Mike Banach Take the Profitable Path to Olefins

Sr. Business Leader, Olefins &

Detergents using UOP Technologies
15-16 February 2016 Egypt Downstream Summit & Exhibition Cairo, Egypt
2016 UOP LLC. A Honeywell Company All rights reserved. UOP 7267-0
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Pathways to Maximize Profitability

Feedstocks Processes Products

Methane UOP Advanced Ethylene

Coal MTO Process Propylene

Propane UOP OleflexTM Propylene

Butane Process Isobutylene

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Tremendous Opportunities in Light Olefins

Light Olefin Demand
350
Propylene
300
Ethylene
250
Million MTA

200
150
100
50
0
2000 2005 2010 2015 2020

World demand for ethylene and propylene growing (about 4%/yr)

More than 50 MMTA of additional capacity will be needed by 2020
Driven primarily by growing middle class in developing regions

Source: IHS Chemical

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Population growth continues to drive demand for products

derived from light olefins
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Refinery Shifts Balance Away from Light Olefins

Refinery Objective By Products

Ethylene
Diesel

Propylene

Refinery economics favor diesel production over gasoline

Less severe catalytic cracking, more mild hydrocracking
produce less gasoline and less light byproducts

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Shift towards heavier diesel reduces byproduct light olefins

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Cracker Feed Slate Swings Past Propylene

Cracker Feeds Cracker Products
Ethane Ethylene

E/P Mix
Propylene

LPG
Butadiene
Light
Naphtha Other C4
By-products
FBR Steam Cracker
Naphtha
Pygas
UOP 7267-4 Gas Oil

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Shift to lower cost, lighter feeds results in decrease in

propylene and heavier olefins, including butadiene
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Tremendous Opportunities in Light Olefins

Light Olefin Supply

Propylene - Other Growing share from

280
Ethylene - Other other sources other
Propylene - Refinery than steam cracking
Propylene - Steam Cracking
and refineries
Million MTA

Ethylene - Steam Cracking

230 Propylene gap
continuing to grow
180 Options for on-purpose
olefin production
include MTO, OCP,
130 and Oleflex

80
2000 2005 2010 2015 2020

Source: IHS Chemical

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UOP technologies to meet your light olefin market demands

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Pathways to Maximize Profitability

Feedstocks Processes Products

Methane UOP Advanced Ethylene

Coal MTO Process Propylene

Propane UOP OleflexTM Propylene

Butane Process Isobutylene

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MTO: Value Chain from Gas or Coal

Gas to Olefins (GTO)
Natural Gas

Synthesis Methanol Ethylene &

Gas
Production
Synthesis MTO Propylene

Coal

Coal to Olefins (CTO)

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MTO Connects Natural Gas and Coal to the Largest Commodity

Petrochemicals Ethylene and Propylene
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UOP Advanced MTO Technology

Regen Gas
MTO Process Integrated with
Olefin Cracking Process (OCP)

Ethylene
Light
MTO DME Olefin
Recovery Propylene
Recovery
n-Butenes
(optional)
C4+

Air Water
OCP TPC/UOP
OXO-D
Sep Process
Methanol
Section
Highest Olefin Yield
High P/E Flexibility
Maximum Single Train Capacity By-product Butadiene
Opportunity to Produce Butadiene (optional)

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All processes licensed by UOP

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Yield Benefits from OCP Integration

100
Other high value products
90 Ethylene
80 Propylene
2.6 tons of Methanol consumed
70
Carbon Yield %

per ton of light olefin produced

60

Light Olefin Carbon Yields, Wt-%

100
50
40
30 90
20
10
0
80
Naphtha MTP MTO Advanced
MTO

70
1.0 1.2 1.4 1.6 1.8 2.0
Propylene/Ethylene (P/E) Product Ratio, Wt.

