1 Petrochemical Growth World scenario - PowerPoint PPT Presentation

Petrochemicals: Opportunities and Challenges ������� �������� ���������������������������� ����������������!��"�#�$�����!�%�� � � �� ������������� 1

Petrochemical Growth World scenario ���������������������������������������� ������������������������������������������ Petrochemical demand grows much faster than energy (Mainly oil) 2

Petrochemical Intensity ��������������� ����� �� �����!"����������������������� �������#����$% &���� �����!"���� ��'(� )�*�+�����#����$��,�����-.� ��������/���0��1�� 3

Indian Economy Overview

Petrochemicals Growth Indian scenario Import: 2017 • Top 87 Petrochemicals and Chemicals • Volume: 14 MMT • Value : Rs 77,900 crore World average • Top 15 Petrochemicals and Chemicals • Volume: 5.3 MMT • Value : Rs 36,092 crore Indian Polymers demand grows at 1.5 times of GDP Source: ICIS Source: CPMA 5

&�� ����2�3����2�4���&������� • Strong linkage with GDP. • Demand to be 48 MMT compared to 14.6 MMT at present to match world average of 32 kg/capita • Increase in 1 kg/capita consumption requires a cracker of 1.5 MMTPA capacity every year. Thus the Gap is huge and challenge enormous • Requires comprehensive plan for location of crackers, infrastructure of import of feedstock and downstream application hubs. 6

Historical Domestic Demand of Major Petrochemicals (KTPA) 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 10 11 12 13 14 15 16 17 End Product Polyvinyl Chloride (PVC) 1738 1939 2144 2389 2574 2622 2936 3158 Polypropylene (PP) 2382 2579 2830 3176 3276 3500 4250 4460 HDPE 1303 1268 1302 1657 1657 1947 2123 2372 LLDPE 1059 1467 1474 1529 1523 1450 1779 1734 LDPE 348 363 379 434 428 489 551 566 Polyether Polyols 83 146 160 179 180 201 237 226 Polycarbonate (PC) 53 102 114 120 121 122 134 135 Styrene-Butadiene Rubber 157 195 214 207 244 263 267 290 Ethylene-vinyl Acetate (EVA) 78 100 95 118 125 145 166 143 Butyl Rubber 66 70 82 78 79 83 91 100 Acetic Acid 523 614 705 801 815 866 942 993 Acrylonitrile Butadiene Styrene (ABS) 114 131 134 147 165 177 207 220 Other (Basic Major Petrochemicals) 4361 4401 4171 4137 3899 4394 4139 4073 Total (Basic Major Petrochemicals) 12265 13375 13804 14972 15086 16258 17822 18470 Source: Department of Chemicals and Petrochemicals (MoCF)

Demand Forecast– Major Products Capacity Yr 2017 Yr 2025 Yr 2030 Yr 2040 Product Installed+ under Supply Demand Gap Demand Demand Demand Construction Polyvinyl 1 1444 3085 1641 1482 5885 7610 11425 Chloride (PVC) Polypropylene 8385 2 4707 4486 (221) 9440 13335 22735 (PP) LLDPE+HDPE 3 4131 5045 914 7683 10430 15068 29493 +LDPE 4 MEG 1608 1985 377 2400 3073 3740 5030 SBR/ 5 143 399 256 470 803 1166 2172 Butyl Rubber 633 6 Acetic Acid 420 966 546 1320 1534 2022 7 Butyl Acrylate 0 164 164 340 254 325 529 Number in parenthesis ( ) show surplus

Petrochemical Demand- Historical and Forecasted

Role of Oil PSU’s in Petrochemicals Expected to save USD 7 billion over Major Oil and entire life cycle Gas PSU’s by reducing have imports announced significant Successful investments in integration to Petrochemicals diversify into Petrochemicals

Nos. Owner Feedstock Design Capacity (KTPA Ethylene) GAIL 1 C2 860 1 HPL Naphtha 700 PNCP 1 Naphtha 857 RIL 5 Gas+Naphtha 3580 BCPL 1 Gas+Naphtha 220 OPaL 1 Gas + Naphtha 1060 Total 10 7277

