Classification Level:

Business Owner:

Distribution List:

Technology Licensing for the Petrochemical Industry

Global E&C Solutions Communications

Budapest, 13/10/2015 l Dirk Burghardt l Sales Director Licensing and Technology, Downstream & Petrochemicals

CEE & Turkey Refining and Petrochemicals

13th-15th October 2015 I Sofitel Budapest, Hungary

Air Liquide, world leader in gases, technologies and services for Industry and Health 2 13/10/2015

■ Synthesis Gas Production

■ Air Separation Plants

■ Methanol & MTP

■ Natural gas conditioning

■ Petrochemicals

■ Oleochemicals, Biodiesel

■ Fischer-Tropsch GTL

The Air Liquide Group

Large Industries

Air gases and hydrogen 15-year contracts Pipeline networks Industrial basins

Electronics

Carrier gases Specialty gases Equipment and Installations

Healthcare

Hospitals Homecare Hygiene

Industrial Merchant Bulk and cylinder gases 80 countries Wide variety of sectors and customer sizes

Global E&C Solutions Design, Engineering & Construction

of leading-edge processing facilities Plants for AL Group and 3rd Party Clients

Other activities

Welding & Cutting Diving Specialty chemicals

Air Liquide, world leader in gases, technologies and services for Industry and Health 3 13/10/2015

Agenda

1. Petrochemistry – General

2. 1,3-Butadiene

3. Benzene (Distapex®)

4. Acrylic Acid

5. Melamine

Air Liquide, world leader in gases, technologies and services for Industry and Health 4 13/10/2015

Petrochemistry General – Technology Map

Products Intermediates

Acrylic Acid

Butadiene

Benzene

Urea

Propylene

C4-Cut

Aromatics

Melamine

MTP MeOH

Natural Gas

Syngas

(CO, H2)

Refinery /

Cracker

ASU

Acrylates

SAP

Synthetic

Rubber

Styrene,

Phenol, CH

Laminates

Adhesives

Poly-

propylene

Air Liquide E&C features special expertise in

■ Oxidation

■ Extraction

■ Hydrogenation

Air Liquide, world leader in gases, technologies and services for Industry and Health 5 13/10/2015

Technology Portfolio – Business Model

Proprietary

Technologies

Own Research &

Development

Alliances

Edgein

Aquisition

BP

(Semi-) Exclusive

Partnerships

Technology

Portfolio

Distapex®

Acrylic Acid

Butadiene

Acrylates

Melamine

Air Liquide, world leader in gases, technologies and services for Industry and Health 6 13/10/2015

1. Petrochemistry – General

2. 1,3-Butadiene

3. Benzene (Distapex®)

4. Acrylic Acid

5. Melamine

Agenda

Air Liquide, world leader in gases, technologies and services for Industry and Health 7 13/10/2015

Global Butadiene Demand - Outlook

■ Global Consumption 2013: 10.5 mio tons

■ Expected Average Annual Growth Rate 2013 – 2020: 3.2 %

driven by growth in demand for ABS, SBR, and Butadiene Rubber

Asia Pacific 55%

North America 17%

Western Europe

16%

Eastern Europe

5%

South America

3%

Central Europe

3%

Middle East & Africa

1%

BD Consumption 2013

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

BD Consumption Growth2000 - 2013

BD Consumption Growth2013 - 2020

Source: Nexant, Mai 2014

Air Liquide, world leader in gases, technologies and services for Industry and Health 8 13/10/2015

Butadiene Experience and Partnership

NMP Process invented

by BASF

BASF

Technology Owner

First BASF Plant built by Lurgi

Lurgi

Sublisensor

for BASF NMP Process

Lurgi‘s First Butadiene Reference

Esso (CAA) Technology

Lurgi projects based on

Esso (CAA)

Shell (ACN)

Nippon Zeon (DMF)

BASF (NMP)

1958

1968

Since 1990

Continuous Improvements

Early

1960‘s

Air Liquide, world leader in gases, technologies and services for Industry and Health 9 13/10/2015

BASF NMP Technology Features

■ Worldwide recognized technology

Safe

Eco-Efficient

Reliable

Low environmental impact

■ 57 References in total

■ 30 since Y2000

Air Liquide, world leader in gases, technologies and services for Industry and Health 10 13/10/2015

Butadiene Extraction Technology - Challenges

■ Separation of Butadiene from a complex Mix of C4

■ C4 Mix is different in each individual project

■ Operational Difficulties

Popcorn Formation

Foaming

Fouling

C4 Acetylenes

Raffinate Propyne

Butadiene C4 Feed

C4 / C5

Extractive Distillation

Distillation

Air Liquide, world leader in gases, technologies and services for Industry and Health 11 13/10/2015

