Gas To Chemicals

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Gas To Chemicals New Delhi, September 18-21,
2002 Jens Wagner
Technologically Advanced Natural Gas
Monetization Opportunities for Chemicals
Petrochemicals
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Agenda

• Gas To Chemicals - Drivers
• MegaSyn-Technology
• MegaMethanol-Technology
• Gas-Based Petrochemistry
• Gas-Based Refinery

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Vision Lurgi Oel Gas Chemie
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.
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Driver I
Natural Gas Reserves-To-Production Ratio
of global reserves
7,1 7,8 34,6 38,1 3,0 4,3 5,0
Source Energy Information Administration (EAI)
International Natural Gas Information 14 Feb
2001, http//www.eia.doe.gov
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3,700 billion ft³ of natural gas are flared per
year
Driver II
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
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Driver III
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Driver III
Source CMAI
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Driver IV

• 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.

Mossgas Fischer-Tropsch Plant
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Lurgi Mega Concept -
Basis of a gas-based Chemicals- and Refinery
Industry
Acetic Acid
Formaldehyd
Stranded Gas
MTBE
SYNGAS CO H2
Methanol
Diesel- Additives
FT- Fischer Tropsch Products
Fuel
Hydrogen
Olefins
DME
Clean Fuels, Lubricants, ? -Olefins
Ammonia
Polypropylene Acrylonitril
Polyethylene Ethylene-Glycol ?-Olefins
Fuel Cell, Green Fuels
Diesel
Energy- Production
Urea
Liquids
Production of many high-value products
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How do You want to produce Your Syngas?
ASU
ASU

5 x 1000 Tubes
1.5 Mio Nm³/h 560 Mio SCF/d Syngas
1.5 Mio Nm³/h 560 Mio SCF/d Syngas
1.5 Mio Nm³/h 560 Mio SCF/d Syngas
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Gas to Syngas (MegaSynTM) -
Investment Cost Comparison
relativecost
106 Nm3/h syngas
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Autothermal Reformer
Process Characteristics
q low S/C ratio ? 1.5 - 0.5 mol/mol ? high CO
selectivity ? low CO2 emission q outlet
temperature ? 900 - 1050 C ? low methane
slip ? close approach to equilibrium q pressure
40 bar commercially proven (up to 70 bar
possible) q single train capacity 500,000 m3
syngas /hr under construction
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Combined Reformer, Mossgas, South Africa
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Gas to Chemicals Processing Routes
Diesel Gasoline LPG Fuel Gas Waxes/Lube
Oil Power Fuel Cells Chemicals (MTBE, Acetic
Acid, Formaldehyde) Diesel/Gasoline Propylene/Poly
propylene Acrylic Acid/Acrylates Ethylene/Propylen
e Fuel (DME) Hydrogen
Fischer Tropsch Synthesis
Upgrading
MtPower
MegaSyn
Natural Gas / Associated Gas
MtSynfuels
Mega-Methanol
MTP
Acrylic Acid
MTO
MTD
MTH
Megammonia
Ammonia/Urea/Fertilizer
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Lurgis 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

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Simplified Diagram of Lurgis MegaMethanol
Technology

• improved gasification
• high energy efficiency for MeOH synthesis
• low investment costs
• large single-train capacity
• methanol production cost of less than 50 /t !

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Methanol Technology Competitive Situation
Market Share
1969 - 1992
1992 - 2001
Lurgi 27
Lurgi 55
MGC, Other 12
MGC, Other 20
ICI 61
ICI 25
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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)
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DME Production by Methanol Dehydration
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Lurgi DME Process Features

• 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

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Lurgi DME - Economics
MegaMethanol Dehydration Plant DME
production 5000 t/d Natural gas
demand 42.9 MMBtu/tDME 28.5 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
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MTP - Simplified Process Flow Diagram
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MTP - Technical Highlights

• 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

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MTP Technology Status

• 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

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MTP Economics I
Case Study B, Blockflow Diagram
1.7 Mio t/aMethanol
520 000 t/aPropylene
12.3 Mio Nm³/dSyngas
3.8 Mio Nm³/d
Poly-propylenePlant
SyngasPlant
Propylene Plant (MTP)
Methanol Plant
NaturalGas
143 000 t/aGasoline
520 000 t/aPolypropylene
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MTP Economics II
Production Cost, Case Study B Integrated
MegaMeOH/MTP/PP Complex
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MTP Economics III
ROI, Case Study B Integrated MegaMeOH / MTP / PP
Complex
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Gas-based Petrochemistry
MeOH-Plant
PP-Plant
Natural GasMethane
SyngasCO H2
Methanol
Propylene
MTP Plant
Polypropylene
Propylene
Propylene
Oxoalcohol-Plant
Acrylic Acid
Acrylic AcidPlant
Acrylic Acid
Acrylic Acid
2-EHOH
BuOH
2-EHOH Acryl. Plant
Bu-Acryl. Plant
2EHAC
BuAc
Butylacrylate
2-Ethylhexylacrylate
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Gas Refinery via Methanol - Lurgis MtSynfuel
(MTS)
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Comparison Lurgi MTS Route - FT Synthesis I

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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 (ISBLOSBL) 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

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Comparison Lurgi MTS Route - FT Synthesis
IIICost of Production Estimate

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Conclusions - Future Perspectives

• The challenge of abundant NG is answered.
• MegaSyn and MegaMethanol - Lurgis 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

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Back-up slides
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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

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Two-Step Methanol Synthesis
Water Cooled Reactor
Gas Cooled Reactor

• Operation at the Optimum Reaction Route
• High Equilibrium Driving Force
• High Conversion Rate
• Elimination of Reactor Feed Preheater
• Elimination of Catalyst Poisoning

• Simple and Exact Reaction Control
• Quasi Isothermal Operation
• High Methanol Yield
• High Reliability
• High Energy Efficiency

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Dimethyl Ether (DME) -Quality Aspects of Diesel
Fuel

• 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

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Properties of DME and other Fuel
Name
DME
Propane
Methane
Methanol
Diesel
Chemical formula
CH
OCH
C
H
CH
CH
OH
3
3
3
8
4
3
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 (20C)
666
501
792

Relative density (gaseous, air1)
1.59
1.52
0.55
-
-
Vapor pressure, MPa (20C)
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
42.5
19.9
Net calorific value (MJ/kg)
28.84
46.3
50
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DME Synthesis Alternatives
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Lurgi DME - Process
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Synfuels, Mossel Bay, RSA
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MTP - Product Slate
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MTP RD Development Strategy
DME pre- reactors
Three-Stage PDU (Pilot Plant)

• 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

1st stage
3rd stage
2nd stage
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MTP RD - 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

Demo Plant, Norway, 2002
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MTP - Process Design of Commercial Plant
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MTP Economics
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MTP Reactor System
Fixed-Bed
Fluidised-Bed

• 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

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Lurgis 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
  todayextension 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

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Lurgis 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 Lurgis
route through methanol to transportation fuels
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Gas-based Petrochemistry