Group C Presentation - Petrochemicals (UPDATED)
Group C Presentation - Petrochemicals (UPDATED)
Group C Presentation - Petrochemicals (UPDATED)
INDUSTRY
GROUP C REPORT
COURSE TITLE: CHEMICAL
PROCESS INDUSTRIES
COURSE CODE: CHE 581
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Names
Mat number
ANYACHEBELU OBICHIGEME E. ENG
1002106
OJEKOMHAN OMODION F.
1002160
ENG
ENG
ENG
OMOBOLAJI ADEWOLO
1002095
ENG
ENG
ABSTRACT
Nigeria has a robust petrochemical sector that has been evolving over the last fifteen years.
The petrochemical industry is focused around the three centres located at Kaduna, Warri
and Eleme.
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detergents.
Therefore, the low crude oil refining capacity has affected negatively the
production of petrochemical products.
INTRODUCTION
PETROCHEMICALS
Just a few years back, it was easy to define petrochemicals as relatively
pure, identifiable substances from petroleum and is used in the chemical
trade. Before now we know that oil companies were only concerned with
refining of crude oils, but now oil companies are entering the chemical
business while chemical companies are entering the oil business too,
making the whole group expand. Therefore, most organic chemical
substances could be considered petrochemicals.
The growth of enormous plastic industries and other very large scale
organic chemicals (ethylene glycol, methanol, ethanolamine, etc.) has
brought the view points of the two industries much closer together. At first
chemical companies bought simple raw materials of the required purity
directly from oil companies, then oil and chemical companies formed a
joint venture. Now, integration from underground oil to finished product is
taking place with both oil and chemical companies becoming
indistinguishable i.e. most oil companies now have petrochemical
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II.
III.
The petroleum industry in Nigeria, Africa is the largest industry and main
generator of GDP in the continents most populous nation.
Oil was discovered in Nigeria in 1956 at Olobiri in Niger Delta after a
century of exploration. The discovery was made by Shell-BP, at the time
sole concessionaire. Nigeria joined the ranks of oil producers in 1958 when
its oil field came on steam producing 5,100 bpd. After 1960, exploration
rights in onshore and offshore areas adjoining the Niger Delta was
extended to other foreign companies. In 1965, the EA field was discovered
by Shell in shallow waters Southwest of Warri. Nigeria joined the
Organization of Petroleum Exporting Countries (OPEC) in 1971 and
established the Nigeria National Petroleum Corporation (NNPC) in 1977.
In the late 60s and early 70s, Nigeria attained production level over 1
Million barrels of Crude Oil a day. 2004 saw a total rejuvenation of oil
production to a record level of over 2 million barrels per day. Current
development strategies are aimed at increasing production to 4 million
barrels per day by the year 2015.
the quantity doubled the following year and progressively as more players
came onto the oil scene, the production rose to 2.0 million barrels per day
in 1972 and a peaking at 2.4 million barrels per day in 1979. Nigeria
thereafter attained the status of a major oil producer, ranking 7th in the
world in 1972, and has since grown to become the sixth largest oil
producing country in the world.
From the 1970s, the world petrochemical industry has changed
drastically including the Nigerian petrochemical industry, partly due to
increased demand for petrochemical products. Since the 1970s, various
laws have been enacted to ensure the continual growth of the
petrochemical industry and oil industry at large. The growth of the
petrochemical industries has been one the fabulous stories connected
with modern chemicals and chemical engineering research. Petroleum
companies were uninterested in chemical production, but gave the
industry a great boost by selling their off-gas to chemical companies at its
fuel value. Cracking furnaces put reactive olefins in these gases, which
chemical companies quickly developed into petrochemicals. Today some
oil companies for example, shell and standard oil of New Jersey (now
Exxon) are increasingly becoming a major player in the petrochemical
industry.
SOURCES OF PETROCHEMICALS
Methane
NATURAL GAS
PROCESSING
STEAM
CRACKE
R
PETROLEUM
REFINERY
NAPHTH
A
Ethylene
Propylene
Benzene
Butadiene
GAS OIL
Byproducts
PETROCHEMICAL
INTERMEDIATES
BENZENE, TOLUENE,
XYLENE
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Ethylene
Propylene
Butanes and butadiene
Benzenes.
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110,000 bpd
ii
iii
Axinova Polyolefin.
