Indian Petrochemical Conference

November 1st-2nd, 2018

Lummus Technologies

for Value Addition through PDH and PP

Copyright McDermott 2018

Gijs ten Berge

Director Polyolefins Licensing

LUMMUS TECHNOLOGY

Presentation Agenda

Introduction to McDermott Technology

India refineries and petrochemicals

Catofin® Propane Dehydrogenation

Novolen® Polypropylene

Integration opportunities

LUMMUS TECHNOLOGY

McDermott

Full Portfolio across Natural Resources Value Chain

LUMMUS TECHNOLOGY

McDermott

Globally Integrated, Locally Focused

LUMMUS TECHNOLOGY

McDermott

Offering End-to-End Solutions

120 licensed process technologies,

3,000+ trademarks, patents, and

patent applications.

• Petrochemicals, gas processing,

and refining technologies.

• Proprietary catalysts.

• Specialized equipment.

• Consulting and technical services.

• World-class Research &

Development.

Comprehensive engineering

services from conceptual design

through startup and operation.

ENGINEERING

Global sourcing supported by

strong supplier relationships with

expertise spanning the entire

supply chain.

PROCUREMENT

Piping supply, structural steel and

modularization through large-

scale fabrication facilities located

around the world.

FABRICATION

Comprehensive capabilities,

across offshore and subsea,

refining, petrochemicals, LNG

and power.

CONSTRUCTION

Offshore/subsea installation

services and decommissioning.

INSTALLATION

Turnkey design-build services for

product and water storage and

import/export terminals.

STORAGE

SOLUTIONS

LUMMUS

TECHNOLOGY

LUMMUS TECHNOLOGY

Refining Petrochemicals Engineered Products

Hydrocracking Ethylene Heaters (ethylene, styrene, coking)

Lube Dewaxing/Finishing Propylene Specialized Exchangers:

Gasoline Desulfurization Paraxylene Helixchangers

Alkylation Polypropylene Breech-lock Exchangers

Fluid Catalytic Cracking Methanol to Olefins Reactor Internals

Ethers Butadiene Extraction Modularization

Resid Hydroprocessing C4 Processing

Delayed Coking Cumene / Phenol

Gasification DMC / DPC (Carbonates)

Sulfur Recovery Ethylbenzene / Styrene

Hydrogen Ammonia / Methanol / SNG

Gas Processing

Lummus Technology Key Selected Processes Portfolio

LUMMUS TECHNOLOGY

Lummus Technology Breadth of Technology Portfolio – Example for Propylene

Butadiene

Butylene

Cumene

Styrene Ethylbenzene

Butadiene Extraction

Maleic Anhydride

Steam Cracking

Propane Dehydro- genation

Butanes

Propylene

Ethylene

Hydro- dealkylation

C6-C8s

Benzene Aromatics Saturation

C4s

Propylene

Polypro- pylene

Phenol

Dimethyl Carbonate

Diphenyl Carbonate

Dimerization

Butane Dehydro- genation

CO

O2

Separation & Isomerization

Paraxylene

Reformate or Mixed Xylenes

Hexene-1 Comonomer Production

Butene-1

Methanol to Olefins

LDPE EVA

Methanol

Methanol

Olefins Conversion

MTBE ETBE

ISOMPLUS®

TAME TAEE

Ethylene Plant C4s

Sat. Gas Plant

Delayed Coking

(fuel, anode, needle)

