Understanding the key drivers, metrics, and developments across processes in the Global Syngas industry anchored by an industry-leading database of syngas projects across feedstocks and outputs worldwide.

1. UPSTREAM | MIDSTREAM | DOWNSTREAM | FUEL & TRANSPORT
Global Syngas Overview - 2019
www.stratasadvisors.com
Presenter: Habib Khan
Contact: John Paisie
Executive Vice-President
jpaisie@stratasadvisors.com
TEL +1.713.260.4628 / MOBILE +1.832.517.7544

2. © Stratas Advisors. All rights reserved. 2
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Integrated Service Offering
Upstream
Macro & Geo-Political
Midstream
Downstream
Fuel & Transport
LT & ST Price Forecasting

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Stratas Advisors Syngas Capabilities
• Understanding the key drivers, metrics, and
developments across processes in the
Global Syngas industry
– Methanol, GTL & CTL, Ammonia, UCG, Direct
Reduced Iron, and many more.
• Anchored by industry-leading database of
syngas projects across feedstocks and
outputs worldwide.
– Natural Gas, Coal, Waste, Biomass,
Residuals, coke-oven gas.
• Evaluating projects and proponents through
qualitative and quantitative metrics
– Corporate and process analysis
• Forecasting plant developments, capacity
additions, and changes in output
• Economic evaluation for production costs,
CAPEX, OPEX, and potential project
revenue and pricing.
Strength Across Processes

5. © Stratas Advisors. All rights reserved. 5
Agenda
• Global Syngas Market
– Capacity share by application
– Capacity share by feedstock
– Capacity share by product
– CAPEX in investment projects by product
• Global Syngas Market Trends
– Stock market and oil market outlook. Correlation to investment projects.
– Global syngas market trends by application
– Global syngas market trends by feedstock
– Global syngas market trends by product
• Syngas Project Scores
• Conclusions

6. Global Syngas Markets

7. © Stratas Advisors. All rights reserved. 7
Global Syngas Capacity Share by Application
Capacity as percentage of application
• 74.5%, of syngas capacity
are employed in chemicals
production – nitrogenous
fertilizer, methanol, industrial
chemicals, DME etc.
• 10.6% of capacity provides
synthetic natural and gaseous
fuel.
• 11.6% is in GTL and CTL
sector.
• 3.3% capacity is used for
power production.
Capacity Share by Application

8. © Stratas Advisors. All rights reserved. 8
Global Syngas Capacity Share by Feedstock
Capacity as percentage of feedstock
• Coal and natural gas are the
two dominant feedstocks for
syngas
• Goal’s share is 48.3% and
natural gas’ share is 46.5%
• Refining residual such as
petcoke, refinery residue and
coke oven gas serves as
4.3% syngas feedstock
• Biomass and waste constitute
less than 1% of syngas
feedstock
Capacity Share by Feedstock

9. © Stratas Advisors. All rights reserved. 9
Global Syngas Capacity Share by Product
Capacity as percentage of products
• 33.8% syngas capacities
serve nitrogenous fertilizer
production.
• 22% is used for methanol
production
• 11.6% is used for liquid fuels
such as gasoline an diesel
production
• 10.6% produces synthetic
natural gas and gaseous fuel
Capacity Share by Product

10. © Stratas Advisors. All rights reserved. 10
Global Syngas in-Development CAPEX Share
by Product
CAPEX in projects by products
• Syngas projects for fertilizer
and liquid fuels are worth
USD 24 billions each
• Syngas projects for methanol
and power generation are
worth USD 15 billions each
CAPEX by Product Units: Billion USD and %

11. Global Syngas Market Trends

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Stock Market Forecast
Is a recession near? Yield Inversion
• When 2 Y bond yield becomes higher than 10 Y bond yield is called yield inversion
• A recession usually follows about in a year. Only once in last 50 years, a recession did not follow yield
inversion
• Recession can be short lived like in 2001

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Dow Jones Industrial Average Trend
Will there be a recession next year? Unlikely!!
• Dow Jones, S&P 500 and NASDAQ are in 5th wave of Elliot wave structure. It is an upward but choppy
wave.
• After 5th wave, a correction or a recession comes. However, this 5th wave is actually a part of wave 3 of a
bigger wave (larger time frame). So, the next wave is a 4th wave, which is usually shallow.
• So, we expect a decent pull back in the market but not a full blown recession.
• Global stock market trend more or less follows US stock market trend

