CIS PETROCHEMICALS

ANNIVERSARY CONFERENCE
CIS PETROCHEMICALS
CIS PETROCHEMICALS
5th Annual Conference
5-6 April 2017 • Moscow, Russia
www.cispetchem.com
Co-located with
CIS GAS MONETISATION
3rd Annual Conference • 4 April 2017 • Moscow, Russia
www.cisgaschem.com
Post-conference
Report 2016
MAJOR PETROCHEMICAL CONFERENCE IN THE CIS REGION
The CIS Petrochemicals Conference is the region’s only event of its kind solely dedicated to the
petrochemical industry in Russia, Belarus, Azerbaijan, Kazakhstan and other CIS countries uniting key
industry professionals from around the world.
For the past four years, the conference has sourced the best speakers from around the globe for an
open and direct discussion and in 2016 we addressed the core issues of the CIS petrochemical industry
in a new global landscape.
In 2016, officially supported by Russia’s largest petrochemical producer SIBUR, the conference has
demonstrated that, despite the high level of uncertainty about the future economic trend, oil and
gas majors do not abandon the previously announced projects of construction and modernisation of
petrochemical facilities.
The co-located CIS Gas Monetisation conference covered latest gas processing technologies and gas
monetisation opportunities in the CIS region including prospects of syngas, methanol, fertilizers and
gas-to-olefins technologies.
SHORT SUMMARTY OF 2016 CONFERENCE
4th
237
60
12
5
3
94 %
12
20
Edition of the conference
Attendees from 17 countries
Speakers and discussion leaders
Sessions
Round tables and panel discussions
Evening cocktail receptions
Attendees are satisfied with the conference
Official partners
Media-partners
“It was one of the best conferences I have participated in recent
years: everything starting from the level of participants, informative
presentations, and opportunities for business contacts”
VITALY PROTASOV, Director for Development, BALTIC GAS CHEMICAL COMPANY
“Great format and excellent platform for communication and
opinion exchange between industry’s representatives on the
most topical issues”
MAKSIM SAVCHENKO, General Director, Amur Gas Chemical Complex, SIBUR
“The range of participants and speakers is very well balanced, foreign
companies are just as active as Russian institutions”
VASILY RYBKIN, Director for Market Development, HONEYWELL
“Very interesting conference. Good occasion to exchange experiences and
perfect opportunity to approach key Russian players in the petrochemical
field.”
CARLO PESCHECHERA, Commercial Manager - Europe, TECHINT E&C
SPEAKERS AND DISCUSSION LEADERS 2016
IGOR SOGLAYEV
Advisor to President
ROSNEFT
Aleksey Kozlov
Deputy Chairman
of the Board
SIBUR
Farid Jafarov
General Director
SOCAR POLYMER
Sergey Komyshan
Member of the Board
Executive Director
SIBUR
Alexandr
Rappoport
Head of Construction
and Projects Control
Department
DENIS TANKOV
Deputy General Director
for Production
Sergey Merzlyakov
General Director
BASHKIRIAN CHEMISTRY
STAVROLEN
Mikhail
Sutyaginskiy
General Director
TITAN GROUP OF COMPANIES
AMUR GAS CHEMICAL
COMPLEX
Chairman of the Board
Maksim Savchenko
LUKOIL
Carlos Mondolfi
Dmitriy Bedarev
Project Manager Refining
and Petrochemical Joint
Projects Development
Department
Director, Petrochemical
and Refining
Modernization Projects
Department
ROSNEFT
BASHNEFT
Andrey Kirillov
Director for Development
NIPIGAZPERERABOTKA
Vitaly Protasov
Business Development
Director
BALTIC GAS CHEMICAL
COMPANY
Gernot Bruch
Vice President, Head of
Export and Project Finance
LINDE – ENGINEERING
DIVISION
ROMAN ZHIROV
Project Manager - Gas
Monetisation and
Efficiency Management
JSFC SISTEMA
A.T. KEARNEY
ROSNEFT
VLADISLAV BAZHENOV Mitch Hindman
Advisor to President
Anton Poriadine
Partner and Vice President
Vladimir Batkhin
Elena Golm
Denis Borisov
Managing Director,
Head of Oil and Gas
Director – Moscow Oil
and Gas Centre
SBERBANK
ERNST & YOUNG
Alex Lidback
Global Licensing
Manager – Synfuels
Director
Oil, Gas and Chemicals
Vice President –
Chemical Research
EXXONMOBIL RESEARCH &
ENGINEERING
STRATEGY PARTNERS GROUP
WOOD MACKENZIE
Denis Derevyankin
Managing Partner
PwC
Anna Semenova
Chief Finance Officer
BALTIC UREA PLANT
Aleksandr Petrov
Member of the Board Managing Director for
Finance and Economics
SIBUR
Danil Efremov
Petr Nikitin
Project Manager Business
Development
Petrochemical Plants
Deputy Head of
Engineering - Technical
Centre
LINDE ENGINEERING
GAZPROM PERERABOTKA
SOME OF THE PROJECTS THAT WE DISCUSSED IN 2016
ZapSibNeftekhim
Amur Gas Chemical Complex
ROSNEFT petrochemical projects
Baltic Urea Plant
STAVROLEN
Modernisation Project
Petrochemical projects in
Tatarstan
SOCAR petrochemical projects
Projects of TITAN
Group of Companies
What we heard in 2016?
