary to portions of U.S. society. • The need for chemical manufacturing foreign trade subzones will be ended by granting import quotas to chemical companies. These actions will probably increase total petroleum imports by no more than 30,000 barrels per day in 1966, and 60,000 barrels per day in 1967, Dr. Lewis estimates. (Current imports are about 1 million barrels a day.)

Ethylene Products to Total 19 Billion Pounds by 1970 Product

Polyethylene (low density) Polyethylene (high density) Ethylene oxide Ethyl alcohol Ethylene dichloride Sty re ne Acetyls by direct oxidation Ethyl chloride EP rubbers Linear alcohols TOTAL

Total U.S. Gulf Coast (Millions of poijnds)

3,570

3,000

1,420 2,400 255 4,650 3,500

1,200 1,900 190 4,000 2,620*

900 820 850 600 18,965

750 660 720 500** 15,340

•Approximately 2.35 billion pounds based on ethylene; balance from petroleum ethylbenzene. ** Approximately 250 million pounds will be based on the improved oxo process, thus probably not based on ethylene. Source: Dr. Norman J. Lewis, Pace Co.

Plastics Help Detroit Hold Line on Prices Use of plastics means $75 saving to buyers of 1966 models The flood of explanatory press releases from Detroit last week did little to clear the picture on auto prices. It wasn't immediately apparent whether the new prices were higher or lower. But a close look indicates that auto makers, with the help of new and better materials, especially plastics, have generally managed to hold the line on basic car prices for the eighth consecutive model year. Had car prices kept pace with increases in the consumer price index since 1959, the 1966 models would cost an average of $300 more today. That they don't can be traced in large part to great improvements in manufacturing techniques. But new materials have played a large role in keeping prices down. Wider use of plastics in autos since 1959—nearly twice as much per car—has saved buyers of 1966 models perhaps $75 per car. The auto industry has been hard pressed to cut costs without diluting product quality. In the seven years since the fall of 1958—introduction time for 1959 model cars—the price of cold-rolled carbon steel sheet used for auto bodies has climbed 4%. The average price of automotive raw materials has climbed 3 % . In those seven years, direct wages for production workers in the auto industry have risen more than 30%. Auto makers have countered rising costs with higher productivity and more expert selection from a wider range of materials. U.S. motor vehicle production jumped 40% between 1954 and 1964 while the average number of production workers dropped 1.4%. Higher-strength steels and aluminums mean that a pound of metal goes further. And the nearly 40 pounds of plastics in 1966 cars have replaced some, 200 pounds of metal. Auto designers are learning that plastics offer design freedom, high performance, sharply lower tooling costs, and ever decreasing raw material prices. Results of these trends show up when comparing 1959 cars with 1966 cars. A 1966 Chevrolet Impala fourdoor sedan (six-cylinder) carries a "sticker" price $58 lower than a comOCT. 11, 1965 C&EN

39

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Ask us for details on these c h e m i c a l s . . . and others. Send the coupon today. Industrial Chemicals Department CEN 10-11-65 À A Elanco Products Company A Division of Eli Lilly and Company P. 0. Box 1750 Indianapolis, Indiana 46206

