Achieving Best-in-Class Performance for

Light Olefins Technology

CB&I
Martin F. Bentham

Presented at
5th Indian Oil Petrochemical Conclave, 4th February 2016

A World of Solutions
 Safe Harbor Statement

This presentation contains forward-looking statements regarding CB&I and represents our
expectations and beliefs concerning future events. These forward-looking statements are
intended to be covered by the safe harbor for forward-looking statements provided by
the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties. When considering any statements that are
predictive in nature, depend upon or refer to future events or conditions, or use or
contain words, terms, phrases, or expressions such as “achieve”, “forecast”, “plan”,
“propose”, “strategy”, “envision”, “hope”, “will”, “continue”, “potential”, “expect”,
“believe”, “anticipate”, “project”, “estimate”, “predict”, “intend”, “should”, “could”, “may”,
“might”, or similar forward-looking statements, we refer you to the cautionary
statements concerning risk factors and “Forward-Looking Statements” described under
“Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for
the year ended December 31, 2014, and any updates to those risk factors or “Forward-
Looking Statements” included in our subsequent Quarterly Reports on Form 10-Q filed
with the SEC, which cautionary statements are incorporated herein by reference.

A World of Solutions 2
 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Safety and

Environmental
Performance
 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Safety and

Environmental
Performance
 Process Performance - High Selectivity Furnace

 The SRT VII and quick quench Transfer Line Exchanger

 Maximum selectivity
 Maintains long run length and high operability
 2% to 6% reduction in feedstock consumption

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 Process Performance – OCT Process

+  C4/C5 Metathesis Chemistry

converts lower value butene
and pentene to propylene
 Applying the OCT Process
Butene Ethylene Propylene
increases ethylene and
propylene yield by up to 2.5
times over recycle cracking
while reducing energy
consumption

Pentene Ethylene Propylene

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 Specific Energy, MMkcal/kg C2- Process Performance – Gas Turbine Integration

6,000
5,000  Uses gas turbine exhaust as a source
4,000 of furnace combustion air
3,000 5,400 4,300  Gas turbine cracking heater
integration lowers energy
2,000
consumption by up to 20%
1,000
0
Ambient Air Gas Turbine
Integration

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 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Safety and

Environmental
Performance

A World of Solutions 8
 Lower Investment with Compressor Reconfiguration

Low Pressure Chilling Train

 Discharge pressure reduced

by 50%

Eliminates 15 pieces of equipment

and one casing of the CG
Compressor

Lower operating pressures

inherently increases plant safety

In successful operation since

2006

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 Lower Investment with Compressor Reconfiguration

Binary and Tertiary Refrigeration

40ºC

In operation C3-R
or under design
C3-Rin plants producing over 12
million tons per year of ethylene
C1/C2-/C3-R
from a single
-40ºC machine
C2-R
-101ºC C1/C2-R
-135ºC C1R/Exp
Conventional Binary Tertiary
System System System

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 Lower Investment with Compressor Reconfiguration

Low Pressure Chill Train and Tertiary Refrigeration

 Lower CAPEX
 7% reduction in ISBL investment
 37 equipment pieces eliminated
 40% reduction in compressor/turbine casing

Conventional Latest
Technology
CG compressor & driver 4 3
C3- refrig compressor & driver 2 ―
C2- refrig compressor & driver 2 ―
C1 refrig or expander 2 to8 ―
Tertiary refrig compressor & driver ― 3
Total 10 to 16 6

Improved reliability and lower

maintenance cost

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 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale
Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Safety and

Environmental
Performance

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 By-product Flexibility – Changing Feedstock Slate

 Lower cost ethane feed is replacing naphtha as source of feed to

steam crackers
 Worldwide shale gas reserves will increase this shift
 This will reduce the supply of C3 and heavier products opening up
the need for greater by-product flexibility in both new and existing
plants

