C2PT Catalyst Process Technology GBH ENTERPRISES, LTD C2PT Catalyst Process Technology Petrochemicals Principal Markets

Ammonia, Methanol Hydrogen Petrochemicals & Related Catalyst Markets by Volume Ammonia, Methanol Hydrogen Hydrogenation Oxidation GBH ENTERPRISES, LTD

Ammonia, Methanol Hydrogen Petrochemicals & Related Catalyst Markets by $USD Dollar Value Ammonia, Methanol Hydrogen Oxidation Hydrogenation Organic Synthesis Aromatics Dehydrogenation GBH ENTERPRISES, LTD

Petrochemicals: Benzene & Major Derivatives Cyclohexane Adipic Acid Caprolactam Cumene Phenol Styrene Polystyrene EPS ABS / SAN / Other GBH ENTERPRISES, LTD

Petrochemicals: BTX Major Derivatives Benzene Styrene Cyclohexane Adipic Acid Caprolactam Phenol Aniline Toluene TDI Caprolactum Dealkylation Xylenes Para-xylene Ortho-xylenes Phthalic Anhydride GBH ENTERPRISES, LTD

Petrochemicals: Global Markets Principal Feedstock's & Largest Consumers Benzene Ethylbenzene (55%) Cumene (17%) Cyclohexane (14%) Remaining Alkylbenzene 3% Nitrobenzene 6% Others 5% Mixed Xylenes Paraxylene (70%) Ortho Xylene (12%) Solvents (14%) Basis: World Petrochemical Feedstock Analysis – CMAI (2005) GBH ENTERPRISES, LTD

Petrochemicals: Global Markets Benzene: Regional Demand A regional breakdown of major benzene demand - North America’s and Europe’s once dominate positions are being overtaken by Asia’s growth. North America and Europe had maintained their considerable market share by virtue of higher production of cumene and cyclohexane versus that of Asia, which is dominant in styrene. Together the three regions dominate global demand as they account for over 80 percent of the total derivative production for the world. . Benzene sourced from pyrolysis gasoline plays an important role in global supply. Although ethylene demand growth is forecast to exceed that of benzene, much of the growth will be based on ethane. Consequently, pygas supply is forecast to fall to 36 percent by 2020. Paraxylene growth will increase the incentive to invest in reformer and toluene based conversion capacity. Together the three regions dominate global demand as they account for over 80 percent of the total derivative production for the world. Reformate based production accounted for 37 percent of total supply in 2004, but it is forecast to increase to 43 percent by 2020. This is significant because reformate supply is the only process that consumes refined feedstocks. HDA operations contributed 6 percent in 2004, which is a record low level for this source. HDA supply is expected to decline through 2020, but not disappear as the HDA process plays an important role in balancing benzene supply and consuming toluene/xylenes pygas stock. GBH ENTERPRISES, LTD

Petrochemicals: Global Markets Principal Feedstock: Mixed Xylenes Mixed Xylenes Paraxylene (70%) Ortho Xylene (12%) Solvents (14%) Demand: 34.3 Million MT Paraxylene: Forecast Growth 80% by 2020 Strong demand for paraxylene is a function of the world’s growing appetite for polyester for both packaging (water bottles) and textile applications. Mixed xylenes demand is centered in Northeast Asia, accounting for 45 percent of total world demand. Both China and South Korea are significant net importers of mixed xylenes and are expected to continue this trend through 2020. Imported mixed xylenes are converted to paraxylene and ultimately polyester in this region, for growing domestic demand and for re-export as textiles in apparel. To meet the strong anticipated demand growth, mixed xylenes capacity will approximately double by 2020. Nearly 40 percent of the required capacity expansions will take place in Northeast Asia as capacity is added to meet strong demand growth forecast in this region. More than 5 million tons of capacity will be added in the Middle East primarily as export-oriented capacity to serve rapidly growing markets in Asia. Another 4.5 million tons is expected to be added in North America to take advantage of the low cost structure in the region due to the large refining base. The most interesting supply trend during the last cycle was the use of toluene disproportionation (TDP) to increase paraxylene yield per ton of naphtha feed and ExxonMobil’s selective toluene disproportionation (STDP) and toluene to paraxylene (TPX) processes to increase paraxylene production and lower costs. GBH ENTERPRISES, LTD