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C&EN

Zip

OCT. 11, 1965

parably equipped 1959 model, Gen­ eral Motors says. And it weighs about 40 pounds less although both have the same wheel base. Interiors. Plastics in autos have found their widest use in interiors. Deepest penetration has come in in­ strument panels. For example, most instrument clusters today are made of acrylonitrile-butadiene-styrene. This plastic has very nearly slammed the door on die-cast zinc and sheet metal. Design engineers have found that with ABS they can use intricate shapes and unusual surface effects which would be difficult to achieve with metal. But cost savings are the real clincher in Detroit. At the supplier level, in­ strument clusters made of ABS cost an average of $1.50 less than metal ones. Such a saving is large in an industry which exults over saving pennies. There is no way to calculate the effect of a cost saving on a part on the selling price of a car. Auto makers maintain tight security on cost figures. But there is reason to suspect that the ef­ fect is substantial. One example of how application of plastics points the way to large sav­ ings is the rear package shelf, which is made of glass-reinforced styrene-acrylonitrile on some 1966 G M models. The shelves have several ducts and grilles integrally molded. Integral ducting makes the plastic part less costly than the typical vinyl-covered fiberboard shelf with ducts riveted in. Cheaper ducted package shelves make closed-car flow-through ventilating systems economical. These systems, in turn, are eliminating front-door vent windows. Parts saving is about $5.00. Exteriors. Plastics are now poised for more extensive use on auto exte­ riors. Several 1966 models will carry fender extensions of acetal or nylon in place of die-cast zinc. Fender exten­ sions allow lower-cost tooling for some body panels because complex contours at the fender extremes aren't part of the panel tooling. Lower-cost tooling allows lower-cost and more frequent "face-lift" style changes for special models and midyear changes. Plastic extensions reduce weight at the crit­ ical extremes of a car, and thus re­ duce loadings on suspension. At the supplier level, they're priced 15 to 40r/r below zinc extensions. At least one 1966 model is due to have polyethylene fender-well splash shields, replacing sheet metal stamp-

FENDER. Some 1966 cars have plastic fender extensions in place of metal ones

ings. Plastic shields eliminate a cor­ rosion problem, and make color pos­ sible in the under-fender area. Each plastic shield costs about $1.00 less than a metal one. Blow-molded polyethylene or vinyl gasoline tanks may be production items by the time the 1968 models roll. Plastic tanks resist denting and rupture better than metal, are no less safe, and promise another saving. Integrating. Auto makers are glee­ ful over the design flexibility and sav­ They're ings offered by plastics. backing their glee with lots of money. Practically every automotive division of GM is loading up with plastics in­ jection molding machines (C&EN, July 27, 1964, page 2 1 ) . Ford is buy­ ing several hundred injection molding machines for its huge new plant at Saline, Mich. Chrysler, too, is order­ ing many injection molding machines. Ford and Chrysler currently have little or no captive plastics molding capacity. Thus Detroit is about to usher in its plastics era.

Hudson River Due for Cleanup by Early 1970's The graceful Hudson River, which was gracelessly described at a recent pollution enforcement conference as a torrent of filth, great septic tank, and open sewer, could well be open for swimming again by the early 1970's. Few old-timers, of course, remem­ ber when it last was open for swim­ ming. But participants in the en­ forcement meeting (C&EN, Oct. 4, page 34), called by the Secretary of Health, Education, and Welfare in New York, agreed on a schedule of pollution abatement steps calling for completion of new treatment plants from New York City to Albany by Jan.

1, 1970. Designs are due by Jan. 1, 1967; financing arrangements must be set by April 1, 1967; and construction is slated to start by July 1, 1967. The panel advised industry to "effect maximum reduction" of such wastes as acids and alkalies, oil and tarry substances, odorous phenols, nutrient materials, oxidizable substances, and foam-producing discharges. Citing the need for separating sewage systems from storm drains, the panel called for submission of a separation plan by Dec. 3 1 , 1968. Meanwhile, all new building projects are to install separate systems beginning immediately. Costs. Testifying under the chandeliers of the Waldorf-Astoria's Starlight Room, most of the 23 witnesses agreed that more federal help is needed to bring swimmers back to the Hudson. Costs ranged as high as $700 million and nobody yet knows where all the money is going to come from. A $1 billion water pollution abatement bond issue is on the November ballot in New York. But this sum covers the state-wide problem, which includes Lake Erie. The Federal Government, while legally empowered to grant up to 30% of new sewage treatment plant costs, sets a dollar limit on grants. Mayor Robert Wagner of New York emerged as the voice of realism over the fight to keep the wastes of a huge metropolis under control. "Pollution was not discovered yesterday," said the mayor. "It has been with us a long time. We know this. I wish it weren't so. Nor can it be cleared up as quickly as a newspaper headline can be set into type. Now at last both the federal and state governments have begun—and I emphasize begun— to focus attention on this crucial problem." Then, to muffle critics of New York City's contribution of raw wastes to New York harbor, Mr. Wagner outlined the city's master plan for sewage treatment. Now 75% complete, the project was designed first to protect New York's beaches before attacking harbor pollution. Under the plan, the harbor should be clean by 1971. "No other major city in this area even approaches us either in terms of per capita percentage of sewage treatment now or for the measurable future," Mayor Wagner said. Outside help toward the $750 million spent so far amounts to 1.8% from the state and 1.1% from the Government.

