Chemicals Consulting

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

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.