PETROCHEMICAL AROMATICS FROM LIQUID HYDROCARBONS A TECHNOECONOMIC ASSESSMENT

K.M.WAGIALLA DEPARTMENT OF CHEMICAL ENGINEERING KING SAUD UNIVERSITY

7TH SAUDI ENGINEERING CONFERENCE COLLEGE OF ENGINEERING KING SAUD UNIVERSITY RIYADH NOVEMBER, 2007

ABSTRACT This paper investigates some technical and economic aspects regarding liquid feedstocks processing in the Kingdom of Saudi Arabia. A review of present and potential petrochemical feedstocks is undertaken. Several commercial and potential processing routes are examined. A conceptual petrochemical complex comprising 12 down stream petrochemical derivative plants in the Kingdom is then economically evaluated. The complex cracks naphtha and produces ethylene, LDPE, LLDPE, HDPE, propylene, propylene glycol, ethylene glycol, benzene, styrene, and polystyrene. Realistic capital and operating cost data were obtained from international consultative sources and then adjusted for local Saudi conditions. A cash flow analysis was carried out over a 20 year period taking into account the effect of inflation. The complex has an ethylene annual production capacity of 680,400 tons. The total capital investment is estimated at 5,382.46 million dollars. 1. INTRODUCTION The Kingdom of Saudi Arabia is expected to become the worlds largest producer and exporter of petrochemicals and plastics in the near future. The Kingdom has been forecast to produce 100 million tons per year of petrochemicals by 2015 [1]. Both the public and private industrial sectors are expanding their petrochemical operations in order to diversify their economies and strengthen their industries. They enjoy access to abundant and competitively priced feedstocks. Saudi Arabias proven natural gas reserves, including both associated and non-associated gas, are estimated at 230 trillion standard cubic feet as of January 2003. More than 60% of these reserves (i.e. about 140 trillion cubic feet) consist of associated gas. According to governmental and industrial sources, The Kingdom has more than 530 trillion standard cubic feet of undiscovered reserves as well as 40 billion barrels of condensate. The industrial sector in the Kingdom can claim access to modern production facilities and first class export infrastructures and logistics which are continually being upgraded and maintained. The Kingdom is not only endowed with abundant hydrocarbon resources it is also becoming the centre of the worlds petrochemical production because it offers: (1) Proactive policies committed to rapid industrialization. (2) Well-built infrastructures for industries to operate and thrive. (3) Financial incentives in the form of low cost project finance. (4) Tax incentives for foreign partners. (5) A well-trained work force both indigenous and expatriate. The growth of petrochemical production in the Kingdom in the past two decades was phenomenal. The continued expansion of basic petrochemicals will propel SABIC and the Kingdom as a top producer in the key products of polyethylene, ethylene glycol, methanol and styrene. Overall, SABIC is the worlds 4th largest producer of polymers. However, most of the petrochemical industries in the Kingdom at the present time are natural gasbased. The aim of this study is to explore the techno-economic feasibility of liquid-based petrochemical processing in the Kingdom. 2. PETROCHEMICAL FEEDSTOCKS OVERVIEW: 2.1 Natural Gas Liquids Natural gas liquids (NGLs) are composed mainly of ethane, propane and normal butanes. Isobutane is not typically cracked for petrochemical production. Downstream processing is based on both normal and cryogenic distillation. The cracked gas from gaseous feedstocks (ethane, propane, butane) is fed into the transfer-line-exchanger (TLE) followed by direct quench with water, and multistage compression, typically

in four to six stages with intermediate cooling. Before the last compression stages, acid gas (mainly hydrogen sulfide and carbon dioxide) is removed. After the last compressor stage, water removal takes place by chilling and drying over zeolites. Subsequent fractionation of the cracked gas is based on cryogenic (temperature less than 273 K) and conventional distillation under pressure (15 35 bar). Cryogenic distillation requires a lot of energy due to the need for a refrigeration system. 2.2 Naphtha Naphtha is obtained in petroleum refineries as one of the intermediate products from the distillation of crude oil. It is a liquid intermediate between the light gases in the crude oil and the heavier liquid kerosene. Naphthas are volatile, flammable and have a specific gravity of 0.7. The naphthas are distinguished by density and PONA, PIONA or PIANO analysis (i.e. Paraffin, Isoparaffin, Olefins, Naphthenes and Aromatics contents). The main application of paraffinic naphthas is as a feedstock in the petrochemical production of olefins. This type of naphtha is also referred to as light distillate feedstock (LDF), straight run gasoline (SRG), or light virgin naphtha (LVN). The heavier types are usually richer in naphthenes and aromatics and are sometimes referred to as straight run benzene (SRB) or heavy virgin naphtha (HVN). These denser types are also used in the petrochemical industry but more are used as a feedstock for refinery catalytic reformers where the lower octane naphtha is converted to a higher octane product called reformate which is a precursor for motor gasoline production. This common dependence of gasoline and petrochemicals on the same feedstock (naphtha), explains the effect of the market demand and price changes of gasoline on the production economics and prices of petrochemicals (specially aromatics). Naphthas are also used as an unprocessed component in gasoline production, as industrial solvents, as an oil painting medium, and as an ingredient in shoe polish. Naphthas are also commonly classified as full range naphtha (FRN), Medium range naphtha (MRN) and light virgin naphtha (LVN). Full rang naphtha is a hydrocarbon mixture that boils in the gasoline boiling range (i.e. C5-430oF boiling range). Naphtha composition varies with source and refinery operating conditions. Table (2.1) gives a typical naphtha composition [1]. Table (2.1): Typical naphtha composition Component C3, C4 C5 C6 C7 C8 C9 C10 C15 Total n-Alkanes Iso-Alkanes Naphthenes Aromatics Total Analysis (% of total) 8.0 22.4 19.9 17.2 12.4 11.5 8.6 100.0 30.5 39.9 17.7 11.9 100.0

2.3 Gas Oil Gas Oils are classified as either atmospheric or vacuum according to their origin, either from an atmospheric crude tower or a crude bottoms vacuum column. Atmospheric Gas Oil boils in the range 400800oF; vacuum gas oil boils at 800-1000oF and higher. Vacuum gas oils are not usually cracked commercially. However, hydrotreated vacuum oils can be commercially exploited as cracking feedstocks for olefins and aromatics production. Figure (2.1) shows a simplified process flow diagram for producing ethylene via liquid (e.g. naphtha or gas oil) cracking. Downstream processing of cracked gas from liquid feedstocks (naphtha and gas oil) is somewhat more complex than processing of gaseous feedstocks because heavier components are present. In this case a primary fractionator is installed upstream the compressor stages in order to remove fuel oil, which is produced in considerable amounts when cracking naphtha or gas oil. This fuel is partly used in the direct quench operation, while the remainder may be sold or used as fuel for the cracking furnace. The primary fractionator also produces a gasoline stream, called pyrolysis gasoline or pygas which is rich in aromatics (benzene, toluene and gasoline). Pygas may be processed to separate the BTX components. C4 hydrocarbons are produced in sufficient amounts to justify their separate recovery, and therefore usually a butanizer is installed. Modifications of Figure (2.1) are possible depending on the type of feedstock and the degree of recovery desired for the different products. Figure (2.1): Simplified process flow diagram for producing ethylene via liquid (e.g. naphtha or gas oil) cracking [2].
Liquid Feedstock Steam Cracking
Compressi on

