Best Practices on Handling & Best Practices on Handling & - PowerPoint PPT Presentation

Best Practices on Handling & Best Practices on Handling & Managing MTBE Managing MTBE 2004. 11. 3. Energy R&D Center SK Corporation

I MTBE Balance in Korea I CONTENTS II II Feasibility Study MTBE Production/Use in SK II II III III MTBE for Gasoline Blending IV MTBE Effect on Environment IV SK Handling Practice V V VI Practices in Other Countries VI VII Feasibility Study Conclusion VII

I. MTBE Balance in Korea • Recent Supply/Demand Recent Supply/Demand • Production Capacity (2003) Production Capacity (2003) • • Unit: 1000M/T, % Unit: 1000M/T, % Unit: 1000M/T Unit: 1000M/T 250 2001 2002 2003 Change, % 200 200 ∇ 4.1 Production 760 740 710 170 ∇ 42.9 Import 0 21 12 150 ∇ 5.1 Total Supply 760 761 722 100 100 100 100 Domestic 650 640 690 7.8 57 ∇ 69.0 Export 106 113 35 50 ∇ 3.7 Total Demand 756 753 725 0 SK 여천 LG MMA LG Hyund S-Oil NCC Caltex Dai

I. MTBE Balance in Korea • MTBE are used in MTBE are used in • � SK, LG � SK, LG- -Caltex Caltex: : Gasoline Blending Gasoline Blending � LG MMA: � LG MMA: MMA MMA (Methyl (Methyl Methacrylate Methacrylate) Feedstock ) Feedstock � YeoCheon � YeoCheon NCC, Hyundai: Supply for Domestic/Export Market NCC, Hyundai: Supply for Domestic/Export Market Unit: % Unit: % Anti- Oxidizer, 2 MMA, 20 Gasoline, 78

II. MTBE Production/Use in SK • Two MTBE plants with the separate feedstock source are operated Two MTBE plants with the separate feedstock source are operated • No.1 No.1 Raw C4 Raw C4 BBR BBR- -1 1 NCC/NEP BEU NCC/NEP BEU Naphtha MTBE Naphtha MTBE MTBE MTBE Methanol Methanol C3/C4 C3/C4 No.2 No.2 Mixed Mixed Resid Resid Mixed C4 Mixed C4 RFCC RFCC MTBE MTBE LPG LPG Feed Feed Splitter Splitter MTBE MTBE Methanol Methanol

II. MTBE Production/Use in SK • All of MTBE from each unit are All of MTBE from each unit are blended to Gasoline blended to Gasoline Products Products • MTBE MTBE Blending Stock Blending ratio, % Tank Tank Butane ~4 Pentane ~6 Raffinate ~21 Blending Blending Blender Blender Stock Stock LSR ~6 MTBE 8~10 LCN ~53 Reformate ~1 Gasoline Gasoline Alkylate ~4 Tank Tank Hvy Aro. ~6 Toluene ~2

III. MTBE in Gasoline Blending • In Korea, Oxygenate requirement in gasoline was legislated in 1 In Korea, Oxygenate requirement in gasoline was legislated in 1993, 993, • which made MTBE widely used as the gasoline blending stock which made MTBE widely used as the gasoline blending stock • MTBE has the MTBE has the economical and environmental advantages economical and environmental advantages • compared with other oxygenate such as Ethanol compared with other oxygenate such as Ethanol � High Octane Number � → Prevent Knocking High Octane Number → Prevent Knocking � Oxygen helps combustion � → Reduce CO, PM Oxygen helps combustion → Reduce CO, PM � Reduce VOC � → Prevent Ozone Increase Reduce VOC → Prevent Ozone Increase � MTBE is balanced in supply/demand while Ethanol is import � MTBE is balanced in supply/demand while Ethanol is import position in Korea position in Korea

III. MTBE in Gasoline Blending • MTBE vs. OTHER GASOLINE COMPONENTS GASOLINE BLENDING PROPERTIES Octane Air Quality Factors Toxic Factors Typical Percent Gasoline Components Level Volatility Sulfur Olefins Benzene Aromatics Used in Gasoline Blends average all regions) (R+M/2) (RVP psi) (ppm) (%) (%) (%) Lower Octanes 0% - 3% Raffinate 55 4 0 0 0 0 4% - 9% LSR Naphtha 67 12 125 1 1 8 27% - 34% FCC Naphtha 86 7 350 28 1 28 1% - 3% Hydrocrackate 81 12 10 0 0.2 3 Higher Octanes 3% - 10% Alkylates 92 6 15 0 0 0 3% - 5% Normal Butane 92 52 0 0 0 0 36% - 43% Reformate 93 5 10 0 2 65 Ethanol 114 20 0 0 0 0 0% - 1% 0% - 15% MTBE 110 8 0 0 0 0 Raise Octane Improve Air Quality Reduce Toxins

