gas monetisation transformation vs. transportation review ... · pdf filegas monetisation...

Gas MonetisationTransformation vs. Transportation

Review of the Main Transformation Technologies

Guido Collodi - Process Director – Foster Wheeler

“L’industria del gas: tendenze e prospettive” - Fiera Accadueò – Bologna, 22 Ottobre 2014

© 2014 Foster Wheeler. All rights reserved

Agenda

• Foster Wheeler – in a nutshell• What type of gas?• Gas monetisation technologies• The Syngas• Hydrogen• Methanol• DiMethil Ether (DME)

1

• DiMethil Ether (DME)• MTO – MTP• Fischer-Tropsch (GTL)• Ammonia and Fertlisers• Conclusions

• A global top-tier engineering, procurement, construction contractor and power equipment supplier

• A reputation for safe, on-time, on-budget delivery of high-quality, technically advanced energy and industrial infrastructure and facilities, which start up as planned and perform reliably

• 2013 operating revenues: over $3.3bn

Foster Wheeler - in a nutshell

• 2013 operating revenues: over $3.3bn

• NASDAQ-listed company with operating HQ in Reading, UK

• In business for more than 115 years

• Permanent offices in 30 countries, with more than 13,000 employees world-wide

• Two business groups:

– Global Engineering & Construction (E & C) Group

– Global Power Group

2

Our differentiation

Foster Wheeler AG

We deliver value through leading technologies, world-class talent, project execution excellence and creative, reliable solutions

Job-site safety at world-class levelsStrong, multi-decade client relationships

Global Power GroupGlobal Engineering & Construction Group

3

• Full-spectrum contractor, from study to FEED to project management to EPC

• Industry-leading know-how and technology in a number of areas, incl. LNG liquefaction and delayed coking

• Large, technically complex projects, often in challenging locations

• World leader in CFB boilers with 75%+ market share

• Full range of boilers• Biomass gasifiers• Environmental products• After-market services

More than 11,000 E&C personnel world-wide

Clinton, NJ

Philadelphia, PA

Shanghai

Beijing

Reading

Milan Istanbul

Moscow

ParisBasel

Glasgow

Teesside

Madrid

Houston

N. D. de Gravenchon

Antwerp

Walnut Creek, CA

Calgary

Baku

Global E&C Group

Cary, NC

HullAberdeen

TianjinSuzhou

Shijiazhuang

Santiago

Caracas

Midrand

St Clair (Trinidad)

Singapore

Kuala Lumpur

Chennai

Shanghai

SrirachaBangkok

Al-Khobar

Abu Dhabi

Bandar Seri Begawan (Brunei)

Milan Istanbul

Vitrolles

Madrid

Hanoi

Bogotá

South Jordan, UT

Rio de Janeiro

Jakarta

Main engineering centres

Global High Value Execution Centre

Regional/local engineering centres

Sales offices

KolkataDubaiPuerto Rico

Cary, NC

Monterrey

Mexico City

Poza Rica

Suzhou

4

Conventional Gas

• Gas which can be recovered by conventional drilling and production; no special enhanced recovery techniques are required.

• Further classified according to whether the production is independent of, or associated with, oil production:

– Non-associated gas - gas that is not associated with crude oil reserves. Predominately CH4.

What type of gas?

Predominately CH4.

– Associated gas - gas that is associated with crude oil reserves, and is often separated at the well head. Typically contains CH4 with significant amounts of heavier components i.e. C2, C3, C4 and trace C5+’s.

5

Unconventional Gas

• Gas which cannot be recovered without special enhanced recovery techniques such as hydraulic fracturing being required.

• Further classified according to type as follows:

– Tight gas - gas that is trapped in sandstone or limestone formations with unusually low permeability to gas flow.

– Shale gas - gas which is trapped in clay-like carbon-rich particles in huge

What type of gas?

