7/30/2019 Cadenas petroqumicas
1/26
Optimizing the Natural Gas Value Chain
D e v e lo p i n g En e r g y B a se d M a n u f a c t u r i n g I n d u s t r i e s
Vernon Paltoo
Team Leader Office of the President
National Energy Corporation
CARIBBEAN INVESTMENT FORUM
Trinidad HiltonJune 2011
7/30/2019 Cadenas petroqumicas
2/26
Presentation Outline
The Case for Energy Based ManufacturingProjects
Options for Energy Based ManufacturingProjects
The Way Forward
2
7/30/2019 Cadenas petroqumicas
3/26
7/30/2019 Cadenas petroqumicas
4/26
Overview of Energy Industry
Trinidad & Tobago
Global Leader in
Export ofMethanol
Export ofLNG
to USA
Export ofAmmonia
Leading Methanol Exporter in the World
Leading Ammonia Exporter in the World
Leading Exporter of LNG to North America
7/30/2019 Cadenas petroqumicas
5/26
5
Issues Affecting Future
Development of Primary Chemical and GasBased Industries
Expansion in additional methanol and ammonia capacity
could adversely affect our position as a key player byfurther saturating the market.
As other lower cost locations become established, capacityfor methanol and ammonia may have to be gradually
reduced in this country. US domestic gas prices are becoming competitive with gas
from Trinidad and Tobago.
Development of the Shale Gas Industry in the US would
adversely impact our LNG Markets in North America. Creation of a sustainable and diversified energy industry is
critical to the future state of the economy.
7/30/2019 Cadenas petroqumicas
6/26
Gas Production
1960s/70s
Petrochemicals& Metals
1970s/80s LNG
1990s
IntegratedPetrochemical
Complex2010
IntegratedEnergy-basedManufacturing
Industries2010 & Beyond
Progress of Energy SectorGas-based Development
7/30/2019 Cadenas petroqumicas
7/26
Larger number of permanent and construction jobs per unit of capex
Build technical and intellectual resources
Impetus and stimulation for high level and specialized manufacturing industries
Enhanced and broader R&D potential
Leveraging the strengths of the energy sector to develop manufacturing industries
Allows for development of additional and more integrated energy service industries
Minimal impact on levels of reserves
Allows for development of a sustainable and diversified energy industry
Benefits of Developing Smaller Energy Based
Manufacturing Projects
7/30/2019 Cadenas petroqumicas
8/26
Natural gas used
as a fuel asopposed to a raw
material
Minimal
infrastructurerequirements Relatively small
capital expense
Modest utilityrequirements
Minimal landrequirements
Less complex toestablish than
chemical industries
Advantages of Smaller Chemical
and Manufacturing Industries
7/30/2019 Cadenas petroqumicas
9/26
Options for Energy Based
Manufacturing Projects
7/30/2019 Cadenas petroqumicas
10/26
10
Global Chemical Products
Business
Consumer Products12%
Agri. Chem.5%
Pharmaceuticals26%
Inorganics4%Industrial Gases
2%
Bulk Petrochemicals& Organics
17%
Polymers, Syn.Rubber & Fibres
14%
Adhesivesand Sealants
1%
Coatings5%
Specialty Chemicals14%
Value of Current Global Chemical Production: > US$2 Trillion
Source:CMAI/ACC
7/30/2019 Cadenas petroqumicas
11/26
11
Natural Gas/Methane
Methanol
Ammonia
MTP/MTO
PP/PE
Urea
NitricAcid
UANAmmonium
Nitrate
Formaldehyde &UF Resin
Acetic Acid
Exp/Man
Exp/Man
Exp/Man
Chemicals
Exp/ManMelamine
Methane Processing
Exp/Man
7/30/2019 Cadenas petroqumicas
12/26
Melamine-based Manufacturing
Business Opportunities
Melamine Moulding Compounds
Dinnerware
Adhesives
Coatings
Laminates
Plasticizers
7/30/2019 Cadenas petroqumicas
13/26
Manufacturing Industries from Melamine
13
7/30/2019 Cadenas petroqumicas
14/26
Conceptual Estate Plan for
Downstream Melamine Industries
14
7/30/2019 Cadenas petroqumicas
15/26
Using Acetic Acid for Backward Integration of
