Page 135 - CW E-Magazine (3-12-2024)

Point of View

New projects for acetic acid, styrene, and toluene

are coming, but more are needed

There are several commodity chemicals (aside of polymers) that India currently imports in excess of 1-mt annually. At the top of
the list is methanol, for which imports in FY24 was about 5.6-mt. Other chemicals that make it to this list are styrene monomer (SM)
(1.8-mt), monoethylene glycol (MEG) (1.8-mt), ethane (1.6-mt), acetic acid (AA) (1.6-mt), purified terephthalic acid (PTA) (1.5-mt) and
toluene (1.1-mt).

The good news is that projects are afoot for three of these: acetic acid (joint venture of Gujarat Narmada Fertilisers and Chemicals,
GNFC); SM (Indian Oil Corporation, IOC); and toluene (Hindustan Mittal Energy Ltd. (HMEL) and IOC).

Acetic acid from GNFC-INEOS
AA technology is perhaps the most diverse amongst major industrial organic chemicals. No other large volume chemical can claim
the varied feedstocks and production approaches as acetic acid. Feedstocks include the natural gas-based derivatives methanol and
carbon monoxide (CO); ethylene and ethylene derivatives; alkanes, such as ethane, butane and naphtha; syngas derived from coal; and
renewable natural sources.

Methanol carbonylation (MC) is the dominant technology for AA, accounting for over 65% of global capacity. This share is growing
as it is the preferred technology choice for most new plants (aside small ones based on ethanol to produce a bio-based acetic acid). In
general, the good conversion and selectivity achievable by MC technology, coupled with low-cost methanol feedstock and economies
of scale enjoyed by mega-sized plants, result in process economics that are tough to beat.

In the past investments in AA production in India were limited by access to technology. BP’s Aromatics & Acetyls Business
(acquired by INEOS Acetyls in early 2021) and Celanese have proprietary technology, respectively called Cativa and AO plus, and dominant
share of the MC technology market (besides being AA market participants themselves). Japan’s Chiyoda has also developed its own
MC process, Acetica, which is available for licensing through engineering company, KBR, while Showa Denko has commercialised
a one-step, vapour phase process based on the direct oxidation of ethylene, and SABIC has developed an ethane-based technology,
using a proprietary catalytic oxidation process. In China, several companies have developed their own versions of MC technology and
so rapidly scaled up AA production.

The AA project with a capacity of 600-ktpa is to be implemented by an equally-owned joint venture between GNFC and INEOS
Acetyls at the former’s site in Bharuch (Gujarat). Once confirmed by a feasibility study for which an MoU has been signed, the plant is
slated to come up in 2028. The two companies have a history of working together – GNFC currently operates a 150-ktpa AA plant at
the site based on technology license from BP.

The latest announcement is shorn of details, but will be based on INEOS’ MC technology, needing methanol and carbon monoxide
(CO) as feedstock. The sources of the two critical raw materials have not been clarified but some educated guesses can be made. The
methanol will in all probability be imported, considering local methanol production here based on high-priced gas is a non-starter. At
the current methanol import price of about Rs. 25 per kg, any gas price (mostly regasifed LNG) above Rs. 25 per standard cubic metre,
which is currently the case, makes using imported methanol a more economic option.
Methanol is abundantly available in the Middle East, for one, and GNFC will seek to import it either at Hazira or at Dahej – the latter
via the port operated by Gujarat Chemical Port Ltd. (GCPL) in which it has a stake. The company is already importing some quantities
of methanol to run its existing AA plant and is evaluating transport by train to handle the larger import volumes that will be needed.

GNFC is also well placed with regards to CO. It currently has two gasifiers operating at about half of installed capacity to meet
current CO requirements. Their operating rates can be ramped up to meet the needs of the new AA plant.

The applications of AA can be classified by its role as a processing aid (chemical) or as a solvent/reactant medium. In the former are
derivatives such as acetic anhydride, vinyl acetate monomer (VAM), organic esters such as ethyl & butyl acetate, diketene derivatives,

Chemical Weekly December 3, 2024 135

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