PETROCHEMICAL INDUSTRY MAJOR CHALLENGES

Transcription

1 October. 2015

2 PETROCHEMICAL INDUSTRY MAJOR CHALLENGES Coal in China China is using MTO/MTP technology to manufacture olefins from its low-value coal reserves The European position Petrochemical production is under impact of ethane from US shale gas and fluctuation in oil price. Middle East Future LNG export competition with USA and geopolitical issues and area challenges. North America; Shale gas Investment in new ethane crackers in North America will lead to exports of competitive ethylene derivatives 2

3 PROVEN OIL AND GAS RESERVES Oil; Proved reserves (End of 2013) Natural Gas; Proved Reserves (End of 2013) 1688 Thousand million barrels Trillion Cubic Meters Saudi Arabia 16% Kuwait 6% United Arab Emirates 6% Iraq 9% Asia Pacific 3% Africa 8% Iran 10% Other World 1% North America 14% Venezuela 19% Russian Federation 6% Kazakhstan 2% Asia Pacific 8% Africa 8% Europe & Eurasia 14% S. & Cent. America 4% Saudi Arabia 4% Other World 9% Qatar 13% US 5% Russian Federation 17% Iran 18% Source: BP Statistical Review of World Energy June

4 (quadrillion Btu) WORLD ENERGY CONSUMPTION BY FUEL TYPE, Source: EIA - International Energy Outlook 2013

5 Million Tons 70 IRAN PETROCHEMICAL OUTPUT CAPACITY GROWTH

6 Million Tons IRAN PETROCHEMICAL EXPORT AND DOMESTIC DEMAND Export Domestic Demand 6

7 PETROCHEMICAL DEVELOPMENT ZONES Caspian Sea Tehran Petrochemical Special Economic Zone Sarakhs North Pars Pars Special Economic - Energy Zone Iranshahr Kish Qeshm Lavan Jask Chabahar Special Economic Zone 7

8 PARS SPECIAL ECONOMIC/ENERGY ZONE Assaluyeh 8

9 Million Tons CAPACITY BY THE END OF rd NF,POLYMER KERMANSHAH,BUTEN-1(JAM), NITRIC ACID(KAROON), HDPE 11 TH OLEFIN (1 ST KAVIAN) PVC, CHLORINE-ALKALI(ARVAND) LDPE (AMIR KABIR),POLY STYRENE2(TABRIZ), UREA2(PARDIS) EB/SM (PARS),HDPE(MEHR,6 TH METHANOL(2 ND ZAGROS),2 ND AMMONIA(PARDIS),(FARSASHIMI),1 ST ISOCYANATE (KAROON),EG(LALEH),LDPE 5 TH OLEFIN(MORVARID) PET 1(TONDGUYAN),FAJR2,9 TH OLEFIN((ARYA SASOL),10 th OLEFIN(1 st phase JAM),5 TH UREA&AMMONIA(KERMANSHAH) 4 TH UREA&AMMONIA(1 ST PARDIS),4 TH AROMATIC(NOURI),3 RD AMMONIA(RAZI),4 TH METHANOL(1 ST ZAGROS),PC(KHUZESTAN) 30 SHAHID TONDGUYAN-2,PTA(FANAVARAN),AA&CO(AMIR KABIR,LLD/HD(PARS),7 TH OLEFIN( MARUN),,ETHANE EXTRACTION 1 ST SHAHID TONDGUYAN,BUALI SINA KHARG SHIRAZ ABADAN,RAZI BISOOTUN,3 RD METHANOL(FANAVARAN),EPOXY REZIN(KHUZESTAN) HDPE(AMIR KABIR), MTBE(BANDAR IMAM) BANDAR IMAM,METHANOL(KHARG),(P.X.)TABRIZ SHIRAZ,RAZI ARAK,BANDAR IMAM(2 nd phase) Bandar Imam 1 st Phase

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11 PROJECTS UNDER IMPLEMENTATION No. of Plans 67 Design Capacity Products Value 61 Million Ton/Year 32 Billion USD/Yr Average physical Progress 20% Total Capital Investment 39 Billion $USD 11

12 WEST ETHYLENE PIPELINE 12

13 METHANOL PROJECTS UNDER IMPLEMENTATION No. Name of Project Name of Company Capacity 1000T/Y Progress (%) 1 10 th Methanol Kaveh PC th Methanol Marjan PC th Methanol Sabalan PC th Methanol Dena PC th Methanol Veniran Apadana PC th Methanol Middle East Kimiya Pars Co th Methanol Di Polymer Aryan PC th Methanol Arman Methanol Co th Methanol Siraf Energy PC st Ammonia-Methanol Arg Shimi Parsa Co nd Ammonia-Methanol Lavan Industry Exp. Co th Olefin-Methanol Bushehr PC Sum

14 EXISTING METHANOL CAPACITY No. Name of Project Name of Company Capacity 1000T/Y 1 1 st Methanol Shiraz PC nd Methanol Kharg PC rd Methanol Fanavaran PC th & 5 th Methanol Zagros1&2 PC 3300 Sum

