Abstract

Process Economics Program Report 267

PROPYLENE PRODUCTION
(October 2008)

Propylene has traditionally been recovered as by-products of petroleum and petrochemical

operations. On-purpose production of propylene has become more attractive as less costly
supplies from traditional sources become inadequate to meet projected demand. This report
covers two on-purpose propylene production technologies and economics - UOP licensed Oleflex

[email protected]
propane dehydrogenation process and KBR licensed Superflex process - and examines the
driving forces behind these on-purpose technologies.
For propylene production from propane, the primary economic incentive increases with
increasing price differential between the feed and the product. Catalytic processes such as
Superflex that convert low value hydrocarbon streams with a high degree of selectivity to
propylene are likely to find a reasonable market in business and economic environments that
cannot justify a grass roots steam cracker or where FCC naphtha is in surplus relative to the
needs of the refinery’s gasoline pool.
Supply/demand balances for propylene are also included. This report provides chemical
producers and refiners an update on propane dehydrogenation and other on-purpose propylene
production technologies, economics, and market dynamics to identify future opportunities.

© SRI Consulting PEP Report 267

[email protected]
 SRIC agrees to assign professionally qualified personnel to the preparation of the
Process Economics Program’s reports and will perform the work in conformance with generally
accepted professional standards. No other warranties expressed or implied are made. Because
the reports are of an advisory nature, neither SRIC nor its employees will assume any liability for

[email protected]
the special or consequential damages arising from the Client’s use of the results contained in the
reports. The Client agrees to indemnify, defend, and hold SRIC, its officers, and employees
harmless from any liability to any third party resulting directly or indirectly from the Client’s use of
the reports or other deliverables produced by SRIC pursuant to this agreement

For detailed marketing data and information, the reader is referred to one of the SRI
Consulting programs specializing in marketing research. THE CHEMICAL ECONOMICS
HANDBOOK Program covers most major chemicals and chemical products produced in the
United States and the WORLD PETROCHEMICALS PROGRAM covers major hydrocarbons and
their derivatives on a worldwide basis. In addition the SRIC DIRECTORY OF CHEMICAL
PRODUCERS services provide detailed lists of chemical producers by company, product, and
plant for the United States, Western Europe, Canada, and East Asia, South America and Mexico.
 CONTENTS

GLOSSARY........................................................................................................................ xiii

1 INTRODUCTION ........................................................................................................ 1-1

2 SUMMARY ................................................................................................................. 2-1

COMMERICAL ASPECTS ......................................................................................... 2-1

TECHNOLOGY ASPECTS......................................................................................... 2-3

Superflex Process ...................................................................................................... 2-3

UOP Oleflex Propane Dehydrogenation Process ...................................................... 2-3

ECONOMIC ASPECTS .............................................................................................. 2-4

[email protected]
Propylene by the Superflex Process .......................................................................... 2-5

Propylene by the Oleflex Process .............................................................................. 2-5

CONCLUSIONS ......................................................................................................... 2-6

3 PROPYLENE INDUSTRY .......................................................................................... 3-1

CHARACTERISTICS OF THE PROPYLENE INDUSTRY......................................... 3-1

PROPYLENE CHEMICAL USES ............................................................................... 3-2

Polypropylene ............................................................................................................. 3-3

Acrylonitrile ................................................................................................................. 3-4

Propylene Oxide ......................................................................................................... 3-4

Oxo Alcohols............................................................................................................... 3-5

Cumene ...................................................................................................................... 3-6

Acrylic Acid and Esters............................................................................................... 3-6

Isopropyl Alcohol (IPA) ............................................................................................... 3-7

Polygas Chemicals (Nonene, Dodecene, Heptenes)................................................. 3-8

Other........................................................................................................................... 3-8

Propylene Grades for Chemical Manufacture ............................................................ 3-9

NONCHEMICAL USES .............................................................................................. 3-11

© SRI Consulting iii PEP Report 267

 CONTENTS (Continued)

Gasoline Components ................................................................................................ 3-11

Gasoline Alkylate........................................................................................................ 3-12

Polymer Gasoline (Polygas) ....................................................................................... 3-12

Dimersol...................................................................................................................... 3-12

Fuels ........................................................................................................................... 3-12

