Shell Global Solutions

EO/EG Process Licensing Shell OMEGA Process

Cologne, 5 February 2009

Agenda
Introduction Technology Development Shell EO/EG Process Technologies Status of Shell OMEGA Process

The Royal Dutch Shell Group

Royal Dutch Shell

Exploration & Production

Gas & Power

Oil Products

Chemicals

Oil Sands

Shell Global Solutions

Shell Chemicals Product Portfolio

EO/Glycols is a key element of the Shell Chemicals portfolio
Solvents Lower Olefins EO / EG PDO / Corterra HODer

Additives Infineum: 50/50 JV with EXXON

Base Chemicals

Catalysts CRI: wholly owned subsidiary (resides in Shell Global Solutions)

Phenol Aromatics SM / PO

Intermediates

Specialities

The Royal Dutch Shell Group

Royal Dutch Shell

Exploration & Production

Gas & Power

Oil Products

Chemicals

Oil Sands

Shell Global Solutions

Who Is Shell Global Solutions?

We are the Shell Groups resource for technologies spanning:
Upstream Downstream Catalysts

Providing:
New Technologies Project management

Busines s Model

Research & development expertise

Operational consultancy, advice & support

Over 5200 people from diverse cultures and nationalities Advising all Shell businesses, selected JVs & non-Shell customers Manufacturing and supplying catalysts for refining and chemicals (via CRI/Criterion)

Shell EO/EG Technology

EO/EG Process Licensor

37% World Capacity

EO/EG Production
7% Global Production

EO Catalyst Sales
56% Market Share

Shell EO/EG Licensing History Through 2008

120

100

115

Number of Plants

80

60

74

40

20

43

0 Shell Licenses Since 1958 Shell Licenses Currently Operating Total Operating Plants

Agenda
Introduction Technology Development Shell EO/EG Process Technologies Status of Shell OMEGA Process

Ethylene Oxide Derivatives (EOD)

Monoethylene Glycol (Polyester fibre, PET, engine coolants)

Di/Tri-ethylene Glycol (Gas scrubbing, Polyester resin, brake fluids) Polyethylene Glycols Ethoxylates Ethanolamines Glycol Ethers Polyols Polyalkylene Glycols Others (Cosmetics, pharmaceuticals, brake fluids) (Detergents, oilfield chemicals) (Surfactants, gas scrubbing, cleaning agents, paints) (Brake fluids, solvent applications: paints, cleaning agents, fuel antiicing agents) (Polyurethane foams) (Synthetic lubricants, hydraulic fluids) (inc. Hydroxy ethyl cellulose, Choline, Ethylene Carbonate)

Ethylene CH2 = CH2

O2

Ethylene Oxide O CH2 CH2

Global MEG Demand by End-Use

30000 Polyester Fibre 25000 PET Resin 20000 Poly Film/Other Coolants 15000 Industrial

Kt/an

10000

5000

0 2002 2004 2010 2000 2006 1998 2008 2012 1990 1992 1994 1996 2014

Source: PCI

EO/EG Technology Development Direction

Maximize MEG Manufacturing Yield
Ethylene Ethylene Oxide 2 handles: MEG DEG TEG

EO catalyst selectivity & selectivity

MEG reaction

Shell EO/EG Technology: Joint Forces

EO Catalysts Process Technology

EO Catalyst Selectivity
A History of Innovation
90

Average Selectivity over Life (% )

85

80

75

70

"High Activity" Family "High Selectivity" Family

65

"Hybrid" Family

60 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012

Improving the Process MEG

Why Selective MEG Technology?
Average growth rate of MEG consumption will be 6-7% per year and DEG less than 6%

Therefore Shell is actively involved in development of a more selective MEG process for own and licensed plants
Higher MEG capacity with same EO plant Capital and operating cost advantages

Unbalance in future global MEG/DEG market will put pressure on DEG prices

MEG Reaction Selectivity

100 95 90 85 0 2 4 6 8 10 12

Selectivity (wt%)

Shell OMEGA IER based Shell MASTER

H2O/EO ratio (wt/wt)