BRIEFS Diamond Alkali has acquired the remaining 60% of capital stock of Harte & Co., Inc., New York City, a major producer of vinyl film and sheeting, in exchange for 95,000 shares of a new series of Diamond preferred stock. Harte, under its present management, will operate as a subsidiary. It has plants in Brooklyn, N.Y.; Mountaintop, Pa.; Los Angeles, Calif.; and Greenwich, Conn. The acquisition underlines Diamond's goal of establishing proprietary products.

Hercules Powder has acquired Balfour Chemicals, Inc., Tacoma, Wash., for an undisclosed amount of cash. Balfour manufactures resins and adhesives for use in plywood and particle board, a business new to Hercules. No change in Balfour's management is planned, but its plant will be operated by Hercules' synthetics department.

Cryogenerators, a division of North American Philips Co., Inc., with headquarters at Ashton, R.I., has changed the divisional name to cryogenic division. The new name reflects the division's expanded manufacturing operations and diversification in the cryogenic field. Coiporate structure and operating policies are unaffected by the name change.

Graphite products division is the new

name of Basic Carbon, Sanborn, N.Y., a division of Carborundum Co. The name change results from a large expansion program at Basic Carbon. The new division is presently building a $9 million plant in Hickman, Ky., to produce graphite anodes, electrodes, and mold stock.

PURECO CO, indusbry's problem solver TOOL STEEL Pureco CO2 chills tool steel . . . cold C0 2 sets dimensional stability of wide variety of tool steels. ROCKET FUELS Pureco CO2 tests rocket fuels at low temperatures . . . and other products that have to function in freezing environments. FRANKFURTERS Pureco CO* protects frankfurters . . . gas packaging of frankfurters with CO2 also preserves appearance. MEATS Pureco CO2 speeds grinding of meats . . . preserves bloom and color. PERHAPS IT COULD SOLVE A PROBLEM FOR YOU.

If you have a problem that might be solved by the c h i l l i n g , inerting or blanketing properties of C0 2) call your Pureco representative. He's an expert on CO2 uses and he is backed by a widely experienced technical service group.

NEW FACILITIES Speer Carbon Co., a division of Air Reduction Co. and a major producer of carbon and graphite products and A DIVISION OF AIR REDUCTION COMPANY. INC. electronic components, is launching a 150 East 42nd Street, New York, N.Y. 10017 $17 million expansion program at its Gentlemen: I am interested in uses of C02 in plants in St. Marys, Pa., and Niagara the Chemical Industry. Please send me full Falls, N.Y. The expansions, when particulars. completed by about 1968, will include Name . new production facilities and equipAddress . ment, as well as enlarged and modernized development and quality control City State Zip Code labs.

PURE CARBONIC

OCT. 11, 196 5 C&EN

41

Project fabrication Corp. has opened a new plant fabrication facility at College Point, N.Y. The facility doubles PFC's capabilities to produce prefabricated chemical plants and special equipment. Construction cost is $500,000.

PENNSALT DEVELOPMENT CHEMICALS

NEW MERCAPTAN POLYMERIZATION MODIFIERS Two of the new mercaptans offered by Pennsalt as elastomer modifiers should also be of value in nonelastomeric polymerizations. MIXED PRIMARY TRIDECYL MERCAPTAN, EC-1775 Distillation Range 262-284°C Mercaptan Sulfur, wt. % 14.5 MIXED TERTIARY Cio.ii MERCAPTANS, EC-1122 Distillation Range 205-240°C Mercaptan Sulfur, wt. % 17.0 The utility of a tertiary Ci 0 -n mercaptan mixture as a modifier for SBR is claimed in U.S. Patent 3,188,304. Technical data, prices and samples available upon request. • General information on mercaptan chain transfer constants, polymerization recipes, and literature references are given in Pennsalt Bulletin S - 2 2 2 , " M e r c a p t a n s as Chain Transfer Agents in Polymerization". Ask for your copy. For a complete listing of Pennsalt mercaptans ranging from Q through Ci6, ask for Pennsalt Bulletin S-216.

