TPC Groups board approved a $265 million strategic project to produce up to 650 million pounds per year of isobutylene. It is used in making polyisobutylene (PIB), used as a chemical intermediate in lubricant additives and as base stocks in lubricants.
The project includes refurbishment and restart of certain dehydrogenation assets at the companys Houston operations. Construction is scheduled to be complete in time to allow start-up late in the second half of 2014. To date, the company has spent $25 million on the project.
The strategic projects goal is to maintain our feedstock security by producing our own isobutylene, company spokesman Sara Cronin told Lube Report. We are maintaining low cost by doing this, and creating security in our ability to obtain the feedstock we need to produce PIB and highly reactive PIB.
The isobutylene will be produced from isobutene, a natural gas liquids feedstock whose production volumes continue to increase as a result of U.S. shale gas development.
TPC Group currently produces 117,500 metric tons per year of PIB at its plant in Houston and is the countrys largest merchant supplier of PIB. The second-largest, Ineos Oligomers, has an 88,000 t/y PIB plant in Whiting, Ind., which is scheduled to close before year end.
PIBs are used as base stocks in lubricants – sometimes as an alternative to bright stock – and as a component in metal forming fluids, gear oils, greases and two-cycle oils. They are also used in other applications such as caulks, sealants, adhesives and rubber. Highly reactive PIBs (with alpha-vinylidene content above 75 percent) are used as dispersants in lubes and fuels, and to make other additives.