Petrochemical

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Petrochemical Feedstock TradingSettawat
Takulpakdeechoumpon
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Todays Contents

• Overview of Our Business
• Synergy between Petroleum Petrochemical
• Where does Benzene come from?
• Benzene Utilisation
• Trade Pattern
• Benzene Situation in SE Asia
• Domestic Situation
• Sales Operations Procedures
• S.W.O.T. Analysis

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Overview of Our Business
PIPELINE, TRUCK, VESSEL
DOMESTIC
PTT
ATC
PTT
feedstock
TRANSPORTATION
EXPORT
products
VESSEL
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ATC Production Capacity
Unit MT per Annum
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Characteristics of Chemical Industry

• Strong Regulation
• Value-Added Chain
• Capital Intensity Economies of Scales
• Participation in International Trade
• High Research Development Expenses
• Dislocation

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Benzene Price Driving Factors
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Synergy betweenPetroleum Petrochemical
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Crude Distillation
GASES
ATMOSPHERIC DISTILLATION COLUMN
LIGHT NAPHTHA
NAPHTHA
HEAVY NAPHTHA
KEROSENE
MIDDLE DISTILLATE
GAS OIL (DIESEL FUEL)
LUBRICATING OIL
HEAVY FRACTIONS
RESIDUAL OR HEAVY FUEL OIL
ASPHALT
VACUUM GAS OIL
LUBRICATING OIL FEEDS
VACUUM DISTILLATION COLUMN
HEAVY GAS OIL
PITCH
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Gas Processing and Refinery/Petrochemical
Integration
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Petrochemical is value-added material
TYPICAL RATIO OF PRICE OF PRODUCT TO PRICE OF
CRUDE
PRODUCT
2.4 TO 7.8
PARAXYLENE
Chemical Products (2.0 TO 5.0)
1.6 TO 3.3
BENZENE
1.7 TO 4.2
ETHYLENE
2.6 TO 4.8
PROPYLENE
1.0 TO 1.7
LPG
1.4 TO 1.8
MOTOR GASOLINE
Refined Products (1.0 TO 1.5)
1.3 TO 1.7
NAPHTHA
1.1 TO 1.8
GAS OILS
1.3 TO 1.9
JET KEROSENE
0.95 TO 1.05
VACUUM GAS OIL
0.6 TO 0.7
RESIDUAL FUELS
Average 1990-2002
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Energy VS Chemicals
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WHERE DOES BENZENE COME FROM?
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Where does Benzene come from?

• CATALYTIC REFORMER
• NAPHTHA, CONDENSATE, REFORMER BENZENE
• TOLUENE HYDRODEALKYLATION
• TOLUENE HYDROGEN BENZENE METHANE
• TOLUENE DISPROPORTIONATION
• 2 TOLUENE BENZENE MIXED-XYLENE
• 2 TOLUENE BENZENE PARAXYLENE

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Where does Benzene come from?

• COKE OVEN DISTILLATE
• USUALLY COMES FROM STEEL INDUSTRY
• PYROLYSIS GASOLINE FROM CRACKER
• CRACKER AROMATICS COMPLEX
• ALKANE OR OLEFIN AROMATIZATION (CYCLAR)
• PROPANE BUTANE(LPG) BTX C9 C10

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2004 Benzene Source Ratio
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Benzene Utilisation
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APPLICATION OF AROMATICS PRODUCTS
AROMATICS REFORMER PLANT
UPSTREAM STAGE
INTERMEDIATE STAGE
DOWNSTREAM STAGE
END PRODUCTS
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2004 Benzene Derivatives Ratio
NE ASIA JAPAN, KOREA, TAIWAN, CHINA SE ASIA
SINGAPORE, MALAYSIA, THAILAND, INDIA, AUSTRALIA
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Trade Pattern
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Benzene Trade Surplus
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Benzene Trade Deficit
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International Trading of Benzene
WEU
NAM
NEA
MDE
SEA
SAM
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Benzene SituationinSOUTH-EAST ASIA
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2004 SE Asia Balance

