Plant Location and Site Selection

The location of the project always have important aspect on the profitability of a project and
scope of further expansion if necessary. Some of the crucial factors must be considered when
selecting a suitable location which are discussed in the following sections.

General Plant Location

Traditionally over the years, many chemical manufacturing plants have been located near the
coastal areas. This is the most common criteria for importation of raw materials and exportation
of products. However, for a suitable site of any kind of chemical plants, it must fulfil a number
of criteria that are inherent to that specific location. [1] It is important to realize that the rising
development in Malaysia would escalate the current land price as most of land are being used
up for housing development projects and not all the available industrial zones provide the
necessity for a chemical plant.

Overview on Several Locations

As mentioned previously, the choice of the plant location is not only based on the geographical
point of view but also includes several other aspects. Since MTBE is classified under
Petrochemical Industry, it would be a best choice to locate the plant in a petrochemical complex.
The reason is due to abundancy of raw material feedstock and shared utilities for major plant
operation such as electricity and water supply. [2]Currently, Malaysia has 4 main Integrated
Petrochemical Complexes namely;

1) Kertih Integrated Petrochemical Complex (KIPC)

2) Gebeng Integrated Petrochemical Complex (GIPC)

3) Pasir Gudang-Tanjung Langsat Industrial Complex

4) Bintulu Industrial Park

Teluk Kalong Industrial Park

Teluk Kalong Industrial Estate earmarked in the East Coast Economic Region and it is situated
within the KIPC.KIPC houses the Petronas Petrochemical Integrated Complex (PPIC) that
links the entire range of the oil and gas value chain - beginning from upstream exploration and
production to the final stage of petrochemical manufacturing. Terengganu’s industrial land is
among the cheapest in Malaysia, at RM0.18 - RM5.60 per square feet and a total of 125.10
hectares of land available in Teluk Kalong Industrial Zone. [3]

Electricity is supplied by Tenaga National Berhad (TNB) at tariff rate for medium voltage
industrial tariff ranging RM 23.40-RM 30.80 per kWh. Water supply is treated and distributed
by the Terengganu Water Company (SATU).At current moment, both portable water is
supplied to industrial and domestic usage. The price of water supply for industrial tariff use is
RM1.15 per m3.Industrial gas is supplied by Petronas Gas Malaysia and negotiable rate based
on the quantity demanded.

Some of the facilities includes Kertih and Kuantan Port which holds centralized tank facilities
mainly for bulk liquid port. Terengganu major industrial locations are served by 3 airport
facilities; Kuantan, Kertih and Kuala Terengganu.

In terms of raw material supply, isobutylene will be imported from Honeywell’s UOP which
houses for the largest capacity of isobutylene production unit in China. [4] Methanol on the
other hand can be imported directly from Petronas Methanol, Labuan.

Pasir Gudang-Tanjung Langsat Industrial Complex

Pasir Gudang, located next to the Johor Port, is now an established industrial area. To cope
with the needs of the growing petrochemical industry, the adjacent Tanjung Langsat site has
been developed to enhance manufacturing capacity.[2]Located in the southeast of Johor where
companies has established in the palm oil based and petrochemical downstream industries. A
total 385.47 hectares of land still available with a selling price RM28.00-32.00 per square feet.
[5]

Electricity is supplied by Tenaga Nasional Berhad (TNB) and the price would be similar to
those in Teluk Kalong Industrial Park which is at tariff rate for medium voltage industrial tariff
ranging RM 23.40-RM 30.80 per kW. Water supply is distributed by Syarikat Air Johor at a
price of RM3.30 per m3 of water. [6]Some of the facilities include Johor Port, Tanjung Pelepas
Port and Tanjung Langsat Port located adjacent to the industrial area. One of the unique feature
in Tanjung Langsat Industrial Park is that it has tank farms serve as bulk storage for
petrochemical liquid.

