NEWS & ANALYSIS 06 | TECH FOCUS 20 | INSTRUMENTATION 23 | PROJECT REPORT 27 | DATA 30 | FACE TO FACE 32
NEWS, DATA AND ANALYSIS FOR THE REFINING AND PETROCHEMICAL INDUSTRIES
CLEAN THINKING
AUGUST 2009
AL SHAHEEN REFINERY
Middle East waste water market is set to hit $534 million by 2011
Qatar Petroleum’s 250,000 bpd refinery project uncovered
GLOBAL DOMINATION
EXCLUSIVE Henry Roth, CEO of US-Kuwaiti joint venture MEGlobal, says An ITP Business Publication
public - private partnerships can flourish in the Middle East
everything
EG MEGlobal’s sole focus is simple: the manufacture, distribution and sale of ethylene glycol (EG). We know the industry and market inside and out because it’s all we think about. And we’re not just another EG supplier. We’re a fully integrated EG producer with global supply channels, ensuring consistent and reliable delivery of your EG products. For us, reliability goes hand in hand with responsibility. We’ve built MEGlobal on a foundation of commitments to Environment, Health & Safety and Responsible Care® in everything we do.
And that’s everything EG
For more information visit www.MEGlobal.biz or email us at info@MEGlobal.biz ® Responsible Care is a registered trademark of the Canadian Chemical Producers’ Association
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In Print
August 2009
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CLEAN THINKING Mid East waste water booming on petro spend
PROJECT FOCUS Contax examines Al Shaheen Refinery in Qatar
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MEGLOBAL EXCLUSIVE Petrochemicals Middle East meets Henry Roth, CEO of MEGlobal
4 EDITOR’S LETTER
23 INSTRUMENTATION
Protectionism seems to be rearing its head again as anti dumping duties from India and China are targeted at Saudi Arabian firms.
As the regional downstrean sector continues to grow, PME investigates the instrumentation which is cutting operational costs.
6 REGIONAL NEWS
30 DOWNSTREAM DATA
Borouge awards a contract to Linde. Reaction against the ADD. TKSC delays start up of EBSM unit. Sipchem and Hanwha sets JV.
Petrochemicals Middle East brings you the most important downstream numbers from the major players in the region.
20 TECH FOCUS
32 FACE TO FACE
Petrochemicals Middle East sheds light on SCADA networks and the security related issues which have emerged in recent years.
Remy Valerino VP marketing at Schneider Electric, discusses the opportunities avaiable in the Middle East downstream markets.
Petrochemicals Middle East August 2009
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1 Samsung, SK and Daelim awarded Aramco JV contracts 2 SABIC heading for 78% drop in second quarter profits 3 Iranian petrochem plants to start trials in November 4 Dow confirms Tasnee joint venture at Jubail 5 ADH signs MoU for Abu Dhabi production plant EDITOR’S CHOICE
World NOC Congress 2009 ArabianOilandGas.com reporters and photographers made a comprehensive sweep of June’s biggest industry event, the World National Oil Company Congress held in Abu Dhabi. The event attracted CEO’s of major national oil companies to discuss the global outlook and challenges the energy business is facing. See which keynote speakers made the cut in our unique online gallery.
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Exclusive: Interview with Mohamed Meziane the CEO of Algerian energy giant Sonatrach
BREAKING NEWS AND VIEWS FIRST
YANSAB STARTS PRODUCTION
PUNJ WINS $247M SATORP DEAL
Saudi Yansab has announced the start up of its US$5.65bn petrochemical complex located in Yanbu.
Saudi Arabian contractor Dayim Punj Lloyd Construction Contracting has secured refinery deal.
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TEKFEN NETS QAPCO EPC DEAL
ROTARY BAGS $745M KSA CONTRACT
Turkish construction outfit Tekfen Construction said that it has been awarded a $165m EPC works.
Singaporean contractor Rotary Engineering Limited has been awarded a US$745m EPC contract.
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Petrochemicals Middle East August 2009
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4 Comment
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Chinese petrochemical producers are smarting from the effects of cheaply produced Saudi products flooding the market.
The protectionist game It floods markets with cheap goods, but now China’s hurting hina and India have started anti dumping investigations against Saudi petrochemical producers, as their domestic industries face ruin amidst the collapse of prices. Anti dumping duties have already been slapped on Saudi methanol and butanediol products exported to China, and on polypropylene exported to Indian market. The imposition of anti dumping duties on Saudi products raises the protectionism issue. It is hard to imagine that it still exists in today’s globalised market, but here we are facing it again. According to research done by the Brookings Institution, new antidumping investigations opened in 2008 was up 31% compared to 2007, while the number of anti-dumping measures actually applied increased by 19%. Developing countries dominated this trend on both sides; they initiated 73% of all new investigations and were the target of 78% of them. Saudi petrochemical products seem to be the target of producers in India and China. This can largely be attributed to the cost advantage Middle East producers enjoy compared to other producers around the globe. Indian and Chinese firms have been
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forced to shut down production units due to the dramatic decline in market prices. The sustained low price environment may be the final nail in their domestic petro industry’s coffin, so they are rightly fearful that firms with the cost advantages of those from the Middle East will drive them out of business. Saudi companies have been urged by the government to cooperate, and avoid exiting the Indian or the Chinese markets for good. The move from the Chinese and Indian authorities to impose duties will reignite the issue of Chinese and Indian products being dumped into the Middle East’s local market, especially the Chinese products. In a game of trade tit-for-tat, the Saudi Ministry of Commerce now intends to start investigations about the counterfeit Chinese products being dumped into the Kingdom. The Arabic proverb “He hits me and cried, then was quick to complain” can be applied to the Chinese government in this situation, as it has been dumping its cheap products on all sorts of markets the world over, not just in this region.
Abdelghani Henni, editor e-mail: abdelghani.henni@itp.com
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6 News
UAE cracker contract flows to Linde Borouge expansion will increase total capacity of the plant to 4.5 million tonnes by 2013 UAE’s Borouge has awarded a contract worth US$1.075 billion to Germany’s Linde Group to build another 1.5 million tonnes per year (t/y) ethane cracker at its production site in Ruwais, Abu Dhabi. “The awarding of this contract confirms Borouge’s commitment to the Borouge 3 project, a major expansion of our production facility in Ruwais, which will increase the total capacity of the plant to 4.5 million tonnes of polyolefins annually by the end of 2013,” said Abdulaziz Alhajri, CEO of Abu Dhabi Polymers Company (Borouge). “In addition to the ethane cracker, the expansion includes the construc-
tion of second generation Borstar polypropylene and polyethylene units, a low density polyethylene unit and a Butene unit, as well as related off-site utilities and marine facilities.” “Nowhere else in the world has a petrochemical company installed so much olefins capacity in such a short time as Borouge is currently doing in Abu Dhabi,” says Dr Aldo Belloni, member of the executive board of Linde AG. “We are proud to be the supplier of cutting edge ethylene technology for the Ruwais complex. Our relationship with ADNOC, enriched by our gases joint venture ‘Elixier‘, and Borealis is now stronger than ever.”