The manufacture of basic raw materials like syn gas, methane, ethylene,
propylene, acetylene, butadiene, benzene, toluene, xylenes, etc.
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In
the
changing
scenario,
petroleum
refining
and
petrochemical
Few years back, naphtha was the dominant feedstock for petrochemicals;
however, recent trends have been for more utilization of Natural Gas,
Liquefied Petroleum Gas (LPG) and Pyrolysis Gasoline.
Many Licensor companies offer their technologies for the production of
petrochemical products from variety of feed stocks.
Nylon 6: Zimmer
Cis-Polybutadiene: Phillips Petroleum Co.
Polybutene: Cosden Technology Inc.
Polyethylene (High Density): Phillips Petroleum Co.
Polyethylene Terephthalate: Zimmer
Polypropylene: Hercules
Polystyrene: Cosden Technology Inc.
Polyvinyl Chloride: Mitsui Toatsu Chemicals Inc.
Styrene: Monsato and C-E Lummus
Styrene-Butadiene Rubber: Phillips Petroleum Co.
Urea from Ammonia and Carbon Dioxide: Stamicarbon B.V.
Vinyl Chloride: Stauffer Chemicals
Xylenes: Atlantic Richfield Co. (ARCO)
PRODUCTS OF PETROCHEMICAL
INDUSTRY
The following is a partial list of the major commercial petrochemicals and
their derivatives:
(a)ETHYLENE-: the simplest olefin; used as a chemical feedstock
and ripening stimulant. Its derivatives include Polyethylene, ethanol,
ethylene oxide, ethylene glycol, engine coolant, polyesters and glycol
ethers.
(b)PROPYLENES -Used as a monomer and a chemical feedstock .Its
derivatives includes Isopropyl alcohol, acrylonitrile, propylene glycol,
glycol ethers, acrylic acids, alkyl chloride.
(c)C4 HYDROCARBONS - A mixture consisting of butanes, butylene
and butadiene. Isobutylene, a feed for copolymerisation of1, 3-butadiene,
which is often used as a monomer for elastomers.
(d)MIXED XYLENES- Any three dimethyl benzene isomers. Its
derivatives are Phthalic anhydride, dimethyl terephthalate, polyesters,
alkyd resins and polyamide resins.
(e)TOLUENE- This is also known as methylbenzene. It can be used
as a solvent or precursor for other chemicals. Its derivatives includes
Benzene, toluene diisocyanate, benzoic acid and nylon.
(f)BENZENE-: The simplest aromatic hydrocarbon. Its derivatives
includes Ethyl benzene, styrene, cumene, acetone, epoxy resins and
polycarbonates
In summary, some of the products from the petroleum plants in
Nigeria includes:
Carbon black
Polypropylene
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CASE STUDY
1.WARRI REFINING AND PETROCHEMICAL
INDUSTRY
The production process of Warri refining and petrochemical company are
classified into primary and secondary processes.
Primary processes use distillation principles to separate crude into
intermediate and some finished products while the Secondary processes
use catalyst to convert the intermediate to higher quality finished and
value added petrochemical products.
The primary processes are carried out at the:
1. Atmospheric Distillation Unit
2. Vacuum Distillation Unit, and
3. The Gas Plant
The secondary process unit are:
1. Naphtha Hydro treating Unit (NHU)
2. Catalytic Reforming Unit (CRU)
3. Kerosene Hydro treating Unit (KHU)
4. The Fluid Catalytic Cracking Unit (FCCU)
5. HF Alkylation Unit
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MISSION STATEMENT
To efficiently and profitably process crude oil into Petroleum products,
Manufacture and Market Petrochemical Products through effective
resource utilization, while exploiting new business opportunities.
VISION STATEMENT
To be a leader in the Petroleum processing business in Africa.
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FEEDSTOCK
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3.0.1. The carbon black plant uses various feed stocks in the production
process, some of which are supplied from the utility plant, Fluid catalytic
cracking Unit and others are self- generated by the carbon black plant.
The various feed stocks of the carbon black process plant are:
3.0.2. Decant oil: This is the primary feedstock of the carbon black
process plant. It is a residual hydrocarbon oil from the fluid catalytic
cracking unit which undergoes reaction in the carbon black plant and is
being converted to carbon black pellets.
3.0.3. Propane: Another feedstock from the FCC unit which was used as
fuel gas in the reactor of the carbon black process to provide fire
necessary for the combustion of decant oil. Propane later found use in the
Polypropylene plant.
