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METHANOL IN OUR LIVES

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  1. METHANOL IN OUR LIVES

  2. Egypt Project 1.3 million tonne plant in Damietta, Egypt EMethanex JV Methanex (60%) Egyptian Government JV Partners ECHEM & Apicorp (40%) Methanex will market 100% Startup expected in 1H 2010 DAMIETTA EMethanex Plant Site, July 2009 Mubarak Gas and Petrochemicals Complex, Damietta

  3. Production Capacity (millions of tonnes) • Chile: 3.8 • Trinidad: 2.1 • New Zealand: 0.5-1.4 • Egypt (60%): 0.8 (2010) • 2008 Sales ~ 15% of global demand • 2008 Revenues: US$2.3 Billion • Low-cost Waterfront Shipping Subsidiary: ~19 vessels • Employees: ~825 • Shares listed: NASDAQ, Toronto, Santiago Methanex’s Global Operations

  4. Methanex Corporation Overview • Committed to Responsible Care® • 21 employees around the world dedicated to RC activities • Commercial Offices: • Hong Kong, Brussels, Dallas, Santiago • Tokyo, Shanghai, Seoul, Billingham, Dubai • Shipping Subsidiary: Waterfront Shipping • Manage fleet of ~20 vessels

  5. What is Methanol ? METHANOL (Methyl Alcohol) • Clear, colorless liquid • Made up of carbon, hydrogen and oxygen Chemical formula CH3OH

  6. How is Methanol produced ?

  7. DME (dimethyl-ether) Fuel Blending Where is Methanol used ? Methanol is... Traditional Uses (Mature Markets) Emerging Energy Uses (High Growth Potential Markets) • Produced from natural gas and coal • Diversified end uses Formaldehyde Acetic Acid MDF, Plywood Fleece, Adhesives, Paints Dimethyl Methyl Chloride Terephthalate Silicones Recyclable plastic bottles

  8. The Methanol House

  9. Properties of Methanol • Flammable, burns with clear, low heat flame • Difficult to see during daylight • Soluble in water, miscible in alcohol, ether and to most organic solvents. • Low solubility in fats and oils. • Concentrations of methanol in water above 25% are flammable • Flash point (°C): 11 -12 • Lower Explosive Limit (LEL) (%): 6 • Upper Explosive Limit (UEL) (%): 36 • Autoignition Temp (°C): 385 • Boiling Range(°C): 63.9 – 65

  10. Properties of Methanol • Melting Range (°C): -97.8 • Specific gravity (water=1): 0.79 @ 20°C • Biodegrades quickly in small amounts • Readily absorbed into the body • Poisonous in liquid or vapours state • Toxic: danger of very serious irreversible effects through inhalation, contact with skin and if swallowed

  11. Methanol Handling Remember Methanol is: Toxic Flamable NFPA Methanol 3: Risk of flammability: You can ignite at ambient temperature 1:Risks to health: Slightly dangerous 0::Risk of reactivity: Stable

  12. Methanol Handling Full-scale Pool Fire test carried out at Spadeadam test site in Cumbria, UK on 9 March 1993 Flame geometry and thermal radiation from methanol pool fires in 5.85 metre diameter bunds. Pool being filled

  13. Methanol Handling Ignition!

  14. Methanol Handling Colorless flame - just a heat haze. Wind speed was 4.4 metres/second (10 mph) ambient temperature was 4.5°C, pressure 981 millibar

  15. Methanol Handling Safety precautions • No smoking • Vehicular access • Intrinsically safe equipment • Grounding all equipment, pumps, tanks, pipes,vessels, filters

  16. Methanol Handling Fire Fighting/Explosion Hazard • May be violently or explosively reactive • Severe fire hazard when exposed to heat, flame and/or oxidizers • Vapor may travel a considerable distance to source of ignition • Extinguishing Media • Alcohol stable foam • Dry chemical powder • Carbon dioxide • Water spray or fog - Large fires only.

