UOP 7267-0 2016 UOP LLC. A Honeywell Company All rights reserved.

Take the Profitable Path to Olefins using UOP Technologies

Mike Banach Sr. Business Leader, Olefins &

Detergents

Egypt Downstream Summit & Exhibition Cairo, Egypt

15-16 February 2016

Pathways to Maximize Profitability

1

UOP 7267-1

Feedstocks Processes Products

Propane Butane

Propylene

Isobutylene UOP OleflexTM

Process

Methane Coal

Ethylene

Propylene

UOP Advanced MTO Process

Tremendous Opportunities in Light Olefins

Population growth continues to drive demand for products

derived from light olefins

2

0

50

100

150

200

250

300

350

2000 2005 2010 2015 2020

Millio

n M

TA

Light Olefin Demand

Propylene

Ethylene

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

UOP 7267-2

http://www.google.com/aclk?sa=l&ai=CJ_mBofm2TpmmNcmziAL4noDPDb-hkIQBv5y__RCZ7uPQLwgAEAEgk6z7BVCogYu4-_____8BYMm-yYbEo8gXoAH71b3_A8gBAaoEGU_Qg8I1jSBVB2I9crzp0-11jJNT4GayaF8&sig=AOD64_2YbSUQ8gcSc5xdqV7LO98QmQAGAg&ved=0CAUQ1xI&adurl=http://www.dultmeier.com/prod-search.asp?source=google&searchstring=HDPE&rct=j&q=high density polyethylene pipe&ctbm=ischhttp://en.wikipedia.org/wiki/File:Bonduelle.frozen.JPG

Refinery Shifts Balance Away from Light Olefins

3

Refinery Objective

By Products

Refinery economics favor diesel production over gasoline

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

Diesel Ethylene

Propylene

UOP 7267-3

Shift towards heavier diesel reduces byproduct light olefins

Cracker Feed Slate Swings Past Propylene

4

Ethane

E/P Mix

LPG

Light Naphtha

FBR

Naphtha

Gas Oil

Ethylene

Propylene

Butadiene

Other C4 By-products

Pygas

Cracker Feeds Cracker Products

Steam Cracker

UOP 7267-4

Shift to lower cost, lighter feeds results in decrease in

propylene and heavier olefins, including butadiene

UOP 7267-4

Tremendous Opportunities in Light Olefins

5

80

130

180

230

280

2000 2005 2010 2015 2020

Millio

n M

TA

Light Olefin Supply

Propylene - Other

Ethylene - Other

Propylene - Refinery

Propylene - Steam Cracking

Ethylene - Steam Cracking

Growing share from other sources other than steam cracking and refineries

Propylene gap continuing to grow

Options for on-purpose olefin production include MTO, OCP, and Oleflex

Source: IHS Chemical

UOP 7267-5

UOP technologies to meet your light olefin market demands

Pathways to Maximize Profitability

6

Feedstocks Processes Products

Propane Butane

Propylene

Isobutylene UOP OleflexTM

Process

Methane Coal

Ethylene

Propylene

UOP Advanced MTO Process

UOP 7267-6

MTO: Value Chain from Gas or Coal

7

Coal to Olefins (CTO)

Ethylene & Propylene

Synthesis Gas

Production

Methanol Synthesis

Coal

Gas to Olefins (GTO)

Natural Gas

MTO

UOP 7267-7

MTO Connects Natural Gas and Coal to the Largest Commodity

Petrochemicals Ethylene and Propylene

UOP Advanced MTO Technology

All processes licensed by UOP

8

Highest Olefin Yield

High P/E Flexibility

Maximum Single Train Capacity

Opportunity to Produce Butadiene

Regen Gas

Air

Methanol

Water

Ethylene

C4+

Propylene

By-product

MTO Process Integrated with Olefin Cracking Process (OCP)

Sep Section

OCP

MTO Light

Olefin

Recovery

n-Butenes (optional)

TPC/UOP OXO-D Process

Butadiene (optional)

DME Recovery

UOP 7267-8

Yield Benefits from OCP Integration

9

0

10

20

30

40

50

60

70

80

90

100

Naphtha MTP MTO Advanced

MTO

Carb

on

Yie

ld %

Other high value products

Ethylene

Propylene

70

80

90

100

1.0 1.2 1.4 1.6 1.8 2.0

Lig

ht

Ole

fin

Ca

rbo

n Y

ield

s,

Wt-

%Propylene/Ethylene (P/E) Product Ratio, Wt.

