Normal Paraffins: Creating

Value with Flexibility

Eric Wong

© 2008 KBR, Inc. All Rights Reserved.

Traditional Processing Route for LAB

Crude Oil Kerosene To Jet Fuel

n-Paraffins

Linear olefins + H2

LAB

© 2008 KBR, Inc. All Rights Reserved.

1
Current Situation

♦ Sourcing crude with high paraffins content

♦ Oil prices → more challenging crudes
ƒ Heavier
ƒ High sulfur
ƒ High nitrogen
♦ Refiners: emphasis on flexibility
♦ India’s LAB Demand Growth is higher than the
Overall World Demand Growth
ƒ More nParaffins required than current domestic
supply

© 2008 KBR, Inc. All Rights Reserved.

Sources of Kerosene for n-Paraffins Recovery

S N C10 to C14
ppmwt ppmwt n-Paraffins wt%
Mid East SR Kero D86 10 / 90 % 174 / 217 oC 8 <1 23+
Mid East SR Kero D86 10 / 90 % 177 / 230 oC 2 <1 21
Mid East SR Kero D86 10 / 90 % 175 / 227 oC 1 <1 19
Mid East SR Kero D86 10 / 90 % 168 / 226 oC 1100 2 20
SE Asian SR Kero D86 10 / 90 % 174 / 241 oC 3000 25 25
SE Asian SR Kero D86 10 / 90 % 188 / 227 oC 128 <1 25
C. American SR Kero TBP 174 - 235 oC Cut 580 9 24+

UNDERTAPPED FEED SOURCE

Typical Coker Kero 20000 560 11
Typical Hydrotreated Coker Kero 180 65 27

♦ Sourcing of Kersoene suitable for n-Paraffins Recovery is a Challenge due to S & N impurities
♦ Alternate, Lower-Cost Source of Kerosene could be considered

© 2008 KBR, Inc. All Rights Reserved.

2
ExxonMobil n-Paraffins Process History

Purification
Technology
EMC develops Recovery Commercialized
(ENSORB) Process Baytown, TX
y
olog
1958 Te chn 1989
n
atio
Pu rific
s
elop ieve
Dev 2000
EM C
ve ry S
o
Rec
1965 e nts in EMC/KBR
m
rove Licensing Alliance
Imp
Start-up of Baytown
nPar Plant (135 kta)
2008

Baytown nPar
Capacity 400 kta

© 2008 KBR, Inc. All Rights Reserved.

Conventional n-Pariffins Process

Light
Hydrogen
Cut
To
Refinery

Kerosene
Feed
LAB Quality
n-Paraffins

Heavy Recovery
Cut

Kerosene Normal
Feed Hydrotreating Paraffins
Fractionation

© 2008 KBR, Inc. All Rights Reserved.

3
No or Minimal Pretreatment Required

© 2008 KBR, Inc. All Rights Reserved.

Unique Advantages of EMC’s Technology

♦ High Tolerances of Kerosene Feed Impurities
ƒ Kerosene feed up to 400 ppmwt Sulfur & 70 ppmwt nitrogen
ƒ High pressure multiple stages hydrotreating NOT required
• Mild Kerosene hydrofiner conditions
ƒ Significant SAVINGS in capital investment
ƒ Tolerant of kerosene hydrotreating operation upsets
♦ Sharp Pre-Fractionation NOT Required
ƒ Final product fractionated to specifications
ƒ Significant reduction in energy consumption
♦ Opportunity to utilize alternate lower cost feedstocks
ƒ Reduced investment costs
• Higher paraffins content, smaller equipment
ƒ Lower energy costs
ƒ Lower Overall Cost of Production

© 2008 KBR, Inc. All Rights Reserved.

4
Product Quality for the Most Stringent Markets

LAB Grade High Quality

n-Paraffins n-Paraffins

Normal Paraffins 99.0 wt% 99.5 wt%

Aromatics 5000 ppmwt 50 ppmwt

Sulfur < 5 ppmwt < 0.1 ppmwt

Bromine Index < 10 <5

With Recovery
Recovery +
Process Only Purification
© 2008 KBR, Inc. All Rights Reserved.

Flexible Kerosene Feedstock Requirements

ExxonMobil Chemical Conventional

Total Sulfur 400 ppmwt 1 ppmwt

Total Nitrogen 70 ppmwt < 1 ppmwt

Total Water 200 ppmwt 5 ppmwt

Bromine Index 220 < 10

© 2008 KBR, Inc. All Rights Reserved.

5
 n-Paraffins Recovery Process (ENSORB)
AMMONIA
♦ Simple Operation
ƒ Mechanically complex
valves NOT required
MOLECULAR
SIEVE BEDS
♦ Simple Reactor Design
TO ƒ Sieves are easily
REFINERY
removed
ADSORPTION DESORPTION ƒ Special reactor internals
NOT required
♦ Ammonia Desorbent
KEROSENE ƒ Low energy cost for
separation from n-
Paraffins
ƒ Inhibits coking on sieves

RECOVERY PROCESS

© 2008 KBR, Inc. All Rights Reserved.

n-Paraffins Recovery Process (ENSORB)

AMMONIA
♦ Vapor Phase Adsorption /
Desorption Process
ƒ Typical cycle time is 5 to 10
MOLECULAR minutes
SIEVE BEDS

♦ Robust, Sulfur & Nitrogen

TO
REFINERY
Tolerant Process
ƒ Proprietary low-binder
ADSORPTION DESORPTION molecular sieves
ƒ Ideal process for refinery
situations
ƒ Proven with feed up to 400
KEROSENE ppmwt S & 80 ppmwt N
ƒ Long sieve life: 15 - 20
Years (Regenerated Ex-Situ
4 - 5 yrs)

RECOVERY PROCESS

© 2008 KBR, Inc. All Rights Reserved.

Slide 9 6
 ExxonMobil Baytown n-Paraffins Process
AMMONIA

DESORBENT

ADSORPTION DESORPTION
MOLECULAR
SIEVE BEDS

TO
REFINERY
TO
REFINERY
ADSORPTION DESORPTION
MOLECULAR
SIEVE BEDS

HYDRO-
KEROSENE POLISHING

HYDROGEN

HIGH QUALITY
N-PARAFFINS
LAB QUALITY
N-PARAFFINS

RECOVERY PROCESS PURIFICATION PROCESS

© 2008 KBR, Inc. All Rights Reserved.

Slide 9

Summary of Technology Advantages

♦ High Tolerances of Kerosene Feed Impurities

ƒ Significant SAVINGS in capital investment
ƒ Tolerant of kerosene hydrotreating operation upsets
♦ Sharp Pre-Fractionation NOT Required
ƒ Significant reduction in energy consumption
♦ Opportunity to utilize alternate lower cost
feedstocks
ƒ Lower Overall Cost of Production

© 2008 KBR, Inc. All Rights Reserved.

Slide 8 7
 Licensee Technology Support

♦ ExxonMobil Chemical
ƒ Robust Process
ƒ Long Operating History
ƒ Operation &
Maintenance Training
♦ KBR
ƒ Feasibility Studies
ƒ Technology Transfer
ƒ Full EPC Capabilities

© 2008 KBR, Inc. All Rights Reserved.

Slide 14

Thank you very much…

Questions?

© 2008 KBR, Inc. All Rights Reserved.