Thermoplastic Composites in the Oil and Gas Industry

November 6, 2018

AGENDA

2

• Who is Solvay?

• The Oil & Gas Industry – today and looking toward the future

• The evolution of thermoplastic composites

• The value proposition of carbon fiber thermoplastic composites

• Summary

SOLVAY IS

AN ADVANCED MATERIALS & SPECIALTY

CHEMICALS COMPANY

1. 2017 underlying

results

2. MTAR: Medical

Treatment Accident

Rate

24,500employees1

5.53greenhouse gas

intensitykg CO2 eq. per € EBITDA

€ 10.1billion of

net sales1

124industrial

sites1

61countries1

21major

R&I centers1

0.65occupational accidents at

Group sites per million

hours worked2

49%sustainable

solutionsGroup net sales

WITH A LONG STANDING SPIRIT OF INNOVATION

Solar Flight

Solar Impulse 2 accomplished the

first trip around the world in 2016,

without a single drop of fuel.

Solvay Physics

Conferences

1911 & 1927

Solvay proprietary - All rights reserved

5

UNIQUELY POSITIONED TO PROVIDE THERMOPLASTIC

COMPOSITES TECHNOLOGY LEADERSHIP

Broad portfolio of

specialty polymers

TP prepreg

manufacturing

Application

Engineering

Fiber/Resin

interface

Key markets for thermoplastic composites

Aerospace

Supports more cost-

effective

fabrication

Enables higher build

rates

AutomotiveDesign freedom

More efficient part assembly

Outstanding crash

& safety performance

Improved recyclability

New cost effective offshore

extraction

Weight reduction and flexible

pipe design optimization

Corrosion resistance

Oil & Gas

6

Population

Geopolitics &

energy security

Electrification of Cars

Economic

Growth

Energy

Policies

New

Technologies

Renewables

Key Factors

Impacting

Oil Demand

PEAK OIL DEMAND – The Sooner Scenario…

7 Source: https://eto.dnvgl.com/2018/

Having reached its peak within the next five years, DNV GL forecasts global

demand for oil to be 50% of today’s production levels by 2050…however,

continued investment in new oil and gas development will still be needed as

global reserves decline at a rate of about 5% per year.

2023 2026

2035 2050

of energy demand is met by gas,

now the dominant primary energy

carrier

25%

decline in oil production compared

to today50%

of primary energy comes from oil

and gas combined compared to

53% in 2017

40%

Oil demand peaks

Global demand for energy from gas

overtakes that for oil

Gas and global energy demand

peaks (16% higher than today)

PEAK OIL DEMAND PEAK – The Later Scenario…

8 Source: https://www.iea.org/weo2017/

Electric cars are helping to transform energy use for

passenger cars, slowing the pace of growth in global oil

demand, however, trucks, aviation, shipping and

petrochemicals keep oil on rising trend.

The view from Deep Offshore…

9 Source:https://www.offshore-mag.com/articles/print/volume-78/issue-1/market-outlook/low-oil-

prices-could-support-longer-term-deepwater-comeback.html

$ 40/bblCost

ReductionSupply & Demand

Gap

Global Oil Supply Growth 2016-2030

MM

b/d

Unsanctioned projects

110

100

90

80

70

60

50

40

30

20

10

0

2016

Production

Decline to

2030

Sanctioned

Projects

OPEC

GulfShale Oil Offshore Other

2030:

Total Oil

97.3

-37.3

5.4 2.6

9.5

15.87.2 106.2

EXCITING TIMES FOR THERMOPLASTIC COMPOSITES

TechnipFMC and Magma Global to Enter into a

Strategic Collaboration Agreement for Hybrid

Flexible Pipe

2015

A 30 YEAR JOURNEY TO GET TO WHERE WE ARE TODAY

11

1980 1990 2000 2010

Sources: https://www.linkedin.com/pulse/brief-history-thermoplastic-composite-pipe-marcus-kremers/;

company websites

Conference on

composite materials

for offshore

IFP/Composite

Acquitaine

4” choke & kill

lines

Spoolable

composite pipe

Reinforced

Thermoplastic

Pipe (RTP)

Investigation of

TPC for military

applications

Release of DNV

standard & guidelines

for composite

components & risers

Three industry

projects focused on

fully bonded TPC

solutions

Joint Industry

Program launched

for deep water

riser concept

Today

Release of DNV

guidelines for

thermoplastic

composite pipes

TPC becomes

material of choice for

small parts on A340,

A380 & 787

2005

First offshore

thermoset

composite

riser joint

proven

Libra first oil in

2017

THE PRODUCT LIFE CYCLE CURVE OF CARBON FIBER THERMOPLASTIC COMPOSITES

12

Gro

wth

TimeDevelopment

O&G Thermoplastic

Composites

Growth Maturity Decline

Aerospace Thermoplastic

Composites

Aerospace Thermoset Composites

Automotive

Thermoplastic

Composites

Epoxy

PEKK, PEEK, PPS

PVDF, PEEK, PPS

PPA, PA6,6, PPS

THE VALUE PROPOSITION OF THERMOPLASTIC COMPOSITES IN FLEXIBLE PIPES

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Whether in a hybrid or fully

thermoplastic solution,

carbon fiber thermoplastic

composites enable:

● Lower weight versus

steel, less or no buoys

and shorter pipes

● Reduced corrosion

● Maintenance of excellent

mechanical performance

and flexibility

EvolutionRevolution

Carcass

Thermoplastic Liner

Metallic Pressure Armor

Tinsile Armor

Insulation

Outer Shell

Carcass

Bonded Composite Layer

Tensile Armor

Insulation

Outer Shell

Thermoplastic Liner

IN SUMMARY – The Oil and Gas Industry...

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...is hungry for new technologies to bring the breakeven

price as low as possible.

…has been exploring the use of composites for >15 years.

...understands the value proposition for using carbon fiber

thermoplastic composites to unlock and deliver more

value.

THANK YOU

Questions?

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