Gebeng Integrated Petrochemical Complex (GIPC)

Gebeng Integrated Petrochemical Complex or better known as GIPC situated within the
municipality of Kuantan, the capital of Pahang. It is an integrated self-contained petrochemical
complex comprising principally of propylene-based petrochemical plants and centralised
utility facilities. GIPC located 25km from Kuantan town and currently 1528.5 hectares of land
available. The selling price of Gebeng Industrial Zone is RM18.00 per square feet. [7]

The main electricity supplier in Gebeng Industrial Estate is Tenaga Nasional Berhad (TNB)
with a tariff rate ranging RM 23.40-RM 30.80 per kW. The water supply in Gebeng Industrial
Estate is supplied from the Semambu Water Treatment Plant. The current capacity of water
supply is 2MG/day. Currently, the natural gas suppliers for Gebeng Industrial Estate are Gas
Malaysia and Petronas Gas Berhad. They supply industrial gases within the estate to cater for
the high demand from existing and future petrochemical projects in the area.

Accessibility to Gebeng Industrial Estate is excellent. The East Coast Highway which links
Kuantan and Kuala Lumpur has an estimated travel time of just 2 hours. In addition, a railway
link connects the integrated petrochemical complex in Kerteh (Terengganu) to Gebeng and
Kuantan Port. This railway link further strengthen the chemical and petrochemical linkage
between Gebeng and other industrial centres thus ensures safe transport as compared to
transportation of dangerous goods by road. [8]

Bintulu Industrial Park

Bintulu is home for largest producer of liquefied natural gas (LNG) in Malaysia. There are 3
integrated LNG plants with a total capacity of 23 million tonnes of production a year.
Sarawak’s renewable energy resources has been a major asset for green technology based
industries. However, there is no information available on the land available to date but the
selling price in the range of RM2.19-RM2.69 per square feet.[11] A total of 155 possible
hydropower sites with an estimated capacity of up to 20,000 MW would able to cater the entire
industrial zone and Sarawak as a whole. [9]

In Bintulu, electricity is provided by Sarawak Electricity Supply Corporation (SESCO) and

generated through gas turbines. However, for major industrial consumers, individual
generation of electricity through steam and gas turbine is permitted by government. The
electricity tariff for industrial zone is currently in the range between RM16.00-RM20.00 per
kW. Water is supplied by The Bintulu Water Supply Treatment Plant has a designed capacity
of 77 million litres per day at a price RM1.32 per m3. [10]
 Pasir Gudang-Tanjung Gebeng Integrated
Teluk Kalong Industrial
Langsat Industrial Petrochemical Complex Bintulu Industrial Park
Park
Complex (GIPC)
Distance from nearest 91.43 km from Johor
9.6 km from Kemaman 37.4km from Kuantan 224.29 km from Sibu
district/town Baharu
Area available 125.10 hectares 385.47 hectares 1528.5 hectares N/A
Land price(RM/ft2) RM0.18 - RM5.60 RM28.00-32.00 RM18.00 RM2.19-RM2.69
Sarawak Electricity
Tenaga National Berhad Tenaga National Berhad Tenaga National Berhad
Electricity supplier Supply Corporation
(TNB) (TNB) (TNB)
(SESCO)
Electricity tariff(RM/kW) RM 23.40-RM 30.80 RM 23.40-RM 30.80 RM 23.40-RM 30.80 RM16.00-RM20.00
Terengganu Water Semambu Water Treatment Bintulu Water Supply
Water supplier Syarikat Air Johor
Company (SATU) Plant Treatment Plant
Water tariff(RM/m3) RM1.15 RM3.30 N/A RM1.32
Johor Port, Tanjung
Kertih and Kuantan
Port Facilities Pelepas Port and Tanjung Kertih and Kuantan Port Bintulu Port
Port
Langsat Port
Choice of Location

All the possible site location mentioned above have their own pros and cons. However, among
the 4 possible location, it can be concluded that Teluk Kalong Industrial Estate will be the most
strategic location to choose as a site for MTBE production. As discussed earlier, the production
of MTBE, together with remaining by-product aimed directly at the export market and also the
need of port facilities as major importance. Not only based on the low utilities and land prices,
but also consistent supply of bulk oil, gases and raw materials requires port facilities that is
convenient for both parties. Besides that, the transport of materials and products to and from
the plant can be an overriding consideration as the infrastructure in Terengganu consistently
rising and upgrading. Therefore, the accessibility through roads is not an issue.

