India Chem 2002: Gas To Chemicals

Gas To Chemicals

New Delhi, September 18-21, 2002

Jens Wagner

Technologically Advanced Natural Gas Monetization:

Opportunities for Chemicals & Petrochemicals

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

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.

India Chem 2002: Gas To Chemicals

Driver I
Natural Gas: Reserves-To-Production Ratio

World

% of global
reserves

61

Far East & Oceania

7,1%

41

Africa

7,8%

98
263

Middle East
Eastern Europe & FSU
Western Europe

38,1%

78

3,0%

16

4,3%

68

S&C America
North America

5,0%

10

34,6%

50

100

150

200

250

300

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

India Chem 2002: Gas To Chemicals

Driver II
4x World production
of methanol

World production
of ammonia

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

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

India Chem 2002: Gas To Chemicals

Driver III

India Chem 2002: Gas To Chemicals

Driver III
WORLD POLYPROPYLENE PRICE COMPARISON
Current Dollars

Dollar per Ton

1200
Forecast

1000

800

600

400

200

0
1990

1993

1996

1999

2002

USGC-Contract
West Europe-Contract
SEA Spot
Source: CMAI

2005

2008

2011

2014

USGC-Spot
SEA Contract

2017

2020

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

Lurgi Mega Concept Basis of a gas-based Chemicals- and Refinery Industry

Acetic Acid

Stranded
Gas

Formaldehyd
MTBE

SYNGAS
CO + H2
Methanol

FT-

DieselAdditives

Fischer Tropsch
Products
Fuel

Hydrogen

Olefins

DME
Clean Fuels,
Lubricants, Fuel Cell,
-Olefins
Green
Fuels

Ammonia
Diesel
Urea

EnergyProduction

Polyethylene
Ethylene-Glycol
-Olefins

Liquids

Production of many high-value products

Polypropylene
Acrylonitril

India Chem 2002: Gas To Chemicals

How do You want to produce Your Syngas?

ASU

ASU

1.5 Mio Nm/h =

560 Mio SCF/d
Syngas

1.5 Mio Nm/h =

560 Mio SCF/d
Syngas

5 x 1000 Tubes

1.5 Mio Nm/h =

560 Mio SCF/d
Syngas

India Chem 2002: Gas To Chemicals

Gas to Syngas (MegaSynTM) Investment Cost Comparison

relative
cost

500
400
SR
CR
ATR

300
200
100
0
0

0,3

0,6

0,9

1,2

1,5

1,8

106 Nm3/h syngas

India Chem 2002: Gas To Chemicals

Autothermal Reformer
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 capacity

500,000 m3 syngas /hr under construction

India Chem 2002: Gas To Chemicals

Combined Reformer, Mossgas, South Africa

India Chem 2002: Gas To Chemicals

Gas to Chemicals Processing Routes

Diesel
Gasoline
Fischer
Tropsch
Synthesis

LPG

Upgrading

Fuel Gas
Waxes/Lube Oil
MtPower

Power

MegaSyn

Fuel Cells

Natural Gas /
Associated
Gas

Chemicals (MTBE, Acetic

Acid, Formaldehyde)

MtSynfuels

MegaMethanol

MTP

Propylene/Polypropylene
Acrylic Acid

MTO
MTD
MTH

Megammonia

Diesel/Gasoline
Acrylic Acid/Acrylates
Ethylene/Propylene
Fuel (DME)
Hydrogen
Ammonia/Urea/Fertilizer

India Chem 2002: Gas To Chemicals

Lurgis LP-Methanol Technology Milestones

1969 First LP-Methanol Catalyst Test

1970 Cooperation with Sd-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

India Chem 2002: Gas To Chemicals

Simplified Diagram of Lurgis
MegaMethanol Technology

Gas-Cooled Water-Cooled
Reactor
Reactor

improved gasification
high energy efficiency for
MeOH synthesis
low investment costs

methanol production cost of

less than 50 $/t !

