Page 180 - CW E-Magazine (14-1-2025)

Special Report

is driven mostly by North America on Europe Complex in Russia was to begin com-
a volume basis (which has a low-cost In Europe, Dow Chemical’s op- mercial operation in mid-2024. The
ethylene feedstock advantage) and erates a facility in Tarragona, Spain, project nearthe Baltic Sea’s Ust-Luga
mainland China (which plans to supply which accounts for a 9% of regional port, includes LAO, with technology
its polyethylene and PAO demand with supply capacity. licensed from Axens for a50-ktpa of
more domestically produced product, hexene-1 and 120-ktpa butene-1 (two
as it tries to reduce its dependence on INEOS Oligomers operates a larger units of 60-ktpa each).
imports)(9). facility in Feluy, Belgium, which contri-
butes to more than 28% of the regional North America
Between 2014 and 2020, global supply capacity. The plant, located Shell has LAO capacity of 1.3-mtpa
LAOs capacity went up from 6.0-mtpa just south of Brussels, is the largest at Geismar (Louisiana, USA) – mak-
to 7.2-mtpa, an increase of nearly West European producer of LAOs and ing the site the largest in the world for
17%. In 2020, nearly 37% of the total the largest European producer of PAO. LAO. In January 2019, it brought on-
capacity was on-purpose LAO, while Its fi rst operational unit was built by line the fourth LAO plant at the site,
the remaining 63% were full range Ethyl Corporation in 1976. In 1991, the with a capacity of 425-ktpa. In April
facilities. PAO unit (35-ktpa) started production, 2022, the company announced a $1.4-bn
followed one year later by the LAO project, which the company said will
World capacity is forecast to grow unit (200-ktpa). In 2000, the LAO pro create a “world scale” LAO at the
at a CAGR of approximately 5% dur- duction capacity was increased to 300-ktpa, Geismar facility.
ing 2022–27. In 2022, North America and PAO production capacity was also
accounted for approximately 44% of increased to 70-ktpa and further ex- INEOS operates a 420-ktpa LAO
world production of LAOs, followed by panded in following years to 85-ktpa. plant at Chocolate Bayou and a
the Middle East (16%), mainland China In 2009, a new PAO production line 120-ktpa PAO plant at Alvin, Texas.
(13%), and Western Europe (10%). was started to bring site PAO capacity The INEOS Joffre LAO Plant at Joffre
Other Asia, Africa, Central & Eastern to 125-ktpa.The primary products of (Alberta, Canada), currently with a capa-
Europe, and Central and South America the Feluy facility is the production of city of 250-ktpa, began operating in
accounted for the remaining 17%. LAOs within the C6-C18 range, with September 2001.
the additional capability of recycling
Major global producers C4 to produce other higher olefi ns. In September 2023, ExxonMobil
The world’s two largest producers announced start-up of a 350-ktpa LAO
of LAOs have a combined capacity Sasol Italy S.p.A. has a plant in plant (full range from C4 to C24). Ten
share of 50% (excluding butene-1 from Augusta, Italy, where they manufacture high-purity LAO products are manufac-
raffi nate). By 2027, these two produ- LAOs from n-paraffi ns. With a capa- tured at the facility and marketed under
cers will likely hold on to the top spots, city of about 250-ktpa, the majority of the Elevexx brand name, marking the
but there will be some reshuffl ing of the the plant’s output, approximately 90%, company’s entry into the LAO market.
other top fi ve. is used internally for the production of More than half of the nameplate capa-
oxo process chemicals, linear alkylben- city of the LAO plant is for captive use.
Others
Western 17% zene, and polyinternal olefi ns.
Europe CPChem operates two full-range
10%
CEPSA Quimica (Spain) is also LAO units and one on-purpose 1-hexene
involved in the production of LAOs from unit at its Cedar Bayou plant in
n-paraffi ns. The Shell Group operates Baytown, Texas (capacity 250-ktpa).
China
13% one of the largest SHOP facilities in In March 2023, it completed construc-
the region, at Stanlow (UK) producing tion of the world’s largest on-purpose
North both LAOs and internal olefi ns. 1-hexene unit in Old Ocean, Texas. The
America investment brings its total US 1-hexene
44%
Middle Another signifi cant player is Nizhne- capacity up to 646-ktpa.
East kamskneftekhim (Russia), accounting
16%
for over 8% of the regional supply capa- Arcanum operates two 1-butene facili-
Fig. 3: Regional production share for LAOs, city. They offer LAOs in the C4-C26 ties at its site in Baytown (Texas), each
2022. range(10). The €10-bn Baltic Chemical with a capacity of 50-ktpa, marking the

180 Chemical Weekly January 14, 2025

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