© 2018 UOP LLC. A Honeywell Company All rights reserved. UOP 8315-0

Reducing Investment and Operating Cost

Advanced Technology in Aromatics Leo Bresler, Ph.D. Senior Manager

Aromatics

1 November 2018 Indian Petrochem 2018 Mumbai, India

1

Strong Fundamentals: pX is Cheaper to Produce than Buy

Para-xylene Demand: World-Wide • Para-xylene (pX): High value, transportable

chemical produced from heavy naphtha; used in polyester fiber & PET resin

• Demand growth 5% WW exceeds GDP

• China consumes more than half of all pX produced and imports more than half of what it consumes

• Even with large China build, new capacity cannot keep up with demand

– 2018 China imports: 16.2 MMTA

– 2028 China imports: 12.6 MMTA

• pX-naphtha spread $400-450 /Ton, can exceed $600

• Break-even w/ modern technology now < $200 /Ton

PX

, M

MT

A

China pX Supply Demand Balance

Source: PCI/UOP

0

5

10

15

20

25

30

35

40

45

2012 2014 2016 2018 2020 2022 2024 2026

Production Imports

World pX Supply Demand Balance

PX

, M

MT

A

2018-2027 CAGR = 5%

60%

70%

80%

90%

100%

0

10

20

30

40

50

60

70

80

2012 2014 2016 2018 2020 2022 2024 2026

Supply Demand Operating Rate

Source: IHS

150

250

350

450

550

650

Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19

N E Asia N W Europe

USGC

Break even

Regional pX-Naphtha Spread $/MT

India pX Value Chain – Capacity and Demand Growth

2

India pX capacity expansion lagging behind PTA, polymers growth

Source: PCI Q2 2018, HIS * - ‘14-’19 CAGR%

pX

PTA

Melt Phase

DMT Film

Resin

Staple

Filament

0

0

0

MEG

7.1%

3.4%

6.6%

9.7*%

’16-’21 CAGR%

6.7% 2%

‘18-’28 CAGR%

MM

TP

A

MM

TP

A

MM

TP

A

MM

TP

A

MM

TP

A

6.4

9.3

12.0

6.4

8.7

10.9

(0.6) (0.3)

0.2

2018 2023 2028

MM

TP

A

• *India currently [’17] net exporter of pX. Mainly to China & SE Asia country

• Due to fast growing demand by 2023 India will be in deficit of pX

Capacity

Import

Demand

Export

5.9 5.9

7.1

3.8

5.5

7.3

0.4*

(1.2) (1.5) 2018 2023 2028

5.5% 6.5%

‘18-’28 CAGR%

Adding New pX Capacity in India

3

Multiple factors support building pX in India

• Domestic demand: Fast growing domestic pX & derivative demand

• Slow supply increase: Capacity expansion slower than demand

• Feed stock availability: India’s exported ~ 200 kb/d naphtha in 2018 – Forecasted exports ~ 150 kb/d by 2025

• Location: India’s major export goes to China & SE Asia. So proximity to Asian consumers is a great advantage for India exporters

UOP’s Modern pX Technology (2018)

4

UOP: Long Tradition of Innovation and Commercialization

New economies

of scale

• ADS-47 adsorbent provides 25% higher capacity

• Proven in 18 commercial applications since 2011

• UOP adsorbent chamber and rotary valve designs help provide unmatched reliability at capacity

exceeding 2 MMTA

pX in a single train

Improved feed

utilization

• Latest generation CCR Platforming, Isomar, and Tatoray catalysts can deliver substantial

economic benefit

through improved yields, higher stability, and higher activity

Step change in

energy efficiency

• The Energy Efficient Aromatics Complex (EEAC) reduces energy consumption 25-40%