MEG Chemistry
HOH HO OH

MEG

EO

MEG

HO

OH

DEG
Catalyst

O
OMEGA

O=C=O

O
HOH

Ethylene carbonate O EC

HO

OH

MEG

+ O=C=O

MASTER

Process Concept Formation

A happy marriage
Mitsubishi Chemical Catalytic MEG Process

R&D 1995 2001 Pilot plant 1 kta MEG Demo unit 15 kta MEG Mitsubishi MEG catalyst

Shell EO Process

Existing Shell technology CRI EO catalyst Applied in 74 plant designs since 1958

Shell OMEGA Process

Shell MASTER Process

Steam CO2 EO Recovery O2 C2H4 CO2 Removal Light Ends Removal

EO Reaction

MEG Glycol Reaction

DEG

TEG

Process condensate Glycol Concentration Glycol Purification

Heavy glycols

Sections Changed in Shell OMEGA

Steam CO2 EO Recovery O2 C2H4 CO2 Removal Light Ends Removal

EO Reaction

MEG Glycol Reaction

DEG

TEG

Process condensate Glycol Concentration Glycol Purification

Heavy glycols

Shell OMEGA Process

Steam CO2 EO Recovery O2 C2H4 CO2 Removal Light Ends Removal

EO Reaction

MEG

Glycol Reaction Catalyst recycle Glycol Purification Heavy glycols

Shell OMEGA Chemistry

C2H4 + 1/2 O2 EO + CO2 EC + H2O
Make-up CO 2 CO recycle 2

EO EC

& CO2 byproduct from EO reaction

EC: Ethylene Carbonate

CO2 + MEG
O

O O

C2

C1

H1

H2

Catalyst Recycle

Aqueous EO

Shell OMEGA Process: Scale-up

Process successfully scaled from lab to pilot plant to commercial scale 40 kt of on-spec MEG produced in commercial-scale unit MEG successfully tested in 3rd party PET plants; full compatibility with MEG from conventional processes

Shell OMEGA Process: Advantages

Lower capital investment cost of 10% (at equal MEG capacity)

No DEG/TEG purification, storage & handling required

20% lower steam consumption

30% less wastewater produced

MEG Process Performance Comparison

Selectivity, %
100

Product Yield

2.00

Competition Shell
95

Process Process

1.90

Shell

90

1.80

85

1.70

80

1.60

75

1.50

to EO (3-Yr Average)

to MEG

Yield (t MEG/t C2=)

Agenda
Introduction Technology Development Shell EO/EG Process Technologies Status of Shell OMEGA Process

Status of Shell OMEGA Technology

Five Shell OMEGA licenses awarded to date First Shell OMEGA plant successfully started-up in May, 2008 Second Shell OMEGA plant start-up Feb 2009 Will be employed by Shell in their new Singapore project startup 2009/2010

First OMEGA Plant in Operation

I-Chem Engineering Excellence Award!

Shell EO/EG Technologies

Shell Thermal EO/EG Process: Robust, Reliable, Efficient and Proven Technology Unsurpassed High Selectivity EO Catalyst Competitive Capital Investment Lowest Total Manufacturing Costs Provision of Ongoing Technical Services Shell EO/MCC Catalytic MEG Process: Best of Both Worlds: Unsurpassed High Selectivity EO Catalyst and MEG Yield Superior to Thermal Process Resulting in Highest Ethylene Efficiency

Shell is the Exclusive Licensor of both Processes!

Thank you for your attention!

Disclaimer statement
Shell Global Solutions is a network of independent technology companies in the Shell Group. In this document, the expressions Shell or Shell Global Solutions are sometimes used for convenience where reference is made to these companies in general, or where no useful purpose is served by identifying a particular company. The information contained in this material is intended to be general in nature and must not be relied on as specific advice in connection with any decisions you may make. Shell and Shell Global Solutions are not liable for any action you may take as a result of you relying on such material or for any loss or damage suffered by you as a result of you taking this action. Furthermore, these materials do not in any way constitute an offer to provide specific services. Some services may not be available in certain countries or political subdivisions thereof. Copyright 2008 Shell Global Solutions International BV. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical including by photocopy, recording or information storage and retrieval system, without permission in writing from Shell Global Solutions International BV.