3.0.4. Fuel Gas: This is a feedstock from the Nigerian Gas Company
(NGC) which replaces propane as a source of fuel to provide combustion in
the carbon black reactors, incinerator and furnace.
3.0.5. Nitrogen: An inert gas which is a feedstock from the utility plant,
is required in the bag filters of the carbon black plant to blanket explosive
off gases from air in order to prevent explosion in the bag filters.
3.0.6. Steam: is needed to heat up pumps to keep them rotating. Also
needed to purge lines to prevent blockage and also used to raise the
temperature of the feedstock through the heat exchanger.
3.0.7. Flush oil: is needed to flush lines if there be any blockage.
3.0.8. Molasses: It is an additive containing sugar, water, minerals,
gums and certain other substances. It is usually mixed with hot water and
kerosene to form a pelleting solution which is fed to the pelleting unit.
3.9 Process Water: It is needed in:
i. The pre- quench and primary quench sections of the reactor to control
the reactors
temperature and to prevent complete combustion.
ii. The secondary quench tower to flush out organic and inorganic grits
from the carbon black.
iii. The mixing and pelleting unit to mix the black in order to obtain a
homogenous mixture.
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3.0.10. Raw Water: Used as utility in the control room and laboratory for
drinking, washing etc.
3.0.11. Plant Air: Needed for blowing or cleaning dust from materials,
e.g for cleaning the blower GB 201 filters. Plant air contains little
amount of moisture.
3.0.12. Instrument Air: Needed to operate certain instruments within
the plant, e.g for opening and closing of pneumatic valves. Instrument
air has no moisture content.
3.0.13. Process Air: This air is self- generated by the carbon black
plant by the air blower GB 201. Process air is needed to support
combustion in the reactors, incinerator and the furnace.
3.0.14. Potassium Nitrate (KNO3): This is an additive which is
mixed with the decant oil before it is passed into the reactor. The
potassium nitrate helps to reduce the carbon black agglomeration and
gives it the desired grade.
The point where carbon black plant receives its various feedstock and
utilities from other plants is called the battery limit. This is the starting
point of the CB plant. It consists of valves which controls the lines (pipes)
through which the various feedstock and utilities flow, each line to its
valve.
PROCESS DESCRIPTION
Although the carbon black process appears to be simple, the extreme
degree of control that must be maintained in order to obtain a quality
product from the reactors makes the process complex. The production of
carbon black in the reactor is accomplished by the combustion and
thermal decomposition of hydrocarbon in a reducing atmosphere. This
section of the process is characterized by its high temperature low
pressure, and a short reaction time.
GULFTRONIC SEPARATION
The Gulftronic separator receives the decant oil from the battery limit and
separates out catalytic particles from the decant oil. The catalytic particles
are remains of catalysts used in FCC unit.
STORAGE TANKS
The filtered decant oil is discharged into storage tanks FB 408 , FB 406A
and B AND FB 403 A and B where it is stored before it is discharged into
the reactors for the actual reaction process. Within the Storage tanks are
steam spacers (thin pipes through which steam flows) which transfers
heat to the decant oil in order to maintain the viscosity needed by the oil
to flow. The temperature in the storage tanks ranges from 93-100oC. Too
high a temperature in the storage tanks will cause the decant oil to
exceed its flash point which is 130oC consequently leading to explosion.
OIL PRE-HEATERS
Before the oil enters the reactor, it passes through the oil pre-heaters
where it is pre heated by the heat effluent from the reactor to a
temperature of about 800oC. It is necessary to pre heat the oil in order to:
i. Reduce its viscosity so as to obtain the standard spray pattern with
which the oil goes into the reactor from the oil gun.
ii. Raise the temperature of the incoming oil so that it wont reduce the
reactors temperature as a result of heat exchange.
AIR PRE-HEATERS
The process air generated by the air blower GB 201 which is needed in the
reactors first passes through the air-heaters where it is pre-heated by the
heat effluent from the reactor to:
i. To increase its temperature closer to the temperature of the reactor so
as to prevent thermal shock.
ii. To raise the temperatures of the incoming air so that it will not reduce
the temperature of the reactor as a result of heat exchange.