Capacity of the Plant

Based on several readings on literature background of the process chosen, the production
capacity of our designed plant will be at 300,000 tonnes of MTBE per year. There are few
principal factors need to be considered for our selection on the capacity of the plant which
includes:

1. MTBE global demand and local Malaysian market

2. Availability of raw material in terms of quality and quantity so that plant can operate for a
period of more than 30 years

3. Availability of sufficient utilities such electricity, water, and other infrastructural facilities.

As discussed earlier in previous section, the global demand of MTBE is still peaking up and
has a great opportunity for even higher capacity production. The global market demand for
MTBE is expected to reach 20.7 million tonnes by 2022, retained by continuous use in gasoline
blending as a prevention solution to reduce air emission. In countries such as U.S, Japan and
parts of Europe has classified as a pollutant and banned due to serious contamination to the
groundwater. Currently these countries are moving towards ETBE as a replacement which are
proven to be more environmental friendly. However, MTBE is still being one of the most
favoured oxygenates in China, Middle East and parts of South East Asia.[12]
China currently holds as the largest producer of MTBE with an estimated share of 45.7% of
the world market. The reason behind is due to the high availability of feedstock and at a cheaper
prices. In Asia, the quality of MTBE is major concern as in 2012, 13 out of 15 of the world’s
polluted cities are in Asia according to Asian Clean Fuel Association (ACFA). [13] A
consistent growth in the end use industries such as automobile industries boost the demand for
MTBE. Malaysia with a current population nearly 32 million people with 284,461 vehicles
registered as at June 2017 according to Malaysian Automotive Association (MAA). [14] It is
expected total of 750,000 to 800,000 units of vehicles will be sold by 2020. [15]
This statement provides a strong evidence to high demand of MTBE in the next 5 or 10 years.
However, the emerging green technologies such as biofuel as an alternative to gasoline could
tremendously change the global market. Nevertheless, the debate on biofuel as a substitute still
going on and it will require long period of transition to occur.

The availability of raw materials which are isobutylene and methanol is abundant and can be
obtained easily at low price in bulk. However, raw materials must be acquired at high purity
for the production or otherwise there will be no assurance in the quality of the product produced.
Petronas Methanol (Labuan) Sdn.Bhd able to provide high grade methanol with a purity of
(99 .9999 wt. %) and at a total capacity of 2.4 million tonnes per year. This ensure there is
continuous supply of raw materials without any constraints. [31]

Other criteria includes utilities such as water and electricity supply are crucial for continuous
production without any maintenance plant shutdown. In terms of facilities, tank farms and
warehouses must be built within the parameter of the plant in order to store raw materials and
products. The storage area must be placed between the loading and unloading bay. This is to
provide a smooth flow of materials through the various processing units, from raw material to
final product storage. In addition to the main processing units, effluent disposal plant such as
wastewater treatment plant should have the capacity to treat solid or liquid waste from the
process. [16]

3.3 Complete Description of Process Chosen

MTBE is produced via direct addition of methanol to isobutylene with the aid of catalyst, where
isobutylene is obtained from fluid catalytic cracking (FCC) operations in refineries as a by-
product. Crude C4 is a hydrocarbon that consist of mainly isobutylene (10-25wt. %), 1, 3-
butadiene (50 wt. %), butenes (15-30wt. %) and butanes (5-15wt. %). However, isobutylene is
the only compound that can react directly with methanol and can be obtained from suppliers
while the others has no ability to react. [17]

In this subtopic, we will highlight step-by step on how and what are the processes involve at
each of unit operator. As being discuss in part 2, there are some steps involve; from refining of
isobutylene until MTBE production. The unit may be divided into 4 sections, which are [18]

1. Primary reaction
2. Separation of MTBE
3. Separation of C4 from methanol
 4. Methanol extraction and recovery

Primary Reaction

High purity fresh methanol will be pumped to the MTBE unit reaction sections on flow control.
It is then combine with isobutylene from mixed C4 stream through FCC cracking. The molar
ratio of methanol to isobutene in the feed stream from the combination of the fresh feed and
the recycle is about 1:1. Methanol to isobutene ratios in the range of about 0.99 to about 1.02
found to be very effective.[19]Etherification is a process of converting alcohol into ether which
has high octane rating, and beneficial for gasoline blending. They are also used in gasoline to
enhance its burning and to reduce harmful exhaust emissions.