AL E&C - The Technology Partner of Choice

■ AL E&C has long-term competence in Hydrocarbon Extraction

■ Besides standard process concepts we offer tailor-made solutions to

meet the specific requirements of its clients

■ Active Contribution to continuous process improvements with regard to:

Popcorn Formation

Foaming

Fouling

Source:

Popcorn Issue Group (European

Ethylene Producers Committee)

Proven highest On-stream Efficiency

Air Liquide, world leader in gases, technologies and services for Industry and Health 12 13/10/2015

ONGC, Gutjarat

126,600 tpa (2009)

Russian Federation

105,000 tpa (2012)

10 References since 2005, 4 in 2012, 36 in total

EVONIK, Antwerp, Belgium

100,000 tpa (2012)

OMV, Schwechat, Austria

+ 12,000 tpa (2012)

Petrobras, Rio

+ 165,000 tpa (2008)

BASF, Ludwigshafen

+ 14,000 tpa (2008)

HALDIA, India

+ 25,000 tpa (2007)

Copesul, Triunfo

+ 103,500 tpa (2005)

OXENO, Marl

+ 36,000 tpa (2006)

MOL, Tiszaujvaros, Hungary

130,000 tpa (2012)

Air Liquide, world leader in gases, technologies and services for Industry and Health 13 13/10/2015

1. Petrochemistry – General

2. 1,3-Butadiene

3. Benzene (Distapex®)

4. Acrylic Acid

5. Melamine

Agenda

Air Liquide, world leader in gases, technologies and services for Industry and Health 14 13/10/2015

Global Benzene Demand - Outlook

■ Global Production 2014: 45 mio tons

■ Expected Average Annual Growth Rate 2015 – 2020: 3.5 %

driven by growth in demand Styrene, Phenol & Cyclohexane

0

10

20

30

40

50

60

2014 2015 2016 2017 2018 2019 2020

Millio

ns

Other Production Sorces

On-Purpose Production

Production from Petrochemicals

Producton from Refineries

Source: Platts

Air Liquide, world leader in gases, technologies and services for Industry and Health 15 13/10/2015

Distapex® Proprietary Technology - Challenges

■ Separation of Benzene from a complex Mix of Pyrolysis Gasoline

■ C6 Mix is different in each individual project

Pygas

C5

Benzene

Selective

Hydrogenation

Full Hydrogenation

and

Desulphurisation

Extractive

Distillation

C7+ to Gasoline Pool

C5- to Gasoline Pool

H2

Off-gas H2 Off-gas

C6

Raffinate

Air Liquide, world leader in gases, technologies and services for Industry and Health 16 13/10/2015

AL E&C Frankfurt - The Technology Partner of Choice

■ AL E&C has long-term competence in Hydrocarbon Extraction

■ Lurgi technology developed in 1960s and continuously improved

■ Reference capacities ranging from 20,000 tpa up to 400,000 tpa

■ Use of same solvent as in Butadiene Extraction (NMP)

Synergies for Cracker operators

Advanced competences available with AL E&C Frankfurt

■ Outstanding solution for Benzene production

High purity and high Benzene yield

Air Liquide, world leader in gases, technologies and services for Industry and Health 17 13/10/2015

OPaL, India

165,000 tpa (2009)

6 Aromatics References since 2003, 25 in total

Gexaro, France

252,000 tpa (2005)

OMV, Burghausen

+ 10,000 tpa (2003)

HALDIA, India

+ 77,000 tpa (2005)

Petrochimica Uniao, Brazil

+ 123,000 tpa (2007)

SABIC, The Netherlands

280,000 tpa (2005)

Air Liquide, world leader in gases, technologies and services for Industry and Health 18 13/10/2015

Agenda

1. Petrochemistry – General

2. 1,3-Butadiene

3. Benzene (Distapex®)

4. Acrylic Acid

5. Melamine

Air Liquide, world leader in gases, technologies and services for Industry and Health 19 13/10/2015

■ Global Consumption 2014: 5.2 mio tons

■ Expected Average Annual Growth Rate 2014 – 2019: 3.8 %

driven by growth in demand for SAP and Acrylic Esters

Global Acrylic Acid Demand - Outlook

0

1000

2000

3000

4000

5000

6000

7000

2011 2012 2013 2014 2015 2016 2017 2018 2019

Asia Pacific

Africa

Middle East

Eastern Europe

Central Europe

Western Europe

South America

North America

Source: Nexant

Air Liquide, world leader in gases, technologies and services for Industry and Health 20 13/10/2015

