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OCI Partners LP Corporate Presentation August 2015
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2 Safe Harbor Provision Unless the context otherwise requires, references in this presentation to “our partnership,” “we,” “our,” “us” and similar terms, when used in a historical context, refer to the business and operations of OCI Beaumont LLC, a Texas limited liability company (“OCIB”) that OCI USA Inc. will contribute to OCI Partners LP in connection with this offering. When used in the present tense or future tense, those terms and “OCI Partners LP” and “OCIP” refer to OCI Partners LP, a Delaware limited partnership, and its subsidiaries, including OCIB. References to “our general partner” refer to OCI GP LLC, a Delaware limited liability company and a wholly owned subsidiary of OCI USA Inc. References to “OCI” refer to OCI N.V., a Dutch public limited liability company, and its consolidated subsidiaries other than us, our subsidiaries and our general partner. References to “OCI USA” refer to OCI USA Inc., a Delaware corporation, which is an indirect wholly owned subsidiary of OCI. References to “OCI Fertilizer” refer to OCI Fertilizer International B.V., a Dutch private limited liability company, which is an indirect wholly owned subsidiary of OCI. This presentation may contain forward‐looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “will,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Statements concerning our current estimates, expectations and projections about our future results, performance, prospects and opportunities and other statements, concerns, or matters that are not historical facts are "forward‐looking statements," as that term is defined under United States securities laws. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Investors are cautioned that the following important factors, among others, may affect these forward‐looking statements. These factors include but are not limited to: risks and uncertainties with the respect to the quantities and costs of natural gas, the costs to acquire feedstocks and the price of the refined products we ultimately sell; management's ability to execute its strategy; our competitive position and the effects of competition; the projected growth of the industry in which we operate; changes in the scope, costs, and/or timing of capital projects; general economic and business conditions, particularly levels of spending relating to demand for methanol and ammonia; our ability to operate as an MLP; changes in the regulatory and/or environmental landscape; potential conflicts of interest between OCI USA and other unitholders; and other risks contained in our registration statement (including a prospectus) filed with the United States Securities and Exchange Commission (the “SEC”). Forward‐looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at or by which such performance or results will be achieved. Forward‐looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. OCI Partners LP undertakes no obligation to update or revise any such forward‐looking statements. The Partnership has filed a registration statement (including a prospectus) with the SEC for the offering to which this presentation relates. Before you invest, you should read the prospectus in that registration statement and other documents the Partnership has filed with the SEC for more complete information about the partnership and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Partnership, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by emailing BofA Merrill Lynch at dg.prospectus_requests@baml.com or by calling either Barclays at (888) 603-5847 or Citigroup at (800) 831-9146. OCI Partners LP’s registration statement has not yet become effective and OCI Partners LP’s common units representing limited partnership interests may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The offering of the common units representing limited partner interests is being made by means of the prospectus only, copies of which may be obtained from the underwriters as noted above. This presentation is not, and under no circumstances is to be construed to be, a prospectus, offering memorandum, advertisement and is not an offer to sell securities. The SEC and state securities regulators have not reviewed or determined if this presentation is truthful or complete. Non-GAAP Financial Measures Disclosure Today’s presentation includes certain non-GAAP financial measures as defined under Regulation G of the Securities Exchange Act of 1934, as amended. A reconciliation of those measures to the most directly comparable GAAP measures is available in the appendix to this presentation.