MTBE
Isobutylene
Di-isobutylene
In Mixed C4 stream
Packed Bed Dimethyl ether
Reactor Unreacted Methanol
Fresh Methanol TBA
& Recycle Mixed C4
Water

The parameters that should be considered during the etherification are its temperature and
pressure. Since the reaction is exothermic, the reactor effluent is higher than the temperature
of feed. It is processed under low temperature, about 40-90°C and its maximum temperature is
fixed by the bubble point of the reactor effluent at the pressure of the system. [20] Higher
temperature should be avoided to prevent deactivation of catalyst. The pressure used must be
sufficient to maintain the liquid phase in the presence of a catalyst, thus the recommendation
pressure is 1.0MPa.

The chemical reaction of the process is defined as below:

Other than MTBE production, there are some others product formed from side reactions. The
main by-products from the side reactions are di-isobutylene, dimethyl ether (DME) and tertiary
butyl alcohol (TBA). The equation for side reactions are shown as below:
(CH3)2C (CH2) + (CH3)2C (CH2) ↔ (CH3)3C (CH) C (CH3)2

Isobutylene + Isobutylene ↔ Di-isobutylene

(CH3)OH + (CH3) OH ↔ (CH3) O (CH3) + H2O

Methanol + Methanol ↔ Dimethyl ether + Water

(CH3)2C (CH2) + H2O ↔ (CH3)3C (OH)

Isobutylene + Water ↔ Tertiary butyl alcohol

However, if highly pure isobutylene were to use for the reaction, the possibilities of side
reaction is very minimal. Therefore, the synthesis of MTBE has to be carried out selectively.

Chemical Reaction and Kinetics (Kunin et al., 1962)

The reaction of methanol (MeOH) with isobutylene (IB) to produce MTBE can be shown as
follows

MeOH + S MeOH.S

IB + S IB.S

MeOH + IB.S + (n-2) S MeOH.S+ (n-1) S

MTBE.S MTBE + S

Where S stands for active site and assuming n actives sites is used. Taking the surface reaction
as the rate limiting step, the resulting rate equation in terms of activity of the individual specials
can be denoted as:

Where kr denotes the forward reaction constant, Ki is the adsorption equilibrium constant of
species i, ai is the activity of the species in liquid phase at specified temperature and n is
constant. [21]
Separation of MTBE
Di-isobutylene
Dimethyl ether
Unreacted Methanol
TBA
Mixed C4
MTBE Water
Di-isobutylene
Dimethyl ether Distillation Column
Unreacted Methanol
TBA
Mixed C4
Water MTBE

The reaction is continued with separation of MTBE products from unreacted C4’s, methanol
and other by-products formed from the reaction. Since methanol forms an azeotrope with
butenes contained in the MTBE reactor effluent therefore it is not possible to separate this
material by distillation. As a result the overhead from the column contains a mixture of C₄'s
and unreacted methanol. Therefore, methanol contained in the column feed up to the azeotrope
limit is carried into the tower reaction zone. MTBE formed is removed from the reaction zone
by distillation.

Hence, it allows the MTBE reaction to proceed well beyond the limit set by chemical
equilibrium. MTBE and methanol form a minimum-boiling azeotrope where methanol is
stripped from the MTBE product in the stripping section of the column. The addition of
methanol must be carefully controlled to avoid excessive methanol in MTBE product. [18] The
temperature used during handling this reaction is between 68.3°C – 71.1°C (155-160oF) and
overhead pressure is between 0.59-0.86MPa (85-125psia). [19] MTBE product is produced at
98 wt. % and leaves at the column bottoms while methanol-rich C4 distillate is sent to the
methanol-recovery section. [22]
Separation of C4 from methanol

As being discussed in previous section, the wash water column is required for further separation
of C4 and methanol through application of liquid-liquid extraction. The methanol will be sent
back on the recycle stream for recovery after being separated from C 4. During this reaction,
water is used since methanol is highly soluble in water. If desired, the C₄ product can be utilized
as an excellent feed material to the alkylation process. [23] The resulting methanol-water
mixture will be fed into fractionator whereby methanol will be recovered and recycled back to
the reactor. The operating condition will be pressure of 0.83 MPa (120 psia) and 38oC
temperature. [19]

Di-isobutylene
Dimethyl ether
Di-isobutylene TBA
Dimethyl ether Mixed C4
Unreacted Methanol
TBA
Mixed C4 Wash Water Column
Water

