Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol...

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Methanol Project in Brunei Darussalam September 20, 2004 September 20, 2004 Mitsubishi Gas Chemical Co., Inc. Mitsubishi Gas Chemical Co., Inc. ITOCHU Corporation ITOCHU Corporation Methanol Project at Sungai Liang Industrial Site 1 Methanol Project at Sungai Liang Industrial Site 1, Corporate Profile 2, What is Methanol ? 3, Outline of Project 4, Contribution 5, Environment

Transcript of Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol...

Page 1: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

Methanol Projectin Brunei Darussalam

September 20, 2004September 20, 2004

Mitsubishi Gas Chemical Co., Inc. Mitsubishi Gas Chemical Co., Inc. ITOCHU CorporationITOCHU Corporation

Methanol Project at Sungai Liang Industrial Site

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Methanol Project at Sungai Liang Industrial Site

1, Corporate Profile

2, What is Methanol ?

3, Outline of Project

4, Contribution

5, Environment

Page 2: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Mitsubishi Gas Chemical Co.,Inc.(As of March 31, 2004)

Established: 1951Employees: 2,363Paid-in capital: US$ 397 millionTotal trading transactions in FY2003: US$3,224 million4 Internal Companies:

Natural Gas ChemicalsAromatic ChemicalsSpecialty ChemicalsInformation & Advanced Materials

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Methanol Project at Sungai Liang Industrial Site

Challenge

Create

Expand

Preserve

MGC is based on original technology.

Page 3: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

ITOCHU Corporation(As of March 31, 2004)

Founded: 1858Incorporated: 1949Employees: 4,163Paid-in capital: US$ 1.84 billionTotal trading transactions in FY2003: US$86.52 billion7 Division Companies:

TextileMachineryAerospace, Electronics & MultimediaEnergy, Metals & MineralsChemicals, Forest Products & General MerchandiseFoodFinance, Realty, Insurance & Logistics

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Methanol Project at Sungai Liang Industrial Site

Overseas offices

N America 15C/S America 13Europe 19Middle East 17Africa 10CIS 8Asia 46(China) (16)Oceania 6 Total 134

Domestic 19

Subsidiaries and Affiliates 645

ITOCHU’s Global Network

Page 4: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

AR-RAZI

KOHZAN MARU

Kinoe Terminal in Japan

KOHZAN Ⅱ KOHZAN Ⅲ

Expansion of MGC ‘s Methanol Business

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Methanol Project at Sungai Liang Industrial Site

MGC’s Key Roles in Methanol Business

Development of Natural Gas

Methanol Derivatives

Methanol Production Technology

MarketingLogistics

UbidecarenoneCatalase

Dimethyl EtherSaudi Arabia

Methacrylic AcidAcetone Methylmethacrylate

import Intermediates for MMA FormamideMethyl 2-Hydroxyisobutyrate

MethanolParaformaldehyde

FormaldehydeHexamethylenetetramine

Natural Gas Methylamine DimethylformamideDimethylacetamide

Methyl Formate Dimethylaminoethanol

Acetaldehyde

EthylamineAmmonia Liquefied Carbon Dioxide

Dry Ice

m-Xylene m-Xylenediamine Nylon-MXD6

Page 5: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

MGC-one of the Largest Methanol Producers and Suppliers

Location Capacity Start Remarks

Saudi Arabia 700,000 t/y 1983 J/V with SABIC700,000 t/y 1991850,000 t/y 1997850,000 t/y 1999

Total 3,100,000 t/y(1,700,000 t/y) (Under Planning)

Venezuela 730,000 t/y 1994 J/V with Pequiven(850,000 t/y) (Under Planning)

Grand total 3,830,000 t/y

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Methanol Project at Sungai Liang Industrial Site

AR-RAZI No.1 Plant (1983)

Page 6: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

AR-RAZI No.2 Plant (1991)

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Methanol Project at Sungai Liang Industrial Site

AR-RAZI No.3 Plant (1997)

Page 7: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

AR-RAZI No.4 Plant (1999)

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Methanol Project at Sungai Liang Industrial Site

METOR Plant (1994)

Page 8: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

MetorMGCA

MGCSAR-RAZI

MGCE

Tank Terminal

Inner Mongolia

Equat.Guinea

Technology License

MGC ’s Networks for Methanol Business

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Methanol Project at Sungai Liang Industrial Site

MGC ‘s Logistics Networks- Dedicated tankers

Flexibility to deliver product – 10,000DWT~45,000DWTKOHZAN MARU, KOHZAN MARU 2,

KOHZAN MARU3, K.K.NO.3, K.K.NO.5,

JOSE BREEZE, JOSE STREAM, COA CONTRACTS

Page 9: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

MethanolMethanolH

C|

H- -OH

H|

What is Methanol ?

