“SCG Chemicals...
…Chemicals Basics”
@ SCG Hall 1
March 3, 2014
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Starting from oil and gas industry
Primary Gas
(Non-associated Gas)
Associated Gas
Crude Oil
Gas Well
Oil Well
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Oil for chemicals
3%
Crude Oil
6%
Petroleum gas - e.g. LPG
Naphtha – Chemicals feedstock
Alternative outlet (upgrade to gasoline)
22%
6%
34%
Refinery
20%
9%
Gasoline
Kerosene/Jet Fuel
Gas oil or Diesel distillate
Heavy gas or Fuel oil
Petroleum Coke, Fuel Oil, Asphalt
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Two types of gas
Only wet gas is suitable for chemicals industry.
Dry Gas
Wet Gas
5%
Butane & Others
Propane
Ethane
95%
<5%
Butane & Others
5%
Propane
5-15%
Ethane
Methane
70-90%
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Methane
Gas for chemicals
70-90%
Methane
- Fuel i.e. Power Plant
- Feedstock for Methanol
5-15%
Ethane
- Chemicals Feedstock
Gas
5%
Propane
- Heating LPG
- Chemicals Feedstock
<5%
Gas Separation Plant
(GSP)
Butane
Small
Natural Gas
Liquid (NGL)
Not all natural gas fit for chemicals
feedstock. Many are lack of ethane
composition.
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Conventional Chemicals Feedstock
Ethane
Pros
(+) Relatively cheaper
feedstock
Cons
(-) No product variety,
only for ethylene (C2)
production
(-) Subject to local
availability, due to
uneconomical bulk
transportation
LPG
Naphtha
Pros
(+) Good yield of
ethylene (C2) and
propylene (C3)
(+) Lower price in
summer
Pros
(+) High product variety,
50-60% yield as
by-product
Cons
(-) High price and limited
supply in winter
Cons
(-) Relatively more
expensive
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(non-ethylene, non-propylene)
(+) Easy to transport
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Chemicals Chain
Feedstock
Process
Ethane
Ethane Cracker
Product
Ethylene (C2)
Propylene (C3)
LPG
Naphtha Cracker
Naphtha
Mixed C4
Aromatics
• Benzene (C6)
• Toluene (C7)
• Mixed Xylene (C8)
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Ethylene chain (C2)
…….Raw materials for polyethylene (PE) and PVC
Others
8%
Styrene
Monomer
7%
Polyethylene
60%
PVC
11%
Ethylene
Oxide
14%
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Four mains categories of Polyethylene (PE)
and its characteristic
HDPE
MDPE
Stiffness
LLDPE
LDPE
Toughness
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Beside from resins production, more value
can be added by compounding process
Compounding = Resin + Coloring + Additive
HDPE Pipe and fitting compound
MDPE Roto molding compound
HDPE Wire and cable compound
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Polyvinyl Chloride (PVC)
H2
Ethylene (C2)
Ethylene (C2)
Chlorine
EDC
VCM
Salt
Water
Caustic Soda
PVC
Resin
PVC
Compound
Finished
Product
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PVC
Resin
Chemicals Chain
Feedstock
Process
Ethane
Ethane Cracker
Product
Ethylene (C2)
Propylene (C3)
LPG
Naphtha Cracker
Naphtha
Mixed C4
Aromatics
• Benzene (C6)
• Toluene (C7)
• Mixed Xylene (C8)
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Propylene Chain (C3)
……Raw materials for polypropylene (PP)
Cumene
4%
Others
3%
Acrylonitrile
9%
Oxo Alcohol
7%
Acrylic Acid
4%
Polypropylene
65%
Propylene Oxide
8%
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Polypropylene (PP) and its characteristic
Homopolymer
Block copolymer
Stiffness
Random copolymer
Toughness
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High-value polypropylene resins and
