ABB AND SINOPEC CORP. COOPERATE ON ETHYLENE RECOVERY TECHNOLOGY

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ABB AND SINOPEC CORP. COOPERATE ON ETHYLENE RECOVERY TECHNOLOGY
05 February 2002 - ABB Automation Technologies

ABB Lummus Global and China Petroleum & Chemical Corp. (SINOPEC Corp.) have signed a cooperation agreement creating a strategic alliance to develop and market new recovery technology for ethylene plants. The collaboration merges the extensive capabilities and experiences of both companies in the area of recovery technology.

ABB Lummus Global and SINOPEC Corp. will license the technology worldwide, for both grassroots and revamp projects through ABB Lummus Global.
ABB Lummus Global will contribute front-end and back-end selective hydrogenation utilizing CDHydro(r) hydrogenation technology, developed by its joint venture company CDTECH; tertiary refrigeration; its low pressure chilling train; and Olefins Conversion Technology to self-metathesize butenes to produce hexene-1. SINOPEC Corp.'s contributions include condensing fractionation towers, high capacity trays, high flux tubes, and low temperature arsenic removal from liquid feeds.

A semi-works unit at SINOPEC's Tianjin ethylene facility will demonstrate the CDHydro hydrogenation and self-metathesis technologies. Start-up of this facility is slated for the first quarter of 2003.

The new recovery technology represents the most significant reconfiguration of the ethylene plant flow sheet in over 30 years, adding new chemistries to ease purification and improve light olefin yields. When fully applied, the new recovery technology will reduce the number of compressor/turbine casings by 40%, eliminate over 20% of the equipment piece count, reduce compressor power by over 10%, and improve operating margins by up to 30%.

In 1999, ABB Lummus Global and the Technology Development Division of SINOPEC Corp. formed a strategic alliance to develop and market new ethylene furnace technology. The alliance has since been awarded 12 furnaces, with a total ethylene capacity of 1.2 million metric tons per annum. Earlier this year, the first furnaces designed by the alliance were successfully commissioned in record time at the Beijing Yanshan Petrochemical Co. ethylene complex in Beijing, China. The joint technology heaters provide state-of-the-art performance including high olefins yield, long run length and high thermal efficiency, and maximize the supply of indigenous technology and equipment.

ABB Lummus Global enjoys a very long history of providing petrochemical and polymer technology to China, extending back to 1973 with the award of the 300,000 MTA ethylene plant at Yanshan. Today, approximately 65% of the total ethylene throughput in China is produced in plants designed by ABB Lummus Global.

The ABB Oil, Gas and Petrochemicals Division focuses on systems, products and services for oil and gas exploration and development, refineries and petrochemical plants worldwide. The division employs approximately 13,000 people. ABB (www.abb.com) is a global leader in power and automation technologies that enables utility and industry customers to improve their performance while lowering their environmental impact. ABB has 160,000 employees in more than 100 countries.

http://www.abb.com

About: ABB Automation Technologies
ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs around 105,000 people.
ABB has streamlined its divisional structure to focus on two core businesses: Power Technologies and Automation Technologies. The Oil, Gas and Petrochemicals division is slated for divestment.

ABB Power Technologies serves electric, gas and water utilities as well as industrial and commercial customers, with a broad range of products, systems and services for power transmission, distribution and automation.

ABB Automation Technologies blends a robust product and service portfolio with end-user expertise and global presence to deliver solutions for control, motion, protection, and plant integration across the full range of process and utility industries.

In addition to ABB's automation activities directed at the oil and gas industries, ABB Lummus Global continues to design and supply production facilities, refineries and petrochemical plants.

ABB's former Upstream business, divested in July 2004, is now part of Vetco International (www.vetco.com).

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