PROPYLENE SUPPLY AND DEMAND ..................................................................... 3-12

World .......................................................................................................................... 3-12

United States .............................................................................................................. 3-19

Western Europe.......................................................................................................... 3-22

[email protected]
China .......................................................................................................................... 3-23

PRICES ...................................................................................................................... 3-24

TRANSPORTATION AND STORAGE ....................................................................... 3-25

ENVIRONMENTAL ISSUES ...................................................................................... 3-25

4 TECHNOLOGY REVIEW OF PROPYLENE PRODUCTION .................................... 4-1

PROPYLENE FROM STEAM CRACKERS ............................................................... 4-2

Commercial Steam Cracking Processes.................................................................... 4-5

Linde AG............................................................................................................... 4-5
KBR ...................................................................................................................... 4-5
Lummus Technology (formerly ABB Lummus Global)......................................... 4-6
Shaw Energy & Chemicals (formerly Stone & Webster)...................................... 4-6
Technip ................................................................................................................. 4-7

Steam Cracking Propylene Yields.............................................................................. 4-7

Steam Cracking Feedstock Flexibility ........................................................................ 4-10

PROPYLENE FROM PETROLEUM REFINING ........................................................ 4-11

Conventional Fluid Catalytic Cracking........................................................................ 4-11

Propylene from Conventional FCC Units ................................................................... 4-14

Maximize FCC Propylene........................................................................................... 4-15

© SRI Consulting iv PEP Report 267

 CONTENTS (Continued)

Feedstocks and Cracking Severity....................................................................... 4-15

Catalysts and Additives ........................................................................................ 4-16

Deep Catalytic Cracking (DCC).................................................................................. 4-19

Deep Catalytic Cracking (DCC) Integration ............................................................... 4-22

Refinery Propylene from Thermal Processes ............................................................ 4-23

Nonchemical Uses of Refinery Propylene.................................................................. 4-23

Alkylation .............................................................................................................. 4-23
Propylene Oligomerization ................................................................................... 4-24
Fuel Uses ............................................................................................................. 4-24

Recovery of Refinery Propylene for Chemical Uses .................................................. 4-25

[email protected]
DIRECT PRODUCTION OF PROPYLENE................................................................ 4-27

Propylene via Propane Dehydrogenation (PDH) ....................................................... 4-27

UOP Oleflex Process............................................................................................ 4-28
CATOFIN Process................................................................................................ 4-29
Krupp Uhde STAR Process.................................................................................. 4-31
Linde/Statoil/Borealis PDH Process ..................................................................... 4-32
FBD-3 Process ..................................................................................................... 4-32

Propylene by Metathesis ............................................................................................ 4-33

Lummus Olefin Conversion Technology (OCT) ................................................... 4-34
Axens Meta-4 ....................................................................................................... 4-36

EMERGING PROPYLENE ROUTES......................................................................... 4-37

SUPERFLEX Process ................................................................................................ 4-37

Methanol to Olefins (MTO) ......................................................................................... 4-38

Methanol to Propylene (MTP)..................................................................................... 4-39

The Total Petrochemicals/UOP Olefin Cracking Process (OCP)............................... 4-40

Mobil Olefins Interconversion (MOI)........................................................................... 4-41

Propylur Process ........................................................................................................ 4-42

High-Severity FCC (HS-FCC) .................................................................................... 4-42

© SRI Consulting v PEP Report 267

 CONTENTS (Continued)

PetroFCC (UOP) ........................................................................................................ 4-43

Catalytic Pyrolyiss Process (CPP) ............................................................................. 4-44

The Advanced Catalytic Olefins (ACO) Process........................................................ 4-45

Indmax Fluid Catalytic Cracking (I-FCC Process)...................................................... 4-46

Lummus' Selective Component Cracking Process (SCC) ......................................... 4-47

MAXOFIN Process ..................................................................................................... 4-47

5 PROPYLENE BY THE SUPERFLEX PROCESS...................................................... 5-1

HISTORICAL BACKGROUND ................................................................................... 5-1

PROCESS REVIEW................................................................................................... 5-5

[email protected]
Chemistry.................................................................................................................... 5-6

Catalyst....................................................................................................................... 5-7

Fluidized Reactor System........................................................................................... 5-9

