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Downstream & Petrochemical Asia 2014, 29 -30 Oct, Singapore www.downstream-asia.com

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The 10 largest downstream and
petrochemical projects planned for Asia
in 2014/2015

June 2014






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Asia is still the home of many of the major downstream and petrochemical projects planned for
2014, 2015 and beyond. Despite the renewed interest in North America and Europe, many of the
largest projects and refinery upgrade are being rolled out in the Asia region.

What are the 10 major projects?
PROJECT NO. 10: KOCHI REFINERY EXPANSION
Indians State refiner Bharat Petroleum Corporation (BPCL) is expanding its Kochi refinery where it
is also setting up a petrochemicals unit. The expansion and upgrading project envisages the refinery
processing capacity at 310,000 bpd of crude after completion. BPCL is aiming at 100% mechanical
completion of Kochi refinery expansion by March 2016 and the integrated commissioning of the
plant by May 2016. The project is estimated to cost Rs 14,225 crore ($2.5billion).

PROJECT NO. 9: PULAO MUARA BESAR BRUNEI REFINERY
Hengyi Industries is planning the investment, construction,
operations and maintenance of a 135,000 bpd Integrated Oil
Refinery and Aromatics Cracker plant on Pulau Muara Besar
Brunei. The investment for Phase 1 of the project is expected
to amount to approximately $4 billion.

PROJECT NO. 8: PERTAMINA REFINERIES UPGRADING
Indonesias PERTAMINA plans to upgrade its existing oil refineries with a $7 billion investment plan
that will boost its combined oil-processing capacity. A feasibility study for the upgrade of
PERTAMINAs refineries in Balongan (West Java), Cilacap (Central Java), Balikpapan (East
Kalimantan), Plaju (South Sumatra) and Dumai (Riau) is to be concluded in 2014 with the project
itself potentially starting in 2015. The work is estimated to take three years.

PROJECT NO. 7: S-OIL ULSAN REFINERY UPGRADING
S-Oil is investing $7.5 billion (8 trillion won) in its refining, petrochemical units. 5 trillion won will be
spent to build heavy oil upgrading and petrochemical units by 2017 at the companys Onsan refinery
in Ulsan, South Korea. The upgrade of the refinery includes the addition of a residue hydro-
desulfurization unit, a residue fluid catalytic cracker and multiple downstream upgrading units to
enable the refinery to produce higher value products and, in particular, maximize production of
polymer-grade propylene. FEED contracts have been let in March 2014. Another 3 trillion won will
be spent later to build additional petrochemical units.

PROJECT NO. 6: NSRP
The $8 billion Nghi Son Refinery and Petrochemical Complex (NSRP) project with a capacity of 200,
000 bpd is located in Thanh Hoa province, Vietnam. This project is jointly developed by Idemitsu
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(Japan 35.1%), KPC (Kuwait 35.1%), PVN (25.1%) and Mitsui Chemicals (Japan 4.7%). The
project has been licensed and in the process of finalizing financial arrangement for EPC award and
implementation.

PROJECT NO. 5: SINOPEC-KPC REFINERY
The Sinopec-KPC refinery is a $9billion project in Southern China for a 240,000 bpd greenfield
refinery project.

PROJECT NO. 4: SINO-VENEZUELA GUANGDONG PETROCHEMICAL OIL REFINERY
Petrleos de Venezuela SA (PDVSA) is partnering with China National Petrochemical Corporation
(CNPC) to build a 400,000 bpd refinery, to be completed in 2015. The Sino-Venezuela Guangdong
Petrochemical Company oil refinery project is located in the Jieyang Nandahai Petrochemical
Industrial Zone in Guangdong province, China. It is the largest oil refinery project in China in terms of
processing capability. Total project investment amounts to 58.6 billion yuan ($9.54 billion) with
PetroChina a 60% stakeholder and Petrleos de Venezuela S.A. holding a 40% stake.

PROJECT NO. 3: JAMNAGAR REFINERY EXPANSION
Reliance Industries Jamnagar refinery Expansion project,
costing $10 billion- $12 billion, will integrate the refining units
with additional petrochemicals operations at the Jamnagar
site, seeking to produce more chemicals such as ethylene,
polypropylene and propylene. The Jamnagar complex can
process 1.24 million bpd of oil and already produces 1.9 million
tpy of polypropylene.

PROJECT NO. 2: RAPID
Malaysias PETRONAS has approved the FID for developing a $20 billion Refinery And
Petrochemicals Integrated Development (RAPID) project in Pengerang, Johor. This project includes
a 300,000 bpd refinery, which industry expects will turn Malaysia from a net oil product importer to
a net oil product exporter once it is operational.

PROJECT NO. 1: NHON HOI REFINERY AND PETROCHEMICAL COMPLEX
Nhon Hoi refinery and petrochemical complex project, owned by PTT, with a total investment cost
of $28 billion and a capacity of 660,000 bpd (30 million tons / year), is located in Nhon Hoi economic
zone, Vietnam. The Feasibility Study Report has been submitted to the Government for approval in
April 2014. The project is expected to commence in the third quarter of 2015 and production will
start in 2018.

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Table 1 summarises key statistics of these major projects:
Project Capacity (bpd) Investment ($Billion) Location (Country)
Nhon Hoi refinery and
petrochemical
complex
660,000 28 Vietnam
RAPID 300,000 20 Malaysia
Jamnagar refinery
Expansion
1.24 million 12 India
Sino-Venezuela
Guangdong
Petrochemical
Company oil refinery
400,000 9.54 China
Sinopec-KPC refinery 240,000 9 China
Nghi Son Refinery and
Petrochemical
Complex (NSRP)
200,000 8 Vietnam
S-Oil Ulsan refinery
upgrading
669,000 7.5 South Korea
PERTAMINA refineries
upgrading
N/A 7 Indonesia
Pulau Muara Besar
Brunei refinery
135,000 4 Brunei
Kochi Refinery
upgrading
310,000 2.5 India


Chart 1 demonstrates projects and investment amounts by different countries

0 20 40 60 80
China
India
ASEAN
Japan & S. Korea
Total Investment in USD (bln)
No. of projects
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As we can see from the chart, half of the major projects and massive amount of investments will be
seen in the downstream industry in the ASEAN region.

What are the key factors determining the destination the investment for a major refining and
petrochemical plant?

We have researched with the major operators and industry experts, here are the highest ranked 4
key factors determining the new project location:
1. Supply and demand for the refined products that determines long-term project economics
2. Developing long term strategic partners
3. State and local government incentive and business environment
4. Access of crude and feedstock
The long term economic return is ranked the most important factor when deciding the location of a
new refinery/petrochemical plant, followed by key partnership and joint venture development. With
no doubt, Asia is the top choice for developing these large projects due to the increased demand
that promises long term strategic growths.

In the next decade, there will be tremendous development in Asias downstream industry as the key
players actively seeking for new projects and partners to fulfil the increasing demand. The grass-root
refinery projects are taking time to develop and there should be a breakthrough in thinking and
action to overcome the constraints. - Mr. Rudy Radjab, President Director, PT. Kreasindo
Resources Indonesia


If you would like to find out more information about some of these projects, the key people involved
and some of their requirements, contact Shantal@clarionevents.asia