Take the Profitable Path to Olefins using UOP Technologies

1 UOP 7267-0 2016 UOP LLC. A Honeywell Company All rights reserved. Take the Profitable path to Olefins using UOP Technologies Mike Banach Sr. Business Leader, Olefins & Detergents Egypt Downstream Summit & Exhibition Cairo, Egypt 15-16 February 2016 Pathways to Maximize Profitability .. 1 UOP 7267-1 Feedstocks Processes Products Propane Butane Propylene Isobutylene UOP OleflexTM Process Methane Coal Ethylene Propylene UOP Advanced MTO Process Tremendous Opportunities in Light Olefins Population growth continues to drive demand for products derived from light Olefins 2 0501001502002503003502000200520102015202 0 Million MTAL ight Olefin DemandPropyleneEthylene World demand for ethylene and propylene growing (about 4%/yr)

2 More than 50 MMTA of additional capacity will be needed by 2020 Driven primarily by growing middle class in developing regions Source: IHS Chemical UOP 7267-2 Refinery Shifts Balance Away from Light Olefins 3 Refinery Objective By Products Refinery economics favor diesel production over gasoline Less severe catalytic cracking, more mild hydrocracking produce less gasoline and less light byproducts Diesel Ethylene Propylene UOP 7267-3 Shift towards heavier diesel reduces byproduct light Olefins Cracker Feed Slate Swings Past Propylene 4 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 7267-4 Shift to lower cost, lighter feeds results in decrease in propylene and heavier Olefins .

3 Including butadiene UOP 7267-4 Tremendous Opportunities in Light Olefins 5 8013018023028020002005201020152020 Million MTAL ight Olefin SupplyPropylene -OtherEthylene -OtherPropylene -RefineryPropylene -Steam CrackingEthylene -Steam Cracking 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 UOP 7267-5 UOP Technologies to meet your light olefin market demands Pathways to Maximize Profitability.

4 6 Feedstocks Processes Products Propane Butane Propylene Isobutylene UOP OleflexTM Process Methane Coal Ethylene Propylene UOP Advanced MTO Process UOP 7267-6 MTO: Value Chain from Gas or Coal 7 Coal to Olefins (CTO) Ethylene & Propylene Synthesis Gas Production Methanol Synthesis Coal Gas to Olefins (GTO) Natural Gas MTO UOP 7267-7 MTO Connects Natural Gas and Coal to the Largest Commodity Petrochemicals Ethylene and Propylene UOP Advanced MTO Technology All processes licensed by UOP 8 Highest Olefin Yield High P/E Flexibility Maximum Single Train Capacity Opportunity to Produce Butadiene Regen Gas Air Methanol Water Ethylene C4+ Propylene By-product MTO Process Integrated with Olefin Cracking Process (OCP) Sep Section OCP MTO Light Olefin Recovery n-Butenes (optional)

5 TPC/UOP OXO-D Process Butadiene (optional) DME Recovery UOP 7267-8 Yield Benefits from OCP Integration 9 0102030405060708090100 NaphthaMTPMTOA dvancedMTOC arbon Yield %Other high value Olefin Carbon Yields, Wt-%Propylene/Ethylene (P/E) Product Ratio, tons of Methanol consumed per ton of light olefin produced A little more ethylene, a lot more propylene, and a lot less C4+ by-product OCP integration increases light olefin yields by >15% UOP 7267-9 Commercialization Status Strong global interest continues Onstream unit operating successes 10 # Owner Location Scope Status 1 Wison (Nanjing) Clean Energy Company, Ltd.

6 Nanjing, Jiangsu MTO / OCP Onstream2013 2 Jiutai Energy (Zhungeer) Company, Ltd. Ordos, Inner Mongolia MTO SU 2017 3 Shandong Yangmei Hengtong Chemicals Company, Ltd. Linyi, Shandong MTO / OCP Onstream June 2015 4 Jiangsu-Sailboat Lianyungang, Jiangsu MTO / OCP SU 2016 5 Shandong Better Energy Dongying, Shandong MTO / OCP SU 2017 6 Undisclosed China MTO / OCP Awarded 7 Undisclosed China MTO / OCP Awarded 8 LUXI Chemical Group Co. Ltd. Liaocheng, Shandong MTO / OCP Design The following projects in China have selected the UOP/INOVYN MTO Process: UOP 7267-10 Pathways to Maximize Profitability.

7 11 Feedstocks Processes Products Propane Butane Propylene Isobutylene UOP OleflexTM Process Methane Coal Ethylene Propylene UOP Advanced MTO Process UOP 7267-11 LPG to High Value Olefins with Oleflex Process 12 Propane Isobutane Propylene Contained Isobutylene Feedstocks Products Uses Gasoline Blending Components MTBE Iso-Octane ETBE Synthetic Rubbers & Acrylics Propane Isobutane + Propylene + Contained Isobutylene Dedicated and Mixed Unit Applications H2 UOP Oleflex Process High performance plastic Fiber Packaging UOP 7267-12 C3 Oleflex Complex 13 Oleflex Unit C3 LPG C4+ Byproduct H2 C2- Propylene SHP P-P Splitter Deethanizer Depropanizer UOP Oleflex Process used in 16 of the 23 operating PDH Units operating in the world today UOP 7267-13 Leverage UOP CCR Experience in PDH/BDH 14 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

8 Oleflex Unit = 3 Rxs C3/C4 Oleflex Unit = 3 Rxs Positive Pressure / Pt Catalyst Lower Energy Usage Fewest & Smallest Reactors Catalyst Change-Out without Shutdown >250 UOP CCR s in Operation Today UOP 7267-14 UOP Leads the Way in Dehydrogenation Chosen EVERY engagement 2015 4 PDH and 1 BDH 15 UOP 7267-15 Why Customers Choose UOP Oleflex - I 16 Lowest Overall Cost of Production: 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 You can have both!

9 Get lowest CAPEX and OPEX in one design UOP 7267-16 Why Customers Choose UOP Oleflex - II 17 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 Non-toxic catalyst system The safest & most environmentally technology UOP 7267-17 Take the Profitable path with UOP Technologies 18 Fundamentals remain strong for on-purpose olefin investments Traditional sources will not meet demand Cost-advantaged feedstocks Now is the right time to invest in on-purpose Technologies UOP s Advanced MTO Process Highest Olefin Yields with Flexible P.

10 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) UOP 7267-18 Q u e s t i o n a n d A n s w e r 19