Kuwait Petrochemicals A Growth Strategy

Transcription

Kuwait Petrochemicals
A Growth Strategy
ANWAR Ben SALAMAH
Deputy Chairman & Deputy Managing Director, Planning
Petrochemical Industries Company
p y
© Petrochemical Industries Company 2011
(A Subsidiary of Kuwait Petroleum Corporation)
PIC Among Kuwait Petroleum Corporation Subsidiaries
KOC
KAFCO
KNPC
KUFPEC
OSSC
PIC
KPC
ODC
is the petrochemical arm of
Kuwait Petroleum Corporation
KGOC
KOTC
KPI
KPC’s Strategic D
Direction
irection for PIC is :
Increase petrochemicals contribution in KPC’s turnover
2
PIC Vision
We aspire to be a recognized global petrochemical
player leveraging Kuwait national resources in
value
l added
dd d partnerships
hi to drive
d i growthh andd being
b i
admired by our stakeholders
3
PIC Mission
PIC,
as
a
subsidiary
of
Kuwait
Petroleum
Corporation, shall achieve a marked position with
downstream extension into high value petrochemical
business while ensuringg integration
g
with KPC
activities both domestically and internationally.
4
PIC Goal
Create Sustainable
Corporate Value
- Sustainable Economic Value
- Sustainable Social Value
- Sustainable Environmental Value
5
Worldwide Trends in Petrochemicals
250
Historical
Forecast
200
Total MMTPA
Ethylene
150
py
Propylene
100
PTA
50
Paraxylene
0
1990
1995
2000
2005
2010
2015
2020
2025
Since the 1990s, key petrochemicals have achieved above GDP growth
rates globally
globally.
Source : Chemsystems
6
Middle East Trends in Petrochemicals
Source Nexant
50
Historical
Forecast
40
Total MM
MTPA
Ethylene
30
20
Propylene
10
PTA
0
1990
1995
2000
2005
2010
Paraxylene
2015
2020
2025
7
Petrochemicals Growth in Kuwait
Realizing their long term potential
potential, Kuwait ventured into
commodity petrochemicals in 1990s
EQUATE
• Products :
• Ethylene
800 Kta
• Polyethylene
600 Kta
• Ethylene Glycol 500 Kta
• Capital cost : $ 1.9 bn
Polypropylene
• 100 Kta Gas phase Plant
• Capacity increase to 150 Kta post
Olefins-II commissioning.
• Capital cost : $177 MM
1997
Polypropylene,
Polypropylene Polyethylene and MEG produced for 1st time in Kuwait
8
Strategy Plan 2002~20
KPC’s vision for PIC : Grow in Petrochemicals Inside and Outside Kuwait
Petrochemical Growth Strategy Plan
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file again. If the red x still appears, y ou may hav e to delete the image and then insert it again.
St
Stage
11
Extend and
defend core
businesses
St
Stage
22
Create viable
options
Build
emerging
businesses
2001 – 2005
Horizon-1
2005 – 2010
Horizon-2
2010 +
Horizon-3
Time Frame
9
Strategy Plan – Horizon 1&2
• Promoting
g a strategy
gy to g
grow in core p
petrochemicals
through :
– Geographical expansion in global market

An international Alliance between
PIC and DOW for manufacture and
sale of MEG
MEG capacity 1000 kta
Capital investment $688 MM

