04 bernd blumenberg_basf-ypc (2)

BASF-YPC Company Limited扬子石化扬子石化扬子石化扬子石化－－－－巴斯夫有限责任公司巴斯夫有限责任公司巴斯夫有限责任公司巴斯夫有限责任公司

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Development of the Value Chains in a Cracker- based Integrated Petrochemical Site

Dr. Bernd Blumenberg

Vienna, February 9, 2010


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� Raw material

� Energy

� Other utilities

� Personnel

� Capital cost

� Transportation

Cost of Chemical Production


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• Crude oil to NEA: ~ USD 15 / mt

• Freight of chemicals: USD 30 ~ 80 /mt

• Import duty (e.g., China 5.5% - 6.5%)

• Reliability issues

• Safety aspects

• Transportation mode:

Pipeline, Waterway, Rail, road

Transportation


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Business Mode

Option One:Option One:

Middle East Asia

Ethane �� Ethylene �� PE Downstream

MEG

freight

duty


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MEG cost and margin comparison ($ 81 Crude oil)

0

200

400

600

800

1,000

1,200

China (Naphtha) Middle East Ethane Middle East MixedFeed

Purchased Ethylene$1,300

$/Tonne

MEG Cash Cost Freight Duty Tankeage Distribution Margin


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Business Mode

Option Two:Option Two:

Middle East Asia

Crude Oil Naphtha �� Cracker �� Acrylic Acid

�� Butyl Acrylate �� Downstream

freight

Option Three:Option Three:

Middle East Asia

Propylene �� Acrylic Acid

�� Butyl Acrylate �� …

freight

dutyDownstream


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Cash cost comparison of Butyl Acryates (BA):Middle East vs. Chinese producer

Source : CMAI & NEXANT

Distribution Costs include freight & duties into Ch ina

C3 Price Assumption USD 1000, Oil Price USD 70 - 80

China Middle East

Cash Cost Distribution Cost

BA from Middle East to China:

- Raw material cost advantage depending on upstream feedstock

- Barriers to entry

• Distribution costs diluted comparative advantage

• Long lead-time poses operational challenges in relation to delivery reliability


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• BASF concept:

– Verbund sites

– Chemical sites

– Sites close to customers

• Multi-companies clusters

– Antwerp, Rotterdam

– Houston

– “Chemical Parks” (Shanghai, Nanjing)

Production Clusters


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BASF’s Verbund Concept


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BASF’s Verbund Site at Ludwigshafen


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• Full usage of the raw materials

• Large scale and efficient energy and utility supply

• Common infrastructures

– Jetties

– Tank farms

– Waste water treatment

– Waste incinerator

• Attraction for service providers and workforce

Characteristics of Production Clusters


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Nanjing --- Center of the fastest growing chemical c enter in China

Chongqing

Hong Kong

Shanghai

Nanjing

Beijing


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BASF Nanjing Verbund Site --- Current

Naphtha Feed

Propylene

Ethylene CO/H2

CO

CO/H2 CO

NH3

MeOH

CrackerPolyethylene

Ethylene Glycol

Oxo-alcohols

Acrylic Acid

Syngas

Acrylates

PropionicAcid

FormicAcid

DimethylFormamide

MethylAmines

Aromatics

Natural Gas


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BASF Nanjing Verbund Site --- after Expansion

Naphtha Feed

Propylene

EthyleneCO/H2

CO

CO/H2 CO

NH3 MeOH

CrackerPolyethylene Ethylene

Glycol

Oxo-alcohols

Acrylic Acid

Syngas

Acrylates

PropionicAcid

FormicAcid

DimethylFormamide

MethylAmines

Aromatics

Natural Gas

Ethylene Oxide

NIS

BG

SAP

Butadiene Isobutene

2-PH

PIB

EA/EOA/DMEOA

WCP

Existing plant

Extended plant

New plant

Styrene Monomer

PS

EPS

C4YBS plant


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Thank You

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04 bernd blumenberg_basf-ypc (2)