Operating Conditions.................................................................................................. 5-10

Low Pressure Olefin Recovery Process..................................................................... 5-11

Feedstock and Products............................................................................................. 5-11

PROCESS DESCRIPTION ........................................................................................ 5-17

Section 100 - Reaction and Regeneration ................................................................. 5-18

Section 200 - Compression and Treating................................................................... 5-19

Section 300 - Fractionation......................................................................................... 5-20

PROCESS DISCUSSION........................................................................................... 5-33

Section 100 - Reactor - Regenerator ......................................................................... 5-33

Section 200 - Compression and Treating................................................................... 5-34

Section 300 - Fractionation......................................................................................... 5-34

COST ESTIMATES .................................................................................................... 5-34

Capital Cost ................................................................................................................ 5-34

Production Cost .......................................................................................................... 5-38

© SRI Consulting vi PEP Report 267

 CONTENTS (Continued)

Profitability .................................................................................................................. 5-38

6 PROPYLENE FROM PROPANE BY THE OLEFLEX PROCESS ............................ 6-1

HISTORICAL BACKGROUND ................................................................................... 6-1

PROCESS REVIEW................................................................................................... 6-3

Process Chemistry ..................................................................................................... 6-4

Role of Catalysts and Supports .................................................................................. 6-5

Catalyst Stability and Regeneration ........................................................................... 6-6

Heat of Reaction......................................................................................................... 6-7

[email protected]
PROCESS DESCRIPTION ........................................................................................ 6-7

Section 100 - Reaction and Regeneration ................................................................. 6-8

Section 200 - Product Recovery................................................................................. 6-10

Hydrogen Recovery.............................................................................................. 6-10
Product Recovery ................................................................................................. 6-11

PROCESS DISCUSSION........................................................................................... 6-14

Feedstocks and Products ........................................................................................... 6-14

Catalyst....................................................................................................................... 6-15

Section 100 - Reactor - Regenerator ......................................................................... 6-16

Section 200 - Product Recovery................................................................................. 6-17

Material of Construction.............................................................................................. 6-17

Environmental and Safety Aspects ............................................................................ 6-17

Regeneration Off-Gas .......................................................................................... 6-17
Catalyst................................................................................................................. 6-17

COST ESTIMATES .................................................................................................... 6-26

Capital Cost ................................................................................................................ 6-26

Production Cost .......................................................................................................... 6-26

Profitability .................................................................................................................. 6-27

© SRI Consulting vii PEP Report 267

 CONTENTS (Concluded)

APPENDIX A: PATENT SUMMARY TABLES.................................................................. A-1

APPENDIX B: DESIGN AND COST BASES .................................................................... B-1

APPENDIX C: CITED REFERENCES............................................................................... C-1

APPENDIX D: CONFIDENCE RATINGS .......................................................................... D-1

APPENDIX E: PROCESS FLOW DIAGRAM.................................................................... E-1

[email protected]

© SRI Consulting viii PEP Report 267

 FIGURES

3.1 U.S Polymer-Grade Propylene-to-Ethylene Production and Price Ratios ............ 3-25

4.1 Typical FCC Reactor-Regenerator System........................................................... 4-13

4.2 Typical FCC Feed & Product Streams .................................................................. 4-25

4.3 Oleflex Process for Propylene Production ............................................................ 4-29

4.4 Catofin Process for Propylene Production ............................................................ 4-31

4.5 OCT Process for Propylene Production ................................................................ 4-35

4.6 OCT Commerical Application Example ................................................................. 4-36

4.7 Axens Meta-4 Process .......................................................................................... 4-37

4.8 Schematic of 30 BPD HS-FCC Demo Unit ........................................................... 4-43

[email protected]
4.9 ACO Process Flow Scheme.................................................................................. 4-46

4.10 Maxofin FCC Scheme ........................................................................................... 4-48

5.1 Sasol SUPERFLEX Timeline ................................................................................ 5-4

5.2 Sasol Project Turbo: SUPERFLEX Unit & Interfaces............................................ 5-5

5.3 Butene Conversion Via Bimolecular Reaction ...................................................... 5-7

5.4 Mechanism for Phosphorous Bonding to the Zeolite Framework ......................... 5-8

5.5 SUPERFLEX Process

Flow Diagram ........................................................................................................ E-3