Petrochemicals: Global Markets Mixed Xylenes: Regional Demand North America currently accounts for nearly ¼ of global mixed xylenes demand but this share should erode to 17 percent by 2020. With demand growth forecast to average 3.0 percent per year through 2020, mixed xylenes demand in North America will grow through the forecast period but more slowly than in Asia, the Middle East and South America. Demand growth is forecast to be the strongest in the Middle East, averaging just less than 13 percent per year through 2020. Nearly all the mixed xylenes produced in the Middle East is converted to paraxylene, which in turn is converted to PTA for export or is exported as paraxylene. . While the previously mentioned technologies will continue to play a role in future growth, the easily available toluene has been captured. Transalkylation (TA) is another route to mixed xylenes production that uses a combination of toluene and C9+ aromatics to increase overall mixed xylenes yields. Indeed, this technology maximizes the xylenes yield from naphtha and will dominate conversion technology investment moving forward. The sum total of TDP/STDP/TA mixed xylenes production is expected to more than triple by 2020. GBH ENTERPRISES, LTD

Petrochemicals: Global Markets Summary: Feedstock Requirements Rapid demand growth in Asia Changes to gasoline regulations The influence of feedstock availability on capacity growth. The is perhaps one of the most important differences between the world of olefins and the world of aromatics. Note: Aromatics products and feedstocks, such as benzene, toluene and naphtha, are liquids and are much easier and less expensive to transport than light feedstocks (ethane, propane, and butane) for olefins. GBH ENTERPRISES, LTD

Petrochemicals: Global Markets Naphtha Considerations The rapid increase in condensate production in the Middle East will result in increasing supplies of naphtha. Some of the condensate will be processed in the Middle East thereby increasing naphtha exports while the balance will be marketed in Asia where it will be used to produce petrochemicals. The potential naphtha yield is about 50 percent. Naphtha trade as a percentage of reported production is about 20 percent. There is some trade in aromatic (high N+A) naphtha but most naphtha trade is feed for olefins plants. Most of the naphtha trade occurs between producers in the Middle East and consumers in Asia. South America, Africa and the FSU are also net exporters whereas Asia, North America and Europe are net importers. World demand for naphtha for petrochemical manufacture will grow at a rate of about 2.5 percent per year over the next 15 years. High N+A naphtha demand for aromatics manufacture will increase at a rate of about 3 percent while olefin naphtha (high in paraffins) will grow slower at just over 2 percent per year. The reason for the slow growth for olefins manufacture is the rapid increase in ethane and LPG use in the Middle East. GBH ENTERPRISES, LTD

Petrochemicals: Global Catalyst Markets Aromatics Organic Synthesis Oxidation Organic Chemicals Inorganic Chemicals Hydrogenation Dehydrogenation Polymerization Polyethylene Polypropylene The expected trend in aromatics markets is for capacity to be added in regions with high demand for aromatics derivatives. In particular, Asia is expected to have strong demand for polyester, particularly for synthetic fibers and bottle resin. As a result, nearly 60 percent of the forecast growth in aromatics capacity will be in Asia, with Northeast Asia accounting for the largest share of this, with nearly 50 percent of total global growth in capacity. The expected trend in aromatics markets is for capacity to be added in regions with high demand for aromatics derivatives. Asia is expected to have strong demand for polyester, particularly for synthetic fibers and bottle resin. Nearly 60 percent of the forecast growth in aromatics capacity will be in Asia, with Northeast Asia accounting for the largest share of this, with nearly 50 percent of total global growth in capacity. The combined growth in olefins and aromatics production will require rapidly increasing naphtha supply. Demand growth will occur in all regions but Asia/Pacific is the most rapidly growing area and it will take market share from Europe. GBH ENTERPRISES, LTD

