Dr. Girish Chitnis Ms. Marie Wright Mr. Glen Phillips Economically Attractive and Environmentally Friendly FLEXICOKING™ Resid Upgrading Technology Dr. Girish Chitnis Ms. Marie Wright Mr. Glen Phillips International Conference on “Refining Challenges - Way Forward' 16-17 April, 2012 New Delhi

Coking Process Coking is the Most Widely Used Resid Conversion Approach Worldwide! Delayed Coking – Furnace & Drum, Batch Process, Coke Pits FLEXICOKING™ – Fluidized Bed, Continuous, Coke Silos and Closed System – Environmental considerations important for both Coke by-product Yield Typically 1/3 of Feed Similar amount for other resid conversion processes Product: (a) Yield (wt%) Fuel Gas & LPG 10 C5+ Liquids 55 Coke 35 Total 100 Delayed Coking (several providers) FLEXICOKINGTM (ExxonMobil) Heavy Crudes Resids FLEXICOKING Eliminates the Coke!

FLEXICOKING Technology: Simple Air + Steam Integrated Gasifier Design Products to Fractionator Feed FLEXIGAS to Coke‑Fines, Water & Sour Component Removal Heater Hot Coke FLEXIGAS Gasifier Reactor Air from Blower Cold Coke Steam Purge coke

FLEXICOKING Schematic Steam

FLEXICOKING Products Same Liquid Yields as Delayed Coking Coke Gasified in a Simple Integrated Steam + Air Gasifier Produces Clean CO/H2 Fuel Gas (FLEXIGAS) Product Instead of Coke FLEXSORB® Hindered Amine Reduces H2S to Low Level Low SOX Nitrogen Diluent Reduces BTU Content, But Low NOX FLEXIGAS Burned in Refinery, Third Party Furnaces / Boilers or for Power Steam Research and Engineering 4

FLEXIGAS Gives Positive Margin Over Delayed Coke as Fuel Shaded Region: FLEXICOKING becomes More Attractive Delayed Coking Becomes Less Attractive Delayed Coke Price 3 4 5 6 7 150.0 90.0 60.0 30.0 0.0 -30.0 120.0 FLEXIGAS at Parity with NG Price, $/mm Btu $20 / tonne FLEXIGAS Margin over Delayed Coke M$/Year $100 / tonne Achieve Higher Margins over Delayed Coking

FLEXICOKING Gasification & POX Comparison Partial Oxidation Product Fuel Gas Syngas / H2 / Fuel Gas Components CO/ H2 / N2 CO / H2 Heat Content, kJ/kg 5250 9375 Process Gases Steam / Air Oxygen (a) Temperature, °C 870 - 980 1090 - 1370 Pressure, barg 2 – 4 20 – 70 Slag Avoid formation Disposal is an Issue Materials Refractory Lined Carbon Steel Simple Inlet Distributor Brick Lined Complex Alloy Nozzles Cycle Length, months 36-48 <6 (b) Capex $ $$$ a. Typically Requires air separation plant b. Per Gasifier. Overall reliability improves with spares

FLEXIGAS as a REFINERY FUEL

FLEXIGAS Use in Commercial FLEXICOKING Units Significant Fraction of FLEXIGAS Consumed within Refineries Excess FLEXIGAS Used for Fuel in Nearby Power Plants Rotterdam Exports Higher BTU Content Fuel Gas SITE FLEXIGAS (MW) FLEXIGAS Used in Refinery (%) Off Site Consumers 1 PDVSA, Venezuela 600 28 Large boiler / power plant consumes majority of Flexigas 2 ExxonMobil Baytown 430 100 Flexigas used on site Very large/ complex refinery with large number of on site fuel users 3 ExxonMobil Rotterdam 450 82 Burn majority of FLEXIGAS onsite Sell ~270 MW high BTU fuel gas offsite 4 Shell California ~300 ~100 Primarily use FLEXIGAS in refinery 5 Showa Shell Japan 300 50 Large nearby power plant consumes ~50% of FLEXIGAS in boilers

FLEXICOKING Low Joule Gas Firing RHJG Burner Dual Fuel Burner Assembly LJG Burner Pilot Burner (HNJG)

Rotterdam Refinery Fuel Gas & Energy Grid Details

FLEXICOKING Rotterdam Refinery Environmental Dutch Refineries XOM Refinery Emission SO2 kt/jr 30,3 3,0 NOx kt/jr 9,9 1,0 Dust kt/jr 2,7 0,09 Capacity mt/jr 61 10 Low Sulphur Products kt/jr 35-45

