010612 jennings

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BASF Steam Cracker Day

Port Arthur, Texas, USAJune 11th - 12th, 2001

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Adding value throughgrowth and innovation

NAFTA Region Olefins Complex

President, Chemicals Division

Houston, June 12th, 2001

President, Chemicals Division

Houston, June 12th, 2001

Carl Jennings

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NAFTA Region Olefins Complex (NROC)Port Arthur, TXNAFTA Region Olefins Complex (NROC)NAFTA Region Olefins Complex (NROC)Port Arthur, TXPort Arthur, TX

Limited PartnershipLimited Partnership BASFBASF 60%60% Atofina Atofina 40%40%

BASF OperatesBASF Operates

World’s Largest Liquids Cracker World’s Largest Liquids Cracker Refinery IntegratedRefinery Integrated

Total Investment:Total Investment: $1B ($1B (exclexcl. C4/OCU). C4/OCU)

StartStart--Up:Up: 4Q4Q.. 20012001

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PropylenePropylene

BDBD

ExtractExtract

Alkylate AlkylateBenzeneBenzene

TolueneToluene

EO/EGEO/EG

StyreneStyrenePEPE

Acrylic Acrylic Acid Acid

C4C4 OxoOxoPOPO

SBSB DisDis--

persionspersions ABS ABS

PlasticsPlastics

FuelsFuels Aniline Aniline

StyreneStyrene

TDITDIFuelsFuels

SteamSteam

NaphthaNaphtha

C4Fraction

B/TExtract

Alky Alky--

lationlation

MetaMeta--

thesisthesis

EthyleneEthylene ButadieneButadiene PGO /PGO /PFOPFO

C3Fraction

C2Fraction

QuenchQuench

&&ComCom--

pressionpression

Heater Heater

ProductsProducts

BASF usesBASF uses

NROC Steam Cracker ProcessNROC Steam Cracker ProcessNROC Steam Cracker Process

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Port Arthur NROC ObjectivesPort Arthur NROC ObjectivesPort Arthur NROC Objectives

Secure Propylene and Ethylene SupplySecure Propylene and Ethylene Supply

ProfitabilityProfitability

Verbund SynergyVerbund Synergy

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Total: 16M TonsTotal: 16M Tons

North America2000 Propylene SupplyNorth AmericaNorth America2000 Propylene Supply2000 Propylene Supply

Steam CrackersSteam Crackers

FCC/SplittersFCC/Splitters

Refinery DirectRefinery Direct12%12%

39%

49%

Source: CMAISource: CMAI

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0

5

10

15

20

25

1995 1997 1999 2001 2003 2005

CapacityCapacity%AAGR 95%AAGR 95

--0505

OthersOthers 3.13.1

PropylenePropylene OxideOxide 3.13.1Oxo AlcOxo Alc.. 2.42.4 Acrylonitrile Acrylonitrile 4.64.6CumeneCumene 5.05.0


PolypropylenePolypropylene 5.75.7

MillionMillion tonstons

North AmericaPropylene Demand ForecastTotal Demand Growth = 4.9% AAGR 99-05

North AmericaNorth AmericaPropylene Demand ForecastPropylene Demand ForecastTotalTotal DemandDemand Growth = 4.9% AAGR 99Growth = 4.9% AAGR 99--0505

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0

5

10

15

20

25

30

35

40

1995 1997 1999 2001 2003 2005

CapacityCapacity%AAGR 95%AAGR 95--0505

OthersOthers 3.33.3EBZEBZ 2.72.7

EDCEDC 5.45.4EO/EGEO/EG 3.13.1


PEPE 3.73.7


North AmericaEthylene Demand ForecastTotal Demand Growth = 3.7% AAGR 99-05

North AmericaNorth AmericaEthylene Demand ForecastEthylene Demand ForecastTotalTotal DemandDemand Growth = 3.7% AAGR 99Growth = 3.7% AAGR 99--0505

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NAFTA Region Olefins ComplexKilotonsNAFTA Region Olefins ComplexNAFTA Region Olefins ComplexKilotonsKilotons

