Improving Economies And Design Will Further Boost para-Xylene ProfitabilityImproving Economies And Design Will Further Boost para-Xylene Profitability

PETROTECH - 2010 Oct 31 – Nov 3, 2010New Delhi, India

© 2010 UOP LLC. All rights reserved. UOP 5472A-01

Topics

1. Current Market View & Challenges2. Lowering Your p-X Production Costs3. Maximizing Energy Efficiency4. Status of Advances in Capital Utilization5. Summary of Today’s Technology Forefront

MaxmimizeEnergy

Efficiency

UOP 5472A-02

0

10,000

20,000

30,000

40,000

50,000

60,000

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

KM

TA

of

pX

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

% C

apacity U

tilization

Total Capacity

% Utilization

Total Demand

Latest View - Awarded CapacityOctober 2010

Global pX Supply / Demand

Polyester (pX) Demand Growth Driven By GDP & Emerging “Middle Class”UOP 5425J-03

Source: UOP (SBA-CCI & PCI)

6.8% CAGR 2009-2019

PX Regional Capacity Additions & Demand

Most capacity added in the ME & AP will be consumed in China

Demand Growth (%, cagr) China 11% Middle East 12% India 9% Europe/Russia 6% Americas 2% Asia Pacific < 1%

Source: UOP & SBA-CCI 2009

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2,000

4,000

6,000

8,000

10,000

2004 2006 2008 2010 2012 2014 2016 2018

Year of Capacity Addition

pX

, km

ta

Capacity

Domestic Demand

India

-

2,000

4,000

6,000

8,000

10,000

2004 2006 2008 2010 2012 2014 2016 2018

Year of Capacity Addition

pX

, k

mta

Capacity

Domestic Demand

AF/ME

-

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

2004 2006 2008 2010 2012 2014 2016 2018

Year of Capacity Addition

pX

, km

ta

Capacity

Domestic Demand

China

UOP 5472A-04

$1,065 $1,044 $1,041$1,000 $988

0

200

400

600

800

1,000

1,200

Asia Pac USGC China India Mid East

$/M

T P

X

Capital Charges

Fixed COP

Cat & Chems

Utilities

Net Feedstock

NCOP

CCOP

Regional p-Xylene Cost of Production

Basis Assumed:Energy Values, /mm btu: AP = $5.50 USGC = $4.64 China = $6.00 India = $4.20 ME = $1.25Location Factors: AP = 1.02 USGC = 1.00 China = 0.80 India = 0.77 ME = 1.08

Energy / Utilities typically >50% of non-feedstock cost

$888$888 $870$870 $896$896$803$803$859$859

UOP 5472A-05

UOP 5425J-06

Typical Parex™ Based Aromatics Complex

para-Xylene

DesorbentC8A

Feed

Raffinate

Fractionation

Raffinate

Extract

Rotary Valve

AdsorbentChamber

“A”

Adsorbent Chamber

“B”

Xylene Fractionation

Benzene

Isomar™

Sulfolane™

CCR Platforming™

BT Fractionation Tatoray™Naphtha

p-Xylene

ParexTM

Team chartered in late 2008 combining skills of: Aromatics Technology Center (Basic Design)

Energy Optimization (UOP/HON)

Technical Service (Startup/Ops)

Maximize Energy Efficiency

Tasked with: Reduce utilities consumption by 20% Pay back incremental capital in less than 30 months Maintain turndown capability of 50 – 60% Retain ease & schedule of complex startup Preserve or Improve operational flexibility & safety

Focus – Grassroots Complex DesignUOP 5472A-06

Energy Management – Broad Scope

Operate processes more efficiently Increase process heat recovery Leverage advanced technologies Integrate energy demand with supply Consider environmental credits/costs

Technology Integrated Energy Optimization

UOP 5472A-07

Energy Management – Basic Design

Most Impacted by Basic Technology Design

Operate processes more efficiently Increase process heat recovery Leverage advanced technologies Integrate energy demand with supply Consider environmental credits/costs

