On-purpose Olefins through CATOFIN -CATADIENE …

1 A World of SolutionsOn- purpose Olefins through CATOFIN - catadiene TechnologiesGlobal Propylene & Derivatives SummitSunil PanditraoTechnology ManagerCB&IAgenda Cracker Feedstock Trends Commercial Routes to Propylene CATOFIN / catadiene Technology CATOFIN PDH Technology catadiene Technology Conclusions1A World of Solutions$0$5$10$15$20$25$30 Price $/MMBtuUS Oil & Gas Price HistoryUS Oil PriceUS Gas PriceDiverging Oil and Gas : EIA2A World of SolutionsEthane27%Propane7%Butane4%Napht ha55%Gas Oil5%Others2%2005 Ethane 35%Propane9%Butane5%Naphtha 45%Gas Oil3%Other3%2015 Ethane33%Propane 8%Butane4%Naphtha50%Gas Oil3%Others2% Lightening Global Cracker Feedstocks3A World of SolutionsFeedstock Determines Product Slate4A World of SolutionsEthylene Market is Healthy, Global utilization moving towards peak in 2015-2016 Asia leading the way in capacity additionsCharts provided with permission of IHS Chemical 2012, IHS Inc.

2 No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written Ethylene Capacity Million Metric Tons by 2020050100150200250010203040506070000204 0608101214161820 World NAM MDE WEPAsiaOtherRegional Capacity Million Metric Tons World Capacity Million Metric Tons 2012, IHS Inc. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written ( )Total Capacity ( )ForecastMillionMetric TonsOperatingRateForecast(% AAGR = 07-12/12-22)

3 Global Ethylene Supply & Demand,Capacity UtilizationOperating Rate5A World of Capacity not Keeping Pace Cracker co-product capacity growth relatively flat Refinery FCC units represent the other conventional source of propylene Flat gasoline demand growth a constraint thereCharts provided with permission of IHS Chemical 2012, IHS Inc. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written RatioMillion Metric TonsAmericasEurope, CIS, & BalticsMiddle East / AfricaTotal AsiaForecastPropylene Production from Steam Crackers6A World of SolutionsCo-product Pricing StrengtheningAverage annual prices provided by Global Data010020030040050060020002001200220032 00420052006200720082009201020112012 Ethylene, Propylene, Butadiene Prices (2000 = 100)

4 EthylenePropyleneButadiene7A World of SolutionsPropylene Growth Regions and Usage Patterns Announced Propane Dehydrogenation Production Capacity of Propylene 8A World of SolutionsCommercial Routes to Propylene 9 Steam CrackerFCCP ropyleneMTOT raditionalTechnologiesPropane DehydrogenationPDHO lefins Conversion Technology OCTNewTechnologies9A World of SolutionsOn- purpose Propylene Filling the Gap 20% of the global propylene market by 2016 Charts provided with permission of IHS Chemical- 2012, IHS Inc. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written DehydroMetathesisOthersOlefin CrackingMethanol-to-OlefinsHS FCC% Total ProductionMillion MetricTonsForecastPercentPropylene Market View10A World of SolutionsFavorable Feed/Product Pricing $/tonPropane/Propylene Differential USGCI nformation provided from ICIS Pricing, a member of the Reed Elsevier plc groupSource.

5 ICIS11A World of SolutionsPropylene Selectivity Comparison0255075100% PropyleneYield By-product technologies On-purpose Technologies12A World of SolutionsA World of Solutions13 Proven technology platform licensed by CB&I for single-stage, fixed bed dehydrogenation of paraffins CATOFIN for propane and isobutanedehydrogenation Propane to Propylene (C3 CATOFIN ) Isobutaneto Isobutylene (iC4 CATOFIN ) CATADIENEfor n-butane dehydrogenation n-Butane to Butadiene and Butylenes Catalyst supplied by ClariantWhat is CATOFIN / catadiene Technology?

6 CATOFIN technology is a high selectivity process for propylene production propane propylene + hydrogen < ton propane required per ton propylene Fixed bed reactor system Largest single train capacities(up to 850 kta) Highest reliability (> 97%) 14 CATOFIN units licensed to date Several operating units are integrated with polypropylene Total propylene capacity: > 7000 ktaWhy CATOFIN Propane Dehydrogenation (PDH)?14A World of SolutionsA World of Solutions15 Air HeaterReactor on PurgeReactor on StreamReactor on ReheatFreshPropaneSteamCoolerProductComp ressorCoolerFlash DrumPropane RecyclePropylene ProductCharge HeaterByproduct Recovery/Fuel gasLow Temp.

7 SectionAirWaste Heat Boiler (WHB) CATOFIN Process FlowsheetA World of Solutions16 Low CAPEX design Optimal for areas of the world where low-cost energy is available Heat-pumped product splitter Common waste heat boiler for hot exhaust streams Low OPEX design Patented Low-energy Scheme Optimization of energy use around product compressor and reboilers Optimization of air heating Best application for high energy cost regionsFlowsheet Options for CATOFIN PlantContinuous CATOFIN Improvements Latest CATOFIN catalyst breakthrough in

8 Commercial operation 2 3% increase in olefin selectivity 5 10% energy savings Up to $30 million profit boost over conventional catalyst unitsImproves return on investment17A World of Solutions0500100015002000250030003500200 0200120022003200420052006200720082009201 020112012 Asian Ethylene, Propylene, Butadiene Prices (US$/t) EthylenePropyleneButadieneWhat About Butadiene? New butadiene extraction opportunities limited due to tightening raw C4supply from liquids crackers Few liquids crackers remain without BD extraction from crude C4s Butadiene a key profit driver for Asian crackers Recent pricing exceeded $US 4.

9 000 per ton Supply limitations continue to be forecasted on back of strong demand for synthetic rubbersAverage annual prices provided by Global Data18A World of SolutionsButadiene/Butane Pricing 0500100015002000250030003500400045005000 550010/10/062/22/087/6/0911/18/104/1/128 /14/13 Price $/tonButane mixBD USGCBD NE AsiaInformation provided from ICIS Pricing, a member of the Reed Elsevier plc groupSource: ICIS19A World of SolutionsCommercial Routes to Butadiene Steam CrackerButadiene By-product TechnologiesButane Dehydrogenation On-purpose TechnologiesButylene Oxidative Dehydrogenation20A World of SolutionsA World of Solutions21 Butadiene Block Flow Scheme CATADIENEn-ButaneButadieneButadiene n-Butenes n-ButaneButadieneExtractionn-Butene / n-Butane RecycleButene recovery for OCT or Alkylation feedn-Butane + Heat n-Butenes + Butadiene + HydrogenCATADIENE one-step dehydrogenation of butane to

10 ButadieneCATADIENE On-purpose BD TechnologyDecadeUnits Built Olefins CapacityKMTAPre 196096001960s42001970s54001980s1180 After199000 Units currentlyoperating3270 Only On-purpose technology available for production of 1,3 butadiene and/or n-butenes by dehydrogenation of n-butane First catadiene dehydrogenation unit started up in 1944 to meet demand for synthetic rubber during World War II 19 more units built in 1950s to 1980s Most plants discontinued in 1970s/1980s due to abundance of butadiene as co-product from naphtha crackers Three plants remain in operation in Russia22A World of SolutionsA World of Solutions23 Proven higher selectivity of the process with the implementation of HGM Large design capacities are