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Partnership Overview
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4 Organizational Structure OCI N.V. (NYSE Euronext Amsterdam: OCI:NA) OCI USA Inc. 69,497,590 common units OCI Partners LP (NYSE: OCIP) OCI Beaumont LLC OCI GP LLC (our general partner) Public Unitholders 17,500,000 common units 20% limited partner interest 100% ownership interest 80% limited partner interest Non-economic general partner interest 100% indirect ownership interest ___________________________________ (1)No excess distribution coverage and GP has non-economic interest and no incentive distribution rights (1) New Capital Injection New Shares IssuedCapital Structure Common Units (mm)3,502,218OCI NV units (mm)69,497,59079.88% Share Price ($)17.132Public Unitholders units (mm)17,500,00020.12% Total Capital ($)60,000,000 Total Shares Outstanding86,997,590100%
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5 Partnership Overview Asset History of OCI Beaumont Key Milestones Plant Capacity (‘000 tpa) DuPont builds 600 Ktpa methanol plant, largest in the world at the time Modernization of The methanol unit using Lurgi GmbH’s Low Pressure Methanol technology Terra adds a 250 mtpa ammonia synthesis loop to The methanol plant Start-up of the ammonia plant built by Foster Wheeler with a Haldor Topsoe process design Terra shuts- Down methanol production OCI N.V. and its partner acquire the plant from Eastman Chemical OCI N.V. acquires minority stake securing 100% ownership of the plant 20001967 2011 2004 2011 1997 1980s Total CapacityMethanolAmmonia (Post-Debottleneck) Ammonia production at the facility begins in December Methanol production at the facility begins in July Debottlenecking process completed in 1Q 2015 2011 2015 2012
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6 Partnership Overview OCI Partners Summary OCI’s facility near Beaumont, TX (“OCI Beaumont”) is an integrated methanol and ammonia facility strategically located on the Texas Gulf Coast OCI N.V. acquired the Beaumont plant from Eastman Chemical Company in May 2011. Previously the Beaumont plant was owned by Terra Industries and DuPont, and was shut down from 2004 until OCI’s acquisition in 2011 Following a comprehensive upgrade, methanol and ammonia production commenced in July 2012 and December 2011, respectively Partnership has completed all work related to debottlenecking project in 1Q 2015, with ammonia and methanol lines restarted in 2Q –Increased methanol production capacity by 25% to 912,500 mtpa –Increased ammonia production capacity by 25% to 331,000 mtpa Partnership recently implemented a state-of-the-art methanol and ammonia truck loading facility on-site and expects to sell 80,000 mtpa via the new facility Facility Overview Ownership 100% Natural Gas Supply Volumes contractually secured and pricing based on spot market Distribution Direct sales to customers by truck, pipeline, and barges Product Pre – Debottlenecking Capacity Production During Full Year 2014 Current Production Capacity post- Debottlenecking Project Product Storage Capacity Metric Tons/Day Metric Tons/ Year (1) Metric Tons Metric Tons/ Day Metric Tons/ Year Metric Tons Methanol2,000730,000 617,0312,500912,500 42,000 (two tanks) Ammonia726264,990 259,214907331,000 33,000 (two tanks) CapacityKey Information (1) ___________________________________ (1)Assumes facility operates for a full year.
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7 Partnership Overview Superior Site with Strong Customer Relationships Barge Pipeline TermsDelivery (LTM) Contract Life:2-5 Years / Renewable Pricing: Jim Jordan Minus Payment Terms: 25-30 Days Key Customers: Barge Contract Life:Monthly Pricing:Tampa CFR Minus Payment Terms: 30 Days Key Customers: Methanol Customers Ammonia Customers TermsDelivery (LTM) Pipeline Gas Suppliers SuppliersDelivery (LTM) Pipeline Natural Gas Pipelines OCI Beaumont Barges Methanol Storage Kinder Morgan DCP Midstream Florida Gas Transmission Ammonia Storage Methanol Pipelines Exxon MobilMethanexLucite Methanol Air Liquide Nitrogen Pipeline Air Products Hydrogen Pipeline Selected Methanol Customers Ammonia Arkema Barges Methanol Houston Pipe Line Ammonia Pipeline Ammonia Lucite DuPont Methanol Truck Terminal Methanol Ammonia Truck Terminal Ammonia
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8 Partnership Overview Debottlenecking Project Drives Distribution Growth The Partnership delayed the planned debottlenecking to January 2015 due to the holiday season to ensure all pre- turnaround construction activities are complete. Construction completed in 1Q 2015. Total cost was US$ 384 million for project; US$ 97.5 million for debottlenecking, US$ 124.4 million to improving reliability and US$ 162.1 million for ensuring environmental compliance Overview Install a selective catalytic reduction unit Install an additional flare Modify the convection section and heat exchangers Increase the capacity of the synthesis gas compressor and the refrigeration compressor on the ammonia production unit Replace and refurbish equipment that caused downtime Both methanol and ammonia production lines have been running at or above design capacity since April 23, 2015 Processes Benefits Expands existing capacity Expected to maximize operational availability Increases efficiency of plant Increases margins; current headcount will be maintained Capacity Increase Previous CapacityCurrent Capacity Product Metric Tons/Day Metric Tons/Year Metric Tons/Day Metric Tons/Year % Increase Methanol2,000730,0002,500912,50025% Ammonia726264,990907331,00025%
