CONCEPT PAPER

Naptha Cracker Unit

Prepared on November 28, 2006 by:
Dr. Junaid Ahmad
Investment Advisor
Government o Pa!istan
"inistry o #inan$e %&'terna( #inan$e )in*+
,-. b(o$!, Pa!istan /e$retariat
Is(amabad.
0e(: 122345 2206407
#a': 122345 2206407
&3"ai(: dr8unaid.mo9$yber.net.p!
Naptha Cracker Unit
INTRODUCTION
Petro$hemi$a( produ$ts may be broad(y $(assiied into t:o *roups %a+ basi$, and %b+
end3produ$ts. 0he ,basi$ produ$t *roup. in$(udes ethy(ene, propy(ene, butadiene and
aromati$s, :hi(e ,end3produ$t *roup. in$(udes p(asti$, syntheti$ ibers and e(astomers.
0hese petro$hemi$a( produ$ts oer an idea( substitute or $onventiona( materia(s su$h
as :ood, meta(s, 8ute, natura( rubber, et$. in :hi$h Pa!istan is dei$ient. 0hereore,
there is a(( the more reason and ur*en$y or settin* up a Naptha ;nit in the $ountry.
At present, the petro$hemi$a( industry o the $ountry is (imited to produ$tion o P<=
Po(yviny( =h(oride based on imported <=", syntheti$ ibers, i.e. po(yester,
po(yamide, aromati$s %>en?ene, 0o(uene, @y(ene+, Puriied 0ereptha(i$ A$id %P0A+
and $arbon b(a$!. A Naptha =ra$!er ;nit is re*arded as one o the best routes to
produ$e various petro$hemi$a(s. Petro$hemi$a( produ$ts $urrent(y orm an essentia(
base or the produ$tion o a :ide ran*e o industria(, intermediate and $onsumer
produ$ts. Ina$t, the petro$hemi$a( industria( sub3se$tor $ontinues to p(ay an
important part in the deve(opment o the manua$turin* se$tor the :or(d over.
MARKET / NEED ASSESSMENT
Durin* (ast three de$ades repeated eorts have been made to deve(op a pro8e$t
$apab(e o produ$in* basi$ petro$hemi$a(s. In this $onne$tion, numerous studies have
been $arried out or produ$tion o basi$ petro$hemi$a(s i.e. ethy(ene, propy(ene, et$.
uti(i?in* a(ternate eed sto$!s i.e. naptha, asso$iated *ases %ethane, propane+, natura(
*as and mo(asses %a by produ$t o su*ar industry+. Ao:ever, despite interest and some
eorts, no si*nii$ant deve(opment has ta!en p(a$e as ar as produ$tion o basi$
petro$hemi$a(s in the $ountry is $on$erned.
#a$tors responsib(e or non3deve(opment o basi$ petro$hemi$a( industry in the
$ountry may in$(ude:
Ai*h $apa$ity o :or(d s$a(e basi$ petro$hemi$a( produ$tion a$i(ities.
=omp(e'ity and hi*h (eve( o the te$hno(o*y invo(ved.
Ai*h (eve( o $apita( out(ay reBuired.
"ar!et si?e (imitations vis3C3vis :or(d s$a(e p(ants at that time
De(ative(y (o:er dierentia( in taris o imported ra: materia( and end produ$t in
the $ountry
Aavin* stated the above, the mar!et in the $ountry has no: deve(oped to a (eve( that
an e$onomi$ si?e Naptha =ra$!in* ;nit has be$ome easib(e.
0he demand or ma8or petro$hemi$a( produ$ts upto 2050 is presented be(o::
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Naptha Cracker Unit
Product
Consumption Estimated Demand
!!"#! !!$#!% !!&#"!
P(asti$ %P&, PP, P<= F P/+ E06.00 454.00 750.00
/yntheti$ #iber %Po(yester,
A$ry(i$ F <is$ose, et$.+
400.00 700.00 200.00
Po(yester Inputs:
P0A E40.00 470.00 720.00
"&G 560.00 220.00 660.00
Aromati$s G >0@ 20.00 24.00 60.00
Para'y(ene 600.00 664.00 E40.00
/yntheti$ Dubber 20.00 24.00 60.00
Tota' "()$*+!! (,!+!! *("-!+!!
Source: Enar Petrotech Services
0he tab(e above 8ustiies settin* up o a Naptha =ra$!er ;nit. Ao:ever the pro8e$t
sha(( be e$onomi$a( i a prudent po(i$y is adopted and adeBuate in$entives are oered,
su$h as tari ad8ustment bet:een end3produ$ts and the ra: materia(.