A little more ethylene, a lot more propylene,

and a lot less C4+ by-product
OCP integration increases light olefin yields by >15%

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Commercialization Status
The following projects in China have selected the UOP/INOVYN MTO Process:
# Owner Location Scope Status
Wison (Nanjing) Clean Nanjing, MTO / Onstream
1 Jiangsu OCP
Energy Company, Ltd. 2013
Jiutai Energy (Zhungeer) Ordos, Inner
2 MTO SU 2017
Company, Ltd. Mongolia
Shandong Yangmei Hengtong Chemicals Linyi, MTO / Onstream
3 Shandong OCP
Company, Ltd. June 2015
Lianyungang, MTO /
4 Jiangsu-Sailboat SU 2016
Jiangsu OCP
Dongying, MTO /
5 Shandong Better Energy SU 2017
Shandong OCP
MTO /
6 Undisclosed China Awarded
OCP
MTO /
7 Undisclosed China Awarded
OCP
Liaocheng, MTO /
8 LUXI Chemical Group Co. Ltd. Design
Shandong OCP

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Strong global interest continues

Onstream unit operating successes
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Pathways to Maximize Profitability

Feedstocks Processes Products

Methane UOP Advanced Ethylene

Coal MTO Process Propylene

Propane UOP OleflexTM Propylene

Butane Process Isobutylene

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LPG to High Value Olefins with Oleflex Process

Feedstocks Products Uses
H2
Fiber

Propane Propylene Packaging

Propane Propylene
+ + High performance plastic
Isobutane Contained
Isobutylene Gasoline Blending
Components

Isobutane Contained
Isobutylene MTBE ETBE

Iso-Octane
UOP Oleflex Process Synthetic Rubbers
& Acrylics

Dedicated and Mixed Unit Applications

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C3 Oleflex Complex
Byproduct H2 C2-

Deethanizer Propylene
Oleflex
Unit
P-P Splitter

Depropanizer
C3 LPG

SHP

C4+

UOP Oleflex Process used in 16 of the 23

operating PDH Units operating in the world today

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Leverage UOP CCR Experience in PDH/BDH

Reactor Regeneration C3 Oleflex Unit = 4 Rxs
Section Section C4 Oleflex Unit = 3 Rxs
C3/C4 Oleflex Unit = 3 Rxs

Catalyst Flow

C
C >250 UOP CCRs in
R Operation Today

Dryer
Rx Effluent
Compressor
Heater Cells

Cold Box
To Frac
H2 Recycle Section
Positive Pressure / Pt Catalyst
Lower Energy Usage
Net
Fewest & Smallest Reactors Fresh Hydrogen
Catalyst Change-Out without Shutdown & Recycle
Feed Product Recovery Section

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UOP Leads the Way in Dehydrogenation

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Chosen EVERY engagement 2015 4 PDH and 1 BDH

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Why Customers Choose UOP Oleflex - I

Lowest Overall Cost of Production:
Low feed consumption design available <1.15
Lowest gross / net energy usage
Lowest coke Flexible byproduct disposition

Smaller Investment Required

Fewest reactors on most compact plot space
Efficient regeneration requires smaller equipment
Constant equipment count Best economy of scale

You can have both!

Get lowest CAPEX and OPEX in one design

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Why Customers Choose UOP Oleflex - II

High Reliability / On-Stream Availability
Constant process conditions
CCR technology well proven across the industry

Smallest Environmental Footprint:

Lowest energy leads to lowest CO2
Low NOx & VOC emissions
Non-toxic catalyst system

The safest & most environmentally technology

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Take the Profitable Path with UOP Technologies

Fundamentals remain strong for on-purpose
olefin investments
Traditional sources will not meet demand
Cost-advantaged feedstocks
Now is the right time to invest in on-purpose technologies
UOPs Advanced MTO Process
Highest Olefin Yields with Flexible P:E Ratio
Leverage cost advantaged coal or gas to
produce high value light olefins
UOPs Oleflex Dehydrogenation Technology:
Lowest Capital Cost & Energy Usage results in
Lowest Operating Cost (CCOP) and
Highest Return on Investment (ROI)

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Question and Answer