Petrochemical Business in the Asia Pacific Region

SUMMARY

INTRODUCTION

The petrochemical industry sector has been one of the most dynamic sectors ofthe Asia-Pacific region from the perspective of market potentials for productsand in terms of investments that are being made in the countries of the region.One after another, major petrochemical industry projects that were suspended dueto the Asian financial crisis have resumed implementation, and new projects arebeing identified given the natural resources of the region.

STUDY GOALS AND OBJECTIVES

The present study aims to identify opportunities for foreign direct investorsto cooperate in the development of Asia-Pacific petrochemicals industryprojects. It also seeks to identify the market potentials in the region forpetrochemical products - markets in which traders, both regionally andworldwide, might have interests.

REASONS FOR DOING THE STUDY

The Asia-Pacific region is endowed with huge petroleum resources, both oiland gas, which provide the basis for developing oil- and gas-basedpetrochemicals industries. These present resources and prospects for the futurehave to be kept in perspective when planning the petrochemicals sector. Theworld-scale petrochemicals projects emerging in this region and the markets theyare targeting need to be reviewed in order gain a proper perspective of theAsia-Pacific sector.

SCOPE AND FORMAT

The petrochemicals sector of the following countries will be extensivelyreviewed. Oil and gas resource potentials will be covered, as well as thepresent industry status in each country, their future plans, emerging projects,regulations related to foreign investment, and markets for petrochemicalproducts. The countries covered in this report include:

• Brunei
• People's Republic
• of China
• India
• Indonesia
• Japan
• South Korea
• Malaysia
• Taiwan
• Thailand
• Singapore
• Vietnam
• Australia
• New Zealand

METHODOLOGY

The capacities of the production facilities in operation in the countries,the emerging new project capacities, and the demand for major petrochemicalproducts are extensively reviewed to present the structure of the sector and thefuture trends. National policies and industrial development plans related to thepetrochemicals industry sector are reviewed to present the investmentenvironment with respect to foreign participation in the sector.

INFORMATION SOURCES

Information presented by national organizations and online companies formedthe references. The related data provided by these sources were reviewed whenforecasting the demand trends of major petrochemical products.

TABLE OF CONTENTS

INTRODUCTION

• STUDY GOALS AND OBJECTIVES
• REASONS FOR DOING THE STUDY
• SCOPE AND FORMAT
• METHODOLOGY
• INFORMATION SOURCES
• BCC ON-LINE SERVICES
• RELATED BCC REPORTS

SUMMARY

OVERVIEW

• OIL AND GAS RESERVES
• PETROCHEMICAL PRODUCTION CAPACITIES
• THE DEMAND FOR PETROCHEMICAL PRODUCTS
• NEW PETROCHEMICAL PROJECTS
• INDUSTRY STRUCTURE
  • REGIONAL ASSOCIATIONS
• FOREIGN DIRECT INVESTMENT

OIL AND GAS RESOURCES

• NATURAL GAS PRODUCTION

PETROLEUM REFINERIES AND GAS PROCESSING PLANTS

• BRUNEI
• PEOPLE' S REPUBLIC OF CHINA
• INDIA
• INDONESIA
• JAPAN
• SOUTH KOREA
• MALAYSIA
• THE PHILIPPINES
• SINGAPORE
• THAILAND
• TAIWAN
• VIETNAM
• AUSTRALIA
• NEW ZEALAND

PETROCHEMICAL INDUSTRY

• BRUNEI
• PEOPLE' S REPUBLIC OF CHINA
• INDIA
• INDONESIA
• JAPAN
• SOUTH KOREA
• MALAYSIA
• THE PHILIPPINES
• SINGAPORE
• TAIWAN
  • CHINESE PETROLEUM CORP.
  • FORMOSA PETROCHEMICALS CORP.
  • COMBINED PRODUCTION CAPACITIES
• THAILAND
  • NATIONAL PETROCHEMICAL PUBLIC CO., LTD.
  • CEMENTHAI CHEMICALS CO., LTD.
  • THAI PETROCHEMICAL INDUSTRY GROUP
  • THAI OLEFINS CO., LTD.
  • ESSO STANDARD THAILAND — AROMATICS PLANT
  • TUNTEX PETROCHEMICALS (THAILAND) PUBLIC CO., LTD.
• VIETNAM
• AUSTRALIA
• NEW ZEALAND

