Gas To Chemicals (GTC)

Lurgis Gas To Chemicals (GTC):

Advanced technologies for natural gas monetisation GASTECH 2005

Bilbao, Spain, March 14 - 17, 2005 Harald Kmpel, Waldemar Liebner, Matthias Wagner

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Gas To Chemicals (GTC)

Contents

Introduction Natural Gas: abundance and challenge Lurgis 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

E.Europe &FSU 6,3% West. Europe C&S 2,2% America 11,6%

Middle East 13,7%

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

Africa 43,3%

North America 15,7%

Far East & Oceania 7,2%

better use: make 102 Mt/a of methanol! build 60 MegaMethanol (and MTP) plants!

Source: Cedigaz, 2003

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Gas to Chemicals Processing Routes

Fuel Gas LPG

Fischer Tropsch Synthesis Natural Gas / Associated Gas Upgrading

Naphtha Diesel Waxes Ammonia Fuel Cells Chemicals (MTBE, Acetic Acid, Formaldehyde, ...) Diesel, transport. fuels Propylene/Polypropylene
Acrylic Acid

Megammonia

MegaSyn
MTC MtSynfuels

MegaMethanol

MTP

Acrylic Acid/Acrylates Ethylene/Propylene Power/Fuel/DME(Diesel) Hydrogen

MTO

Lurgi proprietary process

MtPower MTH

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The Lurgi MegaMethanol Concept

The basis for even more value from natural gas: MegaMethanol: > 1.7 million t/a methanol single train capacity Technical Features: Oxygen-blown synthesis gas production Two-step methanol synthesis Hydrogen Recovery

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Simplified Diagram of Lurgis MegaMethanol Technology

Optimised reforming: high flexibility in stoichiometric number high energy efficiency for MeOH synthesis low investment costs large single-train capacity
Syngas
Purge Gas

Gas-Cooled Water-Cooled Reactor Reactor

Steam

Boiler Feed Water

methanol production cost: 65 $/t

Natural Gas

Crude Methanol
PreReforming

Desulphurization

Autothermal Reforming

Methanol Synthesis

Methanol Distillation

Air
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AirOxygen Separation

PSA

Pure Methanol

Gas To Chemicals (GTC)

Latest LurgiMethanol Project References

METHANEX, USA STATOIL, Norway SINOPEC, China KMI, Indonesia NPC, Iran SASTECH, RSA TITAN, Trinidad YPF, Argentina ATLAS, Trinidad NPC, 4th Methanol, Iran METHANEX, Chile 4 NPC, 5th Methanol, Iran Hainan, China Qafac, Qatar IAC Acetex (+730 t/d CO)

1700 mtpd 2400 mtpd 340 mtpd 2000 mtpd 2000 mtpd 400 mtpd 2500 mtpd 1200 mtpd 5000 mtpd 5000 mtpd 2400 mtpd 5000 mtpd 2000 mtpd 6750 mtpd 5400 mtpd

1992 1992 1993 1994 1995 1996 1997 1999 2000 2000 2002 2004 2004 2004 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

MeOH Recycle Off-gas Methanol DME Reaction DME Distillation DME Product

Syngas Production

H2O Recycle

Water Treatment

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Lurgi DME - Economics

MegaMethanol & Dehydration Plant = MegaDME

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)
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DME projects in a sense

Lurgi will build several large DME plants, however

Plant location Iran Latin America Middle East Middle East production DME, kt/a 269 690 1180 1180 exp. s-u 2008 2008

Status contract signed LOI, financing

contract (pre-)BE 2009 LOI, financing 2009

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MTP: Simplified Process Flow Diagram with production figures

Methanol, Grade AA 1.667 x 106 t/a = 5000 t/d

Fuel Gas 15,000 t/a internal use

DME PreReactor
Product Conditioning

Propylene 519,000 t/a

LPG 54,000 t/a

MTP Reactors
(2 operating + 1 reg.)

Gasoline 143,000 t/a

Olefin Recycle Water Recycle

Product Fractionation Process Water 936,000 t/a

for internal use and/or irrigation
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Block Flow Diagram - PP Complex

3.8 Mio Nm/d

12.3 Mio Nm/d Syngas

1,700,000 t/a Methanol

520,000 t/a Propylene

Natural Gas

Syngas Plant

Methanol Plant

MTP Plant
900,000 t/a Water 140,000 t/a Gasoline

Polypropylene Plant

520,000 t/a Polypropylene

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Block Flow Diagram - PP Complex

3.8 Mio Nm/d Natural Gas

0.52 Mt/a Propylene

GTP Plant
0.9 Mt/a Water 0.14 Mt/a Gasoline

Polypropylene Plant

0.52 Mt/a Polypropylene

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Polypropylene Pricing

WORLD POLYPROPYLENE PRICE COMPARISON

Dollar per Ton

Current Dollars

1200
Forecast

1000

800

600

400

200

0 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020

USGC-Contract West Europe-Contract SEA Spot

Source: CMAI
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USGC-Spot SEA Contract