Methanol-
Water mixture

Water
Methanol Recovery Unit (MRU)

As stated above, methanol forms an azeotrope with C4’s. Thus, excess methanol up to the
azeotrope limit entering with the feed is carried overhead in the column along with unreacted
C4’s and lighter components. This excess methanol is recovered by washing the overhead
stream with water. The methanol and water is further recycled back to the etherification process
and liquid-liquid extraction column respectively. The operating pressure can be done at 0.21-
0.34 MPa (30-50psia) to recover high purity methanol. [19]

Methanol

Methanol-
Water Mixture Methanol Recovery
Column

Water
Table 1: Thermodynamic data for Methanol, isobutylene, MTBE[24]
Component
Properties
Methanol Isobutylene MTBE
Ideal gas enthalpy formation , J/kmol -20.0940 × 107 -1.7100 × 107 -28.3500× 107
Ideal gas Gibbs energy formation , J/kmol -16.2320 ×107 5.8080 × 107 -11.7500× 107

Ideal gas entropy, J/ (kmol. K) 2.3988 ×107 2.9309 × 107 3.5780× 107
Standard net enthalpy of combustion , J/kmol -0.6382 ×109 -2.5242 ×109 -3.1049×109
T min, K 175.47 132.81 164.55
Ps, at T min 1.1147 × 10-1 6.2213 × 10-1 5.3566× 10-1
T max, K 512.64 417.9 497.1
Ps, at T max, Pa 8.1402 × 106 3.9760 × 106 3.4106× 106
Density at T min 27.912 13.506 9.7682
Density at T max 8.521 4.203 3.039
Critical temperature, Tc ( K) 512.64 417.9 497.1
Critical Pressure, Pc (Pa) 8.14 × 106 3.98 × 106 3.41
Critical Volume, Vc, m3/ kmol 0.117 0.238 0.329
Compressibility factor, Zc 0.566 0.272 0.272
Heat vaporization, ∆Hv at T min (J/ kmol) 4.4900× 107 2.8262 × 107 3.6096× 107
Heat vaporization , ∆Hv at T max 0 0 0
Heat Capacity, Cp at T min 0.7112 × 105 1.0568× 105 1.5388× 105
( 164.55K)
(J/ kmol)
Heat Capacity, Cp at T max 1.1097 × 105 1.4596 × 105 1.9786 × 105
(343.15K) (328.35K)
(J/ kmol-K)
5 5
Cp at T min at ideal gas state (200K) (J/ kmol- 0.3980 × 10 0.6763× 10 1.0394× 105
K)
Cp at T max at ideal gas state (1500K) (J/ kmol- 1.0533 × 105 2.2814 × 105 3.4321× 105
K)
Table 2: Thermodynamic data for dimethyl ether, TBA, Diisobutylene and water[24, 25]
Component
Properties
Dimethyl ether TBA Diisobutylene Water
Ideal gas enthalpy formation , J/kmol -18.4100 × 107 -31.2400× 107 -2.593× 105 -24.1814× 107
Ideal gas Gibbs energy formation , J/kmol -11.2800 × 107 -17.7600× 107 - -22.1814 × 107

Ideal gas entropy, J/ (kmol. K) 2.6670 × 107 3.2630 × 107 3.2803×105 1.8872 × 107
Standard net enthalpy of combustion , J/kmol -1.3284 ×109 -2.4239 ×109 -440 ×105 0
T min, K 131.65 298.97 313 273.16
Ps, at T min 3.0496 5.9356 ×103 - 6.1056 ×102
T max, K 400.1 506.21 - 647.13
Ps, at T max, Pa 5.2735 × 106 3.9910 ×106 - 21.940×107
Density at T min (lb/ft3) 18.95 10.555 44.198 55.583
Density at T max 5.858 3.621 - 54.703
Critical temperature, Tc ( K) 400.1 506.21 557.27 647.13
Critical Pressure, Pc (Pa) 5.27×106 3.99×106 2.712 ×106 21.94×106
Critical Volume, Vc, m3/ kmol 0.171 0.276 0.45 0.056
Compressibility factor, Zc 0.271 0.262 - 0.228
Heat vaporization, ∆Hv at T min (J/ kmol) 2.6032 × 107 4.6073× 107 34.4 0.7615 × 105
Heat vaporization , ∆Hv at T max (J/ kmol) 0 0 - 0
Heat Capacity, Cp at T min 0.9836 × 105 2.2016 × 105 2.4249 × 105 0.7615 × 105
(298.96K) (298.15K)
(J/ kmol-K)
5 5
Heat Capacity, Cp at T max 1.0314 × 10 2.9455× 10 0.214× 105 0.8939 × 105
(250K) (460K) (300.1K)
(J/ kmol-K)
5 5
Cp at T min at ideal gas state 0.5436 × 10 0.8567× 10 0.13058× 104 0.3336 × 105
(200K) (200K) (100K)
(J/ kmol-K)
5 5 4
Cp at T max at ideal gas state 1.6581 × 10 2.8508× 10 0.53974× 10 0.5276 × 105
(1500K) (1500K) ( 2273.15K)
(J/ kmol-K)
Environmental Consideration

