A one-dimensional ternary two-phase simulator has been extended to include improved physical properties. These physical properties -such as phase behavior, interfacial tension, residual saturations, relative permeabilities, phase viscosities, wettability, capillary pressure, adsorption and dispersion -are modeled as concentration dependent functions. Their functionality completely controls the chemical flood transport phenomena.In this paper, the influence of phase behavior, interfacial tension reduction, mobility control and wettability alteration on chemical flooding are analyzed. In a subsequent paper the influence of capillary pressure, adsorption, and physical and numerical dispersion will be presented. The main application of the simulator here presented is to describe enhanced oil recovery processes. It may also be applied to describe oil spill cleaning and groundwater contamination.