Hoda Ragab Omran Downstream: Refining, Petrochemicals and...
Transcript of Hoda Ragab Omran Downstream: Refining, Petrochemicals and...
Hoda Ragab Omran
Business Development Senior Engineer
Egyptian Petrochemicals Holding Company
Downstream: Refining, Petrochemicals and Fertilizers Technology and
Operations (DRPFTO)
SESSION No.13
ABSTRACT No.454
“Effect of Natural Gas New Discoveries (Zohr) on the Development of
Egyptian Petrochemicals Industry”
WHO WILL BE THE WINNER ?!
Petrochemicals vs Energy
Petrochemicals vs. Energy
Match (5 min)
Energy Sector 1st AttackPetrochemical Industry
Self-defense.
Round I Round II
Natural Gas Consumption (2015)
Sector N.G Price
USD/MMBTU
Electricity 3
Domestic 0.5
Industry
Petrochemical 4
Iron and Steel 7
Petroleum 5
Cement 8
Others 5
Natural Gas Pricing per Sector (2015)
Round I: Energy Sector 1st Attack
Round I Result (1/0)
Strategic Product
Round II: Petrochemicals Self Defense
Kick 2
Significant and Direct Impact
on the National Income.
Kick 4
Solving the unemployment Problem, Reducing Crime Rate
and Serving the Society.
Kick 3
Increasing National GDP.
Kick 1
Saving Foreign Currency and
Reducing local Imports
Egyptian Imports from China Value (MMUSD)
2014/2015
Total 9000 (40% Increase)
Textiles 813
Mobiles 515
Sent and Receive Devices 469
Yarn 456
Automotive 272
Spare Parts 118
Wooden Products 124
Household Appliances 185
Shoes 100
Electric Generators 65
Toys 49
Electric Wires 27
Kick 1: Reducing Local Imports and Saving
Foreign Currency
Local Imports from China 2014/2015
Kick 1: Reducing Local Imports and Saving
Foreign Currency
Natural
Gas
Derivatives
Crude Oil
Derivatives
Intermediate Polymers/ ChemicalsPackaging
Construction
Automotive
Textiles
Electrical
Electronics
Kick 2: Significant and Direct Impact on
the National Income
Local Source of Income Egyptian Budget 2016/2017
PE Contribution in Local Income (2015 )
Item Value
Production Capacity 225 KTA
Annual Income Tax Million EGP 500
Income Tax per Ton of
Product
EGP 2,222
Percentage Share in Local
Tax Income
0.12 %
Total Exports MMUSD 120
Kick 3: Increasing National GDP
Gross Domestic Product (GDP)
• Monetary measure of the
market value of all final
goods and services produced.
• Determine the economic
performance of a whole
country or region.
Egyptian GDP Components
Egyptian GDP (2015): Billion USD 330.779
Industrial Share: 37%
2.37
7.01 7.15
4.69
5.14
1.822.19 2.11 2.23
4.204.50
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2002 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
% Growth of GDP
Echem
Mopco I
ELAB
Emethanex
EPP
Estyrenics EIPET
Mopco II
Ethydco
Urea: 600
Ammonia: 50
LAB: 100 Methanol: 1300
PP: 400
PS: 200 PET: 400 Urea: 1380
Ammonia: 100
PE: 400
Butadiene: 20
Capacity: KTA
Kick 3: Increasing National GDP
Kick 4: Solving the Unemployment Problem,
Reducing Crime Rate and Serving the Society
Development: 300
Construction: 3000
Operation: 1000
Polyethylene Plant (225KTA)
PE
225 KTA
Transportation: 500
Small and Medium Industry
Job Opportunities for PE Plant (Total Number of labor: 10000)
Manufacturing: 3000
Trading: 3000
Round II Result
Match Commentator
The Winner: Petrochemical Industry
Result: 4/1
Conclusion: Petrochemical Industry
Deserves the Higher Amounts of Natural
Gas Resource.
Zohr and Petrochemical Industry
Zohr and
Petrochemical
Industry Future
Zohr N.G to
Petrochemicals
Zohr Discovery
Item Value
Location Mediterranean Sea
Concession Area Shorouk
Capacity (Trillion ft3/d) 30
1st Year of Production Q4 2017
Production Capacity
(2017) (billion ft3/d)
1
Nature of Gas Lean
Zohr and Petrochemical Industry Future
Zohr N.G
Existing Companies (Mopco -
Emethanex)
Methanol and Derivatives Project
MTP Project
Acetyls Complex
Engineering Plastics Project
Fertilizer Project
Zohr N.G to Specialty Petrochemicals
Why Special Petrochemicals?
High Volume
Low Price (USD1.5-2 /Kg)
Lower Profitability
High Competition
Lower Volume
Higher Price
Higher Profitability
Lower Competition
Price Stability against Crude Oil Price
Depression.
Volume according to Application
Highest Price
Highest Profitability
No Competition
Project Phase I Feasibility in Detail
N.G
830 KTA
130 MMSCFD
Methanol
1300 KTA
Polyacetal
50 KTA
PBT
60 KTA
1,4 Butanediol
44 KTA
1400 KTA
Methanol
Production
Unit
50 KTA
Polyacetal
Production
Unit
60 KTA
PBT
Production
Unit
75 KTA
Butanediol
Production
Unit
31 KTA
60 KTA
Formaldehyde
37%
Production Unit
100
KTA
Polyacetal (POM) and PBT Applications
Trade Balance (tons)
Polyacetal Resins (POM) Regional Net Trade Annual Growth Rate in Demand 6%
PBT Global ConsumptionAnnual Growth Rate in Demand 6%
Global PBT Consumption by Region in 2012 (Total:830
KTA)
Expected Global PBT Consumption by Region in 2025
(Total:1,650 KTA)
Project Financial Indicators
Economic Indicators
TIC MMUSD 1960
Feedstock Price at 1st Year of
Production
USD 6 /MMBTU
Project IRR 16%
Equity IRR 18%
Project NPV MMUSD 649
Equity NPV MMUSD 799
PBP 8
Share in National Income (Taxes) MMUSD 6,952
Total Exports (50% of Production) MMUSD 12,665
Note: Integration shall reduce the project TIC to be lower than MMUSD 1960 by 10-20% so
project IRR shall be enhanced to be about 18%.
Conclusions
• Petrochemical Industry has a Direct Impact on the
National Economy.
• Petrochemical Industry is the Solution to Increase the
National Income and Local GDP.
• New Natural Gas and Crude Oil Discoveries will Facilitate
Future Development of Egyptian Petrochemical Industry.
• Petrochemical Industry Deserves the Higher Amounts of
Natural Gas Resource.
THANK YOU
Hoda Ragab Mohamed Omran
Business Development Senior Engineer
Egyptian Petrochemicals Holding [email protected]