GLOSSARY OF TECHNICAL TERMS

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1 This glossary of technical terms contains explanations of certain terms used in this document as they relate to us and as they are used in this document in connection with our business or us. These terms and their meanings may not always correspond to standard industry meaning or usage of these terms. acetic acid core unit a unit in a petrochemical plant that produces acetic acid, which is chemical reagent for the production of chemical compounds such as vinyl acetate and esters acrylic acid an organic compound used in a number of industrial applications, such as the production of acrylic esters and resins primarily used in coatings and adhesives acrylonitrile aromatics or benzene, toluene and xylene aromatics extraction crude and vacuum distillation unit or CDU/VDU boiler butadiene butene-1 an important monomer used to manufacture synthetic rubbers, synthetic fibers and plastics aromatic hydrocarbon or arene, a type of hydrocarbon with alternating double and single bonds between carbon atoms, which are extracted from gasoline and utilized in chemical industry widely the process of splitting aromatics such as benzene, toluene and the three types of xylene, known as BTX, from crude oil distillates such as naphtha a common process unit found in an oil refinery in which crude oil is distilled into fractions at atmospheric pressure and vacuum a common unit installed in an industrial plant which is used to generate steam an important industrial chemical used as a monomer in the production of synthetic rubber and other industrial chemicals a chemical used as a co-monomer for the production of high density polyethylene and linear low density polyethylene products and a feedstock for the production of other industrial chemicals C5 removal a process in which C5 fractions are split from by-products of ethylene cracker plant; C5 fractions are used to rubber, pharmaceutical and fine chemical industry catalyst a substance that improves the expected performance of a chemical reaction, for which it may remain unchanged 22

2 catalytic cracking the process of breaking long-chain hydrocarbons into short-chain hydrocarbons by increasing the temperature and using catalysts. See fluid catalytic cracking unit or Fcc clean energy energy that creates no emission or less emission than traditional energy sources such as crude oil and coal. Clean energy includes energy from renewable sources such as water, wind and the sun, and may include energy from natural gas or certain types of coal production and use coal chemicals coal gasification industry processes including conventional coal chemicals and new coal chemicals. See Industry Overview The New Coal Chemical Industry in the PRC chemical processes that convert coal into coal gas, a type of syngas combining carbon monoxide and hydrogen. See new coal chemicals coal-generated hydrogen hydrogen produced by coal gasification, in contrast to hydrogen produced from natural gas compressor unit continuous catalytic reforming a mechanical device that increases the pressure of a gas by reducing its volume, which can be used to increase the pressure on a gas phase fluid a process in which low octane naphtha is converted into high octane reformate which has higher content of aromatics and cyclic hydrocarbons conventional coal chemicals industry processes including coking, calcium carbide, synthetic ammonia and methanol crawler crane a crane mounted on an undercarriage with a set of tracks, or crawlers, which provide stability and mobility crude oil a naturally occurring flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, which is used as the raw material for the production of oil and petrochemical products delayed coking unit denitration a common process unit found in an oil refinery in which heavy residual oil feed is converted into gasoline and diesel fuel, leaving petroleum coke as a residual product process by which nitrate or other nitrogen compounds are removed from mixtures or compounds 23

3 desulfurization diesel hydrotreating direct coal liquefaction distributed control system DMTO Enterprise Resource Planning or ERP environmental engineering EPC EPC Contracting ethylbenzene process by which sulfur or sulfur compounds are removed from mixtures or compounds. See hydrotreating unit the mixing of hydrogen with diesel fractions of petroleum in an oil refinery to improve quality of diesel by removing sulfur and nitride through reaction with hydrogen a method of converting coal to a liquid fuel whereby the fuel is not first converted to a gaseous state as an intermediate process. See new coal chemicals control system in which controller elements are not central in a location but are distributed throughout the system with each component sub-system controlled by one or more control systems Dalian methanol to olefins. See methanol to olefins a system for integrating internal and external management information across an entire organization, generally using integrated software applications to automate the integration the application of science and engineering principles to improve the natural environment to provide healthy water, air and land for human habitation and to remediate polluted sites, including waste water management, air pollution control and waste disposal Engineering, procurement and construction; a business model by which a service provider undertakes the engineering, procurement and construction of a project. An EPC contractor is typically responsible to the project owner for the quality, schedule and costs of a project one of our business segments, under which we adopt business models including engineering, procurement and construction ( EPC ), engineering, procurement, construction and commissioning ( EPCC ), engineering and procurement ( EP ), procurement and construction ( PC ) and engineering, procurement and construction management ( EPCM ). See Business EPC Contracting Business Models an aromatic hydrocarbon; an intermediate product in the production of styrene, which in turn is used to make polystyrene, a common plastic material 24