Others Others
Gas Oil 2%
Gas Oil 2% Gas Oil Other 3%
5% 3% 3%

Ethane Ethane Ethane

27% 33% 35%
Naphtha Naphtha
Naphtha
55% Propane 50%
45%
7%
Propane
Butane 8%
Butane Propane
4% 2015
2005 2010 4% Butane 9%
5%

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 By-product Flexibility – Propylene Shortfall

 The 10% shift from naphtha to ethane feed reduces available

propylene production by 7.5 million MTA
 Propylene demand is expected to increase by 25 million MTA by
2019
 New range of feeds for Olefins Conversion Technology

Ethylene to propylene

Refinery, MTO and steam cracker C5s

Butene Ethylene Propylene

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 By-product Flexibility – Ethylene to Propylene

 Ethylene Dimerization plus OCT can offset propylene shortfall economically

since propylene is of higher value than ethylene
 Propylene can be produced by ethane crackers using this ethane to
propylene route
 Ethane and naphtha crackers can produce any P/E ratio all the way to 100%
propylene

North America – Propylene/Ethylene Price Ratio

Price data USGC Spot by ICIS

Average value 1.21

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 By-product Flexibility – C4/C5 Metathesis

 C4 raffinate and C5s are typically recycle cracked

Constant Propylene
 OCT/cracker integration using C4 raffinate will: 200
+25%
180

Benzene, kta

Cracker & OCT

Increase propylene 160

Cracker
140
Increase benzene and decrease pygas
at constant propylene
120
Increased Propylene
900 800
+25%
800 700
Propylene, kta

Pygas, kta
Cracker & OCT

700 600
-38%

Cracker

Cracker
Cracker

& OCT
600 500

500 400

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 By-product Flexibility – C4/C5 Metathesis

 Steam cracker C5s can feed the OCT to produce additional

propylene
Propylene Production Lower Energy Consumption for C5s
1000
5000
+35%
900

Kcal/kg C2-+C3-
+25%
Propylene ,kta

800
Cracker + C4 OCT

3000

Cracker + C4 / C5
700
-55%

Cracker
Cracker

600

OCT
500 1000

 Ethylene + propylene yield increases by 2.5 times when compared

to recycle cracking the C5s
 Refinery C5s can also be used to supplement C5s from cracker

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 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Safety and

Environmental
Performance

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 Enhanced Safety

 Safety is our culture

 Focus is on safety from design to operation
 Internal and external systems in place to
facilitate safety across the life cycle of plant
 Safety bulletins
 Ongoing training programs
 Extensive data base available to all licensee

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 Environmental Performance – NOx Reduction

 NOx reduction is a key criteria in securing the necessary permits to

expand existing or build new plants
• Delayed combustion
• Flue gas recirculation NOx Reduction
• Reduces NOx from 100ppm
to 30ppm
Selective Catalytic
Improved Burners Reduction

 Allows fireside and process side  Reduces burner NOx by 90%

modeling  NH3 distribution insured by CFD
 Ensures proper burner placement modeling
and configuration  Experience in five locations
 Successful experience with firebox
decoking
Virtual Furnace Using
CFD

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 Environmental Performance – Lower CO2

 Producing propylene via OCT reduces green house gas commissions

 OCT reactions are exothermic
 Only route to propylene that does not require energy input to the reaction step
 Separation costs are low since product recovery is not energy intensive
 No H2 or methane is present
 Separation is between carbon numbers and not between olefin and paraffin
 Gas turbine/heater integration reduces energy consumption by 20% and
reduces NOx by 15%

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 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Safety and

Environmental
Performance

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 Increasing Operating Margin with High Reliability

 Licensee Survey results constantly show high on stream factor & extended
time between turnarounds

Year Total Survey Ethylene On Stream Time Time Between Turnaround Months
Capacity MTA

Average Maximum

2002 21 Million 97.7% 36 96

2007 20 Million 98.0% 42 84

2012 30 Million 98.9% 48 120

Multiple plants have no shutdown during

survey periods
Steadily improving performance due to skilled
operations, strong maintenance, new technology and
continuing technical service
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 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Safety and