BASFBASF BASFBASF CapacityCapacity**

DemandDemand 20022002 20032003 MajorMajor UsesUses

EthyleneEthylene 590590 790790 740740 StyreneStyrene, EO, PE, EO, PE

PropylenePropylene 530530 350350 530530 Acrylics Acrylics,,

Oxo AlcoholsOxo Alcohols, PO, POButadieneButadiene 115115 ---- 9090 ABS, ABS,

SBSB DispersionsDispersions

BenzeneBenzene 800800 6666 6666 Aniline Aniline,, StyreneStyreneTolueneToluene 115115 3636 3636 TDITDI

*Includes 60% NROC share*Includes 60% NROC shareplus 238KT ethylene/15KT propylene from Williams JV. Metathesisplus 238KT ethylene/15KT propylene from Williams JV. Metathesis onon--line in 2003.line in 2003.

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Total: 31M TonsTotal: 31M Tons

EthaneEthane


OthersOthers

Gas OilGas Oil

NaphthaNaphtha

ButaneButane

PropanePropane

55%

22%

3%

15%

4%

1%

North America2000 Ethylene Production by FeedstockNorth AmericaNorth America2000 Ethylene Production by Feedstock2000 Ethylene Production by Feedstock

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0

5

10

15

20

1990 1995 2000 2005


cppcpp

NaphthaNaphtha

EthaneEthane

Ethylene Net Transaction Cash Margins(Ethane vs Naphtha Cracking)Ethylene Net TransactionEthylene Net Transaction CashCash MarginsMargins((Ethane vsEthane vs NaphthaNaphtha CrackingCracking))

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0

1

2

3

4

5

6

7

8

9

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Capacity additions slow after Capacity additions slow after 20022002

Asia/Pacific Asia Asia/Pacific/Pacific



PotentialPotential for for tight conditionstight conditions

toto developdevelop

North & South AmericaNorth & South AmericaNorth & South America

Middle East & AfricaMiddleMiddle East &East & Africa Africa

Western & Eastern Europe,former Soviet Union

Western & Eastern Europe,Western & Eastern Europe,former Sovietformer Soviet UnionUnion

Assume 36 to 40 Months for Constructionof New World-Scale Ethylene Facility

Assume 36 to 40 Months for Construction Assume 36 to 40 Months for Constructionof New Worldof New World--Scale Ethylene FacilityScale Ethylene Facili ty

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0

50

100

150

200

250

300

350

400

450

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

0

2

46

8

10

12

14

16

18

20


Dollars per tonDollars per ton

USUS ContractContract

Cents perCents per poundpound

West EuropaWest Europa

ContractContract

SESE Asia Asia--CFRCFR

ReRe--Investment LevelInvestment Level Ethylene EconomicsEthylene EconomicsCashCash MarginMargin Range = $220Range = $220 -- $ 265 per Ton$ 265 per Ton

World Ethylene Cash MarginsWorldWorld EthyleneEthylene CashCash MarginsMargins

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MontBelviewMontBelview

Geismar Geismar

FreeportFreeport

New OrleansNew OrleansPort Arthur Port Arthur

HoustonHouston

55

miles

55

miles

50miles50miles

275 miles275 miles

TexasTexas LouisianaLouisiana

BaytownBaytown

NAFTA Region Olefins ComplexOlefins Pipeline ConnectionsNAFTA Region Olefins ComplexNAFTA Region Olefins ComplexOlefins Pipeline ConnectionsOlefins Pipeline Connections

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Toluene

StraightStraightNaphthaNaphtha

ReformateReformateXylene

Benzene

HydrogenHydrogenJet/Kerosene

Fuel Oil

GasolineVGOVGO

R. Propylene

AGO AGO

Crude Oil

Ethylene

Propylene

Butadiene

Benzene

Toluene

Fuel/FlareFuel/Flare

Fuel/FlareFuel/Flare

FCC GasFCC Gas

Naphtha

PrimaryPrimaryProductsProducts

SecondarySecondaryProductsProducts

ByBy--

ProductsProducts

Hydrogen

Pyrolysis F.O.

