Roskill: Petroleum Coke Capacity and Markets Set to Rise
LONDON, August 16, 2012 /PRNewswire/ --
Petroleum Coke: Global Industry Markets and Outlook, 2012 (7th edition)
The dynamics of petroleum coke supply are changing according to a new report from Roskill. New coking capacity and the reducing quality of oil processed is adding to petroleum coke production levels. Consumption is still largely linked to competitive pricing levels, particularly for the bulk markets as a fuel where it competes with low value steam coal and shale gas.
Production increases in China and India
World petroleum coke production is growing. The latest report from Roskill details how the USA is still the world's largest producer, accounting for 40% of supply in 2011, but that production in China and India has grown and now accounts for nearly a quarter of global output. By 2016 Roskill forecasts that these two countries could contribute one third of world supply, which is expected to reach 170Mt.
Anode grade shortages forecast
Seven major new coking plants are expected on line between 2012 and 2016. This is changing the focus of the industry from North America to Asia. Since the global economic recession, China has emerged as a new centre for petroleum coke production, with output of 24Mt in 2011, up 10% over the previous year. However, these capacity expansions might not address the impending shortages of anode grade petroleum coke that are quantified in this latest Roskill report.
Trade swings east
Asian buyers, in particular, have taken advantage of cheaper freight rates and low petroleum coke prices to use petroleum coke as a cheaper source of fuel than coal. Buyers for power generation, cement and industrial uses bought US and Venezuelan petroleum coke, bidding whenever prices for delivery to Asia were competitive. The first half of 2012 and the whole of 2011 realised record exports of uncalcined fuel grade petroleum coke from the USA, which was bolstered by overproduction in North America. Prior to 2008, nearly all the petroleum coke shipped from the US Gulf and Venezuela was shipped to buyers in the Atlantic Basin, mainly to cement companies.
Refiners still challenged
Market conditions for downstream oil refiners, the main petroleum coke producers, remain challenging. Although demand for refined products is improving from the depressed levels of 2009, the testing business environment for refiners is expected to continue until 2016. Roskill expects oil refining margins to remain weak as competition in the refining industry remains intense. Proposed carbon policy and other climate-related regulations in many countries, as well as the continued growth in biofuel consumption, could have further negative impacts on the oil refining business.
Petroleum coke market drivers
Petroleum coke consumption is expected to rise in line with production levels as oil refiners are committed to make sure their by-product finds a market. Petroleum coke is one of several low value solid by-products of the oil refining industry and this is reflected in its pricing. Decisions about production levels are not made based on the markets for petroleum coke, as it is a waste product it is "priced to move" rather than store.
The total petroleum coke market is relatively small at 100Mtpy and worth some US$5-6Bn. It is caught between the demands of five other giant industries - oil refining, electricity generation, cement, steel and aluminium.
Oil refineries aim to produce higher sulphur petroleum coke, which then enables them to use the coking process to dispose of problem waste refinery streams. Crude steel and aluminium industries require higher purity, low sulphur, low metal cokes for the production of high quality electrodes. Fuel grade sponge and shot petroleum coke is used as an energy source in cement plants and electricity generation, and provide a useful alternative to coal for these energy users. This is as long as the delivered price on a per BTU (British thermal unit) basis is lower than coal.
Highest growth rates in electrode markets
Fuel grade high sulphur petroleum coke is the largest market, accounting for over 75Mtpy. Between 2011 and 2016, Roskill forecasts that this market will grow by 4%py. The highest growth rates will be seen for anode grade coke used in aluminium and other smelters, with an average annual growth rate of 6% over the same time period. Overall, Roskill forecasts that the petroleum coke market will increase by 4%py until 2016, slightly lower than the 6%py growth rate seen between 2006 and 2011.
Petroleum coke: Global industry markets and outlook, 7th Edition, 2012 is available at £3500 / US$5800 / €4600 from Roskill Information Services Ltd, 54 Russell Road, London SW19 1QL ENGLAND. Tel: +44-20-8417-0087. Fax +44-20-8417-1308 Email: info@roskill.co.uk Web: http://www.roskill.com/petroleum-coke
Note to editors
The report contains 244 pages, 131 tables and 63 figures. It provides a detailed review of the industry, with subsections on the activities of the leading producing companies. It also analyses consumption, trade and prices.
