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# OAR Box 1872 Prepped by Keeia Richards



# Document

Number: 

# 52 ) 11-1-10

1

Docket Number: 

# A-90-1 9

Printed 11/26/20088:51:51 AM

Sheet 52 of 204P. 2



## • SEN TBY-RIP

. N

. C , 2770 S ; 5-3-8 1 :11:07A M J RADIA N CORPORA " ' A-9 0 1 Q

MARC H 199

0 Pwrfouitcpon - Augus t 198 5 - TOLUEN E

FOCUS....Toluen e (els o calle dtoluol ) i s a n aromati c compoun dwit himportan t chemica l an o fue l applica tions . Whil e i t i s a key feedstoc k for raking benzene , vi a hydrcdealkyletio n(HDA) , i t i e els o e desirabl e octan e boostin g componen t fo r gasolin e blending , dependin g o n th e economic s o f competin g octan e enhancer s sn drefiner y

operatin g conditions . I n 1S8 9 abou t 275-30 0 millio ngallon s o f isolate dtoluen e ar e estimate d t o hav e bee nadde dt o th e gasolin e pool . A s crud e oi l price s decline , toluen e become s mor e attractiv e a s a noctan e enhe.-.ce

r tha noxygenate dmaterial s suc ha s MTB E (methyl-t-buty l ether) , methano l and fermenta tion-derive dethane! . Toluen e ha s sle o bee ne nimportan t solven t fo r protectiv e coatings , ink s en d adhe sives , bu t us e a s a solven t ha s decline dbecaus e o f stricte r ai r qualit y standards . Benzen e as s th e larges t outle t for toluen e i n 1989 . However , tota l deman dfo r toluen e i n thi s us e wa s no t me t du e t o numerou s HD A plan t outages . Benzen e price s ros e rapidl y i n respons e t o suppl y shortages . HD A productio no f benzen e fro m toluen e i s use dt o a larg e exten t whe nth e benzen e pric e i a hig hrelativ e t o toluene , a s wa s th e cas e i n 1989 . Toluen e deman dpeake di n 19S7/8 8 o n th e strengt ho f ver y stron g de man dfo r HDA

benzen e and continue dstron g deman di nth e gasolin e poo l a a lea dphesedow nwa s accomplished. '
OUTLOOK....U S toluen e deman dshoul dexhibi t ver y modes t growt hove r th e nex t severa l years , primaril y becaus e competitio nfrcm oxygenate doctan e enheneer s ha 6 increase dc n th e heel s o f increase dlegislativ e pressure s concernin g ai r quality , movin g i n th e directio no f remova l o f srometic s from th e gasolin e pool . Growt hi n deman dfo r toluen e i n gasolin e appear s t o be slowing , an d mos t majo r chemica l an d solven t requirement s fo r toluen e appea r t o b e stati c nea r term . Benzen e deman di s expecte dt o gro w e t abou t 3 % pe r year , an d som e o f thi s growt hmil l impac t o n toluen e throug hHOA , althoug hmodestly . However , i f toluen e i s remove dfro

m th e gasolin e poo l t o an y grea t degree , it s velu e wil l n o doub t dro o a e surpluse s wil l occur . I nsuc ha scenari o increase dtoluen e usag e i n dealkylatio nt c benzen e shoul db e expected . Littl e o r n o growt hca n be expecte dfo r th e toluen e derivativ e TD I (toluen e dllsccyenete) . Man y urethan e application s base do n TD I ar e etstl c o r hav e essentiall y

reache dth e saturatio npoint . HO I (methy l diphery l dilsocysnete ) i s replacin g TD I ir . bot hrigi dendflexibl e urethan e application s e s i t provide s propert y

advantage s alon g wit hbein g les s toxi c t o wor k with , TD I bein g elaeeifie e a s a suspec t carcinoge nan d M.D

I i s not . Thi s replacemen t i s particularl y eviden t i n automotiv e foem applications . Solven t application s fo r toluen e wil l continu e t o decline.e s environmenta l an d economi c considera tion s restric t th e us e o f sclvent a i n genera l and particularl y diluent s and . wea k activ e solvent s suc he e • toluene . Th e acceleratin g tren dtoward s water-based , hig hsolid s and solventles s protectiv e coatings , ink s en dadhesive s wil l reduc e th e potentia l fo r toluen e usage . Stronge r activ e oxygenate dsolvent s suc ha s methy l ethy l keton e wil l c e use dinstea do f aromatic s lik e toluen e t o provid e lo w Volatil e Organi c Com pound s (VOCs) . Th e installatio no f solven t recyclin g facilitie s b y consumers , s s wel l 8 6 increase d contrac t solven t recovery , wil l els o restric t requirement s fc r virgi ntoluen e production . PRICING....Th e floo r pric e fo r toluen e i s generall y estsblishe db

y it s blendstoc k velu e i n th e gasolin e pool . Th e uppe r pric e limi t i a it s feedstoc k valu e i n th e productio no f benzen e b y HDA . Thus , e t an

y time publishe do r trac e "liet " price s er e essentiall y meaningless . Toluen e price s wer B e s hig he s $1.2 0 pe r gallo ni n earl y