6.1 Reactions by Platinum and Acid Sites in Light Paraffin Dehydrogenation with
Unmodified Catalyst .............................................................................................. 6-5

6.2 Temperatures Required to Achieve 10 and 40% Conversion of

nC2-C15 at 1 atm .................................................................................................... 6-7

6.3 Propylene from Propane by the Oleflex Process

Flow Diagram ........................................................................................................ E-9

6.4 Oleflex Regeneration Section................................................................................ 6-10

6.5 Partial Condensation Cryogenic Process.............................................................. 6-11

6.6 Schematic of an UOP MTBE Complex.................................................................. 6-15

© SRI Consulting ix PEP Report 267

 TABLES

2.1 2007 World Supply/Demand for Propylene in Chemical Uses.............................. 2-2

2.2 World Consumption of Propylene in Chemical in Chemical Applications-2007.... 2-2

2.3 Economics for Production of Propylene ................................................................ 2-6

3.1 World Propylene Consumption by End Use, 2007-2012 ...................................... 3-3

3.2 Propylene Grades for Chemical Manufacture ....................................................... 3-10

3.3 World Proylene Supply and Demand, 2007-2012................................................. 3-13

3.4 World Producers of Propylene from Propane Dehydrogenation........................... 3-13

3.5 World Producers of Propylene from Ethylene/Butylene Metathesis ..................... 3-16

3.6 World Capacity of Propylene by Region, 2007-2012 ............................................ 3-18

[email protected]
3.7 Five Largest U.S. Producers of Propylene by Grade ............................................ 3-19

3.8 Maximum U.S. Availability of Propylene by Source .............................................. 3-20

3.9 U.S. Production of Propylene for Chemical Use ................................................... 3-21

3.10 U.S. Coproduct Propylene-to-Ethylene Production Ratio ..................................... 3-22

3.11 U.S. Market Prices for Propylene .......................................................................... 3-24

4.1 Yields of Coproduct Propylene from Steam Cracking........................................... 4-8

4.2 Naphtha Cracking Under Mild and High Severity Operations............................... 4-8

4.3 FCC Operating Modes........................................................................................... 4-14

4.4 LPG Olefins Yield for 3% Level of BASF's Maximum Olefins Additive ................. 4-19

4.5 Commercial DCC Units ......................................................................................... 4-20

4.6 Typical DCC Operating Conditions ....................................................................... 4-21

4.7 DCC Light Olefin Yields......................................................................................... 4-21

4.8 DCC, FCC, and Steam Cracking Products ........................................................... 4-22

4.9 Typical Propylene Quality Specifications .............................................................. 4-26

4.10 PetroFCC Yields from VGO .................................................................................. 4-44

4.11 Maxofin Process Yields ......................................................................................... 4-49

5.1 Sasol SUPERFLEX Timeline ................................................................................ 5-8

5.2 SUPERFLEX and FCC Operating Conditions....................................................... 5-10

© SRI Consulting x PEP Report 267

 TABLES (Continued)

5.3 Typical Cracked Naphtha Feedstock Characterization......................................... 5-12

5.4 Estimated Hydrocarbon SUPERFLEX Reactor Effluent Yields from Cracked

Naphtha ................................................................................................................. 5-12

5.5 Estimated SUPERFLEX Overall Material Balance for Cracked Naphtha ............. 5-13

5.6 Typical Ultimate SUPERFLEX Yields from Typical Feedstocks ........................... 5-14

5.7 Typical Polymer Grade Propylene Specifications ................................................. 5-15

5.8 Polymer Grade Ethylene Specifications ................................................................ 5-16

5.9 SUPERFLEX Process for Light Olefins

Design Bases and Assumptions............................................................................ 5-21

5.10 FCC Light Naphtha (Fresh Feedstock) Characterization...................................... 5-23

[email protected]
5.11 SUPERFLEX Process for Light Olefins
Stream Flows......................................................................................................... 5-24

5.12 SUPERFLEX Process

Major Equipment ................................................................................................... 5-29

5.13 SUPERFLEX Process

Utilities Summary................................................................................................... 5-32

5.14 SUPERFLEX Process

Total Capital Investment........................................................................................ 5-36

