Butadiene opportunities in the Middle East. Petchem Arabia 2013 Abu Dhabi, May 2013

Transcription

1 Butadiene opportunities in the Middle East Petchem Arabia 2013 Abu Dhabi, May 2013

2 Content 1. C4U Trade: specialized logistics & trading Business Model & Company Structure The Transatlantic Connection 2. C4 Olefins in the Middle East (present) Existing trade flows and feedstocks Logistics B/E ratio 3. Major changes New projects in the US and the ME shift in feedstocks (and B/E ratio) Logistics and trade opportunities 4. Conclusions & Opportunities PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 2

3 1. C4U Trade: specialized logistics & trading C4U Trade is a logistic service provider for C4 Olefins We fill the gap between traditional trading and pure logistics Facilitating between producers and consumers C4U TRADE PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 3

4 1.2 The European network PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 4

5 1.3 The Transatlantic Connection Aggregate, ship & distribute PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 5

6 1.4 Company Structure C4U Trade International, AG Zug (CH) C4U Trade USA, Houston (USA) C4U Trade Europe, Leuven (B) C4U Trade Middle East, UAE (2014) C4U Trade Asia, Singapore (2014) PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 6

7 2. C4 Olefins in the Middle East ( ) The Gulf region produces 20% of global C2, but only 3% of global BD Ethylene expansion from 15 to 30 million tonnes Feedstock is mainly Ethane, hence B/E ratio between 2 and 4% Despite low B/E, about 800 KT of BD is destroyed through co-cracking and hydrogenation PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 7

8 2.2 BD Locations in the Middle East PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 8

9 2.3 Pipeline grid in the US PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 9

10 2.4 Global Trade Flows for BD PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 10

11 3. Major changes Shale gas in the US will put cost competitive C2 and C2 derivatives on the global market US will however capture most C4 s through existing infrastructure (pipelines, rail, barges) New capacities in the Gulf will have heavier feedstocks, hence strong potential for C4 Olefins and derivatives (but need for logistics infrastructure) Europe under pressure and may loose its position as global C4 supplier, whilst investments make more BD available (mainly less hydrogenation) Alternative technologies (BDH, dimerization, bio) PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 11

12 3.2 Changes : Ethylene ETHYLENE North America West Europe Middle East NOTE: world (million tons): 2010: : : 175 PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 12

13 3.3 Changes : Crude C4s Crude C4 as Butadiene North America West Europe Middle East NOTE: world (million tons): 2010: : : 16 PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 13

14 3.4 Changes : Butadiene BUTADIENE North America West Europe Middle East NOTE: world (million tons): 2010: : : 14 PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 14

15 3.5 US: use every C4 molecule New Ethylene Capacities USA (kt) COMPANY LOCATION C2 CAPACITY START-UP associated Crude C4 associated BD Williams Lake Charles, LA Ineos Chocolate Bayou, TX LyondellBasell TX/ Midwest Westlake LA/ KY Dow Houston area Nova Corunna, ON ExxonMobil Bayport, TX Formosa Point Comfort, TX OxyChem Ingleside, TX CPChem Cedar Bayou, TX Sasol Lake Charles, LA Shell Monaca, PA PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 15

16 3.6 Expansions in the Middle East New Ethylene Capacities in the Middle East : ESTIMATES Country Company Capacity Timing Crude C4 Butadiene Saudi Arabia Saudi Polymers UAE Borouge Saudi Arabia Dow-Aramco Qatar QP + partner Algeria Sonatrach-Total Iran Kavyan Kuwait PIC UAE Borouge UAE Chemaweeyat/ ADBIC Iran Gachsaran/ others Iraq studies ongoing PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 16

17 4. Conclusion 1: shift in trade flows A M E R I C A S E U R O P E MDE A S I A PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 17

18 4.2 Conclusion 2: potential for C4 business growth in the Gulf Aggregate, collect and sell the actual C4s (400 kt) Need for infrastructure, logistics & marketing Extract and market the Butadiene (250 kt) and Butylenes (150 kt) Use the same infrastructure and new capacities to develop a C4 industry (800 kt) in the Gulf region, including synthetic rubber, plastics, tyres,... Need for an integrated approach PETCHEM ARABIA 18 BUTADIENE OPPORTUNITIES by C4U TRADE

19 4.3 We are the missing link PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 19

20 Thank you for your interest! PETCHEM ARABIA BUTADIENE OPPORTUNITIES by C4U TRADE 20