Refined Ethylene Oxide Capacity to Grow Rapidly

By Zhang Yueli of China National Chemical Information Center

In 2011, the equivalent output of China’s ethylene oxide reached 3.35 million tons, of which around 65% was used in ethylene glycol co-production; 35% in producing ethoxylate, ethanolamine, glycol ether and other chemicals.

1. High Production Concentration

The world’s main production process is direct ethylene oxidation, and most patent technologies are owned by Shell, SD and Dow Chemical. Enterprises adopting techniques from these three giants contribute more than 90% of ethylene oxide capacity. Some domestic enterprises produce the ethylene oxide by using ethanol, with their capacity accounting for less than 5%.
   China’s capacity of refined ethylene oxide was 1.42 million tons last year – Sinopec, 600 000 t/a, 42%; PetroChina, 240 000 t/a, 17%. Domestic manufacturers produced 1.19 million tons of the products in 2011, when the operating rate was 84%.
Due to low boiling point (10.7℃) at normal pressures, the ethylene oxide is flammable, explosive and hard to transport over a long distance. Both import and export volumes are small, each less than 100 tons from 2006 to 2011, consumed mainly in making fine chemicals like glycol ether, ethanolamine, non-ionic surface active agents, etc.

2. Wide Downstream Products

Around 65% of China’s ethylene oxide is applied in ethylene glycol co-production; the remaining in productions of ethoxylate, ethanolamine, glycol ether, polyether polyol, choline chloride, pharmaceuticals, etc.

Ethoxylate

Ethoxylate, which mainly includes AEO and APEO, accounts for 80% of non-ionic surfactant output.
   An additive product of fatty alcohol and ethylene oxide, AEO is the most important variety of polyoxyethylene nonionic surfactants and is widely used in washing powder, liquid detergent, leveling agent, emulsifier, emulsion splitter, especially civil/industrial washing agent.
   With two series of OP and NP, APEO is mainly dedicated to washing powder, boasting large volume in both output and consumption because of its lower cost. However, as its weakness in biological degradability has been less acceptable in recent years, its consumption has shrunk significantly. APEO is currently applied in oil-soluble detergents/emulsifiers, water-soluble detergents/humectants for textiles, emulsifiers of pesticides and herbicides, auxiliaries for the leather industry and emulsifiers for oilfield drilling. Restricted by new regulations on textile auxiliaries issued by the European Union, APEO is expected to exit the market gradually.
   China’s ethoxylate capacity was higher than 1.7 million tons in 2011, when output reached around 900 000 tons and imports exceeded 200 000 tons.

Ethanolamine

It includes monoethanolamine (MEA), diethanol amine (DEA) and triethanolamine (TEA). MEA is mainly used in producing pharmaceuticals, textile assistants, paper making additives, surfactants, etc.; DEA in surfactants, pesticides, pharmaceuticals, refrigerating fluids, detergents, oil desulfurizers, etc.; TEA in cement grinding aids, cosmetics, rubber chemicals, metal processing aids, chemical weapons, etc.
Domestic ethanolamine consumption has developed rapidly in recent years. With a 470 000 t/a capacity, China produced 310 000 tons of ethanolamine in 2011, when the imports topped 110 000 tons though the State has adopted anti-dumping measures for some imported products since 2004.

Glycol Ether

Glycol ether, which is produced by ethylene oxide and low-grade aliphatic alcohol through chemical reaction, mainly contain 2-methoxyethanol, 2-ethoxyethanol, 2-butoxy ethanol, bis (2-methoxy ethyl) ether, diethylene glycol ether, diethylene glycol monobutyl ether, triethylene glycol monomethyl ether, triethylene glycol monoethyl ether, triethylene glycol monobutyl ether.
   Mainly used as a paint solvent, glycol ether, benefiting from the development of water-based paint, will see 7% (or above) annual growth in solvent applications. 2-butoxy ethanol consumption is expected to grow rapidly. But owing to higher costs of raw materials (butanol), domestic 2-butoxy ethanol is unable to compete with foreign products. Considering safety issues, the growth of both the output and consumption of 2-methoxyethanol and 2-ethoxyethanol will be decelerated.
   Boasting an annual capacity of 330 000 tons in 2011, China produced 130 000 tons of glycol ether and imported 150 000 tons that year.

Others

Besides the abovementioned applications, the ethylene oxide could also be used to make polyether glycol through polymerization reaction with compounds containing active hydric group and propylene oxide under catalysis, synthesize polycarboxylate polyether monomer of water reducing agents, disinfect medical devices and precise instruments, and to preserve food.
   The ethylene oxide and trimethylamine hydrochloride could synthesize choline chloride, which has seen demand growth in recent years due primarily to China’s feed industry.
   As many as 5 000 kinds of ethylene oxide downstream products are made in Japan, but only around 300 varieties are made in China, where the demand for ethylene oxide is expected to grow, as the country has only applied the products for a short term in spice, dye, coatings, and chemical fiber oil.

3. Rapid Growth in Capacity

The tight supply of oil and ethylene, and the high price of ethylene make the costs of ethylene oxide high, but the supply short. China will expand its ethylene oxide capacity – expected to increase 510 000 tons in 2012 and rise more than 1.8 million tons by 2015.
   The world’s first coal to ethylene glycol unit was successfully put into operation by Tongliao GEM Chemical Co., Ltd in 2009. With breakthroughs in the technologies of coal to ethylene glycol, some units producing ethylene glycol by using petro-ethylene will probably be transformed to manufacture ethylene oxide only, which will be supplied mainly to areas beyond ethylene glycol.
   China’s capacity of refined ethylene oxide is expected to grow rapidly in the next five years. However, because of high costs generated by expensive ethylene, the domestic ethylene oxide market may be unable to stop downstream producers from importing ethylene oxide heavily. With operation of newly-constructed units and development of coal to ethylene glycol technologies, ethylene oxide production concentration is expected to be weakened and units’ average operating rate will be lower.
Table 1 China’s Main Refined Ethylene Oxide Manufacturers in 2011  (t/a)
Company    Capacity    Production Technology
Sinopec Yangzi Petrochemical Co., Ltd    200 000    SD Technology
Sinopec Shanghai Petrochemical Co., Ltd    136 000    SD Technology
Jiaxing Sanjiang Chemical Co., Ltd    180 000    SD Technology
Sinopec Zhenhai Refining & Chemical Company    100 000    Dow Technology
AkzoNobel    73 000    SD Technology
Dynamic (Nanjing) Chemical Industry Co., Ltd    60 000    SD Technology
Shandong Tengzhou Chenlong Energy Sources Group Co., Ltd    50 000    Alcohol Method of SD Technology
Fengyuan Suzhou Biochemical Industry Co., Ltd    20 000    Alcohol Method
PetroChina Jilin Petrochemical Company    110 000    SD Technology
PetroChina Liaoyang Petrochemical Company    100 000    Shell Technology
Liaoning Huajin Chemical Industry (Group) Co., Ltd    100 000    SD Technology
PetroChina Fushun Petrochemical Company    30 000    Shell Technology
Sinopec SABIC Tianjin Petrochemical Co., Ltd    40 000    Dow Technology
Sinopec Tianjin Petrochemical Company    38 000    Shell Technology
Sinopec Beijing Eastern Petrochemical Co., Ltd    24 000    SD Technology
Sinopec Beijing Yanshan Company    17 000    SD Technology
CNOOC and Shell Petrochemicals Co., Ltd    100 000    Shell Technology
Sinopec Maoming Petrochemical Co., Ltd    42 000    Shell Technology
Total    1 420 000