FLEXIGAS for Power Generation Using Steam Cycle

TOA Oil FLEXICOKING Unit Started up in 1976 (21 kb/SD) Current Capacity: 27 kb/SD Fluid Solids Vessels: Gasifier on Left Heater in Center Reactor on Right Earthquake-Proof Structure FLEXIGAS Users Refinery Furnaces 50% Power Plant Boilers 50%

TOA Power Generation using FLEXIGAS Operation Began in 2003 in Cooperation with Electric Power Company LCG is Supplied as Fuel for Steam-Generating Boiler Steam is Used for Power Generation and also by Refineries Stable Supply of Electricity and Steam Power Plant Demand Outpaces FLEXIGAS Production TOA OIL Keihin Refinery Genex (Power-Generating Plant) Vacuum Residue Fraction Products Steam Boiler 37 % Low Calorie Gas (LCG) 21 % Frac. L/E High Calorie Gas Waste Heat Boiler (C1, C2) 33 % FCC HCG Gas LPG (C3, C4) Gas Turbine 9 % Refinery furnaces 100 % G R H Gas Turbine: ~80 MW Steam Turbine: ~190 MW Total ~ 270 MW Air & Steam

FLEXIGAS for Power Generation Using Combined Cycle

FLEXICOKING and GTCC: A Case Study FLEXICOKING Unit Material reproduced with permission from Mitsubishi Heavy Industries (MHI). All rights reserved

MHI’s Equipment Layout Approx. 200 m Approx. 60 m Gas Cooler Gas Compressor BFG Gas Mixer CO G E.P. Steam Turbine Generator Gas Turbine HRSG Stack Inlet Air Filter Transformer Material reproduced with permission from Mitsubishi Heavy Industries (MHI). All rights reserved 17

Capex for Power Generation Using Steam or Combined Cycle

Relative Total Investment Cost (TIC) Add a Simple Gasifier for Only 30% More Capex than Delayed Coker

Simple Payout versus Electricity Price Shorter Payout with FLEXICOKING and Power Generation

FLEXIGAS for H2, N2, CO2, Ammonia and Urea Production

Flexibility of H2, CO2, NH3, Urea and Power Production From FLEXIGAS Excess FLEXIGAS used as refinery fuel Power Generation Combined Cycle Rankine Cycle MW-hr PSA Offgas Purge Gas Heater Overhead and FLEXSORB® FLEXIGAS Compression Hydrogen Shift CO2 Removal Hydrogen Production Hydrogen Ammonia Production Ammonia Urea Production Urea CO2

FLEXICOKING: Operating Commercially for 35+ Years TOA Oil - First Commercial Unit S/U in 1976, Expanded in 2002 Currently 5 Units Operating With a Total Capacity of ~200 kB/D Hellenic Petroleum Unit under construction PetroPeru Unit under design Rosneft is latest unit and also under design COMPANY LOCATION FEED RATE, kB/D TOA Oil Japan 27 PDVSA Venezuela 65 Shell California 22 ExxonMobil Netherlands 42 Texas Hellenic Greece 21 PetroPeru Peru Rosneft Russia 50 23

SUMMARY FLEXICOKING Technology is Well Proven Eliminates Coke Production Coke Upgraded into a Clean FLEXIGAS by Gasification Gasification using Steam +Air is Cheaper, More Reliable and Simpler than POx FLEXIGAS is Suitable as a Cheap Refinery Fuel No Limitations in Using FLEXIGAS for Power Generation Power generation Payout is More Attractive than Delayed Coking Route Power Generation Schemes are Commercially Proven FLEXIGAS is suitable for ammonia/urea production or for production of H2, N2 and CO2 24

Coking and Integrated Steam / Air Gasification FLEXICOKING Coking and Integrated Steam / Air Gasification Questions Sunset at TOA Oil, Keihin Refinery ( Mizue )

FLEXIGAS + GTCC Gives Higher Cash Flow 120+M$ Higher Annual Cash Flow than Delayed Coking + IGCC Power Generation

FLEXICOKING Advantages Versus Other Options Milder Conditions and Significantly Lower Capital Cost than POx No issues such as Disposal of Slag, UCO No Air Separation Unit Needed Fluid Bed Coke Gasification FLEXICOKING CO / H2 / N2 Fuel Gas Coking Conversion Step Gasification Step FULLY INTEGRATED Steam/Air Competing Options Delayed Coking Ebullating Bed SDA Conversion Step Partial Oxidation Gasification Gasification Step CO / H2 SynGas Air Separation Oxygen SEPARATE PROCESS