16 Day Two Sunil Panditrao Technology Manager Cbandi

On-purpose Olefins
through
CATOFIN® -CATADIENE®
Technologies
Global Propylene & Derivatives
Summit
Sunil Panditrao
Technology Manager
CB&I
A World of Solutions
Agenda
 Cracker Feedstock Trends

 Commercial Routes to Propylene
 CATOFIN/CATADIENE Technology
 CATOFIN PDH Technology
 CATADIENE Technology
 Conclusions
A World of Solutions 1
Diverging Oil and Gas Prices…
US Oil & Gas Price History

$30
$25
$20
Price $/MMBtu
$15
$10
$5
$0
US Oil Price US Gas Price

Source: EIA
...are Lightening Global Cracker Feedstocks
Others 2% Others 2%
Gas Oil 5% Gas Oil 3%
Ethane 33%
Ethane 2005 2010
27%
Naphtha
55% Propane Naphtha
7% 50% Propane 8%
Butane 4% Butane 4%
Other
Gas Oil 3%
3% Ethane
35%
2015
Naphtha
45%
Propane
Butane 9%
5%
Feedstock Determines Product Slate
Ethylene Market is Healthy, but……
Global Ethylene Supply & Demand,
Capacity Utilization
Million Metric Tons Operating Rate
250.0 100%
Forecast
95%
 Global utilization moving

200.0 90%
85%
150.0
80%
towards peak in 2015-2016 100.0

75%
70%
50.0 65%
60%
Regional Ethylene Capacity Trends… 0.0 55%
200 Million Metric Tons by 2020

Regional Capacity World Capacity Demand (2.5/3.8) Total Capacity (3.5/3.6) Forecast
Operating Rate
Million Metric Tons Million Metric Tons (% AAGR = 07-12/12-22)
70 250
© 2012, IHS Inc. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.
3
60
200
50
40 150
30 100  Asia leading the way in

20
10
50 capacity additions
0 0
00 02 04 06 08 10 12 14 16 18 20
World NAM MDE WEP Asia Other
Charts provided with permission of IHS Chemical
…Co-product Capacity not Keeping Pace
Propylene Production from Steam Crackers
Million Metric Tons P/E Ratio

65.0 42%
60.0 Forecast
40%
55.0
50.0 38%
45.0 36%
40.0
35.0 34%
30.0 32%
25.0
20.0 30%
15.0 28%
10.0
5.0 26%
0.0 24%
90 92 94 96 98 00 02 04 06 08 10 12 14 16 22
Americas Europe, CIS, & Baltics
Middle East / Africa Total Asia
 Cracker co-product capacity growth relatively flat

 Refinery FCC units represent the other conventional
source of propylene
– Flat gasoline demand growth a constraint there
Co-product Pricing Strengthening
Ethylene, Propylene, Butadiene Prices (2000 = 100)

600
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Ethylene Propylene Butadiene
Average annual prices provided by Global Data
Propylene Growth Regions and Usage Patterns
Announced Propane
Dehydrogenation Production
Capacity of Propylene
Commercial Routes to Propylene
Steam Cracker
FCC
Traditional MTO Propylene

Technologies
Propane New
Dehydrogenation
Technologies
PDH
Olefins Conversion
Technology
OCT
A World of Solutions 9 9
On-Purpose Propylene Filling the Gap
 20% of the global propylene market by 2016

Propylene Market View
-
Million MetricTons Percent
35.0 30.00
Forecast
30.0 25.00
25.0
20.00
20.0
15.00
15.0
10.00
10.0
5.0 5.00
0.0 0.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2022
Propane Dehydro Metathesis Others Olefin Cracking
Methanol-to-Olefins HS FCC % Total Production
Favorable Feed/Product Pricing Differential
1600.0
Propane/Propylene Differential USGC

1400.0
Source: ICIS
1200.0
Price $/ton
1000.0
800.0
600.0
400.0
200.0
0.0
Information provided from ICIS Pricing, a member of the Reed Elsevier plc group
Propylene Selectivity Comparison
“By-product” “On-purpose”
Technologies Technologies
100
75
% Propylene
Yield 50
25
What is CATOFIN /CATADIENE Technology?
 Proven technology platform licensed by CB&I for single-

stage, fixed bed dehydrogenation of paraffins
 CATOFIN for propane and isobutane dehydrogenation
– Propane to Propylene (C3 CATOFIN)
– Isobutane to Isobutylene (iC4 CATOFIN)
 CATADIENE for n-butane dehydrogenation
– n-Butane to Butadiene
and Butylenes
 Catalyst supplied by Clariant
Why CATOFIN Propane Dehydrogenation (PDH)?
 CATOFIN technology is a high
selectivity process for propylene
production
• propane  propylene + hydrogen
• < 1.15 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 kta
CATOFIN Process Flowsheet
Air
Air Heater
Charge Heater
Reactor on Reactor on Reactor on