There are several environmental potential issues associated in the production of MTBE from
fluid catalytic cracking (FCC) unit which is air emission, wastewater, hazardous material and
waste of the by-product and the used catalyst. The flue emitted from the stack to the atmosphere
during the regeneration of catalyst in the FCC unit. The flue gas consists of carbon dioxide
(CO2), nitrogen oxides (NOX), sulphur oxides (SOX), carbon monoxide (CO) and particulates
[26 27]. Carbon monoxide is the product of incomplete combustion in the FCC regenerator of
the coke-burning reaction [27]. The emission of sulphur dioxide to the atmosphere can cause
acid rain. In order to decreasing the emission of the SOX the operating should go for full
combustion. The emission of nitrogen oxides can be reduced by addition of the solid reducing
agents that promote the formation of N2 from NO. In addition, the installation of the flue gases
scrubbing helping to reduce the particle emission and sulphur dioxide [28].

The synthesis of MTBE can be grouped into ‘wet’ or ‘dry’ based on the methanol extracted
from the unreacted C4-hydrocarbon stream. In wet process, the water used to wash the
hydrocarbon-methanol stream then the methanol will extracted and recycle. The excess
methanol is separated and recycles by using the separation column. No usage of water in the
dry process so there will be any wastewater [29]. The waste water may be treated in the sewage
treatment plant and can be reused back for other purposes.

The MTBE may be released during manufacturing and in the blending of MTBE with the
gasoline. Total annual MTBE release in the industrial emissions in the U.S. in 1992, were 3
million pounds: 2.8 million pounds to air, 100 thousand pounds to surface water, 68 thousand
pounds to underground injection sites, and 288 lb to the land as reported on the Toxics Release
Inventory. The emission vapour of MTBE from gasoline blended with MTBE will contribute
substantially to atmospheric levels. During 1987-1988 in the United States the annual mean
concentration of MTBE in the atmosphere was estimated to be <0.2 ppb [30].In order to reduce
the emission vapour of MTBE during the manufacturing process, additional scrubber will be
required to reduce the concentration.

Furthermore, the MTBE can cause the pollution to the soil when it is release to the atmosphere.
There are two treatment technologies that can remove the MTBE from the soil which is soil
vapour extraction (SVE) and Low temperature thermal desorption. These technologies should
be use before and after the releasing of MTBE to the surrounding to moves the MTBE from
soil to groundwater. These methods are favourable because of its high vapour pressure and also
effective in removing MTBE from soil. Soil vapour extraction (SVE) that removes volatile
contaminants from soil in the un-saturated zone above groundwater by extracting the
contaminant vapours with a vacuum that is applied to the sub surface. Secondly, Low-
temperature thermal desorption (LTTD) that uses temperatures below ignition levels to
separate volatile contaminants from soil .SVE is in-situ soil treatment technology and LTTD
is an ex-situ soil treatment technology [31].

Since the conversion of isobutylene is high which is 98%, the possibilities of by-product
formation is very low and if even it exist it will be in minimal concentration. Therefore, the by-
products is not recovered by further separation and instead can be classified as scheduled waste.
However, higher product recovery leads to less waste formation and can be done through
additional separators or distillation columns. These benefits must always be traded of against
capital and energy cost otherwise the waste generated can be categorised as primary pollutants
and can be treatment by third party.