1SS9 , befor e fallin g of f t a the 75-8 0 cent s pe r gallo nrang e i n th e fal l an d the nrecover in g t o abou t 9 5 cent s pe r gallo nb y yea r end . Durin g th e recen t apectacula r increase s i n benzen e prices , toluen e pricin g di d no t exactl y follow sui t becaus e o f operatin g problem s i n th e HO A are a resultin g i na reduce dtoluen e usage . I n addition , refiner s wer e no t lookin g fc r grea t quantitie s o f toluen e i nth e gasolin e pool . Spo t toluen e price s ar e expecte dt c fluctuat e i n th e rang e o f $.9 0 - 1.0 5 pe r gallo nove r tn e nex t severa l >ear9 , e s supplie s shoul dbe plentifu l allowin g fo r deman dt o be met . AVERAG E PRIC E RANG E - TOLUEN E (PETROLEUM ) Cen t Fe r Gallo n- 'Industria l o r Nitratio nGrad e - Barge s • «••••«•«• « HISTORICA L " « •••• • • PROJECTE D • 156 S 197 0 107 5 19e 0 19S 5 198 6 198 7 198 6 198 9 199 0 199 2 

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### 85 0 Sinc e 198 2 th e USIT C ha s no t reporte dtoluen e productio nb y coke-ove noperators . Coke-eve noutpu t ha s bee ninsignifican t i n recen t years . Sale s dat a fo r toluen e produce db y petroleu m

refiner s includ e onl y

high-purit y

(93-100%, ' toluene . I t i s assume dtha t el l indicate doutpu t i a hig hpurity . AVAILABILITY....Base do n variou s trad e estimates , U S extractio nan d distillatio ncapacit y fo r toluen e

•ib'veg a 1. 3 UllllU " y»llut>o

. Will i U> e Uo" U luncu U o IBJWVIAWI I i n «»W.M«UC O i n iioo&llno , tr-»r » «r->owl ° b « p. o shortag e i n toluen e sucplie s fo r chemica l conversion , i-n th e foreseeabl e future

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## S c ^ BYI RIP , N , C . 2770 9 ; 5 - 3—S I : 11:05A M : RADIAN

CORPORATION - 21 5 64 3 2772 1 nil

. " PRODUCER S - TOLUEN E

The followin g companie s o r affiliate s wer e liste da s 19S S manufacturer s o f toluen e b

y th e USIT C (U S Internationa l Trad e Commission) !
Amerad a Hes s (St . Croix ) Coasta l Corp . Phillip s Petroleum America nPetrofin a Exxo nChemica l Shel l Chemica l Aroche m Internationa l (PR ) Hil l Petroleu m Southwester nRefinin g Ashlan dOi l Koc hIndustrie s Su nCompan y B P Chemical s Lyondel l Petrochemica l Tennec o Oi l Champli nFa r a the nOi l Texac o Chevro nChemica l Mobi l Oi l Unio nCarbid e
EN D USES....Toluen e i s als o referre dt o a s methy l benzen e en dphenylmethene . Th e terminolog y "toluol " i s ofte nuse dinterchangeably , but ca nals o denot e crud e material . Toluen e i s e clear , flammable , refractiv e liqui dwit ha benzere-lik e odor . The productio no f benzen e b y the hydrodaalkylstio n(HDA ) proces s i s th e larges t chemica l us e for toluene . Othe r chemica l derivative s includ e toluen e diisocyanate , benzoi c acid , benzeldehyde , dye e an dexplosives . Trinitrotoluen e (TNT) , fo r explosives , wa s a t on e tim e th e majo r derivative . Toluen e ha s als o bee nwidel y use da a a solven t for paints , lacquers , ink s an dadhesives . I t i s a diluen t use da s a solven t for a variet y o f gum e an dreslne , a s wel l s e i nextractio nprocesses . A s ai r pollutio ncontro l ano ethe r environmenta l consideration s become mor e important , toluen e wil l continu e t o los e positio nt o mor e powerfu l oxygenate dsolvent s i nman y highe r solid s costing , in k an dadhesive s applications . Gesolin e blendin g i s th e larges t non-chemics l applicatio nfo r toluene . U6 e a s a noctan e booete r o r enhance r depend s o nth e economic s o f the gasolin e poo l et an y perio do f time . A B crud e oi l price s decrease , oxygenate dadditive s suc ha s methy l tert-buty l ether , methano l an dtertiar y

butano l becom e les s attractive . Th e economic s o f usin g highe r octan e toluen e en dmixe dxylene s improv e wit hlowe r gasolin e prices . I nth e lon g run , th e us e o f toluen e i ngesolin e may declin e subetsntiall y e s lelgislatio ni s enacte dtha t wil l csus e s reductio ninth e amoun t c f aromatic s allowe dingasoline , a s a mean 6 t o reduc e ai r pollution . Man