The contract will be executed on a “lump sum turnkey” basis whereby the construction work will be executed by the Consolidated Contractors Company (CCC). The new cracker, the third of its kind to be built by Linde group for Borouge in one decade, complements the 600 000 t/y and 1.5 million t/y ethane crackers, the latter of which is currently under construction as part of the plant’s expansion from 600 000 to 2 million t/y of polyolefins by mid-2010, and ultimately 4.5 million tonnes of polyolefins annually by 2013. Meanwhile, the company has awarded the three main contracts for the FEED stage of its
Borouge 3 expansion in Ruwais, Abu Dhabi to Italian Tecnimont (Maire Tecnimont Group). This includes the front-end engineering and design (FEED) of the multiple polyolefin units, the LDPE (low density polyethylene) unit and the utilities and offsite facilities. The contract is worth $22million, Tecnimont said. After completion of the new cracker, Borouge will have the world’s largest ethane cracker complex, setting a new benchmark for the industry. Borouge started production in 2002 producing 450 000 tonnes a year of polyethylene, the complex was expanded in 2005 to up production to 600 000 t/y.
Borouge will have the world’s largest ethane cracker complex when the project is complete in 2013. The new cracker will increase capacity at the plant to 4.5 million tonnes of polyolefins annually.
Petrochemicals Middle East August 2009
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News 7
Dumping laws anger SABIC
Briefs
Saudi petrochemical companies have started reactions to oppose the anti dumping duties (ADD) that China will impose on Saudi methanol imports. China may recommend an anti dumping duties on companies accused of dumping methanol into the Chinese market, where some media sources said that the dumping margins will range between 30% to 60% depending on the origin of the product. Saudi Basic industries Corporation (SABIC) said that it is cooperating with the Saudi commerce ministry to solve the issue amicably, as SABIC exports more than 70 000 metric tonnes per months to China, while the total production of SABIC is 6.2 million tonnes per year, representing 83% of the Kingdom’s total production. Saudi Sipchem, which exports almost 16% of its product to China, said that it is looking at other solutions and it may exit the Chinese market if China imposes ADD. The company also said that China has imposed ADD on butanediol products.
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KSA exports 70 000 tonnes of methanol to China each month
Anti dumping duties could severley hamper Saudi-Chinese petrochemicals trade.
Sipchem produces 75 000 mtpa of butanediol through its 53.92% subsidiary International Diol Company (IDC). Saudi Chemanol said that it is not affected by the China’s anti dumping duties as it uses the methanol it produces as a feedstock for its own chemical production within Saudi Arabia. Meanwhile, Saudi Advance
Polypropylene Company (ADPP), said in a filing to the Saudi market regulation authority that the company’s polypropylene exports to India represent between 2.5 to 3% of the total PP export. India has decided to impose 59.3% anti dumping duties on ADPP polypropylene exports. The Kingdom tries to solve the issue with the two countries.
TKSC delays the start up of EBSM unit The Kuwait Styrene Company (TKSC) has announced that the start up of its new Ethyl Benzene Styrene Monomer (EBSM) unit in the Shuaiba Industrial Area, Kuwait, has been delayed for an estimated four to eight weeks. The delay announcement came just days before the unit was scheduled to begin commercial operations, and has been blamed on a technical issue with an intermediate storage tank used in the production of styrene monomer product.
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The exact duration of the delay is currently unknown as the affected tank is in the process of undergoing a complete technical assessment test. TKSC and its marketing arm, the EQUATE Marketing Company (EMC), are in contact with TKSC’s customers and have developed plans to help mitigate the impact of the production shortfall due to the start delay. Meanwhile, Kuwait Paraxylene Production Company (KPPC) is expected to start up commer-
cial production during the third quarter of 2009. The company will produce 822 000 tonnes annually of paraxylene and 370 000 tonnes annually of benzene. This plant will be supplied with Ethylene from Olefins II and Benzene from the Aromatics complex. The Aromatics complex is being built by Kuwait Aromatics Company. TKOC is a joint venture between Dow, PIC, Boubyan Petrochemical and QPIC.
Abu Dhabi Holding (ADH) announced that it has signed a memorandum of understanding with a European technology partner to assess, in cooperation with Abu Dhabi Basic Industries Corporation (ADBIC), the establishment of a production plant for nonwoven fiber fabrics in Abu Dhabi Polymers Park. The company did not disclose the name of the prospective partner. Saudi Arabian Fertilizer Company (SAFCO) has posted US$128m profit in the second quarter 2009 compared to $317m for the same period 2008, a 60% decline due to the decrease in international prices. SAFCO is the biggest producer of urea and ammonia in the world. Saudi Basic Industries Corp (SABIC) said it would raise its petrochemicals output by about 12 million tonnes by the start of 2012 after it posted a 76% drop in second-quarter profit to $482.7million. Saudi Aramco Total Refining and Petrochemical Company (SATORP) has awarded 13 engineering, procurement and construction (EPC) contracts for the $9.6 bn Jubail export refinery. Saudi Dammam 7 Petrochemicals has secured propylene supplies for its acrylic acide and acrylates petrochemical complex at Jubail on the eastern coast of Saudi Arabia.
Petrochemicals Middle East August 2009
8 News
Sipchem and Hanwha build new JV New polyolefin project is estimated to cost US$1.1 billion and to go onstream by 2013 Saudi International Petrochemical Company (Sipchem) and Hanwha Chemical Corporation of South Korea have signed a joint venture agreement to establish a new petrochemical company in Al-Jubail Industrial City, Saudi Arabia that will be owned 75% by Sipchem and 25% by Hanwha Chemical. The new polymers venture comprises of a 200 000 metric tonnes per year Ethylene Vinyl Acetate (EVA) and a 125 000 metric tonnes per year of Polyvinyl products. The plants will be built on the Sipchem site in AlJubail with an estimated cost of US$1.1 billion (SR 4 billion) and is expected to start by the end of 2013. The feedstock for the projects are sourced from Saudi Aramco, Sabic and from other Sipchem affiliates. Sipchem has confirmed the signing of a technology licensing agreement with ExxonMobil Chemical Technology Licensing for the EVA project. Abdulaziz Al-Zamil, Sipchem’s chairman, stated that the plan to establish the polymers project is a step in the right direction of Sipchem’s endeavor to build a petrochemical project on an in-
ternational scale, representing its phase-III development. Sipchem currently has two affiliates producing methanol and butanediol and three affiliates that would start production of carbon monoxide, acetic acid and vinyl acetate monomer in the next two months. By the end of 2013, Sipchem’s total investment will reach approximately $3.4 billion
(13 billion Saudi Riyals) and total production will reach 2.5 million tonnes of various products, many of which are produced for the first time in the Middle East. Hanwha Chemical, an affiliate of the Hanwha Group, is the tenth largest commercial and petrochemical conglomerate in South Korea, has been actively expanding its presence in the global market.
