Abu Dhabi International Downstream Summit 2017Downstream optimization: role of technology, integrationand industrial gases

Dr.Ch.Bruch

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The Linde Group worldwide

Global presence in more than 100 countries

Countries home to operational companies in which Linde holds a direct or indirect shareholding and which belong to The Linde Group.

Americas EMEA Asia/Pacific

Reportable segments

Linde financial highlights 2016 Group Gas Engineering

Revenue in EUR m 16,948 14,597 2,351

Capital Expenditure (Gas divisions excl. financial assets) in EUR m 1,660

Order Intake (Engineering division) in EUR m 2,257

Order Backlog (Engineering division) in EUR m 4,386

Number of employees (as at December 31st 2016) 59,715 53,283 6,432

Linde in GCC

Order Intakes (In-Kingdom contracts only, since 2005) in EUR m 2,289

Capital Expenditure in GCC (since 2005 incl. JV @100%) in EUR m 1,245

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Leveraging Synergies

Linde's success is based

on engineering and operation synergies

3

1

Linde Engineering

Technology focused

Air Separation

Global #1

Air Separation Hydrogen/Syn Gas

Global #2

Hydrogen/Syngas

Olefins

Global #2

Olefins Natural Gas

Global #3

Natural Gas

HyCO Tonnage Plants

>70 plants

HyCO Tonnage Plants

>70 plants

HyCO On-Site Plants

>100 plants

ASU Tonnage Plants

>300 plants

ASU On-Site Plants

>300 plants

ECOVAR Std Plants

>1,000 plants

ECOVAR Std Plants

>950 plants

Linde Gas supply business

World class operations

CO2 Plants

>100 plants

Linde Engineering state-of-the-art technology and EPC capability provide cost effective and efficient plants for Linde Gas worldwide

Linde Gas operational expertise improves the Linde Engineering design, leading to innovative solutions and high plant reliably

Linde is a one-stop-shop for leading technology, EPC competence and gas supply solutions

7,300 engineers

5,600 operators

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Global and Local Trends impacting the Petrochemical Industry

Shale Gas & Oil Boom

Oil Price Fluctuation

Ethane & LPG Shipping

Demand for Fuel Peaks

Value Chain to Specialty Chemicals

Industry Business Cycle

Petrochemical

Industry

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Natural Gas to Chemicals – New Linde Technologies

Dry-Reforming for synthesis gas

OCM for direct conversion

MDI: Methylene diphenyl diisocyanate

TDI: Toluene diisocyanate

Acetic AcidFormic Acid

Poly-carbonates

MDITDI

SyngasNatural gas

Natural gas

Oxidative Coupling of Methane

EthyleneNo intermediate products

O2 import

CO2 import

Dry-Reforming

CO2 recycle

Feedstock Intermediate stage Products

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Steam Cracking Technology

Feed Flexibility and Value Cracking

Steam Cracker

Feed Flexibility

Optimized economics

Minimum operating cost

Project specific design

Value Cracking

Recycle management

Dedicated recycle furnaces

Maximized valuable by-products

Gaseous

Feedstock

Cracking

Liquid

Feedstock

Cracking

Feed Flexibility

Operating

Window

Application

of Value

Cracking

Steam Cracker

Ethylene

Propylene

Butadiene

Benzene

Others

Max

imiz

ed

7

0

20

40

60

80

100

120

140

160

180

200

1 2 3 4 5 6 7 8 9

Cumulative add. revenues (rel. to “Base Case”) [MM$ per year]

Improving steam cracker economics with Linde‘s Value Cracking

Case study: Liquid cracker with approx. 2,700 kt/a full range naphtha capacity

Separation Section

C5 Processing

C2/ C3 Recycle

NaphthaBenzene

Toluene

Xylenes

Ethylene

Propylene

Butadiene

PFO

C9 Pygas

Isoprene

Piperilene

Cyclopentadiene

nC4s

C5,C6 –C8 Raffinate

Raffinate-1

iC4s

C4 Isomerizat ion &

Separat ion

+ Reversed Butamer

Gas Furnaces

Naphtha Furnaces

Recycle Furnace

@ extreme mild cracking

2

5

4

48

9

7

6/ 7

3

5

5

7

7

8

Base

Case

Add

BD Ex

Add

B -Ex

Add

C4-C6 Rec

Add

BTX –Ex

C4- C8 Rec

Mild Value

Cracking

Value

Cracking

+ C5

Products

Value

Cracking

+ C5

Products

+ “Rev.

Butamer”

Linde‘s Value Cracking process scheme

1 2 3 4 5 6 7 8 9

@ approx. 60 USD/bbl

→ typical payout time

for add. CAPEX

< 2 – 4 years

Increases yield of high valuable products (propylene, butadienes, etc.)

