Petkim Petrochemicals Ethylene Plant Expansion, Turkey

In November 2009 Petkim Petrochemicals announced plans to expand its ethylene plant in Aliaga, Turkey. The ethylene facility is the main plant of Petkim's petrochemical complex in Turkey. The complex includes chlorine alkali, vinyl chloride monomer, polyvinyl chloride and low-density polyethylene plants. The ethylene plant has the capacity to produce 520,000t/y. Expansion of the ethylene plant will boost production capacity by 10%.

The expansion is expected to be completed by 2012. The ethylene plant is being expanded in response to the growing demand for ethylene in Turkey, which is predominantly served by imports. The expansion will increase Petkim's market share from 30% to more than 40% by 2015.

Expansion

Expansion of the plant is being taken up by Petkim's new owners after the company's privatisation in May 2008. The new owners, a consortium led by Saudi investment company Injaz, wanted to restructure the company's operations.

As part of the process they decided to expand the plant's capacity by 700,000t/y over the next three years. The expansion will ultimately increase production capacity to 1.2mt/y. Since almost 75% of the operating cost of the plant is dependent on naphtha feedstock, the new plant will be able to use LPG and naphtha.

The move will help the company decrease its dependence on naphtha and protect it from the rising price of naphtha, which is being driven by increasing oil prices.

Plant

The ethylene plant was originally built in 1985 by Stone and Webster Engineering, part of the Shaw Group. The construction contractor was Turkey-based Tekfen.

The ethylene plant produces raw material and utilities for other plants in the petrochemical complex, as well as finished products.

The plant has undergone expansion twice before, in 1995 and 2005. Expansion had increased the production capacity from the original 300,000t/y to 520,000t/y.

Contractors

Los Angeles-based Shaw Group was awarded the contract for the expansion. Shaw will offer engineering and procurement services and additional study work. This is the third time the company has secured a contract for the plant. Shaw built the original plant in 1985 and also performed basic engineering for the 1995 expansion.

Shaw was chosen because of the company's experience of providing technology, design, engineering and construction for ethylene plants globally.

Products

The plant's feedstock naphtha is supplied by an aromatics plant and the Tupras refinery in Turkey. It also receives feedstock in the form of imported light naphtha. The plant converts naphtha using steam cracking to produce various products.

The plant produces ethylene, chemical and polymer grade propylene, pyrolysis gasoline, C4 and hydrogen. These products are used in industries including packaging, electronics, automotive, construction, textile and agriculture.

Market growth

Ethylene is an important olefin and the biggest manufactured petrochemical in the world.

Worldwide demand for ethylene is expected to reach 116mt in 2010 at an average annual growth rate of 4% to 4.5%. The Turkish market has grown at 12% a year over the past 15 years and is expected to continue to expand.

Turkey is the third-largest importer of petrochemicals globally and the thermoplastics consumption in the country is about 29kg per capita. Almost 70% of this demand is met through imports.

With the increase in industrialisation in the country, rapid population growth and growth in various industrial sectors, the Turkish market provides opportunities for Petkim's products.