CONCEPT PAPER

Naptha Cracker Unit

Concept Paper Series | Manufacturing | Version 1 | Serial No. MFG-12

Prepared on Novem er 2!" 2##$ %& 'r. (unaid )*mad +nvestment )dvisor Government of Pa,istan Ministr% of Finance -./ternal Finance 0ing1 234 loc," Pa,istan Secretariat +slama ad. 5el& 672-81 72#98#:

Naptha Cracker Unit

Fa/& 672-81 72#98#: .-Mail& dr;unaid.mof<c% er.net.p, INTRODUCTION Petroc*emical products ma% e roadl% classified into t=o groups -a1 asic" and - 1 end-products. 5*e 2 asic product group4 includes et*%lene" prop%lene" utadiene and aromatics" =*ile 2end-product group4 includes plastic" s%nt*etic fi ers and elastomers. 5*ese petroc*emical products offer an ideal su stitute for conventional materials suc* as =ood" metals" ;ute" natural ru er" etc. in =*ic* Pa,istan is deficient. 5*erefore" t*ere is all t*e more reason and urgenc% for setting up a Napt*a >nit in t*e countr%. )t present" t*e petroc*emical industr% of t*e countr% is limited to production of PVC Pol%vin%l C*loride ased on imported VCM" s%nt*etic fi ers" i.e. pol%ester" pol%amide" aromatics -?en@ene" 5oluene" A%lene1" Purified 5erept*alic )cid -P5)1 and car on lac,. ) Napt*a Crac,er >nit is regarded as one of t*e est routes to produce various petroc*emicals. Petroc*emical products currentl% form an essential ase for t*e production of a =ide range of industrial" intermediate and consumer products. +nfact" t*e petroc*emical industrial su -sector continues to pla% an important part in t*e development of t*e manufacturing sector t*e =orld over. MARKET / NEED ASSESSMENT 'uring last t*ree decades repeated efforts *ave een made to develop a pro;ect capa le of producing asic petroc*emicals. +n t*is connection" numerous studies *ave een carried out for production of asic petroc*emicals i.e. et*%lene" prop%lene" etc. utili@ing alternate feed stoc,s i.e. napt*a" associated gases -et*ane" propane1" natural gas and molasses -a % product of sugar industr%1. Bo=ever" despite interest and some efforts" no significant development *as ta,en place as far as production of asic petroc*emicals in t*e countr% is concerned. Factors responsi le for non-development of countr% ma% include& asic petroc*emical industr% in t*e

Big* capacit% of =orld scale asic petroc*emical production facilities. Comple/it% and *ig* level of t*e tec*nolog% involved. Big* level of capital outla% reCuired. Mar,et si@e limitations vis-D-vis =orld scale plants at t*at time Eelativel% lo=er differential in tariffs of imported ra= material and end product in t*e countr%

Baving stated t*e a ove" t*e mar,et in t*e countr% *as no= developed to a level t*at an economic si@e Napt*a Crac,ing >nit *as ecome feasi le. 5*e demand for ma;or petroc*emical products upto 2#1# is presented elo=&

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Naptha Cracker Unit

Product

Plastic -P." PP" PVC G PS1 S%nt*etic Fi er -Pol%ester" )cr%lic G Viscose" etc.1 Pol%ester +nputs& P5) F8#.## M.G 1$#.## )romatics H ?5A 2#.## Para/%lene 9##.## S%nt*etic Eu er 2#.## Tota' "()$*+!! Source: Enar Petrotech Services

Consumption !!"#! !!$#!% F#9.## 818.## 8##.## :##.## 8:#.## 22#.## 28.## 9$8.## 28.## (, !+!!

Estimated Demand !!&#"! :1#.## 7##.## :2#.## 99#.## 9#.## F8#.## 9#.## *("-!+!!