Purge
Gas

Natural
Gas

Desulphurization

Air

Boiler
Feed
Water

Syngas

large single-train capacity

Crude Methanol
PreReforming

Autothermal
Reforming

AirOxygen
Separation

Steam

Methanol
Synthesis

Methanol
Distillation

PSA

Pure
Methanol

India Chem 2002: Gas To Chemicals

Methanol Technology Competitive Situation

Market Share
1969 - 1992

1992 - 2001

Lurgi 27%

Lurgi 55%
MGC,
Other
12%

ICI 61%

ICI 25%

MGC,
Other
20%

India Chem 2002: Gas To Chemicals

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)

India Chem 2002: Gas To Chemicals

DME Production by Methanol Dehydration

MeOH
Recycle
Off-gas
Stabilised
MeOH

Syngas
Production

DME
Reaction

DME
Distillation

H2O
Recycle

DME
Product

Waste
Water

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

Lurgi DME - Economics

MegaMethanol & Dehydration Plant
DME production

5000

t/d

Natural gas demand

42.9
28.5

MMBtu/tDME
MMBtu/tMeOH

Total fixed cost (EPC)

415

MMUS$

Production Cost
Diesel fuel (for comparison)

93.0
= 3.4
4.8 - 6.1

US$/tDME
$/MMBtu
$/MMBtu

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

India Chem 2002: Gas To Chemicals

MTP - Simplified Process Flow Diagram

Methanol

Fuel Gas

DME
Pre-Reactor

Product
Conditioning

Propylene

LPG

MTP 1

MTP 2

MTP 3

Reactor Stages
Water Recycle

Gasoline

Olefin Recycle

Process
Water

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

MTP Economics I
Case Study B, Blockflow Diagram

3.8 Mio Nm/d

Natura
l
Gas

12.3 Mio Nm/d

Syngas

Syngas
Plant

1.7 Mio
t/a
Methanol

Methanol
Plant

520 000 t/a

Propylene

Propylene
Plant
(MTP)
936 000 t/a
Water

Polypropylene
Plant

143 000 t/a

Gasoline

520 000 t/a

Polypropylen
e

India Chem 2002: Gas To Chemicals

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

MTP

PP

1,700,000

520,000

520,000

Capacity

MTY

Investment Cost EPC

Owners Cost
incl. Capitalised Interest

Mio US$

350

215

165

Mio US$

70

43

33

Feed Cost

US$

Methanol
43 $/t

Propylene
174 $/t

Production Cost

42.9

210.1

261.0

- Raw Materials
- Utilities
- Operation & Maintenance
- Plant OVDH & Insurance
- Depreciation

US$/t
US$/t
US$/t
US$/t
US$/t
US$/t

14.4
1.6
5.6
6.0
15.3

150.3
5.6
11.3
12.1
30.8

212.8
6.8
8.6
9.2
23.6

Credit for by-product Naphtha

US$/t

- 35.7

Cost of Product

US$/t

43

174

261

Natural Gas
0,5 $/MMBtu

India Chem 2002: Gas To Chemicals

MTP Economics III

ROI, Case Study B: Integrated MegaMeOH / MTP / PP Complex
Methanol - MTP - PP
Investment Cost EPC
Owners Cost incl. Capitalised Interest

Mio US$
Mio US$

Feed Stock Cost

US$

Production Cost

US$/t
US$/t
US$/t
US$/t
US$/t
US$/t

154.3

Revenues

Mio US$
US$/t
US$/t
US$/t

356.6

- Raw Materials
- Utilities
- Operation & Maintenance
- Plant OVHD & Insurance
- Depreciation
- Methanol (90 US$/t)
- Naphtha (130 US$/t)
- Polypropylene (650 US$/t)

Return on Investment , ROI1)