• AMSB 150
• EXXONMOBIL I 300
• EXXONMOBIL II 150
• PCS I 105
• PCS II 175
• TITAN 130
• CHEVRON 123
• ROC 160
• ATC 456
• TOTAL 1,649

• SMI 334
• ISM 169
• ELLBA 465
• SERAYA 335
• SSMC 240
• TPI 160
• MITSUI PHENOL 234
• TCL 41
• UIC 75
• EXXONMOBIL 162
• TOTAL 2,215

SE ASIA IS STILL SHORT 466,000 MTA
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SE Asia Benzene Derivative Portion 04
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BENZENE DEMAND IN SE ASIA

• INDONESIA
• JUSTI MA 12 KTA -16 KTA
• SMI SM 350 KTA -280 KTA
• UIC LAB 110 KTA -75 KTA
• MALAYSIA
• ISM SM 200 KTA -168 KTA
• TRIRUMALAI MA 30 KTA -36 KTA
• SINGAPORE
• EXXON-MOBIL CX 175 KTA -162 KTA
• ELLBA SM 550 KTA -440 KTA
• SERAYA SM 320 KTA -256 KTA
• MITSUI PHENOL PH 250 KTA -232 KTA
• THAILAND
• SSMC SM 300 KTA -240 KTA
• TPI SM 200 KTA -160 KTA

BZSM 0.81.0 BZMA 1.251.0
BZLAB0.4051 BZPH 0.9281 BZCX 0.931
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Domestics Situation
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ATC Capacity Expansion
Unit 000 MTA
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ATC the major producer in SEA
CUMENE-PHENOL 170,000 MTA REQUIRED
CYCLOHEXANE 120,000 MTA REQUIRED
Unit 000 MTA
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2004 Domestic Benzene Schematics
TOTAL 716,000 MTA
EXPORT396,000 MTA
DEMAND 320,000 MTA
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Trade Pattern In 2004
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Trade Flow in SEA

• AMSB 150
• EXXONMOBIL 350
• PCS 280
• TITAN 130
• CHEVRON 123
• ROC 160
• ATC 456

• SMI 334
• ISM 169
• ELLBA 465
• SERAYA 335
• SSMC 240
• TPI 160
• MITSUI PHENOL 234
• TCL 41
• UIC 75
• EXXONMOBIL 162

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SE Asia Centre of Trading
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Benzene Strategy in 2004
PTT has to build up fortress to protect price
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Benzene Export by Country during Jan00-May04
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Additional Benzene Derivatives In 2004 - 2005

• Q1, 2004
• Nikko (JPN) CX 90,000 MTA
• FCFC (TWN) PH 160,000 MTA
• Q2, 2004
• BASF (KOR) MDI 42,000 MTA
• Changchun (TWN) PH 180,000 MTA
• Q3, 2004
• Mitsui Chem (JPN) PH 120,000 MTA
• Q4, 2004
• Gaoqiao (CHN) PH 108,000 MTA

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Additional Benzene Derivatives In 2004 - 2005

• Q1, 2005
• YNCC (KOR) SM 72,000 MTA
• LGPC (KOR) PH 180,000 MTA
• Kumho (KOR) PH 180,000 MTA
• Q2, 2005
• SECCO (CHN) SM 400,000 MTA
• Shell (CHN) SM 440,000 MTA
• Q3, 2005
• Toso (JPN) Aniline 100,000 MTA

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Table of Additional Benzene Derivatives
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Sales and Operations Procedures
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Sales Operations Procedures

• Offer Product To Market
• Tender Process
• Direct Negotiation
• Prepare Contractual Agreement
• Unit Price
• Product Category
• Quality of Product
• Quantity of Product
• Delivery Period Incoterm

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Sales Operations Procedures

• Coordination Government Official
• Domestic Sales Excise Department
• Export Sales Revenue Department, Industrial
  Department
• Coordination Customer
• Nominate Laycan Vessel
• Prepare Bill of Lading, Certificate of Origin,
  Surveyor Report)
• Others (e.g. Letter of Credit L/C)

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S.W.O.T. Analysis
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S.W.O.T. Analysis
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End of Presentation Thank You for Listening