UOP 5472A-08

Increased Process Heat Recovery

Thermal Compression

Areas of Focus Column preheat Heater efficiency Driver selection Waste heat recovery

Strategies to Identify/Address Opportunities Pinch Analysis Detailed equipment evaluation Steam, power, fuel system

balance Low temperature heat recovery

UOP 5472A-09

Advanced Technology

B

A

ABC

C

Advanced process/equipment technology Enhanced heat exchangers High capacity fractionation internals High efficiency reaction internals Modern Power Recovery Turbines High Selectivity/Activity Catalyst Novel Process Design

UOP 5472A-10

Energy Improvement Results

*Aromatics Complex pX Capacity = 900,000 mt pX / year

Total Energy Requirement(MMBtu/hr)

Energy Savings (MMBtu/hr)

Energy Savings @ $6 / mm Btu

(MM$/year)*

UOP Design - 2009 1150 Base Base

Improvements Applicable to all New Aromatics

Complex Designs

830 310 (25%) $15.6

Improvements Applicable to many

New Aromatics Complex Designs

740 90 (8%) $4.5

Improvements Applicable to some

New Aromatics Complex Designs

695 45 (4%) $2.3

Total Benefit   445 (37%) $22.5

Total Benefit/ MT PX 4.1 MMBtu/MT PX $24.5/MT PX

UOP 5472A-11

2nd Team chartered in late 2008 combining skills of: Mechanical Design Skill Center (Detailed Equip Design)

Key Mechanical Equipment (Critical Equip Manufacture)

Technical Service (Oversee Installation & Op Performance)

Process Design Development (Dev – Engrg Interface)

Extend “Single-train” Capabilities

Tasked with: Assess and modify (as necessary) chamber design to

assure process performance at 10+ meter diameter Assess and modify (as necessary) Size V rotary valve

design to maximize production capacity Maintain or improve equipment installability and

serviceability

Learnings being transferred to standard design practiceUOP 5472A-15

Chamber Flow Modeling Studies

Parameters Evaluated:

1. Velocities Above, Within and Below Adsorbent Beds To assess particle / adsorbent migration potential

2. Residence Time Distribution An indication of approach to “plug flow”

3. Mixing Desireable – Incoming Feed or Desorbent Undesireable – Disruptive, created by chamber internals

4. ReDistribution Effective use of adsorbent bed below internals

5. Velocities Above, Within and Below the Internals Examine / remove any inefficiencies created by

the internals’ design

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Flow Testing and Modeling

Extensive computer (CFD) modeling extending beyond prior physical modeling and validated by new physical model observations & data

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Technology Advances Enable Larger Scale

Chamber internals and rotary valve designs updated 960 KMTA single train Parex on stream in 2010 One (improved) size V RV can now handle ~ 750 kmta pX World’s largest adsorbent chambers onstream – Sept 2009

CommissionedIn Design / Construction

1400

1200

1000

800

600

400

200

01970 1975 1980 1985 1990 1995 2000 2005 2010 2015

p-X

ylen

e, K

MT

A

Parex™ Adsorbent Train Size Increases Over Time

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Finally A Brief Word on Catalysts / Adsorbent

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New Products/Processes are the Enablers

ADS-37: Five years stable operation25 Installations; ADS-47 Introduced

I-350: Two years stable operation3 Installations

H-15: One year stable operation (on reformate feed) 3 Installations

Olefin Reduction Process™ (ORP)

Isomar™

Tatoray™

Parex™

TA-20 /HP: Five years stable operation 10 Installations; TA-30 Introduced

UOP 5425J-25

Summary

UOP will continue to invest in our licensees through applied technology, design innovation and new product/materials development

UOP offers the most energy efficient means of producing para-xylene from naphtha

No technical limits exist for Parex to satisfy the markets growing production capacity needs

The Parex-based aromatics complex continues to provide a p-X producer with the lowest operating cost position at the lowest investment

MaxmimizeEnergy

Efficiency

UOP 5472A-22