Environmental
Performance

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 Economy of Scale

Largest volumetric cracker on CB&I currently designing a 1420 kta naphtha

USGC, a 950 kta liquid cracker cracker – largest volumetric cracker licensed to
awarded to CB&I date, equivalent to a 2150 ethane cracker

First >1000 kta

plant awarded to
CB&I in 1993

Plants designed by CB&I have historically lead the growth

in maximum capacity

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 Economy of Scale

Today’s limit is 2300 kta for ethane feed

and 2000 kta for naphtha feed

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 Achieving Best in Class Performance

Process Performance

Lower cost plant

expansions Low investment cost

Maximum plant size for State-of-the-Art Light

economy of scale Olefins Technology
By-product Flexibility

Highest Reliability

Enhanced Environmental
Performance

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 Lower Cost Expansion

8 million kta of 43 projects Average expansion 44% above

ethylene capacity nameplate with maximum 132%
above nameplate

Ethylene Plant
Expansions

Maximize Profit Across the

Plant Life Cycle

New technology features

reduce investment and
shutdown time while
increasing reliability

Mixed
Refrigeration OCT Integration

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 Lower Cost Expansion – Mixed Refrigeration

40ºC  Expansions using

conventional technology
typically re-rotor or replace
C3-R C3-R all existing refrigeration
compressors
C1/C2-/C3-R  Using binary or tertiary
from a single
machine refrigeration system, adds
-40ºC
only a single new
C2-R
compressor
-101ºC C1/C2-R

-135ºC C1R/Exp

Conventional Binary Tertiary

System System System

Results in lower investment cost

Downtime decreases since new refrigeration system can be
added during plant operation and only tied in at shutdown
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 Lower Plant Investment at Increased Severity

 Integration of ethylene plant and OCT can decrease investment for

the expansion while holding the propylene-ethylene product ratio
constant

Steam cracker without OCT at moderate or low severity

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 Lower Plant Investment at Increased Severity

 Integration of ethylene plant and OCT can decrease investment for

the expansion

Steam cracker at increased severity with OCT

1.07
0.99 1.04 0.99
0.96 0.94
0.84
0.71
0.62
0.49

Lower throughput in ethylene plant lowers

expansion investment enough to more than offset
investment in OCT

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 Achieving Best in Class Performance – Summary

• High yield
• 2300 kta for C2 feed • Low energy consumption
• 2000 kta for liquid feed Process Performance

Lower cost plant

expansions Low investment cost

• Mixed refrigeration
• OCT Integration • Low pressure chilling train
• Mixed refrigeration
• OCT/Cracker integration
Maximum plant size for State-of-the-Art Light
economy of scale Olefins Technology
By-product Flexibility

• C4/C5 OCT
Highest Reliability • C2- Dimerization

• Inherently safer design

Enhanced Safety and • Super-low NOx burner
• 98.9% on stream factor Environmental • SCR
• 4-5 years between turnaround Performance • Energy-neutral propylene
production
• Gas turbine integration
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 Achieving Best in Class Performance – Summary

• High yield
• 2300 kta for C2 feed • Low energy consumption
• 2000 kta for liquid feed Process Performance

Lower cost plant

expansions Low investment cost

• Mixed refrigeration
• OCT Integration • Low pressure chilling train
• Mixed refrigeration
Maximizing • OCT/Cracker integration
Maximum plant size for State-of-the-Art Light
Profitability Across
economy of scale Olefins Technology
Plant Life Cycle
By-product Flexibility

• C4/C5 OCT
Highest Reliability • C2- Dimerization

• Inherently safer design

Enhanced Safety and • Super-low NOx burner
• 98.9% on stream factor Environmental • SCR
• 4-5 years between turnaround Performance • Energy-neutral propylene
production
• Gas turbine integration
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 Copyright 2016, CB&I Inc. All Rights Reserved.
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