Petrochemical Industry Fundamentals Workshop · Petrochemical Industry Fundamentals Agenda ......
Transcript of Petrochemical Industry Fundamentals Workshop · Petrochemical Industry Fundamentals Agenda ......
Confidential. © 2018 IHS MarkitTM. All Rights Reserved.Confidential. © 2018 IHS MarkitTM. All Rights Reserved.
Petrochemical Industry
Fundamentals WorkshopLatin American NGLs and Petrochemicals Workshop
Buenos Aires, Argentina
Friday October 12, 2018
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Petrochemical Industry Fundamentals Agenda
8:00 – 8:30 Registration
8:30 – 10:30 Introduction and Petrochemical
Feedstocks
10:30 – 10:45 Morning Coffee Break
10:45 – 11:45 Fundamentals behind the
Petrochemical Industry.
11:45 – 12:45 Introduction to Olefins and Derivatives
12:45 – 2:00 Lunch and Networking
2:00 – 3:00 Heavy Olefin-C4- production and
derivatives
3:00 – 3:15 Afternoon coffee break
3:15 – 5:15 Global Integration: Refineries to
Petrochemicals.
5:15 – 6:00 Workshop Break Out Session
6:00 – 6:15 Concluding remarks from Presenters
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➢ Based on molecules with carbon & hydrogen atoms
(and sometimes oxygen/chlorine/nitrogen)
➢ Derived primarily from petroleum (crude oil) and gas
“Petrochemical” term started in 1920-30s as
demand for oil ramped up & chemical
production from coal couldn’t keep up
➢ Demand driven by plastics, elastomers and fibers
➢ The good news for us today is:
There is a relatively small number
of basic petrochemical building blocks
What Is a Petrochemical?
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Automotive /
transportation
Consumer products
Packaging
Building /
construction
Recreation / sport
Industrial
Medical
Pharmaceutical
Personal care
Textiles
Electrical /
electronics
Aircraft / aerospace
Business equipment
Petrochemical Demand Stimulated By Macro-economic Growth While Energy Markets Drive Supply
Decisions CUSTOMERSFormulated products /
performance materials
Plastics and engineering
resins
• Extruded films, pipe,
profiles, coatings, sheet,
foams
• Blow-molded parts
• Composites
Synthetic fibers
Rubber products
Paints and coatings
Adhesives and sealants
Lubricants
Water treatment products
Cleaning products
Industrial chemicals
Flame retardants
Others
Commodities
Differentiated
commodities
Technical
specialties
ChemicalIntermediates
BaseChemicals
Olefins
(Ethylene,
propylene,
butylene)
Aromatics
(benzene,
toluene, xylenes)
Chlor-akali
(chorine, caustic
soda)
Others
(ammonia,
phosphorous)
CHEMICAL INDUSTRY VALUE CHAINNATURAL
RESOURCES
Mining, drilling,
refining,
gas processing
Oil
Gas
Coal
Minerals
Renewables
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7 Petrochemical Building Blocks
Crude Oil, Natural Gas, NGLs, Coal and Bio
Be
nze
ne
To
lue
ne
Xyle
ne
s
Syn
ga
s
C4
Ole
fin
s
Eth
yle
ne
Pro
pyle
ne
Olefins
C1 C2 C3 C4 C6 C7 C8
AromaticsIntermediates,
Plastics, Fibers, Elastomers
This morning we will be focusing on feedstocks
and ethylene and propylene
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The First Step:
A Primer on Feedstocks
• What are the raw materials for
petrochemical production?
• How are petrochemical feedstocks
produced?
• How are feedstocks valued?
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Petrochemical Feedstock Palette
Butanes
Renewables
Natural Gas
NGL’s Petroleum
Time and Pressure
CHO to CH to C
C4
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Higher fuel efficiency and increased
use of EVs create a forecast for a
declining growth rate in the demand
for refined products.
Current assets being built in China and
other countries, currently in the planning
stages, seek to enter the petrochemical
market with significant scale.
Forecast is causing many refining
companies to re-think their
petrochemical strategy.
Petrochemicals market demand continues
to rise based on numerous demographic,
economic, and durable and non-durable
goods consumption trends.
Options range from continued but
growing feedstock supply
relationships to major direct
investments in the chemicals and
derivatives sector.
Recent public scrutiny of plastics
sustainability has raised the question of
the future for continued strong growth of
commodity plastics markets.
Refinery and petrochemical market dynamics
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Refinery-petrochemical integration trends: Assessing the value of
integrated refinery and petrochemical operations• Long term forecasts for refined products are predicting
flat-to-declining demand growth, causing refiners in all
regions to seek alternative solutions for growth
• Petrochemicals forecasts to grow at a multiple above
GDP, as economies expand and urbanization
increases. Refined products growth is forecast to
flatten by 2030
• Impact of declining growth in the refinery sector will be
a period of lower earnings, forcing older high-cost
assets to be shut down, and making room for new,
mega-scale refining capacity across Asia-Pacific
• Petrochemicals market demand continues to rise due
to numerous demographic, economic, and
consumption trends
000
300
600
900
1200
2010 2015 2020 2025 2030 2035 2040
Petrochemicals products Refined products
Index of base chemicals and refined products growth
Source: IHS Markit ©2018 IHS Markit
Petrochemicals and refined products markets,
cumulative growth
Millio
n T
on
s
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Refinery-petrochemical integration trends: Assessing the value of
integrated refinery and petrochemical operations• Long term forecasts for refined products are predicting
flat-to-declining demand growth, causing refiners in all
regions to seek alternative solutions for growth
• Petrochemicals forecasts to grow at a multiple above
GDP, as economies expand and urbanization
increases. Refined products growth is forecast to
flatten by 2030
• Impact of declining growth in the refinery sector will be
a period of lower earnings, forcing older high-cost
assets to be shut down, and making room for new,
mega-scale refining capacity across Asia-Pacific
• Petrochemicals market demand continues to rise due
to numerous demographic, economic, and
consumption trends
000
300
600
900
1200
2010 2015 2020 2025 2030 2035 2040
Petrochemicals products Refined products
Index of base chemicals and refined products growth
Source: IHS Markit ©2018 IHS Markit
Petrochemicals and refined products markets,
cumulative growth
Millio
n T
on
s
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Question & Answer
Session
Detailed Forecasts are found in our
Insight Services and in tomorrow’s
Conference.
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