Ethane and Propane Recycle

TLE

Gas Drying

Water

Oil Quench

Demetha nizer

Hydrogen Methane

Primary Fractionator

Deethani zer

Hydrogenation

Ethylene Fractionation

Ethylene

Compression

Depropo nizer

Hydrogenation

Propylene Fractionation

Propylene

H2S CO2

Acid Gas Removal

Debutani zer

C4 Pygas Fuel Oil

3. FEEDSTOCK SELECTION In terms of feedstock selection, the following considerations need to be taken into account [3]: * An ethane plant is an order of magnitude simpler (in terms of capital cost, operability and marketing) than any other type of cracker since there is one feedstock (ethane) and, mainly, one product (ethylene). It would be the feedstock of choice for an investor with limited capital resources. * An ethane/propane cracker is almost as simple as an ethane cracker if the amount of propane is relatively small. The propylene production at low propane feed content usually does not justify propylene recovery. Thus, the depropanizer and C3 splitter columns are not required. * Cracking normal butane is very similar to cracking propane in terms of investment and yields. However, cracking butanes containing significant isobutene will result in significantly different yields and costs. * A naphtha cracker is more complex with three times the products to sell and involves much more working capital. * On average, the net ethylene cost of ethane crackers and flexible crackers running on naphtha will be close, but over the years the flexible naphtha cracker will have a lower cost since it can be changed over to the optimum feedstock. * Cracking heavier feedstocks (such as naphtha and gas oil) provides a wider product mix, in particular the aromatics: benzene, toluene and xylenes. These co products are the precursors for down stream integration in petrochemicals industry. Table (3.1) gives the yield from different feedstocks. Table (3.1): Yields Patterns (lb per 100 lb Ethylene), [2] Ethane Feedstock required(lb) Ethylene (yield %) Benzene (yield %) Propylene Butadiene Other C4 olefins Pyrolysis gasoline Benzene Toluene C5 olefins Fuel oil Other(mainly H2 and CH4) 120 80 3 2 1 2 1 Neg. Neg. Neg. 17 Propane 240 42 50 5 3 15 5 Neg. Neg. 2 65 Butane 250 38 40 9 17 18 6 3 1 4 62 Naphtha 320 31 50 15 25 75 15 10 7 10 45 Atmospheric Gas Oil 380 26 55 17 18 70 23 12 8 70 50 Vacuum Gas Oil 430 23 60 17 18 65 24 12 7 125 45

3. CURRENT PROCESSING TECHNOLOGIES At present there exist several alternative routes to olefins and aromatics production. In broad terms the commercially prevalent routes are:

3.1 Steam cracking of saturated hydrocarbons

Ethylene and propylene are the most important chemical feedstocks, accounting for 50-60% of all organic chemicals. But, due to their high reactivities, only very limited amounts of olefins exist in natural gas and crude oil. Thus, they must be manufactured from cracking processes.

Steam cracking of saturated hydrocarbons has been the dominant technology for several decades and involves thermal pyrolysis in the presence of steam to achieve dehydrogenation of a saturated hydrocarbon ranging from ethane to vacuum gas oil. A free radical and chain reaction mechanism generates olefins, with temperatures above 750-800 OC . The overall reaction is highly endothermic. The dehydrogenation of paraffins is equilibrium-limited and hence requires high temperatures. A point of contention is that although high temperatures enhance conversion per pass, the difficulty is one of selectivity and losses to side reactions including cracking to light gases and coking. Concerns about these two key factors of conversion and selectivity affect feedstock consumption and recycles, which in turn, impact on energy consumption and capital investment and associated variable and fixed costs. Usually for paraffin dehydrogenation, selectivity to a desired product declines with increasing conversion for a given operating pressure. Optimum operating conditions, therefore, become a trade off between feedstock consumption, capital investment, and operating costs. In general, design of commercial petrochemical olefins and aromatics plants must deal with a number of constraining conditions: (1) Supply heat at very high temperatures. (2) Operate at low hydrocarbon pressure to maximize yields. (3) Maintain split second residence times to limit consecutive reactions. (4) Quickly quench furnace effluent to freeze product compositions. (5) Provide a high level of energy integration to minimize net energy consumption. (6) Need to efficiently make difficult separations between close-boiling components. Within the pyrolysis section (hot-end) of plant, once the feedstock (ethane, propane, natural gas liquids, naphtha, gas oils) is set, the main design and operating variables are; the coil temperature profile, the residence time, and the partial pressure of the hydrocarbons. In the USA, the dominant steam cracking feedstocks are LPG (C3H8 + C4H10) and NGL (C2H6, LPG, light naphtha). Most C4 olefins are obtained from catalytic cracking, with less than 10% coming from steam cracking (except butadiene). The future technology for olefins and aromatics production is expected to be dominated by steam cracking. Mega-capacity petrochemical plants are envisaged to be built in the future to take advantage of economies of scale in capital costs. The most obvious disadvantage of the steam cracking process (due to the non-catalytic nature of the process) is its relatively low selectivity for the desired products. A wide range of products is produced with little flexibility. More and more petrochemical plants are designed to operate with feedstock flexibility. As regards feedstock selection, the decision depends on a balance of availability, cost of feed, and by-product market. If a market exists for propylene and heavier by-products, propane or liquid feeds will be needed. A number of plants in the United States have been designed to crack the full range of feeds (ethane through atmospheric gas oils and/or field condensates). In general the final decision to opt for feedstock flexibility will depend on several key design and operating factors; (1) Total capital investment, (2) The degree of feedstock flexibility will affect the required changes in operating conditions to accommodate the feedstock of choice, (3) How that flexibility is utilized once the cracker is in operation. In general it is not practical to feed naphtha to a gas cracker designed for ethane or ethane/propane feed because the furnace design for the various feedstocks is different. The reverse is to some degree possible because liquid crackers can be modified to handle lighter feeds. Thus it is quite practical to feed moderate quantities of ethane or ethane/propane and/or butane to a naphtha or gas oil cracker. Atmospheric gas oil can be fed to a naphtha cracker. In practice there are four major options regarding feedstock flexibility: (a) Ethane only

