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Annexure 5 : Building Blocks

The basic petrochemical products or building blocks from a cracker complexe are olefins - ethylene, propylene and butadiene. Building blocks from reformers are aromatics - benzene, toluene and xylenes.

Ethylene is the most important building block since it is used to manufacture key polymers - PVC, LL/LLDPE, HDPE etc., which drive 70% of the petrochemicals demand. More than 60% of ethylene consumed in India is for PE and around 18% for PVC.

Ethylene output in general is taken as the capacity of the cracker. Most of the complexes try to maximize the output of ethylene. Capacities of other products are dependant on the capacity of ethylene.

Ethylene in India is produced in two alternate ways. Small capacity plants manufacture ethylene by the use of molasses or alcohol. Earlier, when prices of industrial alcohol were administered and it was available at low prices, it was economical to operate alcohol based plants. Later on, the large complexes set up were either naphtha based or natural gas based plants.

Installed Capacities of Ethylene in India (‘000 ton) Company

1997-98

1999-2000 (E)

IPCL

430

830

Reliance Industries

750

750

Nocil

75

75

GAIL

 

300

Haldia Petro Chemicals

 

420

Oswal Agro

23

23

Total

1,278

2,398

Benzene, a basic aromatic chemical is produced from three sources. In petrochemical plants from a reformer, a refinery product at most refineries and in steel plants, as a recovery product from coke oven gas obtained during the carbonization of coal.

Most of the reformers produce Benzene using naphtha as the feedstock, as the aromatic content is higher in naphtha as compared to natural gas.

Benzene is used in manufacturing caprolactum (more than 30%), Linear Alkyl Benzene (LAB -more than 20%), styrene (more than 25%), nitrobenzene and chlorobenzenes and pesticides.

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