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33Q/Q/20092009 ANALYST MEETINGANALYST MEETING33Q/Q/2009 2009 ANALYST MEETINGANALYST MEETING
Nov. Nov. 1818, , 20092009
The Emerald Hotel, BangkokThe Emerald Hotel, Bangkok
Operational Results
CondensateCrude
Unit : KBD
PTTAR IntakeTotal intake increased YoY due to the
additional capacities from AR3
66 95 109 63 100192
241 263202
251Running with full capacities in 3Q/09
CDU Utilization = 105%
BTX Utilization = 84%126 146 154 139 15266 63
3Q/08 2Q/09 3Q/09 9M08 9M/09
BTX Utilization = 84%
Aromatics Products
Paraxylene Benzene Cyclohexane Others
Unit : K. Ton
Petroleum Products
Fuel Oil Middle DistillateLight Naphtha Reformate&Gasoline
Unit : KBD
16%8% 10%
17%7%13% 6% 6% 11% 6%
Paraxylene Benzene Cyclohexane Others
306 510474 885 1,388
25% 23% 22%16%
2% 5%13%
6%8%8% 7% 7% 7%5% 1% 4% 1%
Light Naphtha Reformate&GasolineLPG Others
149 185 210 160 186
Reformate & G li
LPG
Others
CHX
Others
45% 58% 57% 46% 57%
26%28% 27%
26%30%
16% 17%
45% 53% 52% 48% 52%
14%25% 23%
14%22%16%
MiddleDistillate
Light Naphtha
& Gasoline
PX
BZ
CHX
2
45% 46%
3Q/08 2Q/09 3Q/09 9M/08 9M/09
12% 12% 12% 13% 12%
3Q/08 2Q/09 3Q/09 9M/08 9M/09
Fuel Oil
Distillate PX
Oil Price Movements
3Q/08 2Q/09 3Q/09 9M/08 9M/09Dubai 113 59 68 107 57Jet Oil 142 67 75 137 66
3Q/09 Recap
Continuing signs of improving
Unit : $/BBL
Jet Oil 142 67 75 137 66Diesel (0.5%s) 139 66 75 136 65Fuel Oil 103 53 65 90 53Jet – Dubai 28.8 7.4 7.3 29.7 8.6Di l D b i
world economic growth and
weak US dollars continuously
support crude oil priceDiesel – Dubai 25.8 7.0 7.0 28.8 7.7FO - Dubai -10.8 -5.7 -2.8 -17.5 -4.6
support crude oil price
On going high middle distillate
inventory narrowed Jet and 180
$/BBL
Diesel spread over Dubai
Fuel oil price benefited from 120
140
160
180
Dubai
Diesel
Jet
OPEC’s decision to maintain
production cuts of heavier crude,
fuel oil rich grades and60
80
100
Fuel Oil
2008 2009
fuel oil rich grades, and
optimizing the use of secondary
units of refiners, which reduced 0
20
40
3
the yield of residual products Dubai Jet Diesel Fuel oil
Aromatics Price MovementsU it $/T
3Q/09 Recap
PX and BZ prices had increased
3Q/08 2Q/09 3Q/09 9M/08 9M/09
Paraxylene(MOPK) 1,348 957 1,013 1,328 899
1 149 615
Unit : $/Ton
since 2Q/09, however,
weakened as new supplies
Benzene(SEA) 1,183 655 804 1,149 615
Condensate 966 464 560 938 474
PX-Condensate 382 493 453 394 425
from China and ME appeared in
end of 3Q/09
Despite an increase in
BZ-Condensate 217 191 244 216 141
1,800 $/Ton
PX Despite an increase in
aromatics capacities in China
and ME, China is still net 1 000
1,200
1,400
1,600
BZCondensate importer of PX
Increased demand from SM
d i Chi d I di400
600
800
1,000
2008 2009producer in China and India
continues to support BZ0
200
400
4
Paraxylene Benzene Condensate
GIM
Mkt GIM
Hedging
GIMUnit : $/BBL
Benefit from Synergy projects and Operation improvement
Hedging
Stock Gain/(Loss) incl NRVUnit : Million USD 3Q/09 9M/09
1. Internal Synergy 32.49 86.09
2. Synergy with SPRC and IRPC 1.75 7.03A GIM
1.22
3.58
0 511.92
y gy
3. Better Crude Optimization 2.67 4.78
4. PX Yield Improvement 6.71 14.49(4 70)
10.65
4.97
Acc. GIM
5.877.81
3.65.85 5.42 4.71 4.51
0.71
(0.06) (0.96)
1.38 0.51 1.22 Total 43.62 112.38(4.70)
Ending Inventory 3Q/09
(9.01)
g y Q
Volume NRV*
Crude 4.65 M.BBL 65 $/BBL
3Q/08 2Q/09 3Q/09 9M/08 9M/09Condensate & other Feedstocks 1.97 M. BBL 68 $/BBL
Petroleum Products 2.38 M. BBL 72 $/BBL
5
Aromatics Products 0.66 M. BBL 87 $/BBL*Gross integrated margin (GIM) is an integrated margin of refinery and aromatics business.
