Kuwait Petrochemicals A Growth Strategy

Kuwait Petrochemicals
A Growth Strategy
ANWAR Ben SALAMAH

Deputy Chairman & Deputy Managing Director, Planning
Petrochemical Industries Company
p y
© Petrochemical Industries Company 2011

(A Subsidiary of Kuwait Petroleum Corporation)
PIC Among Kuwait Petroleum Corporation Subsidiaries
KOC
KAFCO KNPC
KUFPEC
OSSC
PIC
KPC
ODC is the petrochemical arm of
Kuwait Petroleum Corporation
KGOC KOTC
KPI
KPC’s Strategic D
Direction
irection for PIC is :
Increase petrochemicals contribution in KPC’s turnover
2
PIC Vision
We aspire to be a recognized global petrochemical

player leveraging Kuwait national resources in
value
l added
dd d partnerships
hi to drive
d i growthh andd being
b i
admired by our stakeholders
3
PIC Mission
PIC, as a subsidiary of Kuwait Petroleum

Corporation, shall achieve a marked position with
downstream extension into high value petrochemical
business while ensuringg integration
g with KPC
activities both domestically and internationally.
4
PIC Goal
Create Sustainable
Corporate Value
- Sustainable Economic Value
- Sustainable Social Value
- Sustainable Environmental Value
5
Worldwide Trends in Petrochemicals
250
Historical Forecast
200
Ethylene
Total MMTPA
150
py
Propylene
100
PTA
50
Paraxylene
0
1990 1995 2000 2005 2010 2015 2020 2025
Since the 1990s, key petrochemicals have achieved above GDP growth
rates globally
globally.
6
© Petrochemical Industries Company 2011 Source : Chemsystems
Middle East Trends in Petrochemicals
Source Nexant
50
Historical Forecast
40
Ethylene
MTPA
30
Total MM
20
Propylene
10
PTA
Paraxylene
0
1990 1995 2000 2005 2010 2015 2020 2025
7
Petrochemicals Growth in Kuwait
Realizing their long term potential

potential, Kuwait ventured into
commodity petrochemicals in 1990s
EQUATE Polypropylene
• Products : • 100 Kta Gas phase Plant
• Ethylene 800 Kta • Capacity increase to 150 Kta post
• Polyethylene 600 Kta Olefins-II commissioning.
• Ethylene Glycol 500 Kta • Capital cost : $177 MM
• Capital cost : $ 1.9 bn
1997
Polypropylene,
Polypropylene Polyethylene and MEG produced for 1st time in Kuwait
8
Strategy Plan 2002~20
KPC’s vision for PIC : Grow in Petrochemicals Inside and Outside Kuwait
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file again. If the red x still appears, y ou may hav e to delete the image and then insert it again.
Petrochemical Growth Strategy Plan
St
Stage 11 St
Stage 22
Extend and Create viable

defend core options
businesses
Build
emerging
businesses
Time Frame
2001 – 2005 2005 – 2010 2010 +
Horizon-1 Horizon-2 Horizon-3
9
Strategy Plan – Horizon 1&2
• Promotingg a strategy
gy to ggrow in core ppetrochemicals
through :
– Geographical expansion in global market
An international alliance between

An international Alliance between
PIC and DOW for manufacture and
PIC and DOW for manufacture and
sale of PET Business
sale of MEG
PET Capacity 340 kta
MEG capacity 1000 kta Capital investment $210 MM
Capital investment $688 MM
10
Strategy Plan – Horizon 1&2
• Promotingg a strategy
gy to g
grow in core p
petrochemicals
through :
TKOC TKAC TKSC

• Olefins JV between DOW, • Aromatics JV between PIC, • Styrenics JV between TKAC
PIC, Boubyan and Al-Qurain
Al Qurain KNPC and Al-Qurain
Al Qurain and DOW
• Products : • Products : • Products :
• Ethylene 850 Kta • Paraxylene 780 Kta • Styrene 450 Kta
• MEG 600 Kta • Benzene 370 Kta
• Polyethylene* 400 Kta • Commissioned in Aug-2009
• Commissioned in Dec
Dec-2009
2009
• Commissioned in Aug-2008
• *PE as expansion of existing

