Gas to Chemicals

India Chem 2002: Gas To Chemicals

Gas To ChemicalsGas To Chemicals

New Delhi, September 18-21, 2002New Delhi, September 18-21, 2002

Jens WagnerJens Wagner Technologically Advanced Natural Gas Monetization:

Opportunities for Chemicals & Petrochemicals


Agenda

Gas To Chemicals - Drivers

MegaSyn®-Technology

MegaMethanol®-Technology

Gas-Based Petrochemistry

Gas-Based Refinery


We are the leading engineering contractor

in the field of oil/gas/chemicals,

customer oriented

and focussed on proprietary technologies

and exclusive licenses for growth markets

like gas-to-chemicals,

and their global, professional realisation

from a single source.

Vision Lurgi Oel · Gas· Chemie


10

68

16

78

263

98

41

61

0 50 100 150 200 250 300

North America

S&C America

Western Europe

Eastern Europe & FSU

Middle East

Africa

Far East & Oceania

World

years

7,1%

7,8%

34,6%

38,1%

3,0%

4,3%

5,0%

% of globalreserves

Source: Energy Information Administration (EAI): ”International Natural Gas Information” 14 Feb 2001, http://www.eia.doe.gov

Driver INatural Gas: Reserves-To-Production Ratio


3,700 billion ft³ of natural gas are flared per year

World production of ammonia

4x World production of methanol

Source: Energy Information Administration (EIA): ”International Natural Gas Information” 14 Feb 2001, http://www.eia.doe.gov

Driver II


Driver III


WORLD POLYPROPYLENE PRICE COMPARISONCurrent Dollars

0

200

400

600

800

1000

1200

1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020

USGC-Contract USGC-Spot

West Europe-Contract SEA ContractSEA Spot

Forecast

Dollar per Ton

Source: CMAI

Driver III


For years Lurgi Oel · Gas · Chemie GmbH is one of the mayor players in the field of Syngas Generation and Synthesis Technologies. Based on our

huge experience,

expertise, and

success

the Gas-to-Chemicals (GTC) route is a consequent further development and application of our core technologies and know-how.

Driver IV

Mossgas Fischer-Tropsch Plant


Lurgi Mega Concept -

SYNGASCO + H2

MethanolFT-

Fischer TropschProducts

DME

Hydrogen Olefins

PolypropyleneAcrylonitrilPolyethylene

Ethylene-Glycol-Olefins

Diesel-Additives

Formaldehyd

MTBE

Acetic Acid

Fuel

Diesel

LiquidsEnergy-Production

Fuel Cell,“GreenFuels“

Clean Fuels,Lubricants, -Olefins

„Stranded“Gas

Production of many high-value products

Urea

Ammonia

Basis of a gas-based Chemicals- and Refinery Industry


How do You want to produce Your Syngas?

ASU

5 x 1000 Tubes

1.5 Mio Nm³/h =560 Mio SCF/d

Syngas


Syngas


Syngas

ASU


0

100

200

300

400

500

0 0,3 0,6 0,9 1,2 1,5 1,8

SR

CR

ATR

relativecost

106 Nm3/h syngas

Gas to Syngas (MegaSynTM) - Investment Cost Comparison


Process Characteristics:

low S/C ratio 1.5 - 0.5 mol/mol high CO selectivity low CO2 emission

outlet temperature 900 - 1050 °C low methane slip close approach to equilibrium

pressure: 40 bar commercially proven(up to 70 bar possible)

single train capacity500,000 m3 syngas /hr under construction

Autothermal Reformer


Combined Reformer, Mossgas, South Africa


Gas to Chemicals Processing Routes

MegaSyn®

Fischer Tropsch

Synthesis

Mega-Methanol®

Upgrading

MTO

MTD

MTH

MtSynfuels

Acrylic Acid

Diesel

Gasoline

LPG

Fuel Gas

Waxes/Lube Oil

Power

Fuel Cells

Chemicals (MTBE, Acetic Acid, Formaldehyde)

Diesel/Gasoline

Propylene/Polypropylene

Acrylic Acid/Acrylates

Ethylene/Propylene

Fuel (DME)