For further information on this report, please contact Robert Baylis (rbaylis@roskill.co.uk) To be added to our press distribution list, please contact Isobel Jarvis (isobel@roskill.co.uk).
Table of Contents
Page
1 Summary 1
2 Introduction 6
2.1 Marketable petroleum coke production processes 8
2.1.1 Delayed coking 12
2.1.2 Fluid coking 13
2.1.3 Flexicoking 14
2.2 Types of green petroleum coke 15
2.2.1 Sponge coke 15
2.2.2 Shot coke 16
2.2.3 Petroleum needle coke 17
2.3 Calcined coke 18
2.4 Factors affecting levels of petroleum coke production 19
2.4.1 Trends in petroleum production 19
2.4.2 Trends in gasoline demand 21
2.4.3 Crude oil feedstock quality 24
3 Overview of world petroleum coke production 26
3.1 Petroleum coke production capacity 26
3.2 Petroleum coke production 34
3.2.1 Outlook for petroleum coke production 36
4 Notes on countries producing and consuming petroleum coke 38
4.1 Production of petroleum coke in Albania 38
4.1.1 ARMO Albanian Refining and Marketing of Oil 38
4.2 Production of petroleum coke in Argentina 38
4.2.1 Producers and calciners of petroleum coke in Argentina 38
4.2.1.1 Exxon Mobil Refining and Supply 39
4.2.1.2 Repsol-YPF SA 39
4.2.1.3 Copetro SA 39
4.3 Production of petroleum coke in Aruba 40
4.4 Production of petroleum coke in Australia 41
4.5 Production of petroleum coke in Austria 41
4.6 Production of petroleum coke in Azerbaijan 42
4.7 Production of calcined petroleum coke in Bahrain 42
4.7.1 Aluminium Bahrain (Alba) 42
4.8 Production of petroleum coke in Belgium 43
4.9 Production of petroleum coke in Brazil 43
4.9.1 Petroleo Brasileiro SA (Petrobras) 44
4.1 Production of petroleum coke in Canada 46
4.10.1 Conventional producers and processors of petroleum coke in Canada 49
4.10.2 Petroleum coke production from oil sands operations in Canada 50
4.10.2.1 Husky Energy Corporation 50
4.10.2.2 Suncor Energy 51
4.10.2.3 Syncrude Canada Ltd 51
4.10.2.4 Other 51
4.10.2.5 Keystone Pipeline 52
4.11 Production of petroleum coke in Chile 52
4.11.1 Producer of petroleum coke in Chile 52
4.11.1.1 Empresa Nacional de Petroleo 53
4.12 Production of petroleum coke in China 53
4.12.1 Producers of petroleum coke in China 56
4.12.1.1 China National Offshore Oil Corporation (CNOOC) 56
4.12.1.2 China Petroleum & Chemical Corp. (Sinopec) 56
4.12.1.3 PetroChina Co. Ltd./China National Petroleum (CNPC) 57
4.12.2 Calcined coke producers in China 58
4.13 Production of petroleum coke in Colombia 58
4.14 Production of petroleum coke in Croatia 59
4.14.1 Industrija Nafte d.d. (INA) 59
4.15 Production of petroleum coke in Egypt 59
4.15.1 Producers of petroleum coke in Egypt 59
4.15.1.1 Middle East Oil Refinery (MIDOR) 59
4.15.1.2 Suez Petroleum Processing Co. 60
4.16 Production of petroleum coke in Finland 60
4.17 Production of petroleum coke in France 60
4.18 Production of petroleum coke in Germany 60
4.18.1 Producers of petroleum coke in Germany 60
4.18.1.1 BP PLC 61
4.18.1.2 Mineralöelraffinerie Oberrhein GmbH (MiRO) 61
4.18.1.3 OMV Deutschland GmbH 61
4.19 Production of petroleum coke in Greece 62
4.2 Production of petroleum coke in Hungary 62
4.20.1 MOL Hungarian Oil & Gas Plc 62
4.21 Production of petroleum coke in India 62
4.21.1 Producers and processors of petroleum coke in India 63
4.21.1.1 Reliance Industries Ltd. (RIL) 63
4.21.1.2 Indian Oil Company Ltd. (IOCL) 64
4.21.1.3 Bharat Oman Refineries Ltd (BORL) 64
4.21.2 Petroleum coke calciners in India 65
4.21.2.1 Goa Carbon Ltd. 65