“I strongly believe the EVA/ LDPE plant to be established in Saudi Arabia will be the stepping stone for Hanwha to become one of the global chemical leaders,” said Ki Joon Hong, president and CEO of Hanwha Chemical Corp. Meanwhile, Sipchem has posted a 92% decline in its second quarter profits banking $7.91m compared to $97.3m in the same period for 2008.
The new polymers venture will produce a 200 000 tonnes of Ethylene Vinyl Acetate (EVA) and a 125 000 tonnes of Polyvinyl products.
SABIC’s joint project with Sinopec receives approval Saudi Basic Industries Corporation (SABIC) announced that it has received an official approval from the Chinese National Development and Reform Commission (NDRC) to participate jointly with China Petroleum and Chemical Corporation (Sinopec) in the Tianjin petrochemical complex currently under construction in Tianjin, China.
The complex is expected to be completed in September 2009 with investments around US$3 billion. The complex’s overall production capacity is rated at approximately 3.2 million tons of various petrochemical products, including one million tonnes of ethylene and other downstream products such as polyethylenes, ethylene glycol, polypropylene
Petrochemicals Middle East August 2009
(PP), butadiene, phenol, and butene-1 product. China is the world’s largest petrochemical market based on high growth rates realised by the Chinese economy. services that strengthen SABIC’s goal. The Sino-Saudi cooperation in the downstream sector has increased in the last few years where Saudi Aramco signed
a memorandum with Chinese Sinopec to enhance cooperation between the two producers. Aramco and Sinopec are building two joint venture projects in southeast China the Fujian Refining and Petrochemical Company and Sinopec SenMei Company in partnership with America’s ExxonMobil. Sinopec aims to import 1.5m bbl/day from Aramco.
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10 Cover Story
GLOBAL
DOMINATION uch hype surrounded the illfated joint venture formally known as K-Dow last December. However, relatively little is known of the successful story which bridges the same challenges with ease. Dow Chemical Company and Kuwait Petrochemical Industries Company (PIC) have a successful joint venture company, MEGlobal, headquartered in Dubai’s airport freezone which confounds many of the criticisms levelled at such partnerships around seven months ago. “MEGlobal is a very interesting company because it brings together in many ways some contradictory trends. If you look at our owners, you have Kuwait Petrochemical Industries Company (PIC) which is the petrochemical arm of the state owned Kuwait Petroleum Company (KPC) and you have, on the other hand, the Dow Chemical Company which obviously is a symbolic as it can get for western global private company,” says Roth. “So having a free market bastion and a state company come together to form a joint venture company in number of fields, I think is quite remarkable, and it makes this business model an exceptional success story,” he adds.
M
These products are generally not very well known, but they are the most important building blocks for other products,” Roth explains. “The main usage of MEG is as a key raw material for the production of manmade fibers (such as the polyester industry), it is also a significant feedstock component for PET bottles, clothes and food and beverage packaging. Every aspect of modern life depends on ethylene glycol. The third most popular application of MEG is the use of anti
Henry Roth, president and CEO of US-Kuwaiti joint venture MEGlobal explains that market dynamics have concentrated the world’s petrochemical markets on companies with ties to the Middle East freeze which is not of big market in this region, but it is also used in cooling formulation systems and they are very important in this area of the world.” All the production facilities of the company are located outside the region, mainly in Canada. “MEGlobal has a very interesting business model, we own plants and our production facilities are located in Alberta in Canada,” says the CEO.
Production MEGlobal produces a range of intermediate products. “We produce one million metric tonnes of Mono Ethylene Glycol (MEG) and Diethyl Glycol and short Ethylene Glycol.
Petrochemicals Middle East August 2009
The majority of MEGlobal production facilities are located in the central western region of Canada.
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Cover Story 11
Henry Roth, president and CEO of MEGlobal. www.arabianoilandgas.com
Petrochemicals Middle East August 2009
12 Cover Story
MEGlobal is living, producing proof that a successful joint venture between a private US company and Kuwait’s state-run instruments is not only possible, but hugely profitable.
“Additionally we are the market maker of glycol that comes from other regional producers, such as EQUATE and Kuwait Olefins Company (TKOC) which are here in the Gulf. Also we can market the production of Dow Chemical Company in North
America (Gulf of Mexico production), and we are linked partly through ownership to OPTMO Petrochemical which is a joint venture company in Malaysia where we also market a large portion of the MEG to the key Asian markets,” Roth explains.
MEG prices since 2004 1,900 1,700
$ per tonne
1,500 1,300 1,100 900 700 500
2009
2008
2007
2006
2005
2004
300
SOURCE: www.argaam.com
Petrochemicals Middle East August 2009
Feedstock Ethane gas is the main feedstock used in MEGlobal plants. “The key feedstock for us is gas, normally ethane as it is the most economical feedstock,” says Roth. “But of course, any product which can be converted into ethylene would serve as a feedstock; it could be naphtha or heavy feed from a cracker,” Roth explains. The availability of the feedstock and its abundance remains the main challenge of the petrochemical producers due to the competition on gas from different industries. “The recent trend of the petrochemical industry has been to concentrate production in the Arabian Gulf states, and that is based on the availability of feedstock ethane gas,” says Roth. “However the Middle East states are fast developing economies and also fast developing consumer societies, so there is a heavy competition between different industry sectors to secure sufficient gas allocations,” he explains. Countries offering cheap feedstock prices are targets of MEGlobl. “The North African market is a good place for offering gas.
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14 Cover Story
Algeria and Libya have an abundance of natural gas. I guess wherever a petrochemical industry forms, glycol will be part of the product mix,” he says. The different origins of its owner represent a challenge of the company. “The challenge was to prove that the business model of different oriented parents could come and work together, that could create a company of different history and make it successful enterprise,” says Roth. “I believe we have given proof of that because we are one of the dominant producer suppliers in the world. Obviously, to operate profitably is always a challenge and specifically since the end of 2008 where the global recession and the global economic downturn, it is of course hard for us to remain profitable,” he reveals.
Prices Middle East producers are well known to have the lowest production costs in the world. The cost of MEG production is around $200 per tonne for companies like SABIC. Feedstock naturally determines the cost of production. “Whether you are sitting above the oil well (the hydrocarbon well) or whether you import part of your hydrocarbon molecules, one of the reason of the rapid expansion of the downstream
MEGlobal celebrates its fifth anniversary in July.
“I THINK A PRICE AROUND US$900$1000 PER TONNE IS A FAIR PRICE TO ENSURE CONVENIENT SUPPLY. AT THAT PRICE REINVESTMENT CRITERIA IS MET.”
The shutdown of one of the SABIC production units in 2007 led MEG prices to reach historic prices of $1700 per tonne.
