Pathways to Profit UOP Dehydrogenation …

1 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 Tremendous Opportunities in Petrochemicals 0501001502002503003502000200520102015202 02025 Million MTAL ight Olefin DemandPropyleneEthylene 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.

2 IHS Chemical UOP 6570H_R_3 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 0501001502002503003502000200520102015202 02025 Million MTAL ight Olefin SupplyPropylene - OtherPropylene - FCCP ropylene - Steam CrackingEthylene - Steam CrackingUOP 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.

3 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 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.

4 Europe SE Asia NE Asia North America Saudi Arabia $/MT 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 CCR s 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

5 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 02,0004,0006,0008,00010,00012,000 Olefin Capacity, kMTAA ward, Design or ConstructionCommissionediC4 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 World s 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)

6 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 (> MMTA) 15th licensed Oleflex Unit (> MMTA ) 10th licensed Oleflex Unit (> MMTA) UOP 5809K_RP-15 2014 DeH-18 (7th Generation) UOP - CONFIDENTIAL UOP s 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 .

7 Low feed consumption design available < 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 Why Customers Choose UOP Oleflex UOP 6570H_R_17 You can choose both! Get lowest CAPEX and OPEX in one design 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 ( ) UOP 6570H_R_18 The safest & most environmentally friendly technology also leads in reliability In Conclusion UOP s Oleflex Process: Best Dehydrogenation technology Lowest CAPEX + lowest CCOP = Best Bottom Line Largest experience base & most reliable technology UOP as Your Technology Provider.

8 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