4.21.2.2 Rain CII 65
4.22 Production of petroleum coke in Indonesia 66
4.22.1.1 PT Pertamina 66
4.23 Production of petroleum coke in Italy 67
4.24 Production of petroleum coke in Japan 67
4.24.1 Producers of petroleum coke in Japan 68
4.24.1.1 Cosmo Oil Co. Ltd. 68
4.24.1.2 Fuji Oil Co. Ltd. 68
4.24.1.3 Japan Energy Corp. 69
4.24.1.4 JX Nippon Oil and Energy Corporation 69
4.25 Petroleum coke production in Kazakhstan 70
4.26 Production of petroleum coke in South Korea 70
4.26.1 Hyundai Oil Refinery Co. 70
4.27 Production of petroleum coke in Kuwait 70
4.27.1 Kuwait National Petroleum Co. (KNPC) 70
4.27.2 Petroleum Coke Industries Co. (PCIC) 71
4.28 Production of petroleum coke in Malaysia 71
4.28.1 Petronas 71
4.29 Production of petroleum coke in Mexico 72
4.29.1 Petróleos Mexicanos (Pemex) 72
4.3 Production of petroleum coke in Myanmar 73
4.30.1 Myanma Petrochemical Enterprise 73
4.31 Production of petroleum coke in Norway 73
4.31.1 Producers of petroleum coke in Norway 74
4.31.1.1 Mongstad Refining 74
4.32 Production of petroleum coke in Romania 74
4.32.1 Producers and processors of petroleum coke in Romania 74
4.32.1.1 Astra SA 74
4.32.1.2 SNP Petrom 75
4.32.1.3 Petrotel SA 75
4.32.1.4 Rafo SA 75
4.32.1.5 Rompetrol Group 75
4.32.1.6 Rafinaria Dărmăneşti 76
4.32.1.7 Elsid 76
4.33 Production of petroleum coke in Russia 76
4.33.1 Producers and processors of petroleum coke in Russia 77
4.33.1.1 JSC Bashneftekhimzavody (Bashneft) 77
4.33.1.2 LUKOIL 77
4.33.1.3 Rosneft 77
4.34 Production of petroleum coke in Saudi Arabia 78
4.34.1 Saudi Aramco 78
4.34.2 Saudi Company Modern Mining 79
4.35 Production of petroleum coke in South Africa 79
4.35.1 Shell and BP South African Petroleum Refineries Pty Ltd. (Sapref) 79
4.36 Production of petroleum coke in Spain 79
4.36.1 Producers of petroleum coke in Spain 80
4.36.1.1 Repsol-YPF 80
4.36.1.2 BP PLC 81
4.37 Production of petroleum coke in Syria 81
4.37.1 Homs Refinery Co. 81
4.38 Production of petroleum coke in Taiwan 82
4.38.1 Chinese Petroleum Corp. (CPC) 82
4.38.2 Formosa Petrochemical Co. (FPCC) 82
4.39 Production of petroleum coke in Turkey 82
4.4 Production of petroleum coke in Turkmenistan 83
4.41 Production of petroleum coke in Ukraine 84
4.42 Production of petroleum coke in the UK 84
4.42.1 ConocoPhillips UK 85
4.43 Production of petroleum coke in the USA 86
4.43.1 Trends in US petroleum coke production 86
4.43.2 US petroleum coke consumption and international trade 88
4.43.3 US petroleum coke production capacity 90
4.43.4 Producers of petroleum coke in the USA 98
4.43.4.1 BP United States 98
4.43.4.2 Chevron Corp. 100
4.43.4.3 CITGO Petroleum Corporation 101
4.43.4.4 Coffeyville Resources LLC (formerly Farmland Industries) 102
4.43.4.5 ConocoPhillips 102
4.43.4.6 Delek US Holdings Inc. 107
4.43.4.7 Exxon Mobil Corp. 107
4.43.4.8 Flint Hills Resources 108
4.43.4.9 Holly Frontier Corporation 109
4.43.4.10 Hunt Refining Co. 110
4.43.4.11 Husky Energy Corporation 110
4.43.4.12 LyondellBasell Industries 111
4.43.4.13 Marathon Petroleum Corporation 111
4.43.4.14 Motiva Enterprises LLC 112
4.43.4.15 National Co-operative Refinery Association 112
4.43.4.16 Pasadena Refining System 113
4.43.4.17 PBF Energy Corporation 113
4.43.4.18 Shell Deer Park Refining Co. 114
4.43.4.19 Shell Oil Products US 114
4.43.4.20 Sunoco Inc. 115
4.43.4.21 Tesoro Petroleum Corp. 116
4.43.4.22 Total Petrochemicals USA 117
4.43.4.23 Valero Energy Corp. 117
