Title Slide Example Subtitle
Petrochemicals Michel Berghmans January 2016
Petrochemicals Chemicals derived from Petroleum and Natural gas
• Crude oil (Naphta) and Natural gas (Methane, ethane and other natural gas liquids) • Cracking processes lead to petrochemicals • Primary building blocks: Methanol, Ethylene, propylene, butadiene, benzene, toluene, xylene… • Products of these are polymers (polyethylene, polypropylene, polystyrene,…) solvents, detergents,…. • Finished goods made with these can be found in every aspect of modern life
2
Petrochemical industry in Canada and Alberta
• $47 billion industry in Canada, $14 billion in Alberta. • Employs 87,000 Canadians and 9,500 Albertans • Supports key sectors : automotive, aerospace, food and beverage, construction, plastics and forest product industries • Uses resources as feedstock: Oil, Gas, natural gas Liquids and minerals • Worlds fourth largest exporter of Polyethylene • Chemistry ads 5 to 10 times the value of the natural resources through technology • Products, produced in Alberta: ethylene, polyethylene, linear alpha olefins, ethylene glycol, styrene, methanol, fertilizers,….
3
NOVA Chemicals Overview • Headquartered in Calgary, Alberta with major site operations in Joffre, Alberta and Sarnia-Lambton, Ontario • Owned by International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates • Annual sales in 2014:
$5.2 billion USD
• Number of Employees: 2,700 worldwide • Responsible Care® is the foundation of our organization • Focused on polyethylene products and markets • Product portfolio: More than 150 high-performance specialized polyethylene resins under three brand families – SURPASS®, SCLAIR®, and NOVAPOL® resins
4
NOVA Chemicals Olefins / Polyethylene Value Chain
5
Ethylene Process Flow
6
Energy and Feedstocks
• Large customer of Alberta’s natural gas producers • NOVA Chemicals Joffre Site facilities account for about 15% of the total intra-Alberta demand for natural gas
• Natural gas also contains the building block for Alberta’s petrochemical industry • Ethane is extracted from the natural gas stream by a series of extraction / fractionation plants (straddle plants) and arrives by pipeline
7
Feedstock Leadership “First Mover” Sources
8
Highlights: Joffre Site Milestones
Early 1970s: Alberta Government promotes economic diversity and geographic decentralization
9
1970s
1980s
1990s
2000s
2010s
Start-up
Responsible Care ®
Expansion
2nd Polyethylene Plant comes online
Growth Strategy
Joffre Site Today
• One of the largest ethylene / polyethylene complexes in North America • Three ethylene plants (E1, E2 and E3) • Two polyethylene plants (PE1 and PE2) • COGEN provides electricity and steam • Hydrogen off-gas (HOG) • INEOS’ LAO plant integrated to ethylene and polyethylene operations
10
Polyethylene 1 Expansion Project PE1 Expansion Project (R3): • Total capital cost, including start-up spending is approximately $1 billion to 2016 • 40% – 60% capital cost to be spent in Alberta o Majority for direct labour
• 1,000 person years or 2M work hours over 29 months • Total new permanent employees and contractors approximately 60 • Significant economic benefits to Central Alberta region o Materials, commodities, services o Support services for workforce >$8 million
11
Snapshot of Economic Impact in Alberta (2014) • 1320 employees + Approximately 400 contractors + Growth • $242M : Salaries and Benefits Paid
• $23M : Provincial Taxes • $45M : Federal Taxes
• $11.6M : Property and Pipeline Taxes • $74M : AB Corporate Income Taxes
• $80M : Sales Tax
12
Alberta – Other Facilities
Red Deer Executive Place
NOVA Chemicals Head Office, Downtown Calgary 13
Centre for Applied Research, NE Calgary
Centre for Performance Applications, NE Calgary
Operating Location Capacities (mmlbs/kt) Olefins & Polyolefins Locations
Ethylene
Co-Products
Polyethylene
Advanced SCLAIRTECH™ Technology Polyethylene
Joffre, AB
4800 1 / 2190
830 / 380
1480 / 670
1000 / 450
Corunna, ON
1800 / 820
700 / 317
Moore Township, ON
840 / 380
St. Clair River, ON
450 / 205
Total
6600 / 2990 3
1530 / 697
2770 / 1255
1000 / 450
Performance Styrenics Expandable Polystyrene
Styrenic Performance Polymers
Monaca, PA
270 / 125
80 / 35
Painesville, OH
100 / 45
Locations
Styrene
Channelview, TX 2
400 / 180
Total
400 / 180
370 / 170 3
70 / 30
1. Excludes Dow Chemicals 50% position in the E3 cracker. Including the Dow portion, Joffre has an annual capacity of 6,200 mmlbs (2,820 kt) of ethylene. 2. Equity position in Lyondell’s Channelview styrene plant. 3. Difference between total and individual plant values attributable to rounding.