Key issues facing the global
chemical industry
GLOBAL CHEMICAL M&A TRENDS
 Slower economic growth?
- Yes, but global chemical demand continues to grow from
a large base
 Lower crude oil prices have a negative impact
on the global chemical industry?
- Not necessarily as it has provided cost relief for various regions
 Low ethylene production costs translates to best
in class margins?
- Over time, yes
- More recently, no as there have been significant regional
ethylene price differences
Alex Lidback
Vice President – Chemical Research
WOOD MACKENZIE
 Can North America absorb all its new ethylene
and derivative capacity?
- No. Asia will be an important destination
Anton Poriadine
Partner and Vice President
A.T. KEARNEY
INTERNATIONAL APPROACH TO EPC
PROJECT MANAGEMENT
SOCAR Polymer: project snapshot
Russia and CIS countries share such a vast area that this can pose
several problems when executing EPC projects. Winter, limited
infrastructure, long distance from procurement centers, lack of
experienced engineering manpower and skilled workers is a
challenge for any EPC.
Location: Located at Sumgait Chemical Industrial Park with
major tax and duty exemptions granted for 7 years (profit,
property, VAT and other taxes)
Configuration: 120 KTA HDPE and 184 KTA PP Plants with U&O
Start-update: 2018 (PP) and 2018 (HDPE)
Farid Jafarov
General Director
SOCAR POLYMER
Acquirers
 Build internal capability for ongoing management of acquisition
pipeline and repeatable approaches for pre-merger activities
 Develop strong integration capabilities to drive rapid takeout
of synergies across operations, supply chain and top line
Divesting companies
 Apply “ruthless competitor” improvements in DivestCo
 Aggressively manage stranded cost and use divestiture as trigger
to drive broader cost improvements in RemainCo
 Tailor value proposition and deal options to buyer groups
Potential targets of acquisitions
 Create winning strategies and transparent business models
to gain prominent role in future industry consolidation
 Get ahead of investors by setting aggressive targets
for business performance
Feedstock supply: Ethylene, propylene and hydrogen feedstock
to be supplied by SOCAR on a deliver or pay basis
Some lessons learned that can be used:
 Maximize modular construction when is justified
Total project costs: $750m. (40% equity, 60% debt)
 Establish JV’s with local EPC companies
Borrowing Structure: non-recourse project finance + local
bonds
 Avoid reworks at site. Issue IFC drawings only when
Target Markets: 30% domestic, the rest to be exported to
Turkey, Europe, CIS and other countries
they are ready
Carlos Mondolfi
Project Manager Refining and Petrochemical
ROSNEFT
 Implement strong HSE policy, Inspection and QA/QC
What we heard in 2016?
Russian market of small-tonnage
chemistry
LARGE INVESTMENT PROJECTS OF BELARUSIAN
PETROCHEMICAL ENTERPRISES
 Grodno Azot
has a project for construction of a nitrogen complex
for nitrogen fertilizers production. The project consists of combined
production of ammonia, methanol, hydrogen and carbamide.
The project is estimated at about $1,2-1,8 bn.
 Over the last 5-7 years Russia has got the status of a net
importer of chemical end products
 In several cases, domestic primary processing products are later
refined overseas, and then comes back to the Russian market,
and, as a result, added value stays in other countries
 POLYMIR PLANT OF NAFTAN - construction of a new pyrolysis
and gas separation unit (ethylene-propylene unit).
Estimated project cost –500 mn. USD
 Russian market of small-tonnage chemistry is a low-gain one:
the margin is close to zero, whereas large-scale production
makes it to around 15%
 MOGILEVKHIMVOLOKNO has a planned investment project
for 2015-2019 to build a polyether products manufacturing unit.
