PDH Polska S.A.

Adres Siedziby

PDH Polska S.A.

ul. Kuźnicka 1, 72-010 Police

Zarząd Spółki

Andrzej Niewiński – Prezes Zarządu

Artur Więznowski – Wiceprezes Zarządu

Marek Czyż – Wiceprezes Zarządu

PDH Polska S.A. z siedzibą w Policach, ul. Kuźnicka 1, 72-010 Police wpisaną do rejestru przedsiębiorców prowadzonego przez Sąd

Rejonowy dla Szczecina-Centrum w Szczecinie XIII Wydział Gospodarczy Krajowego Rejestru Sądowego – numer KRS 0000577195,

NIP 8513187611, o kapitale zakładowym i wpłaconym w wysokości 60 000 000 PLN.

rev. 4, 18.1.2017 Page 1 of 7

[THIS TRANSLATION OF THE DESCRIPTION INTO ENGLISH

IS FOR INFORMATION PURPOSES ONLY.]

APPENDIX 5

TO LETTER OF INVITATION TO EXPRESS INTEREST TO BID

FOR A LUMP SUM TURNKEY PDH PROJECT EPC CONTRACT

DESCRIPTION OF THE PDH PROJECT

AND THE SCOPE OF THE EPC CONTRACT

Introduction

This document is provided for the EXPRESSION OF INTEREST purposes only. The aim of this document is

to give the prospective bidders a general overview of the scope and scale of the PDH PROJECT and the future

EPC CONTRACT, in order to enable each of the prospective bidders to decide whether to submit the

EXPRESSION OF INTEREST in accordance with the LETTER, and whether it is or may be necessary for such

a given prospective bidder to arrange a consortium to be able to submit the EXPRESSION OF INTEREST and

the EPC BID in the TENDER.

Under no circumstances shall this document be treated as an exhaustive description of the PDH PROJECT

or the exhaustive scope of the EPC CONTRACT or technical specification for the EPC BID purposes. Detailed

information with regard to the scope of the EPC CONTRACT, including technical aspects of the PDH

PROJECT, will be issued by the OWNER at the later stages of the TENDER, in particular in the ITB. .

Description of the PDH PROJECT

The PDH PROJECT includes: the PDH UNIT together with auxiliary facilities (the “OSBL UNITS”) and

additional infrastructure such as the HARBOUR and the SWITCHGEAR.

Description of the PDH UNIT

Description of the Process Units

The OWNER intends to install a new PDH C3-Oleflex™ Process unit under UOP LLC (the “LICENSOR”)

license to produce propylene by the catalytic dehydrogenation of propane at a chemical site in Police, Poland.

As per Basic Engineering Design prepared by the LICENSOR (i.e. the PDH BED), the nameplate propylene

production capacity of the PDH UNIT is 400.000 tons/year.

The PDH UNIT includes the following Process Units defined by the LICENSOR:

Oleflex™ Reactor Section,

Oleflex™ Fractionation Section,

Oleflex™ CCR Regeneration Section,

PDH Polska S.A.

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Huels Selective Hydrogenation Process Unit (SHP);

PSA System,

Instrumentation and Control System,

Fuel Gas Preparation System,

Solvent Recovery Column Bottoms Cooler,

Refrigeration Equipment (Deethanizer Section),

CCR Vent gas treating system,

CCR Air Drier.

A simplified block flow scheme for the Process Units in the PDH UNIT is presented on the scheme 1 below.

Scheme 1. PDH Process Units - Block Flow Diagram

Description of the OSBL UNITS

Auxiliary facilities are dedicated to satisfy the PDH UNIT’s demand for utilities. On the top of that, they

include also units for gas and liquid effluents handling, product storage and dispatch, feed pre-treatment and all

necessary interconnections between the HABOUR, Grupa Azoty Zakłady Chemiczne “Police” S.A. existing

facilities and the SWITCHGEAR.