Existing Petrochemical Complexes

56�����$�!���1�����6����'(�( Installation Feed stock Ethylene Products capacity, KTA RRL, Rajasthan LPG + Naphtha 900 LLDP/HDPE/PP/ BUTADIENE/ BTX HPCL- GAIL JV, Ethane + Naphtha 1000 LLDP/ HDPE/ PP/ PVC/ MEG/ BTX Kakinada RRPCL, Ratnagiri Off gases+ LPG + 5 X 1500 LDPE/ LLDP/ HDPE/ MEG/ PP/ Naphtha PVC/ PX-PTA/ EPR/ Acrylate /Styrene 2000 LLDP/ HDPE/ PP/ Styrene BORL Multiple feeds (Naphtha/ Fuel gas/ LPG/ HCB) BPCL-M 1000 MRPL 1000 13400 Total (10 Nos) Cracker capacity will be tripled by 2030 ��

!"�����$����4�&�����"���������2����� • Availability of Feed stocks • Availability of Technologies • Capital • Economy of scale • Trade Flows from feed stock advantaged countries Investment for 1500 KTPA ethylene cracker • 100% Gas feed: Rs 40,000 crore • Dual feed : Rs 45,000 crore

0��������$����2����1��7����8�������96����� • Alternative feed stock: Ethane / Propane/ Condensates/ LPG / Methanol may be explored for olefins • Propylene by Propane Dehydrogenation (PDH)route. • Methanol can be produced from Coal/ Petcoke and deasphalted residue. Gas to Olefin Technology: emerging Technology • • Joint venture with feed stock suppliers • Crackers to be designed for multiple feed stock • Integration with petrochemicals in any new or expansion of existing Refinery to ensure feed stock advantage and Infrastructure integratio n • At current crude oil price, Ethane can be considered as feed • Need to focus on alternative feedstock and infrastructure for import �� of feedstock

Emerging trends & Drivers Refining Sector Plan more Refining Capacity Refining industry at Crossroads • Reduction in emission intensity of GDP Reduce Carbon footprint by 33-35% • Reduce Specific Energy Consumption Reduce water footprint Reduce dependency on ground water /river Reduction in import dependence by 10% Reduction in Crude Oil Import by 2022 Move away from Petcoke and Fuel Oil Environmental Issues Product Quality Diversification / Readiness incase of • Integration with Petchem Disruption • Integration with Fertilizers 16

Refinery – Petrochemical Integration �27����$�� )�4����� &�����"������ � Monetisation of standard / Propylene Ethylene Steam return streams (Py gas, Cracker Propylene Off-gases Naphtha) PP � Integrated Management of C4 Raffinate PE FCCU Utilities and H 2 Naphtha Butadiene LPG MEG H 2 Styrene � Hedges both segments PFO CDU/VDU PVC against cyclical performance PO C9 Stream ABS � Indicative IRR of Typical Py gas configuration: Benzene Toluene • Standalone Refinery: C7/C8 Aromatics PX/PTA 11-12% PET Aromatics PF CRU • Integrated Refinery & Epoxy Petrochemicals: 16-17% Polyurethane 17

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Upcoming Greenfield Projects West Coast Refinery Project: Rs 2.3 lakh crore (46 billion USD) • IOCL: 50%; BPCL: 25% & HPCL: 25%; Refining capacity: 60 MMTPA • Target Products: • Commodity Petrochemicals: LLDPE, PVC, PX/PTA, HDPE, PP • Niche Petrochemicals:, EPR, Acrylate, SAP, LDPE • Chemicals: Sulphuric Acid, Caustic Soda • Fuels : MS, HSD, ATF Petrochemical complex, Kakinada, AP Rajasthan Refinery Project • Govt. of Rajasthan: 26% & HPCL: 74% • Partners: HPCL & GAIL • Refining capacity : 9 MMTPA • Petrochemicals (Feed: Imported • Petrochemicals: BTX, LLDPE, HDPE, PP, Ethane & domestic Naphtha): BTX, Butadiene LLDPE, HDPE, PP, PVC, MEG • Project cost: Rs 43,129 crore • Project cost : Rs 32901 crore 19