  17. EMethanex Plant Layout

  18. FIRE FIGHTING SYSTEM HYDRANT MAIN RING Updated: 14/01/2010 V-064 V-040 V-039 V-036 V-035 V-038 V-037 H-028 H-027 H-026 Chain & lock V-063 V-065 V-041 H-025 1TK-2602B 1TK-2602A 2 Blinded 4” end flange to Lever Operator V-034 H-029 Valve Close Position V-00 H-030 H-024 14” Blinded Valve Open Position M-006 V-00 V-066 V-067 1TK-2601B 1TK-2601A 1TK-2501 Fire Hydrant 1P-2602 1P-2603 H-00 H-023 M-008 V-045 Blinded Lever Operator Monitor V-047 M-007 V-060 V-044 V-059 V-046 V-033 V-032 Process Unit 1 V-031 V-048 1SU-5504 H-031 M-009 M-005 Preparing temporary 12`` to 6``spool which will using for flushing direct to field H-022 Flushed line and under fire header Pressure M-004 M-017 M-010 Process Unit 1 V-049 V-029 6” blind before Deluge system of Oil skid for Syn. Gas compressor Valve End Blinded V-042 V-058 V-00 M-003 H-023 & H-024 Disconnected H-023 & H-024 Disconnected 3 Blinded 6” end flange V-028 V-057 V-050 Flare Unit M-016 Reformer Fire Water Monitor V-043 V-051 H-020 M-000 M-011 M-002 ECHEM Area M-002 has leak from the flange to check it you have to open the head of header and its Sperry nozzle is malefaction M-015 M-014 V-052 H-019 V-056 ASU-Unit 1 M-001 Storm Water Pond 1P-5507/8 V-024 M-012 4” Blinded end flange V-053 V-027 V-055 V-054 V-061 V-017 V-018 V-020 V-021 V-022 V-023 V-019 V-015 M-013 H-009 H-013 H-014 Cooling Tower V-016 Aux Boiler A/B The Port Fence H-018 Turbo Gen. A/B H-010 Chain & lock H-015 H-007 There are two had wheel is broken H-021 V-030 V-014 V-00 V-00 V-013 H-016 V-006 V-025 Jockey Pump Run at 175 psi Main Sub- Station Filtered Tank Demi Tank V-026 V-005 H-006 Potable Tank V-00 V-00 H-001 H-012 H-017 Control Room V-002 V-001 V-003 V-004 Water Treatment Metering Station H-011 V-009 H-005 H-002 H-004 H-003 V-008 There is one hand wheel is broken V-012 V-011 V-010 V-062 V-007 H-032 H-033 H-032&033 Not Connected H-032 & H-033 Not Connected

  19. Methanol Handling How do we detect Methanol? • Detector tubes • Electronic Instruments • Absorbent tubes • Biological Monitoring

  20. Process Side: Safe Methanol Handling Safe Methanol HandlingPersonnel and Environmental protectionProcess side • Closed sampling / dip / temperature measurement on the Methanol Storage Tanks • Routine samples using closed cylinders • Tandem seals on all methanol pumps • Flame detectors and sprinklers on all methanol pumps • Closed methanol drainage system • AAAF foam for methanol fire fighting • Methanol tanks fully bunded and controlled drainage • Methanol vapors recovery system on all methanol tanks and from the ships

  21. Process Side: Safe Methanol Handling • Methanol Ship Loading • Loading arms provided with an Emergency Release System • Spill and drains containment pumped back to the plant • Foam-water monitors • Grounding and interlock, and others • Methanol Truck Loading • Automatic stop logic if high truck level • Foam-water monitors • Dedicated tanks • Safety induction to the driver and certification • Grounding and interlock • Dip loading pipe , and others

  22. Plant Fire Fighting System Fire Water / Foam System. Filtered Water Tank used as fire water supply Fire Water Jockey pumps 1P-4401 A/B, Diesel pumps 1P-4402 A/B/C/D. Fire Water Jockey / Diesel pumps P&ID. WATER / FOAM DELUGE SYSTEM. Water Deluge SYSTEM. Heat detectors and Gas detectors Dry Chemical Powder System Fire truck (water, foam, dry chemical) and portable Extinguishers of various types at strategic locations • Firewater is supplied to the plant via a ring main system of piping. The northern portion of the ring main protects the methanol storage tank area and the southern portion of the ring main protects the methanol production area, utilities, and buildings. • Firewater supply is from the Filtered Water Tank

  23. Water / Foam Deluge System Methanol Product Tanks 1TK-2602A/B

  24. Water / Foam Deluge System

  25. Water / Foam level operated MonitorsTank Area Dike Protection

  26. Foam monitor system jetty area

  27. QUESTIONS?