LC-FINING® LC-SLURRY/

LC-MAX

Hydro- cracking

(R)FCC

Butane Dehydrog-

enation

Naphtha

Middle Distillates

Diesel

Jet

Naphtha

Butane Isomeri- zation

FCC Gasoline HDS

Ethanol

Ethanol

Ethylene Plant Feed

RDS

Unsat Gas Plant

Hydrog- enation

VRDS UFR/OCR

Dewaxing Hydro-

finishing

Hydro- treating

Hydrogen Plant

Alkylation Alkylate

Hydrogen Recovery

Sulfur Recovery

H2S

NH3

H2 Rich Gas

Ammonia

Gasification PetCoke

Coal

Methanol

Methanol

Methanol

Syngas

SNG

WSA

Vacuum Unit

Crude Unit

Oxidative Coupling of

Methane

Indmax FCC

8 Routes to Propylene

Steam Cracking

Dimerization Methanol to Olefins

(R)FCC

Indmax FCC

Oxidative Coupling of

Methane

Methane

Naphtha

AGO/ VGO

Ethane

LPG

Propane Dehydro- genation

Propane Propylene

Methanol

Resid 1

3 7

8

4

2

6 OSBL C4 / C5

Olefins Conversion

5

Resid

C2

C3

Ethylene

Ethylene

Butenes

We proudly create and deliver

complete, innovative solutions as the

trusted global partner, enabling our

customers to maximize the potential of

natural resources!

LUMMUS TECHNOLOGY

Indian Refineries and Petrochemicals Investment Up-Cycle driving Polypropylene projects

Refinery major Expansions and Upgrades:

Reliance Jamnagar refinery (petcoke gasification, AA)

BPCL Kochi refinery (FCC + C3 chemicals)

IOCL Barauni refinery (Indmax FCC + Novolen PP)

IOCL Gujarat refinery (Indmax FCC + Novolen PP)

IOCL Panipat refinery (Indmax FCC + PP)

CPCL Cauvery Basin refinery (Indmax FCC + PP)

BPCL Mumbai refinery (FCC + PP)

Nayara Energy (FCC + PP)

Petrochemical major Expansions:

HMEL (Cracker, PE, PP)

Grass Roots projects:

HPCL Rajasthan Refinery (incl. cracker, PE, Novolen PP)

GAIL (PDH-PP)

RRPCL (West Coast Refinery, incl. crackers, PE, PP, etc.)

40%

50%

60%

70%

80%

90%

100%

110%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

12 13 14 15 16 17 18 19 20 21 22 27

Domestic Demand (8.8/8.5) Production (5.9/7.8)

Total Capacity (6.1/8.0) Operating Rate

Indian Subcontinent: Polypropylene Supply & Demand

(% AAGR = 12-17/17-27)

Forecast

Millio

n M

etr

ic T

on

s

Op

era

tin

g R

ate

Source: IHS Markit © 2018 IHS Markit

www.essentialchemicalindustry.org

PP: 67%

essentialchemicalindustry.org

Applications of propylene

LUMMUS TECHNOLOGY

Propane Dehydrogenation (PDH)

• Major refineries have adequate amount of captive propane (600 to 1000

kta) to develop world scale PDH unit as highly selective and most cost

effective way to create olefins for polymer manufacturing (e.g. Reliance,

Nayara Energy, RRPCL).

• Propane can further be pooled from small/medium sized refineries (e.g.

Indian Oil) and gas separation units.

• Propane can also be imported from Middle East / North Africa / USA (e.g.

GAIL).

• Lummus Technology’s CATOFIN® Dehydrogenation Process provides the

highest yield of propylene of any commercially available PDH technology.

LUMMUS TECHNOLOGY

Catofin® PDH

Process Flow Diagram

There is NO Proprietary Equipment

LUMMUS TECHNOLOGY 10

CATOFIN® Catalyst Advantages

Fixed Bed Non Noble Metal Catalyst Feed Flexibility

No in-situ chlorine catalyst treatment

Can process any Combination of C3, iC4,nC4

No need for feed pre-treatment system

No loss of catalyst

No costly noble metal

Highest Selectivity of any commercial PDH process

LUMMUS TECHNOLOGY

Catofin® PDH

Superior Selectivity with Heat Generating Material (HGM)

Decreases Heat Supplied by Air

Selective location input of heat

Part of Our Standard Offer

Operating at 8 Units 3 iC4

4 Propane 1 Mixed Feed

Optimum temperature profile in reactor bed

Controlled bed inlet temperature

+ 2-3% Selectivity boost

Pro

pyle

ne S

ele

cti

vit

y, w

t%

Tem

pera

ture

, °C

Lower Energy Requirement

LUMMUS TECHNOLOGY

Novolen® PP technology

Simplified Process Flow Scheme

Reaction Polymer-Gas separation

Extrusion + Blending

LUMMUS TECHNOLOGY

Novolen® Reactor concept

Most Efficient and Forever Young!