#urther, the import data provided in the tab(e revea(s that a ma8or portion o Pa!istan.s
tota( imports $onsist o petro$hemi$a(s, i.e., ethy(ene, propy(ene, butadiene, ben?ene,
to(uene, 'y(ene and their derivatives. It is thus, essentia( that serious eorts be made
to manua$ture these petro$hemi$a(s (o$a((y in order to save orei*n e'$han*e and to
attain se(3re(ian$e.
As stated above, the reBuirement o a(( o(eins and aromati$s in the $ountry is
present(y bein* met throu*h imports. Ana(ysis o the import data revea(s that an
eBuiva(ent demand o 200,000 tons ethy(ene e'ists in the $ountry per year. 0he tab(e
be(o: depi$ts the situation:
%". 0ons+
Products
A.era/e Annua'
Imports
A.era/e Annua'
E0ui.a'ent Eth1'ene Demand
Po(yethy(ene 526,E48 526,E48
Po(ypropy(ene 22,22E 3
>utadiene 54,240 6,202
Po(yviny( =h(oride 68,725 52,2E0
/tyrene 55,775 6,568
Po(ystyrene 56,256 E,450
"&G 566,722 62,478
P0A 50,646 6,6EE
Tota' $"$()$$ "&&(,-!
* July-December
Source: Fereal !ureau o" Stastics
Do:nstream industries based on Petro$hemi$a( produ$ts su$h as paints, p(asti$s,
syntheti$ ibers, rubber, et$. have *ro:n $onsiderab(y. 0hereore, the Naptha =ra$!er
;nit is very mu$h needed to meet the do:nstream *ro:in* demand in the $ountry and
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Naptha Cracker Unit
to estab(ish stron* ba$!:ard inte*ration or the deve(opment o other non3traditiona(
se$tors.
T2E PROPOSED PRO3ECT
0he ob8e$tive o the Pro8e$t is to set up a Naptha =ra$!er ;nit in Pa!istan. 0he s$ope
o the pro8e$t is envisa*ed as under:
Arran*ement o Hand and Inrastru$ture.
Arran*ement o eBuipments ma$hinery and te$hno(o*y.
Arran*ement o ra: materia(s or the p(ant rom (o$a( reineries.
Arran*ement o ADDG trainin* or the manpo:er.
Hiaise :ith =ustomers.
0he present reBuirement is o a Naptha =ra$!er ;nit o 200,000 "0PI $apa$ity %as
the eBuiva(ent demand o ethy(ene+. 0his p(ant :i(( be ab(e to pro$ess about 640,000
tons per year naptha o :hi$h appro'imate(y 600,000 "0PI is (o$a((y avai(ab(e at
present. 0he p(ant sha(( yie(d the o((o:in* produ$ts per year:
&thy(ene 200,000 tons
Propy(ene 526,000 tons
>utadiene 7E,000 tons
#ue( Gas 556,000 tons
Gaso(ine 52E,000 tons
Tota' %,!(!!! tons
0he Naptha =ra$!er ;nit is proposed to be set up at Jara$hi to have the advanta*e o
Bui$!(y re$eivin* ra: materia(s and (iaise :ith oi( reineries.
TEC2NO4O56 E7A4UATION
0he te$hno(o*y or the produ$tion o petro$hemi$a(s rom oi(, by hydro $ra$!in* or
naptha $ra$!in*, is :e(( !no:n and estab(ished. Naptha is a reinery by3produ$t o
$rude oi(. 0hese are hydro*enated to *et the desired basi$ petro$hemi$a( o(eins.
0he Naptha =ra$!er :i(( he(p to ma!e o(eins %ethy(ene, propy(ene et$+ and it has no
dire$t ro(e or the manua$turin* o aromati$s %>0@+. 0he aromati$s are separated
rom the reormat o an oi( reinery.
IN7ESTMENT AND RETURNS
It is to be noted that a Naptha =ra$!er ;nit.s $apa$ity is deined by the output o
ethy(ene rom that p(ant. 0he $ost o a 200,000 "0PI Naptha =ra$!er ;nit :i(( be
appro'imate(y ;/K 600 mi((ion. 0he appro'imate $ost o do:n stream po(yethy(ene
and po(ypropy(ene p(ants is (i!e(y to be ;/K 400 mi((ion. 0hus, the tota( $ost $omes
out to be around ;/K 800 mi((ion. 0he IDD o the unit is e'pe$ted to be 22L.
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