Hyperzone PE Process Technology Dr Gerben Meier Associate

Hyperzone PE Process Technology Dr. Gerben Meier Associate Director, Hyperzone Technology Development and Commercialization February 26, 2019 www. lyondellbasell. com Company confidential 1

Our company has developed new products and technologies that are the bedrock of the chemical industry www. lyondellbasell. com 2

Hyperzone PE technology extends our differentiation New Hyperzone PE investment for high density polyethylene (HDPE) offers resins with: § Combination of Lyondell. Basell PE and PP technical expertise § Light weighting by optimizing stiffness, stress crack resistance and strength § Enhancing sustainability by using less material for same functionality § One catalyst chemistry covering full range of HDPE Synthesis of 1 st HDPE at low pressure 1 st bimodal Hostalen Launch of benchmark PE 100 pipe grade 1 st Hostalen ACP 1 st Hyperzone PE plant www. lyondellbasell. com 3

HDPE markets have evolved due to capabilities of different catalyst technologies ■ Narrower processing window compared to Cr grades (Film, SBM) ■ Superior mechanical properties compared to Cr grades ■ Single/multimodal reactor setup ■ Excellent ESCR/impact balance ■ Very good processability ■ Multimodality is key – cascade setup ■ Excellent processability ■ Poor mechanical properties (film) ■ Excellent surface quality ■ ESCR/impact balance inferior to ZN grades (SBM) ■ Medium ESCR/impact balance ■ Single reactor setup Based on our ZN catalyst technology the Hyperzone PE process will be able to serve all markets www. lyondellbasell. com Company confidential 4

Hyperzone PE is based on 70 Years of Lyondell. Basell knowledge Lyondell. Basell Process Knowledge • Hostalen ACP • • Spherilene • • Multimodal reactors Hyperzone PE FBR reactor operation Spherizone PP • MZCR design and operation Lyondell. Basell Catalyst Knowledge • Hyperzone PE is the first process able to serve ALL HDPE markets based on using our innovative spherical ZN catalyst technology. www. lyondellbasell. com Fluid Bed Reactor (FBR) Multi-zone Circulating Reactor (MCR) 5

Hyperzone PE gas phase reactor cascade for the production of multimodal HDPE 2 Reactor Unique 3 in 2 cascade reactor setup; superior ZN product properties that can design grades Multizone Circulation (MZCR) with differential properties while maintaining excellent processability nd www. lyondellbasell. com Company confidential 6

The function of the multizone circulating reactor makes the difference Reactor 60 cycles per One circulation cycle = about 2 minutes; residence time 2 hours 2= average Multizone Circulation (MZCR) polymer sphere; very homogeneous high molecular weight copolymer nd www. lyondellbasell. com Company confidential 7

The Multi Zone Circulating Reactor (MZCR) Makes the Difference – Principle of the Barrier Condensate (>90 % propane) Dp vsolid Bimodality in molecular weight between riser and downer can be influenced by the barrier (Combination of Dp, vsolid and amount of barrier liquid) Ø High barrier efficiency low H 2 in downer strong bimodality in the MZCR www. lyondellbasell. com 8

Spherical ZN catalyst and innovative process deliver exceptional product homogeneity www. lyondellbasell. com Company confidential 9

Hyperzone PE plant will produce a broad range of products Products Applications Benefits* Gas and Water Pipes Improved toughness and crack resistance Pipe Large Blow Molding Small Blow Molding Drums and IBC Industrial and household bottles Grocery bags and can liners Film Excellent processability and improved crack resistance Excellent processability and toughness * Based on pilot plant material www. lyondellbasell. com 10

Hyperzone HY 54907 U for IBC ■ Hyperzone Large Part Blowmolding resins show excellent processing characteristics § Outstanding ESCR/FNCT performance § Diameter swell very much in line with standard monomodal chromium catalyst blow molding HDPEs § Controlled weight swell facilitating more forgiving, wider die gaps § Proven processability on typical LBM extrusion blow molding platforms § Continuous § Accumulator head A new HDPE LBM resin for IBCs and other large articles *Data based on pilot plant material www. lyondellbasell. com Company confidential 11

Hyperzone IBC HY 54907 U properties Resin impact vs stiffness Excellent impact/stiffness balance of properties Standard monomodal chrome-like processability with bimodal Ziegler properties *Data based on pilot plant material www. lyondellbasell. com Company confidential 12

Hyperzone HY 55430 for small part blow molding ■ Hyperzone small part blow molding resins show excellent processing characteristics ■ Diameter swell very much in line with standard monomodal chromium catalyst blow molding HDPEs ■ Controlled weight swell facilitating more forgiving, wider die gaps ■ Proven to processability on all typical extrusion blow molding platforms ▪ ▪ ▪ Reciprocating screw High speed wheel Continuous extrusion shuttle A new balance in HDPE small part blow molding resins *Data based on pilot plant material www. lyondellbasell. com Company confidential 13

Hyperzone SBM properties Outstanding stress crack performance Excellent bottle drop impact strength Standard monomodal chrome-like processability with bimodal ziegler properties *Data based on pilot plant material www. lyondellbasell. com Company confidential 14

160% 140% RCP % of L 4904 PENT % of L 4904 Hyperzone HY 4008 for pipe 120% 100% 80% 60% 40% 20% 0% 0% L 4904 HY 4008 Introducing a new HDPE pipe resin for water, gas and industrial applications *Data based on pilot plant material www. lyondellbasell. com 15

LYB’s Hyperzone PE Technology is timed to capture HDPE demand Capacity Additions Demand Growth HDPE LLDPE La Porte, Texas La Porte Hyperzone PE § 1. 1 billion pounds per year § Estimated investment: ~$725 million LDPE § Startup 2019 § Estimated EBITDA(2): $150 - $200 MM/year (1) Source: IHS polyethylene supply-demand data with an operating rate of 90%. World scale plant equivalents are 1. 1 billion pounds. (2) For the purpose of this slide, estimated EBITDA for Hyperzone Polyethylene is volume times average 2015 -2017 margins. www. lyondellbasell. com 16

Questions? www. lyondellbasell. com Company confidential 17