global refining & petrochemicals congress · good health: nutrients, pharma intermediates etc....

JULY 2019

Janardhanan RamanujaluVP & Regional Head, S. Asia & ANZ, SABIC

GLOBAL REFINING & PETROCHEMICALS CONGRESS

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Classification: General Business Use

SABIC AT-A-GLANCE

*Forbes 2018 **Billion

1976Company

established

34,000Employees

around the world

50Countries of operations

3rd

Largest globalchemical company*

120th

Largest publiccompany in the world*

4Core

businesses

64World-class

plants worldwide

11,534Global patent

filings

≈ 150New products

each year

US$ B**

Totalassets

86US$ B**

Netincome

4.9US$ B**

Annualrevenue

39.9

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SABIC IN INDIA- 25 YEARS JOURNEY

SABIC WORLDWIDE BROUGHT TO INDIA SABIC INDIA PVTLTD,GURGAON

Chemicals Business:

Polymers Business:

Agri-Nutrients Business:

Olefins, Aromatics & ChlorAlkali, Glycols and Oxygenates, OXO alcohols, Linear Alpha Olefins (LAO)

PP, LDPE, HDPE, LLDPE, PVC, PS, PET and range of Engineering Thermoplastics

AMMONIA, UREA & DAP

JUBAIL GELEEN

SABIC FOR INDIAMANUFACTURING/VADODARA

Total Area : 29 Acre

Compounding Plant

Plant Start up : Q4 1993

Product Capability: Advanced

engineering compounded

thermoplastics

Sheet Plant

Plant Start up : Q4 2009Product Capability: Roofing, Skylight, Cladding, Sound Barrier

VADODARA MANUFACTURING SITE

SABIC FOR THE WORLDSABIC TECHNOLOGY CENTER

BENGALURU

Land Area: 46 Acre

Investment: > USD 100 Million

Inaugurated in October 2013

More than 360 research scientists

&engineers

4 STAR GRIHA rating by ADaRSH LEED India– Gold certified/100% Export Oriented Unit for captive SABIC Research

BENGALURU RESEARCH CENTER

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INDIAN CHEMICAL INDUSTRY

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PETROCHEMICALS TOUCHING OUR LIVES

BIOTECHNOLOGY

AGRO CHEMICALS

PHARMACEUTICAL CHEMICALS

FINE CHEMICALS

PERFORMANCE CHEMICALS SPECIALTY CHEMICALS

BULK INTERMEDIATES

BASIC CHEMICALS

TEXTILES

CONSUMER APPLIANCES/ELECTRONICS

AUTOMOBILE INDUSTRY

ELECTRONICS

AGROCHEMICALS

PHARMACEUTICALS

MASS TRANSPORTATION

CONSTRUCTION

FRAGRANCES

FLAVOURS

AGRI-NUTRIENTS

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GLOBAL CHEMICALS FORECAST

3.9

4.6

5.6

6.7

FY18 FY20 FY25 FY30

GLOBAL CHEMICAL INDUSTRY (USD TRILLION)

Global Chemicals Market is expected to grow at CAGR ~4% from USD 4Tn Now to USD 7 Tn in 2030

Indian Chemical Industry expected to grow to US$300 billion(2025) (Chemexcil, GoI) at CAGR ~ 9%

100

153

173

300

FY10 FY18 FY 20 FY 25

INDIAN CHEMICAL INDUSTRY (USD BILLION)

Sources: IHS Markit, CEFIC, GOI website

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Source IHSMarkit 2018

INDEX OF BASE CHEMICALS AND REFINED PRODUCTS GROWTH

Base year 2010

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FEEDSTOCK CHALLENGES &

VALUE CHAIN

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FEEDSTOCK : STRATEGIC OPTIONS FOR INDIA

NAPHTHA ETHANE COAL INTERMEDIATES IMPORTS

• Naphtha constitutes for >60% of feedstock for chemicals in India

• Naphtha has challenges of quality, pooling and fuel value

• Integrated refinery with HPFCC, naphtha availability will be challenge

• Small crackers by speciality chemicals industry is a possibility

• US Ethane glut offer attractive opportunity as there is low cost feedstock.

• Requires large investments in gasification terminals, shipping, pipelines etc.

• Transportation is a challenge as compared to naphtha.

• Ethane based cracker offers less building blocksdiversity.

• Coal to Olefins is attractive option to monetize low cost coal.

• China is a leader in harnessing the potential to monetize low quality coal.

• Established syngas route technologies to produce high purity ethylene & propylene.

• Capital intensive; carbon footprints, low quality coal dampens the profits.

• Intermediates imports is a viable option for specialty chemicals due to its high value addition in the end stage

• This is a practical and viable option and is recommended for India. The country has naturally adopted this route as it is a practical and viable option

• Incremental refinery expansion will not result in sufficient naphtha for total petrochemicals demand.

