Chemicals & LPG market update Steady growth path continues globally Royal Vopak Analyst Day 2017 Ismail Mahmud, Global Chemicals Director 12 December 2017
Vopaks well-balanced global portfolio Oil Chemical Industrial Vegoils Gas products products terminals & biofuels products Typical contract 0-5 years 0-5 years 5-20 years 0-3 years 10-20 years duration per product / terminal…
Growth in all three end markets Looking forward, five mega trends will impact the end markets that Vopak serves via its four strategic terminal types Trends Urbanization Disruptive Changing Geopolitical Sustainability technologies…
Urbanization example of China From the five megatrends, urbanization has the biggest influence on the Manufacturing sector China Urbanization rate will grow from 54% today to 67% in 2030 Urbanization in China is going fast 100% Number…
Manufacturing sector will double in the next 20 years Construction is the largest segment of the USD 22 trillion manufacturing sector Segment Growth Key sub- Segment Growth Key sub- Manufacturing sector 2015-2035 segments 2015-2035…
Asia dominates growth of manufacturing Largest increase in chemical demand is expected in Asia driven by the need for plastics Regions Materials Above GDP growth is foreseen in emerging regions, Plastics and Synthetic Fibers are…
Increasing chemical trade flows Regional imbalances of chemicals will continue to increase Greater Europe FSU North America -8.5 3.9 22.5 -13.6 0.8 0.9 -7.9 2.2 3.0 10.9 Middle East -16.5 -10.5 -1.4 7.4 65.6 2016 2025 North East…
Ethylene production increase The world needs another 50 crackers in the next two decades if global Ethylene demand is to be met Global Ethylene consumption by region Global Ethylene production capacity m tons m tons 50 8 2 3 250 61…
Developments of industrial complexes New complexes are expected to arise in feedstock advantaged regions (US & ME) or close to growing end markets (Asia) For illustrative purposes Locations with feedstock advantage Locations close…
Leading independent operator of Industrial Terminals Vopak has more than 40 years of experience in industrial terminalling Tarragona Engro Kertih Lingang (Spain) (Pakistan) (Malaysia) (China) Teesside Thai Tank Chemiehaven Al Jubail…
Factors of successful development of industrial terminals Lead of the development: A major chemicals producer or a regulator As markets opened, more cooperation has been seen by IOCs that bring in technical knowhow Governments/port…
Key messages Steady growth path continues globally Chemical demand in the manufacturing sector will double in the next 20 years driven by five megatrends of which urbanization will have the biggest impact Asia will dominate the…
Global LPG supply will modestly increase US and ME remain global suppliers North American shale gas developments will boost LPG Supply increase from the past years will stabilize supply whereas European supply is declining m tons m…
Growth in petrochemical demand for LPG Half of global LPG demand will be in Asia in 2030, Petchem shows strongest growth Domestic demand will remain a stable LPG driver, but Asia Pacific, including China, will see biggest demand…
Increasing need for LPG infrastructure Growing imbalances will result in increasing trade flows 2015: global LPG trade 84 mln tons 2030: Global LPG trade 110 mln tons The strong increase in global LPG trade will result in the need…
LPG market requiring additional infrastructure Different value drivers for LPG infrastructure exist Export Petrochemical feedstock Domestic LPG Canada ARA India South Africa US Singapore China Brazil Middle East China SEA Egypt…
Key messages Increasing global trade from growing LPG imbalances LPG oversupply makes it an attractive feedstock for petrochemicals and replacement of traditional fuels for household consumption Growing LPG imbalances will result in…
Questions & Answers Steady growth path continues globally Royal Vopak Analyst Day 2017 Ismail Mahmud, Global Chemicals Director 12 December 2017
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