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How does an Elliott Wave Look Like?
FYI: A Classic Elliott Wave

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Correlation between Market Health and
Investment Projects
• In a weak market or during a recession, cost of
borrowing money becomes expensive. It’s difficult to
obtain loans
• Investors are scared to invest in any kind of
investment projects.
• A lot of investment projects get delayed or cancelled.
• These facts may not be true for China, which has
most of the syngas projects.

16. © Stratas Advisors. All rights reserved. 16
Long Term Crude Oil Price Outlook
2000-2040 • Oil price bottomed in
early 2016
• Our conservative
forecast: oil prices remain
relatively weak but avobe
the 2016 bottom in the
next couple of year.
• Oil price is projected
increase in the long run
as current supply glut will
be overtaken by demand
increase in Asia, Africa
and Latin America.
• Higher oil prices will
provide driving force
syngas capacity
expansion for chemicals,
liquid fuels and gaseous
fuels.
Crude Oil Prices Units: USD/BBL

17. © Stratas Advisors. All rights reserved. 17
Global Syngas Capacity Trend by Application
Key Insight: Capacity Trends by Application
• Growth of syngas capacity
was very strong from 2010 to
2017
• CAGR for chemical, gaseous
fuels, liquid fuels and power
generation were 10%, 26%,
18% and 12% respectively.
• CAGR for these applications
from 2018 to 2024 are
projected to be 3%, 16%, 9%
and 5% respectively. Low oil
price is the main cause
behind this slow down.
• As oil price keeps rising,
number of announced
projects will pick up after
2020.
• Syngas capacity CAGR for
chemicals, gaseous fuels,
liquid fuels and power
generation are projected to
be 5%, 20%, 12% and 15%
after 2024.
Capacity Trend by Application Units: MW Thermal

18. © Stratas Advisors. All rights reserved. 18
Global Syngas Capacity Trend by Feedstock
Key Insight: Feedstock Trends
• Coal gasification almost
exclusively headed Asia’s
way, with a majority in China.
Supported with long-term
high NG and crude pricing.
• Natural gas will gain
percentage of feedstock
share.
Capacity Trend by Feedstock Units: MW Thermal

19. © Stratas Advisors. All rights reserved. 19
Global Syngas Capacity Trend by Product
Key Insight: Product Trends
• Syngas capacity for fertilizer
production will grow steadily.
• Methanol, SNG/gaseous
fuels and liquid fuels from
syngas will grow at higher
rate in the long run.
• Overall feed trend will
definitely follow capacity
trend – a relatively slow
growth till 2024. Growth will
increase afterwards.
Capacity Trend by Product Units: MW Thermal

20. Syngas Project Scores

21. © Stratas Advisors. All rights reserved. 21
Syngas Projects Scoring by Feedstock
Coal
Plant Country Type
Feedstock
Category
Analyst
Factored
Score
Projection
Start Year
Nabinagar Super Thermal Power ProjectIndia coal to power Coal 450 2020
Patratu Thermal Power Station India coal to power Coal 450 2022
Shanxi Xiangkuang Hongtong Coal
Chemical Co., Ltd
China
coal to chemicals (ammonia,
urea, olefins, etc.)
Coal 448 2020
Yitai Group Ordos CTL 2 China coal to liquids Coal 424 2020
Air Products Lu’An SNG China coal to SNG Coal 422 2020
Yitai Group Xinjiang CTL China coal to liquids Coal 413 2021
Xilinhe Coal Chemica Project China
coal to chemicals (ammonia,
urea, olefins, etc.)
Coal 403 2020
Xing'an Chengtai Energy Chemical Co.,
Ltd
China coal to hydrogen Coal 403 2021
Ordos Jinchengtai Chemical Co., Ltd.
MEG Plant
China coal to MEG Coal 400 2020
Jushi Energy Co Ltd China coal to synthetic wax Coal 400 2020
Shaanxi Yulin Energy Group China coal to MEG Coal 400 2021
Yankuang Yulin methanol plant China coal to methanol Coal 400 2020
Shaanxi Coal and Chemical Industry
Group Yulin Chemical Co., Ltd.
China coal to MEG Coal 400 2021

