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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