Partnering with China: New Opportunities Yousef A. Al Zamel EVP Corporate Strategy & Planning
USD Billion China & KSA Bilateral Trade Strong & Growing 25.0 20.0 15.0 10.0 5.0 0.0 China Exports to KSA 2007 2008 2009 2010 2011 2012 2013 Other Product Exports Petrochemical and Chemical Exports USD Billion 60.0 40.0 20.0 0.0 China Imports from KSA 2007 2008 2009 2010 2011 2012 2013 Crude Imports Petrochemical and Chemical Imports Other Product imports Sources: Government Statistics
USD Billion China & GCC Bilateral Trade Strong & Growing 60.0 40.0 20.0 China Exports to GCC 0.0 2007 2008 2009 2010 2011 2012 2013 Other Product Exports Petrochemical and Chemical Exports USD Billion 150.0 100.0 50.0 0.0 China Imports from GCC 2007 2008 2009 2010 2011 2012 2013 Crude Imports Petrochemical and Chemical Imports Other Product imports Sources: MOFCOM
KSA & GCC are the Largest Suppliers of Crude Oil to China Total Crude Imports by China, by source, 5300 Kbbl/d (2012) Total Crude Imports by China, by source, 5600 Kbbl/d (2013) Libya 3% UAE 3% Kuwait 4% Kazakhastan 4% Venezuela 5% Iraq 6% Others 16% Oman 7% Russia 9% Iran 8% Saudi Arabia 20% Angola 15% Congo 2% Kuwait 3% UAE 4% Kazakhstan 4% Venenzula 6% Iraq 8% Brazil 2% Others 12% Oman 9% Saudi Arabia 19% Iran 8% Angola 14% Russia 9% KSA has been the largest crude supplier to China, supplying Sources: EIA 19~20% of China s crude oil imports in 2012 and 2013.
China GCC Co-operations Wide & Strong, in addition to Trading JVs in Petrochemical & Downstream SSTPC JV (SABIC & Sinopec in China) YASREF JV (Saudi Aramco & Sinopec in KSA) FPCL Sinopec Exxon Aramco Fujian JV China Areas of Cooperation Construction & Infrastructure Railways, Housing, etc. Project Contracting Refineries, Petrochemical Complexes, etc. Upstream Cooperation Oil & Gas Financial Sector Banking, Investments, etc. Culture & Tourism Significant Future Growth Potential Opportunities in Petrochemicals Value Chains and Downstream Industrial Sectors
China 12 th Five Year Plan for Refining & Petrochemicals 800 China Refining Capacity MMTPA 100 China Fertilizers Capacity MMTPA 600 MMTPA 400 200 MMTPA 50 0 2011 2015 0 2010 2015 30 China Ethylene Capacity MMTPA 100 China Polymers* Capacity MMTPA MMTPA 20 10 MMTPA 50 0 2011 2015 0 2011 2015 *Polymers include capacities of HDPE, LDPE, LLDPE, PP, and PVC only China has set strong capacity addition targets for refining, fertilizers, and petrochemical products for 2015 as a part of the China 12 th Five-Year Plan Sources: CNCIC
KSA & GCC Petrochemical Growths Outlooks Strong GCC Petrochemicals Capacity 2013 Total GCC Capacity = 137 Million Tonnes UAE 6% Kuwait 5% Qatar 15% 2020 Forecasted Capacity Share Total Capacity Estimate = 191 Million Tonnes UAE 8% Kuwait 6% Qatar 15% Saudi Arabia 66% Oman 6% Bahrain 1% Saudi Arabia 65% Oman 5% Bahrain 1% Saudi Arabia holds the No.1 leadership position in the petrochemical and chemicals sector in the GCC. In 2013, Saudi Arabia held around two-third of GCC petrochemical total market capacity of about 90 million tonnes. Sources: GPCA, Arabian Oil & Gas
KSA Petrochemical Value Chain New Cooperation Opportunities Priority Industrial Clusters Minerals & Metals Automotive Plastics & Packaging Home Appliances Solar Energy Chemicals Value Chains Synthetic Rubber Chains Carbon Fiber Chains Ethoxylates and Amines Chains Polyurethane Chains Thermoplastic Chains Acrylic Chains Speciality Performance Chemicals Value chains Polyamide Chains Aluminum Chains Phosphate chains EPC Construction Equipment Supplies Industrial services Spare parts supply
Downstream Industrial New Cooperation Opportunities Supply & Manufacturing in KSA Machinery Equipments Auto Parts Electrical & Electronics Manufacturing Tires & Rubber Products Industrial Services EPC Construction SMEs Growth & Support Knowledge & Technology Transfer
Partnering with China: New Opportunities Promising Growth Outlook Potential Future Cooperation Good Strategic Growth Opportunities Petrochemical & Downstream Value Chains Win-Win Partnerships Strengthen Bilateral Relationships Promote Mutual Development China & GCC are Strong Partners for Future Growth & Cooperation
Partnering with China: New Opportunities Thanks Yousef A Al Zamel EVP Corporate Strategy & Planning