(b) Ethane/propane (c) Liquids: naphtha or gas oil or a combination of both (d) Flexible cracking with any combination of the foregoing modes If the demand is for ethylene only, then straight ethane cracking represents the lowest unit capital choice (for the plant itself and for the related infrastructure) and the simplest co-product mix. Moving to heavier feeds increases the unit capital cost and the complexity of the co-product mix. The battery limits and offsites costs increase still further if a wide range of flexibility is desired. In this case the plant must be operated optimally to take advantage of feedstock choice options in order to maximize return on investment. Cracker feedstock prices can have a dynamic pattern and are usually driven by (1) the value of energy, (2) the seasonal factors of feedstocks and (3) the variations in ethylene co-product values. In this respect the key driving forces for feedstock prices are mainly natural gas and crude oil, which themselves are interrelated. At low crude oil prices, naphtha is favored, whereas at high crude oil values light liquids cracking becomes relatively more attractive. When co-product prices are low, naphtha cracking yields higher cost ethylene. At times of high co-product values, the relationship is exactly reversed: naphtha becomes the lowest cost feedstock. At present the consensus among major technology licensors is that the technology of ethylene production will continue to be dominated by steam cracking. The over-riding consideration being design of still larger plants to take advantage of economies of scale in capital costs. The following are some of the future design considerations: (a) Single train capacities of 1 to 2 million metric tons per annum (MMTA) are envisioned, with individual furnace capacities of up to 300,000 metric tons per annum (KTA) for gas feedstocks and 230,000 KTA for liquid feedstocks. (b) Quench towers for 1.8 MMTA will be smaller and lighter than vessels presently used in refinery and petrochemical plants. (c) Refrigeration, heat pump, and cracked gas compressors can be single train for capacities of 1.4 to 1.8 MMTA. (d) Chilling-train plate-fin heat exchangers will require multiple shells/cores, possibly leading to integration of heat exchanger surface within multi-purpose vessels. (e) Gas driers and acetylene converters may need to be in parallel. (f) Dilution steam generators may need to be in parallel for liquid feedstocks. (g) Pressure profiles may be adjusted to limit actual volumetric flow rates at compressor inlets to capacities in the 300 to 350 thousand cubic meters per hour (KCMH) range. Pressure drops in pipelines may be increased to minimize the size and cost of valves and fittings. (h) In order to optimize the design of mega-capacity olefin plants, certain adjustments in process temperature, pressure, and concentration profiles may be desirable. (i) Feedstock selection will be a crucial element regarding ethylene plant capacity and location. The longterm availability and price of the feedstocks will be an over-riding factor because of their dominant effect on cost and profitability of plants. (j) Plants processing liquid feedstocks will be affected strongly by the market demand and value obtainable for the plants co-product slate.

3.2 Fischer-Tropsch Synthesis

The Fischer-Tropsch process converts catalytically synthesis gas (obtained from natural gas or coal) into a wide range of hydrocarbons and oxygenates: Coal CO/H2 hydrocarbons + alcohols 7

It has mainly been used for the production of liquid fuels (gasoline, diesel, and jet fuel) but, in principle, the process can be tuned for the production of light olefins by using different catalysts. However, low selectivity towards ethylene, high methane formation, and insufficient catalyst activity and life are problems as yet to be overcome for route for it to be commercially exploited. This route (discovered in 1923), in hydrocarbon synthesis, it has never been able to compete economically with conventional petroleum-based fuels and chemicals.

3.3 Refinery off-gas recovery

In what is called a refinery-petrochemical complex, ethylene recovery design may be integrated with the ethylene unit of its adjacent refinery. Fluid Catalytic Cracking (FCC) units in oil refineries are built primarily to produce motor gasoline to supplement gasoline produced from other refinery units such as catalytic reformer units. A modern oil refinery will typically include a cat cracker, particularly at refineries in the USA due to the high demand for gasoline. In general, oil refinery cracking processes allow the production of light products (such as liquefied petroleum gas (LPG) and gasoline) from heavier crude oil distillation fractions (such as gas oils) and residue. FCC units produce a high yield of gasoline and LPG, while hydrocracking is a major source of jet fuel, kerosene, diesel, relatively high octane rating gasoline components and LPG. All these products have a very low content of sulfur and contaminants.

3.4 Selective Dehydrogenation of Alkanes

In recent years the demand for propylene and butylenes has increased much more rapidly than the demand for ethylene and this situation is expected to continue [3]. In addition, the growth of refinery sources (e.g. from FCC) for these products have not kept pace with this growing demand. Moreover, cracking furnaces are very capital intensive and it is expected that in the next decades many have to be replaced because of their age. Therefore, direct production methods for these specific alkenes receive increasingly more attention. A logical choice of process is the catalytic selective dehydrogenation of the corresponding alkanes. The following are 4 commercially available processes for the dehydrogenation of propane and iso-butane: (a) Oleflex (UOP) Process (b) Catofin (ABB Lummus crest) (c) STAR (Phillips Petroleum) (d) FBD-4 (Snamprogetti) In principle, catalytic dedydrogenation of ethane is also possible, but up to now a commercially attractive process has not been realized [4,5,6].

3.5 Methanol to olefins

Fluidized bed technology using newly developed catalysts based on SAPO-34(a silico-alumino-phosphate molecular sieve) is used in the Methanol to Olefins (MTO) technology for the conversion of methanol to ethylene and propylene. The MTO process has developed from Mobils Methanol-toGasoline (MTG) process, which converts methanol into gasoline with alkenes as intermediates. An important consideration here is to enhance the formation of lower alkenes and to suppress the formation of aromatics. This can be achieved through the used of certain zeolite-based catalysts. The reaction scheme is as follows: 2CH3OH H3C-O-CH3 H3C-O-CH3 + H2O H2C=CH2 + H2O

H2C=CH2 + CH3OH

CH2=CH-CH3 + H2O

The main disadvantages of the MTO process are: (a) The need for frequent catalyst regeneration due to substantial coke formation. (b) The need for robust temperature control because of the highly exothermic nature of the process. For this reason it has been suggested to carry out the reaction in two fluidized bed reactors, one for reaction and one for catalyst regeneration [7,8]. In 1995 a demonstration plant of the MTO process came on stream [2]. The economics of the MTO process is highly location-specific such as availability and price of methanol and transportation distances involved. 4. DEVELOPING PROCESSING TECHNOLOGIES

4.1 Catalytic ethane partial oxidation

Paraffinic hydrocarbons can be catalytically cracked in the presence of oxygen to form mono-olefins. Partial oxidation implies one or both oxidative dehydrogenation and cracking. Under autothermal reaction conditions, the feed is partially combusted and the heat generated during combustion drives the endothermal cracking process. Some patents were awarded for this route but autothermal processes are yet to be commercialized.