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9 Partnership Overview Financial Overview and 2Q 2015 Results Summary *Net Debt is defined as Total Debt minus Cash and Cash Equivalents *Total Debt is equivalent to Total Long Term Debt which consists of the unpaid portion of Term Loan B Credit Facility and Revolving Credit Facility Three Months Ended Six Months Ended June 30 US$ million2015 2014Change 2015 2014Change Revenues79,568 113,447-29.9% 117,313 213,026-44.9% Cost of Goods Sold44,514 55,937-20.4% 69,679 108,434-35.7% Depreciation Expense12,648 5,695122.1% 18,732 11,35665.0% Selling, General and Administrative Expenses4,912 6,238-21.3% 9,972 12,529-20.4% Income from Operations (before interest expense, other income (expense) and income tax expense)17,494 45,577-61.6% 18,930 80,707-76.5% Interest Expense1,785 4,710-62.1% 4,291 10,537-59.3% Interest Expense - Related Party51 0.0% 101 0.0% Gain (loss) from asset disposal(1,982) - 5 - Other income30 587-94.9% 121 755-84.0% Income from Operations (before tax expense)13,706 41,403-66.9% 14,664 70,824-79.3% Income Tax Expense228 477-52.2% 293 891-67.1% Net Income13,478 40,926-67.1% 14,371 69,933-79.5% 30-Jun-15 31-Dec-14 Total Debt 433,025 395,0159.6% Net Debt 412,410 323,20527.6% Sales Volumes 000 Metric TonsH1 2015Q2 2015Q1 2015H1 2014Q2 2014Q1 2014 Ammonia84.649.135.5129.373.256.1 Methanol211.9158.953306.1161.6144.5
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10 Partnership Overview OCI Partners LP Long-Term Strategy Maximize utilization rates of the debottlenecked plants Leverage sponsor’s technical know-how, expertise and track-record in identifying value-accretive projects and new investment opportunities Evaluate potential downstream projects for both methanol and ammonia to diversify product portfolio Maximize and maintain distributions to OCIP unitholders of 100% of cash available for distribution Maintain strong customer relationships near Beaumont, TX Increase logistical capabilities with adding potentially ammonia and methanol by rail
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11 Partnership Overview Investment Highlights IA MO IL IN OH WI MN ND SD MT WA OR NV CA WY NE UT ID CO NM KS TX AZ OK AR AL LA GA FL MS TN KY SC NC WV PA VA NY ME VT NH MA CT NJ DC MI Producer of essential, global products: methanol and ammonia Global low-cost producer due to U.S. natural gas advantage US methanol and ammonia markets suffer from an import deficit, which is expected to continue through at least 2018 Key barriers to entry include high capital requirements, lengthy permitting process and proximity to customers / suppliers Advantageous access to feedstock, customers and infrastructure Strong cash flow generation and significant step-up in projected revenue and EBITDA from debottlenecking project Supported by a technically strong sponsor, with an exceptional entrepreneurial track-record
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Industry Overview
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13 Industry Overview Chinese MTO changing global Methanol demand Global Methanol End Use Breakdown (2015E and 2020E) (1) Shown in figure to the right, Methanol-to- Olefins is expected to grow at a remarkable pace, projected to become the largest end- use market for methanol by 2020 China is the world’s largest producer of MTO and in 2014, MTO accounted for almost 9 million tons of the country’s methanol demand (roughly 25%) – Since 2010, China has added 7 integrated and 4 non-integrated projects, with a combined methanol capacity of 14 mtpa – In terms of olefin production cost in China, MTO is at a cost advantage compared to Naphta The growing Chinese MTO demand will increase methanol price volatility and become major price driver in the long-term ___________________________________ (1)Source: MMSA In 2015, China expects to have six more MTO projects come on stream, with total maximum methanol consumption of 9.25 million tons
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14 Industry Overview Attractive U.S. Methanol Market Methanol Demand in the United States 2014 Global Production of Methanol by Geography (million metric tons per year) Total Production: ~72 Mtpa Total Demand The majority of U.S. methanol demand is currently supplied by imports In 2014, the U.S. imported approximately 4.5 million metric tons of methanol to meet its supply deficit (68% of total demand) The U.S. sources a majority of its imports from Trinidad, which is currently facing a natural gas supply deficit – Structural shortages in natural gas reserves have led to government rationing U.S. methanol demand is expected to increase at a CAGR of 4.2% between 2012 and 2016 – Open Fuel Standard Act of 2013 (Bill H.R. 2493), if passed in Congress, could represent a fundamental shift in demand for methanol as a fuel blend in the US ___________________________________ Source: Jim Jordan & Associates (2014).