Estimated investment required builds up to 200mn USD.
 Production of modern hi-tech competitive materials may give
boost to the economy and push the development of mechanical
engineering, electronics, construction, defense industry, etc.
Denis Borisov
Director – Moscow Oil and Gas Centre
ERNST & YOUNG
 SVETLOGORSKKHIMVOLOKNO has an open investment project
ANDREY DEREKH
Chairman of the Board
UNITER
involving organization of viscose staple fiber production with
a capacity of 80 thou tpa.
Import Substitution
in the Chemical Industry
Natural Gas in Petrochemicals
 Main issues which shall be solved to preserve positive dynamics
 “New” Methanol Derivatives provide strongest demand growth
 Strengthening of the ruble will also have a negative impact
 China with its strong „appetite“ for commodity chemicals
for the commodity Methanol
and realize the potential: access to funds and limited inflation
is the main driver for developments
on the investment performance of the project, as the equipment
purchased with the currency while debts are in rubles.
 Lack of natural gas in China is focusing on coal as feedstock
 Ensuring of a technological transfer — now, perhaps, is
 The «Old World» is cautiously looking at the application
the best time to use the “Chinese model” of technology transfer.
Only competent teams shall cooperate with technology
providers
of new technologies, clearly driven by economics
 Beside fuel applications, chemicals provide double digit growth
of Methanol
 Personnel deficiency becomes more noticeable when
Vladimir Batkhin
Director Oil, Gas and Chemicals
STRATEGY PARTNERS GROUP
implementing new projects. Training and increase
in productivity at the existing facilities shall reduce
the expected manpower shortage.
 Future technology developments may skip Methanol
MATTHIAS STEIN
Director - Global Chemicals
AIR LIQUIDE GLOBAL E&C
as an intermediate and convert syngas directly to chemicals!?
CIS GAS MONETISATION CONFERENCE IN 2016:
World Experience
in Gas Monetisation
One Step Production of Ethylene from Methane
World practice suggests that to make Natural Gas
attractive source of feedstock several conflicting factors
should be considered.
For the last three decades, chemical companies worldwide have been
working to develop a process to convert methane into ethylene. Siluria has
partnered with Linde to offer licenses to the ethylene industry worldwide.
Advantages of Natural Gas
 Efficient ethane based cracking
 Low local price for Natural Gas
 Ethane-rich Natural Gas
Disadvantages of Natural Gas
 High cost to separate ethane
 High local price of Natural Gas
 Low level of ethane component
DMITRIY GRECHKIN
Principal
OLIVER WYMAN
Key decision drivers:
 Local price of Natural Gas
 Synergies with other processes (e.g. LNG production)
 Scale of cracker (e.g. > 1mtpa of ethylene)
Methanol Production.
Main conclusions
 As a result of regulatory, macroeconomic and industry
factors gas prices for industry in Russia are becoming
one of the lowest in the world, which substantially
increases competitiveness of gas chemical projects.
 The window of opportunity will appear till 2020 at the
world methanol market. It is causes by fast consumption
growth, delays in projects in other countries and coming
back of growth phase of the price cycle.
 The maximum success of methanol projects in Russia
will be possible in the case of construction of worldscale capacities in a port area (e.g. Ust-Luga) with access
to natural gas with regulated price
VITALIY PROTASOV
Director for Development
BALTIC GAS CHEMICAL COMPANY
Florian Penner
Head of Product Management
LINDE AG - ENGINEERING DIVISION
Why is CIS Gas Monetisation conference of particular topicality right now?
Natural gas is unquestionably the energy resource of the 21st century. For many years, chemical processing of
natural gas and APG has been an important aspect of oil and gas industry development in Russia, Turkmenistan,
Azerbaijan, Uzbekistan and Kazakhstan. Nowadays, the low gas prices necessitated producing countries to start
looking at natural gas as a major feedstock for a number of chemicals. The main purpose of the conference is to
present and analyse the most economic and profitable ways of utilisation of natural gas by converting it into diverse
value-added products.
Some of the projects and technologies discussed at the conference:
• Ammonia and Derivatives Production
• Methane technology for synthesis gas, methanol, ammonia, motor fuels
• Synthetic Fuels Production (Fischer-Tropsch Process)
• Liquefied Gas Production
• Methanol Production
• Ensuring high outputs and flexibility of production by conversion of methanol to olefins technology (MTO)
• Development of new catalysts and catalytic systems
Partners and SPONSORS 2016
HOW TO GET EVEN MORE ROI FROM THE CONFERENCE?