4.2 Deep catalytic cracking/catalytic pyrolysis process

This technology involves the cracking of naphtha-range feedstocks in the presence of various catalysts. Several processes in this category have been patented and yet to be commercialized. The main disadvantage of this route is its tendency to produce higher amounts of carbon oxides than normally found in conventional processes. The yield per pass of the Asahi Chemical process is about 22% ethylene. In comparison conventional yields from steam cracking of light naphtha is about 25-33% ethylene. Although the yield from the Asahi catalytic process is about 25% less than in the conventional technology, the propylene yield is 20-40 percent higher and the aromatics yield is 2-4 times greater than from conventional steam cracking.

4.3 Oxidative Coupling of Methane

Methane is the largest constituent of natural gas. This fact makes the direct conversion of methane into valuable chemicals, such as ethylene, very attractive. The direct conversion of methane into ethylene is possible by applying so-called oxidative coupling, i.e. the catalytic reaction of methane with oxygen according to the following reaction scheme: 2 CH4 + 1/2O2 CH3CH3 + 1/2O2 Undesirable reactions [2]: CH4, CH3CH3 , etc + O2 CO2,CO CH3CH3 + H2O CH2CH2 + H2O

The reaction produces ethane (CH3CH3), which is converted in situ, while through sequential reactions higher hydrocarbons are also formed in small amounts. The main problem with oxidative coupling of methane is the formation of large amounts of CO2 and CO by oxidative reactions. This not only reduces the selectivity towards ethane, the high exothermicity also presents formidable heat removal problems [9]. Since its invention in 1982, oxidative coupling has receive considerable attention [10,11]. The early research effort was in development of suitable catalysts. However, the best combinations of conversion and selectivity through this effort (ca. 30% and 80%, respectively) thus far achieved in laboratory fixedbed reactors are still well below those considered economically acceptable. Accordingly, the emphasis in oxidative coupling research has shifted somewhat to innovative reactor designs, such as staged oxygen addition and membrane reactors for combined reaction and ethylene removal [11,12,13].

6. ECONOMIC ANALYSIS 6.1 Projects Basis

Location Year of Analysis Stream Time Income tax rate Project Life Time : Jubail Industrial City (KSA) : 2nd Quarter 2007 : 330 days/year : 2.5% : 20 years

6.2 Pricing Basis

The pricing basis for the economic analysis that follows is summarized in table (6.1) for the second quarter of 2007 for Jubail location in the Kingdom of Saudi Arabia. Table (6.1): Average Chemical Prices Basis,(Jubail, 2nd Quarter 2007) Unit Feedstock/By-product: Ethane Propane Light Virgin Naphtha Atmospheric Gas Oil Propylene (poly grade) Propylene (Refinery grade) Butadiene Raffinate-1 Benzene Toluene (mogas value) Gal Gal Gal Gal Lb Lb Lb Gal Gal Gal 0.4885 0.7455 1.1100 1.2900 0.4463 0.3932 0.3925 1.0892 2.8805 1.3535 $/Unit

10

Xylenes (mogas value) C9 Aromatics Raffinate (Bz extraction) SC Light Fuel Oil SC Heavy Fuel Oil Hydrogen (ex steam cracker) Manpower: Labor Foremen Supervisor

Gal Gal Gal Gal Gal MSCF

1.3648 1.3800 1.1100 0.7200 0.3400 2.7300

Year Year Year

43,290 49,137 59,293

Utility Prices: Electricity Cooling Sea Water Process Water LP Steam HP Steam = 0.032 $/kWh = 13.76/1000 m3 = 1.6 / m3 = 2.4 $/1000 kg = 11.84 $/1000 kg

6.3 Investment Basis

The production capacity of the complex component plants are as follows: LDPE 23,385 MT/Year LLDE 127,540 MT/Year HDP 116,700 MT/Year Ethylene glycol 510,269 MT/Year Polypropylene 31,098 MT/Year Propylene glycol 458,320 MT/Year Polystyrene 366,600 MT/Year The cracker ethylene production is converted into LDPE, LLDPE, HDPE, EG, and styrene. Ethyl benzene (produced from ethylene and benzene) is dehydrogenated into styrene which is then polymerized into polystyrene. Propylene is converted into polypropylene and propylene glycol. The total ethylene output from the steam cracker is 1499 million lb/year. The ethylene material balance is as follows (in million lb/year): Ethylene consumed in the LDPE plant = 52 Ethylene consumed in the LLDPE plant = 260 Ethylene consumed in the HDPE plant = 260 Ethylene consumed in the EG plant = 700 Ethylene consumed in the styrene plant = 227 ----Total ethylene consumed = 1499

11

All the toluene from the steam cracker is converted into benzene. The total benzene converted into styrene is obtained from the benzene cracker plus that from toluene. The feedstock to each plant within the complex is assumed to have a transfer price of product cost plus 20% ROI. Figure (6.1) shows a general flow diagram of the petrochemical complex under assessment. Figure (6.1): Flow Diagram of Petrochemical complex
FUEL GAS
ETHYLENE

CRACKER

LDPE LLDPE HDPE EO EG

POLYPROPYLENE

PROPYLENE

PO
BENZENE ETHYLE BENZENE

PG
STYRENE POLYSTYRENE

NAPHTHA

STEAM

TOLUENE

Butadiene, Raffinate, Hydrogen, C9 Aromatics, Fuel Oil

7. PRODUCTION COST ESTIMATES The EXCEL spreadsheet cost estimate computations and the sensitivity analysis were carried out using Visual Basic for Applications software. The fixed capital investment (FCI) estimates were based on NEXANT data and were adjusted for Saudi location in 2007 via the following correlation:
SAUDI CAPACITY COST INDEX 2007 FCI ( JUBAIL) FCI (USA) * LOCATION FACTOR * COST INDEX BASE YEAR USA CAPACITY
0.6

SAUDI STREAM TIME * USA STREAM TIME

Table (7.1) shows the petrochemical project totals. Tables (7.2) to (7.5) show the individual plant cost estimates.

