1914 - 2014 A Century of Innovation in the Oil and Gas Industry

2014 UOP LLC. All rights reserved.

Pathways to Profit UOP Dehydrogenation Technology

Anish Paunwala

UOP 6570H_R_1

16th INDIAN Petrochem Conference Mumbai, India October 30-31, 2014

Agenda

Propane

Butane

Propylene

Isobutylene

UOP OleflexTM Process

UOP 6570H_R_2

Light Olefin Demand Outlook

Light Olefin Supply Routes and Market Shift

On-Purpose Propylene Production Technology

UOP Oleflex Process

Why Customers Choose Oleflex Process?

Conclusion

PP

Acrylonitrile

PO

MTBE

Cumene

Etc..

Tremendous Opportunities in Petrochemicals

0

50

100

150

200

250

300

350

2000 2005 2010 2015 2020 2025

Millio

n M

TA

Light Olefin Demand

Propylene

Ethylene

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

More than 100 MMTA of additional capacity will be needed by 2025

Consumption being driven by growing middle class in developing regions

The world market continues to drive demand for products derived from light olefins

Source: IHS Chemical UOP 6570H_R_3

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

Cracker Feed Slate Swings Past Propylene

Shift to lower cost, lighter feeds results in decrease in propylene

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 6570H_R_4

Refinery Objective

By Products

Shift towards heavier diesel reduces byproduct light olefins

Refinery Shifts Balance Away from Light Olefins

Refinery economics favor diesel production over gasoline in many regions

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

Diesel Ethylene

Propylene

UOP 6570H_R_5

Tremendous Opportunities in Light Olefins

0

50

100

150

200

250

300

350

2000 2005 2010 2015 2020 2025

Millio

n M

TA

Light Olefin Supply

Propylene - Other

Propylene - FCC

Propylene - Steam Cracking

Ethylene - Steam Cracking

UOP technologies to meet your light olefin market demands

Growing share from other sources besides steam cracking and refineries

Propylene gap developing

Several options for on-purpose propylene production

Source: IHS Chemical UOP 6570H_R_6

UOP 6570H_R_7

Get into the Action with Oleflex Process

Propane

Isobutane

Propylene

Isobutylene

High performance plastic

Fiber

Packaging

Gasoline Blending Components

MTBE

Iso-Octane

ETBE

Synthetic Rubbers & Acrylics

Propane

Isobutane +

Propylene +

Isobutylene

H2

UOP Oleflex Process

Feedstocks Products Uses

Economic

Feasibility-

Low CoP,

Low Investment

High IRR or

NPV

Simple

Process

and Easy

to Operate

Proven &

Strong

Technical

Support

Safe and

Environment

Friendly

Selection of Process

Technology

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Capacity

650 KMTA

500 KMTA

350 KMTA

PDH Project Economics Example

Profitability is attractive over wide range of price differentials

PDH P-P Spread is Main Economic Driver

PDH economics primarily driven by the price differentials between propylene and propane

Data Source: IHS Chemical

PG Propylene Propane Price Spread, $/MT

Propylene to Propane differentials support investment in PDH

1,500

1,300

1,100

900

700

500

300

100

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

W. Europe

SE Asia

NE Asia

North America

Saudi Arabia

$/M

T

Year

UOP 6570H_R_8

Oleflex

Unit

C3 Oleflex Complex Simple Perfection

C3 LPG

C4+

Byproduct H2

C2-

Propylene

SHP

P-P Splitter

Deethanizer

Depropanizer

Selective Hydrogenation Process converts methyl acetylene & propadiene to valuable propylene

Elegant & simple solution!

UOP Oleflex Process used in 12 of the 19 operating PDH Units today

UOP 6570H_R_9

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

Leverage UOP CCR Experience in PDH/BDH

Positive Pressure / Pt Catalyst

Lowest Energy Usage & Emissions

Fewest & Smallest Reactors

Catalyst Change-Out without Shutdown

>250 UOP CCRs in Operation Today

UOP 6570H_R_10

Six Operating C4 Oleflex Complexes World-Wide

Fresh Methanol

MTBE

C4 LPG

C5+

DIB Column

DeC3 Column

C3-

nC4 iC4

iC4 iC4=

H2 By-product

Alternate End-Product processing options:

ETBE from Ethanol, Tert-Butyl Alcohol from Water

Alkylation (Indirect or Direct)

High Purity Isobutylene (HPIB) via MTBE Decomposition

Others (Methyl MethAcrylate, Isoprene, etc.)