14
2014 North America Ethylene and PE Capacity
Company
15
Ethylene
Share
Dow Chemical
12,500
17%
LyondellBasell
10,500
ExxonMobil
Company
LLDPE
LDPE
HDPE
Total
Share
Dow Chemical
5,640
1,360
2,640
9,640
23%
14%
ExxonMobil
3,670
1,390
3,910
8,970
21%
9,300
13%
LyondellBasell
1,250
1,380
3,140
5,770
14%
Chevron Phillips
7,800
11%
Chevron Phillips
650
620
3,940
5,210
12%
NOVA Chemicals
6,600
9%
NOVA Chemicals
2,280
375
1,115
3,770
9%
Shell Chemical
5,800
8%
Westlake
990
1,500
-
2,490
6%
Ineos
4,200
6%
Formosa
620
-
1,650
2,270
5%
Formosa
3,300
5%
Ineos
-
-
2,150
2,150
5%
Westlake
3,400
5%
Others
-
1,090
960
2,050
5%
Others
10,300
14%
Total
15,100
7,700
19,500
42,300
100%
Total
73,600
End Products
Industrial Goods
Consumer Packaging
Consumer Goods
Storage & Transportation
NOVA is a leader in the markets where our solutions and expertise can create the most value for our customers 16
PERFORMANCE DRIVEN. CUSTOMER INSPIRED.
novachemicals.com
The information contained herein is provided for general reference purposes only. By providing the information contained herein, NOVA Chemicals makes no guaranty or warranty and does not assume any liability, with respect to the accuracy or completeness of such information, or product results in any specific instance, and hereby expressly disclaims any implied warranties of merchantability or fitness for a particular purpose or any other warranties or representations whatsoever, expressed or implied. Nothing contained herein shall be construed as a license to use the products of NOVA Chemicals in any manner that would infringe any patent. Nothing herein shall be copied, reproduced, distributed or otherwise used without the express written permission of NOVA Chemicals. NOVA Chemicals' logo is a registered trademark of NOVA Brands Ltd.; authorized use/utilisation autorisée. Responsible Care® is a registered trademark of the Chemistry Industry Association of Canada (CIAC).
Petrochemicals Chemicals derived from Petroleum and Natural gas
• Crude oil (Naphta) and Natural gas (Methane, ethane and other natural gas liquids) • Cracking processes lead to petrochemicals • Primary building blocks: Methanol, Ethylene, propylene, butadiene, benzene, toluene, xylene… • Products of these are polymers (polyethylene, polypropylene, polystyrene,…) solvents, detergents,…. • Finished goods made with these can be found in every aspect of modern life
2
Petrochemical industry in Canada and Alberta
• $47 billion industry in Canada, $14 billion in Alberta. • Employs 87,000 Canadians and 9,500 Albertans • Supports key sectors : automotive, aerospace, food and beverage, construction, plastics and forest product industries • Uses resources as feedstock: Oil, Gas, natural gas Liquids and minerals • Worlds fourth largest exporter of Polyethylene • Chemistry ads 5 to 10 times the value of the natural resources through technology • Products, produced in Alberta: ethylene, polyethylene, linear alpha olefins, ethylene glycol, styrene, methanol, fertilizers,….