Petrochemicals Middle East August 2009
sector in the region is the tremendous cost advantage.” Roth explains. MEG prices reached historical highs in 2007 and early 2008 due to the shut down of SABIC’s production unit. The shortage of supply pushed prices higher as SABIC represents a significant portion of MEG production worldwide. “We tried to optimise the conditions as much as we could but of course you can’t sell more than what you have, and we would have wished to take better opportunity with maximum utilisation of all our production capacity,” Roth says.“I think we did well in the most part of 2007 and 2008 and now we are obviously in the down cycle where prices have sunk deeply,” The current price of MEG seems to be unattractive for the company as the CEO says that he would be happy for a price between $900 and $1000 per tonne. “If I look at creating value in the downstream value chain, I think a price around $900$1000 per tonne is a fair price to ensure convenient supply,” Roth says. “This would be the price that makes me very comfortable every day, but unfortunately the reality of the market price today is completely different and we are at half that price level.” MEG prices have sunk deeply to arround $420per tonne in November 2008 and are currently trading at arround $650 per tonne. The collapse of the K-Dow joint venture has not hampered MEGlobal operations as both partners remain committed to their joint venture company. “There has certainly been no negative impact on MEGlobal in the run-up to, or since the stop to K-Dow’s formation. Both our parent companies have always and continue to co-operate well to enable business success for MEGlobal,” Roth says. The CEO is clear in his views as MEGobal remains a beacon of success between Kuwait and Dow, and he says it is beyond his remit to analyse that situation further. “It is really up to PIC and Dow to comment on their relationship and respective issues. From the view point of MEGlobal it is questionable whether the term “dispute” is even appropriate. Both our parents remain committed to enhance their cooperation,” he concludes.
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16 Market Watch
CLEAN THINKING The Middle East’s petrochemical industry will be demanding $534 million worth of waste water treatment equipment by 2011, up from $149 million since 2008. Petrochemicals Middle East meets the leading players servicing that growing need owhere is water a more precious commodity than here in the Middle East. Though much is frittered away on luxurious landscaped hotel gardens, it remains a cornerstone of the petrochemicals industry, and the downstream business is demanding evermore as bigger capacities come on stream. The development of techniques to treat used water and, re-use this vital commodity are filtering into the petrochemical sector as the industry does its best to conserve this critical resource, whilst simultaneously limiting its environmental impact. There is no escaping the fact that the petrochemical business is a massive consumer of water, and its presence is necessary through almost all of the different production processes. It is deployed as a medium in cooling systems, for production boiler feeds and for the more mundane, but necessary domestic purposes. “In the last few years, the petrochemical industry in the Middle East has attracted huge investments. In fact, the sector could be considered as a cornerstone of economic diversification in the Gulf Cooperation Council (GCC) countries,” says Vivek Gautam, senior research analyst at Frost & Sullivan’s environmental and building
N
Petrochemicals Middle East August 2009
“PETROCHEMICALS WASTEWATER REQUIRES A COMBINATION OF TREATMENT METHODS” technologies practice - South Asia and Middle East. “This steady and healthy flow of investments in petrochemical industry has ensured that there is a strong demand for water and wastewater treatment equipments from the industry,” he adds. Wastewater production strongly depends on the process configuration. For a refinery with cooling water recycle a production of approximate 3.5 – 5 cubic metres per tonne of processed crude can be taken. With refineries in the Middle East regularly processing upwards of 600 000 barrels of crude each day, that’s a lot of water. The uncontrolled discharge of refinery effluent is no longer possible, so the wastewater treatment requirement in the region is collosal.
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Market Watch 17
Methods Petrochemical and refinery wastewater treatment generally requires a combination of treatment methods to bring down the level of organics within acceptable limits before it can be discharged. A typical wastewater treatment scheme for a petrochemical plant or refinery is shown down in Figure 1 (below). “Our company is specialised in the design and manufacture of vacuum evaporators which allow the concentration of exhausted emulsified oils, the recycling of solvents, the recycling of glycols, the compartmentalisation of the organic components in the water, and the recovery of the water present,” explains Dr. Georgina Porro, export manager at C&G Depurazione Industriale.
Challenges Refinery and petrochemical sites represent some of the most challenging water treatment environments. High heat fluxes, difficult water conditions and intense pressures on capital and consumable budgets require water treatment programs to operate under maximum stress. The goal is to minimise operating costs and maximise energy efficiency, whilst preventing operational problems and maintaining production rates. “From our company’s point of view the volume of water the petrochemical industry can create is a problem. The use of our vacuum evaporators is possible when we talk about discharge up to about 45 m3/day, but the volumes involved when we talk about the petrochemical industry are generally much larger,” says Dr Porro.
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C&G Depurazione Industriale’s Small V-NT 3500 model which allows the treatment of 3500l/day of industrial wastewater.
Poor operational control and high heat fluxes in a process heat exchanger in one petrochemical plant presented serious operational challenges. The temperature difference across the exchanger was routinely 4-10˚C. Loss of exchanger efficiency due to calcium phosphate (CaPO4) deposition was persistent and chemical cleaning routine. The critical exchanger could not be removed from service for
cleaning without slowing production. Again, this impacted significantly the energy efficiency of the entire production process. The unit was required to purchase hydrogen it would ordinarily have made itself at a cost of US$2200/day during exchanger cleaning. The effluent discharge standards may vary from country to country but these are broadly defined by Pollution Prevention and Abatement Handbook, 1998 by the World
Fig1: Wastewater treatment scheme for a typical petrochemical unit Process Wastewater
Mechanical Bar/ Screening
Oil/ Water Separation
Equalization Reservoir
Biological Treatment
Biological Clarification
Sanitary Wastewater
Treated Effluent
Utility Wastewater Mechanical Bar/ Screening
Oil/ Water Separation
Flocculation
Clarification
To Disposal Oil Recovery
Tertiary Treatment
To Disposal Sludge
Petrochemicals Middle East August 2009
18 Market Watch
Bank.The applicable limits are detailed in Figure 2 (below). Looking ahead, the legislations are only expected to became even stricter.
Market A new report by Frost & Sullivan shows the total water and wastewater treatment equipment market for the petrochemicals industry in Europe and the Middle East was estimated at US$390 million in 2004. Spurred by growing demand from the Middle East and certain parts of Europe, the
Fig 2: Effluent discharge limits for petrochemical industry mg/l, except for pH Parameter
Vivek Gautam, senior research analyst, Frost & Sullivan.
Max Value
pH
6-9
BOD
30
COD
150
TSS
30
Oil & grease:
10
Cadmium
0.1
Chromium (Hexavalent)
0.1
Copper
0.5
Phenol
0.5
Benzene
0.05
Vinyl Chloride
0.05
Sulfide
1
Nitrogen (Total)
10
Source: Frost & Sullivan
Petrochemicals Middle East August 2009
overall market is forecast to be worth US$534 million by 2011. According to the Frost & Sullivan’s report: “Analysis of GCC Water and Wastewater Treatment Equipment Market” the GCC equipment market for Petrochemical industry is pegged at $149.0 million in the year 2008,” says Gautam. “Taking Iran also into consideration, the market size is estimated at $192 million,” he adds. “Demand of interest from the Middle East is increasing as environmental laws become much stricter regarding discharge of wastewater, and the controls become more frequent,” says Dr Porro.
