PETROCHEMICALS: NEW LANDSCAPE, NEW PLAYERS

Transcription

1 PETROCHEMICALS: NEW LANDSCAPE, NEW PLAYERS Michel H. BUFFENOIR CEO Ethylene Business Unit INVESTOR DAY, PARIS, FRANCE - October 22, 2004

2 PETROCHEMICALS: BIG BUSINESS! 127

3 PETROCHEMICALS: VERY BIG BUSINESS!! 128

4 PETROCHEMICALS: YET VERY SMALL - MOLECULE OF PLASTIC BAG 129

5 PETROCHEMICALS: BIG BUSINESS FOR TECHNIP BACKLOG end 2003 Petrochems 14% REVENUES 2003 Petrochems 20% 130

6 PETROCHEMICALS AT A GLANCE Business of US$ 12 to 14 billion yearly World Production ~600 Million t/year billion derivatives Feedstocks: hydrocarbons (C & H) from natural gas, oil, coal (plus minerals: chlorine, fluor, metals, and oxygen/nitrogen from air!) 131

7 MAKING POLYMERS FROM OIL & GAS Vinyl Chloride (VCM) Polyvinyl Chloride Ethylene Ethylene Oxide (EO) Monoethylene Glycol (MEG) Polyethylenes Propylene Polypropylenes Olefins Allyl Chloride Propylene Oxide (PO) Epichlorohydrin (ECH) Polyether Polyols Butadiene Butadiene Rubber Oil / Gas Feedstocks Styrene Butadiene Rubber Thermoplastic Rubber C 5 Olefins Isoprene Isoprene Rubber Styrene (SM) Polystyrenes Acetone Aromatics Benzene Cumene Phenol Diphenylol Propane Diphenyl methane Di-Isocyanate (MDI) Epoxy Resins Toluene Toluene Di-Isocyanate (TDI) Polyurethanes Xylenes Para-Xylene Terephthalic Acid (PTA) Polyethylene Terephthalate 132

8 PETROCHEMICALS: NEW ENVIRONMENT NEW LANDSCAPE Most of new capacities will be built:! Close to the cheapest feedstocks available: 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-owned entities, 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 facilities to meet an exploding Far East demand New world-class players who will invest alone or associated with traditional US/W.Europe/Japan groups:! NPC (Iran)! Sabic (KSA)! Sinopec (China)! Sasol (S.A.)! NPC (Thailand)! Q-Chem (Qatar) 133

9 THE WORLD S TOP PETROCHEMICALS PRODUCERS: EXAMPLE OF NEW PLAYERS IN ETHYLENE BUSINESS Million t/y Dow (USA) Exxon-Mobil (USA) Shell (USA/Holland) Equistar/Lyondell (USA) NPC NPC (Iran) Sabic (S. Arabia) BP/Amoco (UK/USA) Chevron-Phillips (USA) Sinopec (China) Nova (Canada), AtoFina (France) BASF (Germany) NPC (Iran) Source: UBS Warburg 134

10 BASIC PETROCHEMICALS: ETHYLENE CAPACITY GROWTH Millions of tons - Regions Millions of tons - World N. America W. Europe N.E. Asia Middle East (Source: OGJ/CMAI) 135

11 BASIC PETROCHEMICALS: ETHYLENE CAPACITY GROWTH Middle East 136

12 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 137

13 OUR TEAM: A NETWORK OF EPC OFFICES The Hague Los Angeles Houston Paris Düsseldorf Rome Abu Dhabi Shanghai Kuala Lumpur 138

14 TECHNIP POSITION: COMPLETE ETHYLENE PLANT AWARDS Capacity in millions of tons Technip 2000/ / Total Awarded % Technip 18% 45% 139

15 2005 PETROCHEMICALS: MAJOR PROSPECTS FOR TECHNIP 1) Ethylene Kuwait (0.8)* $ ~ 500 mm LSTK Iran 8 th Arvand (1.0)* Iran Ilam* (0.5)* Iran 11 th * Iran 12 th ( 1.95, largest in the world)* $ ~ 1,000 mm LSTK Qatar Ras Laffan (1.0)* Qatar Petroleum* $ ~ 1,400 mm LSTK S. Arabia Yanbu (1.2)* $ ~ 600 mm LSTK S.Arabia Shark (1.2)* $ ~ 600 mm LSTK Abu 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 140

16 2005 PETROCHEMICALS: MAJOR PROSPECTS FOR TECHNIP 2) Polymers (PE/PP) PE: ~20 prospects: Middle East, Far East, Europe PP: ~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 East PTA: few projects And other projects: methanol, acetic acid, in Middle East 141

17 TECHNIP REFERENCES IN POLYMERS Polyolefins! Polyethylene (LDPE, LL/HDPE swing, HDPE) 84 units! Polypropylene Polyvinychloride Polystyrene Elastomer Polyamide Polyester 18 units 13 units 3 units 3 units 4 units 142

18 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 143

19 PTA: WORLD CAPACITY BY REGION IN 2005 Indonesia 5.8% Japan 3.9% Thailand 5.4% Other Asia 3.1% China 19.3% India 6.0% Europe & Middle East 11.9% South Korea 15.7% Taiwan 13.9% Americas 15.0% Total Capacity of 35 Million Metric Tons (PTA and Medium Purity) 144

20 PETROCHEMICALS: ALL TOGETHER, AN ATTRACTIVE BUSINESS! THANK YOU! 145

21 For more information, please contact: INVESTOR RELATIONS G. Christopher Welton Tel. +33 (0) cwelton@technip.com David-Alexandre Guez Tel. +33 (0) daguez@technip.com 146

22 TRADING TECHNIP ISIN FR