Organiser
Get more out of the conference participation by taking one of our sponsorship opportunities.
Besides the generic “package” levels of Bronze to Platinum, we offer bespoke, tailored
features, which are designed around your needs, to only include the most important
aspects of the package for you, whether it is making a presentation at the conference or
arranging face-to-face meetings with senior representatives of the petrochemical plants.
Official Partner
Official support
SOME OF THE SPONSORSHIP EXAMPLES:
Welcome cocktail reception sponsor
Official Sponsors
Perfect opportunity to welcome high-level
guests of the conference in an informal
and inspirational environment with your
company acknowledged as the official host
with an opportunity to make a short welcome
speech to all attendees.
Participation with an exhibition stand
Exhibitors
General media-partner
Wow your existing and potential clients, build
your credibility and communicate your brand
message with an exhibition stand during the
conference. All social events including coffee
breaks and cocktail receptions take place in
the exhibition zone.
If you are interested in discussing sponsorship or exhibition opportunities, please
contact us:
Artem Kim / Conference Director / a.kim@globuc.com / +44 203 567 1347
AMONG 2016 ATTENDEES
OIL AND GAS /
PETROCHEMICAL COMPANIES
• ACRYL SALAVAT
• ARETI GROUP
• BALTIC GAS CHEMICAL COMPANY
• BALTIC UREA PLANT
• BASF
• BASHKIR SODA COMPANY
• BASHKIRIAN CHEMISTRY
• BASHNEFT
• GAZPROM NEFT
• GAZPROM NEFTEKHIM SALAVAT
• GAZPROM PERERABOTKA
• IRKUTSK OIL COMPANY
• KARPATNEFTEKHIM
• KAZANORGSINTEZ
• KUYBYSHEVAZOT
• LUKOIL
• METAFRAX
• NIZHNEKAMSKNEFTEKHIM
• PLASTICS
• ROSNEFT
• SIBMETAKHIM
• SIBUR
• SINOPEC
• SOCAR POLYMER
• STAVROLEN
• TAU NEFTEKHIM
• TITAN GROUP OF COMPANIES
• TOTAL EXPLORATION & PRODUCTION
• TOTAL REFINING & CHEMICALS
• UNITED CHEMICAL COMPANY
• ZARUBEZHNEFT
EPC / TECHNOLOGY / EQUIPMENT
• AIR LIQUIDE ENGINEERING & CONSTRUCTION
• AIR LIQUIDE GLOBAL E&C SOLUTIONS
• BORSIG GMBH
• CB&I
• DOW CHEMICAL
• EMERSON PROCESS MANAGEMENT
• ETIREX-CHROMALOX
• EXXONMOBIL
• FLUOR
• GE WATER & PROCESS TECHNOLOGIES
• GEA REFRIGERATION RUS
• GIPROGAZOOCHISTKA
• HALDOR TOPSOE
• HERMETIC PUMPEN
• HONEYWELL
• ICM ENGINEERING COMPANY
• ICT GROUP
• INSTITUTE OF REFINING AND PETROCHEMISTRY
OF BASHKORTOSTAN
• INTECSA INDUSTRIAL
• INTRATOOL
• INVISTA PERFORMANCE
• IZHORA PLANTS
• JGC CORPORATION
• JKX OIL & GAS
• KBR
• KBR TECHNOLOGY
• KOCH GLITSCH
• LEONI KERPEN
• LINDE - ENGINEERING DIVISION
• LUMMUS TECHNOLOGY
• MAMMOET
• MANOIR INDUSTRIES
• METNEWEN
• MILLIKEN EUROPE
• NALCO CHAMPION
• NIPIGAZPERERABOTKA
• NPO NEFTEKHIMPROEKT
• PALL EURASIA LLC
• POROCEL INDUSTRIES
• SHELL CHEMICALS
• SOJITZ CORPORATION
• STROYTRANSGAZ
• SULZER CHEMTECH
• SUNDYNE
• TECHNIP
• TOYO ENGINEERING CORPORATION
• TTT SYSTEMS
• UNITED METALLURGIC COMPANY
• UNIVATION TECHNOLOGIES
• UOP
• URALKHIMMASH
• VEB ENGINEERING
• VIS CONSTRUCTION GROUP
• VNIPINEFT
• YAMATA
• YOKOGAWA ELECTRIC CIS
• ZEPPELIN SYSTEMS
TECHNOLOGIES
MANAGEMENT CONSULTANCIES /
INVESTMENT BANKS / AGENCIES
• A.T. KEARNEY
• ERNST & YOUNG
• EULER HERMES
• FEDERAL ANTIMONOPOLY SERVICE OF RUSSIA
• HERBERT SMITH FREEHILLS
• IHS
• INFOTEK-CONSULT
• ING BANK
• JACOBS CONSULTANCY
• JSFC SISTEMA
• KHIM-KURIER
• OLIVER WYMAN OIL & GAS
• OXFORD INSTITUTE FOR ENERGY STUDIES
• POLYMER UPDATE
• PWC
• RUPEC
• SACE
• SAMRUK-KAZYNA
• SBERBANK
• STRATEGY PARTNERS GROUP
• TATNEFTEKHIMINVEST HOLDING
• THE BOSTON CONSULTING GROUP
• THOMSON REUTERS
• UNITER
• WOOD MACKENZIE
CIS PETROCHEMICALS
5th Annual Conference
4 - 6 April 2017 • Moscow, Russia
www.cispetchem.com
KEY TOPICS IN 2017
MAJOR PROJECTS OVERVIEW
Best practices of project management
Plans and strategies of the largest oil and gas companies in Russia and CIS.