(PENNSALT) CHEMICALS · EQUIPMENT

PRODUCT DEVELOPMENT DEPARTMENT PENNSALT CHEMICALS CORPORATION 3 PENN CENTER · PHILA., PA. 19102

42

C&EN

OCT. 11, 1965

Celanese Chemical Co., a division of Celanese Corp. of America, is expanding its Clarkwood research lab at Corpus Christi, Tex. The additions, when completed next spring, will include a process development laboratory and an instrument development laboratory.

National Cylinder Gas, a division of Chemetron Corp., Chicago, 111., will build and operate the first on-site oxygen plant in the U.S. to supply the gas for primary lead smelting and for zinc recovery from slag. The plant will be in East Helena, Mont., adjacent to facilities of American Smelting and Refining Co. and Anaconda Co. It will produce more than 42 tons of oxygen per day when in operation in fall 1966.

Mobil Chemical Co., a division of Socony Mobil Oil, is constructing two polystyrene foam fabricating plants for its Mobil foam products department. One plant, at Frankfort, 111., is being built by John F. Chappie & Co., Elmhurst, 111., and will be completed Nov. 1. The other plant, at Bakersfield, Calif., is being built by Valley Steel Construction of Bakersfield. It will be in operation late this year.

Fiber Industries will double its capacity for nylon 66 at Greenville, S.C., by 1967. Initial capacity was 40 million pounds per year when the plant started operation last April. Fiber Industries is owned 62.5% by Celanese Corp. of America and 37.5% by U.K.'s Imperial Chemical Industries.

Hercules Powder is constructing what it claims will be the world's largest single-line nitric acid plant at its Missouri chemical works, Louisiana, Mo. The new plant, when completed next spring, will add 800 tons of nitric acid per day to the present 300 ton-a-day capacity at the site.

Foote Mineral Co., Exton, Pa., will build a large electrolytic manganese plant at New Johnsonville, Tenn. The plant, which will be in operation in 1967, will feature many innovations by Foote, largest U.S. producer of electrolytic manganese. The company presently has two manganese operations at Knoxville, Tenn.

White Chemical Corp., Bayonne, N.J., has doubled its capacity for aliphatic and aromatic acid chlorides from a previous 5 million pounds per year. Construction cost is about $100,000.

Shell Chemical's petrochemicals division plans to construct a 100 million pound-per-year p-xylene plant at Shell Oil's refinery near Houston, Tex. The plant, when completed in 1967, will supply p-xylene for the manufacture of polyester fibers and films.

Ethyl Corp. plans construction of a $3 million plant to produce trichloroethylene and perchloroethylene. The new facility will be located at Baton Rouge, La. Construction will start soon with completion scheduled for late 1966.

FINANCIAL Union Oil's current quarterly dividend will be increased to 30 cents per share from the previous 25 cents per share. It will be payable on Nov. 10 to shareholders of record on Oct. 11. The dividend increase reflects the company's higher earnings, Union Oil's president Fred L. Hartley says.

En jay Chemical, New York City, a division of Humble Oil & Refining, has increased the price of brucine denatured SDA-40 (specially denatured alcohol) by 5 cents per gallon. The new prices are 59.5 cents per gallon for the 190-proof formula and 66.5 cents per gallon for the anhydrous formula. Prices of other formulations of SDA-40 remain unchanged at 54.5 cents per gallon for the 190-proof and 61.5 cents per gallon for the 200-proof grades. Mounting costs and shortage of supply of brucine alkaloid and sulfate made the price increase necessary, the company says.