3
NOVA Chemicals Overview • Headquartered in Calgary, Alberta with major site operations in Joffre, Alberta and Sarnia-Lambton, Ontario • Owned by International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates • Annual sales in 2014:
$5.2 billion USD
• Number of Employees: 2,700 worldwide • Responsible Care® is the foundation of our organization • Focused on polyethylene products and markets • Product portfolio: More than 150 high-performance specialized polyethylene resins under three brand families – SURPASS®, SCLAIR®, and NOVAPOL® resins
4
NOVA Chemicals Olefins / Polyethylene Value Chain
5
Ethylene Process Flow
6
Energy and Feedstocks
• Large customer of Alberta’s natural gas producers • NOVA Chemicals Joffre Site facilities account for about 15% of the total intra-Alberta demand for natural gas
• Natural gas also contains the building block for Alberta’s petrochemical industry • Ethane is extracted from the natural gas stream by a series of extraction / fractionation plants (straddle plants) and arrives by pipeline
7
Feedstock Leadership “First Mover” Sources
8
Highlights: Joffre Site Milestones
Early 1970s: Alberta Government promotes economic diversity and geographic decentralization
9
1970s
1980s
1990s
2000s
2010s
Start-up
Responsible Care ®
Expansion
2nd Polyethylene Plant comes online
Growth Strategy
Joffre Site Today
• One of the largest ethylene / polyethylene complexes in North America • Three ethylene plants (E1, E2 and E3) • Two polyethylene plants (PE1 and PE2) • COGEN provides electricity and steam • Hydrogen off-gas (HOG) • INEOS’ LAO plant integrated to ethylene and polyethylene operations
10
Polyethylene 1 Expansion Project PE1 Expansion Project (R3): • Total capital cost, including start-up spending is approximately $1 billion to 2016 • 40% – 60% capital cost to be spent in Alberta o Majority for direct labour
• 1,000 person years or 2M work hours over 29 months • Total new permanent employees and contractors approximately 60 • Significant economic benefits to Central Alberta region o Materials, commodities, services o Support services for workforce >$8 million
11
Snapshot of Economic Impact in Alberta (2014) • 1320 employees + Approximately 400 contractors + Growth • $242M : Salaries and Benefits Paid
• $23M : Provincial Taxes • $45M : Federal Taxes
• $11.6M : Property and Pipeline Taxes • $74M : AB Corporate Income Taxes
• $80M : Sales Tax
12
Alberta – Other Facilities
Red Deer Executive Place
NOVA Chemicals Head Office, Downtown Calgary 13
Centre for Applied Research, NE Calgary
Centre for Performance Applications, NE Calgary
Operating Location Capacities (mmlbs/kt) Olefins & Polyolefins Locations
Ethylene
Co-Products
Polyethylene
Advanced SCLAIRTECH™ Technology Polyethylene
Joffre, AB
4800 1 / 2190
830 / 380
1480 / 670
1000 / 450
Corunna, ON
1800 / 820
700 / 317
Moore Township, ON
840 / 380
St. Clair River, ON
450 / 205
Total
6600 / 2990 3
1530 / 697
2770 / 1255
1000 / 450
Performance Styrenics Expandable Polystyrene
Styrenic Performance Polymers
Monaca, PA
270 / 125
80 / 35
Painesville, OH
100 / 45
Locations
Styrene
Channelview, TX 2
400 / 180
Total
400 / 180
370 / 170 3
70 / 30
1. Excludes Dow Chemicals 50% position in the E3 cracker. Including the Dow portion, Joffre has an annual capacity of 6,200 mmlbs (2,820 kt) of ethylene. 2. Equity position in Lyondell’s Channelview styrene plant. 3. Difference between total and individual plant values attributable to rounding.
14
2014 North America Ethylene and PE Capacity
Company
15
Ethylene
Share
Dow Chemical
12,500
17%
LyondellBasell
10,500
ExxonMobil
Company
LLDPE
LDPE
HDPE
Total
Share
Dow Chemical
5,640
1,360
2,640
9,640
23%
14%
ExxonMobil
3,670
1,390
3,910
8,970
21%
9,300
13%
LyondellBasell
1,250
1,380
3,140
5,770
14%
Chevron Phillips
7,800
11%
Chevron Phillips
650
620
3,940
5,210
12%
NOVA Chemicals
6,600
9%
NOVA Chemicals
2,280
375
1,115
3,770
9%
Shell Chemical
5,800
8%
Westlake
990
1,500
-
2,490
6%
Ineos
4,200
6%
Formosa
620
-
1,650
2,270
5%
Formosa
3,300
5%
Ineos
-
-
2,150
2,150
5%
Westlake
3,400
5%
Others
-
1,090
960
2,050
5%
Others
10,300
14%
Total
15,100
7,700
19,500
42,300
100%
Total
73,600
End Products
Industrial Goods
Consumer Packaging
Consumer Goods
Storage & Transportation
NOVA is a leader in the markets where our solutions and expertise can create the most value for our customers 16
PERFORMANCE DRIVEN. CUSTOMER INSPIRED.
novachemicals.com
The information contained herein is provided for general reference purposes only. By providing the information contained herein, NOVA Chemicals makes no guaranty or warranty and does not assume any liability, with respect to the accuracy or completeness of such information, or product results in any specific instance, and hereby expressly disclaims any implied warranties of merchantability or fitness for a particular purpose or any other warranties or representations whatsoever, expressed or implied. Nothing contained herein shall be construed as a license to use the products of NOVA Chemicals in any manner that would infringe any patent. Nothing herein shall be copied, reproduced, distributed or otherwise used without the express written permission of NOVA Chemicals. NOVA Chemicals' logo is a registered trademark of NOVA Brands Ltd.; authorized use/utilisation autorisée. Responsible Care® is a registered trademark of the Chemistry Industry Association of Canada (CIAC).