15 METHANOL PRODUCTION CAPACITY IN YEAR OF Plant& Project Capacity 1000 t/y Existing Plants 5044 Projects under implementation Sum

16 EVOLUTION OF IRAN PETROCHEMICALS Commodity Chemicals Performance Polymers Basic Chemicals Olefins Aromatics Chlorine Fertilizers EG s PTA Methanol Styrene Differentiated Polymers PE PP PS PET ABS PC Synthetic Rubbers Acrylates Polyurethanes Specialty Chemicals MDI/TDI Polyols Amines Ethoxylates Glycol Ethers PO Downstream Industries 16 16

17 NEW CAPACITY BASED ON ACHIEVABLE FEEDSTOCK No. of Plans 36 Design Capacity 60 Million Tons/Yr Value of Saleable Products 30 Billion USD/Yr Total Capital Investment 42 Billion USD 17

18 TOTAL ACHIEVABLE FEEDSTOCK FOR NEW PROJECTS Feed Name Unit Amount Ethane Million Ton/Year 4 Naphtha / Condensate Methane ( Natural Gas) Propane & Butane Million Ton/Year Million M 3 /Day Million Ton/Year

19 SOUTH PARS GAS FIELD PRODUCTS Gas Phase Condensate LPG Ethane Methane 19

20 In next development plan; Advantage of Natural Gas feedstock in Iran, creates the potential to move towards MTO, MTP and PROPYLENE DERIVATIVES 20

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22 Percent IRAN S SHARE OF THE WORLD AND MID EAST ETHYLENE CAPACITY World Middle East The international trade of ethylene is quite limited due to expenses associated with transportation. As a result, most ethylene that crosses international borders is in the form of derivative chemicals, such as polyethylene, ethylene glycol, and EDC.

23 Percent Percent IRAN S SHARE OF THE WORLD AND MID EAST POLYETHYLENE CAPACITY & TRADE Capacity Trade World Middle East World Midlle East

24 Percent Percent IRAN S SHARE OF THE WORLD AND MID EAST ETHYLENE GLYCOL CAPACITY & TRADE 100 Capacity Trade World Middle East World Middle East

25 Percent IRAN S SHARE OF THE WORLD AND MID EAST PROPYLENE CAPACITY World Middle East International trade of propylene monomer is quite limited because of the costs of transporting highly pressurized or refrigerated liquids. Most of the propylene trade crossing international borders is in the form of derivative chemicals, such as polypropylene and acrylonytrile.

26 Percent Percent IRAN S SHARE OF THE WORLD AND MID EAST POLYPROPYLENE CAPACITY & TRADE Capacity Trade World Middle East World 21.1 Middle East

27 Percent Percent IRAN S SHARE OF THE WORLD AND MID EAST METHANOL CAPACITY & TRADE Capacity Trade World 31 Middle East World 33 Middle East Iran has the potential to take about 50% of global trade in Most of methanol capacities in future projects, will be used to produce olefins through new technologies (MTO and MTP).

28 Percent Percent IRAN S SHARE OF THE WORLD AND MID. EAST AMMONIA CAPACITY & TRADE Capacity Trade World Middle East World 19.2 Middle East

29 Percent Percent IRAN S SHARE OF THE WORLD AND MID EAST UREA CAPACITY & TRADE Capacity Trade World Middle East World Middle East

30 %9 %22 % 7 % mmtpa %23 %34 %5 %20 %7 % mmtpa %14 %24 %20 Middle East Africa S.E. Asia Aus/PNG S. America Others US/Canada 30

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35 EXPANSION OF PANAMA CANAL 35

36 THE PANAMA CANAL Rising U.S. shale-gas output is reshaping global energy markets. The Panama Canal enlargement is central to the change because the route cuts voyages by more than 7,500 nautical miles (8,500 miles) to Asia, where fuel demand is growing fastest. The waterway, handling 5 percent of world trade and shipping 333 million metric tons in the year to Sept. 30, is used by as many as 14,000 ships a year, connecting 160 countries and 1,700 ports, according to its website. 36

37 THE PANAMA CANAL 37 37

38 EXPANSION OF PANAMA CANAL The Panama Canal is definitely good news for east Asia, and it s where the highest global prices for LNG are, Svenning said. His company is putting together deals to build vessels to ship the fuel that are based on using the canal for long-term charters, he said. 38

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43 GENERAL INFORMATION ON THE NEW LOCKS 43

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46 CONCLUSION Petrochemical demand will remain tied to GDP growth Geopolitical factors influence investments Average global olefins feedstock slate will become heavier Switching to lighter feedstock will increase the demand for stand-alone plants to produce propylene 46

47 CONCLUSION CONT D Petrochemical industry plays a great role in GDP growth rate Shortage of basic petrochemicals will be resolved It will produce a variety of products currently not available in Iran New technologies will be used in the industry Huge opportunity for more down-stream industries contribution to GDP Appropriate areas for cooperation with foreign investors in Up-stream and Down-stream of petrochemical industry 47

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