Petrochemicals: Aromatics Production Aromatics Catalyst Basically, these catalytic processes are used to adjust the production ratio of benzene-toluene-xylenes to match the market needs. For example, p-xylene is the feedstock for terephthalic acid production (mainly for polyester resin and fiber). It has a far greater market than the other C8 aromatic species, but it is produced, based on equilibrium limitations, only as a fraction of the total. For this reason, this aromatic catalyst market is second only to that of ethylbenzene in terms of value, with the market in 2001 being about $30 million, projected to hit $38 million in 2009. Interestingly, in terms of volume of catalyst, this application is much smaller than all others, indicating the fact that the xylenes catalysts are more costly catalysts with a higher unit value than other catalysts. For much of the decade, it is projected that the demand for xylene catalysts will grow at a healthy 3% AAGR, mainly driven by the global demand for polyester. The xylenes category in Table III-12 covers a number of inter-conversion processes, including disproportionation of toluene to benzene and xylenes; transalkylation of toluene with trimethyl benzenes to xylenes; and isomerization of m-xylene to o-xylene and p-xylene GBH ENTERPRISES, LTD

By Interconversion Process Technology Petrochemicals: Aromatics Production By Interconversion Process Technology BTX Hydrodealkylation Cyclohexane Cumene Pyrolysis Gasoline Extraction Reforming & Reforming Extraction Transalkylation of Toluene with Trimethyl Benzene Toluene Disproportionation Selective Toluene Disproportionation Benzene from Coal / Pet Coke Isomerization & Separation of Para- and Ortho Xylene Ethylbenzene by Distillation from Xylenes Cyclohexane by Hydrogenation of Benzene PXE C0-Prod GBH ENTERPRISES, LTD

Petrochemicals: Global Markets Principal Feedstock: Benzene Benzene Ethylbenzene (55%) Cumene (17%) Cyclohexane (14%) Remaining Alkylbenzene 3% Nitrobenzene 6% Others 5% Demand: 36.2 Million MT Forecast: 4.1 %/Year Growth 2000 – 2020 Total Demand Growth: 24.3 Million MT Note: Demand for benzene in the styrenics chain (ethylbenzene) is forecast to grow at rates of 3.5 percent per year through 2020. Ethylbenzene has only one use-the production of styrene monomer for polystyrene production.   As explained in this report, the alkylation of benzene with ethylene is the dominant process. As shown by the data in the table, the use of zeolites for the alkylation reaction is displacing the traditional aluminum chloride Friedel-Crafts alkylation catalysts. This displacement is taking the form of both retrofitting existing plants and being the catalyst of choice for new plants. The total value of the ethylbenzene catalyst market in 2001 is $38 million, the largest single catalyst market. It will reach $46 million in value by 2009. The net growth of ethylbenzene catalysts is obviously linked to only that of polystyrene. On a global basis, this growth will be healthy, but as is the case of most petrochemicals, the variation in growth of demand by regions will be telling as production is shifted to the Far East and the Middle East. The next most important aromatic catalyst in terms of dollar value, at $15 million in 2001, but the most important in terms of volume, is for alkylbenzene production. This too is an alkylation reaction, but the traditional catalysts are either hydrogen fluoride or aluminum chloride Note: Forecast growth for cumene is expected to be significantly stronger, averaging almost 5.0 percent per year through 2020. . GBH ENTERPRISES, LTD

Petrochemicals: Aromatics Production Aromatics Catalyst: Cumene Cumene is also produced by the alkylation of benzene, this time with propylene. Basically all cumene is used to produce phenol and acetone via the cumene hydroperoxide process. The use of traditional Friedel-Craft type of alkylation catalysts is being superceded by zeolites. The total value of cumene catalysts in 2001 is about $11 million. The growth in demand, also averaging about 3% AAGR, is largely driven by phenol demand for polycarbonate production (via bisphenol A), and to a lesser degree, phenolic resins, nylon, alkylphenols and polyphenylene oxide The co-product acetone’s growth is also related to polycarbonates, as well as methylmethacrylate. The cumene catalyst market is expected to reach $13 million by 2009.   The value of all other aromatics catalysts, including hydrodealkylation of toluene (a large volume, low value catalyst market), adsorbents used in aromatics separation, etc. totals around $69 million in 2001. If growth is as predicted, just short of 3% AAGR, the sales of all other aromatics catalyst will reach $83 million in 2009. The value of all aromatics catalyst markets in 2001, including those itemized in Table III-12, total about $164 million. The projected total aromatic catalyst market in 2009 is $199 million. GBH ENTERPRISES, LTD