coal & natural gas chemicals - tecnon orbichem 2014/apic2014_02_gillian_tweddle.pdf · coal...

Coal & Natural Gas Chemicals

Gillian Tweddle

Tecnon OrbiChem Marketing Seminar at APIC 2014

Pattaya, 15 May 2014

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1999

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$/mmBtu

Source: Tecnon OrbiChem

APIC 2014

NATURAL GAS, CRUDE OIL & COAL PRICES

US Nat Gas $/mmBtu

Oil $/mmBtuequivalent

Coal $/mmBtuequivalent

Dollars per Ton


APIC 2014

METHANOL CONTRACT vs BRENT, HENRY HUB GAS & COAL PRICES

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-10

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-11

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-13

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Methanol (Average)

Brent

Henry Hub Gas

China Coal

APIC 2014

NATURAL GAS-BASED SYNTHESIS GAS AND METHANOL PRODUCTION


Steam Reformer

Methanol Synthesis

Natural Gas

Steam

H2 Rich

Syngas MethanolDe-Sulphuriser

CO2

APIC 2014

COAL-BASED SYNTHESIS GAS TO METHANOL PRODUCTION


Pure

Syngas

H2 Rich

Syngas

H2 Lean

Syngas

Gasifier ShiftCo-ProductProcessing

ASU

Separation

Claus Unit

PSA

Coal

Steam

Oxygen

Tail Gas

Hydrogen

Ammonia

Phenolics

Sulphur

CO2

(to sequestration?)

Methanol Synthesis

APIC 2014

CHEMICALS FROM COAL


Coal

CalciumCarbide

Syngas

Acetylene

VCM & PVC

Ammonia

Crude Methanol

Oxalate

Fertilisers

Methanol

Ethylene

MEG

Acetic Acid

MTPMTO

Propylene

DME Formaldehyde

BDO

Fischer -Tropsch

Fuels &Chemicals

MTBE

APIC 2014

METHANE TO METHANOL TO ACETIC ACID


SyngasUnit

Methanol Synthesis

Methane

Noble MetalCatalyst

Acetic Acid

CarbonylationReactor

CarbonMonoxide

Unit

Oxygen

CO

Crude

Acetic Acid

Dis

tillation C

olu

mn

Steam

Hydrogen


APIC 2014

ACETIC ACID PRODUCTION COSTS - US vs CHINA

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Dollars per Ton

USG Acetic Acid $/ton

USG AA RawMaterials

China AA Raw

Materials

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6,000

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1,000 Metric Tons


APIC 2014

WORLD ACETIC ACID CAPACITY vs DEMAND

Annual Acetic Acid Consumption

Growth 3.9%

Growth 6.8% pa

Forecast Growth 4.2% pa

Capacity to produce(90% utilisation)

Capacity to produce(80% utilisation)

Other21%

MTO4%

Biodiesel4%

Fuel Blending12%

DME7%

MTBE11%

Acetic Acid11%

Formaldehyde30%

2013 Total58-60 Million Tons

APIC 2014

GLOBAL METHANOL DEMAND BY END-USE


APIC 2014

CHINA METHANOL DEMAND BY END-USE


MTO19%

Other14%

Fuel Blending11%

DME18%

MTBE5%

Acetic Acid6%

Formaldehyde27%

2020 Total>70 Million Tons

MTO64%

Other8%

Fuel Blending4%

DME7%

MTBE2%

Acetic Acid3%Formaldehyde

12%

2013 Total26-28 Million Tons

APIC 2014

METHANOL-TO-PROPYLENE - LURGI MTP® PROCESS

Source: Lurgi GmbH

3.8 Mio Nm³/d48 Mio mmBtu/a

Natural Gas

SyngasPlant

PropylenePlant (MTP)

Methanol Plant

1.7 Mt/aMethanol

0.47 Mt/aPropylene

12.3 Mio Nm³/d Syngas

936 000 t/aWater

143,000 t/aGasoline

CoalGasification

& Shift Conversion

OR4.3 Mt/a

Coal

APIC 2014FEEDSTOCK REQUIREMENTS FOR MTP®


Propylene1 ton

Methanol3.5 tons

Natural Gas2600 m3 =100 mmBtu

or

Coal9.15 tons total (6.25 tons feedstock+ 2.90 tons fuel)


APIC 2014

VIABILITY OF MTP®

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02468101214161820222426283032

Dollars per Ton Ratio

Propylene/Methanol Ratio

MethanolImport E AsiaMinus$50/tonfreight

PropyleneImport E AsiaMTP not viable

using MeOH at international prices

APIC 2014

MTP® - SIMPLIFIED BLOCK DIAGRAM

Three-Stage Adiabatic Reactor

MTP 1 MTP 2 MTP 3

Gasoline143,000 t/a

Fuel Gas15,000 t/a

Water936,000t/a

DMEPre-Reactor

ProductConditioning

Propylene470,000 t/a

LPG54,000t/a

Water Recycle

Olefin Recycle

Crude Methanol

1.667 x 106 t/a = 5000 t/d

Source: Lurgi GmbH

APIC 2014

MTP COMMERCIAL PROJECTS - CHINA

Datang International

• 1800 ktpa methanol from coal

• 470 ktpa MTP propylene (Lurgi)

• 456 ktpa polypropylene (Dow Unipol)

• Location: Xilinguole, Inner Mongolia, China

• Operating at 50-60% of capacity

Shenhua Ningxia Coal Industrial Group

• 1670 ktpa methanol (Lurgi)

• 470 ktpa MTP propylene (Lurgi)

• 500 ktpa polypropylene (Lummus Novolen)