EQUATE PE Plant
11
PIC Growth in Petrochemicals
Thus PIC leverages its position in hydrocarbon

sector to enter and
d grow into
i petrochemicals
h i l
Diversified
Petrochem
Base
Building the
Supply Chain
TKOC
TKAC
Growing in TKSC
Petchems MEGlobal
Add value to Equipolymer
Refinery
Stream EQUATE
Growing in PP
Fertilizer
1970 1980 >>> 1997 2004 2009
12
PIC Business Portfolio
PIC has diversified its position as a significant player in
P t
Petrochemicals,
h i l withith local
l l andd International
I t ti l investments
i t t
FERT.
Local
International
(100%) I
Investments
t t
Investments
PP
(100%)
GPIC
(33.33%)
EQUATE
(42.5%)
PIC
TKOC
MEGlobal (42.5%)
(50%)
TKSC
TKAC (PX) (57.5%)
(40%)
Equipolymer
KPPC
(100%)
13
Horizon-3 : The Next Phase
Future Growth Strategy

Stage 1 Stage 2
Create viable options
Build emerging
Extend and businesses
defend core
businesses Growth Parameters
New core extensions
Integration
Derivatives
Value creation thru partnerships
Time Frame
2001–2005 2005–2010 2010+
Horizon 1 Horizon 2 Horizon 3
14
Horizon-3 Plan
The strategy plan growth themes have been defined in term of

specific projects :
Inside Kuwait :
1) Mix Feed Olefin cracker

2) PTA/PET
Outside Kuwait:
• Integrated Refinery and Petrochemical Project in China.
15
FUTURE PROJECTS (Olefins-III)
Olefins-III project in Kuwait

This
s iss the
t e next
e t olefins
o e s cracker
c ac e Plant
a t proposed
p oposed by PIC
C for
o Kuwait
u at
It will be a mixed feed cracker comprising a mix of Ethane, LPG and
Naphtha feedstocks
Proposed
p Petchem Products
– Ethylene 1400 Kta
– LLDPE 450 kta
– HDPE 450 kta
– Glycols 625 kta
– Poly propylene 450 kta
– Ethanolamine 120 kta
– Other probable derivatives* Propylene Oxide, Acrylic acid etc.
Project Cost :9-11 Billions $

Location : AL Zoor
16
Olefins-III proposed Schedule
KPC Approval FEED Final Project

To Proceed Authorization Authorization Completion
2010 2011 2012 2013 2014 2015 2017
Pre-feasibility
Study
Feasibility
Study
FEED
EPC
Startup
We Are Here
17
FUTURE PROJECTS (contd)
CHINA PROJECT
• It is an integrated Refinery & Petrochemical Project
SINOPEC
Shareholding
10%
10% KPC
10%
KPI 50%
20% PIC 30%
International
Oill Company
International
Proposed Petchem Products Petrochemical
Polyethylene 450 kta Company
Polypropylene 750 kta
Glycols 425 kta
Amines 200 kta
EVA 200 kta
Aromatics 700 kta
Project Status
j
• Project Application
pp Report
p submitted,,
• Approved from National Development and Reform Commission to start FEED
18
FUTURE PROJECTS (contd)
( )
PTA / PET PROJECT in Kuwait
Utilizing Paraxylene from TKAC and MEG from

Equate
Products
• PTA 600 kta
• PET 500 kta
Project Status :
• Feasibility Study
19
20

Kuwait Petrochemicals A Growth Strategy

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Kuwait Petrochemicals A Growth Strategy

Uploaded by

Copyright:

Available Formats

Kuwait Petrochemicals

ANWAR Ben SALAMAH

© Petrochemical Industries Company 2011

We aspire to be a recognized global petrochemical

PIC, as a subsidiary of Kuwait Petroleum

- Sustainable Economic Value

- Sustainable Social Value

- Sustainable Environmental Value

Realizing their long term potential

Extend and Create viable

 An international alliance between

TKOC TKAC TKSC

• *PE as expansion of existing

Thus PIC leverages its position in hydrocarbon

1970 1980 >>> 1997 2004 2009

Future Growth Strategy

Create viable options

 The strategy plan growth themes have been defined in term of

1) Mix Feed Olefin cracker

• Integrated Refinery and Petrochemical Project in China.

 Olefins-III project in Kuwait

 Project Cost :9-11 Billions $

KPC Approval FEED Final Project

2010 2011 2012 2013 2014 2015 2017

 PTA / PET PROJECT in Kuwait

 Utilizing Paraxylene from TKAC and MEG from

You might also like

An international alliance between

The strategy plan growth themes have been defined in term of

Olefins-III project in Kuwait

Project Cost :9-11 Billions $

PTA / PET PROJECT in Kuwait

Utilizing Paraxylene from TKAC and MEG from