Wednesday, May 18, 2016

Normal Butane (C4H10) and Iso-butane (also C4H10): Components of LP Gas, Feedstock for Butadiene Used in Synthetic Rubber Manufacure, Aerosol Propellant, Refrigerant, Lighter Fuel, Component of Alkylate, and Gasoline Additive



Normal Butane (C4H10) and Iso-Butane (also C4H10): Component of LP Gas, Feedstock for Butadiene Used in Synthetic Rubber Manufacture, Aerosol Propellant, Refrigerant, Lighter Fuel, Component of Alkylate, and Gasoline Additive

Normal butane (n-butane) and its isomer, iso-butane (2-methyl propane) have the same chemical formula but different atomic structures. Their properties are mostly similar but there are some differences. The vapor pressure of both is less than that of propane (about 3-4 times less) and far less than ethane. In so-called “refined” iso-butane, or iso-butane with impurities removed, concentrated flames in special-made torches can heat up to 2700 deg F, which makes these specialized torches applicable for many specific scientific, medical, construction, soldering, and craft uses. Both butanes are also a common component in LP gas (liquefied petroleum gas) but propane is typically the main component. Butane is the lighter fuel of choice as well as being commonly used for camp stoves. It is also used as an aerosol propellant and increasingly as a refrigerant that replaces the CFCs (chlorofluorocarbons) and HFCs (hydrofluorocarbons) implicated in global warming and making a hole in the ozone layer. Butane does have one limitation as a heating fuel: it can fail to gasify in real cold weather. This is why butane is not higher in LP gas. Since camp fuel is mostly used in the summer, the butane canisters are popular.  

Butadiene

Butane is a feedstock for 1,3-butadiene (C4H6) which is used to make synthetic rubber. 1,3-Butadiene can be extracted from normal butane and petroleum in various ways: steam cracking, catalytic dehydrogenation, dehydrogenation of butenes, from ethanol, and from acetylene. In Russia it was commonly extracted from ethanol until the 1970’s. Production from steam cracking distillation is now the most common method but requires “heavy feeds,” or an NGL feedstock with significant amounts of normal butane and iso-butane relative to lower-carbon alkanes like propane and ethane. Like the NGLs butadiene is a liquid under pressure but a gas at normal pressure. It is also a component of motor vehicle exhaust, considered to be toxic as such. Thus, it is a volatile organic compound (VOC) that is found in ambient air in urban areas although it breaks down quickly in the atmosphere.

Iso-Butane: from Natural Gas Processing or from Isomerization of Normal Butane

Iso-butane is preferred as a refrigerant and aerosol propellant. It may come directly from natural gas processing (and more does now due to the increased production of NGLs from shale gas) or it may be made from normal butane in isomerization units (butamer units) which change the chemical structure of normal butane to iso-butane. This is typically done at the alkylization plant before making alkylate. Iso-butane usually costs more than normal butane on the market and this price differential can dictate how much normal butane is isomerized to iso-butane. If the price differential is high enough more profit can be made from the normal butane by converting it to iso-butane. Actually, the isomerization units can balance the isobutane market factors fairly quickly by producing more during a shortage and less during a glut. This gives it a slight advantage over other NGL markets. Normal butane is typically more abundant than iso-butane in natural gas streams. The authors at the RBN Energy blog (see references) note that the EIA does not distinguish isomerized isobutane from a refinery from natural isobutane supply separated at gas plants. EIA thus estimated that in 2012 isobutane was 9-10% of NGL volume but when isomerized isobutane was factored out the amount from gas plants was about 6-7 of NGL volume. Overall normal butane and isobutane supplies have been increasing since fracked shale ‘wet’ gas from the Marcellus and Utica has come to dominate new U.S. natural gas production. Isobutane is also used as a petrochemical feedstock for propylene oxide, isobutylene, and iso-octane. The abundance of isobutane from shale gas may effect isomerization unit usage but could be counteracted by increased production of alkylate utilizing propylene made from isobutane. 

Alkylate: High-Octane, Low Vapor Pressure, Low Sulfur Gasoline Blend Made from Isobutane and Butylene or Propylene

Gasoline is a complex mixture blended to meet various quality specifications. Alkylate, which is made in alkylization units, is made from isobutane and NGL byproducts like butylene or propylene. Typically, alkylate makes up 11-13 % of gasoline. More is added during the summer since it leads to lower vapor pressure in the warm months. Alkylate is also currently and commonly more expensive per volume than gasoline. Alkylate increases the octane rating of the gasoline which allows for greater compression in the engine before ignition of the air/gas mix and thus avoids any engine damage. However, most vehicles are designed to run on lower octane (87). Some more powerful high performance engines are designed to run on octane ratings of 89, 91, or 93. Since ethanol increases the RVP (Reid vapor pressure) in the ethanol blends and there are requirements in the summer to keep the RVP down, more alkylate is added in summer. Alkylate percentage is higher in summer than in winter. Alkylate is thought to be protective to engines and to increase ‘drivability.’ Alkylate is used more to lower RVP than to increase octane since the ethanol blended into gasoline is better than alkylate at increasing octane. 

