May 15, 2017May 17, 2017

Cairo, Egypt Alexandria, Egypt

Take the Profitable Path to Olefins using

UOP TechnologiesMike Banach

Sr. Business Leader, Olefins &

Detergents2017 Honeywell Oil & Gas Technologies Symposium

Tremendous Opportunities in Light Olefins

Population growth continues to drive demand for products

derived from light olefins

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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

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0

50

100

150

200

250

300

350

400

2000 2005 2010 2015 2020 2025

Millio

n M

TA

Light Olefin Demand

Propylene

Ethylene

Tremendous Opportunities in Light Olefins

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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

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UOP has the technologies to meet your light olefin demands

80

130

180

230

280

330

2000 2005 2010 2015 2020 2025

Millio

n M

TA

Light Olefin Supply

Propylene - Other

Ethylene - Other

Propylene - Refinery

Propylene - Steam Cracking

Ethylene - Steam Cracking

Pathways to Maximize Profitability …

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Feedstocks Processes Products

PropaneButane

Propylene

ButyleneUOP OleflexTM

Process

MethaneCoal

Ethylene

Propylene

UOP Advanced MTO Process

MTO: Value Chain from Gas or Coal

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Coal to Olefins (CTO)

Ethylene & Propylene

Synthesis Gas

Production

Methanol Synthesis

Coal

Gas to Olefins (GTO)

Natural Gas

MTO

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MTO Connects Natural Gas and Coal to the Largest Commodity

Petrochemicals – Ethylene and Propylene

UOP Advanced MTO Technology

All processes licensed by UOP

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Highest Olefin Yield

Wide P/E Flexibility Range

Maximum Single Train Capacity

Opportunity to Produce Butadiene

Regen Gas

Air

Methanol

Water

Ethylene

C4+

Propylene

By-product

MTO Process Integrated withOlefin Cracking Process (OCP)

Sep Section

OCP

MTOLight

Olefin

Recovery

n-Butenes(optional)

TPC/UOP OXO-D™Process

Butadiene(optional)

DMERecovery

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Yield Benefits from OCP Integration

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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

OCP integration increases light olefin yields by >15%

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Commercialization Status

Strong global interest continues – On stream unit operating successes

# Owner Location Scopekmta LO Capacity Status

1Wison (Nanjing) Clean

Energy Company, Ltd.

Nanjing, Jiangsu

MTO / OCP 300 On stream 2013

2Jiutai Energy (Zhungeer)

Company, Ltd.

Ordos, Inner

MongoliaMTO 600 SU 2018

3Shandong Yangmei Hengtong

Chemicals Company, Ltd.

Linyi, Shandong

MTO / OCP 300 On stream 2015

4 Jiangsu-SailboatLianyungang, Jiangsu

MTO / OCP 830On stream Dec.

2016

5 Shandong Better Energy Dongying, Shandong

MTO / OCP 300 Awarded

6 Undisclosed China MTO / OCP 300 Awarded

7 Undisclosed China MTO / OCP 300 SU 2019

8 LUXI Chemical Group Co. Ltd.Liaocheng, Shandong

MTO / OCP 300 SU 2018

9Connell Chemical Industrial Co.

Ltd.Jilin City,

JilinMTO / OCP 300 SU 2017

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

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MTO Summary

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• Strong demand growth for ethylene and propylene

• MTO opens a new path to ethylene and propylene starting from cost advantaged gas and coal

– Low cost of production

– High yield of ethylene and propylene (> 89%)

– Flexible product ratio (P/E range 0.9 to 1.8, depending on configuration)

– Byproduct C4 olefins available for B1, B2, and BD production

• Single train capacity up to 1.8 million MTA of light olefin

• Commercialized in 2013 by Wison Clean Energy,

3 units on stream in 2016, 3 more by 2018

• Best technology available – UOP will help you

evaluate MTO for your situation

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Pathways to Maximize Profitability …

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Feedstocks Processes Products

PropaneButane

Propylene

ButyleneUOP OleflexTM

Process

MethaneCoal

Ethylene

Propylene

UOP Advanced MTO Process

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LPG to High Value Olefins with Oleflex Process

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Propane

Butane

Propylene

ContainedButylene

Feedstocks Products Uses

Gasoline Blending Components

MTBE

Iso-Octane

ETBE

Synthetic Rubbers & Acrylics

Propane

Butane+

Propylene

+ContainedButylene

Dedicated and Mixed Unit Applications

H2

UOP Oleflex Process

High performance plastic

Fiber

Packaging

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C3 Oleflex Complex

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OleflexUnit

C3 LPG

C4+

Byproduct H2C2-

Propylene

SHP

P-P Splitter

Deethanizer

Depropanizer

UOP Oleflex Process used in 18 of the 28 operating PDH Units operating in the world today

(Two C3 Oleflex at 750 KMTA – world’s largest PDH Units)

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UOP 7864B-12

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UOP Leads the Way in Dehydrogenation

Chosen in every engagement in 2015

6 wins out of 7 in 2016

Why Customers Choose UOP Oleflex - I

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• Lowest Overall Cost of Production:

– Low feed consumption design available <1.15

– Lowest gross / net energy usage

– Lowest coke → Flexible byproduct disposition

• Smaller Investment Required

– Fewest reactors on most compact plot space

– Efficient regeneration requires smaller equipment

– Constant equipment count → Best economy of scale

You can have both! Get lowest CAPEX and OPEX in one design

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Why Customers Choose UOP Oleflex - II

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• 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

– Proven non-toxic compliant catalyst system

Most environmentally friendly technology

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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

– Low-cost coal or methane and propane

– Now is the right time to invest in on-purpose technologies

• UOP’s Advanced MTO Process– Highest Olefin Yields with Flexible P:E Ratio

– Leverage cost advantaged coal or gas to produce high value light olefins

• UOP’s Oleflex Dehydrogenation Technology:

– Lowest Capital Cost & Energy Usage results in

Lowest Operating Cost (CCOP) and

Highest Return on Investment (ROI)

– Selected in 35 of last 41 projects since 2011

– Process your LPG into profitable propylene or butenes

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

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