Hydrogen

MTP®

Natural Gas /

Associated Gas

Megammonia® Ammonia/Urea/Fertilizer

MtPower


Lurgi’s LP-Methanol Technology Milestones

1969 First LP-Methanol Catalyst Test

1970 Cooperation with Süd-Chemie for Catalyst Manufacturer

1970 Operation of a 100 Tubes-Reactor Demonstration Unit

1972 First 3 LP-Methanol Plants in Operation

1997 MegaMethanolTM Concept Published

2001 37 LP-Methanol Plants including two awarded contracts for

MegaMethanolTM plants


Simplified Diagram of Lurgi‘s MegaMethanol® Technology

Desulphur-ization

Pre-Reforming

AutothermalReforming

MethanolDistillation

Air-Separation

PureMethanol

Oxygen

NaturalGas

PSA

MethanolSynthesis

Air

• improved gasification

• high energy efficiency for MeOH synthesis

• low investment costs

• large single-train capacity

methanol production cost of less than 50 $/t !

Syngas

Purge Gas

Crude Methanol

Steam

BoilerFeedWater

Gas-CooledReactor

Water-CooledReactor


Methanol Technology Competitive Situation

Market Share

Lurgi 27%

MGC,Other12%

ICI 61%

1969 - 1992 1992 - 2001

Lurgi 55%

MGC,Other20%ICI 25%


Dimethyl Ether (DME) -Alternative to Conventional Diesel Fuel

Excellent transportation fuel (“better diesel”)

Very low emission levels

Clean and efficient power generation Similar properties as LPG (storage, transport)

DME: Energy Carrier of the Future!(see www.aboutdme.org)


DME Production by Methanol Dehydration

DMEReaction

DMEDistillation

DMEProduct

Stabilised MeOH

H2ORecycle

MeOHRecycle

WasteWater

Off-gas

SyngasProduction


Reactor: Adiabatic Fixed Bed Reactor

High Conversion Rate

Purity: According to Requirement

Highly efficient Heat Integration Systems,resulting in low Utility Requirement

Low Utility Consumption

Zero Emission

Lurgi DME Process Features


Lurgi DME - Economics

MegaMethanol® & Dehydration Plant

DME production 5000 t/d

Natural gas demand 42.9 MMBtu/tDME28.5

MMBtu/tMeOH

Total fixed cost (EPC) 415 MMUS$

Production Cost 93.0 US$/tDME

= 3.4 $/MMBtu

Diesel fuel (for comparison) 4.8 - 6.1 $/MMBtu

based on NG price = 0.5 US$/MMBtu and both, depreciation & ROI 10% of total fixed cost


MTP 1 MTP 2 MTP 3

Gasoline

Fuel Gas

ProcessWater

DMEPre-Reactor

ProductConditioning

Propylene

LPG

Water Recycle

Olefin Recycle

Methanol

Reactor Stages

MTP® - Simplified Process Flow Diagram


Propylene production only

tailor-made, proprietary zeolite catalyst

Fixed-bed reactors

Low coking of catalyst results in low number of regeneration cycles

Discontinuous in-situ regeneration at reaction temperature

Proven process elements

Catalyst commercially available

MTP® - Technical Highlights


PROCESS More than 4000 operating hours of pilot plant in Frankfurt Demo unit in Norway started 01/ 2002, today about 3000

operating hours, more than 8000 scheduled Optimisation of process flow sheet for commercial plant

finished

CATALYST catalyst development completed by catalyst supplier catalyst is commercially manufactured and available

MTP® Technology Status


SyngasPlant

Poly-propylene

Plant

Propylene Plant (MTP)

Methanol Plant

Natural

Gas

1.7 Mio t/aMethanol

3.8 Mio Nm³/d 520 000 t/aPropylene

520 000 t/aPolypropylen

e

12.3 Mio Nm³/dSyngas

Case Study B, Blockflow Diagram

143 000 t/aGasoline

936 000 t/aWater

MTP Economics I


MTP Economics II

Methanol MTP PP Capacity MTY 1,700,000 520,000 520,000

Investment Cost EPC Mio US$ 350 215 165Owner‘s Cost incl. Capitalised Interest Mio US$ 70 43 33