MARKET POTENTIALS

• PEOPLE' S REPUBLIC OF CHINA
• INDIA
• JAPAN
• SOUTH KOREA
• TAIWAN
• ASEAN (ASSOCIATION OF SOUTHEAST ASIAN NATIONS) COUNTRIES
• AUSTRALIA
• NEW ZEALAND
• REGIONAL DEMAND
• INTRA-ASEAN TRADE

EXPANSION POTENTIALS AND PLANS

• BRUNEI
• PEOPLE' S REPUBLIC OF CHINA
  • NANJING PETROCHEMICAL PROJECT
  • SHANGHAI PETROCHEMICAL PROJECT
  • NANHAI PETROCHEMICAL PROJECT
  • MORE JOINT VENTURES
  • SINOPEC ETHYLENE EXPANSION PROJECTS
• INDIA
• INDONESIA
• JAPAN
• SOUTH KOREA
• MALAYSIA
• THE PHILIPPINES
• SINGAPORE
• TAIWAN
  • TUNTEX' S NO. 7 NAPHTHA CRACKER PROJECT
  • CPC' S NO. 8 NAPHTHA CRACKER PROJECT
  • PTA PROJECTS
• THAILAND
• VIETNAM
  • FROM 2000 TO 2005
  • FROM 2005 TO 2010
  • AFTER 2010
  • PVC PROJECT
  • UREA FERTILIZER PROJECT
• AUSTRALIA
• NEW ZEALAND
• EMERGING ETHYLENE CAPACITIES

REGIONAL ASSOCIATIONS AND COOPERATION PLANS

• ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN)
• SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)
  • OBJECTIVES
  • PRINCIPLES
• BANGLADESH-INDIA-MYANMAR-SRI LANKA-THAILAND ECONOMIC COOPERATION (BIMST-EC)
• BRUNEI-INDONESIA-MALAYSIA-PHILIPPINES EAST ASEAN GROWTH AREA (BIMP-EAGA)
• INDONESIA-MALAYSIA-THAILAND GROWTH TRIANGLE (IMT-GT)

FOREIGN INVESTMENT ENVIRONMENT

• BRUNEI
• PEOPLE' S REPUBLIC OF CHINA
• INDIA
• INDONESIA
• JAPAN
• SOUTH KOREA
• MALAYSIA
• THE PHILIPPINES
  • NATIONAL LIST
  • REGIONAL LIST
  • AUTONOMOUS REGION OF MUSLIM MINDANAO (ARMM) LIST
• SINGAPORE
• TAIWAN
  • TEN EMERGING INDUSTRIES
  • EIGHT KEY TECHNOLOGIES
• THAILAND
• VIETNAM
  • ECONOMIC SECTORS
• AUSTRALIA
• NEW ZEALAND
• ASEAN INVESTMENT AREA

INVESTMENT OPPORTUNITIES

• BRUNEI
• PEOPLE' S REPUBLIC OF CHINA
• INDIA
• INDONESIA
• JAPAN
• SOUTH KOREA
• MALAYSIA
• THE PHILIPPINES
• SINGAPORE
• TAIWAN
• THAILAND
• VIETNAM
  • FROM 2000 TO 2005
  • FROM 2005 TO 2010
  • AFTER 2010
• AUSTRALIA
• NEW ZEALAND

CONCLUSION

APPENDIX I: GROSS DOMESTIC PRODUCT AND POPULATION

APPENDIX II: KEY CONTACTS

• AUSTRALIA
• BRUNEI
• PEOPLE' S REPUBLIC OF CHINA
• INDIA
• INDONESIA
• JAPAN
• SOUTH KOREA (REPUBLIC OF)
• MALAYSIA
• THE PHILIPPINES
• SINGAPORE
• TAIWAN
• THAILAND
• VIETNAM
• NEW ZEALAND
• INTERNATIONAL AND REGIONAL ORGANIZATIONS