22. © Stratas Advisors. All rights reserved. 22
Syngas Projects Scoring by Feedstock
Natural Gas
Plant Country Type
Feedstock
Category
Analyst
Factored Score
Projection
Start Year
NAKHODKA FERTILIZER PLANT Russia gas to methanol Natural Gas 480 2022
Oltin Yol GTL Uzbekistan gas to liquids Natural Gas 477 2020
Hami Hengyou Energy Chemical
Technology Co., Ltd
China
methanol to
propylene
Natural Gas 450 2022
Dangote Refinery Nigeria Gas to SNG Natural Gas 400 2022
Air Products Geismar Steam Methane
Reformer
USA Gas to SNG Natural Gas 400 2020
Brass Island Petrochemicals Nigeria gas to chemicals Natural Gas 394 2020
Arian D-Polymer Petrochemical Industries
Co.
Iran gas to chemicals Natural Gas 380 2022
Fateh Kimia Co. Iran gas to chemicals Natural Gas 380 2025
Ramagundam Fertilizer Plant GTC 2 India gas to chemicals Natural Gas 351 2020
Linggu Chemical Co. Ltd Ammonia Plant China
gas to chemicals
(ammonia, urea,
olefins)
Natural Gas 350 2021
Anhui Haoyuan Chemical Group China SNG to MEG Natural Gas 350 2020
Hubei Fertilizer Company, SINOPEC China SNG to Ethanol Natural Gas 350 2025
Midwest Posey Fertilizer USA Fertilizer Natural Gas 350 2020

23. © Stratas Advisors. All rights reserved. 23
Syngas Projects Scoring by Feedstock
Refinery Residue
Plant Country Type
Feedstock
Category
Analyst Factored
Score
Projection
Start Year
Jizan IGCC Power Plant Saudi Arabia Oil residue to power
Refining
Residual
498 2019
Jianyuan Coal Coking Co., Ltd. China Coal to chemicals Coke Oven Gas 400 2020
Ruizhi Modern Coal Chemical
Technology Co., Ltd
China COG to Methanol
Refinery/Coke-
Oven Gas
400 2019
Shanxi Jiantao Lubao Chemical
Co., Ltd.
China COG to methanol
Refinery/Coke-
Oven Gas
400 2019
Xintai Zhengda Coking Co. Ltd China COG to methanol Coke Oven Gas 400 2019
Assam-Namrup Methanol Plant
Expansion
India
Refinery gas/coke
oven gas to methanol
Refinery/Coke-
Oven Gas
367 2019
kingho Group China COG to LNG Coke Oven Gas 350 2023
Ulanqab Xufeng Company China COG to Methanol
Refinery/Coke-
Oven Gas
350 2021
Shanxi Jinyan Industry Group China COG to MEG Coke Oven Gas 350 2022
Shanxi Coking Coal Group
Feihong Chemical Co Ltd
China
Refinery gas/coke
oven gas to methanol
Refinery/Coke-
Oven Gas
258 2019
Shaanxi Haiyan Coking/Shanghai
Bao Steel
China Gas to chemicals
Refinery/Coke-
Oven Gas
238 2019

24. © Stratas Advisors. All rights reserved. 24
Syngas Projects Scoring by Feedstock
Biomass/Waste
Plant Country Type
Feedstock
Category
Analyst
Factored
Score
Projection
Start Year
SunPine Biorefinery Sweden Biomass to Liquids Biomass 480 2020
Longview Biofuel Refinery USA Biomass to Liquids Biomass 430 2021
Mississippi Biorefinery USA Biomass to Liquids Biomass 420 2020
NRL Bio-Refinery India Biomass to Liquids Biomass 390 2021
Kwinana WTE Australia waste to syngas Waste 241 2021
North London WTE United Kingdom waste to power Biomass 224 2020
Pilbara Waste to Energy Australia waste to power Waste 219 2020
West Sussex WTE United Kingdom waste to power Waste 206 2020
UAE WTE
United Arab
Emirates
waste to power Waste 204 2020
BioTfueL Project France biomass to liquids Biomass 194 2020
Barr Killoch Energy Recovery
Park
United Kingdom waste to power Waste 177 2020
Sundrop/Chesapeake XTL USA gas to liquids Biomass 172 2021
Red Rock Biofuels BTL USA biomass to liquids Biomass 168 2020

