Industrial Chemistry Class Texas A&M University March 6, 2006

2. Industrial Chemistry ClassTexas A&M UniversityMarch 6, 2006

3. Where is Celanese?

4. Celanese Today Sales by Segments* Chemicals 66% Ticona 16% Acetate 14% Performance 4% • Attractive hybrid business model • Leading global producerposition • Clear advantage in technology and costs Sales by Regions* North America 40% Europe 40% Asia 20% • Opportunities for savings and synergies • 2005 sales: $ 6.1 bn • 2005 employees: ~9,300 Strong leading business *Percentage of 2005 Celanese projected net sales and Celanese share of equity and cost investments.

5. Continue with joint ventures Nanjing Complex New GUR plant Strategic Growth Region Asia Tomorrow 33% of Sales in Asia Polyplastics Korea Engineering Plastics Nantong Cellulose Fibers Co. Nanjing Acetyl Complex, China Zhuhai and Kunming Fibers Co. KEPCO, Polyplastics subsidiary, Taiwan. Polyplastics, Malaysia Celanese Chemicals, Singapore Building our presence in growth regions

6. Vision for continued future growth Automotive,E+E, MedicalDevices TiconaTechnicalPolymers Performance Adhesives, Paints, Coatings,Paper Celanese Emulsions, Polyvinyl Alcohol Acetyls Basic Chemicals Building Blocks Celanese Acetate Cash Drivers Nutrinova Performance Products Markets

7. Synthesis Gas in Celanese Methanol Formaldehyde PE, BG, and TMP Polymers Acetic Anhydride Acetic Acid Synthesis Gas Carbon Monoxide Vinyl Acetate PVOH Emulsions Butyraldehyde Butanol Butyl Acetate Propyl Acetate Propion- aldehyde Propanol Heptanal Heptanoic Acid Nonanal Perlargonic Acid

8. Paths to Synthesis Gas • Steam Reforming • Methanol • H2 supply for Alcohols • Partial Oxidation • CO supply for Acetic Acid • Syngas supply for Aldehyde • Coal Gasification • CO supply for Acetic Acid

9. Syngas from Steam Reforming • CO2 fed to drive water gas shift reaction towards CO • Nickel catalyst • Desulphurization of Methane Feedstock • Endothermic – heat supplied by burning Methane • Higher cost source of syngas for Celanese • Primarily used for production of Methanol

10. CH4 Steam CO2 CO2 Syngas Reformer Fuel Gas Air Absorber Stripper Quench Pot Gas Purification (amine) Syngas from Steam Reforming • Conversion dependent on steam:carbon ratio, temperature, and pressure • Typical furnace is box-like, numerous catalyst filled tubes • Reformer Temperature – ~1450 F • Reformer Pressure - ~130 psig • Amine used to remove acid gases (primarily CO2)

11. Syngas from Partial Oxidation (Water Gas Shift Reaction) • No catalyst • Reacted at high temperatures under conditions of insufficient O2 • Exothermic – steam generated from heat • CO2 can be fed to drive water gas shift reaction towards CO • Primary source of syngas for Celanese • Used for raw material feed to Acetic Acid and Oxo Units

12. Syngas from Partial Oxidation CH4 O2 Stripper Absorber Scrubber CO2 Syngas Reactor WHB Gas Purification (amine) 1:1 CO:H2 99% CO Syngas Syngas H2 H2 Membrane Coldbox • Oxygen/CH4 ratio is important to prevent high temperature or soot conditions • Reactor Temperature – ~2500 F • Reformer Pressure – 800+ psig • Amine used to remove acid gases (primarily carbon monoxide) • Membranes or coldbox is used to modify CO/H2 composition

13. Syngas from Coal Gasification • No catalyst • Exothermic • Reaction adjusted through WGS to increase H2 • Future source of syngas for Celanese in China

14. Coal Gasification Sulfur Sulfur Recovery CO to Coal by Railcar Oxygen (2 100% Trains) Acetic Acid Unit Coal Storage/ Gasification Acid Gas Grinding/Slurry Gas Cooling Cold Box (2 100% Trains) Removal Syngas Prep Steam H2 Sales Slag and Fines Handling Ash • Reactor temperatures can operate between 1650 and 2750 F • Similar purification steps to remove CO2 and adjust H2 composition • Additional process steps required to handle ash and sulfur • Additional steps required for handling solid raw material

15. Synthesis Gas in Celanese Methanol Formaldehyde PE, BG, and TMP Polymers Acetic Anhydride Acetic Acid Synthesis Gas Carbon Monoxide Vinyl Acetate PVOH Emulsions Butyraldehyde Butanol Butyl Acetate Propyl Acetate Propion- aldehyde Propanol Heptanal Heptanoic Acid Nonanal Perlargonic Acid

16. Reliability Sensitivity • What happens if syngas on-stream reliability (OSR) is poor? • Hypothetical Example: Unit producing 2,000 mT/day of acetic acid. Revenue of $100/mT. What is revenue benefit of 98.5% OSR versus 95% OSR?

17. Fossil Fuel Pricing Katrina / Rita Sept. 11th

18. Natural Gas Pricing$ / MM BTU $4.0 / MM BTU $5.5 / MM BTU $2.5 / MM BTU $8-14 / MM BTU $1.0 / MM BTU $1.5 / MM BTU $4.5m South America 2001 Price 2005 Price Chemical Market Associates, Inc., 2005

19. What does it take to remain competitive?

20. Career Path - Jon Makelki Process Engineer Bishop Plant 1998 Co-op/Intern Bishop Plant 1996 6 Sigma Black Belt Bishop Plant 2001 Production Engineer Clear Lake Plant 2002 Manufacturing Leader Bay City 2005 Enhancement Engineer Clear Lake, Singapore, China 2003

21. Career Path – David Trueba Process Chemist Carbon Monoxide – Clear Lake 2001 Process Chemist Acetic Acid / Vinyl Acetate – Clear Lake 2001 6 Sigma Black Belt Clear Lake Plant 2004 Performance EnhancementProgram (Purchasing) Dallas Global HQ Nov 2004 Global Commodity Leader Raw Materials July 2005

22. Conclusion • Syngas - basic building block for the industry • Raw materials & end use drive technology application • Chemical Market is challenging and mature • Drive down costs • Improve reliability • Drive Innovation

23. For more information • Visit with your Celanese Key Recruiter • Jeff Kirkpatrick-> Jrkirkpatrick@celanese.com • Look us up on campus in the Fall • Student Engineering Council Career Fair – Sept. 2006 • Informational Meeting / On-campus interviews - Oct 2006 • www.celanese.com