C8 + Fraction

C4 Raffinate

RefineryRefineryHydrotreatingHydrotreating

HeavyFeed

SteamCracker

Atmospher ic Atmospher ic

andandVacuumVacuum

DistillationDistillation

BTXBTX Extr Extr ..

Distillate ProcessingDistillate Processingand Blending Pooland Blending Pool

MoGasMoGas ProcessingProcessingand Blending Pooland Blending Pool

Reformer Reformer

FluidFluidCatalyticCatalyticCracker Cracker

Stand Alone Refinery & CrackerChemicals DivisionStand Alone Refinery & CrackerStand Alone Refinery & CrackerChemicals DivisionChemicals Division

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Toluene

ReformateReformateXylene

Benzene

Jet/Kerosene

Fuel Oil

Gasoline

R. Propylene

Crude Oil

Ethylene

Propylene

Butadiene

Benzene

Toluene

FCC GasFCC Gas

Naphtha

HydrogenHydrogen

PyrolysisPyrolysis F.O.F.O.

CC88 + Fraction+ Fraction

Con-

densate

CC44 RaffinateRaffinate

RefineryRefineryHydrotreatingHydrotreating

A r o m

a t i c N a p h t h a

A r o m

a t i c N a p h t h a

J e t F u e l

J e t F u e l

D i e s

e l F u e l

D i e s

e l F u e l

G a s

O i l

G a s

O i l

C 4 C 4 R a f f i n a t e

R a f f i n a t e

C 8 + F r a c t i o n

C 8 + F r a c t i o n

P y r o l y s i s

P y r o l y s i s F . O .

F . O .

H y d r o g e n

H y d r o g e n

ParaffinicParaffinicNaphthaNaphtha

ParaffinicParaffinicNaphthaNaphtha

Heavy FeedHeavy FeedSteamSteam

Cracker Cracker with Olefinswith OlefinsConversionConversion

UnitUnit

Reformer Reformer BTXBTX Extr Extr ..

Distillate ProcessingDistillate Processingand Blending Pooland Blending Pool

MoGasMoGas ProcessingProcessingand Blending Pooland Blending Pool

FluidFluidCatalyticCatalyticCracker Cracker

Atmospher ic Atmospher ic

andandVacuumVacuum

DistillationDistillation

CondensateCondensateSplitter Splitter

Integrated Refinery & CrackerChemicals DivisionIntegrated Refinery & CrackerIntegrated Refinery & CrackerChemicals DivisionChemicals Division

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Refinery - Steam Cracker Integrationin the NAFTA RegionRefineryRefinery -- Steam Cracker IntegrationSteam Cracker Integrationin the NAFTA Regionin the NAFTA Region

48 Refineries48 Refineries

40 Steam Crackers40 Steam Crackers

8 Refinery8 Refinery -- Integrated Steam CrackersIntegrated Steam Crackers

– – operated by:operated by: Shell ChemicalShell Chemical

BASF FINABASF FINA

ExxonMobilExxonMobil

Equistar Equistar

bpbp


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PropylenePropylene

BDBD

ExtractExtract

Alkylate AlkylateBenzeneBenzene

TolueneToluene

EO/EGEO/EGStyreneStyrene

PEPE

Acrylic Acrylic Acid Acid

C4C4 OxoOxoPOPO

SBSB DisDis--persionspersions

ABS ABSPlasticsPlastics

FuelsFuels Aniline AnilineStyreneStyrene

TDITDIFuelsFuels

SteamSteam

NaphthaNaphtha

C4Fraction

B/TExtract

Alky Alky--

lationlation

MetaMeta--

thesisthesis

EthyleneEthylene ButadieneButadiene PGO /PGO /PFOPFO

C3Fraction

C2Fraction

QuenchQuench

&&ComCom--pressionpression

Heater Heater

ProductsProducts

BASF usesBASF uses

NROC Steam Cracker ProcessNROC Steam Cracker ProcessNROC Steam Cracker Process

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NROC C4 ConceptNROC C4 ConceptNROC C4 Concept

SabinaSabina JVJV

BD ExtractionBD Extraction

Branched AlkylateBranched Alkylate

Metathesis (OCU)Metathesis (OCU)