4 ethylene oxide/ethylene glycol ethylene FEED or front-end engineering design fluid catalytic cracking unit or Fcc gas purification gasification technology heat exchanger HSE hydrocarbon hydrocracking unit hydrogen production unit also known as EO/EG, which are important raw materials used in the large-scale chemical production. Most ethylene oxide is used for synthesis of ethylene glycol, which is mainly used as antifreeze and in the production of polyester and polyethylene terephthalate, liquid coolants and solvents a hydrocarbon with the formula C 2 H 4. It is the simplest alkene (a hydrocarbon with carbon-carbon double bonds) and widely used in the chemical industry with the worldwide production exceeding that of any other organic compound. Ethylene is typically produced in the petrochemical industry by steam cracking the basic engineering design following the conceptual design or feasibility study, which defines the basic scope, parameters and economic impact of the project; it is generally used as the basis for soliciting bids for engineering and EPC Contracting contracts in project implementation phase a common process unit found in an oil refinery which converts high molecular weight hydrocarbon fractions of petroleum to more valuable lower molecular weight hydrocarbon fractions such as gasoline, olefins and other products the removal of impurities contained in industrial gases the various methods for converting organic or fossil-based carbonaceous materials into carbon monoxide, hydrogen and carbon dioxide without combustion equipment designed to efficiently transfer heat from one medium to another; for example, equipment used to heat crude oil before it enters an atmospheric distillation unit health, safety and environment molecule comprised of hydrogen and carbon atoms of varying forms and lengths a component of an oil refinery that uses hydrogen gas to upgrade high molecular weight hydrocarbon fractions of petroleum to more valuable lower molecular weight hydrocarbon fractions a unit of an oil refinery that produces hydrogen 25

5 hydrotreating unit industrial furnace module indirect coal liquefaction IGCC isopropyl benzene Ktpa linear low-density polyethylene a component of an oil refinery that decreases the amount of sulfur, among other elements, in the oil products by using hydrogen a unit in a petroleum refinery or petrochemical plant that generates heat for various processes a method of converting coal to a liquid fuel whereby the fuel is first converted to a gaseous state before being converted to a liquid state. See new coal chemicals integrated gasification combined cycle, a technology that is typically used for energy saving and emission reduction scheme, which uses a gasifier to turn coal and other carbon-based fuels into syngas from which impurities such as sulfur, mercury and particulates can be removed prior to combustion; the technology is integrated because the syngas produced is used as fuel for a gas turbine and steam produced by the syngas coolers are used to drive a steam turbine an organic compound based on an aromatic hydrocarbon used to produce industrially important chemicals such as phenol and acetone thousand tons per annum a substantially linear polyethylene polymer commonly made by copolymerization of ethylene with longer-chain olefins LNG also known as liquefied natural gas, a gas comprised predominantly of methane that has been converted to liquid form for ease of storage or transport low density polyethylene low-level heat recovery also known as LDPE, a thermoplastic made from the monomer ethylene, widely used in the plastics industry the process of recovering heat generated during oil refining and chemical production, for use in other applications and processes, such as generating electricity methanol methanol is used to produce the industrial chemical formaldehyde, fuel or fuel additives and olefins such as ethylene and propylene methanol to olefins or MTO modularized installation a process for producing olefins from methanol a method for installing components of a structure where the subassemblies of the component are integrated to the highest degree possible before the component is installed in the plant 26