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OIL COOLER
In a situation where production is suspended, the pre-heated oil which is
not needed in the reactor is directed to the oil cooler which reduces the
temperature of the pre-heated oil to about 93-100oC before discharging it
back to the storage tanks.
REACTION
The actual reaction process takes place in the reactor which is the heart of
the oil furnace process. The reactor is fed with fuel gas which is the source
of combustion and the pre-heated air which supports combustion. The
reactor is lighted prior to production and its temperature is raised
gradually to a range of 1350oC-1500oC its standard operating
temperature. Once this set temperature is reached, the oil gun through
which the decant oil enters into the reactor by a spray pattern is inserted
into the reactor.
Two processes takes place in the reactor which are incomplete
combustion and thermal decomposition. Incomplete combustion
involves burning the decant oil in a reducing atmosphere to obtain soot or
carbon black while thermal decomposition involves separating hydrogen
from elemental carbon (carbon black).
The pre-heated air and fuel gas enters the reaction zone through two
ports the upper and lower tangential amps in order to cause a turbulent
flow which helps to carry the produced carbon black particles on the
surface of the inner linings of the reactor.
Carbon black properties, yield, and production rate can be adjusted by
changing the reactor feed variables, and the type and position of the oil
burner. Therefore, the reactor is the heart of the whole process; it is in the
reactor that the carbon black quality is obtained. It should be noted that if
the desired quality and high yields of the carbon black are not attained in
the reactor, it is impossible to do so at any other time in the process, and
the off specification product ends up be recycled into the process.
The CB plant comprises of five (5) reactors all linked to a common roof
header, presently only three of the reactors are in use.
PRE- QUENCH
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This consists of two (2) water inlet inserted by the side of the tail pipe. It
works by spraying water into the tail pipe in a co-current direction to the
flow of the effluent so as to reduce the temperature of the effluent.
PRIMARY-QUENCH
This consists of three (3) water inlet inserted by the side of the tail pipe. It
works by spraying water into the tail pipe in a counter-current direction to
the flow of the effluent so as to reduce the temperature of the effluent.
BAG FILTRATION
The collection of the carbon black is accomplished in a large structure
containing several hundred specially treated fiberglass filter bags, termed
bag filters. This is the only collecting device which can remove essentially
100% of the carbon black from the off gases.
The incoming off gases along with the carbon black, from the secondary
quench tower, carried through the header, enters into the primary bag
filter through the hopper. The off gas escapes through the pores of the
bag while the black is retained inside the bag.
The primary bag filter is made up of nine (9) compartments each
compartment having 492 bags arranged vertically. In order to clean the
bags after a period of filtration, on a set schedule regulated by a timer,
the outlet valve on one compartment closes thus stopping the flow of
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smoke to these bags. At the same time and regulated by the same timer,
a back flow or re-pressuring valve opens. This reverse flow of off-gases
cleans the carbon black from the bags and discharges it into the hopper
and screw conveyor at the bottom of the hopper. After a few seconds, the
valve action is reversed, and the compartment is filtering again.
Immediately after this compartment is placed back into operation, another
is cleaned; therefore, one compartment in sequence is out of service
almost all the time. Since the off-gases contain combustible gases, no air
is allowed into the system during to avoid fires in the filter. The clean off
gases from each compartment are collected in a large common duct and
piped to the incinerator where it is burnt before venting to the atmosphere
to be in line with local environmental standards.
Insufficient re-pressuring gas, leaking bags, failure to remove the black at
the same rate as it is being produce, leaking re-pressuring or outlet valves
are but a few of the problems that can cause shutdown of the filter .The
fiberglass bags are fragile and if damaged will leak black into the off gas
burning equipment. Also when unburned off gas is vented to the
atmosphere; the carbon black in it may cause the plant to be in violation
of local air pollution regulation.
The temperature of the primary bag filter is always on check. Too high a
temperature will destroy the fiberglass filter bags and too low a
temperature will cause excessive corrosion, mudding, and decrease in the
life of the bags by depositing salts on them which weakens the cloth. The
filtered black from the bag filter are withdrawn by the blowers GB202A
and GB202B and are conveyed by the conveyors - JD 201 and JD 202 and
passed to the pulverizers.
MOLECULAR WT. %
COMPONENTS
CO2
4.05
C2H2
1.05
H2
16.96
CO
14.56
CH4
0.74
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N2
62.64
PULVERIZER
Inside the pulverizer are sets of rotating hammers which grinds lumpy or
large carbon black particles coming from the bag filter to obtain a
homogenous and finely grounded particles. The black from the pulverizer
is pneumatically conveyed by the blower GB 203 to a cyclone.