“Demand is increasing through the necessity of resolving problems they have, although there is a reluctance to pay for the quality they demand,” she adds. Compliance with environment-friendly legislations such as the Integrated Pollution Prevention Control (IPPC) is set to drive market development in Europe (as well as the expanding petrochemicals base) is set to boost demand for water and wastewater treatment equipment in the Middle East. Uptake levels are also likely to be driven by the rising costs of sourcing water and disposing effluents and the public pressure to control related environmental and health hazards issues. Motivated by the stricter regulatory regimes governing effluent discharge and wastewater treatment, Europe currently accounts for nearly 50.3% of total market revenues. Enhanced demand in the newer markets of Benelux, Spain and Italy, together with the need for replacement and upgrades in more mature markets such as Germany, have also supported market growth in Europe. Driven by a fast expanding petrochemical industry and the associated rise in demand for water and wastewater treatment equipment, the Middle East is expected to overtake Europe as the larger regional revenue contributor to the industry over the long term, mainly in the GCC and Iran.
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20 Tech Focus: Network Security
BANISHING CYBER THREATS
Incoming Email Threat Assess?
Premchand Kurup, CEO of Paramount says when it comes to your control and data systems prevention is much better than cure upervisory control and data acquisition (SCADA) networks consist of computers and applications that perform key functions in the provision of essential services, whether they be utilities, such as electricity and water industrial, such as oil, gas and petrochemical refining. SCADA facilitates the collection and analysis of data and the control of equipment such as valves and pumps in remote locations. Evidently SCADA is a part of every nation’s critical infrastructure and requires protection 24 hours a day, seven days a week. Due to the scale and inherent risks involved in a petrochemical facility, cobined with the growth in cyber attacks worldwide, it is more important than ever that your SCADA systems are adequately defended. As I see it, there are three primary issues related to SCADA Security that have emerged in recent years:
S
new vulnerabilities for these operating systems are uncovered.
Open connections Publicly accessible network connections to SCADA networks is also a relatively new development for IT security in the region. SCADA systems have long been regarded as operating in a Secure Environment because of their closed network, which is not exposed to external entities. Also the communication protocols were proprietary and not commonly published. This notion of a “secure closed environment” for SCADA is no longer true. Remote operator Access and web based reporting have driven the requirement to interface with the internet. SCADA is thus accessible from the Public Network and therefore exposed to the same potential malicious threats as corporate networks.
Unsecured Data Transmission Technology Standardisation (open systems) Newer SCADA systems have begun to use operating systems such as windows or UNIX variants that are common place in corporate data networks. This makes SCADA systems susceptible to numerous attacks related to these open systems. SCADA systems also now face patch management challenges as
Petrochemicals Middle East August 2009
Most of the older SCADA systems will transmit both data and control commands in unencrypted clear text. This allows potential hackers to easily interpret and issue unauthorized commands to critical control equipment. Further, the lack of authentication in the overall SCADA architecture means that attackers with the
Premchand Kurup, CEO of Paramount.
“SCADA FACILITATES THE COLLECTION AND ANALYSIS OF DATA AND THE CONTROL OF EQUIPMENT SUCH AS VALVES AND PUMPS IN REMOTE LOCATIONS” www.arabianoilandgas.com
Tech Focus: Network Security 21
It is important to identify, assess the risk and establish the real necessity of each connection to the SCADA network, and this includes the whole package of internal LAN, external WAN, wireless connections, modem or dialup, and of course, internet connections. Next, disconnect unnecessary connections. Conduct penetration tests or vulnerability assessments of the remaining connections. Develop a robust protection strategy for all pathways to the SCADA.
Security architecture
physical access to the network (insider) can gain a foothold to launch a denial-of- service or man-in-the-middle-attack, both of which can lead to service disruption on a massive scale attack.
TOP TIPS - Securing SCADA Understand your security posture Knowing, and uinderstanding your company’s current security posture is absolutely vital. To enable you to understand where you stand with respect to security, it is advisable to conduct a threat assessment, vulnerability assessment and a thorough risk assessment. Of course, this should be done in-house, but independent analysis is critical to understanding areas of weakness. This is followed by a detailed risk mitigation plan. Typically risks can be mitigated by one or more of the following: • Changes to the security policy. • Implementation of controls (refer to: NERC –Critical Infrastructure Protection standards: CIP-002 to CIP-009) • Designing security architecture with Defense-in-depth in mind.
Apply “security architecture concepts” from corporate data networks: For long we have protected corporate data networks with multiple layer firewalling, intrusion detection/prevention, two-factor authentication, data encryption, SSL VPN and Security Incident & Event Management Systems. We need to do the same for SCADA Networks. It is essential to implement firewalls at each point of entry; configure firewall rules to prohibit access from and to the SCADA network and be as specific as possible for permitting approved connections. Strategically place IDSs at each entry point to alert security personnel of potential breaches to network security. A ‘SIEM’ tool that does collection, normalization and correlation of event/
incident logs will enable you to obtain a “single console” view of the SCADA Network Security. The challenge however lies in the fact that SCADA protocols are all different; people require new knowledge and skills to deliver on this “Protection Architecture”.
Disable what you can SCADA networks can be hardened by disabling unnecessary services. SCADA control servers built on commercial or open source operating systems can be exposed to attack through default network services. To the best extent possible, it is expedient to remove or disable unused services and network daemons to reduce the risk of direct attack. Additionally, work closely with SCADA vendors to identify secure configurations and to ensure that disabling some services does not cause downtime or service disruption.
Change management Establishing effective configuration, or change management processes will improve your SCADA security. A fundamental process needed to maintain a secure network is configuration management. Every system in the SCADA network must have a welltested and documented baseline. Changes to hardware or software can easily introduce
Focus on connections Modern SCADA networks will typically have many connections, some obvious, others not.
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SCADA networks can be hardened by disabling unnecessary services, says the CEO of of Paramount.
Petrochemicals Middle East August 2009
22 Tech Focus: Network Security
new vulnerabilities that undermine SCADA network security. Processes are required to evaluate system configurations against the baseline whenever changes occur.
Disaster recovery Establish a system back-ups and a disaster recovery plan. Having a recovery plan that allows for rapid recovery from an emergency (including a cyber attack) should be a crucial component to your SCADA security plan. System back ups are an essential part of any plan and allow rapid reconstruction of the network. Routinely exercise disaster recovery plans to ensure that they work and personnel are familiar with them.
Audit, audit, audit Internal and external auditing of SCADA network security should be carried out with ritualistic regularity. You cannot protect yourself from an external threat
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environment that is dynamic with internal security architecture and process that is static. You therefore need to conduct SCADA Network audits on a regular basis (once a quarter maybe) with external Auditors and an on-going basis with internal tools and auditors. Self Assessment processes that are normally a part of an effective cyber-security program include routine scanning for vulnerabilities, automated auditing of the network and self-assessment of individual and organisational readiness to cyberattack.