12

TABLE (7.1): PROJECT TOTALS

PROJECT: FULL RANGE NAPHTHA (MODERATE SEVERITY)

ANALYSIS DATE LOCATION

2007 SAUDI ARABIA 680400 5180.21 3267.65 3923.36 701.15 MT/Year ETHYLENE $ Million $ Million/Year $ Million/Year $ Million/Year (=1500 Million Pounds per Year)

PRODUCTION CAPACITY TOTAL CAPITAL INVESTMENT COST OF PRODUCTION ANNUAL SALES ANNUAL NET PROFITS PLANT SERVICE LIFE 20 Years RETURN ON INVESTMENT (ROI) PAY BACK PERIOD NET PRESENT VALUE (AT 8.0% ) DICOUNTED CASH FLOW RATE OF RETURN (IRR)

21.10% 4.93 8232.43 30.97%

Years $ Million

SAUDI CAPITAL INVESTMENT DATA (BASED ON SOURCE BELOW) CAPITAL COST ANALYSIS DATE 2007 ISBL LOCATION SAUDI ARABIA OSBL CAPACITY: MM Lb/Year 1499.6016 TOTAL PLANT CAPITAL Thousand MT/Y 680.4 OTHER PROJECT COSTS OPERATING RATE 100 TOTAL PROJECT INVESTMENT WORKING CAPITAL TOTAL CAPITAL INVESTMENT

MILLION US $ 2478.8 1285.4 3764.3 995.9 4541.2 639.03 5180.2

USA CAPITAL INVESTMENT DATA Source:NEXANT, PERP Report, Ethylene/Propylene 00/01-4, Page 93, Process: "FRN (MODERATE SEVERITY) CAPITAL COST MILLION US $ ISBL 545.7 OSBL 272.9 ANALYSIS DATE 2000 TOTAL PLANT CAPITAL 818.6 LOCATION US Gulf Coast OTHER PROJECT COSTS 204.7 CAPACITY: MM Lb/Year 1499.6016 TOTAL PROJECT INVESTMENT 1023.3 Thousand MT/Y 680.4 WORKING CAPITAL 110.7 OPERATING RATE 100 TOTAL CAPITAL INVESTMENT 1134.0 LOCATION FACTOR (SAUDI ARABIA / USA) CHEM. ENG. COST INDEX 2000 CHEM. ENG. COST INDEX 2007 USA STREAM TIME (Hours/Year) SAUDI STREAM TIME (Hours/Year) 1.25 470 500 8000 7800

1.0638298 1.025641

13

TABLE (7.2): ETHYLENE PRODUCTION COST ESTIMATES

PLANT START UP ANALYSIS DATE LOCATION OPERATING RATE, Million Lb/Y Thousand MT/Y CAPACITY Thousand MT/Y 2009 2007 SAUDI ARABIA 1499.602 680.4 680.4 CAPITAL COST ISBL OSBL TOTAL PLANT CAPITAL OTHER PROJECT COSTS TOTAL PROJECT INVESTMENT WORKING CAPITAL TOTAL CAPITAL INVESTMENT UNITS PRICE Per Lb Product US $/UNIT 0.5443 0.729 MILLION US $ 744.27 372.20 1116.48 279.19 1395.66 150.98 1546.64 ANNUAL % COST COST MM US $ US$/MT OF PRODUCTION 594.63 873.94 76.58 0.00 0.00 0.00 2.40 3.53 0.31 597.03 877.46 76.89 -38.33 -56.33 4.94 -153.50 -225.60 19.77 -50.00 -73.48 6.44 -36.34 -53.40 4.68 -43.71 -64.24 5.63 -5.10 -7.50 0.66 -11.30 -16.61 1.46 -61.86 -90.92 7.97 -27.06 -39.77 3.49 -10.99 -16.15 1.42 -18.70 -27.48 2.41 -57.03 -83.82 7.34 540.00 793.65 69.55 1.81 2.67 0.23 63.46 93.26 8.17 0.00 65.27 605.27 605.27 2.36 0.56 0.05 20.10 1.34 24.41 14.65 11.16 25.81 655.49 120.96 776.45 931.11 931.11 150.80 275.62 0.00 95.93 889.58 889.58 3.47 0.83 0.08 29.53 1.97 35.88 21.53 16.41 37.94 963.39 177.77 1141.16 1368.47 1368.47 221.63 405.09 0.00 8.41 77.95 77.95 0.30 0.07 0.01 2.59 0.17 3.14 1.89 1.44 3.32 84.42 15.58

PRODUCTION COST SUMMARY RAW MATERIALS NAPHTHA Gal

Catalyst & Chemicals 1 0.002 TOTAL RAW MATERIALS Fuel Gasl MMBtu 0.009 2.840 Propylene (Poly grade) Lb 0.5118 0.200 Butadiene Lb 0.1667 0.200 Raffinate-1 Lb 0.0346 0.700 Raffinate(Bz extraction) Gal 0.0419 0.696 Hydrogen-ex SC M SCF 0.0025 1.361 SC Lt Fuel Oil Gal 0.016 0.471 Benzene Gal 0.033 1.250 Toluene-mogas value Gal 0.0219 0.824 Xylene-mogas value Gal 0.0088 0.833 C9 aromatics Gal 0.0148 0.843 TOTAL BY-PRODUCT CREDITS NET RAW MATERIALS UTILITIES Power kWh 0.0378 0.032 Natural Gas MM Btu 0.0149 2.840 Cooling Water M Gal 0.0551 0.079 Boiler Feed Water M Gal 0 1.557 TOTAL UTILITIES NET RAW MATERIALS AND UTILITIES VARIABLE COST DIRECT FIXED COSTS Laborers 62 Men 38.1 Thousand US $ Foremen 13 Men 43.2 Thousand US $ Supervisors 1 Men 52.2 Thousand US $ Maintenance, Material & Labor 2.7% of ISBL Direct Overhead 45% Labor & Supervision TOTAL DIRECT FIXED COSTS ALLOCATED CASH COSTS General Plant Overhead 60% Direct Fixed Costs Insurance 1% Total Plant Capital TOTAL ALLOCATED CASH COSTS CASH COST Depreciation @ 10% for ISBL and OPC 5% for OSBL COST OF PRODUCTION Ethylene (Transfer Price) 1368.47 $/MT TOTAL SALES NET PROFITS AFTER ZAKAT ANNUAL CASH FLOW BY-PRODUCT CREDITS

US$/LB 0.3965 0.0000 0.0016 0.3981 -0.0256 -0.1024 -0.0333 -0.0242 -0.0291 -0.0034 -0.0075 -0.0413 -0.0180 -0.0073 -0.0125 -0.0589 0.3392 0.0012 0.0423 0.0000 0.0435 0.3827 0.3827 0.0016 0.0004 0.0000 0.0134 0.0009 0.0163 0.0098 0.0074 0.0172 0.4162 0.0807 0.4969 0.6192 0.6192 0.1193 0.2030