CYCLONE AND SURGE VESSEL
The cyclone acts as a separator. It separates the carbon black from
effluent gases and returns these gases to the process bag filter entering
into the smoke header just prior to the quench tower. The cyclone
discharges the black through a rotary valve into the loose black surge
tank from where it is then passed to the pelleting unit.
MIXING/PELLETING
Since the carbon black in the surge tank will have a density of only about
50 to 100 kilograms per cubic meter, it must be densified for ease of
handling. This is accomplished in a process called wet pelleting. The black
which flows at a regulated rate from the surge tank is mixed with a
pelleting solution, usually composed of hot water, mixed with kerosene
and molasses to form a viscous paste which is then cut into small round
pellets.
DRYING
The wet pellets flow from the mixer into the dryer (FF 201) feed conveyor
and dryer where the pellets are further rounded and the moisture content
reduced to less than 1% by weight. The indirect fired dryer is a large
rotating drum that is heated by hot combustion gas from a furnace BC 201
located near the dryer.
Excess water in the form of steam along with some gases and enstrained
CB particles is withdrawn from the dryer and blown by an air blower (GB
206) to the secondary bag filter just above the cyclone, which recover the
black before venting the steam and gases to the atmosphere.
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These twelve
Effectiveness,
Effectiveness.
usher Personal
Organizational
Personal Effectiveness
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Performance Effectiveness
Organizational Effectiveness
C2 to C4 fractions are fed to the cracker furnaces along with recycle gases
ethane, propane and butane. Ethylene and Propylene are the main
products of Olefins plant, while pentane, hydrogen and fuel gas are the
by-products.
Olefins Plant
Capacity
: 440 KTA
Technology
Polyethylene Plant
: 360 KTA
Technology
Butene
: 22 KTA
Polypropylene Plant
Poly Propylene Plant is based on the Basell (Montell) Spheripol Technology,
which is the leading PP technology in the world. The plant was constructed
by Technimont, an Italian company that has built a number of Basell
plants worldwide. Propylene and PRF are the raw materials for PP plant
which is designed to produce up to 120 KT per annum. The plant can
produce homo-polymers, random-polymers as well as co-polymers that
are used in wide range of applications, from woven sacks to household
goods.
Polypropylene Plant
Capacity
: 120 KTA
Technology
POLYPROPYLENE PLANT
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3.
Kaduna Refining & Petrochemical
Company (KRPC)
VISION
To be the pride of the Nation
MISSION
To Refine Crude Oil into high Value Petroleum and Petrochemical Products
and also Manufacturing Packaging Products efficiently.
PERSPECTIVE
REFINERY PROJECT DECISION
The decision to construct the third Nigerian National Petroleum
Corporation (NNPC) refinery in Kaduna was taken in 1974 along with that
of the second NNPC refinery located at Warri. However, it was decided
that work would commence on the construction of the third refinery
whenever the projection of the consumption of petroleum products
justifies it.
By early 1975, in view of the fuel shortages experienced then, the Federal
Government decided that work on the third refinery should be advanced.
It was envisaged that the refinery was to be a simple hydro skimming type
refinery in order to meet up with the fuel demand then.
Based on the feasibility studies carried out, which took into consideration
the consumption of the various petroleum products within the Northern
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Zone, and adequate means of disposal for the surplus products, a Refinery
with crude oil capacity of 42,000 barrels per stream day (BPSD) could be
easily justified. Hence, the refinery was designed for a capacity of 60,000
BPSD. It was much later that the Federal Government decided that the
capacity for any refinery in Nigeria should not be below 100,000 BPSD.
However, this would have led to the production of large quantity of heavy
ends. And one practical and viable solution is reprocessing the heavy fuel
oils.
In order to do this, the whole project plans had to be modified so that
what initially was planned to be simply a hydro skimming type refinery,
developed into an integrated refinery. The refinery would now be able to
produce a wider variety of petroleum products, some of which should be
lubricating base oils. Hence, it became necessary to import suitable
paraffinic based crude oil from Venezuela, Kuwait or Saudi Arabia.
