The Reach of Energy and its Value Chain:

The Petrochemical Industry

A Presentation to:
Invest in Mexico Forum
Kite Invest

Presented by:
Dr. Mauricio Dávila, Managing Director
EnerChemTek, Inc.

México, D.F., June 22, 2016

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 Hydrocarbons Value Chain

Upstream Midstream Downstream

Source: Metso

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 Global Cracker Feedstock by Region
World
Ethane crackers will be the
most cost competitive

North America

Source: LYB

Source: ICIS

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The Tremendous Turnaround For The Ethylene/Polyethylene Value Chain
Crude Oil to Natural Gas Price Ratio

Source: LYB

 For the US the 2000-2004 recession was the worst in its history
 26 PE production lines closed
 2015-2020 surge in North America
 15 worldscale PE production lines under construction
 12 additional worldscale lines being planned
• Average capacity of each of these 27 PE production lines is 475
kilotons/year, about 10x the capacity of plants closed in the last recession
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Natural Gas Value Chain

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Ethylene Markets, 2016e

Source: EnerChemTek

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Ethylene Cracker and PE Capacity Additions in North America
Kilotons per year

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World Regions: JV´s in China

Company Main Partners

Sinopec BASF (naphtha cracker with LDPE in Nanjin, Jiansu)

Sinopec BP (naphtha cracker LLDPE and HDPE (swing) in Shangai)

CNOOC Shell (light naphtha cracker and condensates with

LDPE and HDPE in Nanhai)

FPCL ExxonMobil/Saudi Aramco (naphtha cracker with PE plant

in the Province of Fujian)

Sinopec Dow Chemical (naphtha cracker with LLDPE and HDPE

(swing) in Tianjin)

Sinopec ExxonMobil (discusions for a Refinery petrochemical

complex in Guangdong similar to the one in the Province of
Fujian)

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 China: Fujian Integrated Project Joint Venture (FIPJV)

Government of
the Province of Sinopec
Fujian

50% 50%

Saudi
FPCL ExxonMobil
Aramco
25%
50% 25%
FIPJV = Fujian Integrated
Project Joint Venture Fujian Refinery
FPCL = Fujian Petrochemical Venture Expansion
Company Limited

The first integrated project of the petrochemical industry in China

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Joint Ventures in the Middle East

Company Main Partners

Sabic ExxonMobil, Shell, Neste, Ecofuel ENI, Mitsubishi

Industries Atofina, Norsk Hydro, CPC, Lee Chang Yung Chemical Industry
Qatar
Q-Chem Chevron Phillips

Equate (Kuwait) Dow Chemical + PCI (Petrochem. Ind. Corp.)

Oman Petchem. Dow Chemical

Ind.
Tasnee Basell
Petrochemicals
Sahara Basell
Petrochemicals

SIPCHEM Chiyoda, Mitsui, Mitsubishi

NPC Sasol Polymers, Chematur, Hansa Chimie, Sabic

Europetrochemicals

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 Select UHMWPE Rope/Fiber Applications
Mooring Ropes: The Offshore Oil & Gas Industry Shell’s Prelude Floating Liquefied
Natural Gas (FLNG) Facility

Source: Shell

Cryogenic Hoses vs. “Hard” Transfer Systems

The First Multigas Ship
Norgas Innovation

Source: Bahía Blanca GasPort, Argentina;

Source: Teekay

Source: I.G. Skaugen

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Upstream Liquefied Natural Gas (LNG) Value Chain
Exploration and production
This step consists of activities related
to the discovery and extraction of
natural gas. Onshore and offshore
platforms collect gas from drilling wells,
and then transport it to liquefaction
facilities.
Liquefaction
A liquefaction facility cools gas
to -162˚C, at atmospheric
pressure. In liquid state the
condensed gas is reduced to
1/600th of its volume, allowing
for economical transportation.

Shipping
The LNG is loaded onto specially built ships
designed to hold super-cooled gas. LNG can
be transported to any country in the world with
a regasification terminal.

Receiving, Storage
and Regasification
In the receiving terminal the
LNG can be stored as a liquid,
where it can be distributed as
a cryogenic gas, or it can be
warmed, converting it back to
Source: BG Group gas for distribution.

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Downstream Liquefied Natural Gas Value Chain

Source: EnerChemTek

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Size Range of Liquefaction Plants

* 3 to 5 Mtpa trains provide the optimum capacity in terms of economies of scale although larger
trains have been constructed (e.g. 8 Mtpa in Qatar)

Source: IE Australia

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LNG – Ship to Ship Transfer

Existing ships for distribution

of LNG in Norway
(Capacity of 7,500 and 1,100 m3 LNG)

Source: Gasnor

Small LNG Receiving

Terminal in an Aluminum
Plant
LNG Carrier 'Pioneer Knutsen'
(Capacity = 1,100m3)

Source: Knutsen OAS Shipping

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