* Net Realizable Value
Cash Cost, EBITDA and Net Income
2.22 2.30 2 05 2 06 2.20
OPEX Interest
Cash CostUnit : $/BBL OPEX amounting to 972 M.THB or 1.18
$/BBL, lower than last quarter due to
1.61 1.34 1.18 1.60 1.29
0.61 0.960.87
0.46 0.91
2.05 2.06
zero shutdown
3Q/08 2Q/09 3Q/09 9M/08 9M/09Net foreign exchange gain from US
dollar loans amounting to 225 M.THB Total Intake
M.BBL 17.69 21.95 24.22 55.07 68.78
EBITDA and Net IncomeUnit : M. THB
Income tax expense amounting to 370 M.THB
KBD 192 241 263 202 251
7 162
15,825 EBITDA Net Income 3Q/09 average interest cost is 4.48%(USD ~ 4.08%,THB ~ 4.65%)
7,162
3,909 6,263
(3 376)
4,214
1,708 2,215
7,664 Tax rate AR1 : 30%AR2 : 15% (Expire @ Dec, 2009)AR3 : 0% (2008 - 2015)
6
(3,761)(3,376)
3Q/08 2Q/09 3Q/09 9M/08 9M/09
AR3 : 0% (2008 2015) 15% (2016 - 2020)30% Onward
Risk Management ActivitiesCrack Spread Hedging Hedging PX – Dubai Spread
Hedged Jet/Dubai spread for 2009 @ 30$/BBL$/Ton
1200
Hedged Diesel/Dubai spread for 2009 @ 24$/BBL
Realized gain 3,214 M.THB for 9M/09 800
1000
1200
ea ed ga 3, o 9 /09
400
600
Dubai Hedging
90
Fuel Used Hedging
Fuel Used in H d d f d t k h lli i
$/Ton
200
J F M A M J J A
50
60
70
80Production ∼3%
Minimize cost via
locking Dubai crude
Hedged feedstock where selling price was
fixed/known
Lock in Dubai price to secure PX margin
0
10
20
30
40locking Dubai crude
at ~50$/bblHedged Volume
1Q/09 : 21 K. Tons
2Q/09 : 143 K. Tons
7
0
1 23 45 67 89 1 … 1… 1… 1… 1… 2…Series13Q/09 : 34 K. Tons
J F M A M J J A S O
Stock Gain/Loss HedgingDubai Price from 2008 - 2009
• When oil price collapsed from 140$/BBL to 40$/BBL in 2008, many refineries faced severemany refineries faced severe stock loss.