Flexible steam cracking at optimized conditions, providing suitable feedstock by feed

selection, pretreatment and/or by-product processing and recycling

Linde Value Cracking

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Improve Profitability in Petrochemicals -

Integration of Refinery with Steam Cracker

Linde’s value Proposition

Improved molecule management & integration allows for higher yields and margins

Maximum feedstock flexibility ranging from C2, C3 up to HVGO and HCK residue (FBP> 570°C)

Optimized solutions for refinery & petrochemicals integration (e.g. refinery off-gas processing, gas separation, steam cracking of crude oil molecules, H2 production & recovery)

Optimized process concepts (together with refinery technology licensor) allow for lower investment & operational costs

Implementation of “Crude Oil to Chemicals” with liquid steam cracking

Linde designed & built ≥30 new and revamped ≥60 liquid steam crackers, amongst the world’s largest ones

Example: Refinery & steam cracker integration flow scheme

CDU: Crude distillation unit; VDU: Vacuum distillation unit; HDT: Hydrotreating; CCR: Continuous catalytic reforming;

HCK: Hydrocracker; FCC: Fluid Catalytic Cracking; SDA: Solvent de-asphalting unit; DLC: Delayed coking unit; VB: Vis-breaker

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Preconditions and Key Elements for Future Growth of the

Petrochemical Industry in GCC

Petrochemical

Industry

State-of-the-art

Technology

Plant

Efficiency

Upstream

Integration

Value Chain

Extension

FinancingAdvantage Feedstock

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Industrial Gases

Key Block in Refining & Petrochemical Expansion & Integration

INDUSTRIAL GASES INTEGRATED SYSTEM

Carbon Monoxide

Gasifications

Carbon Dioxide

Distillation Residues

Naphtha/LPG

Natural Gas H2-PSAs Steam Reformers

Hydrogen

H2-rich Off-gases

Naphtha, Butane, ROG

PETROCHEMICAL UNITS

▪ Olefins, polyolefins

▪ Ammonia/Urea

▪ Methanol – enhanced methanol production

▪ EO/MEG & downstream

▪ PO & downstream

▪ PU & downstream

REFINERIES

▪ LPG, gasoline, jet fuel, diesel, bitumen, asphalt,

Sulphur, coke etc

Air Separations

Nitrogen

Oxygen

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Industrial Gases Integrated Systems

Selected Linde’s References

Americas EMEA Asia/Pacific

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Leuna, Petrochemical Cluster

Map Ta Phut, Petrochemical Cluster

Jurong Island, Petrochemicals

Jubail-2, Sadara ComplexRotterdam, CO2-Cluster

Thank you for your attention.

www.linde.com

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Linde Value Cracking

Key features

Cracking

FurnacesSeparation

Section

Butadiene

Ethylene

Propylene

Cracked Gas

Feedstock

Benzene

Naphthas

Propane

Butane

Heavy Feeds

Vo

lati

le M

ark

et P

rice

s

Vo

lati

le M

ark

et P

rice

s#1

#2

# …

Key elements of Value Cracking

B

Feed & recycle

distribution

C

Low severity

cracking

D

Recycle

intensification

E

By-product

processing

AB

B

C

E

High Value Products

A

Feed pre-

treatment

D

Aromatics

Flexible steam cracking at optimized conditions

Increases yield of high valuable products (propylene, butadienes, etc.)

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Existing Petrochemical Plants Debottlenecking & Upgrade

Revamp & Modernization Measures

Feedstock Flexibility

EnergyEfficiency

Regulatory Compliance

Capacity Increase

Reliability &Availability

ProductSlate

Upgrading

Existing Petrochemical

Assets

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Linde Liquid Steam Cracker –

Selected References

Location Tobolsk, Russia Dahej, India Dushanzi, China Tiszaujvaros, Ungary Antwerp, Belgium

Owner ZapSibNeftekhim LLC(SIBUR)

ONGC Petro additions Ltd. (OPaL)

PetroChinaDushanzi Petrochem.Co.

TVK BASF

Feedstock C2 – C4 “Dual Feed“C2 – C4 / Naphtha

Light HC, LPG,Naphtha, HTO

LPG, Naphtha, AGO LPG, Naphtha

Olefincapacity

1,500 kt/a C2H4

535 kt/a C3H6

1,100 kt/a C2H4

400 kt/a C3H6

1,000 kt/a C2H4

500 kt/a C3H6

250 kt/a C2H4

125 kt/a C3H6

1,080 kt/a C2H4

600 kt/a C3H6

Startup Under construction 2017 2009 2004 2002