1 Petrochemical Growth World scenario - - PowerPoint PPT Presentation

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Petrochemicals: Opportunities and Challenges

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Petrochemical Growth World scenario

• Petrochemical demand grows much faster than energy (Mainly oil)

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Petrochemical Intensity

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Indian Economy Overview

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Indian Polymers demand grows at 1.5 times of GDP

Petrochemicals Growth Indian scenario

Source: CPMA World average

Import: 2017

• Top 87 Petrochemicals and

Chemicals

• Volume: 14 MMT
• Value : Rs 77,900 crore
• Top 15 Petrochemicals and

Chemicals

• Volume: 5.3 MMT
• Value : Rs 36,092 crore

Source: ICIS

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• 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

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crackers, infrastructure

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import

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feedstock and downstream application hubs.

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Historical Domestic Demand of Major Petrochemicals (KTPA)

End Product 2009- 10 2010- 11 2011- 12 2012- 13 2013- 14 2014- 15 2015- 16 2016- 17 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

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

Number in parenthesis ( ) show surplus

Petrochemical Demand- Historical and Forecasted

Role of Oil PSU’s in Petrochemicals

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

Owner Nos. Feedstock Design Capacity (KTPA Ethylene) GAIL

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C2 860 HPL

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Naphtha 700 PNCP

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Naphtha 857 RIL

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Gas+Naphtha 3580 BCPL

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Gas+Naphtha 220 OPaL

1

Gas + Naphtha 1060 Total

10 7277

Existing Petrochemical Complexes

Installation Feed stock Ethylene capacity, KTA Products RRL, Rajasthan LPG + Naphtha 900 LLDP/HDPE/PP/ BUTADIENE/ BTX HPCL- GAIL JV, Kakinada Ethane + Naphtha 1000 LLDP/ HDPE/ PP/ PVC/ MEG/ BTX RRPCL, Ratnagiri Off gases+ LPG + Naphtha 5 X 1500 LDPE/ LLDP/ HDPE/ MEG/ PP/ PVC/ PX-PTA/ EPR/ Acrylate /Styrene BORL

Multiple feeds (Naphtha/ Fuel gas/ LPG/ HCB)

2000 LLDP/ HDPE/ PP/ Styrene

BPCL-M

1000

MRPL

1000

Total (10 Nos)

13400

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• Cracker capacity will be tripled by 2030

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• 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

• 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 integration

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• At current crude oil price, Ethane can be considered as feed
• Need to focus on alternative feedstock and infrastructure for import
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Plan more Refining Capacity Refining industry at Crossroads

• Reduction in emission intensity of GDP

by 33-35%

• Reduce Specific Energy Consumption

Reduce Carbon footprint Reduce water footprint Reduce dependency on ground water /river Reduction in import dependence by 10% by 2022 Reduction in Crude Oil Import Move away from Petcoke and Fuel Oil Product Quality Environmental Issues Diversification / Readiness incase of Disruption

• Integration with Petchem
• Integration with Fertilizers

Emerging trends & Drivers Refining Sector

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Refinery – Petrochemical Integration 27$

)4 &"

CDU/VDU FCCU CRU Steam Cracker Aromatics Ethylene Propylene PP PE Styrene MEG Propylene Off-gases C4 Raffinate Naphtha LPG H2 PFO C9 Stream Py gas C7/C8 Aromatics Benzene Toluene PX/PTA PET Butadiene ABS PVC PO PF Epoxy Polyurethane

Monetisation of standard / return streams (Py gas, Naphtha) Integrated Management of Utilities and H2 Hedges both segments against cyclical performance Indicative IRR of Typical configuration:

• Standalone Refinery:

11-12%

• Integrated Refinery &

Petrochemicals: 16-17%

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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

Rajasthan Refinery Project

• Govt. of Rajasthan: 26% & HPCL: 74%
• Refining capacity: 9 MMTPA
• Petrochemicals: BTX, LLDPE, HDPE, PP,

Butadiene

• Project cost: Rs 43,129 crore

Petrochemical complex, Kakinada, AP

• Partners: HPCL & GAIL
• Petrochemicals (Feed: Imported

Ethane & domestic Naphtha): BTX, LLDPE, HDPE, PP, PVC, MEG

• Project cost: Rs 32901 crore