Unlimited Access Paramount is based in Dubai’s Internet City and has been a regional pioneer in bring SCADA security solutions to the Middle East. Read the full interview with Premchand Kurup, CEO of Paramount at www.ArabianOilandGas.com
Last word In today’s uncertain world, security stands beside profitability, productivity and performance as a key element for maintaining continuity of services from Critical National Infrastructure. It is no longer sufficient to catch a perpetrator during or after the committing of a malicious act; considerable time, effort and money needs to be spent to secure critical systems to prevent intrusion. The age old adage “Prevention is better than cure” rings in my ears when I think of SCADA Security. The threats are real and the time to act is NOW. Remember the slammer worm infiltration of a power plant in Ohio; the wireless attack on sewage SCADA system in Queensland, Australia – the next one could be much closer to home if you choose to ignore, instead of mitigating the risk. As security comes first, people need to be aware of the threats surrounding them.
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Petrochemicals Middle East August 2009
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Instrumentation 23
Ultra fine tuning
Understanding every measurement and process in your plant is the key to efficient operations. PME brings you the leading vendors of process control instrumentation
Intelligent instrumentation solutions can actually reduce maintenance bills and help reduce unplanned shutdowns.
Instrumentation can account for up to 5% of plant costs.
n an industry still widely regarded as conservative in its attitude to new technologies, it may be a surprise that innovative new developments in instrumentation used by the petrochemical industry is rapidly adopted by the region’s leading plant owners. Of course, running any downstream plant requires a wealth of instruments, and the nature of the goods processed means petrochemical industries place extremely high accuracy requirements on a wide variety of measurements and controls. Everything from level measurement, flow control, product quality monitoring, and industrial security and safety are being more rigorously applied in the industry. The key companents common to most downstream plants incorporate flow meters, pressure transmitters, level meters, temperature instruments, and analysis instruments. All of this instrumentation
during the very early phases of a project, through to core automation, fire and gas systems and manufacturing execution systems (MES), our instruments can truly fill almost every need of the petrochemical manufacturing process,” says Connie Evans, sales director, Honeywell, Middle East. Wireless technologies have became more widely instaled as it is safer and cost effective. “Many of our systems employ wireless technology that provide our customers with a cost effective, easily expandable network that allows access to data that was previously too costly to retrieve,” he adds.
I
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aims to maintain the stability of the plant and deliver improved operational performance as well as ensuring the safety of plant employees. “We manufacture and design an extensive range of reliable, highly accurate and extremely high quality products relating to the measurement and generation of temperature,” explains Chris Chant, business development manager at Okazaki Manufacturing Company. “We manufactur mineral insulated thermocouple and RTD cable which is the first building block of industrial temperature sensors,” he adds. The utilisation of instruments at any petrochemical plant typically begins with a consultancy study and engineering services, which are deployed from the earliest phases of the project to ensure the optimum performance of the instrument. “Beginning with consulting and engineering services
Middle East Market The rapidly growing industry in the Middle East has led the instrumentation industry to grow at the same pace. Demand on instrumentations from petrochemical producers in the Middle East has increased
Petrochemicals Middle East August 2009
24 Instrumentation
Challenges
Thanks to reduced installation costs, wireless automation and process control equipment has seen huge interest in the region.
Connie Evans, sales director, Honeywell Middle East.
in recent years as new plants and facilities spring up across the GCC. Petrochemical companies in the region have been early adopters of the latest technologies, keen to push operational advantages on top of their obvious feedstock cost advantages. Keeping unplanned shutdowns to an absolute minumum has been an integral driver of the appetite for cutting edge instrumentation. “Significantly, this sector is showing a big interest in implementing an operation readiness philosophy at very early stages of projects to ensure plant startup time is significantly reduced and maximum
Petrochemicals Middle East August 2009
production efficiency is reached as soon as possible, thereby maximising the return of investment for the project,” says Mansour Belhadj, regional advanced solutions leader, Honeywell, Middle East. The cost of equipping a petrochemical plant with instruments can vary from one company to another depending on the kind of the plant and the product. “A large petrochemical complex can compromise a number of plants and can cost anything up to US$20bn. The automation spend can be 2-5% of the total cost,” explains Belhadj. The installation and commissioning cost of instruments is a crucial and significant part of the total project cost. “The scale of the outlay also varies on a project to project basis, dependant on how many instruments are required, installation costs and commissioning costs,” says Chant. Companies in the region seem willing to pay for getting the best instrumentation and the swift installation, one of the reasons wireless process control system vendors have seen such interest. “It may seem like a lot of money, but that can’t be looked at in isolation. The typical return on investment for the most advanced solutions applications is less than six months,” explains Belhadj.
The petrochemicals industry supply chain is becoming increasingly complex and represents a highly competitive environment. The industry has witnessed a rapid expansion in the last few years but currently is facing a downturn cycle coupled with the liquidity crisis. Many big ticket projects have already started production, or will start soon, which will mean a decline in demand. This decline will represent a challenge for instruments producers, at least until maintenance programmes kick in to pick up the slack. “Reduced global demand has affected this industry just like any other,” says Pankaj Chadha, marketing director, Emerson Process Management, Middle East and Africa. “Obviously the petrochemical prices have also been hit in the current times. However, we will get out of this economic situation and fundamentally the global demand for refined petrochemical goods will go up,” he adds. As is often the case, even the gloomiest economic cloud has a silver lining. One positive side effect has been falling construction costs for projects, which has allowed some petrochemical companies to unfreeze projects which were on hold. “The current climate has presented our customers with an opportunity to reduce costs on most projects due to the increasingly competitive market conditions for suppliers and falling commodity prices. Some project budgets have experienced decreases of 20-25% compared to the initial cost,” says Evans.
Safety The safety of these instruments is critical, as any damage could impact the operation of the plant. As such, instruments are subject to rigorous safety tests and normally have to comply to international standards and regulations set by international agencies. “Safety related systems are typically required to be certified by third party agencies,” says Evans. “Today, the most common certification required is TUV certification. Of course, other industry codes and standards apply according to applications such as NFPA for boilers,” he adds.
www.arabianoilandgas.com
Instrumentation 25
The petrochemicals industry supply chain is becoming an increasingly complex and highly competitive environment.
Pankaj Chadha, marketing director, Emerson.
The American Petroleum Institute (API) standards are also used for the instrumentation. “All our equipment is suitable for hazardous area installations and we can supply equipments as per plant requirements,” says Chadha. “In many cases, especially in this region, there is a need for specialty materials suitable for the corrosive applications,” he adds.
interest in recent months particularly within the specific field of fired heater controls in the refinery,” explains Chant. “The fan tip tube skin thermocouple offers the most accurate measurement solution, combined with easy installation, and with the introduction of new sheath materials, extended life in service,” he adds. Innovative technology will continue to improve plant performance and ultimately profitability. As long as there is a need to initmately understand the inner workings of a plant, the leading instrumentation providers will be there to anticipate and service that need. In a buyers market, now may well be the time to upgrade.