Feed Cost US$ Natural Gas Methanol Propylene 0,5 $/MMBtu 43 $/t 174 $/t

Production Cost US$/t 42.9 210.1 261.0- Raw Materials US$/t 14.4 150.3 212.8- Utilities US$/t 1.6 5.6 6.8- Operation & Maintenance US$/t 5.6 11.3 8.6- Plant OVDH & Insurance US$/t 6.0 12.1 9.2- Depreciation US$/t 15.3 30.8 23.6

Credit for by-product Naphtha US$/t - - 35.7 - Cost of Product US$/t 43 174 261

Production Cost, Case Study B: Integrated MegaMeOH/MTP/PP Complex


MTP Economics III

ROI, Case Study B: Integrated MegaMeOH / MTP / PP Complex

Methanol - MTP - PP

Investment Cost EPC Mio US$ 730 Owner‘s Cost incl. Capitalised Interest Mio US$ 146

Feed Stock Cost US$ Natural Gas 0,5 $/MMBtu

Production Cost US$/t 154.3- Raw Materials US$/t 49.7- Utilities US$/t 9.1- Operation & Maintenance US$/t 19.9- Plant OVHD & Insurance US$/t 21.2- Depreciation US$/t 54.4

Revenues Mio US$ 356.6- Methanol (90 US$/t) US$/t - - Naphtha (130 US$/t) US$/t 18.6- Polypropylene (650 US$/t) US$/t 338.0

Return on Investment , ROI1) % 23.1

1) ROI Estimate based on Chem Systems Methodology


MeOH-Plant

PP-Plant

Natural Gas“Methane”

SyngasCO + H2

Methanol Propylene Polypropylene

Oxoalcohol-Plant

Acrylic AcidAcrylic AcidPlant

2-EHOH Acryl. Plant

Bu-Acryl. Plant

2EHAC BuAc

Acrylic Acid

BuOH

Propylene Propylene

Acrylic Acid2-EHOH

Butylacrylate2-Ethylhexylacrylate

Gas-based Petrochemistry

MTP® Plant


Gas Refinery via Methanol - Lurgi’s MtSynfuel® (MTS)

DiscontinousIn-situ CatalystRegeneration

MTP COD ProductSeparation

Distillate4.290 t/d

Gasoline1860 t/d

Light Ends420 t/d

Gasoline

Water Recycle

Hydrocarbon Recycle

Hydrocarbon Recycle

Methanol15.000 t/d


Comparison Lurgi MTS Route - FT Synthesis I

Product Slate Lurgi Route FT Synthesis

Naphtha : Diesel (max.) 1 : 4 1 : 2.3 – 1 : 5.4

Product Properties Lurgi Route3) FT Synthesis3)

Spec (Europe from 2005)Gasoline-Aromatics-Benzene-Sulphur-Olefins-RON 2)

-MON 2)

vol.%vol.%wppmvol.%

max.max.max.max.

351

50/10 1)

1891/95/98

82.5/85/88

3<< 1

0448075

< 1<< 1

0> 30< 40< 40

Diesel-Polyaromatics-Sulphur-Cetane No.

vol.%wppm

max.max.min.

1150/10 1)

51

< 1< 155

< 1< 5

> 70

1) Diesel with 10 wppm sulphur has to be available on the market2) RON / MON for Regular Gasoline / Euro-Super / Super-Plus3) Properties before naphtha upgrading


Comparison Lurgi MTS Route - FT Synthesis II

Cost of Production Estimate1)

Plant Location: Middle East

Plant Capacity: 50,000 barrels per day products

Natural Gas Price: 0.50 US$ / MMBtu

Depreciation: 10 % for ISBL / 5 % for OSBL

Return on Investment: 10 %

Total Capital Investment: Includes Total Plant Capital (ISBL+OSBL) plus 20 %for Other Project Cost, year 2000

