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Disseminated Document A Study on Energy Efficiency Index in Petrochemical Industry LOGO AStd E Effii Id i Disseminated Document A St u d y on E nergy Effi c i ency I n d ex i n Petrochemical Industry DepartmentofAlternativeEnergyDevelopmentandEfficiency(DEDE) AStudyonEnergyEfficienc yIndexinPetrochemicalIndustry   Petrochemical Industry is one of the most important primary industries to Thailand’seconomicdevelopment.Itisthefoundationofwidevarietyof industrial production processes such as plastic and container industry, textile industry, rubber industry, agricultural and fertilizer industry.These industries help create tremendous value added to Thailand exporting sector.In 2006, the exporting values of upstream, intermediate and downstream petrochemicalproductsare27,694,41,729 and 15,1468millionBaht,respectively.Inaddition, the country also savesmillions of bath peryearon importing goods.The utilization of natural gasintheprocessisalsoarightdirectiononincreasethevalueoflocallyavailablerawmaterial which, in turn, benefit to Thai’s economy and society as a whole.Continued expansion of this industrialsectorisforeseeableinthefuture. Production process of petrochemical industry is considered one of the most energy intensiveoperations.Duetoincreaseenergyconsumptiontrendofthisindustryandtocorrectly accommodate the future economic expansion, it is important to facilitate this industry to efficientenergymanagementinitiativesin orderto optimizethewholeprocesswhilemaximize thebenefit.Inadditiontothegainfromenergyconservationandhigherenergyefficiency,this willenhancethecapabilityofthe industrytocompeteonthe globalscale.Fromthese reasons, the Department of Alternative Energy Development and Efficiency (DEDE), a responsible governmental body who oversee the industrial energy management, considers this important strategy and duty to promote the increase in energy efficiency of petrochemical industry. The activitieswillbecarriedoutundertheEnergyConservationandPromotionActsof1992. One strategy which the Department of Alternative Energy Development and Efficiency has been executed to urge the industry about the energy efficiency is the analysis of energy usage per production unit (Energy Index, EI).Hence it is DEDE’s initiative to develop Energy Consumption of Petrochemical Industry in Thailand project to use the energy consumption data of this industry as a step to develop energy benchmarking standard. Moreover, the acquired information may be evaluated for preparation of energy efficiency index and energy conservation of each manufacturer. Finally, the outcome of this project may lead to the right directionondefiningtheappropriatefutureplanforenergyconservationplanofpetrochemical industry. Thisreport istodistributetheresultofthisprojectwhichincludestheanalysisofenergy consumption index of petrochemical industry, approach on promotional plan for energy conservation, and techniques for efficient energy usages. Authors hope that this report will furtherbemoreorlessusefultostakeholdersandanyinvolved parties. PREFACE DepartmentofAlternativeEnergyDevelopmentandEfficiency(DEDE) AStudyonEnergyEfficienc yIndexinPetrochemicalIndustry CONTENT  PREFACE  CHAPTER 1: OVERVIEWOFTHAILANDPETROCHEMICALINDUSTRY 1 1.1ThePetrochemicalIndustryStructure 1 1.2TypesofPetrochemicalIndustry 4 1.3PetrochemicalFeedstock 6 1.4HowPetrochemicalIndustryAffectsEconomicSystem 7 1.5EnergyConsumptionofPetrochemicalIndustryinThailand 12 CHAPTER 2 :ENERGYCLASSIFICATIONOFPETROCHEMICALINDUSTRY 14 2.1ClassificationofPetrochemicalIndustry 14 2.2ProductionProcesses 15 CHAPTER3:ENERGYCONSUMPTIONINPETROCHEMICALINDUSTRY 22 3.1EnergyConsumptionIndex 22 3.2SpecificEnergyConsumption(SEC) 23 3.3 EvaluationofEnergyIntensity(EI) 29 CHAPTER 4:THEPROMOTIONOFENERGYCONSERVATION 31 4.1ProblemsinPetrochemicalIndustry 31 4.2SWOTAnalysis 32 4.3PromotionalPlanforEnergyConservationInThePetrochemical 33 CHAPTER5:TECHNOLOGYANDMEASURESFORENERGYCONSERVATIONIN PETROCHEMICALINDUSTRY 36 5.1DevelopmentandImprovementofProductionTechnology 36 5.2EnergyEfficiencyImprovementforProcessesandEquipments 