MTBE Capacity Technical Structure 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. Mixed C4 + methanol = MTBE + C4R2
2. N-butylene isomerization based isobutylene + methanol = MTBE + civil-use LPG
3. Iso-butane dehydrogenation (including the iso-butane dehydrogenation in mixed alkane dehydrogenation) based isobutylene + methanol = MTBE
4. TBA (by-product in the PO production process) based isobutylene + methanol = MTBE
2020-2024 MTBE Capacity Structure by Production Technology
The MTBE capacity under different technologies is basically stable. According to SCI’s data, the capacity of MTBE units based on the gas separation process may be 13,996.5kt/a in 2024, accounting for 53% of the total and ranking first. But the proportion of MTBE capacity via gas separation technology in 2024 may drop by 4% YOY. Most MTBE units adopting gas separation technology are matched with oil refining units or crackers, so the newly added MTBE capacity via gas separation technology is relatively low.
In 2024, the capacity of MTBE units based on the isomerization process may reach 3,916kt/a, taking up 15% of the total and down 1% YOY. Curbed by feedstock, the profitability of isomerization MTBE unit is unstable, so there is no newly added capacity.
The capacity of MTBE units based on iso-butane dehydrogenation is likely to reach 3,570kt/a, occupying 13% and unchanged YOY. Meanwhile, the capacity of MTBE units based on mixed alkane dehydrogenation technology may be 2,680kt/a in 2024, occupying 10% and up 2% YOY. Profits from producing MTBE via iso-butane dehydrogenation (including the iso-butane dehydrogenation in mixed alkane dehydrogenation) technology were much higher than those via isomerization technology, so market participants preferred newly building iso-butane dehydrogenation MTBE units.
In China, only Wanhua Chemical Group and Nanjing Jinling Huntsman New Material adopted the PO/MTBE co-production process in 2024, with the MTBE capacity of 780kt/a each, unchanged YOY. As of the end of 2024, the PO/MTBE unit at Shandong Binhua New Material may be put into use, and China’s MTBE capacity via PO/MTBE co-production process may increase to 2,302kt/a, taking up 9% of the total MTBE capacity and up 3% YOY.
In 2024, most eliminated MTBE units adopting gas separation technology, and these MTBE units were independent. The C4 feedstock gas they need was produced by oil refining units, so it was tough for independent MTBE plants to obtain feedstock and maintain stable production. In the future, it is estimated that most eliminated MTBE units may still be this kind of units.
The newly added iso-butane dehydrogenation MTBE capacity may be relatively high with favorable profits, propping up the proportion of iso-butane dehydrogenation MTBE capacity in the total MTBE capacity.
It is predicted that the newly added PO/MTBE capacity may continue to increase with PO capacity expansion.
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