Agitated gas-phase process for robust operation and

highest product capability

Lowest overall energy requirement / CO2 equivalent

emission

Direct catalyst injection – one NHP catalyst to cover all

Homo-, Random-, Impact Copolymers

Non-phthalate catalysts available (NHP®402 series)

Polymerization heat removal most efficient through

evaporative cooling of liquid (recycled) monomer in

100% condensing mode

No voluminous de-entrainment zone minimizing

monomer hold-up, transitions, and investment costs

Agitator preventing polymer sticking to the reactor wall

Swift start-up / shutdown / restart with all polymer

remaining in reactor

LUMMUS TECHNOLOGY

Novolen® Reactor - Configurations and Capacities

Single Reactor Homo-, Random Copolymer

Cascade Reactor Concept

Homo-, Random-, Impact Copolymer

Parallel Reactor Concept Homo-, Random Copolymer

(incl. Bimodal)

VRC® Versatile Reactor Concept Homo-, Random-, Impact Copolymer

(incl. Bimodal)

900 kta*

450 kta

580 - 900 kta*

580 kta

* two extruders at capacities > 580 kta

LUMMUS TECHNOLOGY

Recent Novolen® technology Licensees

Success in India

15

Licensee Location Country Capacity

(kta)

Products Start-Up

Shenhua Ningxia III Ningxia PR China 600 H, RC, IC 2017

Huating Coal Group Huating PR China 200 H, RC, IC 2019

OPC (Carbon Holdings) Ain Sokhna Egypt 2 x 415 H, RC 2020

Hebei Haiwei Group Hebei PR China 200 H, RC, IC 2020

Shurtan Gas Chemical Shurtan Uzbekistan 120 H, RC 2019

Tianjin Bohua Tianjin PR China 300 H, RC, IC 2019

CNOOC Daxie Daxie PR China 300 H, RC, IC 2020

IndianOil Barauni India 200 H (RC, IC) 2022

IndianOil Gujarat India 420 H (RC, IC) 2022

HRRL Rajasthan India 980 H, RC, IC 2022

LUMMUS TECHNOLOGY

Catofin® PDH – Novolen® PP

An Efficient Combination to Add Value

Integrated PDH-PP:

Propylene purity optimization:

CAPEX / OPEX saving C3 Splitter

PDH-PP process integration:

CAPEX saving up to 20-25 MM$

OPEX saving: 3-5 MM$ NPV

Catofin

PDH

Novolen

PP

Propane PP

$ $

LUMMUS TECHNOLOGY

Summary and Conclusion

McDermott offering the broadest technology and services

portfolio in the hydrocarbon processing industry through

Lummus Technology

Catofin® PDH:

Highest selectivity, maximum reliability

Most efficient PDH technology

Novolen® PP:

High reliability for full product portfolio

Most competitive PP technology

Integration opportunities adding further value

LUMMUS TECHNOLOGY

Lummus Novolen Technology GmbH offers NOVOLEN technology and technical

support services for the manufacturing of a full range of NOVOLEN polypropylene

grades. The NOVOLEN technology includes NOVOLEN process reactors, which can

be used with added flexibility by implementing the proprietary VRC reactor system,

which allows for maximum product range/capacity flexibility. The Novolen technology

also includes NHP catalysts for the production of high performance polypropylene

grades and NOVOCENE metallocene catalyst for the production of special

polypropylene grades.

Trademark Statement

For more information:

www.mcdermott.com