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| India Infoline Sector Reports | Wed, 18-Feb-2004 16:21:20 IST (GMT+5:30) | |
| Polymers | ||
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Annexure 4 : Feedstocks (Raw materials) The choice of feedstock for a petrochemical unit is critical for its profitability. The choice of feedstock is dependent on its price, availability, yield, energy cost and desired product mix. A number of feedstocks like naphtha, industrial alcohol, ethane/propane, LPG and gas oil can be used in olefin crackers. The commonly used feedstocks are naphtha and natural gas. Choice for aromatic complexes is limited, as heavy aromatic content naphtha is favored. Natural gas yield a much higher proportion of ethylene. Therefore, they are preferred when the polyolefins output of a cracker is sought to be maximized. Naphtha is preferred when a wider range of output is required. The quality of feedstock is also important. Naphtha rich in aromatics is favorable for units having wider product mixes. Worldwide there has been trend of using more gas, which is a lighter feed stock. In India, naphtha and natural gas (C2/C3) are the main feedstocks used. The initial plants set up by Nocil and IPCL (Baroda) were naphtha based plants. IPCL's plant at Nagothane and Gandhar are gas based plants. Reliance plants have flexibility of using either natural gas or naphtha. The new plant of GAIL is gas based and the HPC will have naphtha based plant. Availability of feedstock for a petrochemical plant is a big issue in India. The available gas is distributed by Government of India based on macro-economic considerations. The fertilizer sector consumes more than 40% of the gas available. Next in line is the power sector which consumes more than 30% of the gas available. The petrochemical sector gets only 4% of the gas available.
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