The OSBL UNITS are composed, but not limited to, of the following units:

Methanol Removal - in the process scheme this system is located upstream of Feed Treating Unit which is

a part of Process Units,

Flare and flare facilities – dedicated to the PDH UNIT and the OSBL UNITS,

SHP

Separation

System

Reactor

Train

H2/C1-C4+

C1-C4+

C3/H2

C3/C4+

CCR

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Oleflex™ CCR

Reactor

Section and

CCR

Regenerator

Section

Oleflex™ Reactor

Section

Oleflex™

Fractionation Section

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Cooling Water - designed to provide cooling water to the PDH UNIT and all OSBL UNITS, specifically:

- Oleflex™Reactor Section,

- Oleflex™ Fractionation Section,

- Methanol Removal,

- Oleflex™ CCR Regeneration Section,

- Raw Water Treatment, Condensate and Fire Water,

- Boiler Feed Water and Steam,

- Fresh Caustic,

- Instrument Air & Nitrogen,

- Propylene Storage and Loading,

- Wastewater Treatment.

Boiler Feed Water and Steam – designed to produce boiler feed water and steam of proper quality and

quantity to satisfy the PDH UNIT’s demand. The unit mentioned mainly consists of:

- Deaeration and Treatment Package,

- HP Steam Boiler and blowdown system,

- Steam Distribution and Steam Power Generation System.

Instrument Air & Nitrogen – this unit will produce plant air, instrument air and nitrogen of proper quality

and quantity to satisfy the PDH UNIT’s and the OSBL UNITS’ demand. The unit mentioned includes:

A. Instrument and Plant Air Production composed of:

- Air Compressor,

- Compressed Air Hold-Up Receiver,

- Air Dryers,

- Instrument Air Hold-Up Receiver,

- Distribution network of Instrument & Plant Air

B. Nitrogen Production composed of:

- Nitrogen Generation based on cryogenic technology,

- Liquid Nitrogen Storage and Vaporization,

- Gas Nitrogen Hold-up vessel and Nitrogen distribution.

Waste Water Treatment (“WWT”) - designed for liquid effluents treatment from the PDH UNIT and the

OSBL UNITS. The WWT consists of the following main parts:

- Rain water/fire water collection

- Wastewater treatment, composed of:

o Deoiling treatment steps: CPI (Corrugated Plate Interceptor) and DAF (Dissolved Air

Flotation) and their relevant facilities, for free oil and suspended solids removal.

o Spent Caustic Treatment Package.

Raw Water and Fire Water – this unit is designed to produce process water, fire water, demineralized water

and deaerator feed water of proper quality and quantity to satisfy the PDH UNIT’s and the OSBL UNITS’

demand. This system is mainly composed of:

- Sand Filtration,

- Clarification,

- Thickener and Dewatering,

- Gravity filtration,

- Process and Fire Water Storage and Pumping System Demineralization,

- Demi Water Storage and Distribution,

- Condensate,

- Potable Water Storage and Distribution.

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Fresh Caustic - designed to provide 10% wt. caustic soda solutions to the PDH UNIT, specifically:

- Regenerant Gas Scrubber,

- Vent Gas Treating System in CCR Regenerator Section.

The system consists of:

- Diluted Caustic Solution System,

- Diluted Caustic Storage,

- Diluted Caustic Distribution.

Propylene Storage and Rail Car Loading - includes the propylene storage bullets and relevant export

facilities for the PDH UNIT. This system is designed to cover the following operating scenarios:

- Propylene Storage - two types of storage are foreseen:

o Propylene On-Spec Storage

Propylene On-Spec storage will be sized on 3.5 days of the PDH UNIT production,

Minimum required On-Spec storage is 4200 tons,

Storage of propylene is achieved through mounded bullets due to logistic transportation

constrains; three mounded bullets are foreseen,

o Propylene Off-Spec Storage

Propylene Off-Spec storage will be sized to receive the bottom of Propylene/Propane

splitter,

Minimum required Off-Spec storage is 2000 m3,

One mounded bullet tank is foreseen.

- Propylene Export to the HARBOUR:

o Propylene export to the HARBOUR is sized for filling the entire propylene on spec storage

at harbour facilities (4000 tons) in 48 hours.

Considering the above design on-spec export flow rate from the PDH UNIT to the

HARBOUR is designed for 85 tons/h (170 m3/h).

- Propylene Rail Cars Loading:

o Propylene export will be performed via batch loading to rail cars. Product loading system

consists of:

a pumping station,

a loading control system,

a flow measurement system (Coriolis Type) for each loading arm,

8 loading arms for tie-in to the rail cars,

a vapour balance line connecting rail cars back to the Propylene bullets,

facilities for connection to the flare system.