RETURN ON INVESTMENT (ROI) PAY BACK PERIOD NET PRESENT VALUE (AT 8%) DICOUNTED CASH FLOW RATE OF RETURN (IRR)

17.57% 4.87 YEARS $1,718.31 MILLION US $ 20.12%

14

TABLE (7.3): BENZENE PRODUCTION COST ESTIMATES

PLANT START UP ANALYSIS DATE LOCATION OPERATING RATE , Million Gal/Y Thousand MT/Y CAPACITY Million Gal/Y

CAPITAL COST ISBL OSBL TOTAL PLANT CAPITAL OTHER PROJECT COSTS TOTAL PROJECT INVESTMENT WORKING CAPITAL 0.35469174 TOTAL CAPITAL INVESTMENT PRODUCTION COST SUMMARY UNITS PRICE Per Gal Product US $/UNIT RAW MATERIALS Toluene-mogas value Gal 2.3856 0.4859 Catalyst & Chemicals 1 0.0162 TOTAL RAW MATERIALS BY-PRODUCT CREDITS Fuel Gas MM Btu 0.0301 0.75 C9 Aromatics Gal 0.2278 0.5099 Mixed Xylenes Gal 0.9435 0.62 TOTAL BY-PRODUCT CREDITS NET RAW MATERIALS UTILITIES Power Cooling Water Steam(Gas),50 psig Natural Gas Steam(Gas),200 psig Steam(Gas), 600 psig kWh M GALS M Lb MM Btu M Lb M Lb 0.106 1.106 0 0.0007 0.0113 0.0099 0.032 0.083 1.1816 0.75 1.19967 1.2479

2009 2007 SAUDI ARABIA 35.54725 118.6567 35.54725

TOTAL UTILITIES NET RAW MATERIALS AND UTILITIES VARIABLE COST DIRECT FIXED COSTS Laborers 10 Men 43.3 Thousand US $ Foremen 5 Men 49.1 Thousand US $ Supervisors 1 Men 59.3 Thousand US $ Maintenance, Material & Labor 3% of ISBL Direct Overhead 45% Labor & Supervision TOTAL DIRECT FIXED COSTS ALLOCATED CASH COSTS General Plant Overhead 60% Direct Fixed Costs Insurance 1% Total Plant Capital TOTAL ALLOCATED CASH COSTS CASH COST Depreciation @ 10% for ISBL and OPC 5% for OSBL COST OF PRODUCTION Benzene Transfer Price(or Sales Price) 509.7755 $/MT TOTAL SALES NET PROFITS AFTER ZAKAT ANNUAL CASH FLOW RETURN ON INVESTMENT (ROI) PAY BACK PERIOD NET PRESENT VALUE (AT 8%) DICOUNTED CASH FLOW RATE OF RETURN (IRR) 22.43% 4.87 YEARS $95.60 MILLION US $ 27.96%

MILLION US $ 28.28 11.34 39.63 9.89 49.52 9.09 58.60 ANNUAL % COST US$/Gal COST MM US $ US$/MT OF PRODUCTION 1.1592 41.21 347.26 77.52 0.0162 0.58 4.85 1.08 1.1754 41.78 352.12 78.61 -0.0226 -0.80 -6.76 1.51 -0.1162 -4.13 -34.80 7.77 -0.5850 -20.79 -175.25 39.12 0.0000 0.00 0.00 0.00 -0.6075 -0.80 -6.76 1.51 0.5678 40.98 345.35 77.10 0.0034 0.12 1.02 0.23 0.0918 3.26 27.50 6.14 0.0000 0.00 0.00 0.00 0.0005 0.02 0.16 0.04 0.0000 0.00 0.00 0.00 0.0136 0.48 4.06 0.91 0.0124 0.44 3.70 0.83 0.0000 0.00 0.00 0.00 0.0000 0.00 0.00 0.00 0.0000 0.00 0.00 0.00 0.1216 4.32 36.44 8.13 0.6894 45.30 381.79 85.23 0.6894 45.30 381.79 85.23 0.0122 0.43 3.65 0.81 0.0069 0.25 2.07 0.46 0.0017 0.06 0.50 0.11 0.0239 0.85 7.15 1.60 0.0093 0.33 2.80 0.62 0.0540 1.92 16.17 3.61 0.0324 1.15 9.70 2.17 0.0111 0.40 3.34 0.75 0.0435 1.55 13.04 2.91 0.7869 48.77 411.00 91.75 0.1233 4.38 36.95 8.25 0.9103 53.15 447.95 1.7016 60.49 509.78 1.7016 60.49 509.78 0.7716 7.15 60.28 0.9147 11.72 98.78

15

TABLE (7.4): STYRENE PRODUCTION COST ESTIMATES

CAPITAL COST ISBL OSBL TOTAL PLANT CAPITAL OTHER PROJECT COSTS TOTAL PROJECT INVESTMENT WORKING CAPITAL 0.354692 TOTAL CAPITAL INVESTMENT PRODUCTION COST SUMMARY UNITS PRICE Per Lb Product US $/UNIT RAW MATERIALS Ethylene Lb 0.286 0.622034 Benzene Lb 0.787 0.504 FEEDSTOCK "C" Lb 0 0 FEEDSTOCK "D" Lb 0 0 FEEDSTOCK "E" Lb 0 0 FEEDSTOCK "F" Lb 0 0 Catalyst & Chemicals 0 0 TOTAL RAW MATERIALS TOTAL BY-PRODUCT CREDITS NET RAW MATERIALS UTILITIES Power kWh 0.03502 0.032 Cooling Water M GALS 0.01922 0.083 Steam(Gas),50 psig M Lb 0.00057 1.1816 Steam(Gas),200 psig M Lb 0.00047 1.19967 Steam(Gas), 600 psig M Lb 0.00005 1.2479 Process Water M GALS 0.00025 0.9758 Heat Rransfer Fluid MM Btu 0.00052 0.75 Fuel Lb 0 0.02 TOTAL UTILITIES NET RAW MATERIALS AND UTILITIES VARIABLE COST DIRECT FIXED COSTS Laborers 24 Men 43.3 Thousand US $ Foremen 7 Men 49.1 Thousand US $ Supervisors 2 Men 59.3 Thousand US $ Maintenance, Material & Labor 3% of ISBL Direct Overhead 45% Labor & Supervision TOTAL DIRECT FIXED COSTS ALLOCATED CASH COSTS General Plant Overhead 60% Direct Fixed Costs Insurance 1% Total Plant Capital TOTAL ALLOCATED CASH COSTS CASH COST Depreciation @10% for ISBL and OPC 5% for OSBL COST OF PRODUCTION Styrene Transfer Price 1788.765 $/MT TOTAL SALES NET PROFITS AFTER ZAKAT ANNUAL CASH FLOW
RETURN ON INVESTMENT (ROI) 29.28% PAY BACK PERIOD 4.87 YEARS NET PRESENT VALUE (AT 8%) $1,267.39 MILLION US $ DICOUNTED CASH FLOW RATE OF RETURN (IRR) 33.02%

