China’s HRPIB Sector Needs to Expand Applications

By Wang Yingmiao, Jilin Design Institute of CNPC Northeast Refining & Chemical Engineering Co., Ltd

Highly reactive polyisobutylene (HRPIB) is mainly used to produce ashless dispersants for lube oil, and detergents for gasoline and fuel oil. In addition, HRPIB can be used to make transmission oil, hydraulic fluid, insulating oil, metalworking fluid, etc.

Good development trend in Asian market

In 2013, the capacity to make HRPIB around the world reached 385 000 t/a, and the output was around 260 000 tons. BASF is the largest HRPIB producer in the world, and the 50 000 t/a HRPIB unit of BASF-YPC Co., Ltd was put into operation in Nanjing,China January 2012.
In recent years, due to unsaturated demand in Asian market, the world’s production of HRPIB has been actively transferring to Asia. Nippon Petrochemicals Co., Ltd has developed HRPIB technology and rebuilt a 20 000 t/a polyisobutylene unit of Kawasaki into an HRPIB unit. Lebarin of the United States is also preparing to enter the Asian HRPIB market. In addition, TPC Group (a petroleum company in Texas of the United States) will also expand its polyisobutylene and HRPIB capacity.
Global consumption of HRPIB was around 235 000 tons in 2008, and reached 266 000 tons in 2013. Major HRPIB consumption regions include Asia, Europe and North America. North America is the largest HRPIB consumption region, accounting for 50% of the world total. Asia is the region with the fastest HRPIB consumption growth in the world.
At present, major consumption sectors of HRPIB in foreign countries include high-end lube oil, ashless dispersant and emulsifier for emulsion explosives, etc. In 2013, the consumption mix of HRPIB in the world was 60% for the production of ashless dispersants for lube oil, 30% for producing detergents for gasoline and fuel oil, and 10% for other purposes.


Table 1    China’s HRPIB producers in 2013  (kt/a)

Producer    Location    Capacity
BASF-YPC Co., Ltd    Nanjing of Jiangsu province    50
Fine Chemical Factory of PetroChina Jilin Petrochemical Co., Ltd    Jilin of Jilin province    20
Shandong Weifang Binhai Petrochemical Co., Ltd    Weifang of Shandong province    10
Total        80

Table 2    China’s supply and demand for HRPIB in recent years  (kt)

Year    Output    Import volume    Export volume    Apparent consumption
2009    9.8    3.8    -    13.6
2010    9.8    6.8    -    16.6
2011    4.2    10.5    -    14.7
2012    12.3    4.4    -    16.7
2013    13.4    4.9    -    18.3



The domestic technology and market urgently need breakthroughs

PetroChina Jilin Petrochemical Co., Ltd began to develop HRPIB technology in 2001, successfully developed an HRPIB product using BF3 catalytic system in 2003, and built a 3 000 t/a HRPIB unit – China’s first HRPIB production unit. The HRPIB product of PetroChina Jilin Petrochemical Co., Ltd entered the market and quickly replaced imported products. At present, PetroChina Jilin Petrochemical Co., Ltd is the largest HRPIB producer in China.
In 2007, Shandong Weifang Binhai Petrochemical Co., Ltd funded and built China’s second HRPIB unit, with a capacity of 10 000 t/a. Due to technical and cost problems, the unit is now idle.
BASF signed a "50 000 t/a HRPIB Cooperation Intention Letter" with Sinopec Yangzi Petrochemical Co., Ltd in 2008. The  50 000 t/a HRPIB unit was completed and put into operation in January 2012, resulting in changes in the domestic supply and demand for HRPIB.
In 2013, China had three HRPIB units, major product brands included 1000, 1300, 2300 and 3300, the capacity to make HRPIB reached 80 000 t/a, actual output was only 13 400 tons and the overall operating rate was only 17%. The main reason for this was that the market was slack and the demand for HRPIB was not too large. China’s HRPIB producers in 2013 are listed in table 1.
In the long run, the replacement of traditional polyisobutylene by HRPIB is the general trend. Guangxi Qinzhou Mid-Asia Petrochemical Technology Co., Ltd has planned to construct a 20 000 t/a HRPIB unit.

Expansion of applications

In 2009, the domestic output of HRPIB was only 9 800 tons, and HRPIB in China was in seriously short supply. China’s output of HRPIB reached 13 400 tons in 2013 with an average annual output growth of 8.1% during 2009-2013, and apparent consumption climbed from 13 600 tons in 2009 to 18 300 tons in 2013 with an average annual growth of 7.8%.
In 2009, China imported around 3 800 tons of HRPIB. Driven by demand, the import volume increased in 2011 to 10 500 tons. Due to the startup of BASF-YPC Co., Ltd’s HRPIB unit in 2012, the import volume declined considerably. In recent two years, China’s import volume of HRPIB has remained around 4 000 tons. China’s supply and demand of HRPIB in recent years are listed in table 2.
The domestic applications of HRPIB are mainly concentrated in ashless dispersant and emulsifier for emulsion explosives. Beginning from the startup of the first HRPIB unit of PetroChina Jilin Petrochemical Co., Ltd, HRPIB products quickly entered the markets of lube oil additives and emulsifier of emulsion explosives, thus making the domestic lube oil additives and emulsifiers enter the international market. Rapid development of the market for downstream products has promoted the growth of HRPIB demand in China.
In the next few years, with the constant growth of lube oil and gasoline output, China’s consumption of lube oil will maintain rapid growth. The demand for lube oil additives and gasoline detergents will increase, and considering the demand in making special sealing materials, foods, etc., constant growth of HRPIB demand will certainly be promoted.
Due to raw material and cost problems, the overall operating rate of HRPIB units in China is low.