Session 5 - Lurgi - Liebner, Waldemar Conferences/2005/SDS...flexibility in stoichiometric ... Reaction DME Distillation DME Methanol Product H2O Recycle MeOH ... MTP® Lurgi‘s MTC

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Gas To Chemicals (GTC®)

DrLb / GTC_Gastech05_pres / 25.02.05

Lurgi’s Gas To Chemicals (GTCLurgi’s Gas To Chemicals (GTC®®):):Advanced technologies for natural gas monetisationAdvanced technologies for natural gas monetisation

GASTECH 2005Bilbao, Spain, March 14 - 17, 2005

Harald Kömpel, Waldemar Liebner, Matthias Wagner

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Contents

• Introduction• Natural Gas: abundance and challenge• Lurgi’s MegaMethanol®-Technology• MegaMethanol® to Dimethyl Ether • MegaMethanol® to Propylene = MTP®

• MtSynfuels® versus Fischer Tropsch• Near future: “gas-based petrochemistry”• Conclusion

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Flared Natural Gas

Middle East

13,7%

North America15,7%

Africa43,3%

Far East & Oceania

7,2%

West. Europe

2,2%

E.Europe&FSU6,3%

C&S America11,6%

better use:make 102 Mt/a of methanol!

build 60 MegaMethanol (and MTP) plants!

total amount flared world-wide:81 *109 m³ per year

Source: Cedigaz, 2003

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Gas to Chemicals Processing Routes

MegaSyn®

Fischer Tropsch

Synthesis

Mega-Methanol®

Upgrading

MTO

MtPower

MTH

MtSynfuels®

Acrylic Acid

Fuel GasLPGNaphthaDieselWaxesAmmoniaFuel CellsChemicals (MTBE, Acetic Acid, Formaldehyde, ...)Diesel, transport. fuelsPropylene/PolypropyleneAcrylic Acid/AcrylatesEthylene/PropylenePower/Fuel/DME(Diesel)Hydrogen

MTP®

Natural Gas /Associated Gas

MTC

Lurgiproprietary process

Megammonia®

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The Lurgi MegaMethanol® Concept

MegaMethanol®: > 1.7 million t/a methanol single train capacity

Technical Features:Oxygen-blown synthesis gas production

Two-step methanol synthesis

Hydrogen Recovery

The basis for even more value from natural gas:

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Simplified Diagram of Lurgi‘s MegaMethanol® Technology

Desulphur-ization

Pre-Reforming

AutothermalReforming

MethanolDistillation

Air-Separation

PureMethanol

Oxygen

NaturalGas

PSA

MethanolSynthesis

Air

• Optimised reforming: high flexibility in stoichiometric number

• high energy efficiency for MeOH synthesis

• low investment costs• large single-train capacity

methanol productioncost: 65 $/t

Syngas

Purge Gas

Crude Methanol

Steam

BoilerFeedWater

Gas-CooledReactor

Water-CooledReactor

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Latest Lurgi-Methanol Project References

METHANEX, USA 1700 mtpd 1992

STATOIL, Norway 2400 mtpd 1992

SINOPEC, China 340 mtpd 1993

KMI, Indonesia 2000 mtpd 1994

NPC, Iran 2000 mtpd 1995

SASTECH, RSA 400 mtpd 1996

TITAN, Trinidad 2500 mtpd 1997

YPF, Argentina 1200 mtpd 1999

ATLAS, Trinidad 5000 mtpd 2000

NPC, 4th Methanol, Iran 5000 mtpd 2000

METHANEX, Chile 4 2400 mtpd 2002

NPC, 5th Methanol, Iran 5000 mtpd 2004

Hainan, China 2000 mtpd 2004

Qafac, Qatar 6750 mtpd 2004

IAC Acetex (+730 t/d CO) 5400 mtpd 2004

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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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Lurgi MegaDME Dimethyl Ether Production by Methanol Dehydration

DMEReaction

DMEDistillation

DMEProductMethanol

H2ORecycle

MeOHRecycle

WaterTreatment

Off-gas

SyngasProduction

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Lurgi DME - Economics

Single-train production capacities: 5000 t/d (1.7 Mt/a) and more

Available “on order”

Incremental investment cost increase on MegaMethanol® plant: < 10%

Delivered cost (“trans-ocean”): same as for methanol (on energy basis)

MegaMethanol® & Dehydration Plant = MegaDME

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DME projects – in a sense

2009LOI, financing1180Middle East

2009contract (pre-)BE1180Middle East

2008LOI, financing690Latin America

2008contract signed269Iran

exp.s-u

StatusproductionDME, kt/a

Plantlocation

Lurgi will build several large DME plants,however …

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MTP: Simplified Process Flow Diagram with production figures

Gasoline 143,000 t/a

Fuel Gas 15,000 t/ainternal use

Process Water 936,000 t/afor internal use and/or irrigation

DMEPre-Reactor

ProductConditioning

Propylene519,000 t/a

LPG54,000 t/a

Water Recycle

Olefin Recycle

Methanol, Grade AA1.667 x 106 t/a = 5000 t/d

Product Fractionation

MTP Reactors(2 operating + 1 reg.)