PLANT START UP 2009 ANALYSIS DATE 2007 LOCATION SAUDI ARABIA OPERATING , Million RATE Lb/Y 794.91 Thousand MT/Y 360.67 CAPACITYThousand MT/Y 360.67 165.2 118.657

MILLION US $ 295.08 126.29 421.38 105.34 526.72 55.86 582.59 ANNUAL % COST US$/LB COST MM US $ US$/MT OF PRODUCTION 0.1779 141.42 392.10 26.75 0.3966 315.30 874.21 59.64 0.0000 0.00 0.00 0.00 0.0000 0.00 0.00 0.00 0.0000 0.00 0.00 0.00 0.0000 0.00 0.00 0.00 0.0000 0.00 0.00 0.00 0.5745 456.71 1266.31 86.40 0.0000 0.00 0.00 0.00 0.5745 456.71 1266.31 86.40 0.0011 0.89 2.47 0.17 0.0016 1.27 3.52 0.24 0.0007 0.54 1.48 0.10 0.0006 0.45 1.24 0.08 0.0001 0.05 0.14 0.01 0.0002 0.19 0.54 0.04 0.0004 0.31 0.86 0.06 0.0000 0.00 0.00 0.00 0.0046 3.70 10.25 0.70 0.5792 460.41 1276.56 87.10 0.5792 460.41 1276.56 87.10 0.0013 1.04 2.88 0.20 0.0004 0.34 0.95 0.07 0.0001 0.12 0.33 0.02 0.0111 8.85 24.54 1.67 0.0009 0.68 1.87 0.13 0.0139 11.03 30.58 2.09 0.0083 6.62 18.35 1.25 0.0053 4.21 11.68 0.80 0.0136 10.83 30.03 2.05 0.6067 482.27 1337.17 91.23 0.0583 46.36 128.53 8.77 0.6650 528.63 1465.70 0.8094 645.15 1788.76 0.8094 645.15 1788.76 0.1408 113.60 314.99 0.2027 162.88 451.60

16

TABLE (7.5): POLYSTYRENE PRODUCTION COST ESTIMATES

CAPITAL COST ISBL OSBL TOTAL PLANT CAPITAL OTHER PROJECT COSTS TOTAL PROJECT INVESTMENT WORKING CAPITAL 0.354692 TOTAL CAPITAL INVESTMENT PRODUCTION COST SUMMARY UNITS PRICE Per Lb Product US $/UNIT RAW MATERIALS Styrene Lb 0.9839 0.813075 Mineral Oil Lb 0.0182 0.8665 FEEDSTOCK "C" Lb 0 0 FEEDSTOCK "D" Lb 0 0 FEEDSTOCK "E" Lb 0 0 FEEDSTOCK "F" Lb 0 0 Catalyst & Chemicals U.S.$ 1 0.01 TOTAL RAW MATERIALS TOTAL BY-PRODUCT CREDITS NET RAW MATERIALS UTILITIES Power kWh 0.03502 0.032 Cooling Water M GALS 0.01922 0.083 Steam(Gas),50 psig M Lb 0.00057 1.1816 Steam(Gas),200 psig M Lb 0.00047 1.19967 Steam(Gas), 600 psig M Lb 0.00005 1.2479 Process Water M GALS 0.00025 0.9758 Heat Rransfer Fluid MM Btu 0.00052 0.75 Fuel Lb 0 0.02 TOTAL UTILITIES NET RAW MATERIALS AND UTILITIES VARIABLE COST DIRECT FIXED COSTS Laborers 24 Men 43.3 Thousand US $ Foremen 7 Men 49.1 Thousand US $ Supervisors 2 Men 59.3 Thousand US $ Maintenance, Material & Labor 3% of ISBL Direct Overhead 45% Labor & Supervision TOTAL DIRECT FIXED COSTS ALLOCATED CASH COSTS General Plant Overhead 60% Direct Fixed Costs Insurance 1% Total Plant Capital TOTAL ALLOCATED CASH COSTS CASH COST Depreciation @10% for ISBL and OPC 5% for OSBL COST OF PRODUCTION PolyStyrene Selling Price at 2034.185 $/MT TOTAL SALES NET PROFITS AFTER ZAKAT ANNUAL CASH FLOW
RETURN ON INVESTMENT (ROI) 29.42% PAY BACK PERIOD 4.87 YEARS NET PRESENT VALUE (AT 8%) $533.55 MILLION US $ DICOUNTED CASH FLOW RATE OF RETURN (IRR) 36.28%

PLANT START UP 2009 ANALYSIS DATE 2007 LOCATION SAUDI ARABIA OPERATING , Million RATE Lb/Y 807.91 Thousand MT/Y 366.57 CAPACITYThousand MT/Y 366.57

MILLION US $ 109.61 38.21 147.82 36.96 184.78 55.12 239.90 ANNUAL US$/LB COST MM US $ 0.8000 646.32 0.0158 12.74 0.0000 0.00 0.0000 0.00 0.0000 0.00 0.0000 0.00 0.0100 8.08 0.8258 667.14 0.0000 0.00 0.8258 667.14 0.0011 0.91 0.0016 1.29 0.0007 0.54 0.0006 0.46 0.0001 0.05 0.0002 0.20 0.0004 0.32 0.0000 0.00 0.0046 3.76 0.8304 670.90 0.8304 670.90 0.0013 1.04 0.0004 0.34 0.0001 0.12 0.0041 3.29 0.0008 0.68 0.0068 5.47 0.0041 3.28 0.0018 1.48 0.0059 4.76 0.8431 681.12 0.0205 16.57 0.8636 697.69 0.9204 745.67 0.9204 745.67 0.0555 46.78 0.0774 64.55

US$/MT 1763.17 34.76 0.00 0.00 0.00 0.00 22.04 1819.96 0.00 1819.96 2.47 3.52 1.48 1.24 0.14 0.54 0.86 0.00 10.25 1830.21 1830.21 2.83 0.94 0.32 8.97 1.84 14.91 8.95 4.03 12.98 1858.10 45.20 1903.30 2034.19 2034.19 127.62 176.09