1) ROI Estimate based on Chem Systems Methodology

730
146
Natural Gas
0,5 $/MMBtu
49.7
9.1
19.9
21.2
54.4

18.6
338.0

23.1

India Chem 2002: Gas To Chemicals

Gas-based Petrochemistry

Natural
Gas
Methane

Syngas
CO + H2

MeOHPlant

Methanol

MTP

Propylene

Plant

Propylene

PPPlant

Polypropylene

Propylene

OxoalcoholPlant

Acrylic Acid
Plant
Acrylic Acid

2-EHOH

Acrylic Acid
BuOH

2-EHOH
Acryl. Plant

Bu-Acryl.
Plant

2EHAC

BuAc

2-Ethylhexylacrylate

Butylacrylate

Acrylic Acid

India Chem 2002: Gas To Chemicals

Gas Refinery via Methanol - Lurgis MtSynfuel (MTS)

Distillate

Hydrocarbon Recycle

4.290 t/d

Hydrocarbon Recycle

Methanol
15.000 t/d

MTP

COD

Product
Separation

Gasoline
1860 t/d

Gasoline
Water Recycle
Discontinous
In-situ Catalyst
Regeneration

Light Ends
420 t/d

India Chem 2002: Gas To Chemicals

Comparison Lurgi MTS Route - FT Synthesis I

Product Slate

Lurgi Route

FT Synthesis

1:4

1 : 2.3 1 : 5.4

Lurgi Route3)

FT Synthesis3)

35
1
50/10 1)
18
91/95/98
82.5/85/88

3
<< 1
0
44
80
75

<1
<< 1
0
> 30
< 40
< 40

11
50/10 1)
51

<1
<1
55

<1
<5
> 70

Naphtha : Diesel (max.)

Product Properties
Spec (Europe from 2005)
Gasoline
-Aromatics
vol.% max.
-Benzene
vol.% max.
-Sulphur
wppm max.
-Olefins
vol.% max.
2)
-RON
-MON 2)
Diesel
-Polyaromatics vol.% max.
-Sulphur
wppm max.
-Cetane No.
min.
1)

Diesel with 10 wppm sulphur has to be available on the market

RON / MON for Regular Gasoline / Euro-Super / Super-Plus
3)
Properties before naphtha upgrading
2)

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

Comparison Lurgi MTS Route - FT Synthesis III

Cost of Production Estimate
Total Capital Investment
[MM $]
-Total Plant Capital
[$/bpd]

Lurgi MtSynfuels

existing FT1)

1.452
24,192

1.671
27,856

NG to Process (LHV)

[$/bbl]
[MMBtu/bbl]

3.76
7.51

4.22
8.44

Cat. & Chemicals

[$/bbl]

1.45

1.53

Utilities

[$/bbl]

0.28

0.8

24.88

28.68

Cost of Production + ROI

Market Prices 2)
- Gasoline
- Diesel
1)
2)

[$/bbl]

[$/bbl]
[$/bbl]

Chem Systems, 2001

Corresponding Crude Oil Price: about 21 $/bbl

Western Europe US Gulf Coast

34.75
31.42
28.88
26.51

Japan
29.70
33.21

India Chem 2002: Gas To Chemicals

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 costs

to 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/refinery is developed by Lurgi

India Chem 2002: Gas To Chemicals

Back-up slides

India Chem 2002: Gas To Chemicals

Latest Methanol Project References

Methanex, USA

1700 mtpd

1992

Statoil, Norway

2400 mtpd

1992

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

CINOPEC, China

India Chem 2002: Gas To Chemicals

Two-Step Methanol Synthesis

Water Cooled Reactor

Simple and Exact Reaction

Control

Gas Cooled Reactor

Operation at the
Optimum Reaction Route

Quasi Isothermal Operation

High Equilibrium Driving Force

High Methanol Yield

High Conversion Rate

High Reliability

High Energy Efficiency

Elimination of Reactor Feed Preheater

Elimination of Catalyst Poisoning

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

Properties of DME and other Fuel

Name

DME

Propane Methane Methanol Diesel

Chemical formula

CH3OCH3

C3H8

CH4

CH3OH

Molecularweight

46.07

44.1

16.04

32.04

Boiling point at 0.1MPa, C

-24.8

-42.1

64.7

150-370

Liquid density, kg/m (20C)