Spent catalyst or adsorbent on the other side are solid waste from the process. In the current
production plant, the average duration of deactivation can take up to more than 1 year
depending on the purity of feed as even small amount of contaminants can cause catalyst or
adsorbent to become useless. The catalyst should not be thrown away and can be regenerated
through additional series of reaction. [16]

Safety Consideration

It should be a common practise to identify all the possible hazard in a plant as safety is an
uttermost priority. The production of MTBE involves a high volume of hazardous chemical;
methanol, isobutylene, acid resin catalyst. So the storage and handling the chemical should be
proper according to the characteristic of the chemical in material safety data sheet (MSDS). In
terms of process safety, the chosen process runs at a temperature between 40 and 90oC pressure
between 0.5 to 1.0x 106 Pa which is comparably lower. [6] Since the process runs at lower
temperature and pressure, it has much higher flexibility in terms of operation and controlling.
However, high temperature more than 90oC is not feasible as it might lead to catalyst
deactivation. [8] Besides that, MTBE is non-reactive and does not react with air, water or other
substances such as stainless. Thus the possibility of reaction with oxidizing agents is very low.

MTBE is chemically inert as it will not decompose easily at room temperature and pressure.
The physical state of MTBE in liquid at room temperature does not require special handling
such as pressurized cylinder tanks. The container and the handing equipment should be
grounded to prevent the static build-up that result from the vapor explosion [30] .As discussed
in previous sections, MTBE is highly flammable and must be kept away from any ignition
sources. Moreover, combustion of MTBE may produce CO2 and reactive hydrocarbons
However, proper handling of MTBE in a confined area would minimize the hazard risk.
Control of liquid transfer operation can be done by using variable volume tanks with exhaust
air and good ventilation system.

Isobutylene is classified as extremely flammable gas thus it must be kept from heat, sparks,
flames or even under the sun for long hours. Isobutylene is made up of liquefied gas and under
high pressure as it may explode if heated or even friction with rough surfaces such as sliding
or dragging the cylinders. It is advisable to have check valves during discharge to prevent the
liquid from getting back into cylinders.

Methanol on the other hand is highly flammable and toxic and must be placed in a specialized
fire proof containment with good ventilation. Although methanol is stable under normal
conditions, it is highly reactive towards oxidizing agents, reducing agents, metal powders and
etc. Thus it is always recommended to look for Safety Data Sheet (SDS) when handling any
type of chemicals. When it is concluded that an exposure problem does exist, proper hazard
management decision must be taken to protect the people and the surrounding. It is not limited
to protected platforms, stairs and work areas but also in other aspects as well. Proper personal
protective equipment (PPE) must be worn throughout the plant operation within the premises.
Since most of the chemicals are highly flammable, suitable PPE such as gloves, safety goggles,
respiratory mask, jackets and safety boots should be worn all the time.

Health Consideration

As mentioned in previous section, MTBE is highly volatile and evaporates quickly when
exposed to air. Any leakage of MTBE may affect the groundwater as it is highly soluble. It
may cause unpleasant smell and taste especially from a contaminated drinking water.
[13]Continuous exposure of MTBE can lead to serious implications to humans such as
irritation, acute and non-cancer health effects. The occupational exposure to MTBE may occur
by inhalation during the production, transportation, disposal and blending into the gasoline. In
the united states the estimated number of the worker exposure to the MTBE is 900 000
professional drivers, 300 000 mechanics, 150 000 gasoline station workers, 7700 distribution
workers, 1500 transport workers, 1800 blending workers and 880 manufacturing workers.[32]
At present, there is no much proven records of health related issues of MTBE since most of the
effects are due to short term implication under low dosage. However, high dose of MTBE may
possibly lead to chronic diseases and kidney failures which are observed under rat specimen.
In terms of carcinogenicity, effects of MTBE were observed in animals by both oral and
ingestion. It increases tumor development both sexes within 24 months of continuous
inhalation. [33] Despite of inadequate human evidence for the carcinogenicity of MTBE,
International Agency for Research on Cancer (IARC) classified as non-cancer causing agent
to humans. [35]However, United States has banned the usage of MTBE and classified as
Hazardous Air Pollutant (HAP) under the U.S Clean Air Act Amendments (1990) due to the
proven testing carried under laboratory. Since then, MTBE consumption has significantly
decreased especially in U.S and most of the companies have moved to ethanol as an alternative.
[34]