Normal Butane is Also Blended in Gasoline

Normal butane is also blended in gasoline during the winter months due to its lower cost. This is actually the main use by volume of normal butane. This increases the RVP (Reid vapor pressure) so more alkylate is also added to re-balance the RVP by dropping it down. Gasoline is a complex blend (or seasonal blends) of products refined from crude oil and other products made from processed/extracted NGLs.

Current and Future Supply and Demand of Butanes

The advent of shale gas has assured adequate and likely abundant supplies of the butanes for the foreseeable future. EIA predicts production to rise modestly from about 600,000 to 700,000 Bbls per day over the next year or two. In terms of pricing isobutane averages just a little above normal butane and both butanes sell for a higher price than propane and ethane – typically the more carbon atoms in an alkane the higher the price. Net exports of butanes grew by 30,000 Bbls per day in 2015 and are projected to grow by 60,000 Bbls per day in 2016 and 20,000 Bbls per day in 2017, according to the EIA. This is with two new Gulf Coast export terminals opening up in late 2015. One new terminal in Texas is slated to open in 3Q 2016. Refinery and blender production of butane is seasonal and is projected to stay flat over the next few years as is overall domestic consumption. The production growth will be for exports to meet modest demand increases.

  
Pipeline Issues and Recent Pipeline Projects

NGLs are typically pipelined as ‘y-grade’ or ‘raw mix’ of all NGLs or as one NGL-component ‘purity products.’ Sometimes two NGLs are mixed together and transported. One recent pipeline being built to transport NGLs in Ohio will also transport natural gasoline. This 45,000 Bbl per day Cornerstone Pipeline will bring butane, propane, condensate mix, and natural gasoline 42 miles from Utica field gas processing facilities in Eastern Ohio to a refinery in Canton with some refined products shipped via pipeline to Lima, Ohio. They will be transported in batches to the Canton refinery. The refinery recently added a condensate splitter that can process 25,000 Bbls per day of Utica condensate.

There was a fire from an accidental liquid butane pipeline rupture in Lively, Texas in 1996 when a pickup truck drove through the butane vapor cloud igniting it and the two people in the truck (on their way to report the incident to 911) were killed in the fire. The rupture was subsequently determined to have been caused by failure to properly detect and mitigate corrosion in the line by the pipeline company.

LP Gas Export Dynamics and Increased U.S. Export Dock Capacity

Since LP Gas demand is fairly flat in the U.S. about 50% of what is produced as mostly propane and some butanes is exported. U.S. LP gas has replaced African and Middle Eastern sources in Latin America and now in Europe. The African and Middle Eastern sources have been diverted to Asia, the biggest demand driver for LP gas, particularly China and then India. Basically, sources are adjusting to supply more locally which has the advantage of lower shipping costs. The U.S. will likely continue to be a major exporter of NGLs with the significant reserves of wet and rich gas in the Marcellus and Utica and in other shale plays.

New Alkylate Plant(s?) Being Planned for the Marcellus-Utica Region

The recent merger of Markwest with a pipeline firm owned by Marathon Petroleum Corporation has allowed the companies to work together toward a possible alkylate plant in the tri-state area of West Virginia, Pennsylvania, and Ohio. Markwest markets about 75% of the NGLs in the Marcellus-Utica region and they have lots of butane to sell. Marathon Petroleum’s refineries would be one of several companies’ refineries that would buy the alkylate to be added to gasoline. The new company as MPLX predicts a 20% increase in NGL processing and a 30% increase in ethane and propane fractionation in 2016.

References:

Butane, entry in Wikipedia.com

Marathon Pipe Line Kicking Off Construction of 42 Miles of 16” in Ohio

What is Butane Commonly Used For?

The Important Role that Butane Plays in the Medical Industry – posted on the blog at butanesource.com

Why Refined Butane is Better for Jet Torches – posted on the blog at butanesource.com
1-3,Butadiene, entry in Wikipedia.com

Pipeline Accident Summary Report: Pipeline Rupture, Liquid Butane Release, and Fire, Lively, Texas, August 24, 1966 – National Transportation Safety Board

You Can Just Iso My Butane: Isobutane and Isomerization in the Shale Gas World – by Callie Mitchell at RPN Energy Blog, March 10, 2013

Wasted Away in Butane Blendingville – by Brandon Bello at RBN Energy Blog, Nov. 28, 2012

Skipping the Alkylate Fandango – The Octane Boost in Gasoline Blending – by Sandy Fielden at RBN Energy Blog, Feb 14, 2013

The Domino Effect: How the Shale Revolution is Transforming Energy Markets, Industries, and Economies – by E. Russel Brazel, CWL Publishing, 2016

Marathon Pipe Line Looking to Expand Cornerstone Pipeline for Utica Shale Liquids – by Bob Downing, in Akron Beacon Journal, April 12, 2016

Short-Term Outlook for Hydrocarbon Gas Liquids – by Energy Information Administration (EIA), March 2016
Marathon, Markwest Consider Building Plant in the Marcellus Region – by Anya Litvak, Pittsburgh Post-Gazette, January 27, 2016


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