5.15 SUPERFLEX Process

Capital Investment by Section ............................................................................... 5-37

5.16 SUPERFLEX Process

Production Costs ................................................................................................... 5-40

6.1 Propylene from Propane by Oleflex Dehydrogenation Process

Design Bases and Assumptions............................................................................ 6-13

6.2 Performances of Oleflex Dehydrogenation Process ............................................. 6-15

6.3 UOP Oleflex Catalyst Development ...................................................................... 6-16

6.4 Propylene from Propane by Oleflex Dehydrogenation Process

Stream Flow .......................................................................................................... 6-18

6.5 Propylene from Propane by Oleflex Dehydrogenation Process

Major Equipment ................................................................................................... 6-20

6.6 Propylene from Propane by Oleflex Dehydrogenation Process

Total Capital Investment........................................................................................ 6-22

© SRI Consulting xi PEP Report 267

 TABLES (Concluded)

6.7 Propylene from Propane by Oleflex Dehydrogenation Process

Capital Investment by Section ............................................................................... 6-23

6.8 Propylene from Propane by Oleflex Dehydrogenation Process

Production Costs ................................................................................................... 6-24

A.1 Catalytic Cracking Catalyst and Process

Patent Summary .................................................................................................... A-3

A.2 Propylene from Propane by Dehydrogenation

Patent Summary .................................................................................................... A-15

A.3 Propylene by Metathesis

Patent Summary .................................................................................................... A-20

[email protected]

© SRI Consulting xii PEP Report 267

 GLOSSARY

Symbol or Term Definition

304SS Grade 304 stainless steel

316L SS Grade 316L stainless steel

ABD Average Bulk Density

AGO Atmospheric gasoil

Alkylate A gasoline blending component composed of isobutane and propylene or

butylene.

ANSI American National Standards Institute

APC Air Products & Chemicals, Inc.

[email protected]
API American Petroleum Institute

APM 22% Cr, 6.0% Al alloy

ARA Amsterdam Rotterdam Antwerp

ASTM American Society for Testing Materials

Barrel A volumetric unit of measure for crude oil and petroleum products. 1 barrel
equals 42 US gallons

bbl barrels of petroleum

BDO 1,4-butane diol

BFW Boiler feedwater

Bill of Lading Documentation associated with a specific cargo of oil and is signed by the
captain of the ship and the contract supplier

Blendstock A component combined with other materials to produce a finished refined

product.

BLI battery limits investment

bn billions

BP British Petroleum PLC

bpd barrels of petroleum per day

© SRI Consulting xiii PEP Report 267

 GLOSSARY (Continued)

Symbol or Term Definition

bpsd barrels per stream day

BTU British Thermal Unit

BTX Benzene, toluene + xylene

Cat gasoline (cat naphtha) A gasoline blending component made in a cat cracker.

Catfeed Feedstock to a catalytic cracker, usually vacuum gasoil.

CB & I Chicago Bridge & Iron Company N.V.

CCR Continuous catalyst regeneration

Cetane A paraffinic hydrocarbon used hydrocarbon used as an additive in diesel

[email protected]
fuel.

cfd standard cubic feed per day flow rate

CO Carbon monoxide

CO2 Carbon dioxide

Cracked fuel Residue remaining after a straight run fuel has been processed by
enhanced refining methods such as cat cracking

CST Centistokes - A way of measuring viscosity similar to seconds.

CTW Cooling tower water

CUM Cubic meters

degC Degree Celsius

degF Degree Fahrenheit

DCC Deep catalytic cracking

EIA United States Energy Information Administration

EPA United States Environmental Protection Agency

EPC Engineer, procure & construct

© SRI Consulting xiv PEP Report 267

 GLOSSARY (Continued)

Symbol or Term Definition

ETBE Ethyl tertiary-butyl ether

EU European Union

FBP Final boiling point

FCC Fluid catalytic cracker or cat unit.

FCCU Fluid catalytic cracking unit.

