Kuwait Petrochemicals A Growth Strategy - KPC · PDF fileKuwait Petrochemicals A Growth...

Kuwait Petrochemicals

A Growth Strategy

ANWAR Ben SALAMAHANWAR Ben SALAMAHDeputy Chairman & Deputy Managing Director, Planning

Petrochemical Industries Companyp y

© Petrochemical Industries Company 2011(A Subsidiary of Kuwait Petroleum Corporation)

PIC Among Kuwait Petroleum Corporation Subsidiaries

KOCKOCKOCKOCKNPCKNPCKAFCOKAFCO

KUFPECKUFPEC

OSSCOSSC

KPCKPCPICPIC

KPCKPCODCODC is the petrochemical arm of is the petrochemical arm of

Kuwait Petroleum CorporationKuwait Petroleum Corporation

KOTCKOTC

KGOCKGOCKPIKPI

KPC’s Strategic DKPC’s Strategic Direction for PIC is :irection for PIC is :Increase petrochemicals contribution in KPC’s turnoverIncrease petrochemicals contribution in KPC’s turnover

KPIKPI


2

PIC Vision

We aspire to be a recognized global petrochemical

player leveraging Kuwait national resources in

l dd d hi d i h d b ivalue added partnerships to drive growth and being

admired by our stakeholdersadmired 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 petrochemicaldownstream extension into high value petrochemical

business while ensuring integration with KPCg g

activities both domestically and internationally.


4

PIC Goal

Create Sustainable Corporate Value

- Sustainable Economic Value

Corporate Value

- Sustainable Social Value

- Sustainable Environmental Value


5

Worldwide Trends in Petrochemicals

250

200

250Historical Forecast

150

MM

TPA

Ethylene

Propylene

50

100

Tota

l py

PTA

0

50

1990 1995 2000 2005 2010 2015 2020 2025

Paraxylene

Since the 1990s, key petrochemicals have achieved above GDP growth rates globally

1990 1995 2000 2005 2010 2015 2020 2025


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rates globally.

Source : Chemsystems

Middle East Trends in Petrochemicals

Source Nexant

40

50Historical Forecast

30

MTP

A

Ethylene

20

Tota

l MM

Propylene

10

PTA01990 1995 2000 2005 2010 2015 2020 2025

PTA Paraxylene


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Petrochemicals Growth in Kuwait

Realizing their long term potential Kuwait ventured into Realizing their long term potential, Kuwait ventured into commodity petrochemicals in 1990s

EQUATE• Products :

• Ethylene 800 Kta

Polypropylene• 100 Kta Gas phase Plant • Capacity increase to 150 Kta post• Ethylene 800 Kta

• Polyethylene 600 Kta• Ethylene Glycol 500 Kta• Capital cost : $ 1.9 bn

• Capacity increase to 150 Kta post Olefins-II commissioning.

• Capital cost : $177 MM

19971997Polypropylene Polypropylene Polyethylene Polyethylene and MEG produced for and MEG produced for 11stst time in Kuwaittime in Kuwait


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Polypropylene, Polypropylene, Polyethylene Polyethylene and MEG produced for and MEG produced for 11 time in Kuwaittime in Kuwait

Strategy Plan 2002~20

KPC’s vision for PIC : Grow in Petrochemicals Inside and Outside Kuwait

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Petrochemical Growth Strategy PlanSt 1 St 2

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St 1 St 2

Extend and

Stage 1 Stage 2

Create viable

Stage 1 Stage 2

Extend anddefend core businesses

Build emerging

Create viableoptions

Time Frame2001– 2005 2005 – 2010 2010 +

emerging businesses

Time Frame–2001 2005 2005 2010 2010 +

Horizon-1 Horizon-2 Horizon-3


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Strategy Plan – Horizon 1&2

• Promoting a strategy to grow in core petrochemicals g gy g pthrough :– Geographical expansion in global market

An international Alliance between PIC and DOW for manufacture and sale of MEG

An international alliance between PIC and DOW for manufacture and sale of PET Business

sale of MEGMEG capacity 1000 ktaCapital investment $688 MM

PET Capacity 340 ktaCapital investment $210 MM


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Strategy Plan – Horizon 1&2

• Promoting a strategy to grow in core petrochemicals g gy g pthrough :

