What's New
Results of a study into the technical and economic feasibility of using bitumen or bitumen-derived feedstock to produce ethylene and other petrochemicals were outlined in a report released in January, 2003. The study was completed in July 2002, by a team of consulting engineers led by T. J. McCann and Associates Ltd. It was sponsored by the Alberta Energy Research Institute, in partnership with Shell Chemicals Canada Ltd., Suncor Energy and NOVA Chemicals. The "Petrochemicals from Oil Sands Study" examines the opportunity for an integrated refinery and petrochemical complex near Edmonton, Alberta.
Alberta's vast oil sand deposits hold an estimated 1.6 trillion barrels of oil, with 311 billion barrels considered economically recoverable using current technology. Production, which averaged 645,000 barrels per day (bpd) in 2001 is expected to reach 1.9 bpd by 2010.
Today, refiners regard bitumen to be the bottom half of the barrel, consisting primarily of middle and heavy distillates and up to 15% residuum. It is usually thermally or catalytically cracked with old technology to yield high quality distillates essential to gasoline and diesel. It also yields by-products - light naphtha and liquid petroleum gases (LPGs) rich in olefins and aromatics. These distillates are mixed to make an upgraded bitumen or synthetic crude that meets refinery specifications. Experts suggest that bitumen upgrading by-products, particularly olefins, could be cost-competitive inputs in an expanded Alberta petrochemical industry.
The study proposes that development of the suggested project occur in three stages:
Stage one uses by-produced synthetic LPGs from existing upgraders (Syncrude and Suncor) as feedstock to yield additional ethylene, propylene and derivatives.
Stage two cracks currently available heavy-gas oil to increase the yield of ethylene and propylene, as well as aromatics, naphtha and diluents.
Stage three uses bitumen to yield conventional refinery distillates, such as gasoline and diesel, as well as syngas, benzene, paraxylene and other products. An additional Fischer Tropsch module would produce marketable products from the syngas.
The study contains a description of all process technologies, details of calculations (spreadsheets) and process flow diagrams. The yield at completion of stage (3) includes:
- 1,110 kilotonnes per annum (kta) of ethylene
- 1,430 kta of propylene
- 510 kta of benzene
- 720 kta of paraxylene
- 39,000 bpd of C4 alkylate
- 25,000 bpd of naphtha
- 45,000 bpd of jet fuel and diesel
The complex would be a point source of 12,000 tonnes/day of pure CO2. This gas could be easily captured and used to enhance oil recovery from nearby oil fields or to augment natural gas recovery from seams of subbituminous coal.
The capital cost of the project is estimated at $8.5 billion Canadian with a 15% internal rate of return. The study concludes "a highly integrated viable bitumen to high-value petrochemicals and premium refined products industry can be developed in Alberta".
For more information on Petrochemicals From Oil Sands Study, contact:
- Ed Condrotte, Director, Chemicals/Petrochemicals
For more information on the oil sands and other Alberta energy resources, contact the:
A recently completed study identifies three propylene derivatives as being superior prospects for investment in Alberta. The study, "Alberta Propylene Upgrading Prospects" by T. J. McCann and Associates, estimates that by 2005, approximately 280 thousand tonnes per annum of propylene will be available from byproduct sources in Alberta. McCann estimates the cost will be about two cents per pound lower than at the U.S. Gulf Coast. The report discusses a number of propylene derivatives that could be produced in Alberta, but three, polypropylene, acrylonitrile and acrylic acid stood out as having superior potential.
A study to examine the economic potential of producing polystyrene (PS) in Alberta, "Alberta Polystyrene Production Options" by Harry Blair Consultants, has concluded that "the base case project profitability is quite attractive". An economic model was developed to evaluate the profitability of constructing and operating a crystal/impact PS plant in Alberta, using local styrene monomer (SM) as feedstock, and shipping the product to consumers in Alberta, North America and Asia. The model takes input as project costs (capital and expense), inflation, operating rates, feedstock and product prices, logistics costs, corporate tax rate and GDP deflator; and generates the Net Present Value (NPV) of a stream of real cash flows at a given discount rate, as well as the project earning power (EP). The results were an attractive NPV, and a strong real EP.
A recently completed Comparative Cost study indicates Alberta is still the lowest cost location to build a petrochemical facility.
For more information on Chemicals & Petrochemicals, contact:
- Ed Condrotte, Director, Chemicals/Petrochemicals
