Butadiene in Europe

Butadiene in Europe
by Bernard Bekaert, Chairman & CEO
2nd ICIS Butadiene & Derivatives
Conference
New York, 10 December 2014
The Butadiene Roller Coaster
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Content
1.
2.
3.
4.
5.
6.
Specialized Logistics & Trading
New Extraction Capacities
European Cracker Landscape
Supply/ Demand
Impact on Global Trade Flows
Closing Remarks
ICIS BD NY DEC 2014
EUROPEAN BUTADIENE MARKET
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1.1 Specialized Logistics & Trading
•
•
•
•
C4U Trade is a logistic service provider for the petchem industry with a
specific expertise in handling liquefied gases, such as C4 Olefins.
We focus on creating and sharing recurrent value.
Founded in 2010 in Belgium and since 2014 part of a global platform
Facilitating between producers and consumers.
C4U
TRADE
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1.2 Structured for Global Growth
C4U TRADE INTERNATIONAL, AG
ZUG, SWITZERLAND (2013)
C4U TRADE USA
HOUSTON, TX (2011)
ICIS BD NY DEC 2014
C4U TRADE EUROPE
LEUVEN, BE (2010)
C4 MIDDLE EAST
DUBAI, UAE (2014)
EUROPEAN BUTADIENE MARKET
C4U TRADE ASIA
SINGAPORE (2015)
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2.1 New Butadiene
Extraction in Europe
• 2 expansions, 4 new plants, 1 closure
• Total of 28 extraction sites
• Extraction Capacity +500 KT:
– 2012: 2.4 million MT
– 2015: 2.9 million MT
• nameplate capacity for derivatives 2.2 million
MT
• Crude C4 availability? Net new molecules?
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EUROPEAN BUTADIENE MARKET
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2.2 New Butadiene
Capacities
Company
LyondellBasell
OMV
OMV
BASF
EVONIK
MOL
Ineos
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Location
Capacity (KT) Timing
Wesseling
40
Q2 2013
Schwechat
25
Q2 2014
Burghausen
80
Q3 2015
Antwerp
155
Q3 2014
Antwerp
100
Q2 2015
Tiszaujvaros (TVK)
135
Q2 2015
Grangemouth
-70
Q1 2015
465
EUROPEAN BUTADIENE MARKET
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3.1 EU/ MED Cracker Landscape
crackers by feedstock
naphtha
26
naphtha+LPG
12
ethane
6
44
Nameplate capacities
(million MT)
Ethylene
Crude C4
Butadiene
Extraction
Derivatives
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8
3,2
2,9
2,2
crackers by size
100-500
21
500-1000
16
>1000
8
45
90%
80%
70%
24,3
7,2
2,88
2,61
1,98
21,6
6,4
2,56
2,32
1,76
18,9
5,6
2,24
2,03
1,54
EUROPEAN BUTADIENE MARKET
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4.1 Global Supply/ Demand
2013 (KT)
North America
South America
West Europe
Central Europe
Middle East
India
North East Asia
South East Asia
ICIS BD NY DEC 2014
BD
BD
Domestic
Extraction
Production Demand
Capacity
2.387
1.544
1.791
460
345
296
2.406
2.013
1.809
278
182
184
382
283
70
366
240
185
6.189
4.955
5.221
570
436
379
13.038
9.998
9.935
EUROPEAN BUTADIENE MARKET
Balance
-247
49
204
-2
213
55
-266
57
63
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5. Effect on Global BD Trade Flows
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5. Closing Remarks
• Butadiene is a co-product of Ethylene production.
• Historical length in Europe will increase.
• Past volatility was due to limited liquidity and a
lack of efficient logistics. Both may be gone.
• Crude C4 only short if cracker operating rates drop
dramatically or if feedstocks shift further or if any
other major change kicks in.
• Less merchant Crude C4 will be available.
• By 2018-2020 US and China self-sufficient?
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EUROPEAN BUTADIENE MARKET
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Thank you for your attention.
...any questions?
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