APPENDIX III: REFERENCES

LIST OF TABLES

SUMMARY TABLE:
ASIA-PACIFIC: PETROCHEMICAL SECTOR, THROUGH 2006

1 ASIA-PACIFIC REGION: OIL AND GAS RESERVES, AS OF JANUARY 1, 2001

2 ASIA-PACIFIC: BASIC PETROCHEMICAL INTERMEDIATES—PRODUCTIONCAPACITIES, 2001

3 DEMAND FOR BASIC PETROCHEMICAL INTERMEDIATES: ASIA-PACIFIC VS WORLDMARKET, THROUGH 2006

4 ASIA-PACIFIC: EMERGING ETHYLENE CAPACITIES

5 ASIA-PACIFIC REGION: OIL AND GAS RESOURCES, AS OF JANUARY 1, 2001

6 ASIA-PACIFIC REGION: NATURAL GAS PRODUCTION, THROUGH 1999

7 CHINA: PETROLEUM REFINERY CAPACITYIES, 2001

8 INDIA: PETROLEUM REFINERY CAPACITIES, 2001

9 INDONESIA: PETROLEUM REFINERY CAPACITIES, 2001

10 JAPAN: PETROLEUM REFINERY CAPACITIES, 2001

11 KOREA: PETROLEUM REFINERY CAPACITIES, 2001

12 MALAYSIA: PETROLEUM REFINERY CAPACITIES, 2001

13 PHILIPPINES: PETROLEUM REFINERY CAPACITIES, 2001

14 SINGAPORE: PETROLEUM REFINERY CAPACITIES, 2001

15 THAILAND: PETROLEUM REFINERY CAPACITIES, 2001

16 TAIWAN: PETROLEUM REFINERY CAPACITIES, 2001

17 AUSTRALIA: PETROLEUM REFINERY CAPACITIES, 2001

18 CHINA: SINOPEC PETROCHEMICAL PLANTS, 2000

19 CHINA: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 2000

20 INDIA: NAPHTHA/GAS CRACKERS IN OPERATION, 2001

21 INDIA: INSTALLED CAPACITIES OF ETHYLENE CRACKERS, 2001

22 INDIA: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES

23 INDONESIA: PETROCHEMICAL PLANTS IN OPERATION, 2001

24 INDONESIA: PRODUCTION CAPACITIES OF AMMONIA AND UREA, 2001

25 INDONESIA: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 2001

26 JAPAN: PETROCHEMICALS PRODUCTION CAPACITIES, 1998 AND 2004

27 JAPAN: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 1998

28 KOREA: PETROCHEMICAL CENTERS, 2001

29 SOUTH KOREA: ETHYLENE PRODUCERS

30 SOUTH KOREA: CAPACITIES AND EXPANSION PLANS FOR BASIC PETROCHEMICALS

31 SOUTH KOREA: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES,2001

32 MALAYSIA: PRODUCTION OF INTERMEDIATES, 2001

33 MALAYSIA: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 2001

34 THE PHILIPPINES: BASIC INTERMEDIATES AND POLYMERS PRODUCTIONCAPACITIES, 2001

35 SINGAPORE: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 2001

36 CHINESE PETROLEUM CORP. PETROCHEMICAL CAPACITIES, 2001

37 FORMOSA PETROCHEMICALS CORP. PETROCHEMICAL PLANT CAPACITIES, 2001

38 TAIWAN: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 2001

39 THAILAND: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 2001

40 ALTONA COMPLEX PRODUCTION COMPANIES

41 AUSTRALIA: BASIC INTERMEDIATES AND POLYMERS PRODUCTION CAPACITIES, 2001

42 CHINA: SUPPLY AND DEMAND FOR KEY SYNTHETIC MATERIALS, 2005 AND 2010

43 CHINA: PETROCHEMICAL PRODUCT DEMAND FORECAST, 2005

44 CHINA: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006

45 INDIA: DEMAND PROJECTION FOR MAJOR PETROCHEMICALS, 2001-2007

46 INDIA: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006

47 JAPAN: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006

48 KOREA: GROWTH TREND IN DOMESTIC DEMAND OF PETROCHEMICALS, THROUGH 2000

