Product profile: toluene

03 March 2003 00:00 [Source: ICB]

Demand levels are stable at present but the introduction of the Auto Oil 2 directive in 2005, which will reduce the content of aromatics in gasoline, could lead to a glut of toluene and xylenes

Uses

Toluene is used in large quantities as an octane booster in gasoline but most of that portion is never removed from refinery streams. Its major chemical use is to make xylenes (and benzene) via disproportionation (TDP) or benzene via hydrodealkylation (HDA) processes. About 16% is used to make solvents, although this outlet is declining because of stricter emissions laws. About 8% of world demand is from toluene diisocyanate (TDI) used in polyurethane foams. It also has minor use in phenol and caprolactam production, and is used as a chemical intermediate to make nitrobenzene, benzoic acid and benzyl chloride. There are three grades: TDI-grade with a purity of 99.9%; nitration grade at 98.5% for solvent use and as a feedstock for HDA and TDP plants; and in the US, there is a commercial grade of 95% purity for gasoline blending and HDA feedstock.

Supply/demand

DeWitt consultancy estimates that production in western Europe was just under 2.07m tonne last year. This is slightly down on 2001 when production reached 2.12m tonne, according to Cefic's figures. Production for the region this year is forecast by DeWitt to attain 2.14m tonne. Imports into western Europe are between 120-150000 tonne/year.

East European production is estimated by DeWitt at 649000 tonne in 2002, up on 2001's level of 565 000 tonne. Output in 2003 is expected to be 677000 tonne.

The west European market is currently fairly balanced with no shortage of product. Earlier production problems have been resolved and imports from the US and Canada to cover the shortfall have dried up. Strong benzene values have kept HDA units operational this year.

Pricing

Current European spot prices are around $460/tonne fob NWE. Numbers have been pulled up from $350-360/tonne in January by rising benzene prices and strengthening gasoline values. However, spot prices are notional with little buying interest. The quarter one contract price rose by E30/tonne to E355/tonne.

Technology

Most toluene is produced from the catalytic reforming of naphtha or from pyrolysis gasoline (pygas) co-produced in the steam cracking of liquid feeds. In the catalytic reforming process, a hydrocarbon mixture rich in aromatics is passed over a dehydrogenation catalyst. After removing light hydrocarbon gases by fractionation, the reformate is sent to a tower where an aromatic-rich fraction is obtained. Toluene is recovered from the middle cut by azeotropic or extractive distillation, or more usually by solvent extraction.

BP/UOP's Cyclar process converts butanes and propanes in LPGs into aromatics. One commercial plant using the technology has been built in Saudi Arabia.

A very small amount of toluene is still produced from light oil formed by the carbonisation of coal.

Health and safety

Toluene is a clear, mobile liquid with a sweet, pungent odour. It is highly flammable and burns with a sooty flame and flashback can occur due to its heavy vapour. It is an irritant to the eyes, skin, nose and lungs and is a powerful narcotic if inhaled. It is not considered to be carcinogenic.

Outlook

Growth in western Europe is low and is expected to average only 1%/year over the next five years, says DeWitt, while east European markets are forecast to show average growth of 5%/year.

The major issue for Europe is the Auto Oil 2 directive which comes into force in 2005 and which could spur huge structural change in the toluene market. A recent study said that the new regulations, which cut gasoline's aromatics content to a maximum level of 35%, could see up to 5m tonne/year of extra toluene and xylenes flooding the market.

European toluene capacity, '000 tonne/year

Company	Location	Capacity
Western Europe
Agip	Priolo, Italy	100
Aral	Gelsenkirchen, Germany	30
Atofina	Feyzin, France	50
	Gonfreville, France	40
BASF	Mannheim, Germany	130
BP	Cologne, Germany	100
Cepsa	Algeciras, Spain	200
EniChem	Porto Torres, Italy	60
ExxonMobil	Botlek, Netherlands	245
FinaAntwerpOlefins	Antwerp, Belgium	100
Huntsman	Wilton, UK	340
PCK	Schwedt, Germany	52
Petkim	Aliaga, Turkey	15
Petrogal	Oporto, Portugal	140
Polimeri Europa	Porto Marghera, Italy	50
Shell	Godorf, Germany	140
	Stanlow, UK	80
Shell & DEA Oil	Heide, Germany	125
	Wesseling, Germany	100
VORP	Lingen, Germany	60
Eastern Europe
Arpechim	Pitesti, Romania	60
Borzesti Petrochemical	Borzesti, Romania	50
INA	Rijeka, Croatia*	70
	Sisak, Croatia*	90
Lukoil Neftochim	Burgas, Bulgaria	50
MOL	Szazhalombatta,
	Hungary	110
Pavlodar Oil	Pavlodar, Kazakhstan	200
PC Blachownia	Kedzierzyn, Poland	40
Petrobrazi	Ploiesti, Romania	200
Petromidia	Constanta, Romania	50
PKN Orlen	Plock, Poland	90
Poli-Chem	Blachownia, Poland	40
Slovnaft	Bratislava, Slovakia	80
Belarus**	two plants	400
Russia**	seven plants	400
Ukraine**	five plants	280
operational status unknown *total national output
Source: DeWitt

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