From Oil to Polymers - Total Petrochemicals USA

From Oil to PolymersIntegrated World-class Petrochemicals

Total’s PetrochemicalsA new identity witha long-standing historyIn February 2004, Total announced aproject to reorganize its Chemical Branchby establishing more autonomous,market-oriented and reactive groups. Thisreorganization took the shape of the creation,alongside Petrochemicals and Specialties,of a decentralized structure comprisingChlorochemicals, Intermediates andPerformance Products.On October 1, 2004 the Petrochemicalsbusiness changed its name to TotalPetrochemicals. Operating under a newname, the Company continues to offer thesame great products and services. As a fullyintegrated operation, Total Petrochemicalsincludes base petrochemicals fromsteamcrackers and certain refinery processingplants - olefins (ethylene, propylene), C4fractions and aromatics (benzene, toluene,xylene, styrene) - as well as the commoditypolymers they produce (polyethylene,polypropylene, polystyrene, elastomers).With the new identity clearly establishingroots within the Group, Petrochemicals’ aimis to capitalize on their synergies with refining(which have increased with the latest fuelspecification requirements), strengthen theircompetitiveness in Europe and the UnitedStates, and speed up their development in fastgrowing regions, primarily Asia.The Total GroupThe businesses and activities of Total, the world’sfourth leading oil and gas Group, cover the entire oilchain: oil and gas exploration and production, refiningand distribution, trading, as well as gas and power.Total is also a major player in the chemical industry.The Group employs over 110,000 people in over 130countries on all five continents.Total Petrochemicals International Headquarters in Brussels 4 divisions:• Base Petrochemicals (Olefins, C4 fractionsand Aromatics)• Polyethylene• Polypropylene• Styrenics (Styrene, Polystyrene andElastomers) 18 industrial facilities in the world 3 research centers:Feluy (Belgium), LaPorte (US), Lacq/Mont(France); Lyon Technical Pole (France) 2003 sales: 6.7 billion euros Personnel: 7,500 employees on3 continents22%U.S.5%Asia6%Rest of Europe29%Belgium38%France World rankings:Source: Company data vs PTM 03Q4 (capacities 2004)• n° 3 in Polypropylene• n° 3 in Polystyrene• n° 4 in Aromatics

A global presence,a manufacturing activitybuilt on integrationAs part of an oil group, Total Petrochemicalsgains extensively from integration within refining,particularly in Europe and the United States.Based on this industrial rationale, which plays agreater role than with many of its competitors,the Company operates large-scale facilitiesaround the world, and in particular in two of theworld’s largest oil and petrochemicals centers:> in the United States, Texas and Louisianaaccount for 80% of all Americanpetrochemicals activities;> in Europe, in the Antwerp-Rotterdam zone,connected to the Ruhr basin, the hub of 50%of Europe’s petrochemicals activity.In addition, in France, Total Petrochemicals runsthree major facilities, in Normandy, the Lorraineregion and the Rhône basin, which are largelyintegrated within the country’s petroleum andpetrochemicals platforms.Finally, in Qatar, the Middle East, South Korea,Singapore and China, Total Petrochemicalsboasts industrial facilities with majordevelopment potential.MilfordHavenSynergies betweenRefining and Petrochemicals(example: Gonfreville, France)The Normandy refineryImminghamThe Gonfreville facilityIn Europe, the Group’s refineries supply 50% ofsteamcracker feedstock. 2/3rds of steamcrackerfeedstock supplied by the Total Group’s refineriesare used in petrochemicals manufacture,which then returns to refining 12% of the chargeprocessed in the steamcrackers.VlissingenDunkirkGonfrevilleFeluyAntwerpLeunaIntegration of refineries andsteamcrackers in EuropeDongesGrandpuitsCarlingIn just over six years, volumes exchangedbetween refining and petrochemicals havealmost doubled. For example naphtha, the mainmaterial used in steamcrackers and supplied bythe Total Group’s refineries, has increased from2.5 million metric tons in 1997 to approximately4 million metric tons today.LavéraFeyzinLa MèdeSteamcrackersTotal RefineriesPipelines