Cost of Production: Includes depreciation and 10 % ROI

Product Market Prices: Year 2000, adjusted to shipping costs from Middle East and applicable tariffs for the considered

regions

1) Basis: Chem Systems, 2001


Comparison Lurgi MTS Route - FT Synthesis IIICost of Production Estimate

Lurgi MtSynfuels existing FT1)

Total Capital Investment [MM $]-Total Plant Capital [$/bpd]

1.45224,192

1.67127,856

NG to Process (LHV) [$/bbl][MMBtu/bbl]

Cat. & Chemicals [$/bbl]

Utilities [$/bbl]

3.767.51

1.45

0.28

4.228.44

1.53

0.8

Cost of Production + ROI [$/bbl] 24.88 28.68

Market Prices 2)

- Gasoline [$/bbl]- Diesel [$/bbl]

Western Europe34.7528.88

US Gulf Coast31.4226.51

Japan29.7033.21

1) Chem Systems, 20012) Corresponding Crude Oil Price: about 21 $/bbl


Conclusions - Future PerspectivesThe challenge of abundant NG is answered.

MegaSyn® and MegaMethanol® - Lurgi’s Mega Concept opens

new routes of gas monetisation:

• Dimethyl ether (DME) can be produced at attractive coststo become an economical fuel

• Propylene is a high-demand, high value product. It can be pro-duced cheaper than by conventional processes