40 SUMMARY 48 REFERENCES 50 LISTOFABBREVIATION 52 pro d 1.1 refi n che m oil ad m pur p pet r pro d pet r Petroc h d uctssucha s  ThePet r Whilet h n ingindustr y m icalprodu c themselves. m inistrations p ose of th e r ochemical p d ucing a h o r ochemicali n Source: P Figure1 2 4 6 8 1 0 1 2 1 4 1 6 1 8 Production(KTA) De h emicals  r e s crudeoil, n r ochemic a h epetroche m y inthatitu c ts.Genera  Even th o fortheirre f e  oil indu s p roducts as o st of che m n dustryfro m P TIT,2007 Production 14,2 5 ‐ 2 ,000 4 ,000 6 ,000 8 ,000 0 ,000 2 ,000 4 ,000 6 ,000 8 ,000 T o I n partmentof A e fer to hyd r n aturalgasa a lIndustr y m icalindus t sessomepr lly,compani o ugh there f ineryandt h s try busine s their by‐pr o m ical produ m 2003to20 0 ofThailand’ 39 5 ,707 2,597 5,935 2003 o talProducti o n termediateP 1.OVER V A lternativeE n A St u dy r ocarbon or g ndnaturalg y Structu r t ryisparto f oductsfro m es which pr are some h eirpetroch e s s is to pr o ducts.Me a cts, as sh o 0 6.   spetroche m 15,034 5,887 2,81 8 6 , 2004 o n etrochemical V IEWO F n ergyDevelo p onEnergyEff i g anic chem i ascondensa r e f thechemic a m theoilrefi n o duce petr o which do s e micalprod u o duce ene r a nwhile, the o wn in Fig u m icalindustr y 15,66 0 6, 2 8  , 329 2 Year U s D F PETRO C p mentandEff i i ciencyInde x i n i cals produ c tesasraw m a lindustry, i n eryasraw o chemicalpr s o, they w o u ction.Ino t r gy, getting  petrochem u re 1 prod u y fromyear 2 0  1 2 19 3,004 6,436 2 005 U pstreamPet r D ownstream P C HEMIC A iciency(DED E n Petrochemic a c ed using p e m aterials. i tdiffersfro m materialsfo oducts do n ould have t herwords, t raw mat e ical industr y u ction of T 2 003to200 6 6,372 5,945 3,891 6,5 3 2006 r ochemicals P etrochemica l A LINDU S E ) a lIndustry e troleum m theoil rspecific otrefine separate t hemain rials for y  aims at hailand’s 6 . 3 6 l s S TRY 1 DepartmentofAlternativeEnergyDevelopmentandEfficiency(DEDE) AStudyonEnergyEfficienc yIndexinPetrochemicalIndustry 2 In general, the petrochemical industry uses raw materials from the petroleum industry to manufacture products such as plastic resins, synthetic fibers, synthetic rubbers, surface coating materials and various types of adhesives.These products are considered primary raw materials for human beings’ basic consumption items, occupational tools and equipment, and various amenities  for mankind.Figure 2 shows the links between the petroleum industry and petrochemicalindustry;Figure3showsthestructureofThailand’spetrochemicalindustry.         Figure2Thailandpetroleumandpetrochemicalne twork   S o o urce: PTIT, 2 0 De 0 06 partmentof A Figure 3 Th A lternativeE n A St u dy ailand petroc h n ergyDevelo p onEnergyEff i h emical com p p mentandEff i i ciencyInde x i n p lex flows iciency(DED E n Petrochemic a E ) a lIndustry 3 DepartmentofAlternativeEnergyDevelopmentandEfficiency(DEDE) AStudyonEnergyEfficienc yIndexinPetrochemicalIndustry 4 1.2TypesofPetrochemicalIndustry The petrochemical industry is classified into 3 main groups, on the basis of their products(asshowninFigure4).  UpstreamPetrochemicalIndustry  IntermediatePetrochemicalIndustry  DownstreamPetrochemicalIndustry   Figure4OverviewofThailandpetrochemicalindustry   1.2.1UpstreamPetrochemicalIndustry Upstreampetrochemicalindustryisthe productionofpetrochemicalproductswhich are feedstock for further production of other petrochemical products (intermediate and downstream).Itconsists of 7 kinds of products,  or “the Seven Sisters”, which are divided into thefollowing3groupsonthebasisoftheirmolecularstructure:  Alkanegroup,which is methane‐based  Olefingroup,whichisethylene‐based,propylene‐basedandMixedC 4 ‐based  Aromaticgroup,whichisbenzene‐based,toluene‐basedand xylene‐based Supporting: Infrastructure, Logistic, HR, Finance, Rules& Regulations Valuechain component Key activities • E&P • Oil Refinery • Gas separation • Olefins - Ethylene - Propylene • Aromatics - Benzene - Para- Xylene • Plastic Resins Commodity (PE, PP, PVC, PS, EPS, PET) Engineering (PC, POM, PBT*, Nylon 