Propylene capacity, to be loaded on daily basis, is 1320 tons. Rail car capacity is 40 tons

minimum each.

NOTE: In case the OWNER decides to implement the PP UNIT, the rail loading terminal

size may need to be reduced.

Interconnecting between the PDH UNIT and the HARBOUR includes among others propane and propylene

lines (sized for max. flow 75 tons/hour of propane and 85 tons/hour of propylene respectively), power supply

cable and instrumentation cable.

Interconnecting between the PDH UNIT/OSBL UNITS and Grupa Azoty Zakłady Chemiczne “Police” S.A.

includes among others all necessary piping and instrumentation cables connection between the PDH

UNIT/OSBL UNITS and Grupa Azoty Zakłady Chemiczne “Police” S.A. existing facilities.

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Description of the HARBOUR

The main purpose of the new HARBOUR facilities is to provide a fresh feedstock (propane) to the PDH UNIT

from sea ships carriers via propane storage. The HARBOUR is also designed for propylene export via see

ships to off-takers’ destinations.

The designed HARBOUR will be located on the bank of Odra (Oder) river branch of Kanał Policki opposite to

Długi Ostrów island adjacent to the area of existing fertilizers harbour.

The HARBOUR will be located on land plots and on harbour water area of Kanał Policki. For more details

please see the scheme no.2 below.

The HARBOUR is assumed to be executed in two phases. Extension from Phase 1 to Phase 2 is related to

increase of depth of the Oder River from 10.5 m to 12.5 m. Capacity of all ships carrying propane will be in

the range of 12,000÷25,000 m3 in Phase I and up to 35,000 m3 in Phase II. In Phase I, Harbour facilities shall

enable to store 45,000 m3 of propane (equivalent to approx. 22,847 tonnes@15°C). In Phase II, the total

propane storage capacity will be increased to 60,000 m3 (equivalent to approx. 30,462 tonnes@15°C).

The HARBOUR’s jetty with the unloading facilities shall be designed for the reception of LPG Carrier Ships

with the dimensions varying from to:

Lc = 145 m; B = 23,0 m; T = 9,1 m.

Lc = 220 m; B = 32,0 , T = 11,0 m.

The HARBOUR shall be able to receive propane feedstock from Fully-Refrigerated (FR) carriers and Semi-

Refrigerated (SR) carriers.

The HARBOUR shall be able to export propylene product to Semi-Refrigerated (SR) carriers.

Description of the SWITCHGEAR

The SWITCHGEAR is designed to provide electric power to the PDH UNIT, the OSBL UNITS and the

HARBOUR.

The OWNER intends to build a completely new 110/10/ 6 kV switchgear called GPVI located close to

forecasted PDH UNIT’s location. The predicted power of transformers is as follows:

- 110/10 kV - 50 kVA

- 110/6 kV - 30 kVA

NOTE: In case the OWNER decides to implement the PP UNIT, the SWITCHGEAR and the transformers

capacity may need to be increased.

Description of the PP UNIT

The OWNER considers further expansion of the PDH PROJECT by adding the PP UNIT with related

auxiliary units. The Feasibility Study focused on technology selection, product structure and unit capacity is

being executed.

Scope of work for the EPC CONTRACOR

This appendix defines only the minimum scope of supply/services/works to be provided by the EPC

CONTRACTOR. The scope mentioned in the preceding sentence comprises design and engineering, project

management, supply and procurement, construction, assurance of the readiness for operation, testing,

mechanical completion, commissioning, performance testing, start-up, hand-over, including performance of all

associated safety, quality control, environment protection, and all other inherent and related obligations, on

PDH Polska S.A.

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a lump-sum, “turnkey” basis, in accordance with the EPC CONTRACT, and so that the PDH PROJECT

achieves and maintain the operating functionality and all guaranteed parameters specified by the OWNER.

Details in this respect will be provided by the OWNER at the later stage of the TENDER, in particular in

a draft EPC CONTRACT attached to the ITB.

PDH Polska S.A.

rev. 4, 18.1.2017 Page 7 of 7

Scheme 2. Indicative plan of the PDH PROJECT and the PP UNIT (option)