Expansion of the Panama Canal A Game Changer: Port of Houston and Beyond. Juan B. Sosa, Consul General of Panama CAPT Bill Diehl, USCG (Ret.

Transcription

1 Expansion of the Panama Canal A Game Changer: Port of Houston and Beyond Juan B. Sosa, Consul General of Panama CAPT Bill Diehl, USCG (Ret.)

2 The Panama Canal

3 How A Canal Works Suez Canal Type

4 New Third Set of Locks at the Panama Canal

5 Panama Canal Construction

6 The Panama Canal Connects 144 Trade Routes Across the Globe

7 2011 8,022 Ships The Port of Houston No. 1 U.S. Port in foreign waterborne tonnage Home to largest petrochemical complex in the U.S. (2 nd largest in the world) 2.1 million jobs per year nationwide Generates $500 billion in annual economic activity nationwide Pure Car Carrier 1% Tanker 45% LPG 5% Chemical Tanker 13% Pilot Moved Tug and Barge 5% General Cargo 11% Container 11% Bulk 8% ,338 Ships Annual Vessel Arrivals Port of Houston Pure Car Carrier 1% Tanker 34% LPG 7% Chemical Tanker 16% Pilot Moved Tug and Barge 5% Bulk 12% General Cargo 12% Container 12%

8 Houston Crude Oil Imports by Quality In thousands of barrels Light Sweet Light Sour Medium Heavy Sweet Heavy Sour *Source EIA 2015

9 MBD 1,400,000 Estimated Petroleum Exports for the Port of Houston (MBD) 1,200,000 1,000, , , , , Refined Products Chemicals NGLs Crude Oil *Source Greater Houston Port Bureau, EIA

10 $100 Billion+ in Planned U.S. Petrochemical Investment Pacific Northwest Northwest Innovation 2018 New Methanol (2 locations) Tesoro 2017 New Xylene Houston Ship Channel and surrounding, TX Ascend 2015 New propane PDH Celanese-Mitsui JV 2015 New methanol Chevron Phillips Chemical 2014 New hexane Chevron Phillips Chemical 2017 New ethylene Enterprise 2016 New propylene Exxon Mobil 2017 New ethylene Exxon Mobil 2016 New polyethylene Formosa 2018 New ethylene Formosa 2016 New propylene Ineos 2014 Ethylene debottleneck LyondellBasell 2015 Ethylene expansion LyondellBasell 2014 Propylene debottleneck LyondellBasell 2014 New polyethylene Flint Hills (Petrologistics) TBD New PDH Freeport Old Ocean, TX BASF-Yara New ammonia BASF 2019 Methane-to-propylene Dow 2017 New ethylene Dow 2015 New PDH Dow 2018 New propylene Dow 2017 Gas to Liquids Dow Agrosciences TBD Herbicide CP Chemical 2017 Ethylene expansion CP Chemical 2017 New polyethylene Corpus Christi / Point Comfort, TX LyondellBasell late-2015 Ethylene expansion Formosa 2017 Ethylene dichloride Formosa 2016 New PDH Formosa 2016 New propylene M&G Group 2016 New PET M&G Group 2016 New PTA Oxy/Mexichem JV 2017 New ethylene (2 units) Iowa LyondellBasell 2014 Ammonia expansion Orascom (OCI) 2015 New fertilizer Iowa Fertilizer 2015 New Ammonia OK Koch 2016 Urea expansion LSB Ind New ammonia Beaumont Orange, TX LANXNESS 2016 Butadiene rubber Orascom Construction (OCI) 2016 New methanol Indiana Midwest Fert New ammonia Shell Monaca, PA 2018 New ethylene Parkersburg/Natrium, WV Odebrecht TBD New ethylene Dominion 2014 Gas fractionation restart and expansion Mobile, AL Huntsman Chemical 2015 Epoxy expansion Baton Rouge New Orleans Corridor, LA Axiall / Lotte 2018 Ethylene expansion BioNitrogen 2015 New UAN Eurochem 2017 New ammonia CF Industries 2015 Ammonia expansion Methanex 2015 Methanol migration Methanex 2016 Methanol migration S. LA Methanol 2016 New methanol Valero 2016 New methanol Dyno Nobel 2016 New ammonia Lake Charles, LA G2X 2017 Methanol-to-gasoline LyondellBasell late-2015 Ethylene expansion Sasol 2018 New ethylene Sasol 2016 New polyethylene Westlake 2015 Ethylene expansion *Notes: Date reflects anticipated year in-service, red font reflects construction in progress Sources: ICIS, Company announcements, Kirby Corp.

11 US Producers to Target Key Markets

12 Waterborne Foreign Trade Houston - Millions Metric Tons Imports Exports Houston Total Trade

13 The Canal Shifts the Market to the USGC/USEC Cost Based on: 4,000 TEU Vessel Canal Tolls January 2011 $ / MT Bunker (HFO) Actual Charter Rate Cost Based on: 8,000 TEU Vessel Canal Tolls January 2011 $ / MT Bunker (HFO) Actual Charter Rate

14 Predictability Environmental Safety Security Dredging Efficiency Challenges

15 Dredging Challenges Harbor Maintenance Trust Fund PHA Study Wider vs. Deeper Dredging Accommodating Post- Panamax Ships

16 Waterside Congestion Inefficient scheduling Increase in non-productive movements Increase in waterway congestion

17 Shoreside Congestion Insufficient Supply chain growth Transportation Work Force Storage

18 Questions/Comments?