Clear liquid chemical

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Methanol Project at Sungai Liang Industrial Site

Features of Methanol

・Essential raw material

・Produced from natural gas mainly

・Wide variety of derivatives

・Growth of demand worldwide

・International trading actively

・Production shift to vast natural gas area

Page 10: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Methanol Production & Demand in the world

AsiaNorth

America

West Europe

Middle East

South America

Major Market

Major Production

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Methanol Project at Sungai Liang Industrial Site

Production & Demand by Region

(32 million tons in 2003)

Production

Otherregions

19%

Asia14%

MiddleEast19%

WestEurope

10%

NorthAmerica

14%

SouthAmerica

24%

Demand

Otherregions

15%

NorthAmeric

a31%

Asia32%

WestEurope

22%

Page 11: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Regional Production Trend of Methanol

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

(-000-MT)

North America South America West Europe Middle East Asia Other regions

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Methanol Project at Sungai Liang Industrial Site

Growth of Methanol Demand by Region

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1993 2003 2013

MT/year

Asia North America West Europe Other regions

Page 12: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Raw Materials for Industry & Life

Methanol

Derivatives

Applications

Formaldehyde Acetic Acid MTBE, etc.

Resin, Adhesive, Plastics, Paint, Sheet, Solvent,

Gasoline additive

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Methanol Project at Sungai Liang Industrial Site

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1993 2003 2013

MT/year

Formaldehyde Acetic Acid MTBE Other Chemicals

Growth of Methanol Demand by Use

Page 13: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Historical Methanol Prices

0

100

200

300

400

500

600

700

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Uni t : US$/MT

US Contract WE Contract JAPAN Contract TAIWAN Spot

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Methanol Project at Sungai Liang Industrial Site

Outline of Methanol Project in Brunei Darussalam

1, Capacity : 2,500 ton/day

2, Investment : US$288 million

3, Process : Mitsubishi (MGC/MHI) Methanol Process

4, Commercial Operation : Q3, 2007

5, Employment : Operation stage 120-130 persons

Page 14: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Joint Project of Methanol

Project Company of Methanol

Brunei Darussalam MGC&ItochuCollaboration

Sungai Liang industrial site

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Methanol Project at Sungai Liang Industrial Site

Calendar Project months Target

26-August-2004 Selection for further negotiations by BEDB

Negotiations for key issues

1-April-2005 0 Final Investment Decision (FID)

January-2006 10 Start of construction work

July-2007 28 Mechanical completion of the plant

September-2007 30 Start of commercial production of the plant

Project Implementation Schedule

Page 15: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Image of Methanol Plant

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Methanol Project at Sungai Liang Industrial Site

Marketing

Methanol Project

Strategic location

Utilization of MGC/Itochu‘s networks

Target market

Page 16: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

MGC ‘s Marketing Networks

Supply Base Networks

Logistics DealingBrunei

Methanol Project

MGC

and

Itochu

Customers in Asia

MGC ‘s Captive Use

in Asia

Dedicated Vessels

Tank Terminal

Market

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Methanol Project at Sungai Liang Industrial Site

Development of Downstream Oil & Gas Industry

Methanol Project

Employment Opportunity

Diversification of Industry

Enhancement Economy Creation

Page 17: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Direct Employment Effects by Methanol Project

1, Construction Phase : about 2,000 works

2, Operation Phase : 120~130 persons

Methanol Project

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Methanol Project at Sungai Liang Industrial Site

Employment Effects by Potential Methanol Derivatives

Operation Phase (direct employment basis)

Methanol project : 120~130 persons

Potential derivatives : 620~630 persons

+

Total : 740~760 persons

(not including construction works)

Page 18: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Enhancement of Local Economy