• Advanced heat integration

• 8 licenses since 2010

• 3 commercial

operations since

2014

Game-changing LD

Parex technology

• Reduces pX complex capital cost by 20%

• Builds on EEAC and achieves 20%

further energy

savings

• 13 new LD Parex plants licensed since 2016

Upgraded Catalysts

• UOP R-334 Platforming Catalyst − Increased aromatics, H2

& C5+ yields

− 6 operating units

• UOP I-600 EB Isom Isomar Catalyst − 2 operating unit

UOP TA-32 Tatoray Catalyst

− Improved activity & yields

− 10 commercial applications

Innovation Drives Value Creation

5

UOP’s Hallmark: Continuous Value Creation & Commercialization

UOP R-364 Platforming™ Catalyst

• ImpX for CCR Platforming

LD Parex Aromatics Complex Relaunch

– 20% CapEx reduction

– 20% lower energy than EEAC

– ADS-50 adsorbent

– 13 complexes in D/C, 20+ MMTA total capacity licensed

UOP R-284 Platforming™ Catalyst

• Improved aromatics yields

• 4 operating unit

• 25% higher capacity

• 18 commercial applications

UOP TA-30 Tatoray Catalyst • Max conversion of

heavy aromatics

• 9 operating units

UOP I-500 Isomar™ EB Dealk Catalyst

• Low xylenes losses / 11 commercial applications

UOP Tatoray™ PTD Process

• High Yield / 1 operating unit

2010 2011 2012 2013 2014 2015 2016 2009

+22% ROI +30% ROI Net Energy Required

Reduced by 1/3 vs. Best 2009 Designs

Additional 14%+ Energy Reduction

vs. Best 2010 Design

CAPEX and OPEX Reductions vs.

Best 2012 Design

+45% ROI

2017 2018+

1st start-up of Modern LD Parex

- 15-25% CapEx savings

- 20-35% lower utilities

- 20-40% less naphtha for same pX capacity

UOP ADS-43

MX Sorbex

Adsorbent

Toluene Methylation

UOP ADS-47 Parex™ Adsorbent

Energy Efficient Aromatics Complex

• 25-40% lower energy consumption

• 3 operating units

Technology Adoption Since 2010

6

Reliable Track Record Delivers Successful Market Adoption

• Rapid adoption of breakthrough technologies since 2010

• UOP capabilities are the keys to success:

‒ Continuous investment in state-of-art R&D to invent

‒ Leading engineering, manufacturing and service to commercialize

and execute

Description

Innovation

Year

Introduced

Commercial

Applications

by 2018

ADS-47 Parex Adsorbent 25% higher capacity 2011 18

I-500 EB-dealkylation

Isomar Catalyst

Higher xylene retention, activity and benzene purity

2013 11

TA-32 (30) Tatoray Catalyst Higher xylene selectivity

and heavy feed processing 2014 (2010) 10 (9)

EEAC Energy Efficient

Aromatics Complex

Flowscheme

25% less energy

consumption for PX

from reformate

2010 8

LD Parex Light Desorbent

Parex Flowscheme

20% less CAPEX and 40%

less energy consumption 2015 13

LD Parex: State of the Art

7

UOP’s LD Parex: Latest in a Line of Breakthroughs

13 world-scale

pX Complexes

20+ MMTA total pX capacity

licensed to date

Advantages over pDEB and

crystallization systems

• Light desorbent dramatically relaxes Parex feed fractionation need, enabling 40% less energy requirement

• Greatly simplified flowscheme

eliminates 20% of equipment and CapEx

• UOP has 40+ years experience

with light desorbent in 16 commercial plants

• UOP’s unique rotary valve

system is unmatched in simplicity and reliability

Enabled by UOP

adsorbent capability

• ADS-50 based on ADS-47 adsorbent technology

• ADS-47 commercialized in 2011 with 25% higher

capacity vs previous generation

• ADS-47 reliability

proven in 18 commercial plants

Modern UOP Aromatics Complex: LD Parex

8

20% Less Equipment than Conventional Design

• Uses Light Desorbent (Toluene)

• Desorbent taken as Raffinate Column overhead & Extract Column sidedraw

• A9 limit in XC overhead no longer a design constraint

• Overall complex still evaluated as a “system” to increase heat integration and reduce energy input

Isomar Unit

Raffinate

Benzene

A8 Rerun Column

Reformate Splitter

Heavy Aromatics

Reformate Light Ends

Paraxylene

Raffinate Column

Extract Column

Tatoray

Unit

ED Sulfolane Unit

Parex

Unit A8 Stripper

Heavy Aromatics Rectifier

Benzene-Toluene Column

Desorbent

LD Parex Delivers Lowest Cost pX Production

9

Conventional

EEAC • 3 in operation

•5 Design/Construction

LD Parex • 7 Design/Construction

2009 2010

2018

25% Energy Reduction

LD Parex

20% CapEx Reduction &

40% Energy Reduction

Energy Consumption

CA

PE

X

20% More Energy

Reduction

UOP 8315-9

Cost Advantage from Continuous Improvement: Reformate-based pX Complex

10

Continuous Innovation Drives Profitability

Reformate to pX, Asia feed, product, & energy prices 2017/8

590

610

630

650

670

690

710

730

750

770

790

2006 2009 2012 2015

CC

OP

, $

/MT

pX

UOP Pre-2005

UOP 2008

UOP 2015

UOP 2011

R-254/284/334

ADS-50

I-500/I-600 Isom

TA-30/32

LD Parex

R-264 based

ADS-37

I-300

TA-20HP

R-264 based

ADS-47

I-350

TA-30

Energy Efficient

(EEAC)