SITE LOCATION
From the results of an extensive market research carried out on the
petroleum products demand pattern throughout the whole country, the
northern zone showed an increasing demand pattern. Through research, it
became apparent that it would cost less to transport the crude oil by
pipeline than it would to transport the refined products to growing
Northern markets by rail or road. This factor contributed greatly to the
decision to construct the third refinery. Kaduna proved to be a central
location for distributing petroleum products to depots in the northern
zone, as the Warri and Port Harcourt refineries proved for the supply of
petroleum products to depots in the southern and middle belt zones.
PLOT PLAN
Kaduna Refinery occupies an area of 2.89 Square Kilometers. The plot plan
is designed with safety and ease of maintenance in mind. The design also
attempts to minimize operating costs. While it is necessary to minimize
pipe length to facilitate quick delivery of products from one process unit to
another, it is nevertheless not advisable to transport highly viscous fluid
over long distances. To achieve this, intermediate tanks are placed close
to the various process units in the plot plan thus using minimum length of
pipe, which, to a large extent reduce cost of piping.
OUR BUSINESS
KRPC LIMITED is in the business of refining crude oil into high quality
petroleum products and the manufacturing of petrochemical and
packaging products to the satisfaction of her customers
The refinery was designed to process both imported paraffinic and
Nigerian crude oils into fuels and lubes products and was constructed by
Chiyoda Chemical Engineering and Construction Company (now Chiyoda
Corporation) of Japan. In December 1986, the design capacity of the fuels
plants of the Refinery was successfully increased from 50,000 BPSD to
60,000 BPSD, bringing the total refinery installed capacity to 110,000
BPSD.
In March 1988, the 30,000 MT/Yr. Linear Alkyl Benzene Plant under the
then PETROCHEMICAL Sector of NNPC was commissioned. The Plant is
designed to derive its entire raw materials including utility supplies from
the Refinery.
In 1988, it was decided that the two plants should merge into a single
subsidiary company of NNPC in view of their interdependence, common
goal and proximity. The company thus formed is the Kaduna Refining and
Petrochemical Company Limited (KRPC).
OPERATIONS DIVISION
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Kerosene Hydrosulphurisation,
Molex,
Thermal Hydrodealkylation (THDA),
Paraffin Conversion to Olefins (PACOL) and
Detergent Alkylate units.
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HYDRO-FINISHED WAX
ASPHALT
BENZENE
HEAVY ALKYLATE
KERO SOLVENT
NORMAL PARAFFINS
TOLUENE
AROMATIC SOLVENT
HEAVY PARAFFINS
SULPHUR FLAKES
No
Product
Production Rate
1
2
3
4
5
6
7
8
PMS
KEROSENE
AGO [DIESEL]
ASPHALT
LAB
BASE OILS
LPG
FUEL
3,857 MT/DAY
1,686 MT/DAY
3,000 MT/DAY
1,796 MT/DAY
91 MT/DAY
657 MT/DAY
620 MT/DAY
2,100 MT/DAY
(a)
(b)
(c)
Treatment of the Refinery and Petrochemical effluents to the
statutory quality specifications.
The Plant has five (5) steam generating sets or boilers. Each boiler has a
design capacity of 120 tons/hr. of steam. The installed capacity is 600
tons/hr. Design Pressure/Temperature is 46kg/cm at 412oC. There are four
(4) 14MW/hr. Steam Turbines with total capacity of 56mw/hr.
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There are several air pollutants from carbon black production. Their
sources are from:
Thus, the gases released from the petrochemical industry include CO,
CO2, SO2, NO2, NO and have various impacts on the environment at
large. Some of these cases have destroyed the fragile, protective ozone
layer in the atmosphere which protects the earth from harmful effects of
ultra-violet rays from the sun. This thinning of the ozone is becoming a
danger to human health.
WATER POLLUTION
Generally, sources of water pollution are:
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NOISE POLLUTION
Unpleasant noise pollution arises from the petrochemical industry which
employs large machinery to effect transformation into finished products.
These can be very harmful as they can cause an increase in the flow of
adrenaline and also forces the heart to function at a faster pace. Examples
of noise pollution from carbon black processing includes Pneumatic
conveyor, Blower, Mixer, and Dryer. All these can be life threatening as
these factors can lead to heart attacks and strokes.
Due to the adverse effect of pollution on our environment and
human life, control measures have been put in place to reduce or
minimize its effect. These control measures include:
I.
II.
III.
IV.