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15 Industry Overview Methanol Prices Have Generally Risen Steadily Over Time While U.S. Natural Gas Prices Have Decreased Methanol and Natural Gas Pricing (1) (US$/Mt)(US$/MMBtu) Approximately 90% of Chinese methanol producers use higher cost coal as their primary feedstock and 10% use expensive natural gas – This effectively results in an international price floor of approximately US$ 300 per metric ton (stable floor price at any oil price) Since 2009, global methanol prices have generally risen steadily over time while natural gas prices have decreased ___________________________________ (1)Source: Bloomberg as of August 2015.
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16 Industry Overview Attractive U.S. Ammonia Markets Three-Year Average U.S. Ammonia Use by End Market (1) ___________________________________ Source: CRU (formerly Commodities Research Unit). (1)Based on 2010-2012. Fertilizer Feedstock Industrial Feedstock Direct Application as Fertilizer A significant portion of current and future U.S. ammonia demand is expected to be supplied by imports In 2014, the U.S. imported 5.0 million metric tons of ammonia – Represents 31% of total consumption Ammonia must be imported to the U.S. as approximately 20 ammonia plants were closed between 1999 and 2007, including OCIP’s Beaumont facility – These plants had total annual capacity of more than 8.0 million metric tons The U.S. is expected to remain a net importer for ammonia for the foreseeable future as the majority of new capacity announced has already been cancelled
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17 U.S. Fertilizer-Crop Price Relationship (1) (US$ / St)(US$ / Bushel) Historically, there has been a meaningful correlation between nitrogen fertilizer prices and crop prices – High crop prices incentivize farmers to increase fertilizer application in order to maximize crop yields, thereby increasing fertilizer demand and resulting in higher ammonia prices Marginal producers in Eastern Europe (particularly the Ukraine), effectively set the price floor, with each region applying its own premium based on a number of factors such as local supply/demand dynamics, transportation, logistics and government policies ___________________________________ (1)Source: Bloomberg as of August 2015. Industry Overview Ammonia Prices Remain Strong Along with Crop Prices
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18 Industry Overview Declining Trinidad Natural Gas Reserves: Supportive of OCI Partners LP Story Overview Trinidad faces fundamental gas deficit issues as increased natural gas production has not been matched by new reserves, leading to a fall in reserve life to 8.8 years in 2013 Natural gas production fell in 2011 and 2012 as existing reserves have been depleted Appropriation of Natural Gas Impact on Nitrogen Fertilizer Production Ammonia capacity utilization rates in Trinidad have been consistently declining since 2011 as gas supply issues limited production The nitrogen industry in Trinidad was established when there was a gas cost-based competitive advantage over the U.S.; however, as U.S. gas costs have fallen, this advantage has eroded From 2013 to 2014, gas allocation to the production of ammonia dropped by 12%, and allocation to methanol dropped by 1.2%. Fertilizer exports to the U.S. are expected to continue to fall, creating a more favorable environment for domestic production ___________________________________ Source: CRU March 2013 Ammonia 10 Year Forecast, Trinidad Ministry of Energy, Wood Macknezie, Integer, EIA. (TCf) (R/P Ratio)
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___________________________________ (1)Source: EIA, Annual Energy Outlook 2014. 19 Industry Overview We Expect Our U.S. Natural Gas Advantage to Continue for the Foreseeable Future Total U.S. Natural Gas Production and Consumption, 1990 – 2040 (1) (Trillion Cubic Feet) The emergence of a U.S. “shale gas advantage” has led to an increase in natural gas supply Production from shale formations increasing to ~50% of total annual natural gas production by 2040 as compared with 34% in 2011 According to the Energy Information Association (the “EIA”) forecasts, increases in the supply of U.S. natural gas are tracking to exceed increases in U.S. natural gas demand by 2019, leading to approximately 5.8 Tcf of net exports by 2040 Increased US natural gas production… …has lead to lower prices This abundance of U.S. natural gas has resulted in attractive domestic natural gas prices, often substantially below natural gas prices in other global markets, such as Europe, Japan and Northeast Asia Having a low cost feedstock for the majority of our methanol and ammonia production gives us a significant competitive advantage The EIA expects U.S. Henry Hub natural gas prices to remain low for the foreseeable future; natural gas forward for 2015 is under US$ 3.00 MMBtu
