0. UOP Advanced MTO and OleflexTM for Profitable Olefin Production
Iran Petrochemicals Forum 2017
Tehran, Iran
22 & 23rd April 2017
UOP Limited – Nigel Orchard
UOP Advanced MTO and OleflexTM for Profitable Olefin Production

1. UOP Creates Knowledge for the Oil and Gas Industry
Refining
Petrochemicals
Natural Gas
Renewables
UOP technology makes more than 60% of the world’s gasoline, 70% of its polyester and 90% of biodegradable detergents, and processes more than 40% of its LNG
Better Economics
Continuous Innovation
Reliability
Expertise
UOP technologies offer a high return on investment
Continuous technology improvement allows customer operations to remain cutting edge
UOP technologies are among the most widely proven in the world
UOP has a century-long record leading technology development for the oil and gas industry
Process Technology
Catalysts
Adsorbents
Equipment
Services
2,500
31out of 36 refining technologies in use today were developed by
UOP
Largest process licensing organization in the world
Engineers
and scientists
200 with PhDs
3,000+
Active patents
R&D employees
© 2016 by UOP Limited. All rights reserved.

2. Outlook for Light Olefins Pricing
Propylene capacity additions come on stream at a faster rate than demand growth.
Propylene pricing narrows and tracks ethylene rises to 2020 due to:
Previous global propylene capacity overbuild outweighed by demand growth
Additional Asia Region Polypropylene capacity
Asia Region to become net exporter of polypropylene driving propylene demand & pricing up
Source: International Market Consultant
Pricing Outlook for Ethylene and Propylene is positive

3. Why are On-purpose Routes to Olefins Attractive
MeOH, Naphtha, C2=, C3= Pricing
Propane / C3= Price spreads
Source: International Market Consultant
Price spreads are favourable for both MTO and PDH

4. Global Olefin Markets Grow Strongly
Ethylene annual demand growth, 3.7%
Ethylene demand and production aligned over period with gradual cracker projects and:
NGL (shale) cracker feedstock usage growing – increases ethylene reduces propylene production
Propylene annual demand growth, 4.5% - More applications than ethylene eg:
Polypropylene, Acrylonitrile, Acrylic Acid, Propylene Oxide, Propylene Glycol
On-purpose technology grows rapidly to ~30% of market by 2020
Source: International Market Consultant
Higher propylene growth being met by on purpose technologies

5. Value chain uplifts
MTO Route
PDH Route
$ “lift” for MTO
$ “lift” for PDH
2020 Price Forecast
Strongest value addition is in olefin production step

6. Olefin Production Economics – Cash Cost of Production
Naphtha cracking is least attractive route
High naphtha pricing – linked to crude
A discount on naphtha of ~30% is needed to achieve MTO CCOP
MTO CCOP is based on Stand alone MTO
In reality a new complex from Gas to Olefins (Olefin Derivatives) will share benefit of Natural Gas Pricing across the whole production chain
Ethane, propane and gas based technologies are more attractive
Feed prices decoupled from crude
Ratio on $/Energy content has varied between 3x and 8x in last 7 years despite low crude prices
2021 Price Forecast – netback Iran
Naphtha crackers less attractive than alternative technologies

7. C3 Oleflex Complex
C2-
By-product H2
Propylene
Deethanizer
Oleflex
Process
Propylene – Propane Splitter
Depropanizer
C3 LPG
SHP
C4+
C3 Oleflex Process used for 67% of operating PDH units
UOP

8. Why Customers Choose UOP Oleflex
Lowest Overall Cost of Production
Lowest MT C3/ MT C3=
2wt% higher Hydrocarbon yield
<80% competitor energy use
Lower investment Required
Lowest number of reactors (4)
Lowest cost of design
Smallest plot size
Operates at low positive pressure
Efficient continuous regeneration
Best economy of scale/ low equipment count
High Reliability/ On-Stream Availability
Continuous, on-line regeneration
Proven regeneration technology (~300 in operation)
More days on stream (no shutdown for catalyst change)
Smallest Environmental & Physical Footprint
Lowest CO2 emissions
Low NOx and VOC emissions
Lowest energy consumption
Non toxic (Pt) catalyst system
>$6M/yr additional margin
~$50M Lower Investment
$3-5M/yr additional margin
Based upon 600KMTA of Propylene
Strong return on investment – resilient to product pricing

9. UOP Leads the Way in Dehydrogenation
UOP has been awarded 80% (37 of 46) of dehydrogenation projects competitively bid since 2011
Includes ZPC and Borealis
Source of competitor awards is public domain document “Worldwide Refinery Processing Review, Third Quarter 2015” by Hydrocarbon Publishing Co (from UOP Library)
8 repeat customers with two or more units
3 customers who already have a competitor iC4 unit selected UOP for their PDH project
2 Oleflex units announced in Europe in 2016
Oleflex Process is a proven investment and UOP is the market leader

