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Chemical Consulting: Commercial and Feasibility Studies

Learn more about Chemical Consulting: Commercial and Feasibility Studies

Deep insight and robust analysis, provided by highly credible and experienced consultants, is crucial to effectively evaluate and pursue opportunities and new business ventures.

Built on IHS Markit reputation for integrity and our comprehensive industry intellectual capital and proprietary information, our consulting team has developed extensive expertise performing commercial analyses and project feasibility studies to companies operating at any point across the chemical value chains.

Combining the unmatched breadth and depth of the information and insight provided in our multi-subscriber databases and reports, with our consultant’s first-hand industry experience, we uniquely understand the complex and dynamic chemical industry. With experience ranging from advising company executives, business development, analysts and project managers, IHS Markit is equipped to provide guidance and critical thinking throughout project planning, development and execution phases.

We can help answer:
  • Where should my company’s next capital investment be?
  • How can I access competitive feedstocks?
  • Which are the growth markets and how can I position my business to take advantage of growth opportunities?
  • What is the commercial and financial feasibility of this project? Does it look attractive and how does it rate versus competitors?
  • What is the market outlook and how is the market impacted by global mega-trends, regional and local factors?
  • How is the market impacted by competing materials, substitution and regulations?
Our capabilities include:
  • Commercial planning
  • Competitive evaluation and benchmarking
  • Scenario analysis
  • Portfolio reviews
  • Primary market research
  • Trend analysis
  • Feasibility studies
  • Production cost benchmarking
Find the answers you need for your chemical of interest
CONTACT AN S&P GLOBAL CHEMICAL EXPERT

Qualifications and Experience

This list is not exhaustive and is intended to serve as an introduction to Chemical Consulting’s breadth of services offered:

Project Name Project Description
Petrochemicals Master Plan Study S&P Global completed a comprehensive Master Plan study for the development of the petrochemicals sector for a client in the UAE to support the Emirate’s Vision 2030. S&P Global carried out comprehensive product screening and selection process and provided market, technology and cost competitiveness analyses, project economics, social and economic impact assessment of the Master Plan. The master plan was translated into a business case to show the impact on the economy of the Emirate, its competitive position and overall economic attractiveness. The Master Plan shows the potential for new industry clusters to emerge in downstream industries reliant on petrochemicals as primary inputs. It also includes a socioeconomic impact analysis which catalogs the social and economic impacts the region can expect.
Feedstocks Sourcing A major consumer of C5 and C9 feedstocks in Europe was facing a feed-sourcing issue as cracker in Europe move to lighter feedstocks. S&P Global utilised the in-depth knowledge of its olefins’ experts who have day-to-day contact with major players in the olefins industry to model every cracker in Europe, the Middle East and Africa, determining the volumes of co-products produced by each cracker over the next ten years. Also the engagement provided ideas for potential new sources and valuation ranges.
Market Study on Lactic Acid A major global petrochemical company with interests in the production and marketing of lactic acid wished to develop a deeper understanding of the lactic acid markets, outside of its use in PLA. S&P Global carried out a major primary research exercise to understand the applications for lactic acid outside of its use as a polymer for making “green” bottles and the drivers for growth in the other applications. S&P Global was able to assess the major competing acids and how the price of lactic acid impacts its penetration of these markets.
CIS Petrochemical Producer, Feasibility Study S&P Global undertook a major study for a CIS client who had a large amount of gas condensate feedstock which they wished to monetize. The study included a review of the best location to convert this feedstock to petrochemicals along with a range of potential configurations at each location, informed by an analysis and forecasts of markets for polymers, aromatics and synthetic rubbers, technology and competitiveness assessment and financial evaluation (cash flow modelling).

Case Studies

Cost Competitiveness Benchmarking for LAB and n-Paraffins

Challenge: A company that had successfully launched an n-Paraffin and Linear Alkyl Benzene (LAB) plant reached 100 percent of utilization levels. The client wanted to assess its position relative to major competitors in its target markets and identify new market opportunities.

Solution: Chemical performed a cost-competitive benchmarking evaluation as well as a market update.

