Technologies to Optimize China’s

Shale Gas Production

UOP 5887-1

Honeywell’s Businesses$36.5 billion in revenues in 2011, 50% outside of U.S. Nearly 130,000 employees operating in 100 countries Morristown, NJ global corporate headquarters Automation & Control Solutions Performance Materials & Technologies Transportation Systems

Aerospace

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Energy EfficiencyMore than 50% of Honeywell’s portfolio offers energy efficiency benefitsBy immediately and comprehensively adopting existing Honeywell products, the United States could reduce energy consumption byAir Traffic Modernization Biofuels

Green Buildings

Reduced Emissions

Fuel Efficiency

Industrial Process Efficiency

20 to 25 percentEnergy Efficiency, Demand Response, & Smart Grid

Energy Performance Contracts

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UOP Company ProfileServing the Refining, Petrochemical & Gas Processing IndustriesProfileBusiness Units: Gas Processing and Hydrogen (GP&H) Process Technology & Equipment (PT&E) Catalysts, Adsorbents & Specialties (CA&S) Renewable Energy and Chemicals (RE&C) Offering: Technology, Catalyst & Services to the Refining, Petrochemical and Gas Processing Industries Supplier of molecular sieve adsorbents to process and manufacturing industries Products 51%

Sales: BreakdownEquipment 25%

Licensing 12% Services 12%

Significant Technology PositionUOP Facilities - WW HQ: Des Plaines, Illinois(suburban Chicago) Employees: 3500+

Diverse Offering Sales: Geographic

19 Offices 16 Countries 12 Manufacturing Facilities 5 Engineering Centers

UOP Offices UOP Manufacturing sites

Global Footprint

Global CustomersUOP 5887-4

UOP Project CyclePlanning & Consulting StudiesEngineering Services Basic Engineering Design Advanced Process Control EquipmentTechnology Delivery– Modular Construction – 160 projects since 1987

Catalyst, Adsorbent, Chemicals Training Start-up Assistance Ongoing Services & Inspection

UOP delivers total technology solutions via Modular Equipment and/or Licensed Processes

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Global Gas Supply and DemandStrongEuropean demand Significant Resources

Abundant Shale Supply North America remains separate from global markets – but export projects gaining in credibility

Liquefaction Supply SurgeJapanese crisis – strong incremental LNG demand Large Gas Reserves Ready for Harvest

Strong demand growth across Asia

South America – Imports ramping up again

Technically recoverable shale gas reserves estimated at 1,275 TCF (source EIA) Total unconventional recoverable gas reserves estimated at 1,700 TCF (IEA) Near term plan in China – by 2015: establish 7 TCF recoverable shale gas out of 22 TCF proven shale gas reserves

China building infrastructure to develop gas reserves

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China Gas Treating ChallengesShale gas quality not well defined Lean gas processing may differ from rich gas processing Highly flexible solutions desired Innovative technical solutions to lower the cost of production Contami

nant control may be needed for low levels of H2S

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Natural Gas Value ChainExtraction

UOP Gas Cleanup Technology Acid Gases (H2S, CO2)

ProcessingSeparex Membrane Systems Amine Guard FS Process Selexol Process

Transportation Pipeline & LNG

Water & Mercury StorageMOLSIV & Adsorbents

Distribution

Natural Gas LiquidsTwister® Supersonic Separator Ortloff Processes

UOP has Cleanup Solutions for All Conditions

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UOP Company History from Gas Processing PerspectiveTwister® Separators 1st integrated LNG complex based on UOP feed pretreating technology

2012 2011 2009 2004FEED for FLNG

UOP acquires rights to Amine GuardTMFS& SelexolTM process technologyJoint venture between Union Carbide CAPS division and UOP

1998 1994 1988UOP Separex membrane system for Tupi FPSO

UOP Founded

1949

UOP begins to offer Separex membrane systems Union Carbide develops MOLSIV adsorbents

1914

Industry Leader for Proven Technology; Continual Investment in Future Technology

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UOP SeparexTM Membrane Systems

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Commercial Experience

Installation Type Natural Gas Enhanced Oil Recovery (EOR) Hybrids Offshore Landfill Gas Digester Gas H2 Purification

No. of Units 52 5 5 7+12 7 1 94

Total

>170

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Large Onshore Separex Projects

LocationPakistan

MMSCFD500

CO2 Removal6.5%-2%

PretreatmentMG

Stages2

PakistanMexico Egypt Egypt Spain

200120 107+218 234 980

12%-3%70%-5% 6.7%-3% 9%-3% 5%-2.5%

MGMG Std Std Std

22 2 2 1

Offshore Separex ProjectsCO2 Removal50%-20% 44%-8% 40%-23% 28%-3% 35%-23%

LocationThailand Malaysia Thailand FPSOThailand Thailand1

MMSCFD32 680 580 11 480

PretreatmentMG MG MG J-T MG

Stages1 2 1 1 1

FPSOBrazil21 Startup June FPSOBrazil 2011 2

176176

25%-5%35%-5%

J-TJ-T

21

Startup 2012

Antrim Shale Gas – Project HistoryQuicksilver Resources Inc. – (formerly Mercury Exploration)1993 – Chose a Separex Membrane system for CO2 removal at the Wilderness Plant near Gaylord, MI Why?– Capital costs appeared to be similar – Operating costs appeared to be similar – Installation in phases with delayed investment 1993 1994 1995 Plant 1 Plant 2 Plant 3 15 MMSCFD 15 MMSCFD 15 MMSCFD

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Antrim Shale Gas16 14

Inlet12 CO2 - Mole % 10 8 Design Feed CO2 Level 6 4

Outlet2 1995

1996

1998

2000

2002

2004

2006

2008

2010

Feed CO2 has steadily increased Product Gas CO2 has remained on specificationUOP 5887-15

Antrim Shale Gas 2006 – Reality CheckOperating CostsMembrane Plant ESTIMATED Cost ($/MSCF) 0.131 Membrane Plant ACTUAL to 1995 0.111 Membrane Plant ACTUAL to 2006 0.095

Simple back calculation gives cost savings of the Membrane Plant (0.131-0.095) x 45,000 x 365 x 0.998 = $590,117 / year

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