March 22, 2018
IHS Markit World Petrochemical Conference 2018
Naushad Jamani
Senior Vice President, Olefins & Feedstock
Olefins Market Developments:A Producer’s Perspective
2
Locations & Fast Facts
Number of Employees
2,800 worldwide
Annual Sales, 2017 (U.S.$)
$3.8 billion
LeadershipTodd Karran
President and CEO
Products
Ethylene and Polyethylene
Chemical Co-Products
Expandable Styrenic
Polymers
3
2017 North America Capacity Rankings as of July 31, 2017*
*Source: IHS Chemical and NOVA Chemicals
4
Milestones Along Our Journey
5
Proximity to Feedstock
6
Alberta / Western Canada
7
Ontario / Eastern Canada
8
US Gulf Coast (Geismar)
9
Increase in US NGL production: driven by growth in associated natural gas production
0
20
40
60
80
100
120
2001 2004 2007 2010 2013 2016 2019 2022 2025
Associated
Non-Associated
US associated and non-associated natural gas production
Source: IHS Markit
© 2018 IHS
Markit
Bcf/
d
0
20
40
60
80
100
120
2001 2004 2007 2010 2013 2016 2019 2022 2025
Marcellus
Utica
SCOOP/STACKWoodford
Niobrara
EagleFordBarnett
Bakken
Permian
Other
US natural gas production
Source: IHS Markit
© 2018 IHS
Markit
Bcf/
d
Confidential. © 2018 IHS Markit ™ All Rights Reserved.
10
Global PE Expansions by RegionWith Demand Growth
Source: IHS Chemical, Nexant, Industry Sources, NOVA Chemicals
• Global demand CAGR ~ 4%• 9 to 10 B lb per annum
• Actual supply growth less than
capacity • Global operating rates top
out near 90%
• Firm new supply falls short of
demand growth• NA supply growth is needed
• NA supply growth < 2 years
global demand growth
• Delays likely to exacerbate
the shortfall
-3.6
-1.8
0.0
1.8
3.6
5.4
7.2
-8
-4
0
4
8
12
16
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
f
2018
f
2019
f
2020
f
2021
f
2022
f
2023
f
2024
f
MTB lb
North America Europe/FSU Middle East Asia Latin America / Mexico Other
Demand
Growth
11
Signs Leading to Long Term Success
Market and Customer
Value Add
New Products & Markets
Execution
Safety,
Reliability,
Quality
Technology
Proprietary
Feedstock
Sustainable
Competitive
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