compound
PP Medical
PP Automotive
PP Electrical appliance
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Chemicals Chain
Feedstock
Process
Ethane
Ethane Cracker
Product
Ethylene (C2)
Propylene (C3)
LPG
Naphtha Cracker
Naphtha
Mixed C4
Aromatics
• Benzene (C6)
• Toluene (C7)
• Mixed Xylene (C8)
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Mixed C4
……Raw materials for butadiene (BD) and MMA
Synthetic
Rubber
(BR, SSBR)
Butadiene (BD)
Mixed C4s
Signboard
MMA
Auto Parts
LCD/LED TV
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New movements in chemicals industry
Process
Feedstock
Product
Coal-to-Olefins
(CTO)
Coal
Ethylene (C2)
Propylene(C3)
Methanol-to-Olefins
(MTO)
Methanol
Ethylene (C2)
Propylene(C3)
Propane Dehydrogenation
(PDH)
Propane
Propylene (C3)
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Investments and Challenges in China
(Inner Mongolia)
Coal to Olefins (CTO)
(Coastal Area)
• High investment
• Remote location, far away
from demand
• Water supply availability
• Environmental concerns
Methanol to Olefins (MTO)
Propylene Dehydrogenation (PDH)
• Feedstock security. it
requires significant volume of
imported methanol
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• High feedstock cost during winter
season due to heating demand
Future chemicals development
Ethylene global supply
200 MT in 2020
Propylene global supply
140 MT in 2020
New gas cracker
(PDH) 14%
Naphtha
48%
Conventional
Gas 43%
Naphtha
47%
Coal&Others
14%
Refinery
25%
Coal &
Others
5%
New shale gas crackers 4%:
Potential delay due to permit approval
72% liquid base = marginal price setter
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SCG Chemicals At a Glance
ROC (SCG 67%)
C2 800 KTA
C3 400 KTA
HDPE
MDPE
LLDPE
LDPE
PP
PVC
BD
SM
MOC (SCG 67%)
C2 900 KTA
C3 800 KTA
Chandra Asri Petrochemical
(SCG 30%)
C2 600 KTA
C3 320 KTA
Key Achievements
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Stabilize operations
Refinancing
Butadiene Project
Synthetic Rubber Project
Debottleneck Project
Naphtha Procurement
HDPE
Long Son Petrochemical (SCG 46%)
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Signed long-term feedstock agreement
Signed land lease advance agreement (400 Hectares)
Appointed financial advisor
During bidding for engineering, procurement and
construction contractor and securing necessary
financing.
SCG Chemicals
(Map Ta Phut)
Long Son
Petrochemical
Complex
LLDPE
PP
SM
Chandra Asri
Petrochemical
BD
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SCG Chemicals Group
…over 60 companies & more than 5,000 employees
Subsidiaries
CRACKER
•Rayong Olefins
•Map Ta Phut Olefins
PE/PP
•SCG Plastics
•SCG Performance
•Thai Polyethylene
•SCG ICO Polymers
PVC
•Thai Plastics and
Chemicals
•Nawa Plastics
SERVICE
•Map Ta Phut Tank
Terminal
•REPCO
SCG-Dow JV
SCG-Mitsui JV
SCG-MRC JV
LLDPE
PP Compound
•Thai MMA
SM/PS
•Grand Siam
Composites
•Mitsui Advance
Composite
(Zhongzan)
Film
C4 & BR/SBR
•Siam Polyethylene
•Siam Styrene
Monomer
•Siam Polystyrene
ELASTOMER
• Siam Tohcello
Siam Synthetic Latex
PO
•MTP HPPO
Manufacturing
PTA/PET
•Siam Mitsui PTA
•Thai PET Resin
MMA/CCS
Others JV
•Bangkok Synthetics
MELAMINE
•Thai MFC
Overseas
INDONESIA
• (Complex) Chandra
Asri Petrochemical
• (PVC) PT TPC Indo
Plastic and Chemicals
• (Terminal) PT Siam
Maspion Terminal
VIETNAM
•(PVC) TPC Vina
•(Compound) Viet
Thai Plaschem,
Chemtech
USA
•(Technology) GTC
SERVICE
•Rayong Tank
Terminal
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