– Shale gas - gas which is trapped in clay-like carbon-rich particles in huge formations of low permeable shale rock. New hydraulic fracturing techniques have lead to increased recoveries using a mixture of high pressure water, sand and other chemicals to fracture the shale and keep the fractures open to allow the gas to be released and recovered.

– Coal seam gas – also known as coal bed methane, is gas adsorbed in coal seams or dissolved in associated water.

– Gas hydrates - gas which is trapped in ice-like structures in cold Polar Regions or deep sea continental shelf.

6

What type of gas?

Shale gas and coal seam gas lead the unconventional gas charge. Unconventional gas production is currently concentrated in the US and Canada. By 2035, unconventional gas also reaches a significant scale in China (CSG and shale), Russia (tight gas), India (shale) and Australia (CSG).

7

Gas Monetisation Technologies

CompressionPipeline / CNG

Fuel

(heat/power)

Natural Gas

LiquefactionFuel

(heat/power)

LNG / FLNG

LPG / Diesel

Power

GenerationElectric Power

Electricity Grid

DME

Transportation

Syngas

GenerationSyngas

LPG / Diesel

Substiute

Transport Fuels

Fertilisers

Hydrogen

Polymers

Gasoline

VAM / EstersCO

H2

DME

MTO

MTG

Acetic

Acid

Methanol

Hydrogen

Ammonia

FT GTL

Ethylene

Propylene

Transformation

8

Transportation vs. Transformation

100

200

300

400

500

Pro

du

ctio

n r

ate

[B

cf/y

ear

]

LNGPipeline

LNG + GTL

GTL + Chemicals

Associated GTL + Chemicals

CNG

Electricity

0

0 1000 2000 3000 4000 5000

Distance to market [km]

Associated GTL + ChemicalsElectricity

(HVDC)

Competing and alternate markets

9

Syngas production

• All gas monetisation technologies that transform gas to products currently use syngas as an intermediary. Therefore a technology in syngas generation is required irrespective of the end product: diesel, methanol, ammonia, ethylene etc.

The synthesis gas (syngas) is defined as a mixture of H2 and CO in various proportions.

� Reforming (strongly endothermic) CH4 + H2O �� CO + 3 H2 (1)

10

CH4 + H2O �� CO + 3 H2 (1) CH4 + CO2 �� 2 CO + 2 H2 (2)

� Combustion (strongly exothermic) 2 CH4 + O2 � 2 CO + 4 H2 (3) CH4 + 2 O2 � CO2 + 2 H2O (4)

� Shift conversion (mildly exothermic) CO + H2O �� CO2 + H2 (5)

� Carbon formation CH4 � 2 H2 + C (6) 2 CO � CO2 + C (7)

Syngas production

11

Syngas production

Desulph.

PSA

CO2 RemovalCO Shift1°Reformer 2°Reformer

NG

O2/Air

CO2

H2

12

Desulph.

Membr./Crio.


Methanation

CO

Syngas(NH3, MeOH, GTL)

Syngas production

NG

Desulph.

PSA


O2/Air

CO2

H2

13

Desulph.

Membr./Crio.


Methanation

CO


Syngas production

Desulph.

PSA


NG

O2/Air

CO2

H2

14

Desulph.

Membr./Crio.


Methanation

CO


Syngas production

Desulph.

PSA


NG

O2/Air

CO2

H2

15

Desulph.

Membr./Crio.


Methanation

CO


Syngas generation summary

Product H2/CO ratio

Acetic Acid 1:1

Methacrylic Acid 5:4

Glycol 3:2

Acetaldehyde 3:2

16

FT Fuels 2:1

Methanol 2:1

The type of syngas generation equipment selected has a H2/CO ratio that matches the downstream product process requirements as closely as possible.

Hydrogen

• Hydrogen is the most abundant of the chemical elements, constituting roughly 75% of the universe's mass.

• In 1766, Henry Cavendish was the first to recognize hydrogen gas. • In 1783, Antoine Lavoisier gave the element the name of hydrogen.