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SABINA C4 JVPort Arthur, TXSABINA CSABINA C44 JVJVPort Arthur, TXPort Arthur, TX

LOI 7/99:LOI 7/99:

ShellShell 60%60% BASFBASF 24%24% FinaFina 16%16%

CapacityCapacity 400 Kilotons400 Kilotons

StartStart--upup Mid 2003Mid 2003

BASF operatesBASF operates

BASF need:BASF need: ABS ABS SB dispersionsSB dispersions

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SABINA JVSABINA JV(BASF/Shell/FINA)(BASF/Shell/FINA)

C4 BASF/Fina

Port Arthur

C4 BASF/Fina

Port Arthur

C4 ShellDeer Park

C4 ShellDeer Park

BASF FINABASF FINAPetrochemicals LPPetrochemicals LP

(BASF/FINA)(BASF/FINA)

nn--ButeneButeneii--ButeneButeneBDBD

BDExtraction

BDExtraction

ALKUnit

ALKUnit

400KT

Butadiene

400KT

Butadiene

300KT

Branched Alk

300KT

Branched Alk

OCU(Metathesis)

OCU(Metathesis)

Cracker Feed

Cracker Feed

300KT

Propylene

300KT

Propylene

C4 Plan - Port Arthur, TXCC44 PlanPlan -- Port Arthur, TXPort Arthur, TX

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* Includes Shell C* Includes Shell C44 feedstock.feedstock.

NROC CapacitiesKilotonsNROC CapacitiesNROC CapacitiesKilotonsKilotons

WithoutWithout CC44 / OCU/ OCU WithWith CC44 / OCU/ OCU

TotalTotal BASFBASF TotalTotal BASFBASF

EthyleneEthylene 920920 550550 830830 500500

PropylenePropylene 550550 330330 860860 515515

BenzeneBenzene 110110 6666 110110 6666

TolueneToluene 6060 3636 6060 3636

ButadieneButadiene ---- ---- 400*400* 9090

Alkylate Alkylate ---- ---- 300*300* 7575

FuelsFuels//Other Other 190190 114114 190190 114114

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NROC Steam Cracker: Value CreationNROC Steam Cracker: Value CreationNROC Steam Cracker: Value Creation

Refinery IntegrationRefinery Integration

Economy of ScaleEconomy of Scale

Feedstock OptimizationFeedstock Optimization

MetathesisMetathesis

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NROC - A Winner For BASFNROCNROC -- A Winner For BASF A Winner For BASF

Innovative ConceptInnovative Concept

Exceptional PartnerExceptional Partner -- Atofina Atofina

Great ContractorGreat Contractor -- ABB Lummus ABB Lummus

Tremendous Community SupportTremendous Community Support -- Port Arthur Port Arthur

Platform for Sustainable and Profitable GrowthPlatform for Sustainable and Profitable Growthin the NAFTA Regionin the NAFTA Region

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Disclaimer Disclaimer Disclaimer

This presentation contains forwardThis presentation contains forward--looking statements under the Privatelooking statements under the PrivateSecurities Litigation Reform Act of 1995. These statements are bSecurities Litigation Reform Act of 1995. These statements are based onased on

current expectations, estimates and projections of BASF managemecurrent expectations, estimates and projections of BASF management andnt and

currently available information. They are not guarantees of futucurrently available information. They are not guarantees of futurere

performance, involve certain risks and uncertainties that are diperformance, involve certain risks and uncertainties that are difficult tofficult to

predict and are based upon assumptions as to future events thatpredict and are based upon assumptions as to future events that may notmay not

prove to be accurate.prove to be accurate.

Many factors could cause the actual results, performance or achiMany factors could cause the actual results, performance or achievementsevements

of BASF to be materially different from those that may be expresof BASF to be materially different from those that may be expressed orsed orimplied by such statements. Such factors include those discussedimplied by such statements. Such factors include those discussed inin

BASF’s Form 20BASF’s Form 20--F filed with the Securities and Exchange Commission.F filed with the Securities and Exchange Commission.

We do not assume any obligation to update the forwardWe do not assume any obligation to update the forward--lookinglooking

statements contained in this report.statements contained in this report.27

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