4.43.5 Petroleum coke calcining operations in the USA 119
4.43.6 US marketers and distributors of petroleum coke 121
4.44 Production of petroleum coke in Uzbekistan 122
4.44.1 Uzbekneftegaz 122
4.45 Production of petroleum coke in Venezuela 123
4.45.1 Producers of petroleum coke in Venezuela 124
4.45.1.1 Petróleos de Venezuela SA (PDVSA) 124
4.45.1.2 Orinoco Belt upgraders 125
4.45.1.3 Petroleum coke calcination in Venezuela 126
4.46 Production of petroleum coke in the US Virgin Islands 126
4.46.1 Hovensa LLC 126
5 Overview of world consumption of petroleum coke 128
5.1 World consumption of petroleum coke 128
5.2 Consumption of petroleum coke by region and end use sector 131
5.3 Consumption of petroleum coke by industry 144
6 End uses for petroleum coke 146
6.1 Consumption of petroleum coke as a fuel 146
6.1.1 The use of petroleum coke as a fuel in oil refineries 146
6.1.2 The use of petroleum coke as a fuel in the cement industry 148
6.1.2.1 Cement production and consumption 151
6.1.2.2 Outlook for petroleum coke consumption in cement production 153
6.1.3 The use of petroleum coke as a fuel in power generation 155
6.1.3.1 Consumption of petroleum coke as a fuel in generating electricity 156
6.1.4 The use of petroleum coke as a fuel in titanium dioxide production 159
6.2 The use of petroleum coke in carbon and graphite electrodes and other
non-fuel applications 163
6.2.1 Manufacture of carbon and graphite products 164
6.2.2 Production of carbon and graphite electrodes 167
6.2.2.1 GrafTech International Ltd. 169
6.2.2.2 Graphite India Ltd. (GIL) 170
6.2.2.3 HEG Ltd. 170
6.2.2.4 SGL Carbon Group 171
6.2.2.5 Showa Denko 171
6.2.2.6 Tokai Carbon 171
6.2.3 The use of carbon and graphite in the aluminium industry 172
6.2.3.1 Manufacture of carbon anodes for aluminium 172
6.2.3.2 Carbon cathodes or potlining for aluminium 176
6.2.3.3 Consumption of petroleum coke in the aluminium industry 176
6.2.4 The use of carbon and graphite electrodes in steelmaking 179
6.2.4.1 Manufacture of EAF electrodes for steelmaking 179
6.2.4.2 World steel production 181
6.2.5 The use of carbon and graphite in ferroalloys production 186
6.2.5.1 Ferrosilicon and silicon metal 190
6.2.5.2 Ferrosilicon capacities and producing companies 193
6.2.5.3 Ferromanganese, silico-manganese and other manganese
products 195
6.2.5.4 Ferrochromium 197
6.2.6 The use of carbon and graphite in phosphorus production 197
6.2.7 The use of carbon and graphite in calcium carbide production 198
6.2.8 The use of carbon and graphite in silicon carbide production 199
6.2.9 The use of petroleum coke in magnesium metal production 199
6.2.10 The use of petroleum coke in the chlor-alkali industry 199
6.2.10.1 Chlorine 199
6.2.10.2 Caustic soda 203
6.2.11 Other applications for petroleum coke 204
6.3 The use of petroleum coke in carburisers and recarburisers 205
6.4 The use of petroleum coke in refractories 206
6.5 Other carbon products containing petroleum coke 207
6.5.1 Chemical applications for petroleum coke 208
6.5.2 Mechanical applications for petroleum coke 209
6.5.3 Aerospace and nuclear reactor applications for petroleum coke 209
7 International trade in petroleum coke 211
7.1 International trade in green petroleum coke 211
7.2 International trade in calcined petroleum coke 222
8 Petroleum coke prices 230
8.1 Uncalcined petroleum coke prices 230
8.1.1 Thermal coal 240
8.2 Calcined petroleum coke prices 243
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