Commodity survey This is Part I of a two-part survey of the U.S. aromatics industry. This section deals mainly with benzene and its derivatives. The second section, to appear next week, will focus on toluene, xylene, naphthalene, and the products made from these major aromatics.
major aromatics Demand for benzene is slated to increase 56% by 1965. Upsurge is being propelled by expanding need for styrene, phenol, nylon, and other key derivatives 116
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MARCH
2 0, 1 9 6 1
THE AROMATICS INDUSTRY. Aromatics are obtained from either coal tar or petroleum. Before World War II, coal tar was the only source. Since then, the nations dependence on coal tar has progressively diminished. Benzene was not produced commercially from petroleum until 1950, when 10.1 million gallons of petroleum-derived material was made. In 1959, benzene for the first time came mostly from petroleum companies. And last year, 67% of the 457 million gallons of benzene produced was obtained from petroleum. Toluene and xylene have come predominantly from petroleum since 1942, except during 1946 and 1947. In 1960, 89% of the 276 million gallons of toluene produced and 97% of the 328 million gallons of xylene were made from petroleum. Naphthalene is the latest aromatic to make the switch. Ashland Oil ù- Refining put the nations first petronaphthalene plant on stream in February. Although there are industry plans for 450 million pounds of petroleum-derived naphthalene, it wont be until the late I960's that naphthalene ivill come mostly from petroleum. The petroleum industry gets its aromatics primarily from catalytic reforming operations. Aromatics can also
be obtained from catalytic cracking operations, but these have not been exploited to any degree so far. One reason is that the high olefin content of cracked materials makes it difficult to separate aromatics economically. Based on an estimated U.S. crude petroleum production of about 3 billion barrels a year at present, the annual aromatic potentials would be: benzene, 480 million gallons; toluene, 3.4 billion gallons; and xylene, 4.1 billion gallons. Several processes are available for separating aromatics from petroleum after a reforming or other operation. Udex extraction, sulfur dioxide extraction, and azeotropic distillation are examples. The Udex route, developed by Universal Oil Products and Dow Chemical, is the most widely used. It is even used by U.S. Steel and Jones &• Laughlin to upgrade their coke oven benzene. Although toluene and xylene are the chief aromatics recovered from petroleum streams, benzene is the main aromatic product from coke ovens. From the light oils produced by high temperature carbonization of coal can be obtained benzene, toluene, and xylene by fractional distillation. On the average, every ton of coal gives 11.8 pounds of benzene in addition to 2.7 pounds of toluene, and 1.3 pounds of xylene.
in transition 1961-65 WALTER S. FEDOR, Senior Associate Editor This year will be a year of transition for the nation's aromatics chemical industry. The volcanic expansion phase which began last year, and is continuing into this, will switch to a completion cycle as plans translate into operating units. The tight supplies of benzene and naphthalene will start to loosen while a squeeze develops in xylene and possibly toluene. But before 1962, enough new aromatics capacity will be installed to swing the aromatics business into overcapacity. It will likely take four to five years to digest the new levels of supply. Aromatics expansion plans slated for completion by late 1962 will: • Increase the domestic benzene capacity about 60%. • Raise the toluene potential 27%. • Up the xylene potential by 3 5 % . • Hike naphthalene capacity around 75%. All of these increases will be based
on petroleum sources. When the present and known expansions through 1962 are completed, the benzenetoluene-xylene (BTX) and naphthalene producers will shake down as follows: • Sixty-five benzene producers with total capacity of around 916 million gallons a year, about 70% from petroleum sources. • Fifty-nine toluene makers with capacity for 467 million gallons annually, 90% from petroleum. • Fifty-six xylene producers with capacity near 430 million gallons a year. Petroleum firms will have 96% of the capacity. • Thirty-seven naphthalene producers having a capacity of 1.05 billion pounds a year. Coke oven sources will provide 57% of the naphthalene. These capacity levels appear more than ample to handle expected consumption by 1965. Yet more expan-
sions in aromatics will probably take place. However, balanced against this is evidence that BTX and naphthalene consumption will grow considerably, too. Compared to 1960, benzene demands will increase 56% by 1965; toluene, 84%; and xylene, 60%. Naphthalene consumption will increase 30%. But between now and 1965, the tight market for aromatics will become glutted. Pressures will exist to force some prices down. Listed prices will probably hold firm through this year, but by 1962 aromatics producers will be taking close looks at supply and demand. Behind the Aromatics
Spurt
Two years ago most market forecasters predicted the worst for the aromatics—vast overcapacity that would not ease until the late 1960's. One trade publication stated that "it's doubtful that petroleum aromatics caMARCH
2 0, 1 9 6 1
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117
Petroleum
Company and Location Amoco Texas City, Tex. Ashland Oil & Refining Buffalo, N.Y. Catlettsburg, Ky. Atlantic Refining and Pure Oil Nether land, Tex. Atlas Processing Shreveport, La. Chemoil New Orleans, La. Cities Service* Lakes Charles, La. Continental Oil Lake Charles, La. Ponca City, Okla. Cosden Petroleum (W. R. Grace) Big Springs, Tex. Crown Central Petroleum Houston, Tex. Delhi Taylor Corpus Christi, Tex. Dow Chemical Freeport, Tex. Bay City, Mich. El Paso Natural Gas Odessa, Tex. Great Southern Corpus Christi, Tex. Gulf Oil Port Arthur, Tex. Philadelphia, Pa. Humble Oil & Refining (Enjay Chemical) Baton Rouge, La. Baytown, Tex. Leonard Refineries Mt. Pleasant, Mich. Mobil Chemical Beaumont, Tex. Monsanto Chemical Chocolate Bayou, Tex.
