METHANOL IN OUR LIVES Egypt Project 1 3

METHANOL IN OUR LIVES

Egypt Project 1. 3 million tonne plant in Damietta, Egypt DAMIETTA • EMethanex JV Methanex (60%) Egyptian Government JV Partners ECHEM & Apicorp (40%) • Methanex will market 100% Startup expected in 1 H 2010 EMethanex Plant Site, July 2009 Mubarak Gas and Petrochemicals Complex, Damietta

Methanex’s Global Operations • 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 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

What is Methanol ? METHANOL (Methyl Alcohol) 8 Clear, colorless liquid 8 Made up of carbon, hydrogen and oxygen Chemical formula CH 3 OH

How is Methanol produced ?

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

The Methanol House

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

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

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

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

Methanol Handling Ignition!

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

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

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.

EMethanex Plant Layout

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

Methanol Handling How do we detect Methanol? Ø Detector tubes Ø Electronic Instruments Ø Absorbent tubes Ø Biological Monitoring

Process Side: Safe Methanol Handling § Closed sampling / dip / temperature measurement on the Methanol Storage Tanks § Routine samples using closed cylinders § Tandem seals on all methanol pumps Safe Methanol Handling § Flame detectors and sprinklers on all methanol protection pumps Personnel and Environmental Process side § 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

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

Plant Fire Fighting System Fire Water / Foam System. 1. 2. 3. 4. 5. 6. Filtered Water Tank used as fire water supply Fire Water Jockey pumps 1 P-4401 A/B, Diesel pumps 1 P-4402 A/B/C/D. Fire Water Jockey / Diesel pumps P&ID. WATER / FOAM DELUGE SYSTEM. Water Deluge SYSTEM. Heat detectors and Gas detectors 1. Dry Chemical Powder System 2. 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

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

Water / Foam Deluge System

Water / Foam level operated Monitors Tank Area Dike Protection

Foam monitor system jetty area

QUESTIONS?