49 KOREA: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006

50 TAIWAN: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006

51 ASEAN: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006

52 AUSTRALIA: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006

53 ASIA-PACIFIC REGION: DEMAND FORECAST FOR ETHYLENE, THROUGH 2006

54 ASIA-PACIFIC REGION: DEMAND FORECAST FOR PROPYLENE, THROUGH 2006

55 ASIA-PACIFIC REGION: DEMAND FORECAST FOR BENZENE, THROUGH 2006

56 ASIA-PACIFIC REGION: DEMAND FORECAST FOR TOLUENE, THROUGH 2006

57 ASIA-PACIFIC REGION: DEMAND FORECAST FOR XYLENE, THROUGH 2006

58 ASEAN: INTRA-ASEAN TRADE OF CHEMICALS AND PLASTICS, 1998, 1999, AND2000

59 NANJING PETROCHEMICAL PROJECT: PLANNED PRODUCTS AND CAPACITIES

60 SHANGHAI PETROCHEMICAL PROJECT: PLANNED PRODUCTS AND CAPACITIES

61 NANHAI PETROCHEMICAL PROJECT: VENTURE PARTNERS AND RESPECTIVE VENTURESHARES

62 NANHAI PETROCHEMICAL PROJECT: PLANNED PRODUCTS AND CAPACITIES

63 ZHUHAI PTA PROJECT: JOINT VENTURE PARTNERS AND RESPECETIVE VENTURESHARE

64 INDIA: PROPOSED/PLANNED OLEFIN CRACKER PROJECTS

65 PT TRANS PACIFIC PETROCHEMICAL INDOTAMA: PLANNED PRODUCTS ANDCAPACITIES

66 ON-HOLD AROMATICS PLANT PROJECTS APPROVED BY THE CAPITAL INVESTMENTCOORDINATING BOARD

67 INDONESIA: UREA FERTILIZER PLANS UNDER CONSTRUCTION

68 KERTEH PETROCHEMICAL COMPLEX: PRODUCTS AND CAPACITIES, 2002

69 THAILAND: PLANNED EXPANSION OF PETROCHEMICAL PLANTS

70 VIETNAM: PETROCHEMICAL PROJECTS UNDER IMPLEMENTATION OR PLANNING

71 PHU MY PLASTICS & CHEMICAL CO., LTD. VENTURE PARTNERS ANDRESPECTIVE VENTURE SHARES

72 AUSTRALIA: NATURAL GAS RESOURCES

73 ASIA-PACIFIC: EMERGING ETHYLENE CAPACITIES

74 PT ASEAN ACEH FERTILIZERS: JOINT VENTURE PARTNERS AND RESPECTIVEVENTURE SHARES

75 BINTULU FERTILIZER SDN BHD: JOINT VENTURE PARTNERS

76 SAARC REGIONAL PETROLEUM RESOURCES

77 BANGLADESH: MAJOR GAS FIELDS, 2001

78 EAGA MEMBER NATIONS: REGION RESOURCES

79 BRUNEI PIONEER CERTIFICATE TAX EXEMPTION SCHEDULE

80 JAPAN: GOVERNMENTAL INVESTMENT INCENTIVES

81 SOUTH KOREA: TAX INCENTIVES FOR FOREIGN INVESTORS

82 SINGAPORE: TAX INCENTIVES GRANTED BY THE ECONOMIC EXPANSION INCENTIVESACT

83 TAIWAN: PREFERENTIAL TAX MEASURES AMENDED ON JANUARY 1, 2000

84 INDIA: PROPOSED REFINERY PROJECTS

85 INDIA: PROPOSED PETROCHEMICAL DOWNSTREAM PROJECTS

86 INDONESIA: PLANNED PETROCHEMICAL COMPLEX OF FLP AT BARRU, SOUTHSULAWESI

87 INDONESIA: APPROVED PETROCHEMICAL PROJECTS

88 VIETNAM: PETROCHEMICAL PROJECTS IN THE PLANNING STAGE

89 AUSTRALIA: PLANNED PETROCHEMICAL PROJECTS

LIST OF FIGURES

SUMMARY FIGURE:
ASIA-PACIFIC: PETROCHEMICAL SECTOR, 2002 AND 2006

1 INDIA: DEMAND FORECAST FOR BASIC PETROCHEMICALS, 2002-2006

2 JAPAN: DEMAND FORECAST FOR BASIC PETROCHEMICALS, 2002-2006

3 KOREA: DEMAND FORECAST FOR BASIC PETROCHEMICALS, 2002-2006

4 TAIWAN: DEMAND FORECAST FOR BASIC PETROCHEMICALS, 2002-2006

5 ASEAN: DEMAND FORECAST FOR BASIC PETROCHEMICALS, 2002-2006

6 AUSTRALIA: DEMAND FORECAST FOR BASIC PETROCHEMICALS, THROUGH 2006