EXMAR report 2023

EXMAR value chain & cargo To analyze EXMAR’s activities and the market drivers at work, it is important to understand how energy is generated and developed throughout the value chain and its use in consumption markets. Unlike dry cargo or crude markets, the products transported are not raw but semi or fully processed. For this reason, many different market forces influence the business, each with its own inherent complexity. LPG – Liquefied Petroleum Gas As shown in the LPG value chain below, LPG is produced during oil refining or extracted from natural gas liquid processing activities. LPG, mainly propane and butane, is a subsequent by-product. LPG can be used for various purposes, including feedstock in refineries and the petrochemical industry, fuel for vehicles, heating, agricultural needs such as crop drying, or to a lesser extent to feed power plants. With the continued global growth in natural gas production, increasing quantities of LPG are expected to be produced and shipped worldwide. NH 3 – Ammonia Ammonia (NH 3 ) is usually obtained by adding nitrogen through a steam reforming process with natural gas as the principal feedstock. It is mainly used as a basic component in the production of mineral fertilizers (urea, nitrates and NPK), civil explosives, or caprolactam (for industrial ends, such as synthetic textiles and airbags in cars). To support global decarbonization, the focus on ammonia production and storage is increasing globally, given its potential to decarbonize industries, serve as a carrier of hydrogen, and be used as a zero-emission bunker fuel for vessels. For almost 40 years, EXMAR has been a major transporter of ammonia on its fully refrigerated midsize gas ships with prismatic tanks. EXMAR has ordered six newbuild LPG/ammonia carriers of 46,000 cbm for delivery from 2025. Two are fitted with a dual-fuel ammonia engine. These ships will enable zero CO 2 emission transportation. Petrochemical gases Also depicted in the LPG value chain infographic, petrochemical gases are produced at the end of the petrochemical flow and derived from the steam-cracking process of oil and gas. These gases mainly consist of ethylene and propylene, which are used to make various polymers and plastics. VCM (Vinyl Chloride Monomer) and Crude C4s are mainly used to produce PVC and rubber products, respectively. LPG VALUE CHAIN UPSTREAM MARKET Refinery cracking Refinery cracking Naphta Gas oils LPG Petrochemical cracking Petchem gases Propylene VCM Ethylene Fuel Gas C1 Hydrogen Pygas BTX Heavy aromatics C5/C6 non armatics Fuel oil Crude C4s Butadiene Mixed butylenes Ethane Propane Butanes Condensate MIDSTREAM MARKET DOWNSTREAM MARKET POLYPROPYLENE 1 PVC 2 POLYETHYLENE 3 RUBBERS 4 STYRENES 5 Source: EXMAR 1 fibres, fabrics, injection mouldings, car appliances, toys,... 2 pipes, electric cables, signs, clothing, furniture, healthcare, flooring,... 3 food packaging, milk, water and juice bottles, power cables, chemical containersinjection mouled products,... 4 car tyres, sport shoes,... 5 foam, insulations,... Residential PANORAMA 15