Innovation The desire of running petrochemical plants effectively and continuously without unplanned shutdown has led petrochemical companies to look for the best and the latest instrumentation, a call that has been
www.arabianoilandgas.com
answered by the instrumentation producers. Multi-million dollar research and development programs have kept the kit reaching market ahead of the curve. “Through R&D programs and continuous business acquisitions, Honeywell has developed an incomparable portfolio of integrated solutions to help the petrochemicals industry establish business best practices,” says Belhadj. To maintain this scenario, producers of instrumentation work closely with major clients to anticipate future demands. “Product development by Okazaki, with the assistance of major companies within the refinery sector has seen a great deal of
Petrochemicals Middle East August 2009
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Project Report 27
Contax Project Snapshot:
Al Shaheen Refinery Kathleen Bury, Contax project manager, provides an insight into Qatar Petroleum’s 250 000 barrels per day capacity oil refinery project at Mesaieed GCC Context
KATHLEEN BURY,
PROJECT MANAGER, CONTAX With over eight years of experience across market intelligence, consultancy, strategy and implementation, Kathleen is a part of the Growth Consulting practice at Contax. She has worked with FTSE 100 and other international companies in the United Kingdom, Middle East and Africa. Kathleen has a strong background in the energy, utilities and construction sectors.
www.arabianoilandgas.com
The planned GCC energy Capex landscape for 2008 to 2010 continues to show signs of growth over the period 2005 - 2007, with c.$370bn worth of investments on the table. The dominant sectors continue to include the refining and petrochemical sectors, with c.$84bn and c.$60bn respectively already planned for award by the end of 2010. Qatar supports a project Capex position of c.10% worth of the investment planned within the GCC energy space. Following Contax’s analysis of project postponements from 2007 and within the first two quarters of 2009, it is evident that the market is continuing to see a considerable amount of award and execution schedule slippages. Nevertheless, given the GCC’s commitment to solidifying its global ‘petrochemical and refining hub’ position, it is anticipated that a number of key projects will be realised to help bridge the global demand and supply gap. A major project that is expected to help Qatar achieve this goal is the Al Shaheen Refinery project.
Following a significant delay in the project schedule, the planned multi billion dollar refinery project is now expected to begin operations in Q1 2015. Utilising technology from Axens IFP Group Technologies, Black & Veatch, Haldor Topsoe, MECS, Stratco Dupont and UOP, the refinery will have a capacity of 250 000b/d and produce a range of products including distillates, bitumen, green coke, gasoline, jet fuel diesel for the local and export markets. Despite the initial project schedule delay, which is believed to be a result of the project owners desire to take advantage of perceived lower critical input costs and drive down EPC bid prices as well as project financing concerns, a series of meetings were held in June with the project consultants, Beicip Franlab and Jacobs Engineering, in Paris to discuss the potential structure of the refinery. There appears to be strong support from the Qatar government to push ahead with the project as the development of the Al Shaheen Refinery looks set to satisfy a number of key strategic objectives. GCC energy project capex split by sector 2009-2011
Background and Strategic Importance With growth of about 14 per cent a year, Qatar is one of the world’s fastest growing economies. It has the highest per capita GDP in the Middle East. Qatar Petroleum is planning to solely develop a grassroots refinery within the Mesaieed Industrial Area to process sour, heavy marine crude feedstock that will be sourced from Block 5 of the offshore Al Shaheen field currently being developed by Maersk Oil Qatar.
$370 bn
2009 - 2011 Refining
Petrochemicals
Other energy sectors
Source: Contax Market Intelligence, July 2009
Petrochemicals Middle East August 2009
28 Project Report
Key Objectives 1. The project will refine c.50% of the crude/condensate capacity being produced from the Al Shaheen field and is being built to serve the current low sulphur specifications by generating about 1000tpd of by product sulphur. 2. The project will utilise special technology conversion units to upgrade the bottom-of-barrel products to increase the production of marketable fuel distillates and expand Qatar’s reach into the refined product market. 3. The project will maximise the production of petrochemical feedstock in addition to the fuel output. 4. To support Qatar’s drive to export refined products rather than crude, the Al Shaheen Refinery project is scheduled to be the third refinery after the Nodco Refinery in Mesaieed and Laffan Condensate Refinery in Ras Laffan.
Scope of Work The Al Shaheen Refinery project consists of two packages: • Process Package • Offsites and Utilities The packages themselves will be developed in two phases:
Project activity
Proposed timeline/status
Commencement of FEED
Q2 2007
Completion of FEED
Q3 2008
EPC ITB Issue
Q3 2010
EPC Award
Q1 2011
Completion Date
Q1 2015
Source: MEED Projects - CMI, July 2009
Key project details: Project Name:
Al Shaheen Refinery
Project Owners:
Qatar Petroleum – 100%
Status:
FEED
Location:
Mesaieed, Qatar
Feedstock:
Heavy marine crude
Contractors
FEED: Technip PMS: Technip Consultants: Beicip Franlab / Jacobs Engineering Group
EPC Award Date:
Q1 2011
Completion Date:
Q1 2015
Source: MEED Projects - CMI, July 2009
Petrochemicals Middle East August 2009
The project will eventually refine around 50% of the crude/condensate produced from the offshore Al Shaheen oil field.
Phase one: Crude distillation unit, hydrocracker facility and offsites and utilities infrastructure. Phase two: Fluid catalytic cracker and expansion of existing offsite and utility units
Challenges Current economic and market dynamics are questioning the validity and schedules of many of the energy projects within the GCC, especially petrochemical projects. With the recession in buyer economies and project financing issues; key projects are being postponed and cancelled on a weekly basis. Contax’s latest report ‘Impact of the Financial Situation on GCC Energy Project Workload’ looks to provide clarity around which projects have a 70%, between 40-70% and less than 40% probability of proceeding within the current economic climate and thus which sectors and countries will experience the greatest impact. Despite discussions taking place between QP and the project consultants to define the structure of the refinery, the availability of
project financing within the market still remains tight. Coupled with this, project owners continue to hold out for further price reductions, pushing project award dates towards mid/end 2010 and 2011. As a result, Contax believes that the Al Shaheen Refinery has a medium probability of going ahead in the short – medium term.