• The economics of MtSynfuels® are comparable to FT routes

• A “gas-based petrochemistry/refinery” is developed by Lurgi


Back-up slides


Latest Methanol Project References

Methanex, USA 1700 mtpd 1992

Statoil, Norway 2400 mtpd 1992

CINOPEC, China 340 mtpd 1993

KMI, Indonesia 2000 mtpd 1994

NPC, Iran 2000 mtpd 1995

Sastech, RSA 400 mtpd 1996

Titan, Trinidad 2500 mtpd 1997

PIC, Kuwait 2000 mtpd 1998

YPF, Argentina 1200 mtpd 1999

Atlas, Trinidad 5000 mtpd 1999

NPC, 4th Methanol, Iran 5000 mtpd 2000


Operation at the

Optimum Reaction Route

High Equilibrium Driving Force

High Conversion Rate

Elimination of Reactor Feed Preheater

Elimination of Catalyst Poisoning

Two-Step Methanol Synthesis

Gas Cooled ReactorWater Cooled Reactor

Simple and Exact Reaction

Control

Quasi Isothermal Operation

High Methanol Yield

High Reliability

High Energy Efficiency


Ignition Characteristics of the Components Cetane Number

Density, Effect on Engine Performance

Exhaust Gas Emissions, Sulfur, Particulates, Nox

Viscosity, narrow Limits

Cold Flow Properties, substitutes Kerosene

Dimethyl Ether (DME) -Quality Aspects of Diesel Fuel


Chemical formula CH3OCH3 C3H8 CH4 CH3OH

Molecular weight 46.07 44.1 16.04 32.04

Boiling point at 0.1MPa, °C -24.8 -42.1 -161.5 64.7 150-370

Liquid density, kg/m³ (20°C) 666 501 - 792 <845

Relative density (gaseous, air=1) 1.59 1.52 0.55 - -

Vapor pressure, MPa (20°C) 0.51 0.85 - - -

Explosive limits (vol% in air) 3-17 2.1-9.4 5-15 5.5-44 0.6-6.5

Cetane number 55-60 5 0 5 40-55

Net calorific value (MJ/kg) 28.84 ~42.519.946.3 50

Properties of DME and other Fuel

Name DME Propane Methane Methanol Diesel


DME Synthesis: Alternatives

Methanol dehydration 2 CH3 OH CH3 OCH3 + + H2O

Water gas shift reaction*

*carbon loss by CO2 formation

CO + H2O CO2 + H2

DME Direct Synthesis

DME direct synthesis 4 H2 + 2 CO CH3 OCH3 + H2O

MegaMethanol® synthesis** CO + CO2 + 5 H2 2 CH3 OH + H2O

DME Synthesis via MegaMethanol®

**CO2 consumption = “sequestration”!


Lurgi DME - Process

HeatIntegration 2

DMEReactor

Methanol Recycle

DMEColumn

MethanolWaterColumn

ProcessWater

OffgasScrubber

CrudeMethanol

Offgas

DME Product

Light Ends

HeatIntegration 1

CoolingSystem


Synfuels, Mossel Bay, RSA


MTP® - Product Slate


tests for catalyst optimization

optimization of reaction conditions in 1st, 2nd and 3rd stage

testing & optimization of “simulated“ recycle streams

optimization of steam dilution

test of regeneration conditions

optimization of DME pre-reactor

Three-Stage PDU (Pilot Plant)1

st stage

2n

d stage

3rd stag

e

DME pre-reactors

MTP® R&D Development Strategy


Demo Plant, Norway, 2002

MTP® R&D - Objective of Demo Unit

Demo Unit is the next step of scale-up allowing final scale-up to industrial size in one last step

Compare Demo Unit results with Pilot Plant (successful)

confirm operating conditions and process performance in long time operation

test of catalyst life, deactivation and regeneration, demonstrate catalyst lifetime greater than 1 year

test influence of “real“ hydrocarbon recycle on product yield and catalyst activity


MTP® - Process Design of Commercial Plant

Create initial commercial design based on pilot plant data

Improve thermodynamic property set in process simulator (e.g. evaluation & regression of VLE data)

Optimize process flow sheet (e.g. sequence of component separation, heat integration study) MTP Plant, 3D PDS Model

Produce all engineering documents requ. for investment cost estimate

Icarus based investment cost model

Incorporate demo plant results Value Engineering


MTP Economics

40 50 60 70 80 90

380 $/t Propylene

400 $/t Propylene

0

5

10

15

20

25

30

35

40

Methanol Feed, $/t

Inte

rnal

Rat

e o

f R

etu

rn*,

%

Mega Methanol®

deliveredon site“integrated”

* Equity: 20%, Depreciation/Year: 10%


MTP Reactor System

propylene production only

more complicated set-up to control reaction temperature

low risk of scale-up

low coking tendency of catalyst

discontinuous in-situ regeneration at reaction temperature (no stress on the catalyst)

defined residence time for maximum selectivity

ethylene/propylene co-production

good temperature control

complicated multi-step scale-up

high coking tendency of catalyst

continuous regeneration at elevated temperatures; oxygen breakthrough into process possible

broad residence time distribution

Fixed-Bed Fluidised-Bed


Lurgi‘s FT Experience I Commercialisation of ARGE-synthesis in 1952

location: Sasolburg / South Africa start up: 1955 no. of reactors: 5

All original reactors still in operation today;extension of capacity in 1987 (+ 1 reactor)

Modern FT Reactor Technology

Slurry phase reactor (by far preferred)

Tubular reactor

Fluidised bed reactor

Lurgi has commercial experience in all these reactor technologies


Lurgi‘s FT Experience II

Lurgi designed the syngas production unitsof all FT-plants currently in commercial

operation

Sasol/Secunda (coal gasification)

Mossgas (combined reforming of NG)

SMDS/Bintulu (partial oxidation of NG)Today, Lurgi MegaSyn® is available for FT Synthesesas well as for MtSynfuel®

Lurgi’s route through methanol to transportation fuels


Gas-based Petrochemistry

OILconventional route

Natural GasAssociated Gas“Stranded Gas”emerging route

COALfuture route ?

Feedstock

AromaticsBenzeneTolueneXylenes

„Oxidates“Alcohols, Ethers,

Esters, Acids,Aldehydes

Intermediates PetrochemicalProducts

OlefinsEthylene

Propylene

PolyolefinsPE, PP

Acrylates

PolycondensatesPC, PET,

PBT

Solvents

FuelsFuel additives

Syngas Methanol

Cracker

MTO

Lurgi‘sMegaSyn

Lurgi‘sMTP®

Lurgi‘sMTC

LurgiMegaMethanol®

Gas to Chemicals

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