(Gk. Hydro Water, Genes Forming)

17

• Hydrogen is an energy carrier, not an energy source.

• Today hydrogen is industrially produced mostly by steam reforming of natural gas.

• Total growth estimate of refinery hydrogen is approx. 1.75 Million Nm3/h over the next 4-5 years.

Hydrogen

Hydrogen production plant process flow scheme

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Methanol

• Also named Methyl Alcohol (or “wood spirit”).The term alcohol derives from the Arabic name Al Koh’l = “impalpable”, characteristic extended to any vapour that can be extracted from a heated liquid >>> “wine spirit” (ethanol).

2013 Methanol Demand by End Use and by Region

19

• Global Methanol demand is about 57 million tonnes/year

• Price: ~550-630 $/tonneFormaldehyde 32%

Acetic Acid 10%

MTBE/TAME10%

DME 11%

MTO/MTP 6%

Source: Methanex

Methanol

-Syngas quality (typical)M = (H2 – CO2)/(CO + CO2) = ~2 mol/molCO2 = 2.5 – 3.5 %vSulphur << 0.1ppmvInerts = minimum

NG

O2Steam

20

Desulphurization

Distillation

ATRPrereformerPrimary ref.

(Compression)Synthesis

NG

Methanol

Syngas

DiMethyl Ether (DME)

• First used in the 1960s as a propellant in consumer products. Its use as a diesel fuel substitute was recognized in the mid-1990s and interest has grown since.

• A potentially large volume application of DME is as a fuel. It can be used as fuel in diesel engines, gasoline engines (30% DME / 70% LPG blend), and gas turbines.

• DME is currently produced in a two step process: natural gas is firstly converted methanol then the methanol is dehydrated to form DME.

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• The DME market demand in 2010 was around 2.1MTPA, with over 90% of that demand in China. This demand is expected to rise to 20MTPA by 2020.

Methanol to Olefins

• The conventional route to produce light olefins, namely ethene and propene (also known as ethylene and propylene respectively), is via steam cracking.

• A number of alternative routes exist to create these valuable petrochemical precursors, one of which is via methanol in the MTO or MTP processes

22

Source: Merchant Research & Consulting ltd

Methanol to Olefins (MTO) & Methanol to Propylene (MTP)

MTP - Lurgi

23

MTO - UOP

Fischer Tropsch (FT) Gas-to-Liquids

Process Timeline

24

Fischer-Tropsch Synthesis

Tail gas

HER

Tail gas

External recycle to ATR

Off gas

Off gas

Internal recycle HER condensate


25

F-T reactor

StripperSyngas

F-T wax

F-T condensate

Internal recycle HER condensate

• GTL is a method of producing liquid hydrocarbons in the middle distillate range (gasoline, jet and diesel).

• The basis of GTL technology is the FT reaction where syngas is converted into liquid hydrocarbons, the liquid hydrocarbons are then be cracked into middle distillate products.

The FT reaction: (2n+1)H2 + nCO CnH(2n+2) + nH2O

•

Fischer-Tropsch Synthesis


26

Source: Sasol – 2003 AIChE Meeting, New Orleans

Product Upgrading


Hydrogen

HER condensate

GasHydrotreating

27

Hydrocracking

FractionationF-T wax

Hydrogen

LPG

Naphtha

GTL fuel


• PetroSA 22,500bpd facility in South Africa: world’s first commercial-scale GTL facility, uses Sasol FT technology, start-up 1992

• Shell 17,000bpd GTL plant in Bintulu, Malaysia: start-up 1993 • Sasol/QP 34,000 bpd Oryx GTL, Qatar, start-up 2006• Shell 140,000 Pearl GTL facility in Qatar: first production 2011. • The next GTL project to start operation will be the 34,000bpd Escravos GTL in

Nigeria using Sasol’s FT technology.