Capacity, Millions of Gallons Benzene Toluene Xylene By By ~~By 1961 1961 1961 or or or 1960 1962 1960 1962 1960 1962 15
15
10
10
5
5
4 4
4 15
8
8
3
3
18 10
C&EN
MARCH
25
13
10 3 15
5 6
6
9
7
21 35
30
5 6
35
7
15
12 14
14
15
8 12
12
30 20 15 9
9
13
13
32
32 12
5
5
24 30
24 55
9 32
9 55
5
5
3
3
4
80
4
80
42
2 0,
1961
Capacities
Company and Location Phillips Petroleum Sweeney. Tex. Plymouth Oil Texas City, Tex. Pure Oil Toledo, Ohio Richfield Oil Wilmington, Calif. Shell Oil Houston, Tex. Wilmington, Calif. Wood River, III. Signal Oil & Gas Houston, Tex. Sinclair Marcus Nook, Pa. Houston, Tex. South Hampton Silsbee, Tex. Standard Oil of California (California Chemical) El Segundo, Calif. Richmond, Calif. Standard Oil (ind.) Whiting, Ind. Sun Oil Marcus Hook, Pa. Sunrav Tulsa, Okla. Suntide Corpus Chris!i. Tex. Tenneeo Oil Chalmellc, La. Texaco P o l Arthur, Tex. Vickers Petroleum Potw in. Kan. Totals
Capacity, Millions of Gallons Benzene Toluene Xylene By By By 1961 1961 1961 or or or 1960 1962 1960 1962 1960 1962
10
9
9
18
18
24
24
30 12 18
30 12 18
30 10 13
32 6
16
16 6 20
17
10
18
12
Sources:
10
17 15 45
15
6
6
15
15
12
12
20
20
15
15
9
21
6
21
17
17
24
4 13
15
13 10
15
30
369** 713**
326
121 308
* 11 /// sell a mixed toluene-xylene stream. ** Includes 10 million gallons of benzene produced from chem.ical by-prodwi.
30
p a c i t y will increase at all, especially since there's m o r e t h a n e n o u g h capacity to m e e t 1968's projected d e m a n d . " Clearly, t h e m a r k e t was misj u d g e d , as e v i d e n c e d b y today's tight supplies a n d s u b s e q u e n t expansion wave. W h a t happened? Most firms m a y h a v e specific reasons for increasing aroniatics c a p a c i t y or for e n t e r i n g t h e m a r k e t . T h e s e are often difficult to a p p r a i s e a n d do n o t necessarily signify a g e n e r a l t r e n d . But t h e r e w e r e m a n y b r o a d factors, often going b a c k several years, w h i c h gelled in 1959 to p r o d u c e t h e p r e s e n t expansions. 118
Based Aroniatics
118 petro-
Industry and C§ /? V estimates
F o r e x a m p l e , t h e p e t r o l e u m industry w a s t h e key supplier of toluene a n d xylene d u r i n g W o r l d W a r II. In 1944 alone it p r o d u c e d 166 million gallons of toluene t h a t w e n t into explosives or aviation gasoline (to increase o c t a n e ) . After W o r l d W a r II, some c o m p a n i e s stayed in t h e business, b u t others either d i s m a n t l e d plants or p u t facilities on a s t a n d - b y basis. H o w ever, civilian air transportation grew m o r e rapidly than expected after W o r l d W a r I I a n d h e l p e d to s t r e n g t h e n t h e m a r k e t s for b o t h toluene a n d xylene. D u r i n g t h e mid-1950's t h e famed