R-134 based

ADS-27 (2 train)

I-300

TA-5

$120/MT

Savings

2018

UOP 2018

Further Energy

Efficiency

Improvements

Reliability and Scale

11

Historical Knowledge of Entire pX Complex Key to a Reliable Design

• World-scale pX plant capacity

‒ 1975: 150 KMTA

‒ 1995: 400 KMTA

‒ 2015: 1,500 KMTA

‒ 2018: 3,000+ KMTA

• Increasing economies of scale without sacrificing reliability requires strong licensor capabilities

‒ Improved adsorbents and catalysts

‒ State-of-art design practices and validation

‒ Latest equipment design and fabrication methods

• Complex design is not only pX purification

– Limitations in any unit or equipment can bottleneck the entire production

– Lost production from a bottleneck can be very costly for modern plants

Example: 1/3 lost capacity of world-scale

plant for 2 years costs $120 M

UOP Parex Unit Sizes Across Time

Source: UOP licensed unit data

0

400

800

1200

1600

2000

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Ca

pa

cit

y,

KM

TA

pX

Commissioned

In Design / Construction

UOP Rotary Valve (RV) and Adsorbent Chamber Internals (ACI)

• Proven >99.9% reliable at all capacities

• Single train capacity reaching 3 MMTA pX

• ACI design optimizes flow distribution to maximize adsorbent performance

LD Parex Case Study Location: Middle East

12

Tremendous value added by latest generation technology

• Para-xylene Capacity: 1,400 kMTA

‒ National Oil Company

‒ Integrated refinery and petrochemicals plant

‒ 12 UOP process units for petrochemicals and clean fuels production

• State of the Art Facility, Utilizing Latest Technologies for Competitive Advantages vs. older complexes

‒ Optimized solution using LD Parex delivered nearly $2 billion in NPV

• Full Support Project Execution

– UOP managed entire engineering design

– Seamless FEED design

– Faster project execution

OpEx Impact of LD Parex Conversion

Heavy

Desorbent

Conventional LD Parex Savings

$/MT pX

Fuel Base Base - 12% 5

Steam Base Base - 44% 4

Electricity Base Base - 3% 0.5

p-DEB Base None 1

Total 10.5

LD

Par

ex D

rive

s D

ow

n

Pro

du

ctio

n C

ost

s

PX – Benzene Flexibility with Toluene Methylation

13

Existing plants can benefit from toluene methylation

• Selective alkylation of toluene with methanol to generate above-equilibrium pX xylenes

• Significant decrease in cost of pX

‒ 15-25% CapEx savings

‒ 20-35% lower utilities

‒ 20-40% less naphtha for same pX capacity

Revamp: 10% pX Yield Benefit

with Toluene Methylation

Co

mb

ine

d P

rod

uc

t Y

ield

, %

Base Case TM

PX

Benzene

Heavy Aromatics

C6 Raffinate

Light Ends

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

CCR Platforming™

Unit

Naphtha

Benzene

p-Xylene

Light Ends

A11+ Ref

orm

ate

Sp

litte

r

NHT

Tatoray™

Unit

To

luen

e F

rac

BZ

Fra

ctio

nat

ion

Isomar™

Unit

Deh

epta

niz

er

A9

Fra

c

Xyl

ene

Co

l

Parex™

Unit

Toluene

Methylation

Toluene

Heavy Aromatics

Methanol

Sulfolane

Raffinate

CH3 CH3

CH3

CH3OH +

Toluene Methanol para-Xylene

Summary: Modern UOP pX Complex

14

UOP’s Latest Designs Deliver Significant Value

LD Parex is the

latest in a line of UOP innovations, offering regional producers significant cost

advantage over pX

capacity in East Asia

The LD Parex design delivers 20% CAPEX savings and 40%

less energy and

carbon emissions

UOP has effectively scaled its pX technology, with successful and

proven operations

• >2.5 MMTA single train plants are in D/C

• New designs possible up to 3 MMTA

UOP technology is among the world’s

most reliable,

with virtually all licensed units operating well, at or above nameplate capacity since start-up

UOP’s commitment to innovation ensures our customers will be low

cost producers for

years to come

• LD Parex – Breakthrough Technology

• ADS-50 Adsorbent

• Toluene methylation

• Future Improvements

$

15

UOP 8315-15