6 Mt MTBE Mtpa naphtha natural gas to liquid fuel or GTL new coal chemicals OBE or open book estimate oil refining and petrochemical integrated engineering olefin phenol-acetone phosphate compound fertilizer polyethylene million tons also known as methyl tert-butyl ether, used in gasoline as an octane booster and oxygenate. MTBE can also be used to make high purity isobutylene for butyl rubber and polyisobutylene production and employed as a solvent and extractant million tons per annum intermediate hydrocarbons derived from the refining of crude oil. Naphtha can be used as a feedstock for producing high octane gasoline via catalytic reforming and in the petrochemical industry for producing olefins in steam crackers a process in oil refineries which converts natural gas into longer-chain hydrocarbons such as gasoline or diesel fuel industry processes including the conversion of coal to oil products, natural gas or oil alternatives for use as raw materials for the production of olefins and other basic organic materials a method of providing engineering and construction services whereby the general contractor provides all of its working documentation to the client for review so that the client may assess the total scope of work to be delivered in order to negotiate an EPC contract the application of technology and scientific principles to the integration of processes traditionally associated with oil refining, such as producing various types of oil products, with petrochemical processes traditionally carried out downstream, such as producing ethylene and propylene also known as an alkene, an unsaturated hydrocarbon. The simplest olefin is ethylene. Other olefins include propylene, butene, among others two chemicals used to make products in industries such as pharmaceuticals, plastic, clothing and textiles, automotive components and household appliances various fertilizers based on phosphate compounds important in the agricultural sector a thermoplastic polymer consisting of ethylene. Polyethylene is the world s most widely-used plastic 27

7 polyolefin polypropylene a polymer produced from a simple olefin as a monomer. Common polyolefins include polyethylene, produced from polymerizing ethylene, and polypropylene, produced from polymerizing propylene a thermoplastic polymer used in a wide variety of applications including packaging and labeling, textiles, plastic parts and reusable containers of various types, among others potassium hydroxide an inorganic compound with many industrial and niche applications, such as the production of soft and liquid soaps and the removal of organic acids and sulfur compounds in petroleum and natural gas refining pressure vessels closed containers designed to hold gases, liquids or solids at a pressure substantially different from the ambient pressure propylene also known as propene, a hydrocarbon with the formula C 3 H 6, which is the second simplest alkene (a hydrocarbon with carbon-carbon double bonds) and widely used in the chemical industry. Propylene is the raw material for a wide variety of products PTA purified terephthalic acid, a key raw material for the manufacture of polyester fiber, resin, and film; used to produce polyethylene terephtalate, or PET p-xylene or PX an aromatic hydrocarbon used in the manufacture of terephthalic acid, which is in turn used to produce polyester pyrolysis gasoline hydrotreating subjecting pyrolysis gasoline, a naphtha-range liquid by-product of ethylene and propylene production with a high aromatics content, to chemical reaction with hydrogen in the presence of a catalyst to increase saturation and decrease sulfur- and nitrogen-containing compounds to enable it suitable for use as a gasoline additive reactors residue vessels, tubes, pipes or other containers within which a chemical reaction is made to take place; such reaction can be a batch or a continuous reaction and can use thermal, catalytic or irradiation actuation the heaviest fractions in crude oil, comprised of hydrocarbon chains with over 26 carbon atoms, which are generally further processed after initial distillation of the crude oil to create lighter fractions or petroleum coke 28

8 rotating equipment seam gas shale gas single-train oil refinery SMTO static equipment steel structures storage and transportation engineering syngas t/d towers vinyl acetate equipment used in oil refineries and chemical plants that have significant rotating parts, such as pumps, compressors and turbines, and stand in contrast to equipment with no significant rotating parts, such as heat exchangers, reactors and pressure vessels and other static equipment. See static equipment a form of natural gas extracted from coal seams, or coal beds natural gas that is present in shale, a type of sedimentary rock, that is generally harvested through a process of hydraulic fracturing an oil refinery that comprises only one of each key functional unit Sinopec methanol to olefins. See methanol to olefins equipment used in oil refineries and chemical plants that do not have significant rotating parts, such as heat exchangers, reactors, pressure vessels, condensers, furnaces, piping systems, towers (columns) and storage tanks, and stand in contrast to equipment with significant rotating parts, such as pumps, compressors, turbines and other rotary equipment. See rotating equipment the structural framework for many of the processing units and piping systems in an industrial plant the application of technology and scientific principles to the planning, functional design, operation and management of facilities for any mode of storage and transportation in order to provide for the safe, convenient, economical and environmentally compatible movement of goods, including the use of tanks, tankers and pipelines for the storage and transport of crude oil and oil and chemical products synthesis gas, a gas mixture that contains varying amounts of carbon monoxide and hydrogen, produced by the steam reforming of natural gas or by the gasification of coal tons per day general term for various columns which comprise units of oil refineries and chemical plants used for split process an organic compound used in the production of polyvinyl acetate, an important industrial polymer 29

9 Xylene tower a unit in an oil refinery or petrochemical plant designed to split Xylene isomers from other fractions 30

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