% COST OF PRODUCTION 92.64 1.83 0.00 0.00 0.00 0.00 1.16 95.62 0.00 95.62 0.13 0.18 0.08 0.07 0.01 0.03 0.05 0.00 0.54 96.16 96.16 0.15 0.05 0.02 0.47 0.10 0.78 0.47 0.21 0.68 97.63 2.37

17

Figures (7.1) to (7.7) show the sensitivity of plant profitability measures in relation to different operating parameters.
FIGURE (7.1):EFFECT OF PLANT OPERATING RATE ON ROI
25%

20%

15%
ROI

10%

5%

0% 68 136 204 272 340 408 476 544 612 680 PLANT OPERATING RATE MT/Y OF ETHYLENE

FIGURE (7.2):EFFECT OF PLANT OPERATING RATE ON PAY BACK PERIOD

7.0

6.0

5.0
PAY BACK PERIOD, YEARS

4.0

3.0

2.0

1.0

0.0 68.04 136.08 204.12 272.16 340.2 408.24 476.28 544.32 612.36 680.4 PLANT OPERATING RATE MT/Y OF ETHYLENE

18

FIGURE (7.3):EFFECT OF PLANT OPERATING RATE ON NPV

10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 68.04 136.08 204.12 272.16 340.2 408.24 476.28 544.32 612.36 680.4 PLANT OPERATING RATE, MT/Y OF ETHYLENE

NPV, $ Million

FIGURE (7.4):EFFECT OF PLANT OPERATING RATE ON IRR

31%

31%

30%

30%
IRR

29%

29%

28%

28% 68.04 136.08 204.12 272.16 340.2 408.24 476.28 544.32 612.36 680.4 PLANT OPERATING RATE, MT/Y OF ETHYLENE

19

FIGURE (7.5):EFFECT OF OPERATING RATE ON PROFITABILITY

5900

5400 PLANT DESIGN CAPACITY = 680,400 MT/YEAR 4900

4400
MILLION $/YEAR

NET PROFITS SALES

3900

3400 OPERATING COSTS 2900

2400

1900

1400 374 408 442 476 510 544 578 612 646 680 OPERATING RATE, MT/YEAR

FIGURE (7.6):EFFECT OF NAPHTHA FEEDSTOCK PRICE ON ON NET ANNUAL PROFITS

1400.0

PLANT DESIGN CAPACITY = 680,400 MT/Y OF ETYHLENE

1200.0

OPERATING RATE = 680,400 MT/YEAR

NET ANNUAL PROFITS MILLION $/Y

1000.0

800.0 OPERATING RATE = 544,320 MT/YEAR 600.0

400.0

OPERATING RATE = 408,240 MT/YEAR

200.0

0.0 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 NAPHTHA FEEDSTOCK PRICE, $/Gallon

20

FIGURE (7.7):EFFECT OF CHANGES IN ANNUAL SALES ON PROFITABILITY

1200 1000 800

ANNUAL PROFITS, MILLION DOLLARS

PLANT DESIGN CAPACITY =680,400 MT /Y

600 400 200 0 -200 -400 -600 -800 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00 FRACTIONAL CHANGE IN ANNUAL SALES, $/MT

8. CONCLUSIONS The assessment of liquids cracking in the Kingdom of Saudi Arabia has been shown to be highly profitable. The use of gaseous feedstocks, such as NGL, limits down stream product integration. In the example undertaken in this study, ethylene was reacted with benzene (which is essentially not available from gaseous cracking) to produce styrene and subsequently the important polymer polystyrene. The projects profitability is especially sensitive to naphtha feedstock and products selling prices as well as the operating rate. A rise in naphtha cost from 0.73 $/gallon to 1.02 $/gallon (i.e. an increase of 39.7%) results in a drop in annual profits from 1153.41 $ million to 1124.34 $ million (i.e. a drop of 29.07 $ million per year). The sensitivity analysis also showed that the projects profitability is particularly sensitive to annual operating rate. A decrease in operating rate (due to a drop in market demand for example) from 680,400 tons/year to 544,320 ton/year (i.e. a drop of 20%) will decrease annual profits from 1153.41 $ million to 676.78 $ million (i.e. a decrease of 41%). 9. REFERENCES 1. Jean-Francois Seznec, 41st Middle East Policy Council Capitol Hill Conference, Washington, on Saudi Arabias WTO Accession Panel,3rd January 2006, www.saudi-usrelations.org/articles/2006/ioi/060122-mepc-seznec.html. 2. Moulijn JA, Makkee M., Van Diepen A., Chemical Process Technology, Wiley, New York, pp. 122, 2001. 3. NEXANT PERP Report 04/05-7,Ethylene, September 2005. 4. Moulijn JA, Makkee M., Van Diepen A., Chemical Process Technology, Wiley, New York, pp. 123-125, 2001. 5. Zehnder S, What are Western Europes petrochemical feedstock options?, Hydroc. Process. 77(2), pp. 59-65, 1998. 6. Grantom RL and Royer DJ,Ethylene in: Gerhartz W, et al (eds.) Ullmans Encyclopedia of Industrial Chemistry A10, 5th ed., VCH Weinheim, pp. 45-93.

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7. Calamur N and Carrera M, Propylene in: Kroschwitz JI, Howe-Grant M (eds.) Kirk-Othmer Encyclopedia of Chemical Technology, vol 20, 4th ed., Wiley, New York, pp. 249-271. 8. Sundaram KM, Shreehan MM and Olszewski EF, Ethylene in: Kroschwitz JI, Howe-Grant M (eds.) Kirk-Othmer Encyclopedia of Chemical Technology, vol 9, 4th ed., Wiley, New York, pp. 877-915. 9. Bos Anr and Tromp PJJ,Conversion of methanol to lwer olefins. Kinetic modeling, reactor simulation, and selection,Ind. Eng.Chem.Res. 34 3808-3816,1995. 10. Nilsen, HR,The UOP/Hydro Methanol to olefin process:its potential as opposed to the present application of natural gas as feedstock, Proceedings of the 20th World Gas Conference,Copenhagen, Denmark, 10-13 June, FRT 1-05, 1997 11. Keller GE and Bhasin MM, Synthesis of ethylene via oxidative coupling of methane. I. Determination of active catalysts, J. Catal. 73 9-19, 1982. 12. Lunsford JH,Oxidative coupling of methane and related reactions, in: Ertl G., Knozinger H and Weitkamp J (eds.) Handbook of Heterogenous Catalysis, VCH, Weinheim, pp. 1843-1856 and references therein, 1997. 13. Androulakis IP and Reyes SC, Role of distributed oxygen addition and product removal in the oxidative coupling of methane, AIChE J, 45 860-868 and references therein.

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