Overview of ongoing and planned megaprojects in petrochemical sector.
Development programs, adjusted configurations, selected strategies and
project implementation schedules
Case studies and best international practices of project management of
the construction and modernization of petrochemical facilities. Practical
experience from the completed largest EPC projects. Strategies to meet owner’s
requirements when executing large construction projects.
High-quality analysis of the markets
Advanced petrochemical technologies
and solutions
Overview of global and regional markets and trends in the petrochemical sector.
The latest industry forecasts of possible development scenarios. Global trends in
the M&A market of the chemical industry.
New financing strategies in current economic and
geopolitical environment
Improving the mechanisms of project financing of major investment projects in
emerging capital markets of the CIS region. Minimizing the impact of potential
threats and effective risk management approaches to successful large-scale
project financing.
GOVERNMENT INVOLVEMENT
Topical issues of state regulation in the petrochemical industry. The need
for adjustments in state development strategies. Mechanisms to facilitate
localisation and co-operation with foreign companies in light of the import
substitution programs.
Analysis of the key technological challenges and innovative solutions for the
petrochemical industry. The best methods to improve the profitability and
efficiency of production in petrochemical plants.
Effective monetisation of gas resources
Overview of priority projects of high-added value chemical processing of natural
gas and APG. Key technologies of using natural gas as a competitive source of
olefins and motor fuel. Advanced technologies and projects for the production
of nitrogen fertilizers.
LOCAL CHALLENGES AND SOLUTIONS
IN PETROCHEMICAL SECTOR
Improving refined and petrochemical product quality and yields. The introduction
of new high value-added products. Development of small-tonnage production.
Increasing the margin of pyrolysis process with the tax maneuver adjustments.
Registration of participants
MARK YOUR CALENDAR
REGISTER BEFORE 30 September AND SAVE €449
Register before
30 September 2016
REGISTRATION OPTIONS
Full Price
CIS GAS MONETISATION + CIS PETROCHEMICALS
3 Days / 4-6 April 2017
€ 1,950
€ 2,399
CIS PETROCHEMICALS 2 Days / 5-6 April 2017
€ 1,549
€ 1,899
CIS GAS MONETISATION 1 Day / 4 April 2017
€ 750
€ 999
* You can also make payment in US dollars or Euros
THREE WAYS TO REGISTER
Fill out the registration form below and send via email: account@globuc.com
Register online: www.globuc.com/cispetrochemicals/register/
Fax the form: +44 845 154 2544
We are returning to Moscow for the fifth edition of our CIS Petrochemicals
conference on 4-6 April in 2017! The conference once again will be co-located
with CIS Gas Monetisation conference.
Please review options to get involved in next year’s event:
Register as a delegate
Take advantage of the early bird discount
and save 449 Euro by registering before 30 September 2016
Full Name:
Present a paper
The best way to attract the attention of the C-level audience representing
the entire petrochemical supply chain
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REGISTRATION DETAILS
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Follow us:
Artem Kim
Project Director
E: a.kim@globuc.com
T: +44 203 567 1347
www.cispetchem.com
CIS PETROCHEMICALS CONFERENCE IS NOT ONLY ABOUT PRESENTATIONS
Real business, live projects and client meetings
Interactive format: open discussions and round tables
Advanced petrochemical technologies and solutions exhibition
The annual gala cocktail reception and a sea of opportunities
for informal communication and networking