“scg chemicals... …chemicals basics”
TRANSCRIPT
“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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