Methanol Project

Welding companies

Manufacturers

Construction equipment companies

Maintenance companies

Bank

Marine surveyor

Shipping companies

Construction companies

Shipping agencies

Insurance

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Methanol Project at Sungai Liang Industrial Site

Wide Variety of Derivatives from MethanolFuel cells (DMFC)

Dimethyl ether

Methyl t-butyl ether

Chloromethanes

Formaldehyde Paraformaldehyde PolyacetalFormic acidBisphenol F Epoxy resins

Methylenediphenyl-diisocyanate

NeopentylglycolTrimethylolalkanes Polyester

Methanol Pentaerythritol Alkyd resinDimethyl terephthalate

Acetic acid Acetyl CelluloseVinyl Acetate EVAL

MMA Acrylic resin

Methoxysilanes Silicone resin

Methylamines N-Methyl-2-pyrrolidoneN,N-DimethylformamideN,N-Dimethylacetamide

Choline ChlorideTetraammonium salts

Hexamethylenetetramine

Ethylenediamine EDTA salts

Hexamethylenediamine Polyamide

Isophoronediamine Polyurethane

m-Xylylenediamine

Hydrogen cyanide Sodium cyanide

Ammonia Acrylonitrile Acryl fiber TextilesAS/ ABS resin

Acetonitrile RubbersAcrylamide Flocculants

Hydroxyl amine

Ethanolamines

Hydrazine

Melamine Melamine resin

Pylidine

Urea Urea resinFertilizers

Nitric acid Nitrate saltsNitrobenzene AnilineCaprolactam Polyamide

Ammonium salts Tolylenediisocyanate Polyurethane

Polyurethane

NG

Product of MGCPossible to license

Page 19: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Good Example of Development in MGC NiigataUbidecarenone

CatalaseDimethyl Ether

Saudi ArabiaMethacrylic Acid

Acetone Methylmethacrylateimport Intermediates for MMA Formamide

Methyl 2-Hydroxyisobutyrate

MethanolParaformaldehyde

FormaldehydeHexamethylenetetramine

Natural Gas Methylamine DimethylformamideDimethylacetamide

Methyl Formate Dimethylaminoethanol

Acetaldehyde

EthylamineAmmonia Liquefied Carbon Dioxide

Dry Ice

m-Xylene m-Xylenediamine Nylon-MXD6

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Methanol Project at Sungai Liang Industrial Site

MGC Niigata factory

Page 20: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

MGC ‘s Technical Support for Methanol Project

Catalyst(s)Catalyst(s)Catalyst(s)

OperationOperationDesignDesign

Technology Transfer to the World

MethanolFormaldehydeMethyl amineHydrogen CyanideDimethyl etherSuper-pure Ammonium HydroxideH2,CO from MethanolMX-Nylon, etc.

Safety Technology

〈Technical Package〉〈〈Technical PackageTechnical Package〉〉

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Methanol Project at Sungai Liang Industrial Site

Technology Transfer

Based on MGC ‘s experiences in Saudi Arabia & Venezuela

・On the Job Training

・Training Center

・Practice in MGC‘s J/V

・Operation

・Maintenance

・Plant management

Training Technology for

Transfer

Page 21: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Preservation of the Environment

・Protect the environment

・Ensure safety

・Maintain health

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Methanol Project at Sungai Liang Industrial Site

Air Pollution Control & CO2 Recovery

Industrial Area Boundary

CO2 Recycling CO2Recovery

Unit

Waste Gas

Page 22: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Waste Recycling

Industrial Area Boundary

Bio-logicalWater Treatment

Neutralization

Waste Water

Recycle Water

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Methanol Project at Sungai Liang Industrial Site

Realization of Methanol Project

Collaboration

Brunei Darussalam

・Natural gas resources

・Strategic location

MGC&Itochu

・Proven technology

・Marketing capability

・Reliable construction

Page 23: Methanol Project in Brunei Darussalambruneiresources.com/pdf/bedb_sungai_liang_3.pdf · Methanol Project in Brunei Darussalam September 20, 2004 Mitsubishi Gas Chemical Co., Inc.

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Methanol Project at Sungai Liang Industrial Site

Thank you.

Mitsubishi Gas Chemical Co., Inc. Mitsubishi Gas Chemical Co., Inc. ITOCHU CorporationITOCHU Corporation