• Cost of crude inventory at the
Year end stock gain/loss is hedged with 70$ - 85$ collar
ending of 3Q/09 is at 70$/BBL
• We believe Dubai price could soften from the current level of 77$ to 70$/BBL by the year end. However, in case of a sharp rebound in world economy, oil price could maintain its uptrend
Net profit from the first 9M/09 is secured by the collar hedging
price could maintain its uptrend but price should not climb beyond 85$/BBL
• PTTAR entered a zero cost collar hedging to prevent inventory loss at year-end for 50% of our exposure (~2 5 Million barrel)
8
exposure (~2.5 Million barrel)
Balance Sheet
155,505Unit: M.THB
Balance Sheet Levels of current assets and current
liabilities are derived by
oil/aromatics prices and volume
28,814 50,285
17 735
27,432 39,880
2462 1,906
137,540 Current Liabilities
Other LiabilitiesOther
CurrentAssets
/ p
30% current and other assets are
financed by long term loan
96 719 95 984
12,007 9,236
44,084 37,166
10,927 17,735 2462Long Term Liabilities
Fixed Assets
OtherAssets
Net long term loan required to fund
fixed asset 37,166 M.THB
96,719 95,984
52,635 58,818
3300 SepSep 0909
Equities
3131 DD 0808
Long term available committed lines
for draw down as of 30 Sep. 09 is
542 M.USD3300 Sep. Sep. 090931 31 Dec. Dec. 0808
Improved Financial RatioLoan Currency Interest Rate
Dec 31,08 Sep. 30,09
Current ratio ≥ 1 1.1 1.3
Long Term Liability to Equity ≤ 2 1 1 1 0
USD 27%
THB Floated
Fixed 40%
9
Long Term Liability to Equity ≤ 2 1.1 1.0
Long Term Liabilities required to fund Fixed Assets to Equities 0.8 0.6
73%Floated
60%
Remarks : As of 30 Sep.09
Capex during 2009 – 2013Unit: M.USD
2008 20092010F 2011F 2012F 2013F
2009
Paid Remaining Remaininggto 2013F
1 Reformer and Aromatics II and Unwinding 208 16 - - - - - -
2 Synergy Project (CRS PSA) 122 17 7 72 Synergy Project (CRS, PSA) 122 17 7 - - - - 7
3 Reliability Improvement - - 8 7 - - - 15
4 MRU&Hight TAN Project 6 6 - - - -
5 Efficiency Improvement 7 - 5 - - - 5
6 Environment (VRU, GT Nox, Biodiesel) 11 6 39 17 - - - 56
7 DHDS (Euro IV) 3 22 22 107 68 - - 197
8 Investment (Phenol) 22 6 10 - - - - 10
9 Annual Maintenance Capex and Others 13 1 9 13 14 7 449 Annual Maintenance Capex and Others - 13 1 9 13 14 7 44
Total 379 86 92 140 81 14 7 334
10
Future CAPEX is expected to be financed primarily by cash flow from operation.
Global Economic sentiment and Industrial Production improving
E M i i• Euro zone: Most economic sentiment continues to climb for the 10th month
• Positive 3Q/09 GDP in the Major economics countries:
Business Confidence Indicators
countries:• US grew at 3.5% QoQ• Euro zone grew at 0.4% QoQ• Japan grew at 1.2% QoQ
• September Industrial Production:• U.S. output rose 0.7% MoM• Euro zone output grew by 0.3% MoM
J t t b 1 4% M M• Japan output rose by 1.4% MoM• Other Asian countries production also
improved significantly.
