The import graph of petroleum coke (pet coke) is on the rise, as Indian companies are buying significant volumes from Venezuela for the first time, citing trade sources and shipping data, Reuters reported. Indian cement companies imported at least four cargoes totaling 160,000 tonnes of petroleum coke in the April-July period, according to Refinitiv ship tracking data and Venezuelan shipping schedules.
The data showed that a 30,000-tonne shipment is due to leave for India later this month, while a further 50,000-tonne consignment is expected to arrive at Mangalore port.
Since the advent of the Russia-Ukraine war, the price of commodities such as coal, and crude oil has soared to record highs, compelling Indian cement producers -- JSW Cement, Ramco Cements, and Orient Cement -- to buy pet coke from Venezuela.
What Is Petcoke? Is It Beneficial For The Manufacturing Sector?
One of the many industrial by-products created during the oil refining process is petcoke. It is the leftover waste product, which is produced after refining coal to get lighter fuels like gasoline, it is referred to as the bottom of the barrel fuel.
Petcoke is not a recent invention. Since the 1930s, petcoke has been manufactured. It is a valuable and necessary industrial commodity that is used directly in several processes, including the production of aluminum, the production of fuels, and the production of several other goods, such as steel, glass, paint, and fertilisers.
Cement kilns, power plants, and other industries use petroleum coke as fuel. Calcined petcoke is in great demand in the manufacturing sector. Calcined petcoke, often referred to as green petcoke, is used as a fuel and as a feedstock by producers of a variety of commodities, including aluminum, paints, coatings, and colorings.
Why Are Indian Firms Replacing Coal With Petcoke?
The reason petcoke is attracting giant cement manufacturers in India is that Venezuelan petcoke is being offered at a discounted rate of 5-10 percent lower than the United States. A tonne of petcoke is usually more expensive than coal but produces more energy when burnt. It is generally not used as fuel due to its toxic emissions. However, it is widely used by the cement industry (its largest consumer) as sulphur dioxide emissions are absorbed by limestone.
Is Petcoke Hazardous For Environment?
Petroleum coke is categorised by the United States Environmental Protection Agency (EPA) as a highly stable compound that is non-reactive in ambient circumstances. According to the EPA, petcoke has a 'minimal health hazard potential' and no known impacts on development, reproduction, or causing cancer. Petroleum coke is inert chemically, does not react chemically with water, does not dissolve in water, cannot be absorbed by living things, and does not absorb dangerous compounds into living things.