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Sponsor Overview
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21 Sponsor Overview Overview of Our Sponsor – OCI N.V. OCI N.V. is a global natural gas-based fertilizer and industrial chemicals producers with production facilities in the Netherlands, USA, Egypt, and Algeria As of May 2015, the Sawiris family collectively owns 53% of the outstanding shares Currently employs approximately 3,000 people worldwide OCI N.V. is traded on the NYSE Euronext Amsterdam (OCI:NA) Approximately € 6.3 billion market capitalization as of close August 10, 2015
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22 Sponsor Overview Overview of Our Sponsor – OCI N.V. Summary Overview Leading global natural gas-based fertilizer & chemicals producer ‒Production facilities in The Netherlands, USA, Egypt and Algeria complemented by global distribution network ‒Top 5 five global nitrogen-based fertilizer producer - sellable capacity of c.7.7 mtpa at end-2014 with competitive blended natural gas cost advantage over peers Natural gas monetization focus following demerger of Construction business as of 9 March 2015 ‒Pure play fertilizer & chemicals company offering distinct investment propositions Growth initiatives 2014 - 2016 ‒2015: additional volumes from Sorfert Algeria, debottlenecking OCI Beaumont and Iowa Fertilizer Co start-up ‒On track to increase sellable capacity by 60% to c.12 mtpa by end-2016 ‒On June 12, 2015, OCI NV acquired BioMCN, a methanol and bio-methanol producer in the Netherlands with two methanol plants, of which one is operational (440 ktpa) and one mothballed (430 ktpa) Trading on Euronext Amsterdam since 25 January 2013 (NYSE Euronext: OCI) ‒AEX Index constituent since March 2014
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23 Sponsor Overview OCI Fertilizer Highlights With the addition of Iowa Fertilizer Company (IFCo), total design saleable capacity for nitrogen-based fertilizers will increase to 8.7 million metric tons (10.4 million tons including merchant ammonium sulphate) by 2016 OCI Fertilizer operates five production assets located in North Africa (Egypt, Algeria), Europe (the Netherlands) and the U.S., with production capacity of nearly 7.0 million mtpa of nitrogen‐based fertilizer - This capacity is expected to increase to 8.6 mtpa in 2016 with the addition of IFCo and OCI Beaumont’s post-expansion capacity Fertilizers produced include ammonia, urea, calcium ammonium nitrate (CAN), urea ammonium nitrate (UAN) and other intermediary products; the business also sells ammonium sulphate (AS) out of the Netherlands and Belgium OCIP also produces methanol at OCI Beaumont with a capacity of 0.75 mtpa expanding to 0.9 mtpa OCI Fertilizer’s downstream product portfolio includes: - Melamine production - AS distribution North African facilities with attractive production costs Global in-house distribution network with a presence in Europe and strategic joint ventures in Brazil and the U.S. Egyptian Fertilizers Co. Egypt Basic Industries Co OCI Nitrogen Sorfert OCI Beaumont Iowa Fertilizer
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Appendix
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25 Appendix Board of Directors OCI GP LLC Chairman Director, President & CEO Director Michael Bennett Frank Bakker Renso Zwiers Nassef Sawiris Background Significant experience in the nitrogen industry, including serving as CEO of Terra Industries from 2001 to 2010 Served as vice president and general manager of OCIB from September 2011 to June 2013 Served as COO of OCI Fertilizer since January 2013 and has served as CEO of OCI Nitrogen since May 2010 Served as CEO and director of OCI N.V. and Orascom Construction Industries (“OCI SAE”) since its incorporation in 1998 Director Francis Meyer Served as Executive VP of Terra Industries from 2007 until April 2008 and as Senior VP and CFO from 1995 until 2007 Director Dod Fraser Served as President of Sackett Partners Inc. since its formation in 2000 upon retiring from a 27-year career in Investment Banking CFO & Vice President Fady Kiama Served as corporate planning director and group controller of OCI SAE from 2001 until May 2013 Director Nathaniel Gregory Senior lecturer in finance at the MIT Sloan School of Management.