25. © Stratas Advisors. All rights reserved. 25
Syngas Projects Scoring by End Product
Nitrogenous Fertilizer
Plant Country
Feedstock
Category
Analyst Factored
Score
Projection Start
Year
Brass Island Petrochemicals Nigeria Natural Gas 394 2020
Ramagundam Fertilizer Plant GTC 2 India Natural Gas 351 2020
Mitsui Ammonia and Urea Production Plants Brunei Natural Gas 350 2021
Linggu Chemical Co. Ltd Ammonia Plant China Natural Gas 350 2021
Gulf Coast Ammonia USA Natural Gas 350 2022
Hebei Qianan Chemical Group (Phase 2) China Coal 350 2023
Navoiazot Ammonia/Urea Plant Uzbekistan Natural Gas 341 2020
PhosAgro Fertilizer Plant Russia Natural Gas 322 2023
Gorakhpur Fertilizer India Natural Gas 296 2020
Tanzania Petrochemical Project Tanzania Natural Gas 250 2020
Cronus-Tuscola Fertilizer Complex USA Natural Gas 249 2022
FMC-MGP-Midwest Fertilizer Mt Vernon USA Natural Gas 187 2022
Northern Plains Nitrogen Fertilizer Plant USA Natural Gas 178 2020

26. © Stratas Advisors. All rights reserved. 26
Syngas Projects Scoring by End Product
Methanol
Plant Country
Feedstock
Category
Analyst
Factored Score
Projection
Start Year
Ordos Jinchengtai Chemical Co., Ltd. (Methanol Plant
Phase 2)
China Coal 350 2021
South Louisiana Methanol (SLM) USA Natural Gas 334 2023
PNG Methanol Project Papua New Guinea Natural Gas 316 2022
Dena Petrochemical Co. Iran Natural Gas 288 2021
Middle East Kimiya Pars Co. Iran Natural Gas 288 2020
Baltic Gas Chemical Russia Natural Gas 280 2023
Arg Shimi Parsa Co. Iran Natural Gas 275 2020
Celanese Bishop Methanol (Expansion) USA Natural Gas 255 2023
Primus GTM Plant USA Natural Gas 250 2020
Busher 16th Olefins and Methanol
Complex
Iran Natural Gas 233 2020
Shanxi Qiyi Energy; Shanxi Xiangyuan Qiyi Coal
Mining
China Coal 227 2021
Tangguh Petrochemical Plant Indonesia Natural Gas 160 2022
Grupa Azoty Gasification Plant Poland Coal 128 2023

27. © Stratas Advisors. All rights reserved. 27
Syngas Projects Scoring by End Product
Liquid Fuels
Plant Country Type
Feedstock
Category
Analyst
Factored Score
Projection
Start Year
Oltin Yol GTL Uzbekistan GTL Natural Gas 477 2020
Yitai Group Ordos CTL 2 China CTL Coal 424 2020
Yitai Group Xinjiang CTL China CTL Coal 413 2021
Lu'an Group China CTL Coal 400 2020
Shaanxi Yulin Energy Group, Synfuels
China Technology Co., Ltd.
China CTL Coal 350 2025
Arkansas GTL USA GTL Natural Gas 112 2023

