Ron Corn
Senior VP - Projects and Supply Chain, CPChem
Innovations in Managing Capital Cost of Ethylene Based Petrochemical Investments - Presentation & Panel Discussion
The Ethylene Producers Committee (EPC) of North America is sponsoring this session which will invite industry leaders to participate in a panel discussion to share their thoughts and ideas for delivering these facilities cost efficiently.
Changing energy market dynamics can have a significant impact on the economics of new investments, even in a cost advantaged feedstock scenario, as the cost of production curve flattens. Owners are under pressure from financial institutions and/or shareholders to improve capital costs and efficiency. This poses a challenge and an opportunity for engineering and construction businesses to come up with design, procurement, and construction approaches that deliver these mega projects cost efficiently and meeting the business objectives. The Ethylene Producers Committee (EPC) of North America is sponsoring this session which will invite industry leaders to participate in a panel discussion to share their thoughts and ideas for delivering these facilities cost efficiently. The session will be kicked-off with a presentation by Ron Corn, Senior VP - Projects and Supply Chain, CPChem, providing contextual background and to stimulate discussion.
Transforming Mega Project Delivery
Ron Corn, Senior VP - Projects and Supply Chain, CPChem
Shale related developments led to the renaissance of the petrochemical industry in North America. Last 5 plus years have seen an unprecedented pace of investment in the petrochemical industry. Last one year has seen a significant change in oil prices, dropping from nearly $100/bbl to below $50/bbl, resulting in a slow-down in investments. This slow-down is driven by lower margins, due to flattening of cost of production curve, and will prolong the payout of these investments. Ethylene based petrochemical complexes are capital intensive and industry is looking for improving competitiveness of new investments as compared to naphtha based plants in Asia and other regions. This presentation will explore some of the potential opportunities for managing the capital cost, one of the key element for mega project delivery, which will help improving competitiveness of petrochemical investments - particularly in North America.