Oleflex Unit

ButamerTM Unit

EthermaxTM Unit

Raffinate Treatment

UOP 6570H_R_11

Ethermax Unit

Fresh Methanol

MTBE

LPG

Butamer Unit

C3= Oleflex

Unit

C3/C4 Separation Section

C2-

C5+

C3/C4 Oleflex MTBE Complex

UOP has 20 years of experience for C3/C4 dehydrogenation

DIB Column

Raffinate Treatment

Net Hydrogen

UOP 6570H_R_12

0

2,000

4,000

6,000

8,000

10,000

12,000

Ole

fin

Ca

pa

cit

y, k

MT

A

Award, Design or Construction

Commissioned

iC4 Dehydro C3 Dehydro

5 units 11 units

5 units

C3/iC4 Dehydro

UOP Leads the Way in C3 and iC4 Dehydro

9 units

1 unit

13 units

UOP has been awarded 28 of the last 33 dehydro projects world-wide since 2011

Worlds Largest PDH at 1000 kmta and 2 PDH Projects at 750 kmta propylene capacity

Highest ROI and Highly Reliable Technology keeps Oleflex

Process as the choice of the industry UOP 6570H_R_13

+3

Location of Operating UOP C3 Oleflex Units

14

Russia and China (x2) join the Oleflex Family

UOP 6520-14

14

UOP Proven Track Record of Innovation

1990-1992 - 1st Commercial Oleflex Units with DeH-6 Catalyst

1992-1993 DeH-8 and DeH-10 Catalysts (2nd and 3rd Generations)

1996 DeH-12 Catalyst (4th Generation)

2001 DeH-14 Catalyst (5th Generation)

2007 DeH-16 Catalyst (6th Generation)

1995 250 kMTA propylene designed

1998 300 & 350 kMTA propylene designed

2003 400 kMTA propylene designed

2004 460 kMTA propylene designed

2008 510 kMTA propylene designed

2011 750 kMTA propylene designed

2013 1000 kMTA propylene design

2012 UOP/HPS Oleflex Automation Package

2012 UOP/HPS Training Simulator

Continuous Innovation Driven by Customer Needs

30th licensed Oleflex Unit (>12.0 MMTA)

15th licensed Oleflex Unit (>5.0 MMTA )

10th licensed Oleflex Unit (>3.0 MMTA)

UOP 5809K_RP-15

2014 DeH-18 (7th Generation)

UOP - CONFIDENTIAL

UOPs Modular and Equipment Commitment

UOP Enhanced Tubes

Modular supply by UOP

UOP Column Internals

Advance your schedule and improve your bottom line with UOP Equipment & Modular Supply

UOP 6005K_RP-16

MD / ECMD Trays

Smaller tower diameter

Close tray spacing

Lower column pressure drop

High Flux / High Cond Tubes

Highest heat transfer performance

Closer Approach

Fewer / smaller bundles

Modular Supply

Highest quality

Delivered on time & on budget

Lowest Overall Cost of Production:

Low feed consumption design available

High Reliability / On-Stream Availability

Constant process conditions

Robust design incorporates largest operating base

CCR technology well proven across the industry

Smallest Environmental Footprint:

Lowest energy leads to lowest CO2

Low NOx & VOC emissions

Non-toxic catalyst system

Why Customers Choose UOP Oleflex (Cont..)

UOP 6570H_R_18

The safest & most environmentally friendly technology also leads in reliability

In Conclusion

UOPs Oleflex Process: Best dehydrogenation technology

Lowest CAPEX + lowest CCOP = Best Bottom Line

Largest experience base & most reliable technology

UOP as Your Technology Provider: The best keeps getting better

Continuous innovation for new & existing customers

Extensive capabilities with regional support

Drive Your Profitability to new heights with UOP

as your Technology Provider

UOP 6570H_R_19

Thank You

UOP 6570H_R_20

Pathways to Profit - UOP Dehydrogenation Technology

UOP 6570H_R_21