R l GDP h i h E ZSource: Pira
Real GDP growth in the Euro ZoneY/Y and M/M Changes of Asian Industrial Production
11Source: Pira
China Economic : Recovery on track• Chinese economy grew 8.9% YoY in
3Q/09. Growth still primarily driven by policy CAPEX, while export rebound is imminent
Overall Economic Growth
imminent
• Economists expect China’s GDP growth to hit 10% in 4Q/09
Chi ’ l j d t 75 8% Y Y• China’s car sales jumped to 75.8% YoY in Oct. 09
• China’s Ministry of Industry sees its 4Q/09 industrial output up 16% YoY4Q/09 industrial output up 16% YoY
Automobile SaleTrade Performance
12Source : Pira
World Oil Demand and Price Forecast• Major energy organization raised 2009 and
2010 oil demand outlook in their November
reportsreports
2010 Demand Growth Forecasts
• IEA raise to 1.35 mbd from 1.21 mbd
• EIA raise to 1.26 mbd from 1.10 mbd
• OPEC raise to 0.75 mbd from 0.70 mbd
AnalystsWTI (USD/bbl)
4Q09 1Q10 2010 2011Barclays 76.0 - 85.0 87.0BNP Paribas 66.0 73.0 78.0 90.0
• In the latest Reuters poll (Oct.09), most
houses increased their forecasts for 2010
Calyon 65.0 63.0 66.3 65.0Deutsche Bank 75.0 75.0 65.0 80.0EIA 69.0 71.0 72.4 -Goldman Sachs 85.0 87.5 94.0 -MF Global 72 0 75 0 64 0 -
on a coming back of stronger economic and
increasing oil demand outlook
MF Global 72.0 75.0 64.0 -Morgan Stanley - - 85.0 95.0RBS 69.0 69.0 73.5 76.0Soc Gen 72.5 75.0 82.5 101.0UBS 65.0 - 70.0 71.0
• Goldman Sachs’s forecast was supported by
the recent rebound in diesel demand as well
13
U S 65 0 0 0Mean 69.7 70.4 74.0 81.7
Previous Mean (Sep) 68.3 69.3 73.5 81.7
as continuation in USD weakness trend
Source: JBC, Reuters Oct. 09
USD as the common denominator of the marketUSD/EUR vs WTI Since 2006• Weak USD has been a significant
positive tailwind for crude oil prices as well as the stocks, bonds and overall commodity markets USD/EUR
USD/EUR vs. WTI Since 2006
y
• Analysts are expecting further USD weakness if the FED still keeps interest rate at zero
• The Fed has created a distorted environment where investors are left with 2 choices: hold on to the
WTI
devalued dollars ? Or buy some thing else
• The latest report from CFTC shows an i b ild i t l iti
CFTC Non-Commercial Net long position (Futures + Options)
Source: Reuters
excessive build in net long position from the Non-commercial participants. This indicates an incremental investment in energy market from the i tinvestors
14Source: CFTC weekly report
New refining capacities are not expected to have significant effect on GRM
Country Company Timing on line
Capacity (KBD)
China Sinopec 1Q/2009 20CNOOC 2Q/2009 240Sinopec/Exxon
• New capacity in China will replace less efficient ones and be consumed domestically
Sinopec/Exxon Mobil/Aramco 2Q/2009 160
Sinopec 2Q/2009 36Petrochina 3Q/2009 80Sinopec 4Q/2009 240
Vi t P t i t 1Q/2009 130
2009 :1,576 KBD
• Reliance refinery has planned to export products to US and Europe. Other new India capacities will be consumed domestically due to GDP
Vietnam Petrovietnam 1Q/2009 130Japan Nihonkai Oil 1Q/2009 -56
Japan Energy 2Q/2009 32Malaysia Malaysia Ref Co 2Q/2009 30India Reliance 2Q/2009 580
(~1,300 KBD completed up to now)
growth
• Middle East capacities are needed to replace product import and
h i hi h iHPCL 3Q-4Q/2009 64New Zealand NZ Refining Co. 4Q/2009 20
China ZhenHua 1Q/2010 80PetroChina 1Q/2010 216 Date Type Company Capacity Original New
support growth within the region
Plant Delay and Cancellation
PetroChina 1Q/2010 216Sinopec 1Q/2010 52PetroChina 2Q/2010 30Sinopec 2Q-4Q/2010 210
Pakistan Bosicor 1Q/2010 10