FEED Front end engineering design

FF Fresh Feed

FOB Free on board

[email protected]
FRN Full range naphtha

F-T Fischer-Tropsch

G&A general and administrative costs

G/L Grams per liter

gal gallon

Gasoil An intermediate distillate product used for diesel fuel & heating fuel

GC gas chromatograph instrument

GDP gross domestic product

GHSV Gas Hourly Space Velocity

GTL Gas to liquids

H2 Hydrogen

HHV Higher heating value

HPS High-pressure steam

HS High sulfur content

HSFO Heavy sulfur fuel oil

© SRI Consulting xv PEP Report 267

 GLOSSARY (Continued)

Symbol or Term Definition

IBP Initial boiling point

IOC Indian Oil Corp

Isomerate A gasoline blendstock made in an isomerization unit

k thousands

KBR KBR, Inc.

KO Knock out (drum)

KT Kilo tons

kty kilo tons per year

[email protected]
LHSV Liquid Hourly Space Velocity

LHV Lower heating value

Light products, The group of petroleum products with lower boiling temperatures including
light ends gasolines and distillate fuels

LNG Liquefied natural gas

LPG Liquefied petroleum gas

LPS Low-pressure steam

LS Low sulfur

LSD low sulfur diesel fuel

LSFO Low sulfur fuel oil

LSTK Lump sum turn key

LSWR Low sulfur waxy residual fuel oil

LTFT low temperature Fischer-Tropsch

LVN Light virgin naphtha

© SRI Consulting xvi PEP Report 267

 GLOSSARY (Continued)

Symbol or Term Definition

MM millions

MMA methyl methacrylate

MON Motor octane number

MPS Medium-pressure steam

MT metric ton

MTBE Methyl tertiary butyl ether

MTO Methanol to olefins

MTP Methanol to Propylene

[email protected]
MW megawatts

MWH megawatt hours

N/A Not applicable

N+A Naphthenes plus aromatics

Naphtha Straight-run gasoline fractions. Used as a feedstock for reforming and as a

petrochemical feedstock

Naphthenic A high naphthenes content

NGL natural gas liquids

NOR Notice of readiness

NOX Nitrogen oxides

NPH Naphtha

NPRA Natinoal Petrochemicals & Refiners Association

O&M operations and maintenance cost

Octane number A measure of the detonation quality of gasoline. The higher the octane
number, the higher the resistance to engine knock

© SRI Consulting xvii PEP Report 267

 GLOSSARY (Continued)

Symbol or Term Definition

OSI offsites investment

Oxygenate Oxygen-containing blend stocks favored for their octane and their clean
burning quality.

Paraffinic A high paraffins content

PCT Percent

PDH Propane Dehydrogenation

PIC Process Instrumentation Controls

POX partial oxidation

[email protected]
PPB Parts per billion (weight)

ppm parts per million concentration

PPMV Parts per million by volume

PPMW Parts per million by weight

PSA Pressure swing adsorption

Pygas A naphtha-range product with a high aromatics content used either for

QP Qatar Petroleum

R+M/2 Research Octane Number plus Motor Octane Number divided by 2. A

gasoline octane

REC Reactor Effluent Compressor

Reformate A high-aromatics, high-octane product made in a reformer and used to

blend motor gasoline or aviation gasoline

Resid Residual fuel oil

RFG Reformulated gasoline

ROI Return on investment

RON Research octane number

© SRI Consulting xviii PEP Report 267

 GLOSSARY (Concluded)

Symbol or Term Definition

RVP Reid vapor pressure, a measure of a gasoline's volatility.

S&W Stone & Webster (Shaw Group)

SASOL South African Synthetic Oil, Limited

scf standard cubic feed per day flow rate

scfm standard cubic feet per minute

SG Specific gravity

SHP Selective Hydrogenation Process

Straight-Run Refinery fraction derived directly from a crude oil atmospheric or vacuum

[email protected]
pipestill

TAME Tertiary-amyl methyl ether

TLE Transferline heat exchanger

UC United Catalysts, Inc.

