Private & Confidential

Opportunity in Map Ta Phut Retrofit

Knowledge Sharing Session

February 18, 2016

2

Private & Confidential

PTTGC Flexible Feedstock and Secured Product Offtake

Feedstock Supply Product Marketing

Others

Others

External Feedstock

Ethane, Propane, LPG

Condensate

Crude Oil

Light Naphtha

Aromatics

Petroleum products

Olefins

63%

(1)

35%

65%

Customers

Others

60%

40%

Others 36%

Captive Use EO Based

Polymers 79%

21%

PTTGC’s feedstock sourcing is process through both external sourcing and internal sourcing via synergies among existing production unit.

• Olefins and Derivatives are one of the most prominent evidence that gain benefit from internal feedstock.

• Both Refinery and Aromatics deliver light naphtha as a feedstock of olefins

Refinery

Aromatics

Olefins & Derivatives

3

Private & Confidential

Opportunistic from value adding to internal naphtha

Light

Naphtha

1.8 MTA

19%

85%

15%

Internal use

External sale

Key consideration

• Currently PTTGC’s light naphtha production exceeds internal feedstock demand

• There’s an opportunity to create value from internal feedstock availability

To cope with price & feedstock availability and volatility To create value from internal feedstock to higher value business

To secure downstream business volume

Objectives

4

Private & Confidential

Opportunistic from capturing the low crude trend

• Since 2014, dubai has reached a peak at $111/bbl in June 2014 and continue to drop since then.

• This reflects more attractiveness in term of profitability of naphtha cracker, in comparison with high crude period.

0

20

40

60

80

100

120

Dubai $/bbl Naphtha attractiveness

0%

40%

80%

120%

160%

200%

0

400

800

1200

1600

2000

Jan-

14

Apr-1

4

Jul-1

4

Oct-1

4

Jan-

15

Apr-1

5

Jul-1

5

Oct-1

5

HDPE/Naphtha ($/ton)

HDPE-Naphtha Spread (% over naphtha)

HDPE

Naphtha

5

Private & Confidential

Ethane cracker VS Naphtha cracker

Product Yield* Ethane Naphtha Ethylene 78% 33% Propylene 3% 18% Mixed C4s 3% 9% Pyrolysis gasoline 2% 15% Cracker Bottoms 0% 4% Fuel gas 14% 21% Total 100% 100%

• Ethane is typically competitive feedstock due to high ethylene yields. • However, using naphtha as feedstock also provide opportunities to create

value through C3/C4 derivatives

*Typical yield

6

Private & Confidential

Potential product/feedstock opportunities

New naphtha cracker create new product opportunities along value chain

Butadiene

TDI/HDI

Light Naphtha

PTA

PA Plasticizer

MMA PMMA

Caprolactam Nylon

PET

EB/SM

Epoxy resins

7

Private & Confidential

Production (KTA) Ethylene 500 Propylene 261

OLE 1

OLE 2/1

OLE 2/2

OLE3

LN - internal

BV Unit

Ethane - PTT

LPG - internal

Ethylene

Propylene

Butadiene

Mixed C4

Pygas

Hydrogen

Fuel gas

New Existing

Ethane/Propane/LPG

New Flexible Feed

Cracker

Internal or

Import LN

Import feedstock

LPG

Project Diagram

Build new Cracker 500 (KTA) for flexible feed cracker to utilize internal LN

Maximize utilization of the existing utilities and support facilities to reduce investment cost

Project outline

MTP Retrofit Outline

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Private & Confidential

SAPs

TPE PA9T SSBR ABS+NdBR

Olefins product management/derivatives development

Unit: KTA @ 8400 hr/yr

TSL Styro. BST

HMC Aditya

Unit: KTA

C4/Others • Opportunity to extend the derivative product in C4 chain

(e.g. Synthetic rubber). • Maximize existing facilities and utilities.

Propylene • Ensure that downstream business will be secure, including new

project. • Explore opportunity to extend chain with PTT group

collaboration.

Ethylene • Be able to well support new downstream business e.g. mLLDPE

400KTA. • More flexibility in ethylene allocation among customer &

new investment

9

Private & Confidential

Strategic location of each plant in Map Ta Phut Industrial Complex

These also benefit from location that all plants and facilities are located in Map Ta Phut area, which are able to connect through piping network.

10

Private & Confidential

OLE1

(I-1)

OLE2

(I-4)

OLE3

(PTTPE)

Top View over OLE1, OLE2, OLE3

Top View over OLE1, OLE2, OLE3

11

Private & Confidential

Location consideration

55103 m2

Naphtha tank

Propylene tank

Ethylene tank

Administrative Office/

Etc.

Cracker Process

Cooling Tower

Treated Water

Fire Water

Waste Water Treatment

Land preparation and facilities relocation is required in olefins I-1

Olefins I-1 (OLE 1) layout:

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Private & Confidential

Summary of project consideration

Key consideration

• The project will enhance PTTGC’s feedstock flexibility and sustain derivative production.

• PTTGC will be able to maximize value creation from internal feedstock.

• PTTGC can explore and capture opportunities with new derivatives along value chain

13

Private & Confidential

Thank You