“scg chemicals... …chemicals basics”

“SCG Chemicals...

@ SCG Hall 1

March 3, 2014

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…Chemicals Basics”

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Starting from oil and gas industry

Primary Gas

(Non-associated Gas) Associated Gas

Oil Well

Gas Well

Crude Oil

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Refinery

Petroleum Coke, Fuel Oil, Asphalt

20%

Petroleum gas - e.g. LPG

Gasoline

Gas oil or Diesel distillate

Kerosene/Jet Fuel

Heavy gas or Fuel oil

9%

3%

6%

22%

6%

34%

Naphtha – Chemicals feedstock

Alternative outlet (upgrade to gasoline)

Crude Oil

Oil for chemicals

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Methane

Wet Gas

95% Methane

Propane

Ethane

Butane & Others

Dry Gas

Two types of gas

Only wet gas is suitable for chemicals industry.

5%

5-15%

5%

<5%

70-90%

Butane & Others

Propane

Ethane

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Methane

Ethane

Propane

Butane

Natural Gas Liquid (NGL)

- Fuel i.e. Power Plant - Feedstock for Methanol

- Chemicals Feedstock

- Heating LPG

- Chemicals Feedstock Gas Separation Plant

(GSP)

70-90%

5-15%

5%

<5%

Small

Not all natural gas fit for chemicals

feedstock. Many are lack of ethane composition.

Gas for chemicals

Gas

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Pros

(+) Relatively cheaper feedstock

Pros

(+) Good yield of

ethylene (C2) and

propylene (C3)

(+) Lower price in

summer

Pros

(+) High product variety,

50-60% yield as

by-product

(non-ethylene, non-propylene)

(+) Easy to transport

Ethane LPG Naphtha

Conventional Chemicals Feedstock

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Cons

(-) No product variety, only for ethylene (C2) production

(-) Subject to local availability, due to uneconomical bulk transportation

Cons

(-) High price and limited supply in winter

Cons

(-) Relatively more

expensive

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Chemicals Chain

Ethane

LPG

Naphtha

Ethane Cracker

Naphtha Cracker

Ethylene (C2)

Propylene (C3)

Aromatics

• Benzene (C6)

• Toluene (C7)

• Mixed Xylene (C8)

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Feedstock Process Product

Mixed C4

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Ethylene chain (C2) …….Raw materials for polyethylene (PE) and PVC

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Polyethylene 60%

Ethylene Oxide 14%

PVC 11%

Styrene Monomer

7%

Others 8%

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Stiffness

Toughness

Four mains categories of Polyethylene (PE) and its characteristic

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LLDPE

LDPE

HDPE

MDPE

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Beside from resins production, more value can be added by compounding process

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HDPE Pipe and fitting compound

HDPE Wire and cable compound

MDPE Roto molding compound

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Compounding = Resin + Coloring + Additive

Polyvinyl Chloride (PVC)

Chlorine EDC VCM PVC

Resin

Salt

Water

H2

Caustic Soda

Ethylene (C2)

PVC

Resin

Finished

Product

PVC

Compound

Ethylene (C2)

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Chemicals Chain

Ethane

LPG

Naphtha

Ethane Cracker

Naphtha Cracker

Ethylene (C2)

Propylene (C3)

Aromatics

• Benzene (C6)

• Toluene (C7)

• Mixed Xylene (C8)

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Feedstock Process Product

Mixed C4

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Propylene Chain (C3) ……Raw materials for polypropylene (PP)

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Polypropylene 65%

Propylene Oxide 8%

Acrylic Acid 4%

Oxo Alcohol 7%

Acrylonitrile 9%

Cumene 4%

Others 3%

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Stiffness

Toughness

Homopolymer

Block copolymer

Random copolymer

Polypropylene (PP) and its characteristic

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PP Medical PP Automotive

PP Electrical appliance

High-value polypropylene resins and compound

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Chemicals Chain

Ethane

LPG

Naphtha

Ethane Cracker

Naphtha Cracker

Ethylene (C2)

