Annual Styrene Capacity in Western Europe

Propylene oxide

Propylene oxide is a chemical intermediate mainly used for the production of polyether polyols-which are in turn used in urethane foams, and also in production of propylene glycol, with the remainder consumed in glycol ethers. Propylene oxide is produced from propylene by two routes: mainly chlorohydrin route or to a lesser extent indirect route via hydroperoxidation of isobutane or ethylbenzene producing tertiary butyl alcohol (PO/TBA) or styrene monomer (PO/SM) as co-product respectively. Chlorohydrin route is more energy intensive, produces high by-product yield of little application, and involved chlorine waste disposal. Nevertheless, it remains economically healthy, producing 40 to 50% of PO in the United States. Some propylene oxide is also produced from cumene. Propylene oxide production is widespread outside the Middle East, although projects are now under development in the Middle East.

Styrene

Styrene (also known as vinyl benzene, ethenylbenzene) is a colourless liquid in the Aromatics family. Styrene is a chemical intermediate made from the dehydration of ethyl benzene and a vinyl group on styrene molecule can readily undergo polymerization. Styrene is a monomer used in the production of variety of polymer and rubbers including: polystyrene, ABS, SBR, SBL, and unsaturated polyesters.

Styrenics family

The Styrenics chain are the chemical products and polymers that can be produced from the styrene monomer. Ethylbenzene, the immediate precursor used in the production of styrene is also included in this grouping.

Western Europe

Western Europe is defined as containing the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom

Capacity report

The Capacity Report provides an annual average breakdown of the production capacities available in each region to make petrochemical products. Our analysis however is based on processes, not products ensuring that co-products and feedstock requirements are tracked accurately at each unit. The main graphical report presents the data on a process-type basis. Data can be displayed in a chart or table.

Capacity Share

The Capacity Share report allows the user to quickly review the key players in each product/market. This analysis can be based on either Plant Owner, Marketer or Operator. Data can be displayed in a chart or table.

Company Ownership

Company Ownership provides an analysis of both owners and subsidiaries of the selected company as of a given date, indicating when changes, if any, occurred during the analysis year.

Company Profile

Company Profile allows a user to review the production assets of a company across a range of products on a location by location basis. (Choose "All Products" when choosing a product, not a family or specific product.) Data is displayed in a table.

Expansion report

The Expansion report allows the user to quickly visualise the annual change in production capacity in a given region. Data can be displayed in a chart or table.

Financing

We refer to Financing in our Capacity Analysis to ensure that any planned new capacity has a source of funds to finance the construction of the new unit. This financing can be from the owners, from banks or from Government sources.

Geography report

Geographies Report allows the user to review the regional variation in production assets for a given product. This report is complementary to the main Capacity Report which provides a breakdown by process type. Data can be displayed in a chart or table.

Location

Location is the specific place within a country where a plant is located. The location is usually identified by a city and state or province.

Location Profile

Location Profile allows a user to review the production assets across a range of companies and products in a given region or location. The results are presented as a summation for each product, broken down by process. (Choose "All Products" when choosing a product, not a family or specific product.) Data is displayed in a table.

Marketer

Marketer capacity reflects the proportion of a plants production capability that is marketed by each party based on our understanding from public domain commercial agreements. This is often different to the Plant Owner capacity, especially if one party has far greater experience in petrochemical marketing.

Operator

Operator capacity reflects the proportion of a plants production capability that is the operational responsibility of each party based on our understanding from public domain agreements. This can be different to the Plant Owner capacity, especially if one party is has greater technical expertise / operational experience, or if a joint venture plant is located on one partners site.

Ownership Profile

Ownership Profile provides an analysis of both owners and subsidiaries of the selected company as of a given date, indicating when changes, if any, occurred during the analysis year.

Plant Owner

Plant Owner capacity reflects the proportion of a plants production capability that is due to each owner based on their investment in the asset.

Start-Up

Start-Up refers to the commencing of continuous commercial operation at a new (or newly expanded) petrochemical plant. This Start-Up may be preceded by commissioning and contractual performance test runs.

Top Ten report

The Top Ten report lists the top ten players in each product/market. This analysis can be based on either Plant Owner, Marketer or Operator. Data can be displayed in a chart or table.

Under Construction

A plant is considered as being Under Construction once ground has been broken for civil works on a site. This classification can be reviewed if activity is reported to have been halted at the site.

Overview

The Capacity Analysis provides a detailed listing of the plants and processes available in each region to make the product selected by the user.

Description of Results

The graphic display illustrates the distribution of capacity in a region by process type and how this varies over time as a stacked bar chart. Capacity totals are presented annual average data, with midyear plant start ups having their capacity adjusted accordingly. This graphic can alternatively be viewed as a stack of regional contributions by selecting the “geographies report” option.

The table option presents a line by line analysis of the capacity ownership at each plant on an owner by owner basis. A separate line can appear in this report per product produced on the plant (location reports can report on all products produced from a given unit; this can also be seen by pressing the red “(p)” at the end of each line) as well as per owner. This ownership split means that a single plant can have two separate line records if the “plant ownership”, “marketing” or “operator” responsibilities are spread across a number of companies. The country listings in the capacity table can be separately ordered by company, location or process by clicking on the respective column titles.

Description of Analysis

Nexant records capacity by process, ownership and date of startup or other major change in capacity. Annual capacity data therefore includes feedstock and co-product ability, any share in ownership as well as the partial capacity availability if startup or expansion occurred mid-year. Capacity data is quoted based on public domain information, adjusted to a 340-350 days per year operating basis (varying by product and regulations governing plant turn arounds).

The listing includes all plants that Nexant can identify as being a separate unit with a reasonable degree of independent operation (this generally means it has a separate control room, although developments in technology are making this a less relevant demarcation). The list also includes capacities for plants that are ready for imminent start-up and those under construction. A smaller portion of planned units are also included where public domain information supports the intent and availability of technology and financing for the project.

How it fits in to Petrochemical Forecasting

The Capacity listing (and associated process definitions) provide the regional asset information that allows Nexant to forecast regional production in its supply/demand analysis. The relationship between production and the capacity in a region is then used in profitability forecasting as a measure of market tightness.

Capacity Developments 1975 - 2025

West European styrene capacity increased significantly in 2005 with the commissioning of the Lyondell/Bayer POSM plant, which has a capacity of 640 000 tons per year of styrene, making it the largest styrene plant in Europe.

Spain’s Repsol-YPF increased capacity by 120 000 tons per year at its POSM plant in Tarragona in September 2005. A further expansion is scheduled for 2007.

Total Petrochemicals announced that it will close its Carling styrene plant (along with the smaller steam cracker on the site), and expand styrene capacity at its Gonfreville plant.

Most of the ethylbenzene consumed in West European styrene units is produced from ethylene and benzene. These units are usually run to feed captive demand from styrene plants. Ethylbenzene is produced in significant quantities in reformate, although the economics of extraction from reformate are seldom attractive in comparison to on-purpose production from benzene and ethylene. Huntsman (now SABIC) at North Tees, Polimeri Europa at Priolo and Sarroch and Shell at Heide extract a limited quantity of EB from reformate. Shell at Stanlow is the only producer to derive EB from FCC ethylene, which offers the most favourable economics.

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