III. MTBE in Gasoline Blending • MTBE vs. OTHER GASOLINE COMPONENTS 10 8 MIR, mg Ozone/mg TOG Aromatics Olefins 6 MTBE is less likely to form Ozone than most gasoline components 4 2 Paraffins 0 1 2 3 4 5 6 7 8 9 0 E l E o C C C C C C C C C 1 B B n C T a T h E M t E Number of Carbon Atoms

IV. MTBE Effect on Environment • Is MTBE contamination of drinking water widespread or Growing? Is MTBE contamination of drinking water widespread or Growing? • � MTBE is � MTBE is not detected in most drinking water not detected in most drinking water sources (<1% in sources (<1% in California) California) � MTBE detections are � MTBE detections are not increasing over time not increasing over time (new sources are (new sources are declining) declining) � MTBE is � MTBE is not consistently detected in same not consistently detected in same drinking water drinking water source source � Historic detections of MTBE have been driven by surface water � Historic detections of MTBE have been driven by surface water source source - From Hart World Fuels Conference (2002): From Hart World Fuels Conference (2002): “ “MTBE: Is it really a concern for MTBE: Is it really a concern for - drinking water in the united state?” ” drinking water in the united state?

IV. MTBE Effect on Environment • Is MTBE clearly proven to cause cancer? Is MTBE clearly proven to cause cancer? • � European Classification and Labelling ; Not listed as � European Classification and Labelling ; Not listed as carcinogenic carcinogenic � European Risk Assessment; MTBE not a threat to human � European Risk Assessment; MTBE not a threat to human health, but there is a risk for Ground Water contamination health, but there is a risk for Ground Water contamination � IARC: GROUP 3 ; not classifiable as to its � IARC: GROUP 3 ; not classifiable as to its carcinogenity carcinogenity ( group 3 ... caffeine, talk powder … ( group 3 ... caffeine, talk powder ….) .) � US National Toxicological Program: not included as a material � US National Toxicological Program: not included as a material to be reasonably anticipated to be a human carcinogen. to be reasonably anticipated to be a human carcinogen. � California Pro.65 Committee: not considered as a carcinogenic � California Pro.65 Committee: not considered as a carcinogenic or reproductive hazard. or reproductive hazard. � ECETOC : not carcinogenic according to EU Dangerous � ECETOC : not carcinogenic according to EU Dangerous Substances Directive 67/548/EC Substances Directive 67/548/EC � NIEHS : declines to list MTBE as cancer causing � NIEHS : declines to list MTBE as cancer causing

IV. MTBE Effect on Environment • Is MTBE more harmful than other drinking water contaminants fro Is MTBE more harmful than other drinking water contaminants from m • VOCs? ? VOCs � In USA, many contaminants including � In USA, many contaminants including VOCs VOCs are commonly are commonly found in drinking water in drinking water found � Theses are often detected � Theses are often detected at greater concentration than MTBE at greater concentration than MTBE (Some even exceed regulatory standards) (Some even exceed regulatory standards) � Most � Most VOCs VOCs are are more toxic than MTBE more toxic than MTBE and include known or and include known or possible human carcinogens possible human carcinogens - It is important to handle and manage to minimize the It is important to handle and manage to minimize the - environmental effect rather than forced banning environmental effect rather than forced banning

IV. SK’s Practice about MTBE • Ulsan Ulsan Complex Complex • � 3 Tanks are used for MTBE Storage � 3 Tanks are used for MTBE Storage � All of them were modified or constructed � All of them were modified or constructed to prevent water to prevent water contamination and leakage to the environments contamination and leakage to the environments � CRT/FRT Type � → IFRT Type CRT/FRT Type → IFRT Type � Double � Double- -sealed the pump and line connection sealed the pump and line connection � Before open the tank for maintenance, all the remained MTBE � Before open the tank for maintenance, all the remained MTBE in the tank and line are removed by vacuum car and burned out burned out in the tank and line are removed by vacuum car and in stead of mixing to waste pool in stead of mixing to waste pool � Strengthen the regular inspection � Strengthen the regular inspection of MTBE leakage including of MTBE leakage including other VOCs VOCs other

IV. SK Practice about MTBE • Service Station Service Station • � Plan to pre � Plan to pre- -study the MTBE effect on the soil and ground water study the MTBE effect on the soil and ground water � Plan to set � Plan to set- -up the monitoring system up the monitoring system • SK is trying to set SK is trying to set- -up the master plan in order to protect the up the master plan in order to protect the • environment of Ulsan Ulsan CLX and service station CLX and service station environment of