TKOC

• Olefins JV between DOW, PIC, Boubyan and Al-Qurain

TKAC

• Aromatics JV between PIC, KNPC and Al-Qurain

TKSC

• Styrenics JV between TKAC and DOWPIC, Boubyan and Al Qurain

• Products :• Ethylene 850 Kta• MEG 600 Kta• Polyethylene* 400 Kta

KNPC and Al Qurain• Products :

• Paraxylene 780 Kta• Benzene 370 Kta

• Commissioned in Dec-2009

and DOW• Products :

• Styrene 450 Kta

• Commissioned in Aug-2009

• Commissioned in Aug-2008

• *PE as expansion of existing EQUATE PE Plant

Commissioned in Dec 2009


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PIC Growth in Petrochemicals

Thus PIC leverages its position in hydrocarbon d i h i lsector to enter and grow into petrochemicals

Diversified Petrochem

Base

Building the Supply Chain TKOCTKOC

TKACTKAC

MEGlobalMEGlobalEquipolymerEquipolymer

TKSCTKSC

Add value to Refinery

Growing in Petchems

EQUATEEQUATEGrowing inFertilizer

Refinery Stream

PPPP

1970 1980 >>> 1997 2004 2009


12

PIC Business Portfolio

PIC has diversified its position as a significant player inP t h i l ith l l d I t ti l i t tPetrochemicals, with local and International investments

International Local I t tFERT.International

Investments Investments

GPICPP

(100%)

(100%)

GPIC(33.33%)

PICEQUATE(42.5%)

MEGlobal(50%)

PIC

TKSC

TKOC(42.5%)

Equipolymer

TKSC(57.5%)TKAC (PX)

(40%)KPPC


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(100%)

Horizon-3 : The Next Phase

Future Growth StrategyStage 1 Stage 2

Extend and

Build emergingbusinesses

Create viable options

defend corebusinesses Growth Parameters

New core extensionsIntegrationDerivativesValue creation thru partnerships

Time Frame2001–2005 2005–2010 2010+Horizon 1 Horizon 2 Horizon 3


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Horizon-3 Plan

The strategy plan growth themes have been defined in term of specific projects : specific projects :

Inside Kuwait :

1) Mix Feed Olefin cracker2) PTA/PET

Outside Kuwait:

• Integrated Refinery and Petrochemical Project in China.


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FUTURE PROJECTS (Olefins-III)

Olefins-III project in KuwaitThis is the next olefins cracker Plant proposed by PIC for Kuwaits s t e e t o e s c ac e a t p oposed by C o u a tIt will be a mixed feed cracker comprising a mix of Ethane, LPG and Naphtha feedstocksProposed Petchem Products p– Ethylene 1400 Kta– LLDPE 450 kta– HDPE 450 kta– Glycols 625 kta– Poly propylene 450 kta– Ethanolamine 120 ktaEthanolamine 120 kta– Other probable derivatives* Propylene Oxide, Acrylic acid etc.

Project Cost :9-11 Billions $ Location : AL Zoor


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Olefins-III proposed Schedule

KPC ApprovalTo Proceed

FEED Authorization

Final Authorization

Project Completion

201320122011 20152010 2014 2017

Pre-feasibilityStudy

FEED

FeasibilityStudy

FEED

EPC

Startup

We Are HereWe Are Here


17

FUTURE PROJECTS (contd)

CHINA PROJECT• It is an integrated Refinery & Petrochemical Project• It is an integrated Refinery & Petrochemical Project

10%

Shareholding SINOPEC

50%

30%

10%10%

KPC

International l

20%

10%KPI

PIC

Oil Company

International Petrochemical Company

Proposed Petchem Products Polyethylene 450 kta CompanyPolyethylene 450 ktaPolypropylene 750 ktaGlycols 425 ktaAmines 200 ktaEVA 200 ktaEVA 200 ktaAromatics 700 kta

Project Status• Project Application Report submitted,


j pp p ,• Approved from National Development and Reform Commission to start FEED

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FUTURE PROJECTS (contd)( )

PTA / PET PROJECT in KuwaitPTA / PET PROJECT in Kuwait

Utilizing Paraxylene from TKAC and MEG from Utilizing Paraxylene from TKAC and MEG from Equate

Products• PTA 600 kta• PET 500 kta

Project Status :• Feasibility Study


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Kuwait Petrochemicals A Growth Strategy - KPC · PDF fileKuwait Petrochemicals A Growth...

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