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26 Appendix Partnership Overview MethanolAmmonia Methanol is a liquid petrochemical utilized in a variety of industrial and energy-related applications The primary use of methanol is to make other chemicals - ~30% of global methanol demand is converted to formaldehyde, which is used in various industrial applications Methanol is also used in the lumber industry, in paper and plastic products, and various other paint and textile applications Outside of the U.S., methanol is used as a fuel in several capacities: - Direct fuel for automobile engines - Gasoline blended fuel - Octane booster in reformulated gasoline Essential Building Blocks for Numerous End-Use Products Ammonia constitutes the base feedstock for nearly all of the world‘s nitrogen chemical production Over 95% of global ammonia output is used as a feedstock to produce other chemical forms of nitrogen, such as: - Fertilizers - Blasting/mining compounds - Fibers and plastics - NOx emission reducing agents - Direct application to soil for agricultural purposes Ammonia is widely used in industrial applications, particularly in the Texas Gulf Coast market
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Heat from Natural Gas Combustion 27 Appendix Product Process Overview Optional H 2 N 2 Natural Gas Desulphurization Reactor Steam Reformer Unit Heat Recovery Syngas Compression Methanol Synthesis Reactors Cooling Methanol Separation Methanol Distillation Barge / Pipeline Methanol Storage Syngas Steam Ammonia Separation Cooling NH 3 Synthesis Syngas Compression PSA Hydrogen Recovery Liquid Pure Ammonia Liquid Pure Methanol H2H2 Recycle Ammonia Storage Recycle Ammonia Process Flow Methanol Process Flow Methanol production unit is a 730,000 metric ton per year unit that is comprised of Foster Wheeler- designed twin steam methane reformers for synthesis gas production, two Lurgi-designed parallel low pressure, water-cooled reactors and four distillation columns Ammonia production unit is a 264,990 metric ton per year unit with a Haldor Topsøe-designed ammonia synthesis loop that processes hydrogen produced by the methanol production process as the feedstock to produce ammonia Natural Gas Steam is also used to drive the compressors Purge Gas
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28 Appendix Site Facility Pictures
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29 Appendix The U.S. Natural Gas Outlook Annual Average Henry Hub Spot Natural Gas Prices, 2001 – 2027 (1) Low U.S. natural gas prices contribute to the competitive position of U.S. methanol and ammonia producers relative to foreign producers Natural gas forwards project low Henry Hub Spot prices through 2027 – Below $4.00 per MMBtu until 2024 – Below $4.50 per MMBtu until 2026 ___________________________________ (1)Source: Bloomberg forwards as of August 2015. ($/MMBtu)
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30 Appendix US Methanol Imports ___________________________________ (1)Source: Argus JJ&A
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31 Appendix Gulf Methanol Capacity ___________________________________ (1)Source: Argus JJ&A
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32 Appendix New Methanol Capacity Start YearMethanol Facility (1) Location Production Capacity (MTPA) Technology/EPCStatus 2015 Methanex – Geismar IGeismar, LA1,000,000Jacobs Engineering1/24/15 Produced first methanol from Geismar 1 2015 CelaneseClear Lake, TX1,300,000WorleyParsons4/16/15 Expected start-up in October 2015 2015 Pampa Fuels LLCPampa, TX65,000 ExxonMobil/Proman Group 6/1/15 Fully operational and completed first shipment of methanol 2016 Methanex – Geismar IIGeismar, LA1,000,000Jacobs EngineeringOn target for methanol production in late Q1 2016 2017 OCI – NatgasolineBeaumont, TX1,650,000Lurgi/OECConstruction began in November 2014 - CelaneseBishop, TX1,300,0004/16/15 Celanese entered into exclusivity for possible JV with Mitsui & Co - Lake Charles Clean EnergyLake Charles, LA500,000KBR/Turner Industries12/06/14 Leucadia withdraws from project development - South Louisiana MethanolGeismar, LA1,650,000 Johnson Matthey Davy/Fluor No recent developments - ValeroSt. Charles, LA800,000No recent developments ___________________________________ (1)Source: JJ&A Annual Report (2014).