Chemical and Manufacturing Industries in Trinidadand Tobago
Acetic AcidCarbonMonoxide
Vinyl AcetateMonomer (VAM)
Xylene
PVA
TextilesAdhesives
Bldg. MaterialCoatingsPaints
EVA/VAETextiles
AdhesivesBldg. Material
CoatingsPaints
Packaging
Acetic Anhydride
PurifiedTeraphthalicAcid (PTA)
Acetylsalicylic Acid(Aspirin)
Polyester/PETBottles
Containers
FilmInsulationFabric
ClothingTextiles
SalicylicAcid
Ethylene
15
EthyleneGlycol
7/30/2019 Cadenas petroqumicas
16/26
Derivative Chemicals and ManufacturingProducts from Ethylene
EthyleneBenzene,NaOH,SulphurTrioxide
Ethylene GlycolVinyl AcetateMonomer
HydrochloricAcid
TextilesClothingPaintsResins
PackagingCar Parts
Safety Glass
Polyester FibersClothing
Car SeatsPolyester Films
PackagingAntifreeze
Linear Alkyl BenzeneSulphonate
PolyvinylChloride
SurfactantsDetergents
Cleaning Agents
PipesInsulationFurnitureFittings
PackagingDoors
Windows
AceticAcid
Oxygen
16
7/30/2019 Cadenas petroqumicas
17/26
Derivative Chemicals and ManufacturingProducts from Propylene
PropyleneChlorine
Propylene OxidePropylene Glycol
Ammonia,Oxygen
Food ApplicationsPharmaceuticals
AntifreezeSolventPaintsResins
Coatings
PolyurethaneFumigant
Biological Apps.
Glycerol Acrylonitriles
Food ApplicationsPharmaceuticals
AntifreezeSolvent
DetergentsExplosives
Syn. FibersClothingCarpetsRubbers
PackagingElastomers
Water
HydrogenPeroxide
17
7/30/2019 Cadenas petroqumicas
18/26
18
Manufacturing Industries fromPolyethylene and Polypropylene
Polyethylene
Containers Pipes
Appliance Parts
Bottle Crates
Film Sheeting
Bags
Bowls
Polypropylene
Carpeting Brushes
Carpet Backing
Rope
Tape
Film Sheeting
Containers
Appliance Parts
Bottles & Caps
Cups
Toys
7/30/2019 Cadenas petroqumicas
19/26
19
Butane Processing
BUTANE
ISO-BUTANE
N-BUTANE
FOOD PRODUCTS
UNSATURATED
POLYESTER RESIN
OIL ADDITIVES
REFINERY
APPLICIATION
SPECIALITYCHEMICALS
MALEICANHYDRIDE
NaturalGas
7/30/2019 Cadenas petroqumicas
20/26
Manufacturing Products fromMaleic Anhydride
Unsaturated Polyester Resins used in fibre
glass, automotive parts, building panels, etc. Foods and Pharmaceuticals
Personal Care products hair spray, etc.
Domestic Products floor polish, adhesives, etc.
Water Treatment Chemicals
Detergents
Pesticides
Agricultural chemicals
20
7/30/2019 Cadenas petroqumicas
21/26
The Way Forward
7/30/2019 Cadenas petroqumicas
22/26
Engaging Local and Foreign Investors
Establish target projects via market
assessments and resource requirements forparticular projects
Engage in direct contact with establishedmanufacturers
Engage local petrochemical and chemicalindustries
Participate in local and foreign networkingevents
Engage local entrepreneurs and financiers
7/30/2019 Cadenas petroqumicas
23/26
Seek Partnerships
23
Mutually beneficial arrangement
Technical Capabilities and Experience
Knowledge Transfer
Sound Financial Position
Availability of Resources Market Access
Integration of Value-chain
7/30/2019 Cadenas petroqumicas
24/26
Investment in Trinidad andTobago
24
Strategic location for market access
Consistent and transparent Governance
Known and accepted tax regime
Known and accepted legal system
Well-trained and knowledgeable labourforce
Competitive cost structure for raw materials
and construction
Quick decision making process
7/30/2019 Cadenas petroqumicas
25/26
Conclusion
Developing smaller and diversified downstream
chemical based and manufacturing industries isintegral for optimizing natural gas resourcesalong the entire value chain.
Trinidad and Tobago is well positioned for thedevelopment of integrated manufacturingbased energy projects for production from theprimary energy product to the finishedmanufactured goods.
25
7/30/2019 Cadenas petroqumicas
26/26
Thank You
26