Chemical Consulting & Advisory Services

Challenge
Butadiene is a monomer used in the production of a wide range of polymers, copolymers as well as many intermediate chemicals. The largest single use of butadiene is in the production of styrene butadiene rubber used primarily in the manufacture of tires. Alternative bio-based production routes are underway to meet the high demand for butadiene. The client wanted to explore novel ways to make butadiene from bio-based routes and approached Chemical Consulting for support.

Solution
S&P Global Consulting completed a detailed process engineering design review for producing 1,3 butadiene via a bio-based route. We also compared production economics for producing 1,3 butadiene via a bio-based route compared to conventional petrochemical routes.

Results
The resulting information enabled the client to understand the competitive landscape for this alternative process and informed the company's strategic plan.

Challenge
The use of specialty chemicals in oil and gas exploration, development and production is highly complex as a result of the number of different types of chemistries involved and the varied technical and economic aspects of their uses in different oil and gas formations around the world. In addition, booming demand in a number of oil and gas applications has made it difficult to separate market trends from a realistic, longer-term growth outlook. A client engaged Chemical Consulting to help them make sense of conflicting market information after an acquisition, in order to facilitate their planning, market and product strategies at both the end-user and the chemical manufacturers' level.

Solution
S&P Global performed a bottom-up analysis of present and forecast oil field chemical supply and demand, tailored to the client's product portfolio, both from the perspective of the broad applications by segments (such as emulsifiers in oil-based drilling muds) and chemistries by uses (such as guar gum viscosifiers in hydraulic fracturing).

Results
Our analysis enabled the client to develop a much more insightful marketing plan and strategy based on a realistic outlook for the market and the client's position within it.

Challenge
Acrylic acid and esters are perhaps the most versatile series of monomers for providing performance characteristics to thousands of polymer formulations. With the growing interest in bio-based alternative products, developing these comparable production economics is a key factor in understanding a company's competitiveness in this emerging industry. The client company wanted to explore novel ways to make acrylic acid from bio-based routes and approached Chemical Consulting for support.

Solution
Chemical Consulting developed a Class 3 design-and-production-cost estimate for producing acrylic acid via a bio-based fermentation route from sugar.

Results
The resulting information enabled the client to benchmark this process against conventional manufacturing routes, such as propylene oxidation or production from sugar via 3-hydroxy propionic acid (HPA) and could price its product competitively.

Challenge
A major beverage brand owner was seeking a competitive advertising advantage by moving from conventional, oil-based polyester to bio-based bottles and contracted S&P Global Consulting to analyze the options.

Solution
We first defined current and prospective technology platforms and for increasing the green content of polyester. Then we developed a market analysis to weigh the size of a potential green premium for bio-based polyester against a possible impact on packaging costs. We also recommended potential suppliers.

Results
Our analysis enabled the client to develop a strategy for the progressive greening of its bottles.

Challenge
One of Asia's major National Oil Companies (NOCs) retained Chemical Consulting to evaluate the investment viability for an ethane cracker and derivative complex in one of the US shale gas plays.

Solution
The engagement scope included detailed shale gas and associated NGL development, including ethane availability and US pricing by region; identification of the mid-stream investments needed to monetize gas/gas-liquids; uncovering investment opportunities in an ethane cracker and derivatives complex, including detailed evaluations of industry structure from E&P, to mid-stream, to petrochemicals; analysis and forecasting of supply/demand/trade dynamics along the value chain; and pricing projections and competitiveness evaluations. In addition, Chemical Consulting proposed potential business models for the NOC's participation/investment and supported the client in prospective partnering discussions.

Results
Our analysis enabled the client company to develop a clear picture of the opportunities and potential risks for their investment and determine their strategy for moving forward.

Challenge
An industry leader in supplying essential crop protection products was seeking to understand the cumulative carbon footprint for producing chloropicrin.

Solution
S&P Global Consulting drew up a list of assumptions about the supply chain from the natural gas liquids facility to the chloropicrin produced at the client's facility. With the help of a carbon footprint tool that we have developed for making this type of analysis, we were able to estimate the cumulative carbon footprint as tons of CO2 per ton of chloropicrin.

Results
Our analysis delivered the carbon footprint to support the client's funding initiative.

Challenge
A major oil and gas producer in South America was interested in defining attractive downstream investments in the petrochemical area. The objective was to define petroleum-based and renewable chemicals that consumed the existing feedstock base while maximizing growth potential.

Solution
Our consultants used S&P Global extensive chemical database containing information on product supply, demand, consumption, trade, economic outlook as well as critical process economic information, to generate a list of 50 potential petrochemical products and 30 renewable products, ranking the attractiveness of each. Workshops with the client served to narrow and rank the list. For the Top 5 product chains we developed bankable feasibility analyses.

Results
From this strategic ranking of over 80 potentially attractive chemical products based on critical market and company-specific criteria, we generated a "road map" for the company to use in their strategic investment planning.

Challenge
An investment firm was considering investment in a producer of citral from turpentine oil. They wanted to understand that company's process for making citral compared to processes used by its competitors as well as the market outlook for this industry.

Solution
S&P Global consultants performed due diligence, visited the manufacturing facility and generated a report on the target's manufacturing capabilities. We then used our extensive chemical database to assess the market outlook for the citral industry. We also conducted primary research with producers in China which was considered a major competitive region. Our team developed cost- of-production economics for citral compared to turpentine oil viand isobutylene.

Results
The client made a well informed bid for the target and completed the transaction.

Challenge
A major chemicals joint venture in the Kingdom of Saudi Arabia was seeking to raise approximately $20 billion in tranches through project finance. The lenders, comprising commercial banks, export credit agencies and export/import banks, sought independent market advice.

Solution
S&P Global Consulting provided independent forecasts of selected markets and the project's competitive position in each. We tested the JV's business plans and modeled its financial performance.

Results
The project is proceeding with a phased investment plan.

Challenge
Shortly after a major merger, a large publicly owned company declared bankruptcy. The creditors, who held $3 billion in unsecured debt, contracted Chemical consulting for support throughout the company's complex and protracted bankruptcy proceedings.

Solution
S&P Global Consulting analyzed pre-merger performance expectations of the financing and merging entities and testing the company portfolio for valuation. We also advised on the development of legal strategies and provided deposition support and expert testimony.

Results
The creditors were successful in recovering $450 million of the unsecured debt.

Challenge
A major Chinese state owned enterprise (SOE) with a broad portfolio identified 10 failing operating units, three of which were already in bankruptcy. The SOE requested S&P Global Consulting to identify transformation options and to develop implementation plans.

Solution
S&P Global Consulting performed extensive market and technology due diligence of the operating units and identified several business improvement options for each site. These included significant feedstock changes with associated cost reductions, major reinvestment and the adaptive reuse for brown field sites.

Results
The client plans to execute the recommended options and has appointed dedicated transformation managers to guide the process.

View the case study on bio-ethanol derivatives screening and pre-feasibility.

View the case study on North American PDH/PP Project S&P Global provides market insight and advice for strategy development.

View the case study: Harnessing a valuable fertilizer by-product in Morocco - A case study on commercial feasibility analysis.

View the case study: The new silk road: a case study on identifying strategic European M&A targets in specialty chemicals.