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A World of Solutions CB&I / Clariant CATOFIN® Technology For On Purpose Propylene Mohd Tahir Khan CB&I
A World of Solutions
CB&I / Clariant CATOFIN® Technology For
On Purpose Propylene
Mohd Tahir Khan CB&I
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Safe Harbor Statement
This presentation contains forward-looking statements regarding CB&I and
represents our expectations and beliefs concerning future events. These
forward-looking statements are intended to be covered by the safe harbor for
forward-looking statements provided by the Private Securities Litigation Reform
Act of 1995. Forward-looking statements involve known and unknown risks and
uncertainties. When considering any statements that are predictive in nature,
depend upon or refer to future events or conditions, or use or contain words,
terms, phrases, or expressions such as “achieve”, “forecast”, “plan”, “propose”,
“strategy”, “envision”, “hope”, “will”, “continue”, “potential”, “expect”, “believe”,
“anticipate”, “project”, “estimate”, “predict”, “intend”, “should”, “could”, “may”,
“might”, or similar forward-looking statements, we refer you to the cautionary
statements concerning risk factors and “Forward-Looking Statements” described
under “Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed with
the SEC for the year ended December 31, 2013, and any updates to those risk
factors or “Forward-Looking Statements” included in our subsequent Quarterly
Reports on Form 10-Q filed with the SEC, which cautionary statements are
incorporated herein by reference.
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Agenda
Cracker Feedstock Trends
Effects on Propylene Production
On-Purpose Technology Solutions
Future Trends and Innovations
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Diverging Oil and Gas Prices…
Source: EIA
$0
$5
$10
$15
$20
$25
$30
Pri
ce($
)/M
MB
tu
Cushing, OK WTI FOB vs Henry Hub Natural Gas Spot Price History
Cushing, OK WTI FOB Henry Hub Natural Gas
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Ethane 27%
Propane 7%
Butane 4%
Naphtha 55%
Gas Oil 5% Others 2%
2005
Ethane 35%
Propane 9%
Butane 5%
Naphtha 45%
Gas Oil 3%
Other 3%
2015
Ethane 33%
Propane 8%
Butane 4%
Naphtha 50%
Gas Oil 3% Others 2%
2010
...are Lightening Global Cracker Feedstocks
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Cracker Feedstock Determines Product Slate
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Ethane Propane Butane Light Naphtha
MT
of
Pro
du
ct
Ethylene Propylene Crude C4s Pygas Other
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Ethylene Market is Healthy, but……
• Global utilization moving towards peak in 2015-2016
• Asia leading the way in capacity additions
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…Co-product 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 there
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Ethylene, Propylene & Butadiene Prices, USGC Spot (Jan-07 – Oct-14)
Source ICIS Pricing
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
1-Jan-07 1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15
$/t
on
USGC ETHYLENE
USGC PROPYLENE
USGC Butadiene
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0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
Pri
ce
$/t
on
Propane/Propylene Differential USGC
Propane/Propylene Pricing (Jan 97- Oct-14)
Source ICIS Pricing
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Propylene Growth Regions and Usage Patterns
Announced Propane
Dehydrogenation Production
Capacity of Propylene
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Commercial Routes to Propylene
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Steam Cracker
FCC
Propylene MTO Traditional
Technologies
Propane
Dehydrogenation
PDH
Olefins Conversion
Technology
OCT
New
Technologies
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On-Purpose Propylene Filling the Gap
20% of the global propylene market by 2016
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Propylene Selectivity Comparison
0
25
50
75
100
% PropyleneYield
“By-product”
Technologies
“On-purpose”
Technologies
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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)
– Propane + Isobutane Co-processing
CATADIENE for n-butane dehydrogenation
– n-Butane to Butadiene
and Butylenes
– N-Butane + Isobutane Co-processing
Catalyst supplied by Clariant
What is CATOFIN® Technology?
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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
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Air Heater
Reactor on Purge
Reactor on Stream
Reactor on Reheat
Fresh
Propane
Steam
Cooler
Product
Compressor
Cooler Flash
Drum
Propane Recycle
Propylene
Product
Charge Heater
Byproduct Recovery/Fuel gas
Low Temp.
Section
Air
Waste Heat Boiler (WHB)
CATOFIN® Process Flowsheet
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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
CATOFIN® Plant Flowsheet Improvements
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Continuous CATOFIN® Improvements
Latest CATOFIN catalyst
“breakthrough” in
commercial operation with
Heat Generating Material or
HGM
2 – 3% increase in olefin
selectivity
5 – 10% energy savings
Up to $10 million profit
boost over conventional
catalyst units
Improves return on investment
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Latest PDH plant started up in China in August-September of 2014
Second CATOFIN PDH plant to start in China (first plant started up in November 2013)
Design based on the low OPEX flowsheet
Incorporates Heat Generating Material
Plant has achieved the design capacity
Latest Start-up of a CATOFIN® PDH Plant
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CATOFIN® PDH Operating Experience
Six PDH plants in operation
Two plants in China
• Designed for 600 kta
• Both plants operating at or above design capacity
Only PDH plant in operation in North America is a CATOFIN plant – operating well above the design capacity (designed for 500 kta)
Two plants in operation in Saudi Arabia at well above the design capacity (design capacity of 455 kta)
One plant in operation in Belgium
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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
Unmatched commercial experience
Conclusions
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