Advantages and disadvantages of direct process of MTBE from isobutylene and

methanol
Advantages Disadvantages
Produce high purity of MTBE which is 98 % Formation of azeotropes; the azeotropes of
[20]. The total conversion of isobutylene also methanol with MTBE and azeotropes of C4
higher 90-95%. hydrocarbons with methanol. The separation
of these components is difficult by
distillation column[36]. In addition the
purification of MTBE is expensive[20].
Lower reaction temperature and exothermic The rate of reaction is limited because the
reaction [20]. The reaction is reversible. The limited solubility of isobutylene in
catalyst high activity and selectivity in the condensed phase[38].
etherification process[37].
The separation of product (MTBE) from the Formation of by-product if the temperature
methanol and isobutylene undergo water increase and therefore the selectivity
washing process. However, the process is decreases[40].
economically because, the water wash can
used for recycle and the methanol
recovery[39].
Similar Plant in Malaysia [41]

Company Name MTBE Malaysia Sdn.Bhd

Total Capacity 300,000 metric tons per year

Plant Location Gebeng Integrated Petrochemical

Complex(GIPC)

Land Area 36 hectares and net book value (NBV) of RM

126,077 million as at 31/12/2016

Current holding title Largest MTBE capacity plant in South East

Asia

Date of commissioning December 1992

Number of shares 779,447,798 ordinary shares issued with

purchase consideration of RM1,332.90
million

Main Use As an octane additive to enhance octane

levels improving fuel burning and reduce air
emission.

Primary Feedstock Butanes and Methanol

Projected Demands/Supply for Next 10 years

MTBE world demand has experienced fast paced growth for the past few decades, but it is now
showing a stable trend. In 1998, world consumption of MTBE was 19.5 million metric tons
representing annual growth rate of 12%.However, in year 2000, the trend shows up to 20
million tons with US consumption decreasing due to US Clean Air Act while other parts of
countries still growing. [42] From Argus MTBE Annual 2017 report, shows that some countries
in Asia and Latin America are facing lack of facilities and are importing fuels from neighboring
countries. Total MTBE consumption has reached 22.4 million ton/yr. in 2016 and expected to
reach 26.5 million ton/yr. by 2021.
In order to cope up with the increasing world demand, it is possible to establish a new plant in
such a critical period of industrial revolution. In Asia point of view, MTBE demand in China
has increased by years driven by high quality fuel regulations. China is by far being the largest
producer and consumer in the world is still importing MTBE demand due to insufficient
amount to support own country’s rising development. With a total population of 1.4 billion
people, China seeks for international imports of MTBE from neighboring countries such as
Malaysia, Saudi Arabia, Taiwan and etc. Generally, overall MTBE growth is much lower in
US, Canada, Japan and Western Europe but Asia Pacific, Latin America and Middle East will
continue to grow.

Moreover, latest market report on MTBE in China published in July 2017 shows the overall
price trend shows a drastic decline. This probably due to the rising production of MTBE and
domestic MTBE prices continue to be weighed down by low crude prices and weak demand.
The latest trend shows that the MTBE price in China is about CNY5, 000/ton (RM3188/ton).
 [43]

Jinling Huntsman New Materials Co, a joint venture between China’s Sinopec and US’s
Huntsman, is scheduled to start up Methyl Tertiary Butyl Ether (MTBE) unit, with a 742,000
ton/year MTBE capacity in June or July 2017, according to market sources. This will create a
huge impact on the global production as new plants are rising to support the demand for
oxygenates. Despite, the announcement of new MTBE plants, China is likely to remain an
importer for the long term. Therefore, supply is expected to remain abundant for next few years
globally.[44]

Most importantly based on Figure 1, Malaysia makes up the 3nd largest exporter of MTBE and
holds a great future for the next 10 years in the international market. Malaysia being one of the
largest petrochemical hub in South East Asia with low-cost gas availability have grown
significantly due to the flexibility of MTBE and the future world price of crude oil plays an
important rule equally. Similarly in Malaysia, demand of MTBE increases due to increasing
automobile industries which require cleaner fuel as it provides anti-knocking properties to the
vehicle engines. It is forecasted that MTBE demand will continuously grow for the next 10
years globally. Once the new MTBE plant is put into full operation, we may seek to export
volumes globally especially to China and Middle East countries. [45]
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