2.6 tons of Methanol consumed per ton of light olefin produced

A little more ethylene, a lot more propylene, and a lot less C4

+ by-product OCP integration increases light olefin yields by >15%

UOP 7267-9

Commercialization Status

Strong global interest continues

Onstream unit operating successes

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# Owner Location Scope Status

1 Wison (Nanjing) Clean

Energy Company, Ltd.

Nanjing, Jiangsu

MTO / OCP

Onstream2013

2 Jiutai Energy (Zhungeer)

Company, Ltd.

Ordos, Inner Mongolia

MTO SU 2017

3 Shandong Yangmei Hengtong Chemicals

Company, Ltd.

Linyi, Shandong

MTO / OCP

Onstream June 2015

4 Jiangsu-Sailboat Lianyungang,

Jiangsu MTO / OCP

SU 2016

5 Shandong Better Energy Dongying, Shandong

MTO / OCP

SU 2017

6 Undisclosed China MTO / OCP

Awarded

7 Undisclosed China MTO / OCP

Awarded

8 LUXI Chemical Group Co. Ltd. Liaocheng, Shandong

MTO / OCP

Design

The following projects in China have selected the UOP/INOVYN MTO Process:

UOP 7267-10

Pathways to Maximize Profitability

11

Feedstocks Processes Products

Propane Butane

Propylene

Isobutylene UOP OleflexTM

Process

Methane Coal

Ethylene

Propylene

UOP Advanced MTO Process

UOP 7267-11

LPG to High Value Olefins with Oleflex Process

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Propane

Isobutane

Propylene

Contained Isobutylene

Feedstocks Products Uses

Gasoline Blending Components

MTBE

Iso-Octane

ETBE

Synthetic Rubbers & Acrylics

Propane

Isobutane +

Propylene

+ Contained Isobutylene

Dedicated and Mixed Unit Applications

H2

UOP Oleflex Process

High performance plastic

Fiber

Packaging

UOP 7267-12

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C3 Oleflex Complex

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Oleflex Unit

C3 LPG

C4+

Byproduct H2

C2-

Propylene

SHP

P-P Splitter

Deethanizer

Depropanizer

UOP Oleflex Process used in 16 of the 23 operating PDH Units operating in the world today

UOP 7267-13

Leverage UOP CCR Experience in PDH/BDH

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Heater Cells

Net Hydrogen

To Frac Section

Dryer

Cold Box

Fresh & Recycle

Feed

H2 Recycle

CCR

Rx Effluent Compressor

Regeneration Section

Reactor Section

Product Recovery Section

Catalyst Flow

C3 Oleflex Unit = 4 Rxs C4 Oleflex Unit = 3 Rxs

C3/C4 Oleflex Unit = 3 Rxs

Positive Pressure / Pt Catalyst

Lower Energy Usage

Fewest & Smallest Reactors

Catalyst Change-Out without Shutdown

>250 UOP CCRs in Operation Today

UOP 7267-14

UOP Leads the Way in Dehydrogenation

Chosen EVERY engagement 2015 4 PDH and 1 BDH

15

UOP 7267-15

Why Customers Choose UOP Oleflex - I

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Lowest Overall Cost of Production:

Low feed consumption design available

Why Customers Choose UOP Oleflex - II

17

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

UOP 7267-17

Take the Profitable Path with UOP Technologies

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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)

UOP 7267-18

Q u e s t i o n a n d A n s w e r

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