Government policies.
Sensitization and orientation of people about the effect of pollution
on our environment and human life.
Recycling and treatment of industrial waste.
Burning of industrial waste in an incinerator.
combustion which produces smoke in the study area for example carbonmonoxide, carbon dioxide, chlorofluoro-carbon and hydrocarbon etc. It
should be noted that all the above wastes produced by the industry are
very disastrous and hazardous which affect human health, water bodies
and the state of environment at large (Rowland and Cooper 1983).
(ii)
(iii)
S/N
1
Solid Waste
Nature of solid waste: Oily, sludge, mud with oil Gasoline
storage tank, purification etc.
Liquid waste
Nature of liquid waste: Kerosene, motor oil, diesel fuel etc.
Refining, storage and transportation.
Gaseous waste
Nature of gaseous waste: Carbon-dioxide motor burn,
carbon monoxide, chlorofluorocarbon, hydrocarbon, etc.
Industrial production, fuel combustion, liquefied natural
gas, gases etc.
PRODUCT
Polyproylene
( PP)B(Warri)
(35,000MTPY)
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Linear Alkyl
benzene (Kaduna)
(30,000 MTPY)
Heavy Alkylates
(Kaduna) (2700
MTPY)
Deparaffinated
Kerosene (kaduna) (
3800MTPY)
Benzene (Kaduna)
(15,000 MTPY)
ECONOMIC IMPORTANCE OF
PETROCHEMICAL INDUSTRY IN NIGERIA
Petrochemical industries in Nigeria have a significant impact on the
economy as industries that produce petrochemicals for industrial and
consumer needs have contributed to the growth of the Nigerian Economy.
Therefore the trade in petrochemicals has gone a long way in contributing
towards the development of Nigeria and its economy. These advantages
can be grouped into TWO, which are:
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1. EMPLOYMENT OPPORTUNITIES
The discovery of crude oil in Nigeria at Olobiri in 1859 has led to the
explosion of the petrochemical industry in Nigeria. Since then, there has
been a significant increase in petroleum-based products which have
contributed positively to the Nigerian economy.
The need for the treatment and conversion of refinery products for the
creation of petrochemicals has led to an increase in employment
opportunities nationwide for about 10% of the pollution. This has led to an
increase in job opportunities for young job seekers looking for gainful
employment, thus leading to an increase of savings towards investment
and per capital income for their employees. This has led to an overall
increase in the standard of living.
One of the first contributions of the petrochemical industry to the Nigerian
economy was the creation of employment opportunities. From the start,
Nigerians were employed in a variety of non-basic activities such as the
building of roads and bridges, the clearing of drilling sites, transportation
of materials and equipment, and the building of staff housing and
recreational facilities. As time went on and as the industrys training
program, regressed, they began to be employed in different units of the
petrochemical industry, and in supervisory and managerial function.
However, direct petrochemical industry, employment in Nigeria is not
likely to expand significantly in the future because the industry is very
highly capital intensive as is illustrated by the high capital labour ratio in
the industries compared with other industries.
The very high capital-labour ratio in the petrochemical industry means
that growth in oil operations is generally reflected not in the relative
expansion of employment, but in the expansion of capital investment. This
will be particularly the case when, with the passage of time and increased
extraction, the need arises for increased investment in costly techniques
of secondary recovery.
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But when we move iron life immediately apparent to the long lasting
impact from the largely monetary contribution to the real economic
impact-a completely different picture emerges which show that,
notwithstanding the massive increase in the revenue realized from the
industry has yet to make a significant impact on economic development in
Nigeria.
5. HOUSEHOLD REVENUE/INCOME
As stated above, petrochemical industries create employment
opportunities for the workforce of the Nigerian Economy. Workers in this
industry have a stable source of income for their respective households,
thus leading to a gain in revenue in households. Business men and
Women who also deal with the industry in the form of packaging, sales,
branding and commercialization earn a living through this sector as well.
The establishment of the Petrochemical industry has led to an overall
increase in the per-capital income of the people and have opened up the
possibilities for increased savings and investment opportunities.
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II.
III.
IV.