10. C3 Oleflex- Profitable and Resilient to Price Volatility
High
Typical
Low
Maybe add continuous improvement and hide the dollars?
Basis: 600 KMTA Oleflex, Propane priced at 630 $/MT, NE Asia Pricing, 100% equity
Oleflex technology delivers high ROI even when prices are low
Cost-advantaged propane provides potential for even higher return
UOP

11. UOP Advanced MTO Technology
Overall Block Flow Diagram
Reactor/Regenerator (Rx/Rg) Section
Olefin Cracking Process (OCP)
Olefin Purification Unit (OPU)
CH3OH
H2O
C3=
C2=
C4=+
C2= + C3=
C4=+ By-Product
All Sections Commercially Proven
© 2016 UOP Ltd. A Honeywell Company All rights reserved.

12. Why Customers Choose UOP Advanced MTO
Highest Total C2= and C3= Yield
~25% higher C2= + C3= yield versus commercialized alternative
~5% higher C2= + C3= yield than best represented alternate MTO Technology
Lowest Capital Cost
~12% lower capital cost than alternate MTO technology
Small Rx/Rg & fewest product compression stages
Fixed bed reactor system
Single refrigeration system and no demethanizer column
Lowest Operating Cost
~60% lower catalyst makeup rate
Lower utility consumption
Robust MTO catalyst, lowest catalyst makeup rate, lowest compression
Highest Reliability & Unit Availability
Full Rx/ RG combustion regenerator, No CO Boiler
Rx/Rg uses UOP’s extensive FCC experience - >200 FCC units in operation
OCP uses efficient 2 fixed bed reactor system
~$25M/yr
additional product revenue
~$60M Lower CapEx
~$6M/yr lower OpEx
>$2M/yr more Light Olefin
* Based upon unit capacity =1650kMTA MeOH
Best project economics - lowest capex and opex

13. UOP Advanced MTO Yield Performance
Technology Comparison
C2= + C3= Carbon Yield %
UOP Advanced MTO yields = highest added value
© 2016 UOP Ltd. A Honeywell Company All rights reserved.

14. UOP Advanced MTO vs Alternate MTO Technology
Comparison of project financial performance:
Project IRR
(100% Equity)
UOP Advanced MTO
Alternate MTO
2020 Intl. Expected
30%
21%
2020 Iranian Netback
39%
2017 Iranian Netback
35%
29%
Project IRR
(70/30 Debt/Equity)
UOP Advanced MTO
Alternate MTO
2020 Intl. Expected
24%
16%
2020 Iranian Netback
34%
25%
2017 Iranian Netback
30%
UOP Advanced MTO technology provides the best project economics
© 2016 UOP Ltd. A Honeywell Company All rights reserved.

15. UOP Advanced MTO On-Stream Units
Jiangsu Sailboat
(830KMTA C2= & C3=)
Nanjing
(300KMTA C2=& C3=)
Shandong Yangmei
(300KMTA C2=& C3=)
Commercially proven technology

16. Commercialization Status#
Owner
Location
Status 1
Wison (Nanjing) Clean Energy Company, Ltd.
Nanjing, Jiangsu
Onstream
2013 2
Jiutai Energy (Zhungeer) Company, Ltd.
Ordos, Inner Mongolia
SU 2017 3
Shandong Yangmei Hengtong Chemicals Company, Ltd.
Linyi, Shandong
Onstream 2015 4
Jiangsu-Sailboat
Lianyungang, Jiangsu
On Stream Jan 2017 5
Shandong Better Energy
Dongying, Shandong
Awarded 6
Undisclosed
China
SU 2018 7 8
LUXI Chemical Group Co. Ltd.
Liaocheng, Shandong
Design 9
Connell Chemical Industrial Co. Ltd.
Jilin City, Jilin
Add capacities of these units and the P/E ratio
Units ranging from 300kMTA – 830kMTA of total C2= + C3=
© 2016 UOP Ltd. A Honeywell Company All rights reserved.

17. Summary
ON PURPOSE OLEFINS ARE VITAL TO THE IRANIAN MARKET
Market fundamentals support on-purpose olefin projects
Propylene-Propane spread forecast to remain strong
Natural gas and LPG prices advantaged versus naphtha
Margins for MeOH as a final product are unlikely to be sustained
Oleflex process offers the optimum route from C3 to C3=
Lowest overall cost of production & capital cost –
High on-stream availability and proven technology: 24 operating units
Selected for 80% of dehydrogenation units competitively bid since 2011
UOP Advanced MTO produces the highest total ethylene and propylene yield at the lowest cost.
Commercially proven technology: 9 units licensed
3 operating units demonstrate stable operation & exceed guaranteed performance
Provides the best project economics.
On Purpose Olefin Technologies offer financeable investment Opportunities in Iran

18. © 2016 UOP Ltd. A Honeywell Company All rights reserved.