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PETROCHEMICALS:NEW LANDSCAPE, NEW PLAYERS
Michel H. BUFFENOIRCEO Ethylene Business Unit
INVESTOR DAY, PARIS, FRANCE - October 22, 2004
127Investor Day – 22 October 2004
PETROCHEMICALS: BIG BUSINESS!
128Investor Day – 22 October 2004
PETROCHEMICALS: VERY BIG BUSINESS !!
129Investor Day – 22 October 2004
PETROCHEMICALS: YET VERY SMALL - MOLECULE OF PLASTIC BAG
130Investor Day – 22 October 2004
PETROCHEMICALS: BIG BUSINESS FOR TECHNIP
BACKLOG end 2003
Petrochems14%
REVENUES 2003
Petrochems20%
131Investor Day – 22 October 2004
PETROCHEMICALS AT A GLANCE
Business of US$ 12to 14 billion
yearly
Business of US$ 12to 14 billion
yearly
WorldProductionWorldProduction
1 billion derivatives1 billion derivatives
Feedstocks: “hydrocarbons” (C & H) from natural gas, oil, coal… (plus minerals: chlorine, fluor, metals,… and oxygen/nitrogen from air !)Feedstocks: “hydrocarbons” (C & H) from natural gas, oil, coal… (plus minerals: chlorine, fluor, metals,… and oxygen/nitrogen from air !)
~600 Million t/year2003
132Investor Day – 22 October 2004
Xylenes
Isoprene
Polyvinyl Chloride
Polyethylenes
Polypropylenes
Butadiene Rubber
Styrene ButadieneRubber
Thermoplastic Rubber
Isoprene Rubber
Polystyrenes
Epoxy Resins
Polyethylene TerephthalateTerephthalic Acid (PTA)Para-Xylene
Polyurethanes
Ethylene
Propylene
Vinyl Chloride (VCM)
Ethylene Oxide (EO)
Allyl Chloride
Propylene Oxide (PO)
Butadiene
C5 Olefins
Oil / GasFeedstocks
Olefins
AromaticsBenzene
Toluene
Cumene
Acetone
Phenol
Diphenyl methane Di-Isocyanate (MDI)
Toluene Di-Isocyanate (TDI)
Diphenylol Propane
Monoethylene Glycol (MEG)
Epichlorohydrin (ECH)
Polyether Polyols
Styrene (SM)
MAKING POLYMERS FROM OIL & GAS
133Investor Day – 22 October 2004
PETROCHEMICALS: NEW ENVIRONMENT
NEW LANDSCAPE
Most of new capacities will be built:
! Close to the cheapest feedstocksavailable: Middle East gas, for basic petrochemicals
! Close to the fastest growing demand: Far East/China, for the downstream products
Feedstock-rich countries do NOT depend on the chemical cycle to justify investments: most of them are decided by government-ownedentities, driven by oil & gas revenues, ensured of low cost, abundant, captive feedstocks
NEW PLAYERS
Chinese chemical industry now larger than Germany’s
Middle East producers all have efficient, modern production facilitiesto meet an exploding Far Eastdemand
New world-class players who will invest alone or associated with traditional US/W.Europe/Japangroups:
! NPC (Iran)! Sabic (KSA)! Sinopec (China)! Sasol (S.A.)! NPC (Thailand)! Q-Chem (Qatar)
134Investor Day – 22 October 2004
3.0BASF (Germany)
3.5Chevron-Phillips (USA)
3.0Sinopec (China)
3.0Nova (Canada), AtoFina (France)
3.0Sabic (S. Arabia)
6.7Shell (USA/Holland)
4.6BP/Amoco (UK/USA)
5.0Equistar/Lyondell (USA)
11.4Exxon-Mobil (USA)
13.1Dow (USA)
2002Million t/y
3.2
3.6
5+
3.1
4.8
5+
5.2
7.0
11.7
11.8
2006
THE WORLD’S TOP PETROCHEMICALS PRODUCERS:
EXAMPLE OF NEW PLAYERS IN ETHYLENE BUSINESS
Source: UBS Warburg
0.7NPC (Iran) 5+
NPC (Iran) 0.7 5+NPC (Iran) 0.7 5+NPC (Iran) 0.7 5+
135Investor Day – 22 October 2004
BASIC PETROCHEMICALS: ETHYLENE CAPACITY GROWTH
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 100
5
10
15
20
25