Port Arthur (1) (Texas)StalybridgeCopenhagenIndustrial facilityLa Porte (Texas)Bayport (Texas)Carville (2) (Louisiana)ParisLacq/MontBarcelonaWarsaDüsseldorfFeluyZürichMilanLyonResearch centerLyon Technical PoleSales officeTotal Petrochemicals marketsits products in approximately110 countries through bothsales offices and third partyagents.HoustonLa PorteAntwerp (3) (Belgium)Feluy (Belgium)Carling-Saint-Avold (France)Gonfreville (France)Notre-Damede Gravenchon (France)AljiersLavéra (4) (France)Feyzin (5) (France)El Prat del Llobregat (Spain)Stalybridge (United Kingdom)Total PetrochemicalsSantiagoLa Porte (Texas)Total Petrochemicals operates the mostcompetitive plants in the United States, inLaPorte and Bayport, Texas, and in Carville,Louisiana. These major polymer facilities -with annual capacities in excess of one millionmetric tons - benefit from the proximityof the Port Arthur refinery, and one of theworld’s largest crackers, commissioned in2001 by Total and BASF.Antwerp (Belgium)In Belgium, in the Antwerp port complex,Europe’s leading petrochemicals hub, TotalPetrochemicals’ activities revolve aroundthe Group refinery which produces the rawmaterials for the major Antwerp and Feluypetrochemicals plants, both facilities beingconnected by pipeline.El Prat del Llobregat (Spain)In Spain, Total’s petrochemicals activitiesare centered in El Prat del Llobregat, nearBarcelona, where the Company operatespolystyrene production plants.Gonfreville (France)Based in the Basse-Seine industrial basin,the Gonfreville facility boasts a major integrationwith the region’s industrial fabric,both upstream with over 20 pipelines linkingit up to the Total Normandy refinery,and downstream with the pipelines allowingit to supply customers in the Le Havre andLillebonne-Notre-Dame-de-Gravenchonareas. Gonfreville’s production covers basepetrochemicals as well as polymers. It representsaround 15% of commodity plasticsmanufactured in France.Stalybridge (UK)With its industrial and technical know-how,the compact polystyrene plant in Stalybridge,United Kingdom, supplies commodity grades tothe UK and Irish markets, as well as specialtygrades (PS compounds) to the European consumerelectronics market.

IstanbulBeijingDaesan (6) (South Korea)Messaied (7) (Qatar)DohaHong KongAyuthaya (Thailand)ColomboKuala LumpurTokyoChongqingShanghaiTaipeiGuangzhouManilaHo Chi MinhJakartaFoshan (*) (China)Singapore(1) Port Arthur steamcracker:40% Total Petrochemicals - 60% BASF(2) Styrene: 50% Total Petrochemicals- 50% General Electric(3) Fina Antwerp Olefins: 65% Total Petrochemicals- 35% Exxon Chemicals(4) Lavéra steamcracker (operated byNaphtachimie: 50% Total Petrochemicals- 50% BP Chemicals)(5) Feyzin steamcracker(57.5% Total Petrochemicals- 42.5 % Solvay, operated by Total Raffinage)(6) 50% Samsung General Chemicals- 50% Total Petrochemicals(7) Qapco: 80% Qatar Petroleum- 20% Total Petrochemicalsaround the worldMelbourneCarling-Saint-Avold (France)Located in the Moselle region of EasternFrance, the Carling-Saint-Avold petrochemicalssite enjoys an outstanding geographiclocation, at the crossroads of industrialEurope. An extensive pipeline network linksup its facilities in particular to most Totalrefineries in France as well as to the Viriatethylene underground storage facilitiesin the Ain region. Its activities range frombase petrochemicals (ethylene, propylene,benzene, styrene) to commodity plastics(polyethylene and polystyrene).Daesan (South Korea)Total Petrochemicals consolidated itsposition in Asia by creating a 50/50 jointventure with Samsung General Chemicalson August 1st 2003. Based in Daesan,South Korea, the JV produces and sells acomprehensive range of petrochemicalsand polymers, with a major growthpotential to supply buoyant markets.Messaied (Qatar)In Qatar, Total Petrochemicals has an interestin an ethane cracker and a polyethylene(LDPE) plant in Messaied, in the South-East of the country, through Qapco(*).On the strength of the Group’s extensiveupstream presence, Total Petrochemicalshas also invested, via Qatofin(**), in aproject to build a new 1.3 million metricton ethane cracker in Ras Laffan, in theNorth-East of the country, and a new polyethylene(LLDPE) plant in Messaied. Theseprojects will help the Company consolidateits positions in the development of a worldscalepetrochemicals hub serving the Asianmarkets.Foshan (*) (China)Located in Foshan in the GuangdongProvince, China, and commissioned in April2003, this 100 kt/year polystyrene plant hasenabled Total Petrochemicals to consolidateits styrenics business in Asia, where italready ran an 80 kt/year polystyrene plantin Singapore.(*) ex Sanshui(*) Qapco: Total Petrochemicals 20%, Qatar Petroleum 80% joint venture(**) Qatofin: Total Petrochemicals 36%, Qapco 63%, Qatar Petroleum 1%joint venture

TOTAL PETROCHEMICALS USA, INC.P.O. Box 674411Houston, Texas 77267-4411Telephone: 281-227-5000www.totalpetrochemicalsusa.comOctober 2004 - US - Photos : © Photo collection ATOFINA/Total Petrochemicals - Photo cover : Michel Clinckemaille - production: www.concerto.be