• Location: Ningdong, Ningxia province, China

• Start-up: MTP Sept 2010, polypropylene Q4 2010

• Generally operating at 70-80% capacity


APIC 2014

METHANOL TO OLEFINS (MTO)

Source: UOP

OUTPUT FROM a UOP/Hydro MTO PLANTConfigured for 1:1 Ethylene : Propylene Ratio

Propylene

Ethylene

SyngasUnit

MethanolSynthesis

MTOUnit

Higher olefins,by products

DMESynthesis

ktpaINPUTNatural gas (2.1 x 109 m3) 1515Methanol 2358

OUTPUTEthylene 400Propylene 400Butenes 123C5+ hydrocarbons 46Fuel gas 40Other (water, COx, coke) 1349Total 2358

APIC 2014

METHANOL-TO-OLEFINS - UOP/HYDRO PROCESS

ReactorReactor RegeneratorRegeneratorQuenchQuenchTowerTower

Mixed CMixed C44

PropanePropane

EthaneEthane

Tail GasTail Gas

EthyleneEthylene

PropylenePropylene

CC55++

DryerDryer

CC22HH22ReactorReactor

Caustic Caustic WashWash DeDe--CC2 2 DeDe--CC11

CC22SplitterSplitter

CC33SplitterSplitterDeDe--CC33 DeDe--CC44

RegenRegen GasGas

AirAir

MethanolMethanol

DMERecovery

WaterWater

Similar to naphtha cracker equipment

Similar to refinery/FCC equipment

Source: UOP


APIC 2014

VIABILITY OF ADVANCED MTO

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Dollars per TonRatio

Ethylene/Methanol Ratio

MethanolImport E AsiaMinus $50freight

EthyleneImport E Asia

MTP not viable using MeOH at international prices

APIC 2014

MTO COMMERCIAL PROJECTS - CHINA

Shenhua Baotou Coal to Liquid and Chemical

• GE gasification

• 1800 ktpa methanol, needing 3450 ktpa coal feedstock

• 600 ktpa DMTO (SYN (Dalian Institute of Chemical Physics) + Lummus)

• 300 ktpa ethylene, 300 ktpa propylene

• 300 ktpa polyethylene (Univation)

• 300 ktpa polypropylene (Dow Unipol)

• Location: Baotou, Inner Mongolia, China

• Start-up: August 2010 all units

Sinopec Zhongyuan Petrochemcial

• 600 ktpa SMTO (Sinopec Beijing Yanshan Petrochemical); methanol bought

• 200 ktpa ethylene, 100 ktpa propylene

• 200 ktpa polyethylene, 100 ktpa polypropylene

• Existing180 ktpa ethylene cracker and 60 ktpa polypropylene cannabilised

• Location: Puyang, Henan province, China

• Start-up: 2012


APIC 2014

MTO COMMERCIAL PROJECTS - CHINA

Ningbo Heyuan Chemical• 1800 ktpa methanol consumption• 600 ktpa DMTO [SYN + Lummus]]• OCT Olefins conversion 90 ktpa propylene [Lummus]• 300 ktpa polypropylene• Location: Ningbo, China• Start-up Jan 2013

Wison (Nanjing) Clean Energy• 900 ktpa methanol consumption• 300 ktpa MTO [UOP]• Location: Nanjing, China• Start-up 2014


APIC 2014

CTO / MTO / MTP PROJECTS 2014 - 2015


Company Location Details Capacity (ktpa) Start-Up

Ethylene Propylene

Pucheng Clean Energy Pucheng, Shaanxi CTO 300 400 Q1 2014

Yanzhou Coal Ordos, Inner Mongolia MTO 400 500 Q2 2014

Yulin Energy Yuin, Shaanxi CTO 300 300 Q2 2014

Qinghai Salt Golmud, Qinghai CTO 160 160 Q3 2014

Ningxia Baofeng Ningxia, Shaanxi CTO 300 300 2014

Jiutai Energy Ordos, Inner Mongolia MTO 300 300 2015

China Coal Mengda Inner Mongolia MTO 300 300 Q2 2015

China Coal Shaanxi Yulin, Shaanxi CTO 600 600 Q2 2015

Sinopec Zhijin Zhijin, Guizhou CTO 300 300 Q2 2015

Zhejiang (Xingxing) New Energy Jiaxin, Zhejiang MTO 300 300 Q2 2015

Huating Coal Group Huating MTP 200 2015

Shandong Yangmei Hengtong Tancheng, Shandong CTO 100 200 2015

Shandong Shengda Tengzhou, Shandong MTO 170 230 2015

Jiangsu Sailboat Lianyuangang, Jiangsu MTO 300 300 2015

Sinopec Wanbei JV Huainan CTO 300 300 2015

SXYCPC - Yan’an Energy & Chem Yan’an, Shaanxi CTO 450 250 2015

Fude Chemical Energy Changzhou, Jiangsu MTO 500 500 2015

APIC 2014

CONCLUSIONS

• Methanol has considerable potential to act as a new feedstock for olefins

• There is considerable potential for Methanol-to-Propylene plants, with two pioneering MTP® plants having come on stream in China in Q2/Q3 2010.

• Faster growth for propylene than ethylene demand, together with moves to lighter feedstocks for ethylene crackers, mean that alternative routes to propylene are needed.

• Methanol-to-olefin processes, which produce both ethylene and propylene, and especially the Advanced MTO process, offer even higher conversion of methanol to olefins. Four MTO plants already on line in China.

• Coal is the feedstock being used for the MTP and MTO plants in China. Some future plants will use imported methanol.

• Elsewhere natural gas is likely to be preferred; economics are very healthy where the natural gas is “stranded” and therefore cheap, but as the gap between natural gas and crude oil pricing has widened, even some non-stranded gas supplies are looking attractive.


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