6,6*, PMMA) Synthetic Fibre - Polyester - Nylon 6 - Polypropylene - Acrylic Syn. Rubber/ Elastomers - BR, SBR, EPDM* Syn. Coating/ Adhesives - PVA*, Silicone • Compounding • Olefins - EDC/VCM - EO**/EG** - Oxo Alcohol* - Acrylonitrile* • Aromatics - Ethylbenzene** - Styrene - Cyclohexane** - Caprolactam - Cumene/Phenol** - PTA -PA Conversion Industries Downstream Intermediate Upstream Oil & Gas Note: * No local production, ** Investment in progress DepartmentofAlternativeEnergyDevelopmentandEfficiency(DEDE) ASt udy onEnergyEfficiencyIndexinPetrochemicalIndustry 5 1.2.2IntermediatePetrochemicalIndustry Intermediatepetrochemicalindustryusesupstreampetrochemicalproductsasfeedstock and supplies todownstream petrochemical industry.Its products are groupedon the basis of theirupstreampetrochemicals,asfollows:  AlkaneIntermediates,namely, productsfromupstreammethane,suchasmethanolor methylalcohol,formaldehyde,ammonia,phosgene,etc.  Olefin Intermediates, namely, ethylene products such as ethylene dichloride, (EDC), vinyl chloride monomer (VCM), ethylene oxide (EO), and ethylene glycol (EG), propyleneproductssuchasoxoalcohol andacrylonitrile   Aromatic Intermediates, namely, benzene products such as ethyl benzene (EB), styrenemonomer(SM),cyclohexane,carprolactam,andparaxyleneproducts,etc.   1.2.3DownstreamPetrochemicalIndustry Downstream petrochemical Industry uses upstream or intermediate petrochemical productsasfeedstocktomanufacturedownstreamproductsorendproductspriortoconversion inotherindustries.Theyarecategorizedbyendproduct,asfollows:  Plasticresins  SyntheticFibers  Syntheticrubbers  SyntheticcoatingandAdhesivematerials ดิบสําหรับการผลิตอุตสาหกรรมปโตรเคมี  DepartmentofAlternativeEnergyDevelopmentandEfficiency(DEDE) AStudyonEnergyEfficienc yIndexinPetrochemicalIndustry 6 1.3PetrochemicalFeedstock  Thereare2typesoffeedstockforthepetrochemicalindustry:naturalgasandnaphtha. The selection of feedstock varies on the advantages and disadvantages in the access to the feedstock,andthereforevariesfromonecountrytoanother.Forinstance,incountrieslikethe USA,Canada,andtheMiddleEast, productionofpetrochemicalsisfromnaturalgas,whereasin Japan, Korea, Singapore, and Europe, which do not have natural gas, naphtha is used instead, since it is sold in the world market and is easy to transport. In the case of Thailand, both are used.Thetypeoffeedstockalso determinesthe manufacturingprocessusedbymanufacturing plants.Figure5showsfeedstocksourcesfortheindustry.    Figure5Petrochemicalfeedstock  Gas separation  Wetgas Refinery Crude oil Condensate Splitter Condensate Petrochemical Feedstock Refinedproducts Petrochemical Feedstock Petrochemical Feedstock • Methane • Ethane • Propane‐Butane(LPG) • NGL • LPG • Naphtha‐Gasoline • GasOil–Kerosene, Jet,Diesel • FuelOil • Bitumen • Etc. • LPG • Naphtha • GasOil • LPG • Naphtha Drygas Residue [...]... consumption  of  petrochemical products  in  other  countries.    The  data  shows  the  difference  in  SEC from  product  to  product.    The  energy  consumption depends mainly on products.  The difference in technologies, processes, and raw  materials contribute to the difference in SEC.     Table 10   Specific energy consumption  (SEC)  of petrochemical products in other countries  SEC (MJ/Ton)  SEC average ... This  is  because there are not too many petrochemical plants in Thailand, and presenting too detailed  data may be revealing confidential information of the businesses.      Therefore, petrochemical industry were divided into 3 groups  as follows:  Upstream Petrochemical Industry)  - Olefins Group  - Aromatics Group  Intermediate Petrochemical Industry  Downstream Petrochemical Industry  - HDPE  - PS, PP, EPS ... Aromatics     Table 7 Specific energy consumption  (SEC)  of upstream petrochemical aromatics in year 2003‐ 2006  Upstream Petrochemical ‐ Aromatics SEC (MJ/Ton)  2003  2004  2005  2006  3,000 ‐ 8,700  2,800 ‐ 8,500  3,300 ‐ 17,000  3,100 ‐ 17,000  average  5,708  average  5,425  average  8,146  average  7,960  Average 6,987  Remarks: The values of SEC in 2003 and 2004 are lower than those of 2005 and 2006 because some of the ... industrial  sector,  including  food,  drinks,  textiles,  wood,  chemicals,  paper,  ceramic,  cement  and  metal  (referred  from  energy  consumption  data  from  DEDE’s  energy  consumption  annual  report),  was  selected  to  compare  the  energy  used  in  the  petrochemical industry.    