The petrochemicals industry would benefit from positioning itself as providing greener products for plastics from renewable feedstocks and being viewed as more environmentally responsible, several speakers at the APIC industry gathering said Friday.
Various economic protests of late show that the consuming public is seeking change and may vote with their buying decisions when it comes to consumer goods, Aditheb Bisalbutr, chairman of Thailand's Petrochemical Industry Club, said at the Asian Petrochemical Industry Conference in Kuala Lumpur.
"APIC would do well to reshape Asia's petrochemical industry through technology, greener processes, and [a] better relationship with society as a whole," he said. The comments came as leaders from country-specific trade groups gave speeches.
"With the rise of the Occupy movement around the world and similar people's power movement -- the likes of which are affecting buying decisions -- it's highly advisable to improve our industry's social engagement and commitments -- something quite unheard of a couple of decades ago," Bisalbutr said. "In other words, it's better to engage people than to overlook them."
Yusa' Hassan, president of the Malaysian Petrochemicals Association, which hosted the APIC meeting, also addressed this issue during a wide-ranging speech. "One of the megatrends is the increasing public pressure for the use of green resources in the production of consumer goods that stems from an increased awareness of issues related to global warming and the need for more sustainable use of natural resources," Hassan said.
As it is now, many in the general public simply view the petrochemicals industry as a polluter, said Wim Roels, chief executive officer of Borouge Pte, Borouge's marketing and sales company based in Singapore.
Yet, sustainability is coming up a lot as an issue for the industry and with customers, he said. Borouge is a joint venture between Abu Dhabi National Oil Company and Austria's Borealis. The JV is building the world's largest integrated polyolefins plant with the Borouge 3 expansion in Abu Dhabi by adding 2.5 million mt by mid-2014 at the plant, which had tripled its annual production capacity to 2 million mt in 2010. It is also investing in plants and logistics hubs in Asia, according to a brochure distributed at APIC.
"I believe sustainability is an opportunity," Roels said. Petrochemicals products should be viewed as contributing to sustainability, he said. For example, durable and flexible plastic pipe systems for water can prevent leaks that in existing, old systems today waste up to 40% of water supply, he said. Also, using plastics components in cars can reduce their weight and improve mileage, thus reducing fuel usage. About 200 kilograms of polypropylene can replace 350-500 kg of metals and other materials in automobiles.
Although petrochemicals can provide such environmentally friendly solutions, that is not the image of the industry, Roels said. Instead, it is an image of pollution, he added.
"We have to bring this message to society," he added. "That we have a real contribution to the sustainability of the world."
Preston Chen, chairman of the Petrochemical Industry Association of Taiwan, also said the petchems industry has an image problem. In Taiwan and other countries, petchems projects have been rejected due to "fierce anti-pollution protests," he said. Environmental protection, conservation and pollution reduction are key issues, Chen said.
"We believe that petrochemical industry development and environmental protection could be carried out in parallel," he added.
The industry should seek to strike a balance between economic and sustainable development, Datuk Wan Zulkiflee Wan Ariffin, chief operating officer and EVP of downstream business for Malaysian state-owned Petronas, said in a separate speech. "It is critical for us to produce solutions throughout the value chain" and provide such offerings "if consumers are willing to pay premiums for greener products," he said during a panel discussion that covered a range of topics.
Even the Petronas Refinery and Petrochemical Integrated Development (RAPID) project, proposed at Pengerang, Johor, which would involve a 300,000 b/d refinery supplying feedstocks to a petchems plant with a naphtha-fed steam cracker, could be characterized as more environmentally responsible, according to Wan Zulkiflee. The project would make Petronas "more self-sufficient" for supply and meet "more stringent environmental regulations," he said. A decision on final investment for the MR60 billion ($19.1 billion) project is slated for next year.
