Presentation by Bernd Blumenberg, president of BASF-YPC Co (BYC), at the Global Petrochemicals 7th Annual Meeting, organised by the World Refining Association (WRA)
1. Development of the Value Chains in a
Cracker- based Integrated Petrochemical Site
Dr. Bernd Blumenberg
Vienna, February 9, 2010
BASF-YPC Company Limited
1
扬子石化-
扬子石化-巴斯夫有限责任公司
2. Cost of Chemical Production
Raw material
Energy
Other utilities
Personnel
Capital cost
Transportation
BASF-YPC Company Limited
2
扬子石化-
扬子石化-巴斯夫有限责任公司
4. Business Mode
Option One:
Middle East Asia
freight
Ethane Ethylene PE Downstream
duty
MEG
BASF-YPC Company Limited
4
扬子石化-
扬子石化-巴斯夫有限责任公司
5. MEG cost and margin comparison ($ 81 Crude oil)
$/Tonne
1,200
1,000
800
600
400
200
0
China (Naphtha) Middle East Ethane Middle East M ixed Purchased Ethylene
Feed $1,300
M EG Cash Cost Freight Duty Tankeage Distribution Margin
BASF-YPC Company Limited
5
扬子石化-
扬子石化-巴斯夫有限责任公司
6. Business Mode
Option Two:
Middle East Asia
Crude Oil freight Naphtha Cracker Acrylic Acid
Butyl Acrylate Downstream
Option Three:
Middle East Asia
Propylene Acrylic Acid freight
Downstream
Butyl Acrylate … duty
BASF-YPC Company Limited
6
扬子石化-
扬子石化-巴斯夫有限责任公司
7. Cash cost comparison of Butyl Acryates (BA):
Middle East vs. Chinese producer
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
China Middle East operational challenges
Cash Cost Distribution Cost
in relation to delivery
reliability
Source : CMAI & NEXANT
Distribution Costs include freight & duties into China
C3 Price Assumption USD 1000, Oil Price USD 70 - 80
BASF-YPC Company Limited
7
扬子石化-
扬子石化-巴斯夫有限责任公司
8. Production Clusters
• BASF concept:
– Verbund sites
– Chemical sites
– Sites close to customers
• Multi-companies clusters
– Antwerp, Rotterdam
– Houston
– “Chemical Parks” (Shanghai, Nanjing)
BASF-YPC Company Limited
8
扬子石化-
扬子石化-巴斯夫有限责任公司
10. BASF’s Verbund Site at Ludwigshafen
BASF-YPC Company Limited
10
扬子石化-
扬子石化-巴斯夫有限责任公司
11. Characteristics of Production Clusters
• 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
BASF-YPC Company Limited
11
扬子石化-
扬子石化-巴斯夫有限责任公司
12. Nanjing --- Center of the fastest growing chemical center
in China
Beijing
Nanjing
Shanghai
Chongqing
Hong Kong
BASF-YPC Company Limited
12
扬子石化-
扬子石化-巴斯夫有限责任公司
13. BASF Nanjing Verbund Site --- Current
Naphtha Feed
Propionic
Natural Gas Acid
Ethylene CO/H2
Polyethylene
Cracker
Syngas
CO Formic
Ethylene Acid
Glycol
Aromatics CO/H2 CO
Oxo-alcohols Dimethyl
Formamide
Propylene
Acrylates
Acrylic Acid
NH3 Methyl
Amines
MeOH
BASF-YPC Company Limited
13
扬子石化-
扬子石化-巴斯夫有限责任公司
14. BASF Nanjing Verbund Site --- after Expansion
Natural Gas
Naphtha Feed
Ethylene Propionic
Ethylene Polyethylene
Glycol Acid
Cracker CO/H2
NIS Syngas
Styrene Ethylene
CO
Monomer Oxide Formic
Aromatics Acid
BG
PS
CO/H2 CO
EPS
Oxo-alcohols Dimethyl
Acrylates EA/EOA Formamide
Propylene
/DMEOA
Existing plant
SAP
Acrylic Acid Methyl
Extended plant
WCP Amines
New plant 2-PH
C4
YBS plant Butadiene Isobutene PIB NH3 MeOH
BASF-YPC Company Limited
14
扬子石化-
扬子石化-巴斯夫有限责任公司