666

501

-161.5
-

792

<845

Relative density (gaseous, air=1) 1.59

1.52

0.55

Vapor pressure, MPa (20C)

0.51

0.85

Explosive limitsvol%
(
in air)

3-17

2.1-9.4

5-15

Cetane number

55-60

Net calorific value (MJ/kg)

28.84

46.3

50

19.9

5.5-44 0.6-6.5
40-55
~42.5

India Chem 2002: Gas To Chemicals

DME Synthesis: Alternatives
DME Direct Synthesis
DME direct synthesis

4 H2 + 2 CO

CH3 OCH3 + H2O

Water gas shift reaction*

CO + H2O

CO2 + H2

*carbon loss by CO2 formation

DME Synthesis via MegaMethanol

MegaMethanol synthesis** CO + CO2 + 5 H2

2 CH3 OH + H2O

**CO2 consumption = sequestration!

Methanol dehydration

2 CH3 OH

CH3 OCH3 + + H2O

India Chem 2002: Gas To Chemicals

Lurgi DME - Process

Light Ends
Offgas
DME
Reactor

Cooling
System
DME Product
DME
Column

Offgas
Scrubber
Crude
Methanol

Heat
Integration 2

Heat
Integration 1

Methanol Recycle

Methanol
Water
Column
Process
Water

India Chem 2002: Gas To Chemicals

Synfuels, Mossel Bay, RSA

India Chem 2002: Gas To Chemicals

MTP - Product Slate

India Chem 2002: Gas To Chemicals

MTP R&D
Development Strategy
Three-Stage PDU (Pilot Plant)

DME prereactors

tests for catalyst optimization

recycle streams

optimization of steam dilution

test of regeneration conditions
optimization of DME pre-reactor

3rd stage

testing & optimization of simulated

2nd stage

in 1st, 2nd and 3rd stage

1st stage

optimization of reaction conditions

India Chem 2002: Gas To Chemicals

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
Demo Plant, Norway, 2002

India Chem 2002: Gas To Chemicals

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

India Chem 2002: Gas To Chemicals

MTP Economics

Mega Methanol
on site
integrated

Internal Rate of Return*, %

40

delivered

35
30

400 $/t Propylene

25

380 $/t Propylene

20
15
10
5
0
40

50

60

70

80

90

Methanol Feed, $/t

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

India Chem 2002: Gas To Chemicals

MTP Reactor System

Fixed-Bed
propylene

production only

more

complicated set-up to
control reaction temperature

low

risk of scale-up

low

coking tendency of catalyst

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

Fluidised-Bed

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

discontinuous

defined

residence time for

maximum selectivity

India Chem 2002: Gas To Chemicals

Lurgis FT Experience I

Commercialisation of ARGE-synthesis in 1952

location:
start up:
no. of reactors:

Sasolburg / South Africa

1955
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

India Chem 2002: Gas To Chemicals

Lurgis FT Experience II

Lurgi designed the syngas production units

of all FT-plants currently in commercial
operation
Sasol/Secunda
Mossgas

(coal gasification)

(combined reforming of NG)

SMDS/Bintulu
Today,
Lurgi MegaSyn is
available
for FT Syntheses
(partial
oxidation
of NG)

as well as for MtSynfuel

Lurgis route through methanol to transportation fuels

India Chem 2002: Gas To Chemicals

Gas-based Petrochemistry
Feedstock

Intermediates

OIL
conventional route

Natural Gas
Associated Gas
Stranded Gas
emerging route

Aromatics
Cracker

Olefins

MTO
Lurgis
MegaSyn

Syngas
COAL
future route ?

Benzene
Toluene
Xylenes

Lurgis
MTP

Ethylene
Propylene

Petrochemical
Products
Polyolefins
PE, PP
Acrylates
Polycondensates
PC, PET,
PBT
Solvents

Methanol
Oxidates

Lurgi
MegaMethanol
Lurgis
MTC

Alcohols, Ethers,
Esters, Acids,
Aldehydes

Fuels
Fuel additives