US DOE US Dept of Energy

USD US dollar

USGC United States Gulf Coast

USWC United States West Coast

VGO Vacuum gas oil

WRN Wide range naphtha

WHSV Weight Hourly Space Velocity

XOM Exxon Mobil

XTM 35% Cr, 48% Ni, 1.5% Si alloy

© SRI Consulting xix PEP Report 267

 1 INTRODUCTION

Propylene is one of the largest volume petrochemicals produced. In 2007, worldwide

production of propylene for chemical uses amounted to 73.5 million metric tons and was valued
roughly at $84 billion, up 5% from a year earlier. Consumption of propylene worldwide is
expected to grow at an average annual rate of about 4.5% over the five-year period from 2007 to
2012.
However, the propylene industry is unusual because propylene is produced primarily as a
by-product. More than 90% of the propylene produced throughout the world comes either from
ethylene plants (steam crackers) or petroleum refining operations (primarily catalytic crackers).
The yield of propylene in ethylene plants depends heavily on the steam cracker feedstock and
can range from as low as 2-3 pounds per hundred pounds of ethylene for ethane crackers to as

[email protected]
high as 50-60 pounds for naphtha or gas oil crackers. Similarly in the petroleum refining sector,
the yield of propylene in catalytic crackers (FCC) is typically in the 3-5 wt% range, but can be as
high as 15-20 wt% depending on catalyst, FCC feedstock and cracking conditions.
Current worldwide propylene production capacity is almost 84 million metric tons per year.
By the year 2012 the production capacity for propylene is expected to exceed 110 metric million
tons. Although the majority of new capacity will come from ethylene coproduct streams resulting
from the expansion of existing plants and from grassroots mixed feed and naphtha-fed ethylene
units that will start up worldwide during 2007-2012, a harbinger of near future sourcing trends is
the nearly 25% of capacity growth over the next five years that will come from “on-purpose”
routes such as propane dehydrogenation process and Superflex process, a technology for the
production of propylene from low value feed streams.
The overall driving force of the “on-purpose” propylene production routes relies on the
nature of the ethylene market. Production of propylene from steam crackers in the overall
production mix is expected to fall, as plants are optimized to produce ethylene. There are only
limited opportunities to increase propylene production from refinery fluidized catalytic crackers
(FCC), which are optimized to produce fuels.
The UOP Oleflex process is a catalytic dehydrogenation technology for the production of
light olefins from their corresponding paraffins. One specific application of this technology
produces propylene from propane. The UOP Oleflex process was first commercialized in 1990,
and by 2004 more than 1,250,000 metric tons per year of propylene were produced from
commercial Oleflex units.
The Superflex process is a fluidized catalytic cracking technology that converts low-value
streams such as mixed butenes, pentenes in ethylene plants and FCC light gasoline and coker
gasoline streams in refineries with a high degree of selectivity to light olefins. It is licensed by
KBR and is based on ARCO Chemical Company's developments and patents. This technology
can be used for stand-alone production units or integrated into existing olefins plants. The first
commercial Superflex unit is currently under start-up for SASOL in South Africa.
In this report, we examine the supply, demand and economic driving forces that will affect
the commercial propylene production in Section 3. In Section 4, we present a brief technology

© SRI Consulting 1-1 PEP Report 267

review of conventional and emerging propylene production routes. Although the amount of
propylene produced by direct routes will remain small compared to the by-product propylene
produced in ethylene plants and refineries, these direct routes could find certain niche
applications. The process design and production economics of a propane dehydrogenation plant
based on the UOP Oleflex process technology are presented in Section 5. We evaluate the
process design and economics for propylene production via KBR licensed Superflex process
technology in Section 6. Pertinent patents on catalytic cracking, propane dehydrogenation and
metathesis processes are summarized in Appendix A.

[email protected]

© SRI Consulting 1-2 PEP Report 267

 2 SUMMARY

This report provides an overview of both current and emerging commercial propylene
production routes. The report then develops process economics for two on-purpose propylene
production technologies: the UOP Oleflex propane dehydrogenation process and the Superflex
process licensed by KBR. Major driving forces behind these on-purpose technologies are also
presented.