MAINTENANCE CHALLENGES
This problem is discussed under the following headings:
a. Lack of Regular Equipment Checking: Organizations need to
regularly check equipment to ensure that they are functioning
effectively. The absence of regular checking could lead to the
breakdown or malfunctioning of the equipment. This becomes
a big problem which consequently affects the organizations
ability to continue production.
b. Lack of turn-around Maintenance: It is expected that at regular
intervals, equipment should be maintained through servicing
and replacement of work-out parts. The absence of this leads
to equipment breakdown which eventually affects the
equipments capacity to perform.
c. Inadequate Maintenance Budget: Organizations should have
an adequate budget to maintain equipment but many dont
attach much importance to it. As a result, funds available
becomes insufficient. This therefore becomes a problem to
operation capacity.
d. Long neglect of infrastructure due to frequent unplanned shut
down.
e. Poor maintenance culture and Mismanagement of Assets.
NON-DOMESTICATION OF THE TECHNOLOGICAL EQUIPMENT
USED FOR PLANT DESIGN
Most of the equipment used for the refinery are imported.
Hence these equipment are very expensive and are not
readily available. This tends to affect production and increases
cost of maintenance and products per unit output.
INADEQUATE INFRASTRUCTUAL FACILITIES
Infrastructural facilities such as good roads tend to affect the
amount of products such as petrol cannot reach consumers
thus hindering the progress of the industry.
Corruption.
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V.
VI.
VII.
PROPOSED SOLUTIONS TO
PROBLEMS FACING PETROCHEMICAL
INDUSTRY
The solutions to the prevailing Challenges of the
petrochemical industry in Nigeria are itemized below.
Possible solutions to maintenance problems include the following:
I.
Standby or backup equipment that can be quickly be harnessed
for service.
II.
Inventories of spare parts that can be installed as needed
thereby avoiding breakdown of process when such equipment
starts malfunctioning.
III.
Operators who are able to perform at least minor repairs on their
equipment.
IV.
Service people who are well trained and readily available to
diagnose and correct problems with equipment.
V.
Technological equipment used for plants should be manufactured
and coupled here in Nigeria. This will reduce the overall cost of
production and cost of products per unit.
VI.
Good road network should be made available to aid the
transportation of petrochemical products as well as establishing
new methods of transporting these goods cost efficiently such as
trains.
Others include:
a. Strict penalties should be meted to Managers, Directors and
anyone if he/she is found to have corruptly mismanaged funds.
b. The Government should deregulate the sector in-order to
investigate competition while they monitor the prices so that
more layers will be attracted to this strategic business and a
general level playing field will be created for the industry.
c. Indigenization of technology should be emphasized as technology
transfer is enhanced by Government Policy.
d. The Federal Government should be serious about indigenous
production of petrochemicals.
e. The Petrochemical plants should be diversified in its output
produced.
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iii
iv
v
vi
petrochemical products.
Market for manufactured goods from petrochemical products.
Availability of appropriate processing technology.
Financing of capital-intensive projects.
Weakness:
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Opportunities:
Threats:
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RECOMMENDATIONS
The areas of Weakness and Threats should be addressed seriously.
1 The issue of weak manufacturing sector is tied partially to the low
level of available infrastructure especially in the transportation of
finished products.
2 Low level of appropriate technology calls for a national strategic
approach to technology acquisition.
3 Issues concerning national security will discourage foreign
investments and joint ventures opportunities.
4 Financing of capital intensive projects could be undertaken by
getting members of industry sectorial groups to mobilize funds for
projects relating to production of petrochemical products used by
the group.
For example, members of Agricultural and Agro-processing Group
can mobilize funds for the kick-off of the establishment of Ammonia
plant.
This is an idea that the Manufacturers Association of Nigeria (MAN)
can develop for implementation.
The same goes for the paints, packaging, pharmaceuticals, textile,
minerals etc. Groups companies that are currently involved in the
importation of fuel products should be encouraged to mobilize funds
for the rehabilitation of the existing refineries.
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CONCLUSION
The relevance of the petrochemical industry in Nigeria cannot be
overemphasized. Since the advent of the industry in Nigeria, we have had
a significant amount of growth and development in across several sectors.
At the same time, it has had a great positive impact on the lives of
Nigerians who have become workers in this great industry.
The sector has been plagued with several problems stemming from a lack
of commitment from the Government to fully harness the power of the
sector to nation building. Several solutions have been proposed to curb
the problems of the sector however, until the government shows a
renewed commitment to the sector, it will continue to languish in
mediocrity, leaving the Nigerian Economy without a vital industry that
could improve the Economy of the nation.
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