Propylene (C3)

Aromatics

• Benzene (C6)

• Toluene (C7)

• Mixed Xylene (C8)

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Feedstock Process Product

Mixed C4

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Mixed C4s

Butadiene (BD)

Synthetic

Rubber

(BR, SSBR)

MMA Signboard Auto Parts

Mixed C4 ……Raw materials for butadiene (BD) and MMA

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LCD/LED TV

New movements in chemicals industry

Process Feedstock Product

Coal-to-Olefins

(CTO) Coal

Ethylene (C2)

Propylene(C3)

Methanol-to-Olefins

(MTO) Methanol

Ethylene (C2)

Propylene(C3)

Propane Dehydrogenation

(PDH)

Propane Propylene (C3)

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Investments and Challenges in China

(Inner Mongolia)

Methanol to Olefins (MTO)

• High investment

• Remote location, far away

from demand

• Water supply availability

• Environmental concerns

• Feedstock security. it

requires significant volume of

imported methanol

• High feedstock cost during winter

season due to heating demand

Propylene Dehydrogenation (PDH)

(Coastal Area) Coal to Olefins (CTO)

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Future chemicals development

Ethylene global supply 200 MT in 2020

Propylene global supply 140 MT in 2020

Naphtha 48%

Conventional Gas 43%

New shale gas crackers 4%:

Potential delay due to permit approval

Coal &

Others 5%

Naphtha 47%

Coal&Others 14%

72% liquid base = marginal price setter

Refinery 25%

New gas cracker (PDH) 14%

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SCG Chemicals (Map Ta Phut)

Long Son

Petrochemical

Complex

Chandra Asri

Petrochemical

SCG Chemicals At a Glance

ROC (SCG 67%) C2 800 KTA

C3 400 KTA

MOC (SCG 67%) C2 900 KTA

C3 800 KTA

Long Son Petrochemical (SCG 46%) • Signed long-term feedstock agreement

• Signed land lease advance agreement (400 Hectares)

• Appointed financial advisor

• During bidding for engineering, procurement and

construction contractor and securing necessary

financing.

Chandra Asri Petrochemical

(SCG 30%) C2 600 KTA

C3 320 KTA

Key Achievements • Stabilize operations

• Refinancing

• Butadiene Project

• Synthetic Rubber Project

• Debottleneck Project

• Naphtha Procurement

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HDPE

LLDPE LDPE

HDPE

LLDPE

PP

BD

SM

PVC PP

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BD SM

MDPE

Subsidiaries SCG-Dow JV SCG-Mitsui JV SCG-MRC JV Overseas

CRACKER •Rayong Olefins •Map Ta Phut Olefins

PE/PP •SCG Plastics

•SCG Performance

•Thai Polyethylene •SCG ICO Polymers

SERVICE •Map Ta Phut Tank Terminal •REPCO

PVC •Thai Plastics and

Chemicals •Nawa Plastics

LLDPE •Siam Polyethylene

SM/PS •Siam Styrene

Monomer •Siam Polystyrene

ELASTOMER Siam Synthetic Latex

PO •MTP HPPO Manufacturing

PTA/PET •Siam Mitsui PTA •Thai PET Resin

PP Compound •Grand Siam

Composites

•Mitsui Advance

Composite (Zhongzan)

MMA/CCS •Thai MMA

C4 & BR/SBR •Bangkok Synthetics

VIETNAM •(PVC) TPC Vina

•(Compound) Viet

Thai Plaschem, Chemtech

INDONESIA • (Complex) Chandra

Asri Petrochemical

• (PVC) PT TPC Indo

Plastic and Chemicals

• (Terminal) PT Siam Maspion Terminal

MELAMINE •Thai MFC

Others JV

SCG Chemicals Group …over 60 companies & more than 5,000 employees

USA •(Technology) GTC

SERVICE •Rayong Tank Terminal

Film • Siam Tohcello

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