COMMERICAL ASPECTS
Propylene is one of the largest volume petrochemicals produced. In 2007, worldwide
production of propylene for chemical uses amounted to 73.5 million metric tons (Table 2.1) and

[email protected]
was valued roughly at $84 billion, up 5% from a year earlier. Consumption of propylene
worldwide is expected to grow at an average annual rate of about 4.5% over the five-year period
from 2007 to 2012.
As one of the main building blocks for petrochemicals and for clean fuel alkylate blends,
propylene is used in the production of a wide variety of petrochemical products such as
polypropylene, acrylonitrile, cumene, oxo-alcohols, propylene oxide, acrylic acid, isopropyl
alcohol, and polygas chemicals (Table 2.2). Polypropylene accounts for about half of the world
propylene consumption, which consequently drives the demand. Other uses of propylene within a
refinery include alkylation, catalytic polymerization, and dimerization for the production of high-
octane gasoline blends. In general, propylene is supplied in three separate quality grades:
refinery, chemical, and polymer.
The two major commercial sources of propylene are ethylene steam cracker plants and
refinery fluid catalytic cracking (FCC). Due to projected growth in demand, other propylene
production routes have become necessary. These are so called “on-purpose” technologies that
include propane dehydrogenation, olefin metathesis and other emerging processes.
Because of its by-product nature, propylene is highly dependent on the state of the ethylene
industry and refinery plant economics. Propylene availability from ethylene plants is dictated by
the supply/demand balance for ethylene, feedstock slate, and cracker operating conditions.
Propylene availability from refineries depends on whether there is an economic incentive to re-
cover and sell propylene to the chemical markets or to consume it internally for gasoline alkylate.
The percentage of propylene obtained from the various sources varies throughout the world.
In the United States, a greater proportion of propylene (more than 50%) must be obtained from
refineries. In Western Europe and Japan, about 66-70% of the propylene capacity is based on
ethylene coproduct streams. Propylene will be manufactured in the Middle East predominantly as
an ethylene coproduct and incrementally by propane dehydrogenation. Other than the two major
commercial sources, deep catalytic cracking (DCC) of vacuum gas oil could be a rapidly growing
source of propylene, particularly in China.

© SRI Consulting 2-1 PEP Report 267

 Table 2.1
2007 WORLD SUPPLY/DEMAND FOR PROPYLENE IN CHEMICAL USES
(THOUSANDS OF METRIC TONS)

Central Central Africa Other

and and and Asia
North South Western Eastern Middle and
America America Europe Europe East Japan China Oceania Total
Capacity (year-end) 22,045 3,286 17,746 4,465 4,902 6,499 10,475 14,617 84,034
Production 18,171 2,587 15,541 3,346 4,295 6,358 10,060 13,131 73,489
Operating Rate
82.4% 79% 88% 75% 88% 98% 96% 90% 87%
(percent)
Net Exports 575 –111 –565 227 293 551 –700 –271 0
Apparent
17,596 2,698 16,106 3,119 4,002 5,807 10,760 13,401 73,489
Consumption
Domestic Demand 17,721 2,698 16,109 3,120 3,852 5,807 10,748 13,438 73,493

[email protected]
Source: SRI Consulting

Table 2.2
WORLD CONSUMPTION OF PROPYLENE IN CHEMICAL APPLICATIONS—2007
(MILLIONS OF METRIC TONS)

Central Central Africa Other

and and and Asia
North South Western Eastern Middle and
America America Europe Europe East Japan China Oceania Totala
Polypropylene 9.1 2.0 9.4 1.9 3.4 3.1 7.1 9.5 45.5

Acrylonitrile 1.5 0.1 0.9 0.3 0.1 0.8 1.2 1.1 6.0

Propylene Oxide 1.7 0.2 1.8 0.1 0.0 0.4 0.7 0.4 5.2

Oxo Alcohols 0.9 0.1 0.9 0.3 0.3 0.4 0.7 0.9 4.6

Cumene 1.5 0.1 1.2 0.2 0.0 0.5 0.3 0.8 4.5

Acrylic Acid 1.0 0.0 0.6 neg 0.1 0.2 0.4 0.4 2.8

Isopropanol 0.7 neg 0.4 neg 0.0 0.1 0.1 0.2 1.6

Polygas Chemicals 0.8 0.1 0.3 neg neg neg 0.0 neg 1.2

Otherb 0.5 0.1 0.7 0.2 neg 0.2 0.3 0.1 2.0

Totala 17.7 2.7 16.1 3.1 3.9 5.8 10.7 13.4 73.5
a. Totals may not equal the sums of the data because of rounding.
b. Includes acrylic acid, allyl chloride, ethylene-propylene elastomers and miscellaneous uses.

Sources: SRI Consulting

© SRI Consulting 2-2 PEP Report 267