Contax Opinion: Likelihood of Project Realisation Low Medium High Contax offers a unique portfolio of fact based market and project reports which provide in-depth project information and market analysis to help you make informed decisions. For more information and access to these reports, please contact the following address marketing@contaxgroup.com Some data within this article has been sourced from MEED Projects – CMI (www.meedprojects-cmi.com)
www.arabianoilandgas.com
30 Number XXX cruncher
Downstream Data Regional petrochemical companies saw share prices decline in July
LISTED COMPANIES IN THE SAUDI STOCK MARKET Price on June 19th (US$ per share)
Price on July 19th (US$ per share)
Change %
Saudi Basic Industries Corporation (SABIC)
17.75
17.20
-3.20
Saudi Arabian Fertilizer Company (SAFCO)
30.10
30.40
0.99
Saudi Kayan Petrochemical Company (Kayan)
3.61
3.76
3.99
Rabigh Refining and Petrochemical Company (Petrorabigh)
7.82
8.54
8.43
Yanbu National Petrochemical Company (YANSAB)
7.23
7.50
3.60
National Industialization Company (TASNEE)
5.09
5.09
0.00
Saudi Industrial Investment Group (SIIG)
4.71
4.78
1.46
Saudi International Petrochemical Company (SIPCHEM)
5.18
4.75
-9.05
Sahara Petrochemical Company (SAHARA)
5.68
5.41
-4.99
Advanced polypropylene Company (Advanced)
6.94
7.01
1.00
Nama Chemicals Group (NAMA)
3.12
3.00
-3.90
Alujain Corporation (ALUJAIN)
5.68
5.33
-6.57
Methanol Chemicals Company (CHEMANOL)
4.23
4.09
-3.55
LISTED COMPANIES IN THE KUWAITI STOCK MARKET Price on June 19th (US$ per share)
Price on July 19th (US$ per share)
Change %
Qurain Petrochemical Industries Company (AL-QURAIN)
0.7
0.59
-18.64
Boubyan Petrochemical Company (BOUBYAN)
1.74
1.46
-19.18
Ikarus Petroleum Industries (IKARUS)
0.438
0.4
-9.50
LISTED COMPANIES IN THE QATARI STOCK MARKET Price on June 19th (US$ per share) Industries Qatar
29.8
Price on July 19th (US$ per share) 28.99
Change % -2.79
LISTED COMPANIES IN THE OMANI STOCK MARKET Price on June 19th (US$ per share) Oman Chlorine S.A.O.G. (CHLORINE)
1.01
Price on July 19th (US$ per share) 0.9
Change % -12.22
LISTED COMPANIES IN THE EGYPTIAN STOCK MARKET Price on June 19th (US$ per share)
Price on July 19th (US$ per share)
Change %
Abu qir Fertilizers
33.02
33.99
2.85
Sidi Kerir Petrochemicals Company
1.85
2
7.50
Petrochemicals East March Petrochemicals Middle Middle East August2009 2009
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Number cruncher XXXX 31
BENZENE (FOB FAR EAST)
ETHYLENE (FOB FAR EAST)
US$/tonne
US$/tonne
7/1/09
4/2/09 18/2/09
4/3/09
1/4/09
27/5/09
23/6/09
7/1/09
20/7/09
4/2/09 18/2/09
4/3/09
1/4/09
CFR: Cost and Freight
PPF (CFR FAR EAST)
7/1/09
4/2/09 18/2/09
4/3/09
1/4/09
27/5/09
23/6/09
PROPYLENE (FOB FAR EAST)
7/1/09
4/2/09 18/2/09
4/3/09
1/4/09
27/5/09
23/6/09
20/7/09
PVC (CFR FAR EAST)
NAPTHA
(CRF FAR EAST)
US$/tonne
US$/tonne
20/7/09
7/1/09
4/2/09 18/2/09
4/3/09
1/4/09
27/5/09
23/6/09
20/7/09
7/1/09
4/2/09 18/2/09
HDPE (CFR FAR EAST)
1/4/09
27/5/09
23/6/09
20/7/09
27/5/09
23/6/09
20/7/09
US$/tonne
7/1/09
4/3/09
MEG
US$/tonne
20/7/09
23/6/09
FOB: Freight On Board
US$/tonne
US$/tonne
27/5/09
4/2/09 18/2/09
4/3/09
1/4/09
27/5/09
23/6/09
20/7/09
7/1/09
4/2/09 18/2/09
4/3/09
1/4/09
(HDPE Injection)
Source: www.argaam.com
www.arabianoilandgas.com www.constructionweekonline.com
PetrochemicalsMiddle MiddleEast EastAugust March 2009 Petrochemicals
32 Face to Face
ENERGY REVIEW Remy Valerino, VP marketing at Schneider Electric, discusses the opportunities available in the region and what new technologies will be coming to market in 2009 What is Schneider’s global presence? We are multinational company. Our operations are primarily in the field of electrical energy and process control. Schneider Electric has over 130 offices worldwide, so we are present in almost every country. Our main fields of application incorporate everything from residential and industrial building automation, right through to energy and infrastructure data centres. In the Middle East we cover all those market sectors and are active in all the GCC member countries. Here in Abu Dhabi oil and gas naturally dominates, but we are active in Qatar too, and have a very strong presence in the construction and building sectors in Dubai.
Are you expecting to grow in the Middle East? We continue to monitor market developments and we try to introduce our innovative solutions to take advantage of the energy efficiency opportunities – which has a big focus in the region. Our plans are generally in line with the thinking of the region by doing more with less cost, and we can help companies achieve this through intelligent energy management, and be much more aware of their environmental impact, and help reduce that. A good example is what we are doing with the Masdar in Abu Dhabi, where we are engaged in providing building management solutions.
Petrochemicals Middle East August 2009
What are the challenges facing you in the region? The challenges are very much the same with what we expecting in any part of the world in this current downturn. We have many constraints in terms of liquidity in the market place, and keeping projects moving at a reasonable pace. Another area where we have to put a lot of efforts is human resources purely in the Middle East. People tend to come and go more here, so
“WE WANT TO HELP CLIENTS IN THE DESIGN AND DEVELOPMENT OF MANAGEMENT FOR THEIR ENERGY BUSINESS.” maintaining high level and high quality people is very important to us, and that covers people retention activities, training and development. People have become a primary focus at this time for our company.
In what way have your core operations been impacted? We try to anticipate where our services would be most beneficial to the society where we operating. In the oil and gas business and petrochemical, we closely
REMY VALERINO VP MARKETING SCHNEIDER ELECTRIC
follow the market in Saudi Arabia, Kuwait, Qatar and Abu Dhabi. We continue to bring the latest technologies for safety and security systems to all these markets. We are looking at bringing video surveillance systems to the region for perimeter security, as well as asset safety and security solutions as well. We are also looking for more business services, such as increasing the life expectancy of installed equipment. We aim to be a key player among the energy management in the oil and gas, and increasingly the petrochemical sector, around the world. Overall, we want to help clients in the design and the development of management for their energy business.
Is there anything new you’ll be bringing to the Gulf? Internationally we have a strong focus on the safety and security business as well as in process automation. I believe we can bring new technologies and expertise to the oil and gas and wider downstream industries. Schneider Electric is the provider of the security systems for the nuclear industry in France, so we have a deep knowledge in terms of security and information. As you know, security is a principal concern of the oil and gas related industries, because if you stop your operation you face huge losses, and we can help avoid that through the utlisation of our knowldge, experience and systems.
www.arabianoilandgas.com
Pre-Engineered Steel Buildings
Structural Steel
Process Equipment
Towers & Galvanizing
Low-Rise buildings for all applications from warehousing to multi-storey shopping complexes and aircraft hangars.
Steel Structures and plate works for power, oil & gas, petrochemical and commercial applications including high-rise buildings.
Steel and alloy process equipment including pressure vessels, heat-exchangers, storage tanks, reactor columns and others.
Towers for power transmission, radio and telecommunication and lattice steel construction for substations.