28. © Stratas Advisors. All rights reserved. 28
Syngas Projects Scoring by End Product
Gaseous Fuels
Plant Country Type
Feedstock
Category
Analyst
Factored Score
Projection
Start Year
Air Products Lu’An SNG China Coal to SNG Coal 422 2020
SINOPEC, KuweitPetroleumCorporation China Coal to hydrogen Coal 400 2020
CNOOC/Hebei Construction & Investment
Group
China Coal to SNG Coal 350 2023
Zhejiang Provincial Energy Group SNG China Coal to SNG Coal 300 2020
Huineng Coal Chemical Co., Ltd (coal to
SNG) Phase II
China Coal to SNG Coal 300 2021
Sinopec Guizhou SNG China Coal to SNG Coal 285 2021
Shengxin Group China Coal to SNG Coal 270 2022
Shengxin Group China Coal to SNG Coal 270 2021
Beijing Holding Group China Coal to SNG Coal 250 2023
Datang International Kttengtengqi Coal To
Natural Gas Co., Ltd (2nd Phase)
China Coal to SNG Coal 250 2021
Shaanxi Yulin Energy Group/Shaanxi Gas
Group
China Coal to SNG Coal 250 2022
Shaanxi Coal and Chemical Industry Group,
Sinopec
China Coal to SNG Coal 250 2022
Yangquan Coal Group China Coal to SNG Coal 250 2023

29. © Stratas Advisors. All rights reserved. 29
Syngas Projects Scoring by End Product
Olefins
Plant Country
Feedstock
Category
Analyst
Factored Score
Projection
Start Year
Hami Hengyou Energy Chemical Technology Co., Ltd China Natural Gas 450 2022
Sinopec Guizhou CTO China Coal 333 2023
Datong Coal Mine Group Company China Coal 298 2022
Total/CPI Inner Mongolia MTO China Coal 285 2022
Shanxi Jiantao Lubao Chemical Co Ltd China Natural Gas 280 2022
Anhui Haoyuan Chemical Group China Natural Gas 280 2022
Jinguotou (Dalian) Development Co., Ltd. China Coal 280 2025
Uzbekneftegaz Uzbekistan Natural Gas 280 2023
Beijing Haohua Energy Resource Co., Ltd China Coal 250 2023
CHN Energy Ningxia Coal Industry Group, SABIC China Coal 250 2023
Heilongjiang Longmay Mining Group China Coal 250 2025
Gansu Jinlongyang Energy Chemical Co., Ltd China Coal 250 2025
Olefin Production Complex-West Papua Indonesia Natural Gas 223 2023
Tianjin Bohua Chemical Industry Co., Ltd. China Coal 170 2020

30. © Stratas Advisors. All rights reserved. 30
Syngas Projects Scoring by End Product
Power
Plant Country
Feedstock
Category
Analyst
Factored Score
Projection
Start Year
Nabinagar Super Thermal Power Project India Coal 450 2020
Patratu Thermal Power Station India Coal 450 2022
Fukushima IGCC Japan Coal 397 2021
Hirono IGCC Japan Coal 358 2021
Namhae IGCC Korea Coal 330 2023
Satpura Thermal Power Station India Coal 280 2020
Sri Damodaram Sanjeevaiah Thermal Power Station
Expansion
India Coal 280 2020
Tanda Thermal Power Plant Expansion India Coal 250 2022
Kwinana WTE Australia Waste 241 2021
North London WTE United Kingdom Biomass 224 2020
Pilbara Waste to Energy Australia Waste 219 2020
West Sussex WTE United Kingdom Waste 206 2020
Plant Washington USA Coal 180 2024
Barr Killoch Energy Recovery Park United Kingdom Waste 177 2020

31. Conclusions

32. © Stratas Advisors. All rights reserved. 32
Conclusions
• Global syngas capacity has been growing at a CAGR of 17% from 2010
to 2017.
• Syngas capacity growth slowed down recently and expected to last this
slow down till 2024 due to choppy market conditions and weak oil
prices. Capacity is projected to keep increasing but at a slower rate.
• Growth is expected pick up pace after 2024 as oil price is projected to
keep rising.
• A shift towards natural gas as preferred feed stock is projected.
• Number of announced projects will increase after 2020.
• Good days for syngas sector is ahead.

33. Contact Information
Q & A
Habib Khan, Sr Analyst, Downstream, hkhan@stratasadvisors.com W: +1.713.260.4641 C: +1.832.282.4048
Anjani Singh, Director, Downstream, asingh@stratasadvisors.com W: +1.713.260.6412 C: +1.832.366.4076
Houston Office - Phone: +1.713.260.6426
Brussels Office - Phone: +32.2.287.08.23
Singapore Office - Phone: +65.6353.6126