octane race d e v e l o p e d , creating a d d i tional m a r k e t s for these aromatics, particularly for use in p r e m i u m g r a d e motor fuels. B e t w e e n 1950 a n d 1958, toluene o u t p u t from p e t r o l e u m companies tripled to 2 0 7 million gallons. Xylenes w e n t from 62.4 million to 2 1 3 . 8 million gallons. By t h e late 1950\s, h o w e v e r , t h e future of aroniatics as gasoline b l e n d i n g c o m p o n e n t s w a s a p p a r e n t . Jets a n d p r o p jets began to r e p l a c e piston driven aircraft, a n d aviation d e m a n d s started d o w n . T h e o c t a n e race slowed clown, a n d t h e p u b l i c fancy t u r n e d to the c o m p a c t car, with its promise of
Coke Oven Aromatics
Capacities 1960 Capacity (Based on a 70% Operating Rale), Millions of Gallons Xylene Toluene Benzene
1960 Capacity (Based on a 70% Operating Rale), Millions of Gallons Company and Location
Benzene
Alabama By Products Tarrant, Ala. Alan Wood Steel Swedeland, Pa. Arrnco Steel Middle town, Ohio* Bethlehem Steel Bethlehem, Pa.* Colorado Fuel & Iron Pueblo, Colo. Crucible Steel Midland, Pa. Detroit Steel Portsmouth, Ohio Donner-Haima Buffalo, N.Y. Granite City Steel Granite City, 111. Great Lakes Steel River Rouge, Mich. 11 dan d Steel Chicago, 111.* Interlake Iron Cleveland, Ohio* International Marvesler South Chicago, III. Jones & Laughlin Pittsburgh, Pa.* Kaiser Steel Fontana, Calif. Lone Star Steel Danger-field, Tex. National Steel Weirton, W.Va. Pittsburgh Coke & Chemical Neville Island, Pa. Pittsburgh Steel Manessa, Pa. Republic Steel Cleveland, Ohio* Sharon Steel Fairmount, W.Va. Tennessee Products & Chemical Chattanooga, Term.
for
volume
Xylene
2.2
0.4
0.1
1.5
0.4
0.1
3.7
0.7
0.2
32.0
7.2
2.2
3.0
0.7
0.2
2.2
0.5
0.2
1.5
0.2
0.1
3.3
0.7
0.2
1.2
0.3
0.1
5.0
1.0
0.3
6.7
1.0
0.1
3.5
0.7
0.2
2.1
0.4
0.1
10.0
2.5
0.8
4.8
1.2
0.3
1.1
0.2
0.05
5.0
I. 1
0.4
1.9
0.5
0.1
1.5
0.4
0.1
13.9
2.6
0.9
0.7
0.2
0.05
0.8
0.1
Company and Location United States Pipe & Foundry Birmingham, Ala. U.S. Steel Pittsburgh, Pa.* Wheeling Steel East Steubenville, W.Va. Woodward Iron & Steel Woodward, Ala. Youngstown Sheet & Tube
2.7
0.5
0.1
60.0
12.0
3.0
1.2
0.4
2.1
0.4
0.1
9.8 186.7
1.7 39.1
4.5
Youngstown, Ohio* Totals
-
0.5 10.93
* Company office. Source: C$ EN
estimates
Tar Distiller
Aromatics
Capacities
1960 Capacity, Millions of Gallons Xylene Toluene Benzene
Company and Location Allied Chemical New York, N.Y. * American Cyanamid Bound Brook, N . J . Great Lakes Carbon St. Louis, Mo. Indiana Gas & Chemical Terre Haute, Ind. Koppers Pittsburgh, Pa.* Milwaukee Solvay Milwaukee, Wis. Wyandotte Chemicals Wyandotte, Mich. Totals
8.0
1.9
0.5
5.5
0.9
0.2
0.8
0.13
0.03
0.5
0.25
0.05
3.5
0.6
0.2
1.5
0.25
0.06
0.6 15.9
0.1 1.13
0.03 1.07
* Company office.
more miles per gallon on regular gasoline. Consequently, motor gasoline demands leveled quickly. The future now calls for only a 2.5% a year increase, compared to a 6 to 7% a year growth a few years ago. The net effect of the gasoline change was to make more aromatics capacity available for other uses. Hence, petroleum firms were poised for a deeper plunge into the chemical business. Developments in 1959 opened the door to the rapid expansion of aromatics capacity. Among them: • Demand
Toluene
chemicals
0.03
Source: C