30
35
40
45
0
20
40
60
80
90
110
130
150
Millions of tons - Regions Millions of tons - World
(Source: OGJ/CMAI)
N. America
W. Europe
N.E. Asia
Middle East
136Investor Day – 22 October 2004
BASIC PETROCHEMICALS: ETHYLENE CAPACITY GROWTH
Middle East
137Investor Day – 22 October 2004
PETROCHEMICALS
PETROCHEMICALS: TECHNIP INPUT
Technologies: proprietary (ethylene) or under license: PE, PP, EDC/VCM/PVC, fertilizers, PTA …or from client himself (PS…)
Investments / Cost methodology
Feedback from previous projects
Safe, reliable & timely execution
Global Network
138Investor Day – 22 October 2004
OUR TEAM: A NETWORK OF EPC OFFICES
ParisParisRomeRome
DüsseldorfDüsseldorf
HoustonHouston
The HagueThe Hague
ShanghaiShanghai
Kuala LumpurKuala Lumpur
Los AngelesLos Angeles
Abu DhabiAbu Dhabi
139Investor Day – 22 October 2004
TECHNIP POSITION: COMPLETE ETHYLENE PLANT AWARDS
45%18%% Technip
3.37.0Total Awarded
1.5
2002/2003
1.3Technip
2000/2001Capacity in millions of tons
140Investor Day – 22 October 2004
2005 PETROCHEMICALS: MAJOR PROSPECTS FOR TECHNIP
1) Ethylene
Kuwait (0.8)* $ ~ 500 mm LSTKIran 8th Arvand (1.0)*Iran Ilam* (0.5)*Iran 11th *
Iran 12th ( 1.95, largest in the world)* $ ~ 1,000 mm LSTKQatar Ras Laffan (1.0)*Qatar Petroleum* $ ~ 1,400 mm LSTKS. Arabia Yanbu (1.2)* $ ~ 600 mm LSTKS.Arabia Shark (1.2)* $ ~ 600 mm LSTKAbu Dhabi Borouge (1.5) $ ~ 800 mm LSTK
SPC China Panjin China*
DSM/Sabic, Holland*
USA, confidential*
Numerous furnaces worldwide* $ ~ 200 mm
* : inquiries received &/or bids already submitted, ( ): capacities in mmt/y ethylene
141Investor Day – 22 October 2004
2005 PETROCHEMICALS: MAJOR PROSPECTS FOR TECHNIP
2) Polymers (PE/PP)
PE: ~20 prospects: Middle East, Far East, EuropePP: ~10 prospects: Middle East, Far East
3) Other Petrochemicals:
EDC: Middle East (2)VCM/PVC: Far East, CIS (5)Ammonia/Urea: projects in Middle East, Far EastPTA: few projects
And other projects: methanol, acetic acid, …in Middle East
142Investor Day – 22 October 2004
TECHNIP REFERENCES IN POLYMERS
Polyolefins 84 units! Polyethylene
(LDPE, LL/HDPE swing, HDPE)
! Polypropylene
Polyvinychloride 18 units
Polystyrene 13 units
Elastomer 3 units
Polyamide 3 units
Polyester 4 units
143Investor Day – 22 October 2004
TECHNIP REFERENCES IN POLYOLEFINS
84 Polyolefins Plants Engineered:
65 in Polyethylene: ! High Pressure LDPE! Slurry HDPE! Gas Phase Swing HDPE / LLDPE
19 in Polypropylene - Slurry, Bulk Liquid Pool, Gas Phase
Over a period of 36 years, average of 2 plants per year
First rank in the world for Polyethylene engineered capacity
144Investor Day – 22 October 2004
PTA: WORLD CAPACITY BY REGION IN 2005
Total Capacity of 35 Million Metric Tons (PTA and Medium Purity)
China19.3%
South Korea15.7%
Americas15.0%
Taiwan13.9%
Europe & Middle East
11.9%
Indonesia5.8%
Thailand5.4%
Other Asia3.1%
Japan3.9%
India6.0%
145Investor Day – 22 October 2004
THANK YOU !
PETROCHEMICALS: ALL TOGETHER, AN ATTRACTIVE BUSINESS !
146Investor Day – 22 October 2004
For more information, please contact:
INVESTOR RELATIONS
G. Christopher WeltonTel. +33 (0) 1 47 48 66 74e-mail: [email protected]
David-Alexandre GuezTel. +33 (0) 1 47 78 27 85e-mail: [email protected]
147Investor Day – 22 October 2004
TRADING TECHNIP
ISINFR0000131708
