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Advanced Equipment Manufacturing Fangzhou Hu UOP LLC, A Honeywell Company US-China Oil & Gas Industry Forum September 16-18, 2015 Chongqing, China A Century of Innovation in the Oil and Gas Industry 2015 UOP LLC. All rights reserved.

What UOP Does UOP creates knowledge through invention and innovation and applies it to the energy industry 800+ R&D employees 3,000+ Active patents 2,500 Engineers and scientists 200 with PhDs 100 Years of Experience Process Technology Catalysts and Adsorbents Equipment Services Refining Petrochemicals Natural Gas Renewables More Than 60 Percent of the World s Gasoline and 90 Percent of Biodegradable Detergents Use UOP Technology 2

Gas Processing & Hydrogen Technology Processing for single-unit to large integrated technology facilities Broad portfolio of technologies Wellhead treating Sulfur & liquids recovery Upgrade of natural gas liquids to olefins, aromatics & more Hydrogen purification from steam reforming Hydrogen recovery from many processes Key Processes Polybed PSA hydrogen purification & recovery Polysep Membranes - hydrogen purification & recovery UOP Separex bulk CO 2 removal UOP Selexol acid gas removal UOP Amine Guard Process acid gas removal UOP Merox mercaptan sulfur removal 3

Process Equipment Fabricated Plants UOP Gas Processing Plants Polybed PSA Systems Separex Membrane Systems Modular Refining Units Sinco SSP Technology Process Equipment Separations & Heat Transfer Key Mechanical Equipment Process Information & Controls Callidus Burners Flares Thermal Oxidizers Selective Catalytic Reduction Units (SCRs) 4

Challenges in Natural Gas Value Chain Extraction Processing Transportation (Pipeline + LNG) Gas Impurities in the Feed High level of H2S, CO2, N2 and sulfur in some major field, e.g. Tarim and Sichuan Basin Remote and difficult onsite condition for unconventional gas Storage Distribution Specific treatment requirement for SNG with additional elements like ammonia, phenol, naphthalene Scattered and small volume treatment on well head Gas Processing Challenges Exist but Can Be Overcome with the Right Packaged Technology Solutions 5

Why Modularize? The advantages of skid-mounting are many: Cost and Schedule More assembly work is done in the shop at a lower hourly rate and not subject to weather Much assembly work can be completed prior to field move in, while waiting on permits and weather Equipment and parts are more readily available at the shop location, closer to supplies Equipment, piping, and instrumentation can be checked out prior to shipment to field Quality and Efficiency Train Sizes up to 10 MCM/D can be easily Modularized 6

What to Modularize? Process Plants Condensate Stabilizer Acid Gas Removal NGL Recovery with Refrigeration Loop(s) Dehydration NGL Fractionation LPG Fractionation Heating Medium Oil System Sulfur Recovery Infrastructure Roads Buildings Power Generation / Power Supply Area Lighting Security Systems Plant water systems Fire water systems Storm water system Storage tanks Pipeline infrastructure M F M F Balance of Plant Inlet Separation Inlet Compression Pipe Racks and associated structures Residue Gas Compression Produced Water Treatment Flare Thermal Oxidizer Heating Medium Oil System Motor Control Center (MCC) Gas Metering Instrument Air System N2 System Fuel Gas Network Cooling Water System Chemical Injection Systems Lube Oil System(s) Plant Control System Fire & Gas Detection Process drains M = Suited for Modular F = Field Fabrication more appropriate * Suitable for Multi-Train Facilities M F 7

How We Modularize LPG Recovery Unit Inlet Filter Skids 8

How We Modularize LPG Recovery Process Skids 9

LPG Recovery Major Offskid Items Turbo Expander/Compressor Rearview Demethanizer Tower Front view Mafi Turbo- Expander/ Compressor 10

UOP Modular Plant Capabilities Modular process technology as skid-mounted, shop-fabricated packages for: Lower cost fabrication versus on-site construction Faster installation Trusted process and mechanical performance High on-stream efficiency Lower risk of safety incidents due to less in field fabrication Ideal candidates for packaged units: Individual units sized for 1.2 10 MCM/D each Remote locations Plants with multiple trains for up to 25 MCM/D UOP Technology Solutions (CO 2 Removal, Dew Pointing and NGL Recovery) Delivered as Pre-engineered Modules 11 11