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Feedstocks Cracker Cracker +1 Cracker +2 Cracker +3-4 Eng Plastics

Styrene

MEG/DEG/TEG

PET

EDC/VCM PVC

PE

PP

Urea

PBT

PC

BPA

PPE2,6-Xylenol

PEI

Ethane/Naptha

Methane

Ammonia

PS

Acetone /PhenolCumene

Ethane/NapthaSteam Cracker

Aromatics Complex

PTAC4 Olefins

Syn-Gas

Paraxylene (C8)

Benzene (C6)

Ethylene (C2)

Isobutylene (C4)

Butadiene (C4)

Propylene (C3)

ABS

MTBE

Methanol

Oil Refining

PETROCHEMICALS BUILDING BLOCKS - VALUE CHAINS

Also Nylon and Polyurethanes

Brine Chlorine Caustic Soda

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IMBIBING SUSTAINABILITY

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ROLE OF CHEMICALS TO ACHIEVE UN SDGs 2030

US SDGs 2030

Zero Hunger: Agrochemicals(pesticides, fungicides, insecticides) fertilizers, soil nutrients

Sector in leading innovation; US$45 billion pa towards Annual global research

Good Health: Nutrients, Pharma Intermediates etc.

Circular economy, sustainable material, recyclable, lower energy/CO2 footprints

Water treatment chemicals, recycling.

Lowest footprint among all alternate material

Catalysts ( pollution control), fuel additives, fuel treatment, silica (solar panels), power transmission/ Grid

Continued lowering of CO2 emissions through recycling

Growing above global GDP; Above 1.5x of India GDP

Zero discharge enabler; treatment of effluent

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LINKING SDG’S TO SABIC’S TOP SUSTAINABILITY PRIORITIES

• Next step will be to reach out to key SDG stakeholders in order to define SDG roadmap

SABIC’s lightweight solutions for automotive and mass transportation reduce fuel consumption and associated CO2 emissions

Renewable sourced electricity production (solar PV, wind mills)

SABIC has set itself ambitious goals to reduce GHGs, energy consumption and water usage by 25% and material loss by 50% by 2025, from 2010 levels

SABIC is the first to implement a project for the chemical recycling of challenging mixed plastic waste back to polymer

Portfolio Assessment & Design

Renewable Energy

Carbon Efficiency

Circular Economy

Sustainable Growth

LINKED TO SDG PRIORITIES

Acquisition 24.9% stake in Clariant will support growth of SABIC’s portfolio of innovative sustainability solutions

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REGULATORY FRAMEWORK AN

ENABLER FOR SDGs

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TRANSFORMATION OF LEGISLATION, REGULATION AND SUPPORTING SYSTEMS

• Role of Governments and Legislators in the transformation process

• Legislation, Regulation and supporting Systems should drive the transformation from a linear to

circular economy

• A mix of instruments will enable the drive from a linear to a circular economy

• Emission Trading System (carbon taxation)

• Recycle tipping fees

• Legislation on carbon emission: carbon neutral by 2050

• Certification on raw material: mass balance principle

• Waste handling

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COLLABORATIONS & PARTNERSHIPS

AS A WAY FORWARD

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Successful Partnerships

in India

Feedstock

Infrastructure

Utilities

Policies

Partnership

Market

Secured feedstock at competitive prices

Modern infrastructure & efficient logistic

network required across India

Reliable utility supply & good infrastructure

available in PCPIRs

Clear & simplified policies and approval systems for

major petrochemical investments

Good market access for locally

produced & imported chemical

products

‘Win-win’ & reliable

partnerships with leading Indian

Partners

SUCCESSFUL PARTNERSHIPS: STRATEGIC DRIVERS & ENABLERS

THANK YOU

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SOURCE:ACCORDING TO A UNITED NATIONS REPORT

A CHALLENGE WITH 9.6 BILLION PEOPLE BY 2050...

50% more

energy

40% more

water

35% more

food

We will need …

Water

Renewable

Mobility

Agriculture

Health Care

Urbanization

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SABIC’S MODEL FOR FUTURE – CIRCULAR ECONOMY

Oil extractionChemicalintermediate Plastics

Integratedoil-to-chemicals project

Polymerplant

Plastic consumer product

Chemical recycling

Mechanical recycling

Energy recovery

Plastics processing

Recycling

Renewablesprocessing

Other uses: Cement production, road construction, steel production

*

* SABIC has commercialized Renewable Polyolefins in EU, made from renewable feedstocks for cracking

.

SABIC, similar to other leaders in the petrochemical industry, is exploring all possible means to support the Circular Economy.

(More than 10 patents filed by SABIC are related to this initiative)

global refining & petrochemicals congress · good health: nutrients, pharma intermediates etc....

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