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NaturalGas

3.8 Mio Nm³/d

SyngasPlant

Poly-propylene

Plant

MTP®

PlantMethanol

Plant

1,700,000 t/aMethanol

520,000 t/aPropylene

520,000 t/aPolypropylene

12.3 Mio Nm³/dSyngas

140,000 t/aGasoline

900,000 t/aWater

Block Flow Diagram - PP Complex

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Block Flow Diagram - PP Complex

NaturalGas

3.8 Mio Nm³/d

Poly-propylene

Plant

GTPPlant

0.52 Mt/aPropylene

0.52 Mt/aPolypropylene

0.14 Mt/aGasoline

0.9 Mt/aWater

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Polypropylene Pricing

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-SpotWest Europe-Contract SEA ContractSEA Spot

Forecast

Dollar per Ton

Source: CMAI

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GTP - PPInvestment Cost EPC Mio $/€ 730 Owner‘s Cost incl. Capitalised Interest Mio $/€ 146

Feed Stock Cost US$ Natural Gas0.5 $/MMBtu

Production Cost Mio $/€ 150.7- Raw Materials Mio $/€ 46.6- Utilities Mio $/€ 8.6- Operation & Maintenance Mio $/€ 19.9- Plant OVHD & Insurance Mio $/€ 21.2- Depreciation Mio $/€ 54.4

Revenues Mio $/€ 317.2

- Gasoline (130 €$/t) Mio $/€ 31.6- Polypropylene (650 €$/t) Mio $/€ 285.6

Return on Investment ROI % 19

Internal Rate of Return (before Tax) IRR2) % 20.6

GTP® Economics

ROI - Case B: low propylene / high gasolineIntegrated GTP / PP Complex

1) ROI estimate based on Chem Systems Methodology 2) IRR estimate based on COMFAR

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MTP® Technology Status

PROCESS>9000 operating hours of pilot plantdemo unit has logged >11,000 hours (March 04)proof of polymer grade propyleneprocess design for commercial plant completed

CATALYSTcatalyst development completed by suppliercatalyst is commercially manufactured

In short:The technology is on the market …

… at fully commercial terms

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MTP Projects

2009LOI, financing441Middle East

2009contract (pre-)BE441Middle East

2008LOI, financing256Latin America

2008contract signed100Iran

exp.s-u

StatusproductionPP, kt/a

Plantlocation

MTP projects – gas-based

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Gas-based Refinery via Methanol: Lurgis MtSynfuels®

Olefin Production

Olefin Oligo-merisation

Gasoline685 t/d

LPG579 t/d

Kero/Diesel5.438 t/d

H2,55 t/d,from Methanol

synthesisWaterrecycle

Hydrocarbon Recycle

Methanol15.000 t/d

Productseparation

+ MD Hydrogenation

Hydrocarbon Recycle

Process water, 7.902 t/d,can replace raw water

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Synfuels, Mossel Bay, RSA

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Lurgi‘s FT Experience

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)

Commercialisation of ARGE-synthesis in 1952location: Sasolburg / South Africastart up: 1955no. of reactors: 5

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

Modern FT Reactor TechnologySlurry phase reactor (by far preferred); tubular reactor; fluidised bed reactor

Lurgi has commercial experience in all these reactor technologies

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Lurgi‘s FT Experience II

Today, Lurgi MegaSyn® is available for FT Syntheses as well as for MtSynfuels®, Lurgi’s route through methanol to transportation fuels.

Lurgi also is active again in the FT-field –as JV partner in the company GTL.F1 which is developing/commercialising a modern FT-technology.

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Comparison Lurgi MtSynfuels® - FT SynthesisProduct Slate and Properties

Product Slate Lurgi Route FT SynthesisNaphtha : Kero+Diesel (max.) 1 : 2.3 – 1 : 6Gasoline : Kero+Diesel 1 : 8

Product Properties Lurgi Route 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

11<< 1<< 1

69280

< 1<< 1< 1

> 30< 40< 40

Diesel-Polyaromatics-Sulphur-Cetane No.

vol.%wppm

max.max.min.

1150/10 1)

51

<< 1<< 1> 52

< 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 of FT-naphtha

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Comparative Economics1) - Cost of Production Estimate

GTL Technology MtSynfuels® existing FT1)

Total Capital Investment Total Plant Capital

1,181 MM $(€) 19,680 $(€)/bpd

1,671 MM $ 27,856 $/bpd

NG to Process (LHV) Cat. & Chemicals Utilities

3.82 $(€)/bbl 7.64 MMBtu/bbl 2.19 $(€)/bbl 0.28 $(€)/bbl

4.22 $/bbl 8.44 MMBtu/bbl 1.53 $/bbl 0.8 $/bbl

Cost of Production + ROI 22.47 $(€)/bbl 28.68 $/bbl Market Prices 2)

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

W.Europe 56.9 48.3

US Nymex 51.5 53.6

1) ChemSystems 2001 2) Corresponding Crude Oil Price: about 42 $/bbl

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Gas-based Petrochemistry

OILconventional route

Natural GasAssociated Gas“Stranded Gas”emerging route

COAL/Biomassfuture route ?

Feedstock

AromaticsBenzeneTolueneXylenes

„Oxigenates“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®

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Valuable Products (Petrochemicals) from Natural Gas

MeOH-Plant

MTP 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

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Conclusions

Lurgi’s MegaSyn® and MegaMethanol® opennew 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 produced cheaper than by conventional processes

• The economics of MtSynfuels® are comparable to FT routes

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

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ThankThankYou!You!

!!!!

!!Questions?Questions?Contact:

Dr. Waldemar LiebnerDirector GTC TechnologyLurgi AG

Dept. A-TM Phone x49 69 5808 3799Lurgiallee 5 Fax x49 69 5808 3115D-60295 Frankfurt am Main Mobile 0174 7469 313Germany e-mail [email protected]

Documents

Session 5 - Lurgi - Liebner, Waldemar Conferences/2005/SDS...flexibility in stoichiometric ... Reaction DME Distillation DME Methanol Product H2O Recycle MeOH ... MTP® Lurgi‘s MTC