Results: The client received a study that evaluated cash costs and full costs based on each LAB producer’s regional economics, integrated or non-integrated position and scale, with a focus on the impact of feedstock costs. The study included analysis of the impact of GTL paraffins on the LAB plant’s cost structure.

North American Ethylene and Derivatives Industry Analysis

Challenge: A client wanted an analysis of the long-term evolution of the North American ethylene industry.

Solution: Chemical performed an ethylene cost curve and scenario analysis to assess the competitive position of individual producer plants and to indicate advantageous and disadvantageous production costs under various economic and energy scenarios.

Results: The study compared the apparent portfolio strategies of the major producers of ethylene glycol (MEG), ethylene oxide (EO) and EO derivatives, including MEG, ethanolamines, glycol ethers and surfactants. The study summarized the apparent producer strategies, as well as offered a qualitative assessment of the potential costs and benefits of selecting one strategy over another.

Chlor-Alkali Feasibility Study

Challenge: Chemical was asked to review the feasibility of a proposed new chlor-alkali complex in the Kingdom of Saudi Arabia.

Solution: We conducted a study that included a project description, project structure, feedstock requirements, product market analysis, technology assessment, capital investment requirements, operating and fixed costs and economic analysis.

Results: Chemical provided ongoing updates and support during discussions with lenders, as well as conclusions and recommendations as to the marketability and pricing of the products, the likely ability of the proposed complex and the economic feasibility of the overall project.

Company Benchmarking & Polypropylene Market Analysis

Challenge: A major North American polypropylene buyer engaged Chemical to assess its current procurement methodology and develop more desirable practices and supplier relationships.

Solution: We conducted a polypropylene study for the purpose of preparing senior executives for high-level discussions with their supplier base. The study incorporated the following scope of work items: assessment of resin procurement processes compared and contrasted to other resin procurement organizations, general current polypropylene resin market conditions, benchmarking and best practices of commercial terms, pricing, and rebate structure that other resin buyers have with suppliers in their market space and current volume demand and its percentage of their suppliers’ capacity. We also conducted interviews with PP suppliers and users in three major regions.

Results: Chemical provided a high-level procurement plan that identified areas of improvement and normalization in order to assist the client in presenting a more competitive and global front for its suppliers and other market participants.

Plant-Siting Opportunities for a New Phenolic Resins Plant in China

Challenge: Chemical aided one of the world's leading developers and manufacturers of chemical intermediates in locating a long-term, strategically advantaged plant site to expand its phenolic resin business in China.

Solution: Our analysis of optimal candidate sites included identifying established chemical parks with substantial standing investment in the targeted regions with 50,000 square meters of available land and identifying merchant phenol, formaldehyde, methanol and isobutylene suppliers and proximity to target sites.

Results: We provided a full report with an executive summary containing our opinion on the suitability of potential candidate sites relative to the criteria outlined in the scope, as well as documentation pertaining to the site identification and data gathering.

Supply and Demand Analysis and Large Buyer Identification for Selected Products

Challenge: Chemical aided a major consumer product client with a market overview for selected feedstocks and polymers as well as identification of major plastics resin purchasers in certain categories and geographies.

Solution: Our overview included global PET, PET feedstocks (PTA and MEG) and olefins (Ethylene and Propylene) supply and demand, both globally and by a specific geographic regional breakdown defined by the client.

Results: The client received a customized analysis that included identification of both existing capacity, future planned capacity, demand, net imports and exports and operating rates for the regions, as detailed by the client along with the identification of the top five global and North American buyers of plastics resins.

Events

37th Annual World Petrochemical Conference

March 22-26 2022 | Global The World Petrochemical Conference is heading back to Houston in 2022!Navigating towards Net-Zero: Seeking a Sustainable and Valuable Chemicals...
Learn more

The Road to CERAWeek 2022: Live Conversation Series

February 03-15 2022 | Global The Road to CERAWeek 2022 | Pace of Change: Energy, Climate and Innovation is a 3-part weekly CERAWeek Live Conversation covering clean energy,...
Learn more
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