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33 Appendix New Ammonia Capacity Start YearAmmonia Facility (1) Location Production Capacity (STPA)* Sellable/Usable Capacity (STPA) (1) Technology/EPCPermittingStatus 2015AgriumBorger, TX+160,000-KBR2/25/14 Expected completion in second half of 2015 2015KochEnid, OK+350,000-KBR 8/16/14 Began construction in mid-September; project will be implemented over three years 2015PotashCorpLima, OH+110,000-KBRExpected start up in late 2015 2015OCIWever, IA850,000100,000KBR/OECOn schedule to complete by late 2015 2016CF Industries Donaldsonville, LA 1,275,000185,000 ThyssenKrupp Uhde 2/24/15 New plants on schedule; expect urea production in Q4 2015, ammonia online early 2016 2016CF IndustriesPort Neal, IA850,00080,000 ThyssenKrupp Uhde 3/04/15 Cost overrun of ~$400 mm in projects, primarily attributed to Port Neal expansion 2016Dyno-CornerstoneWaggaman, LA850,000 KBR8/05/13 Cornerstone breaks ground on project 2016LSB IndustriesEl Dorado, AR375,000 Leidos/SAIC (for Nitric Acid) Nitric acid plant expected start up in early 2016 2017Dakota GasificationBeulah, ND--IHI E&C1/28/14 Urea plant scheduled for completion in early 2017 -Koch (Invista)Victoria, TX400,000 1/31/14 Invista has put project on hold -Northern PlainsGrand Forks, ND850,000100,000 5/02/15 Announces product list of UAN, urea, DEF, AN, ATS, and anhydrous ammonia; no construction progress to date - Ohio Valley Resources Rockport, IN850,000350,000KBR/SEI 12/19/13 Signed MOU with TEQSA for development, and selected Sinopec (SEI) for FEED & EPC; no construction progress to date -MFC (Fatima)IN850,00050,000 6/24/14 Signed MOU with Maire Tecnimont; no construction progress to date -CHSSpiritwood, ND850,000- 9/05/14 CHS approved final plans for construction of fertilizer plant; no construction progress to date ___________________________________ (1)Source: Blue Johnson (2014). * Production capacity with “+” indicates additional capacity expansion on existing facility
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34 Appendix Methanol and Ammonia Plant Closures Year of Closure Ammonia FacilityLocation Production Capacity (MTPA) 1999Potash Corp.Clinton, IA281,000 1999Potash Corp.La Platte, NE231,000 1999SolutiaLulling, LA551,000 2000Borden Chemicals & PlasticsGeismar, LA468,000 2000Diamond ShamrockDumas, TX83,000 2001AgriumKennewick, WA237,000 2001CytecFortier, LA485,000 2001DuPontBeaumont, TX540,000 2001FarmlandLawrence, KS518,000 2001VanguardPollock, LA568,000 2003KochSterlington, LA1,213,000 2003SimplotPocatello, ID116,000 2003TerraYazoo City, MS193,000 2004Air ProductsPace, FL110,000 2004Potash Corp.Memphis, TN452,000 2004TerraBlytheville, AR496,000 2005AgriumKenai, AK694,000 2005Diamond ShamrockDumas, TX88,000 2005Terra*Beaumont, TX264,990 2007AgriumKenai, AK777,000 Year of Closure Methanol FacilityLocation Production Capacity (MTPA) 1998 Georgia GulfPlaquemine, LA480,000 1999 MethanexFortier, LA570,000 1999 AshlandPlaquemine, LA450,000 2000 SterlingTexas City, TX450,000 2000 Borden Chemicals & PlasticsGeismar, LA990,000 2001 Delaware CityDelaware City, DE200,000 2001 EnronPasadena, TX375,000 2003 Air ProductsPace, FL120,000 2003 El PasoCheyenne, WY180,000 2004 LyondellChannelview, TX770,000 2004 CelaneseClear Lake, TX600,000 2005 Beaumont Methanol *Beaumont, TX730,000 2005 CelaneseBishop, TX500,000 ___________________________________ * Represents current OCI Beaumont facility.
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