It  was  found  that  the  petrochemical sector  consumes 15 to 17 percent of the total industrial sector’s consumption. ... Polyvinyl chloride(PVC)  Source: Energetics Incorporated, 2000     A Study on Energy Efficiency Index in Petrochemical Industry  Department of Alternative Energy Development and Efficiency (DEDE) Table 11 Specific energy consumption  (SEC)  of petrochemical products in Thailand and other  countries USA  SEC (MJ/Ton)  Thailand SEC (MJ/Ton)  12,561 ‐ 25,120  16,900 – 24,900  Aromatics (BTX)  2,310 ‐ 3,521  3,200 – 17,000 ... 3. ENERGY CONSUMPTION IN PETROCHEMICAL INDUSTRY     22  3.1  Energy Consumption Index  Appropriate calculation of indices of energy consumption in the petrochemical industry  used  in  Thailand  and  worldwide  are:  Specific  Energy  Consumption  (SEC)   and  Energy  Intensity  (EI).    Assessment  is  necessary  in  order  to  lead  to  development  of  plant  efficiency.    SEC is  calculated from the energy that a plant consumes during a cycle of operation, for example, one‐ ... 3.2  Specific Energy Consumption  (SEC)   Analysis  results  of  the  assessment  of  the  30  plants  joining  the  study  project  are  presented in term of overall average, maximum and minimum values of the years 2003‐2006, as  shown in Table 5 and in sections 3.2.1 to 3.2.3.    Table  5 Range  of  specific  energy  consumption  (SEC)   in  MJ/Ton  of  upstream  intermediate  and  downstream petrochemical industry in year 2004‐2006 ...Department of Alternative Energy Development and Efficiency (DEDE) 1.4  How Petrochemical Industry Affects Economic System        1.4.1  The Role of  Petrochemical Industry in Thailand    The petrochemical industry brings in tremendous, uninterrupted revenue to the country  as  show  in  Table  1.    In  year  2006,  total  revenue  from  petrochemical industry  exceed    447.760  million Baht which is equivalent to 6‐percent of gross domestic product  (GDP).  Moreover, the ...  2003                       2004                     20 005                    2006   gure 27  Spe ecific energy consumption  (SEC)  of int termediate p petrochemic cal industry  Fig   Table 8 Specific energy consump ption  (SEC)  o of intermedia ate petrochemical indust try in year 20 003‐ 2006  Int termediate P Petrochemic cal Industry SECav n)  verage (MJ/Ton 2003  2 2004  2005  2006*  2,100 ‐ 10,300  1,900 ‐ 10,5 500  1,900 ‐ 10,500 ... Other types of energy, also estimated from consumption in the production process, are used at  smaller quantities.    A Study on Energy Efficiency Index in Petrochemical Industry  13  Department of Alternative Energy Development and Efficiency (DEDE)  2.CLASSIFICATION OF PETROCHEMICAL INDUSTRY      2.1  Classification of Petrochemical Industry  14  The  petrochemical industry  covers  a  vast  array  of  products,  and  the  manufacturing  processes vary from one product to another.  Sometimes the same products use different in raw  . Upstream Petrochemical Industry  Intermediate Petrochemical Industry  Downstream Petrochemical Industry   Figure4OverviewofThailand petrochemical industry   1.2.1Upstream Petrochemical Industry Upstream petrochemical industryisthe. 1 1.1The Petrochemical IndustryStructure 1 1.2Typesof Petrochemical Industry 4 1.3 Petrochemical Feedstock 6 1.4How Petrochemical IndustryAffectsEconomicSystem 7 1.5EnergyConsumptionof Petrochemical IndustryinThailand 12 CHAPTER 2 :ENERGYCLASSIFICATIONOF PETROCHEMICAL INDUSTRY. yIndexin Petrochemical Industry CONTENT  PREFACE  CHAPTER 1: OVERVIEWOFTHAILAND PETROCHEMICAL INDUSTRY 1 1.1The Petrochemical IndustryStructure 1 1.2Typesof Petrochemical Industry 4 1.3 Petrochemical Feedstock 6 1.4How Petrochemical IndustryAffectsEconomicSystem 7 1.5EnergyConsumptionof Petrochemical IndustryinThailand 12 CHAPTER