An international alliance between
PIC and DOW for manufacture and
sale of PET Business
PET Capacity
340 kta
Capital investment $210 MM
10
Strategy Plan – Horizon 1&2
• Promoting
g a strategy
gy to g
grow in core p
petrochemicals
through :
TKOC
TKAC
TKSC
• Olefins JV between DOW,
PIC, Boubyan and Al-Qurain
Al Qurain
• Products :
• Ethylene
850 Kta
• MEG
600 Kta
• Polyethylene* 400 Kta
• Aromatics JV between PIC,
KNPC and Al-Qurain
Al Qurain
• Products :
• Paraxylene
780 Kta
• Benzene
370 Kta
• Styrenics JV between TKAC
and DOW
• Products :
• Styrene 450 Kta
• Commissioned in Aug-2008
• Commissioned in Aug-2009
Dec-2009
2009
• Commissioned in Dec
• *PE as expansion of existing
EQUATE PE Plant
11
PIC Growth in Petrochemicals
Thus PIC leverages its position in hydrocarbon
sector to enter and
d grow into
i
petrochemicals
h
i l
Building the
Supply Chain
Growing in
Petchems
Add value to
Refinery
Stream
1980
TKOC
TKAC
TKSC
EQUATE
PP
Growing in
Fertilizer
1970
MEGlobal
Equipolymer
Diversified
Petrochem
Base
>>>
1997
2004
2009
12
PIC Business Portfolio
PIC has diversified its position as a significant player in
P t
Petrochemicals,
h
i l with
ith local
l
l and
d International
I t
ti
l investments
i
t
t
Local
I
Investments
t
t
FERT.
International
Investments
(100%)
PP
(100%)
GPIC
(33.33%)
EQUATE
(42.5%)
PIC
TKOC
MEGlobal
(42.5%)
(50%)
TKAC (PX)
Equipolymer
TKSC
(57.5%)
(40%)
KPPC
(100%)
13
Horizon-3 : The Next Phase
Future Growth Strategy
Stage 1
Stage 2
Create viable options
Extend and
defend core
businesses
Build emerging
businesses
Growth Parameters
New core extensions
Integration
Derivatives
Value creation thru partnerships
2001–2005
Horizon 1
2005–2010
Horizon 2
2010+
Horizon 3
Time Frame
14
Horizon-3 Plan
The strategy plan growth themes have been defined in term of
specific projects :

Inside Kuwait :
1) Mix Feed Olefin cracker
2) PTA/PET

Outside Kuwait:
• Integrated Refinery and Petrochemical Project in China.
15
FUTURE PROJECTS (Olefins-III)
Olefins-III project in Kuwait

This
s is
s the
t e next
e t olefins
o e s cracker
c ac e Plant
a t proposed
p oposed by PIC
C for
o Kuwait
u at
It will be a mixed feed cracker comprising a mix of Ethane, LPG and
Naphtha feedstocks
Proposed
p
Petchem Products
– Ethylene
1400 Kta
– LLDPE
450 kta
– HDPE
450 kta
– Glycols
625 kta
– Poly propylene
450 kta
– Ethanolamine
120 kta
– Other probable derivatives*
Propylene Oxide, Acrylic acid etc.
Project Cost :9-11 Billions $
Location : AL Zoor
16
Olefins-III proposed Schedule
KPC Approval
To Proceed
2010
FEED
Authorization
2011
2012
Final
Authorization
2013
Project
Completion
2014
2015
2017
Pre-feasibility
Study
Feasibility
Study
FEED
EPC
Startup
We Are Here
17
FUTURE PROJECTS (contd)
CHINA PROJECT
• It is an integrated Refinery & Petrochemical Project
Shareholding
10%
10%

PIC
Proposed Petchem Products
Polyethylene
Polypropylene
Glycols
Amines
EVA
Aromatics
KPC
50%
KPI
20%
10%
SINOPEC
30%
International
Oill Company
450 kta
750 kta
425 kta
200 kta
200 kta
700 kta
International
Petrochemical
Company
Project Status
j
Application
pp
Report
p
submitted,,
• Project
• Approved from National Development and Reform Commission to start FEED
18
FUTURE PROJECTS (contd)
(
)
PTA / PET PROJECT in Kuwait
Utilizing Paraxylene from TKAC and MEG from
Equate
Products
•
•
PTA
PET
600 kta
500 kta
Project Status :
• Feasibility Study
19
20