China MTBE Production Technology Analysis
MTBE is produced by isobutylene (the component of LPG) and methanol through etherification reaction, and the major MTBE production technologies are as follows:
1. Gas separation: mixed C4 + methanol = MTBE + C4R2
2. Olefin isomerization: n-butylene isomerization based isobutylene + methanol = MTBE + civil-use LPG
3. Iso-butane dehydrogenation: isobutane dehydrogenation (including the isobutane dehydrogenation in mixed alkane dehydrogenation) based isobutylene + methanol = MTBE
4. PO/MTBE: TBA (by-product in the PO production process) based isobutylene + methanol = MTBE
The MTBE capacity under different technologies is basically stable at present. According to SCI’s data, the capacity of MTBE units based on the gas separation process was estimated at 13,846.5kt/a in 2023, accounting for 56.74% of the total. The mixed C4 available in the market could not satisfy the demand from downstream deep-processing enterprises, because most mixed C4 resources were arranged for captive use. In order to gain more feedstock gas of isobutylene, the production processes of isomerization and dehydrogenation developed rapidly. In 2023, the capacity of MTBE units based on the isomerization process reached 3,846kt/a, taking up 15.76% of the total, and that of MTBE units based on isobutane dehydrogenation and mixed alkane dehydrogenation technology was 3,320kt/a and 1,830kt/a, occupying 13.61% and 7.50% respectively.
In China, only Wanhua Chemical Group and Nanjing Jinling Huntsman New Material adopted the PO/MTBE co-production process, with the MTBE capacity of 780kt/a each, unchanged from 2022.
As for gas separation MTBE unit, its production cost is the lowest, but there is almost no commercial mixed C4 and MTBE, as most mixed C4 resources are arranged as the feedstock of MTBE, and MTBE resources are arranged for oil blending. The industry access threshold is high, so the future newly added capacity may be limited.
As for isomerization MTBE unit, related enterprises need to purchase high-olefin C4 from the market, but high-olefin C4 prices were relatively high in the wake of short supply. The production cost of isomerization MTBE unit is the highest, so the competitiveness of isomerization MTBE price is relatively weak.
As for iso-butane dehydrogenation MTBE unit, China’s iso-butane supply went up, dragging down the production cost of iso-butane dehydrogenation unit. Accordingly, the competitiveness of iso-butane dehydrogenation MTBE unit is relatively strong.
In terms of PO/MTBE unit, only two PO/MTBE units come on stream in China due to large investment scale, complicated industrial chain, etc. Therein, one plant produces feedstock by itself and arranges MTBE resources for captive-use, and another plant adopts imported LPG as feedstock and equips with MTBE, high-purity isobutylene, MMA, etc., enjoying cost advantage and strengthening enterprise competitiveness. Besides, the construction of the third PO/MTBE unit in China may be completed in Q3, 2024.
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