Date Type Company Capacity Original New
Ann. (KBD) Date Date
Apr-09 Delay Aramco,Saudi 400 2012 N/A
Apr-09 Delay QP,Qatar 250 2010 2011
Mar-09 CancellationKNPC Kuwait 615 2013 N/A
2010 2010 ::11,,007 007 KBDKBD
India BPCL 1Q/2010 40IOC 1Q/2010 60CPCL 2Q/2010 60BORL 2Q/2010 120Essar Oil 3Q/2010 110
Mar 09 CancellationKNPC,Kuwait 615 2013 N/A
Mar-09 Delay Motiva,US 325 3Q/10 1Q/12
Mar-09 Delay Shell,Qatar 140 2010 2011
Jan-09 Closure Nippon Oil,Japan 60 Mar-09 Jan-09
15
Essar Oil 3Q/2010 110Japan Taiyo Oil 4Q/2010 19
Source : Nomura International (HK)
Jan-09 Prop. Closure
Nippon Oil,Japan 150 N/A N/A
Source : FACTS
Oil Market Outlook Calendar Oct 2009 – Dec 20102009 2010
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Asian Game 12-27 NovGuang Zhou, China
Chinese New Year Thanksgiving Day 26 Nov
i /
Shanghai, China EXPO 1 May – 31 Oct14 Feb
OPEC meeting 22 Dec 09 at Angola
2010 FIFA World Cup 11 Jun-11 Jul, South Africa
Asia: Pre-summer T/A
Pre-winter T/A
/
MBD Oct Nov
Asia 2.6 1.6
US 0.3 0.1
Gasoline Stockpile
US/EU: Pre-summer T/A Other 0.8 0.9
Total 3.7 2.6
Distillate Stockpile
Distillate Stockpile
US Driving Season
Stockpile
16
Hurricane Season
Stockpile
Winter SeasonWinter Season
US Refinery Situation
• Utilization rate dropped to 79% in the latest EIA report. About 1.5 MBPD less than 5 years
US Refinery Utilization(EIA)(%)
average level
• ConocoPhillips’s 3 MBPD of refining capacity operate just at upper 70% range in 4Q/09 after p j pp g Q/running at 90% in 3Q/09. They will consider disposing the less sophisticated refining assets if the opportunity arose
• Valero Energy Corp indefinitely shut its 235 KBD Aruba refinery
• Sunoco Inc announced plans to indefinitely
US Middle Distillate Stock (M.bbl)
Sunoco Inc. announced plans to indefinitely shut its 145 KBD Eagle Point refinery in New Jersey
• As a result of lower US utilization rate and• As a result of lower US utilization rate and rebounding of winter demand, middle distillate stock has started to decline
17
Source: EIA weekly report
Other Regions Refinery Situation
Europe
1. Current utilization rate is at 80% and the crude throughput is about 1.0 MBPD below 5 years average level. 1 0 MBPD
Refinery input against 5 years average
y g
2. Analysts expect some extended maintenance programs to take place soon because it is just a real need to reduce these huge distillate surplus.
-1.0 MBPD
3. TOTAL has shut its 140 KBD Dunkirk refinery in France for an unspecified period due to economic reasons
4. Swiss refiner Petroplus' Teesside plant in the UK has been idl i M h 09idle since March 09.
Asia
1. China cut crude purchasing to 28 cargoes in October versus -0.2 MBPD
32 in September due to record high crude oil stocks.
2. Japanese current utilization rate dropped to 70% and crude throughput is about 400 KBD below 5 years average level. Japanese Refinery Utilization Rate
3. Japan’s top Refiner, Nippon oil corp. planned to merge with Nippon Mining to form JX Group and has planned to cut their refining capacity further by another 400 KBD.
4 Ko ea tili ation ate in Septembe as at 85% and the
70%
18
4. Korea utilization rate in September was at 85% and the crude throughput is about 200 KBD below 5 years average level.
Source: IEA Monthly Report – Nov 09
Global Oil Demand RecoveryUS Product Demand China Product Demand
OECD Europe Product Demand Germany Heating Oil Demand
19Source: IEA Monthly Report – Nov 09, Reuters
Global Middle Distillate Stocks
Singapore Middle Distillate Stock (M.bbl) ARA Gas oil Stock (Kt.)
US Middle Distillate Stock (M.bbl) Japan Kerosene Stock (Kt.)