Purge Stream Reheat Waste Heat Boiler (WHB)
Steam
Fresh Byproduct Recovery/Fuel gas
Propane
Propylene
Low Temp. Product
Section
Cooler
Cooler Flash
Drum
Product
Compressor
Propane Recycle
Flowsheet Options for CATOFIN Plant
 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 regions
Continuous CATOFIN Improvements
 Latest CATOFIN catalyst

“breakthrough” in
commercial operation
 2 – 3% increase in olefin
selectivity
 5 – 10% energy savings
 Up to $30 million profit
boost over conventional
catalyst units
Improves return on investment
What About Butadiene?
 New butadiene extraction opportunities limited due to tightening
raw C4 supply from liquids crackers
– Few liquids crackers remain without BD extraction from crude C4s
– Butadiene a key profit driver for Asian crackers
 Recent pricing exceeded $US 4,000 per ton
– Supply limitations continue to be forecasted on back of strong demand
for synthetic rubbers
Asian Ethylene, Propylene, Butadiene Prices (US$/t)
3500
3000
2500
2000
1500
1000
500
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Ethylene Propylene Butadiene
Average annual prices provided by Global Data

18
A World of Solutions
Butadiene/Butane Pricing
5500
5000 Butane mix BD USGC BD NE Asia

Source: ICIS
4500
4000
3500
3000
Price $/ton
2500
2000
1500
1000
500
0
10/10/06 2/22/08 7/6/09 11/18/10 4/1/12 8/14/13
Information provided from ICIS Pricing, a member of the Reed Elsevier plc group
Commercial Routes to Butadiene
“By-product”
Steam Cracker
Technologies
Butylene Oxidative
Dehydrogenation
Butadiene
Butane
Dehydrogenation
“On-purpose”
Technologies
Butadiene – Block Flow Scheme
CATADIENE one-step dehydrogenation of butane to butadiene
n-Butane + Heat  n-Butenes + Butadiene + Hydrogen
Butene recovery for

OCT or Alkylation feed
n-Butene / n-Butane Recycle
Butadiene
n-Butenes
n-Butane n-Butane Butadiene Butadiene
CATADIENE
Extraction
CATADIENE – On-purpose BD Technology
 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 Russia
Decade Units Built Olefins Capacity

KMTA
Pre 1960 9 600
1960s 4 200
1970s 5 400
1980s 1 180
After 1990 0 0
Units currently 3 270
operating
Conclusions
 Proven higher selectivity of the process with the implementation

of HGM
 Large design capacities are possible to take advantage of the
economy of scale
 CATOFIN technology improved flowsheets meet local utility
constraints at various locations around the world
 CATOFIN productivity and profitability maximized with latest
improvements
 CATADIENE proven technology for on-purpose butadiene
production
"This paper and Program may contain confidential or proprietary information.
The information, observations, and data presented in this paper and
Program are intended for educational purposes only and do not identify,
analyze, evaluate, or apply to actual, specific engineering or operating
designs, applications, or processes. The comments and opinions are those
of the author and not CB&I, are based on available information, and in all
cases reference shall be made to the actual wording and meaning of
applicable codes and standards. The use of or reliance on any information,
observations, or data provided is solely at your own risk."

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On-purpose Olefins

 Cracker Feedstock Trends

US Oil & Gas Price History

US Oil Price US Gas Price

 Global utilization moving

towards peak in 2015-2016 100.0

Regional Ethylene Capacity Trends… 0.0 55%

200 Million Metric Tons by 2020

30 100  Asia leading the way in

Charts provided with permission of IHS Chemical

Propylene Production from Steam Crackers

Million Metric Tons P/E Ratio

Charts provided with permission of IHS Chemical

 Cracker co-product capacity growth relatively flat

Ethylene, Propylene, Butadiene Prices (2000 = 100)

Average annual prices provided by Global Data

Traditional MTO Propylene

 20% of the global propylene market by 2016

Charts provided with permission of IHS Chemical

Propane/Propylene Differential USGC

 Proven technology platform licensed by CB&I for single-

Reactor on Reactor on Reactor on

 Low CAPEX design

 Low OPEX design

 Latest CATOFIN catalyst

Improves return on investment

Ethylene Propylene Butadiene

Average annual prices provided by Global Data

5000 Butane mix BD USGC BD NE Asia

CATADIENE one-step dehydrogenation of butane to butadiene

n-Butane + Heat  n-Butenes + Butadiene + Hydrogen

Butene recovery for

n-Butene / n-Butane Recycle

Decade Units Built Olefins Capacity

 Proven higher selectivity of the process with the implementation

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