y o f th e majo r refiner s ar e alread y workin g o

n"reformulated " gasolin e eontsinin g lowe r amount s c f aromatics , an d increase damount s o f oxygenate dmaterial s t o maintai nth e neede doctane . Th e amcun t o f benzen e produce dfro m toluen e depend s o

nth e overal l deman dandpric e fo r benzen e sinc e benzen e produce db y HD A ccet s mor e tha ntha t Isolate d directl y fro m refiner y

reformst e stream s o r steam cracke r pyrolysi 6 gesclines . I nth e hydrodeelkylatio nprocess , toluen e en dhydroge nar e reacte d eetalyticali y

at elevate s temperature s t o yiei c a mixtur e ur LCIUCI C ai« J mcLiior.e . i

ngoin g fro * toiuer . t o benzene , ther e i s a weigh t ice s o f abou t 23* . Th e sprea dbetwee ntoluen e an dbenzen e price s mus t b e hig henoug ht c justif y operatio no f a nHD A unit . Toluen e i a a ra

w materia l fo

r toluen e diisocyanat e (TDI ) vi a the intermediat e disminotoluer. e prio r t o reactio nnit hphosgene . TD I i s use dprincipall y t c mak e urethan e foams , wit hsmelle r volume s goin g t o use s i nprotectiv e coating s an delastomers .

EN D US E PATTER

N - 198 9 ESTIMAT E
DERIVATIV E PERCEN T Benzen e Su 1 Gesolin e Blendin g 3 4 Toluen e Diisocyanat e 9 Solvent s 5 Miscellaneou s Chemical s 2 MANUFACTURING....Althoug hscrubbin g o f coke-ove nge e wa s a mejc r sourc e o f toluen e many yeer 6 ago , no w almos t al l toluen e i s derive dfro m petroleu

m processing . \e

w processe s ar s bein g develope dwhic hconver t prccan e en e butane s t o aromatics , bu t thes e processe s have ye t to prov e thei r commercia l viability . 'Mos t toluen e i s produce dfro m selecte e fraction s o f hydrocarbon s ric hi nnaphtnenea , b y catalyti c reformin g o

r hydrofcrming . Th

e proces s involve s catalyti c dehydrogenatio ni nth e presenc e o f hydroge nt o yiel da mixtur e c f aromati c hydrocarbons , principall y toluene . Naphth a feedstocks , obtaine d b y distillatio no f crud e petroleu m streams , ar e vaporize da t temperature s i nexces s o f 100 0 degree s F end , i n the presenc e o f 7C! i hydroge ngas , ar e passe dthroug ha reacto r containin g a dehydrogenatio ncatalys t s t pressure s u

o t o 30C 0 psi . Afte r tw o passe s throughthe reactor , the reformate , a s the dehydrogenote d fee d i e cslled , i s normall y fe dt o a Sulfolane uni t for solven t extractio no f th e containe daromatics , an dthe n t o fractionatio ncolumn s t o separat e specificatio nbenzene , toluen e an dmixe dxylenes . Naphth a feedstoc k currentl y represent s abou t 80f i o f th e cos t o f producin g BTX . Effort s ar e continuall y

bein g mac e t o improv e th e efficienc y o f catalyti c reformin g an dextractio nprocessing . Pyrolysi s gasolines , produce daa by-product a o f ethylen e productio nfrcm heav y liqui dfeed s suc hs a naphths s an

dge s oil , er e ric hI naromatics . Thes e pyrolysi s gasoline s ar e simila r t o catalyti c reformate s i ntha t the

y ar e a nexcellen t sourc e o f aromati c constituents : benzene , toluen e endmixe dxylenes . A nurbe r c f alternat e catalyti c processe s fo r toluen e have bee ndeveloped , a a wel l e s a variet y o f physica l separatio nprocesses . Th e us e o f alternat e route s depend s onth e compositio no f th e feec s an d th e supply/deman dsituatio nfo r toluene . Gasolin e blendin g i s th e larges t outle t for toluene . Mos t toluen e produce di nthe refinerie s i s no t isolate dan dremain s a s par t o f reformat e fedint o the gasolin e pool . However , purifie dtoluen e i s als o beck-blende d int o th e gasolin e poo l fo r octan e enhancement . ENVIRONMENTA L ASPECTS....Toluen e i 9 no t generall y ccneidere d t o b

e B highl y

toxi c chemical . However , unde r certai nconditions , inhalatio no f vapor , ma y b e hazardous . Vapor s ar e irritatin g t o th e eye s andrespira tor y system an dma y CSU6 B headach e an

dwfusea . The 19S9/199 0 ACCI H recommende d thre8hol dlimi t valu e time weighte daverag e i s IC O pp m fo r a neigh t hou r workday . Th e EPA , i n1984 , decide dno t t o regulat e toluen e s a e hazardou s ai r pollutan t unde r th e Clea nAi r Ac t sinc e toluen e dee s no t pos e e significan t healt hris k t o th e publi c
T o the bee t o f our knowledge , th e informatio ncontaine dherei ni s accurate . However , we d o ne t assume 6n

y liabilit y

whatsoeve r fo

r th e ccmclster.es s or accurac y o f thi s report .