5*e ta le a ove ;ustifies setting up of a Napt*a Crac,er >nit. Bo=ever t*e pro;ect s*all e economical if a prudent polic% is adopted and adeCuate incentives are offered" suc* as tariff ad;ustment et=een end-products and t*e ra= material. Furt*er" t*e import data provided in t*e ta le reveals t*at a ma;or portion of Pa,istan4s total imports consist of petroc*emicals" i.e." et*%lene" prop%lene" utadiene" en@ene" toluene" /%lene and t*eir derivatives. +t is t*us" essential t*at serious efforts e made to manufacture t*ese petroc*emicals locall% in order to save foreign e/c*ange and to attain self-reliance. )s stated a ove" t*e reCuirement of all olefins and aromatics in t*e countr% is presentl% eing met t*roug* imports. )nal%sis of t*e import data reveals t*at an eCuivalent demand of 2##"### tons et*%lene e/ists in t*e countr% per %ear. 5*e ta le elo= depicts t*e situation& -M. 5ons1 Products A.era/e Annua' Imports A.era/e Annua' E0ui.a'ent Eth1'ene Demand 12$"F8! 9"2#2 17"2F# 9"19! F"81# 97"8:! 9"9FF "&&(,-!

Pol%et*%lene 12$"F8! Pol%prop%lene 77"27F ?utadiene 18"28# Pol%vin%l C*loride $!":21 St%rene 11"::1 Pol%st%rene 1$"71$ M.G 1$$":72 P5) 1#"$89 Tota' $"$()$$ * July-December Source: Fe real !ureau o" Stastics

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Naptha Cracker Unit

'o=nstream industries ased on Petroc*emical products suc* as paints" plastics" s%nt*etic fi ers" ru er" etc. *ave gro=n considera l%. 5*erefore" t*e Napt*a Crac,er >nit is ver% muc* needed to meet t*e do=nstream gro=ing demand in t*e countr% and to esta lis* strong ac,=ard integration for t*e development of ot*er non-traditional sectors. T2E PROPOSED PRO3ECT 5*e o ;ective of t*e Pro;ect is to set up a Napt*a Crac,er >nit in Pa,istan. 5*e scope of t*e pro;ect is envisaged as under& )rrangement of Iand and +nfrastructure. )rrangement of eCuipments mac*iner% and tec*nolog%. )rrangement of ra= materials for t*e plant from local refineries. )rrangement of BE'H training for t*e manpo=er. Iiaise =it* Customers.

5*e present reCuirement is of a Napt*a Crac,er >nit of 2##"### M5PJ capacit% -as t*e eCuivalent demand of et*%lene1. 5*is plant =ill e a le to process a out $8#"### tons per %ear napt*a of =*ic* appro/imatel% $##"### M5PJ is locall% availa le at present. 5*e plant s*all %ield t*e follo=ing products per %ear& .t*%lene Prop%lene ?utadiene Fuel Gas Gasoline Tota' 2##"### tons 12$"### tons :F"### tons 11$"### tons 12F"### tons %,!(!!! tons

5*e Napt*a Crac,er >nit is proposed to e set up at Karac*i to *ave t*e advantage of Cuic,l% receiving ra= materials and liaise =it* oil refineries. TEC2NO4O56 E7A4UATION 5*e tec*nolog% for t*e production of petroc*emicals from oil" % *%dro crac,ing or napt*a crac,ing" is =ell ,no=n and esta lis*ed. Napt*a is a refiner% %-product of crude oil. 5*ese are *%drogenated to get t*e desired asic petroc*emical olefins. 5*e Napt*a Crac,er =ill *elp to ma,e olefins -et*%lene" prop%lene etc1 and it *as no direct role for t*e manufacturing of aromatics -?5A1. 5*e aromatics are separated from t*e reformat of an oil refiner%. IN7ESTMENT AND RETURNS +t is to e noted t*at a Napt*a Crac,er >nit4s capacit% is defined % t*e output of et*%lene from t*at plant. 5*e cost of a 2##"### M5PJ Napt*a Crac,er >nit =ill e appro/imatel% >SL 9## million. 5*e appro/imate cost of do=n stream pol%et*%lene and pol%prop%lene plants is li,el% to e >SL 8## million. 5*us" t*e total cost comes out to e around >SL !## million. 5*e +EE of t*e unit is e/pected to e 22M.
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