Overview of Vietnam petrochemical industry

CECO Chemical Industry Engineering

J.S Company

General Introduction
Fertilizer (Urea)

Natural Gas Petrochemical Plant

Plastic industry (PP, PE, PVC, PET, PA, ABS)

Textile industry (PU, PET, PP, PA PE) Crude oil Refinery Detergents (LAB, LAS)

Vietnam crude oil information List of Vietnam crude name

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Crude name BACH HO (White Tiger) BLACK BIRD BLOCK 06/94 BLOCK 11-02 BLOCK 15-1 BLOCK 16-1 BLOCK 9 - 1 BLOCK 9 - 3 BUNGA KEKWA CA NGU VANG DAI HUNG (Big Bear) DONG DO DUA HAI SU TRANG (HST) HAI THACH HOANG LONG API 41.1 ----42 ----29.7 -----S, %w 0.06 ---------0.1 -----Production, kBD 230kbd (Aug-2006) 2010 Future startup TBA Late 2006 65kbd (Nov 2006) Future startup TBA Future startup TBA Future Startup TBA Early 2009 2Q , 2009 11 kBD (Nov-2006) Future Startup TBA Late 2011 Future Startup TBA 2010 Late 2009

Vietnam crude oil information List of Vietnam crude name

No. 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Crude name LAN TAY - LAN DO NAM CON SON PHUONG DONG RANG DONG (Green Dragon) RONG (Dragon) RONG DOI (Twin Dragon) RUBY SONG DOC SUTU DEN (Black Lion) SUTU NAU SUTU TRANG (White Lion) SUTU VANG (Golden Lion) TE GIAC TRANG (TGT) THANH LONG (Blue Dragon) VOI TRANG (White Elephant) YENTU API -60.2 -38 40.5 49.4 35.7 38 36.2 --37 --42 43.2 S, %w -0.026 -0.04 0.04 0.02 0.08 -0.05 -------Production, kBD Nov 2002 GAS/COND 5.3 KBD Gas/Cond Sep-08 56 kBD (Nov-2006) 11 kBD (2004) 3.6KBD - Nov 2006 GAS/COND 18 kBD 3Q 2008 65kbd (Nov 2006) Future Startup TBA 1/7/1905 4Q 2008 4Q 2008 Future Startup TBA Future startup TBA Future Startup TBA

Crude oil production and import situation of Vietnam

25 20 Mil Ton 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 Import petroleum products Cruid oil production Gas production 8000 7000 6000 4000 3000 2000 1000 0 2008 Mil M3 5000

Vietnam has 4th largest oil reserves in Southeast Asia. Vietnam oil industry structure is to export all the crude oil and import oil products. Now, DungQuat refinery was operated and 1/ 3 of domestic demand can be supplied. Demand for petrochemical products each year increased 10%.

Oil and gas demand forecast of Vietnam

Oil productions 100 90 80 70 60 50 40 30 20 10 0 2005 2010 2015 2020 2025 Gas Petrochemical Production

Mil Ton

 Crude oil exports are decreasing in order to provide feedstock for domestic petrochemical refineries

Information Refiner & Petrochemical projects

Operating Plants
Dung Quat Refinery (6,5 mn MTPY of crude oil)

TPC-Vina (100,000 MTPY of PVC)

LG-Vina Plant (40,000 MTPY of DOP) Formosa Plant (142,000 MTPY of PET) Hualong Plant (24,000 MTPY of PET)

ng Nai

TP HCM

Ct Li Condensate Plant (20,000 m3/y)

PDC Condensate Plant270,000 MTPY

.Dung Quat

PMPC Plant (100,000 MTPY of PVC) Dinh C Gas Production Plant (350,000 TPA of LPG) Ph M Fertilizer Plant (740,000 TPA of Urea) Th Condensate Plant (120,000 m3/y)

BR VT

Cn Th

.Ca Mau

Stage 2006-2010

PP Plant (150,000 MTPY)

.Dung Quat

.Ca Mau

Development Stage 2011-2015

DINH VU Fiber Plant (PVNVinatex) (165,000 MTPY of PET) Nghi Sn Refinery (10 mn MTPY) PTA Plant (320,000 MTPY) Dung Qut LAB Plant (40,000 MTPY ) Vng R Refinery (4 mn MTPY)

HP TH

PY

.Dung Quat

NM PET (260.000 MTPY) NM PS (200.000 MTPY) NM nha ng (200.000 MTPY)

The Third Refinery Plant(10 mn MTPY) Long Son Petrochemical Complex (2 mn MTPY)

BR VT

.Ca Mau

C Mau Fertilizer (800,000 MTPY of Urea)

Development Stage 2016-2025

Qung H Refinery (5 mn MTPY crude oil) Bnh nh Refinery (5 mn MTPY crude oil) Vn Phong Refinery (10 MTPY crude oil) Methanol Plant (660,000 m3/y) M rng THHD pha Nam/ THHD t kh NM PP 2 (THHD pha Nam) (3-400,000 MTPY) NMLD s 4/ m rng cc NMLD hin c (PVN)

.Dung Quat

.Ca Mau

Market demand and forecast of petrochemical products in Vietnam Stages 2008-2025

Supply / demand of petrochemical products in 2010 2025

Unit: 1000 tons

Year Petrochemical products Plastic Materials DOP, LAB

Demand 2010 1015 2020 2025 2025 10,823 150 3,924 4,896 4,896 10,125 656 3,266 3,573 3,873 689 30 40 70 70

*Note: not including 1540 thousand tons of urea from PhuMy & CaMau Forecast demand for oil products : 1,946 thousand tons in 2007 to 10,823 thousand tons in 2025. (10 million tons P. Plastic 0.7 million tons -DOP and LAB). PE -34%, 2 PP - 25% PET 21% domestic production >> demand. production capacity 4,9 million tons of P. products 3,8 million tons of P. materials 0,07 million tons of DOP, LAB

45% of the demand 38% of the demand 10% of the demand

Conclusions of Vietnam Petrochemicals Industry

Strengths Self-sufficiency in oil production gives a feedstock advantage favorite for the development of the petrochemicals industry. Has attracted many foreign investors Weaknesses Petrochemicals product portfolio is more or less limited to PVC Scarce refining capacity High input costs for petrochemicals production Opportunities Plans to establish refinery and development of plastics and intermediate petrochemicals production Rising gas production could provide feedstock for petrochemicals production Has strategies specifically oriented to develop petrochemical industry by 2025

Development Direction
Rapidly accelerate the oil refinery and petrochemical projects - utilize domestic fuel sources
- meet domestic demand : petrochemical & refinery products

Improve the investment environment to attract foreign

- improved infrastructure - reduce production costs

Promote the general strength of the economic sectors in the development of petrochemical industry (special : investment foreign
capital and experience )

Development Objects Synthetic Plastic : PE, PP, PET, PS, PVC, PA(nylon).

Synthetic fibers : Polyester, PP, PA.

Other products : LAS, LAB, DOP.

Oil gas

Metan

Nitrogen fertilizer production plant

Urea

Etan Gas treatment Condensat LPG Olefin Products

Ethylene VCM Propylene MEG Acrylonitrile

PE PVC PP

Naphtha

Aromatics Complex Benzen

P-xylen

PTA Cyclohexanol Adipic acid SM

PET

Nylon 6,6

PS

Kerosene

n-parafin

LAB

LAS

0-xylen

Phthalic Anhydride

DOP

Thank you for your attention