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Carbon Black Feed in
Europe & Americas
Vincent J. Guercio
CTC International
International Tar Association Annual Conference
September 2018 - San Francisco
Tim Bart
Carbon Management Intl. LLC (CMI)
T O P I C S
Global CBFS Types
CBFS - Europe & Americas
U.S. CBO Exports
Petroleum vs Coal Tar CBFS
IMO 2020 - Impact on CBO2
Decant Oil (DO)Slurry Oil, FCC Bottom Oil (FBO), Clarified Oil
Ethylene Tar (ET)Pyrolysis Fuel Oil (PFO), Ethylene Bottom Oil (EBO), Ethylene Cracker Residue (ECR)
Type # 1 – Contains naphthalenes – 200+℃ residue
Type # 2 – Naphthalenes removed – 300+℃ residue
Type # 3 – Heart cut by distillation – 270-370℃ distillate
Coal Tar (CT)Raw Coal Tar – Recovered from coke oven
Anthracene Oil (ATO)/Creosote – 300-360℃ tar distillate
CBO Mix – 300-430℃ distillate or 50-60% ATO/soft pitch mixture3
Carbon Black Feed (CBF) Types
DO ET #1 ET #2 ATO CBO Mix
Sulfur, wt% 0.7 - 4.5 0.05 - 0.1 0.2 - 1.4 0.3 - 0.7 0.5 - 0.8
Ash, wt% 0.02 - 0.10 <0.01 <0.01 <0.01 0.01 - 0.06
Asphaltene, wt% 1 - 8 10 - 20 15 - 30 1 - 5 3 - 7
Toluene Insoluble, wt% 0.03 - 0.10 0.01 - 0.03 0.01 - 0.05 0.01 - 0.03 4 - 9
BMCI 115 - 140 120 - 140 120 - 140 140 - 160 160 - 190
Specific Gravity 1.06 - 1.12 1.05 - 1.09 1.08 - 1.12 1.09 - 1.14 1.17 - 1.23
API Gravity +2 - -5 +3 - -2 +1 - -5 -2 - -7 -11 - -16
CBO Types - Typical Properties
4
Qualitative CBO Comparison
5
DO ET ATO CBO Mix
Sulfur - - +++ ++ ++
Ash - - - +++ +++ -
Asphaltenes - - - - + -
Toluene Insoluble - ++ ++ - -
Metals - - +++ +++ +
Carbon - + +++ ++++
Nitrogen ++ ++++ - - - - - -
Coal Tar11690
Ethylene Tar
2330
US Decant4960
LocalDecant3040
201722 million Tons Total
Coal Tar3550
Ethylene Tar
2500
US Decant 5720
Local Decant2230
200414 million Tons Total
World CBFS Types Coal tar surpassed decant oil in 2011
6
EURussiaUkraine
China(CT / ATO / CBO Mix)
NE Asia JKT
2017 World Coal Tar CBFS Use(11.7 million Tons Total)
7
EU
Russia/Ukraine
USA
NE Asia JKT
South Asia
2017 World Decant Oil CBFS Use(8.0 million Tons Total)
Africa
Mid-East
8
Other
Americas
EU
RussiaUkraine
China
NE Asia JKT
South Asia
2017 World Ethylene Tar CBFS Use(2.3 million Tons Total)
Other
Americas
Africa
Mid-East
9
USA
Ethylene Tar
Coal Tar
Decant Oil(Slurry Oil)
2017 USA CBFS Types(2.6 million Tons Total)
10
Ethylene Tar(ECR - Ethylene Cracker Residue)
Local Decant
Oil
Coal Tar(Anthracene Oil)
US Decant
Oil
2017 Europe CBFS Types(1.9 million Tons Total)
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Domestic Demand
Exports
0
1000
2000
3000
4000
5000
6000
7000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Kilo
ton
s
US CBO Demand
12
South Asia
North Asia
Europe
Americas + Africa
0
500
1000
1500
2000
2500
3000
3500
4000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Kilo
ton
sUS CBO Export Destination
13
Gulf Coast
West Coast
Great Lakes
0
500
1000
1500
2000
2500
3000
3500
4000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Kilo
ton
s
US CBO Export Source
14
Anthracene OilATO
CBO Mix
0
100
200
300
400
500
600
700
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Kilo
ton
sChina CBFS Export History
Types
15
Crude Oil versus China Coal Tar
0
100
200
300
400
500
600
700
800
900
J14 A Jul O J15 A Jul O J16 A Jul O J17 A Jul O J18 A Jul
US
$ / T
on
Brent Crude China CT
16
South Asia CBFS – US DO vs China Mix
0
100
200
300
400
500
600
700
800
J14 A Jul O J15 A Jul O J16 A Jul O J17 A Jul O J18 A Jul
US
$ / T
on
CBO Mix SAsia US CBO SAsia
17
IMO 2020 – Residual Market Disruption
International Maritime Organization Jan 2020 mandate
Lower global bunker fuel sulfur limit from 3.5% to 0.5%
Enforced by ship flag countries, not IMO
Ship owner options:- Burn LS distillates, resids, LNG, LPG, etc.
- Use HS resid but scrubb SOX from ship exhaust gas
- Obtain waiver or just ignore IMO mandate
Ship owners are worried about compatibility of future supply18
Unscrubbed
HSFO Scrubbed HSFO
Marine Diesel 0.1%
Marine Diesel 0.5%
Residual Oil 0.5%
LNG
0
50
100
150
200
250
300
350
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millio
n
To
ns
World Bunker Fuel TypesHistory & Forecast
World Decant oil 50 million tons
Decant oil CBO 8 million tons
19
Residual Oil Demand Changes
20
IMO 2020 – Oil Market Effects
Mandate will disrupt the residual oils market & pricing
HS bunker is 57% of residual fuel oil market
Much lower value for HS resid and higher value for LS resid but only for 3-5 years while HS glut is being absorbed
Refiners must find new markets or destroy surplus HS resid
Most refiners cautious, but some are taking action:
- Installing cokers, hydrocrackers or resid desulfurization
- Segregating and moving currently available LS resid blendstocks
- Introducing 0.5%S resid bunker fuels21
IMO 2020 – Decant Oil CBO Effects
The resid market includes decant oils because they are used to lower bunker oil viscosity
HS decant oil will be cheap with much higher value for LS
HS decant CBFS should have a advantage during 2020-2025
Time period depends on actions of shipowners and refiners
CB plant off-gas SOX scrubbers should be economical
Ethylene tar and anthracene oil could be more attractive CBO22
Thank you!
Carbon Black Feed in
Europe & Americas
Vincent J. Guercio
CTC International
Carbon Black World 2018
September 2018 - Dusseldorf, Germany
Tim Bart
Carbon Management Intl. LLC (CMI)
Thank you!
Vielen Dank!