Hexion

Heavy Acrylates

Glacial

Acrylic

Acid

SAP

Lurgi /

Nippon

Kayaku

Ester

Grade

Acrylic

Acid

Hexion

Light Acrylates

Technologies licensed by AL E&C Frankfurt

Others

Acrylic Complex and Alliances

■ Single Line Responsibility for EAA, GAA and Acrylates

■ Proven Technologies

■ 30 Years Experience

■ Operational

Excellence

■ Licensing

■ Engineering

■ Marketing

■ Proprietary

Catalyst

Air Liquide, world leader in gases, technologies and services for Industry and Health 21 13/10/2015

Acrylic Acid Technology - Challenges

Solvent

Extraction

Crude AA

Recovery

Raffinate

Stripping

Acrylic Acid

Purification

Absorber Offgas to Incinerator

Demin Water

Absorber Offgas Recycle

Propylene

Air

Steam

Waste Water Organic Waste

EAA Product

Quench/

Absorber

Reaction

■ Complex Reactor System

■ Oxidation of Propylene: avoid flammable envelope

■ Potential Polymerization of Acrylic Acid

Air Liquide, world leader in gases, technologies and services for Industry and Health 22 13/10/2015

■ Reactor Design in Cooperation with a Reknown Manufacturer

■ Single train capacity up to 160 ktpa

Lowest CAPEX

■ Safety Standards for HC Oxidation fully mastered

■ Highest performance catalyst on the Market

Lowest OPEX

Feedstock: Refinery Grade Propylene (> 80 wt.%)

■ Technological Features to prevent Polymerization

Internal Thermoplate Heat Exchangers

Use of Baffle Trays in Columns

■ Minimum Health & Environmental Impact

Non-toxic Extraction Solvent

Minimized Waste Generation

Lurgi / NK Acrylic Acid – Features

Air Liquide, world leader in gases, technologies and services for Industry and Health 23 13/10/2015

BPCL, Kochi, Kerala, India

160,000 tpa

Start-up: 2012

CNOOC, Huizhou, Guangdong, China

140,000 tpa

Start-up: 2002

Hexion, Sokolov, Czech Republic

30,000 tpa

3 References, 2 World-scale, July 2015: BPCL, India

Air Liquide, world leader in gases, technologies and services for Industry and Health 24 13/10/2015

Agenda

1. Petrochemistry – General

2. 1,3-Butadiene

3. Benzene (Distapex®)

4. Acrylic Acid

5. Melamine N

NN

NH2H

2N

NH2

Air Liquide, world leader in gases, technologies and services for Industry and Health 25 13/10/2015

0

200

400

600

800

1000

1200

1400

1600

1800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mto

ns/y

ear

Year

US Japan Europe Asia Pacific Rest of the world

■ Global Consumption 2014: 1.6 mio tons

■ Expected Average Annual Growth Rate 2013 – 2017: 4.6 %

driven by growth in demand for Laminates and Adhesives

Global Melamine Demand - Outlook

Source: National Energy Corporation

Air Liquide, world leader in gases, technologies and services for Industry and Health 26 13/10/2015

Melamine – Alliance

Licensing and

Know-How

Package

ALLIANCE

■ Technology Owner

■ Vast Operation Experience

■ Reference Plants

■ Training at Site

■ Site Visits

■ Technical Assistance

Edgein Technology

Developer &

Producer

AL E&C Frankfurt Technology

Licensor &

Engineering

■ Technology Licensing

■ Value Engineering and

Process Optimization

■ Marketing

■ Engineering

■ Project Execution World Wide

Client

Advanced

Technology

Air Liquide, world leader in gases, technologies and services for Industry and Health 27 13/10/2015

Melamine Technology – Challenges

■ Complex Fluidized Bed Reactor

■ Efficient Solids Handling

■ Efficient Product Separation

■ Avoid Corrosion Problems

■ Gas Phase Crystallization

■ Handling of Desublimation and Solid Product

■ Prevention of Fouling

Reaction

& Filtration Gas Scrubbing

Crystallization

& Separation

Urea

Melt Melamine

Product

Air Liquide, world leader in gases, technologies and services for Industry and Health 28 13/10/2015

Start-up: 2012

NevAzot, Stavropol, Russia

50,000 tpa

Melamine References

Since 1993: 18 Plants

Golden Elephant, China

Total capacity: 400,000 tpa

Air Liquide, world leader in gases, technologies and services for Industry and Health 29 13/10/2015

■ Air Liquide E&C cultivates Competences in:

Hydrocarbon Processing

Technology Research & Development

Mangement of Industrial Alliances

Acquisition of Technologies

Technological Challenges

Safety

Reliability

Conceptional Solutions

Effective Project Execution

Conclusion

Air Liquide E&C is the Technology Partner of Choice

End of presentation Any questions?