20
W k
Limited Feedstock for PX and BZ ProductionGlobal Refining Throughput Weak
refining margin
Weak Naphtha cracking margin pressured by new Ethane Crackers from ME
Naphtha Cracker
Cut Run (↓)
Light NaphthaLight Naphtha ((↓↓))
Heavy Heavy NaphthaNaphtha ((↓↓))
Short SupplyShort Supply
Ethylene /Ethylene /PropylenePropyleneCDU
Cut Run ((↓↓))Crude Crude
cutcut
Typical Aromatics Plant
Pygas Pygas ((↓↓))
NaphthaNaphtha ((↓↓))
CCR Cut Run (↓)
Source: IEA Monthly Report – Nov 09
ReformateReformate ((↓↓))
FPU (↓)
Heavy ReformateHeavy Reformate Light ReformateLight Reformate
Refinery Utilization Rate
Sulfolane (↓)Xylene Frac. ((↓↓))
PX SupplyPX Supply ((↓↓)) BZ SupplyBZ Supply ((↓↓))
BZ MarginBZ Margin ((↑↑))PX MarginPX Margin ((↑↑))
Source: OPEC Monthly Report – Nov 09
21
This scenario is expected to continue into 4Q/09
China will continue to be largest PX Importer
18
20 60
Unit : KTA 2008 2009 2010 2011 2012 2013New PX Capacity
China 104 1,791 1,820 1,100 1,050 760
Other NE Asia 636 103 - - 600 300
Million Metric Tons Percent
China PX PullForecast
12
14
16
18
50
55 India & Pakistan - - - 417 833 -
ME 625 479 1,161 - 100 1,060
SE Asia 115 651 - 40 150 800 Imp.PX
Imp.PTA
China PX Pull Through
4
6
8
10
35
40
45 40
Others 42 163 305 347 258 -
Total 1,522 3,187 3,286 1,904 2,991 2,920
Ne PTA CapacitDom.PX
PX
0
2
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201330
35
Domestic PX Production PX Imports
New PTA CapacityChina 1,260 2,017 1,800 213 2,050 3,300
Other NE Asia 517 200 - - - -
India & Pakistan 20 625 325 - 1,000 -
ME 100 100 400 400
PX
Domestic PX Production PX ImportsPTA/DMT Imports PX Equiv. Polyester Imports PX Equiv.Other Imports PX Equiv. % of Global Production
ME 100 100 - - 400 400
Others 129 354 225 2,463 657 -
Total 2,026 3,296 2,350 2,676 4,107 3,700 Source : CMAI’s 2009 world petrochemical conference, March 2009
(Right Axis)
• New PTA capacity will outpace new PX capacity
• China still needs to import PX of about 2 – 4 million tons per year for the next 5 years
22
• China still needs to import PX of about 2 4 million tons per year for the next 5 years
• Including PX derivatives, China will consume roughly 55% of global PX production
BZ potential is improving Unit : KMTA 2008 2009 2010 2011 2012 2013New BZ CapacityAsia 1,495 2,445 1,691 1,279 708 509ME 507 592 576 50 95 -
New BZ Capacity and BZ Demand Growth 06’-13’
ME 507 592 576 50 95America 14 14 - - 37 -Other 89 - 15 55 204 -World 2,105 3,050 2,282 1,384 1,044 509BZ DemandBZ DemandSM 757 1,257 1,007 49 464 -CUMENE 326 541 579 226 - -CYCLOHEXANE 15 189 24 115 141 -Others 403 274 13 - 5 -
Source : CMAI, PTTAR update as of July 2009
Others 403 274 13 - 5 -Total 1,500 2,262 1,623 389 610 -
• BZ demand will be enhanced by global economic recovery
• Low refinery and naphtha cracker operating rate will limit feedstock for BZ production
• Improvement in automobile industry will further support BZ demand
23
p y pp
Expected PX Trade Flow & New Capacities
Million Tons• China demand will absorb ME new
capacity. Hence, PX world market will
Paraxylene Regional Net Trade 2009 - 2011
be tight for at least the next 2 years
• Korea and Japan have high potential
to cut run due to their expensive cashto cut run due to their expensive cash
cost.
• Margins should recover in 2Q/10 due
Major PX projects start up in 2009 and 2010
to shortage of feedstock and seasonal
demand
• Restrictions on naphtha supply ifRestrictions on naphtha supply if
refinery run rates drop further
• New ME producers are under
Year Producers Capacity (KTA)
Start Up Remark
PX BZ 1Q 2Q 3Q 4QFujia Dahua, China 700 270 √ OR = 75%
operational problems
• Lack of skilled labor and high logistic
cost reduced ME exporting
2009
CNOOC, China 840 250 √ OR = 70%
Exxon Fujian, China 700 331 √ OR = 65%
Shanghai NO.2, China 600 280 √ Start up in Oct
KARO, Kuwait 820 325 √ Commissioning
24
cost reduced ME exporting
competitiveness
, g
Oman Oil, Oman 820 210 √ Commissioning
2010 Petrochina Urumqi2, China 1,000 300 √
Market Summary
1. Dubai crude price is expected to range around 70 – 75 $/bbl in 4Q/09 and 75 85 $/bbl in 2010
Short Term
75 – 85 $/bbl in 2010.
