addressing feedstock challenges for indian chemical industry · mr. b. ashok ceo, rrpcl november...
TRANSCRIPT
Mr. B. AshokCEO, RRPCL
November 12th, 2019
Addressing Feedstock Challenges for Indian Chemical Industry
Summit on Global Chemicals and Petrochemicals 2019
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Addressing Feedstock Challenge
About RRPCL
Focus of today
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2
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Feedstock Availability
About RRPCL
Focus of today
1
2
4
RRPCL has been conceptualized as world’s largest integrated refinery and petrochemical project to meet domestic demand
Project highlights
1. After obtaining land and required permissions2. Includes export commitments
Crude capacity
Petchemcapacity
Key Products
Investment Proposed
Time to commission
Key stakeholders
Area
60 MMTPA
18 MMTPA
Fuels (BS VI+), Olefins, Aromatics, Derivatives
~USD 45 billion
60 months1
JV b/w IOCL, HPCL, BPCL, Saudi Aramco and ADNOC
15,000 acres
Fuel deficit (MMTPA)
185
354454
230320
378
2016 2025 2030
~75 MMTPA
Petchem deficit (MMTPA)
12
32
50
915
2016 2025 2030
14.3
~18 MMTPA
Domestic demand2 Domestic production
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Equipment Procurement of Heat
exchangers, boilers, valves, actuators, motors, pumps,
automation
Steel6.9 lakh MT steel
Equal to
130 Eiffel towers
Concrete108 lakh m3 concrete
Equal to
54 Petronas twin towers
Electrical Cable1.2 lakh km
Equal to
3 x earth’s circumference
Pipe network10000 km
Equal to
4 x length of Ganga river
Multiple industries to benefit from the material demand generated.
The scale of the greenfield project development is unprecedented
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National GDP improvement of ~2%
State GDP improvement of ~10%
Impact of RRPCL project
The refinery and petrochemical project will bring large scale socio-economic benefits for the region
Forex outflow reduction worth $23 Bn annually
Key contributor in makingMaharashtra a USD 1 Tn economy
Upgradation of quality of life through world-class urban infrastructure and
better connectivity
Contribution of ~5-10% of India’s total FDI inflow
1-1.5 lakh jobs during construction; 20,000 direct jobs, once commissioned
Multiplier Effect on other domestic industries such as construction
materials, downstream chemicals, manufacturing, etc.
Contribution towards flagship schemes like Make in India, Skill
India, Digital India, Smart City
The project is critical to drive India towards energy security and self sufficiency in chemicals
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Addressing Feedstock Challenge
About RRPCL
Focus of today
1
2
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Domestic feedstock availability remains a key challenge dampening domestic chemical industry growth
Petrochemical Feedstock(Net deficit, KTPA)
Propylene
Propylene Oxide
Acrylic Acid
Phenol
Ethylene
Ethylene Oxide
1,000
2,600
35
80
4,000
17,000
800
4,000
175
350
120
570
2018 2030 2018 2030 2018 2030
1. Source: Nexant, A.T. Kearney
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Multiple avenues have been suggested to overcome feedstock challenges in the domestic chemicals sector
Elaborated further
• Partnerships with feedstock advantaged regions to secure feedstock (JV or offtake agreements, buying consortiums) can be a viable alternative
Partnerships & Alliances3
• Chemicals derived from bio based feedstock have seen selective success. However, technology, scale and economics remain big change
• Unlikely to capture major share in next decade or two
Alternative non-hydrocarbon Feedstock
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• Significant progress in recent past with majority of standalone refineries planning petchem integration (e.g. multiple examples such as BORL, BPCL Mumbai, HPCL etc )
Integration of petrochemical with refinery
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• MTO/CTO suffer from issues such as high capex, economics and sustainability concerns
• PDH and ethane can be viable alternatives for select coastal locations
Non-traditional hydrocarbon feedstocks
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• PCPIRs have seen limited progress due to issues related to land acquisition, feedstock sharing, planning and implementation focus
• Critical to shore up implementation with a focused task force
Robust ecosystem with downstream players
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Robust ecosystem with close integration of petrochemical and downstream players is critical to solve feedstock problem for domestic chemical sector
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Six key factors are critical to create a vibrant ecosystem of petrochemicals and downstream chemical companies
Policy Support• Availability of land at affordable rates• Single window clearance• Provision of incentive package
Close integration between tenants
• Presence of anchor tenant• Sharing of building blocks and feedstock between tenants
Focused Park Governance• Dedicated park developer entity with participation from
government and other stakeholders for development of park, investor attraction and facilitation
Key Success Factors
Centralized utilities and ancillary industries
• Cost effective utilities and services through centralization and sharing among multiple players
Plug-n-play Infrastructure• Presence of multi-modal logistics, infrastructure and other
facilities to allow ‘plug-n-play’ by downstream companies
Locational Advantage• Proximity to consumer markets• Easy access to imports and exports infrastructure
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Development of downstream industries
unit unit RRPCL
Conversion & Specialty
chemicals players
Downstream organic
synthesis players
High level of integration, scale, state of the art technology will allow for low cost production of
intermediaries making industry globally competitive
RRPCL provides an attractive location and can act as anchor to foster a downstream cluster development
RRPCL will focus on core refinery and select petrochemicals
It can serve as an anchor tenant to provide cost-effective building
blocks for downstream industries
Attractive location with access to large domestic market as well as
exports
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We have provisioned chemical building blocks for downstream industries and open to production partnerships
1 – 1.5 MMTPA of building block (Ethylene,
Propylene…) capacities available for downstream
industries
Open to explore partnerships with industry players for current planned
derivatives
Opportunities with RRPCL
Ethylene
Propylene
C4/C5 Stream
Benzene, Toluene, Xylene
Polyethylene, PVC, Ethylene Oxide (EO),
MEG…
Polypropylene, Propylene Oxide (PO), Acrylic Acid,
Acrylates…
Butadiene, Butane…
Acetone, Phenol, Styrene, Terephthalic Acid (PTA)…
Planned petrochemical building blocks and derivatives in RRPCL
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Downstream players and government stakeholders need to come together to jointly develop the required integrated cluster
Government
RRPCLDownstream Investors
• Acceleration of land acquisition; provisioning land for downstream players at attractive rates
• Setup of institutional structure to streamline project implementation
• Provision of incentive package and key infrastructure
• Investment across the downstream value chain
• Technology for niche chemicals
• Production of locally-customized products
• Serving as an anchor and ensuring feedstock availability
• Playing active role with park developer to facilitate provisioning of services and infrastructure
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Thank You!