UOP Natural Gas Modular Products SEGMENT GAS Nat Gas PRETREATMENT Conditioning NGL NGL RECOVERY Recovery NGL NGL SEPARATION Upgrading Dehydration Mol Sieve Adsorption 9 Rich Gas Conditioner Fractionation Deethanizer / Depropanizer / Debutanizer OFFERING Glycol (TEG) Absorption Acid Gas Treatment Amine Units (100-1000 gpm 1 ) Membrane Units (1+ BCFD) Sulfur Recovery Modular Claus (10-100+ LTPD) Sulfur Scavengers Hg Removal Units GAS NGL CONTENT (GPM 2 ) 6 4 3 2 Mechanical Refrigeration Cryogenic Turboexpander Deethanizer Depropanizer Debutanizer Butane Splitter Y-GRADE OR RAW MIX Purity Ethane Propane Mixed Butanes N-Butanes I-Butanes 1 gpm = gallons of amine per minute 2 GPM = gallons of NGL per thousand SCF of natural gas Natural Gasoline Complete Modular Equipment Solutions: Pre-engineered or Custom 12

UOP Global Equipment Experience Technology # of Units PSA Units >1000 Gas Processing/NGL Units 230 Membrane Systems 200 CCR Regenerator Sections 65 A Global Modular Leader with Experience dating back 50 years >1000 55 Merox Units 55 Recovery Plus Units 37 Isomerization Units 17 Naphtha Block Units 3 3 250 65 37 17 200 Advanced Technology, Faster, Better Total Installed Costs 13

Pre-Engineered Cryo Plant Inlet Gas MOLSIV TM Cryo Plant Residue Gas Y-grade 2 to 4 GPM C2+ Unsaturated Feed Low CO 2 in Feed Pre-Engineered Cryo Plants 1.2 6+ MCM/D 14

Pre-Engineered Cryo + Supplemental Refrigeration (SR) Refrig Loop Inlet Gas MOLSIV TM Cryo Plant Residue Gas (saturated feed) Y-grade 6 GPM C2+ Unsaturated Feed Low CO 2 in Feed Supplemental Refrigeration Units 1000 6000 HP 15

Cryo + SR + Pre-Engineered Amine Inlet Gas Refrig Loop Amine Treater MOLSIV TM Cryo Plant Residue Gas (saturated feed) Y-grade Water Unsaturated Feed High CO 2 in Feed Pre-Engineered Amine Units 100 1000+ gpm 16

Cryo + SR + Amine + Fractionation Inlet Gas Refrig Loop Amine Treater MOLSIV TM (saturated feed) Cryo Plant Residue Gas HMO System Depropanizer Propane Debutanizer Butane Gasoline 17

Type of Membranes and Membrane Assembly Membrane Type Type of Membrane Assembly Asymmetric membrane: Same polymer materials for selective layer (top) and supporting layer Spiral-Wound Membrane Element Composite membrane: Different polymer materials for selective layer (top) and supporting layer Hollow Fiber Membrane Element 18

UOP Separex Membrane System From Membrane to Modular Equipment 19

Fundamentals of Membrane Process Simple One-Stage Membrane Process Two-Stage Membrane Process Hydrocarbon recovery from membrane separation can be improved from multistage membrane processes 20

UOP Separex Membrane UOP Separex TM Membrane Technology 21

What is the UOP SeparALL Process? Next generation solution of UOP Selexol TM process Selective removal of H 2 S, COS, & CO 2 via absorption/ regeneration process Offered as licensed technology Uses a next generation physical solvent (SELEXOL MAX Solvent) from DOW Chemicals Uses a typical solvent-extraction flow-scheme Loading directly proportional to partial pressure Product Quality Can be essentially sulfur free Project specific CO2 capture and quality Project specific acid gas H2S concentration Treated Gas Acid Gas Physical vs Chemical Typical Gasification Application Feed Gas Solvent Loading Physical Solvent Chemical Solvent Partial Pressure High Pressure is advantageous 22

Contact Michael Hu 430 Li Bing Road, Zhang Jiang Hi-Tech Park, Pudong New Area, Shanghai 201203 Tel: +86-21-28945454 Fax: +86-21-58557390 Mobile: +86-15002176491 fangzhou.hu@honeywell.com 23