2. In 4Q/09, middle distillate prices will improve from seasonality and expected economic recovery.
3. Expected economic growth in China will support demand for textile and automobile industries.
4. Refinery run cuts will limit feedstock supplies for PX and BZ production. y pp p
Long Term
5. Additional refining capacities will be balanced by economic growth in China, India and Middle East as well as refinery run cuts.
6. China will continue to import 2 – 4 million tons of PX per year in spite of its p p y pPX capacity addition.
7. Economic Recovery will further improve refinery and aromatics margins.
25
Map Ta Phut Environmental Issue
Environmentalists and activists filed a claim at the Administrative Court against
the National Environmental Board and 7 other government agencies involving in
granting EIA approvals of projects since August 2007, claiming that they have
not followed the Article 67 (2) of the Constitution of the Kingdom of Thailand,
B E 2550 (2007)
Article 67 (2) of the Constitution
Any project or activity which may seriously affect the community in the quality ofi l d h l h h ll b i d l h f ll i
B.E. 2550 (2007)
environment, natural resource, and health shall not be permitted, unless the followingscarried out prior implementation of the project
1. EIA
2 Public Hearing2. Public Hearing
3. HIA
4. Seeking opinion of an independent organization involving in environment, natural resource, and healthesou ce, a d ea
Article 303 (1) of the Constitution
The Council of Ministers carrying out the administration of the State affairs after the firstgeneral election under this Constitution shall complete the preparation and the amendment
26
general election under this Constitution shall complete the preparation and the amendmentof law on establishment of Independent Organization within a year as from the date ofstating the policies to the National Assembly.
Pollution Reduction Plan 2007 - 2011
Unit : Parts-per-billion (ppb) 2007 2008 2009 Reduction Thai Standards
Yearly average of Sulfur Oxides (SOx) and Nitrogen Oxides (NOx)
SOx 5.75 4.9 4.2 26% 40
NOx 12.43 10.2 11.8%NOx 12.43 10.2 11.8%
Source : Pollution Control Department, Ministry of Natural Resources and Environment
Unit: Microgram per cubic meter 2007 2008 Thai
StandardsJapan
StandardsOther
Standards
Yearly average of 3 VOC (Volatile Organic Compound)
Benzene 2.7 2.5 1.7 3.0 5.0 (England)
1,3- Butadiene 0.41 0.31 0.33 2.5 2.25 (England)
1,2-Dichloroethane 4.1 1.6 0.4 1.6 4.8 (Netherlands)
Source : Pollution Control Department, Ministry of Natural Resources and Environment
27
PTTAR Projects which maybe affected by Court Ruling
Project Status Effect to Revenue
Remarks
1 Condensate Residue Splitter (CRS)
• Completed since Mar 09
• Granted Permission
Less - Less effect to company due toAvailable of Condensate Residual export marketLow operating rate of CRS as higherPermission Low operating rate of CRS as higher economic from Sweet Condensate
DHDS • Ordered Long Lead Item
None - Implementation of EURO IV by law
• Target to complete by 2011
2 EfficiencyImprovement
• Postpone due to economics
None -Improvement Project (EIP)
economics
3 VaporRecovery Unit
• Underconstruction
Less -Implementation of VRU by lawRecovery Unit (VRU)
construction
28
PTTAR is well positioned to capitalize on economic recovery
Capacity expansion significantly increased i bilit t ti 2009earning capability starting 2009
Fully Integrated Refinery and Aromatics operation provided operational flexibility and synergy benefits starting 2009
Strong domestic market for both Petroleum and Aromatics products
Highly competitive cost structure
29