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Gas To Chemicals (GTC)

GTP Economics
ROI - Case B: low propylene / high gasoline Integrated GTP / PP Complex GTP - PP
Investment Cost EPC Owners Cost incl. Capitalised Interest Feed Stock Cost Production Cost
- Raw Materials - Utilities - Operation & Maintenance - Plant OVHD & Insurance - Depreciation

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

730 146 Natural Gas 0.5 $/MMBtu 150.7

46.6 8.6 19.9 21.2 54.4

Revenues
- Gasoline (130 $/t) - Polypropylene (650 $/t)

317.2
31.6 285.6

Return on Investment Internal Rate of Return (before Tax)

ROI % IRR2) %

19 20.6
16

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 plant demo unit has logged >11,000 hours (March 04) proof of polymer grade propylene process design for commercial plant completed CATALYST catalyst development completed by supplier catalyst is commercially manufactured In short: The technology is on the market at fully commercial terms
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MTP Projects

MTP projects gas-based

Plant location Iran Latin America Middle East Middle East production PP, kt/a 100 256 441 441 Status contract signed LOI, financing exp. s-u 2008 2008

contract (pre-)BE 2009 LOI, financing 2009

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Gas-based Refinery via Methanol: Lurgis MtSynfuels

Hydrocarbon Recycle Hydrocarbon Recycle

Kero/Diesel
5.438 t/d

Methanol
15.000 t/d

Olefin Production

Olefin Oligomerisation

Product separation
+ MD Hydrogenation

Gasoline
685 t/d

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

H2,55 t/d, from Methanol synthesis

LPG
579 t/d

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Synfuels, Mossel Bay, RSA

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Lurgis FT Experience 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 designed the syngas production units of all FT-plants currently in commercial operation Sasol/Secunda (coal gasification) Mossgas (combined reforming of NG) SMDS/Bintulu (partial oxidation of NG)
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Lurgis FT Experience II

Today, Lurgi MegaSyn is available for FT Syntheses as well as for MtSynfuels, Lurgis 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 Synthesis Product Slate and Properties

Product Slate Naphtha : Kero+Diesel (max.) Gasoline : Kero+Diesel 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) 2)

Lurgi Route 1:8 Lurgi Route

FT Synthesis 1 : 2.3 1 : 6 FT Synthesis3)

35 1 50/10 1) 18 91/95/98 82.5/85/88 11 50/10 1) 51

11 << 1 << 1 6 92 80 << 1 << 1 > 52

<1 << 1 <1 > 30 < 40 < 40 <1 <5 > 70

Diesel with 10 wppm sulphur has to be available on the market RON / MON for Regular Gasoline / Euro-Super / Super-Plus 3) Properties of FT-naphtha
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Comparative Economics1) - Cost of Production Estimate

GTL Technology Total Capital Investment Total Plant Capital NG to Process (LHV) Cat. & Chemicals Utilities

MtSynfuels 1,181 MM $() 19,680 $()/bpd 3.82 $()/bbl 7.64 MMBtu/bbl 2.19 $()/bbl 0.28 $()/bbl

existing FT1) 1,671 MM $ 27,856 $/bpd 4.22 $/bbl 8.44 MMBtu/bbl 1.53 $/bbl 0.8 $/bbl 28.68 $/bbl US Nymex 51.5 53.6

Cost of Production + ROI Market Prices 2) - Gasoline - Diesel

1) 2)

22.47 $()/bbl W.Europe 56.9 48.3

[$/bbl] [$/bbl]

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

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Gas-based Petrochemistry

Feedstock
OIL conventional route

Intermediates
Aromatics
Cracker Benzene Toluene Xylenes

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

Natural Gas Associated Gas Stranded Gas emerging route

MTO Lurgis MegaSyn Lurgis MTP

Olefins
Ethylene Propylene

Syngas COAL/Biomass future route ?

Methanol Oxigenates
Alcohols, Ethers, Esters, Acids, Aldehydes

Lurgi MegaMethanol Lurgis MTC

Fuels Fuel additives

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Valuable Products (Petrochemicals) from Natural Gas

Natural Gas Methane

Syngas CO + H2

MeOHPlant

Methanol

MTP Plant

Propylene

PPPlant

Polypropylene

Propylene

Propylene

OxoalcoholPlant
Acrylic Acid 2-EHOH BuOH

Acrylic Acid Plant

Acrylic Acid

Acrylic Acid

2-EHOH Acryl. Plant

Bu-Acryl. Plant

2EHAC
2-Ethylhexylacrylate

BuAc
Butylacrylate

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Conclusions

Lurgis MegaSyn and MegaMethanol open 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 is developed by Lurgi

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Thank You!

Contact: Dr. Waldemar Liebner

Director GTC Technology Lurgi AG Dept. A-TM Lurgiallee 5 D-60295 Frankfurt am Main Germany
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!
Phone Fax Mobile e-mail

Questions?

x49 69 5808 3799 x49 69 5808 3115 0174 7469 313 dr_waldemar_liebner@lurgi.de
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