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 128 000 000 PLN.

rev. 4, 22.5.2017 Page 1 of 6

[THIS TRANSLATION OF THE DESCRIPTION INTO ENGLISH

IS FOR INFORMATION PURPOSES ONLY.]

APPENDIX 5

TO THE REVISED 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, PP 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,

• Huels Selective Hydrogenation Process Unit (SHP);

PDH Polska S.A.

rev. 4, 22.5.2017 Page 2 of 6

• 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 PP UNIT

The unit shall be designed for a nominal production capacity up to 400 kt of polypropylene a year, based on

propylene feed supplied from PDH Unit.

The unit is expected to include the following facilities:

• Feed treatment systems to purify propylene (if necessary), co-monomers and other streams used by the process

as well as intermediate day storage

• Chemicals storage

• ISBL Storage and preparation of catalysts and additives for polymerization section

• Polymerization section

• Polymer degassing, purging and catalyst deactivation

SHP

Separation

System

Reactor

Train

H2/C1-C4+

C1-C4+

C3/H2

C3/C4+

CCR

C4+

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De

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C3/C3=/C4+

Pro

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Sp

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C3=

Fu

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C2-

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C3

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Tail Gas

H2/C1

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Oleflex™ CCR

Reactor

Section and

CCR

Regenerator

Section

Oleflex™ Reactor

Section

Oleflex™

Fractionation Section

PDH Polska S.A.

rev. 4, 22.5.2017 Page 3 of 6

• Recovery of monomers, solvents and diluents. Note: Propane – propylene splitter shall be excluded from PP

Unit scope. It should be assumed that PDH Unit will be capable to process C3 purge stream recycled from PP

Unit.

• Extrusion additives ISBL storage and blending

• Pelletizing including the extruder train and associated systems

• Final product blending including blending silos and re-run systems.

The facility shall include (i) all permanent facilities required to activate, load & unload catalyst for the unit; (ii)

any special facilities required to facilitate smooth and safe start-up and shutdown of the unit; (iii) facilities for the

storage and preparation of chemicals required for the normal operation of the unit, or required to facilitate unit

shutdown and maintenance.

In addition to ISBL facilities Tenderer to advice and recommend, based on its experience, the technical guidelines

for design and configuration of:

• Final product storage

• Pneumatic conveying system

• Shipping and packaging facilities

Description of the OSBL UNITS

Auxiliary facilities are dedicated to satisfy the PDH and PP 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, PP UNIT and the OSBL UNITS,

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

specifically:

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

to satisfy the PDH and PP UNITS demand.

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

quantity to satisfy the PDH and PP UNITS and the OSBL UNITS’ demand.

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

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

• 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 and PP UNITS and the OSBL

UNITS demand.

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

The system consists of:

- Diluted Caustic Solution System,

- Diluted Caustic Storage,

- Diluted Caustic Distribution.

PDH Polska S.A.

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• 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 taking into account availability factors of PDH

and PP UNITSStorage of propylene is achieved through mounded bullets due to logistic

transportation constrains;

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 (as an option):

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 shall handle 50 % of capacity of production PDH UNIT

• Interconnections between the PDH UNIT and the HARBOUR include among others propane and propylene

(as an option) lines, power supply cable and instrumentation cable.

• Interconnections between the PP UNIT and the HARBOUR shall include ethylene pipeline (as an option

related to the PP UNIT).

• Interconnections between the PDH and PP UNIT/OSBL UNITS and Grupa Azoty Zakłady Chemiczne

“Police” S.A. existing facilities shall include among others all necessary piping and instrumentation cables

connections.

PDH Polska S.A.

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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 and ethylene import (as an option related to the PP UNIT).

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 up to c.a. 25,000 m3 in Phase I and up to 35,000 m3 in Phase II. In Phase I, Harbour facilities shall

enable to store (net working capacity) 50,000 m3 of propane. In Phase II, the total propane storage capacity will

be increased to (net working capacity) 60,000 m3 .

The HARBOUR’s waterway access and jetty with the unloading facilities shall allow for the reception of LPG

Carrier Ships with the lengths from 100 m to 220 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 (as an option for

export of the propylene).

The HARBOUR shall be able to receive ethylene feedstock from Fully-Refrigerated (FR) carriers (as an option

related to the PP UNIT).

Description of the SWITCHGEAR

The SWITCHGEAR is designed to provide electric power to the PDH UNIT, PP 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.

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

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 6 of 6

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