• Liquid fuels from GTL facilities can be marketed as premium products as they

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• Liquid fuels from GTL facilities can be marketed as premium products as they contain very low levels of sulphur and aromatics, the diesel has a high cetane number and burns with lower particulate emissions.

• However, the process itself is inefficient, with a maximum theoretical thermal efficiency of the FT reaction at 67%, and then with losses, especially in syngas generation, modern plants at best achieve efficiencies of around 58%.

Small-scale GTL would enable the monetisation of many small stranded gas fields (<1TCF), where LNG is not economic, and where associated gas is flared

Ammonia & Fertilisers

• It is named after the Egyptian god Ammon.• White cristals, originated by the combustion of camel

excrement, were found on the walls of the god’s temple.

• Ammonia was first isolated in 1774.

Ammonia – NH3

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• Annual Ammonia production is about 140 millions MT/Y (32% China)

• Price: ~440 $/MT (Arab Gulf); ~510 $/MT (Europe)• Main use (90%) is as nitrogenous fertilisers for

agriculture (urea, ammonium nitrate, phosphate, sulphate), nitric acid, acrylonitrile.


• First found in human urine, it was the first organic compound to be artificially synthesized from inorganic starting materials (1828, F.Woehler), thus shattering any remaining alchemical or spiritual notions that organic and inorganic materials were completely distinct from each other. (Source: Wikipedia)

Urea – NH2-CO-NH2 (or Carbamide)

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• Annual Urea production is > 160 millions MT/Y• Price: ~315-350 $/MT • Main use (90%) is as nitrogenous fertilisers for agriculture (prills, granules,

UAN solution), ureic resins.


NG Reforming

CO2

Removal

Methanation and

Natural Gas (Feed + Fuel)

Process Gas Syngas

CO2 (dry base, to Urea Plant)

NH3 (to Urea Plant)

2NH3

+ CO2→ H

2N-COONH

4(ammonium carbamate)

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H.P. Steam Import

Cooling

Water

ElectricEnergy

Condensates Export

Demi Water Import

Reforming and Shift Section

Removal Section

and Synthesis Loop NH3 (to storage)

NH3 and CO2 from natural gas are almost“equilibrated” for urea production.

H2N-COONH

4→ (NH

2)2CO + H

2O


Ammonia

82-0-0

Nitric Acid Sulphuric acid Phosphoric acid

HC Water Air Sulphur Ph. rockWater Water WaterAir

Urea

46-0-0

AN

33-0-0

UAN sol. CAN

CaCO3

NPK Superphosphate Amm. phosphate

Ph. rockPh. rock

Amm. sulphate (AS)

By- or co-products

of other processes

Fertilisers NPK(S) rating

N - P - K - S

Where

N = %w of N

P = %w as P2O5

K = %w as K2O

S = %w of S

32

UAN sol.

28/30/32-0-0

CAN NPK

(NP, NK, PK)

Superphosphate

SSP=0-17/22-0

TSP=0-44/52-0

Amm. phosphate

MAP=11-48/55-0-2

DAP=18/21-46/54-0-2

(CN)

Amm. sulphate (AS)

AS=21-0-0-24

Amm. thiosulphate (ATS)

ATS=12-0-0-26

Conclusions

• A key theme of all the major world energy forecasts (BP, Shell, IEA, EIA, HIS CERA) is the growing role of natural gas in the global energy mix. The forecasts do not align precisely. However, the following two themes are consistent:

• A surge in the global demand for energy as a result of population growth, increased prosperity and industrialisation.

• Climate change initiatives (currently the biggest variable in all forecasts) will promote lower CO2 energy pathways.

• In some cases even regional carbon pricing may change the technologies

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• In some cases even regional carbon pricing may change the technologies required for gas monetisation, for example CCS may become an important part of any plant using natural gas as a feedstock or fuel.

• Shale gas is a “revolution” in North America. Outside North America, developments could be 2020+.

Source: IEA scenario 2011

Global Energy Mix

[email protected]

Thank you!

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