Lurgis Gas To Chemicals (GTC): Advanced technologies for natural gas monetisation

Harald Koempel, Waldemar Liebner, Matthias Wagner Lurgi AG Lurgiallee 5, D-60295 Frankfurt am Main, Germany

Gastech 2005, Bilbao, Spain, 14 17. March 2005

Session 5: Gas-to-Liquids, Methanol, DME, CNG & Alternatives

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Natural Gas in the 21st Century: A Key Feedstock for (Petro-) Chemicals
The total proven gas reserves amount to approx. 180 trillion cubic meters world-wide which translates into a gas reserve-to-production ratio, i.e. a gas reserve lifetime of 70 years. Furthermore, estimated additional gas reserves will cover a lifetime of 65 years more. [Cedigaz 2003] Compared with the reserve lifetime of 41 years for petroleum and 230 years for coal, there is no doubt that natural gas will be a key fuel component in the 21st century. However, a considerable portion of this reserve is wasted yearly: More than 80 billion cubic metres of natural gas and oil associated gas are flared for technical reasons or for lack of markets. This explains the main incentive for engineers and environmentalists as well to come up with novel ideas for the utilisation of this gas. Existing technologies for natural gas conversion are based the conversion to synthesis gas (or short: syngas, a mixture of carbon monoxide, CO, and hydrogen, H2) and from there to hydrogen and ammonia, Fischer-Tropsch products as well as methanol and DME. Currently, the production of chemicals requires only around 5% of world gas consumption [Quigley and Fleisch 2000]. Figure 1 in a nutshell summarizes additional new routes and technologies: The very first step is again the conversion to synthesis gas, only this time in a highly efficient single-train process for truly large capacities, namely MegaSyn which is described briefly as optimised reforming in the methanol chapter. [Streb and Ghna 2000] As before, hydrogen, ammonia and Fischer-Tropsch products can be derived from this syngas, only now at lower costs. This cost advantage is carried over to MegaMethanol and even boosted there by way of integration. Since Lurgi introduced its new groundbreaking MegaMethanol process for plants with a production of 5,000 tons
Figure 1. 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 MtPower MTH

of methanol per day and more, methanol will be available at a constant low price in the foreseeable future. This development has an enormous impact on downstream technologies for the conversion of methanol to more valuable products. The first derivative of methanol in this context is DME which has a high potential as alternative to conventional diesel fuel, as feed gas for gas turbines in power generation and as supplement to LPG. Therefore DME is found in the MtPower route as energy carrier. As a chemical it would appear under MTC, methanol to chemicals. The next step is the use of methanol as feedstock for the production of olefins which is one of the most promising new applications. Lurgis new Methanol-to-Propylene (MTP) process presents a simple, cost-effective and highly selective technology. This route allows for the production of polypropylene and of petrochemicals which then would be gasbased. The last route to be discussed here in detail is MtSynfuels, a methanol-based technology for the production of synthetic transportation fuels which compares well with the FT-processes. The term MegaMethanol refers to plants with a capacity of more than one million metric tons per year, the actual standard size being 1.7*106 t/a (equivalent to 5,000 t/d). To achieve such a large capacity in a single-train plant a special process design is required. For this reason Lurgi focused on the most efficient integration of syngas generation and methanol synthesis into the most economical and reliable technology for the new generation of future methanol plants [Streb and Ghna 2000].

Lurgi MegaMethanol: Basis for More Valuable Products

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The unique adFigure 2. Simplified Diagram of Lurgis MegaMethanol Technology vantages of the Lurgi MegaMethanol technol- Optimised reforming: high Gas-Cooled Water-Cooled Reactor Reactor ogy result in ex-gate flexibility in stoichiometric Steam number methanol prices of about 65 $/t or less and make high energy efficiency for Boiler MeOH synthesis Feed this process ideally Water suited as part of Lurgis low investment costs Syngas route from C1 to propyl- large single-train capacity Purge ene and others. In Gas methanol production summer 2004 the first cost: 65 $/t such plant of 5,000 t/d Natural capacity started up sucGas Crude Methanol cessfully: Atlas/Trinidad is running at above deMethanol DesulphurPreMethanol Autothermal sign capacity ever since. ization Reforming Distillation Synthesis Reforming The second one, Zagros/Iran, is starting up AirOxygen Pure PSA Air Separation these days (spring Methanol 2005). Three more have been ordered in 2004, with capacities of 5000, 6750 and 5400 t/d respectively. Conceptual studies and engineering activities for MegaMethanol plants with single-train capacities of up to 7,500 t/d and more have been successfully finalised making these plant sizes ready for commercialisation. An environmental side note: the 80 billion cubic meters of natural gas flared or vented annually as mentioned above would be sufficient to feed about 60 MegaMethanol plants with a capacity of 102 million tons per year in total.

DME - A Valuable Product From Methanol

Dimethyl Ether, DME, is industrially important as the starting material in the production of the methylating agent dimethyl sulphate and is used increasingly as an aerosol propellant. In the future DME can be an alternative to conventional diesel fuel or a feed gas for power generation in gas turbines. Both applications are based on large-scale production facilities in order to achieve an economic fuel price. According to the audiences consensus during the First International DME Conference DME 1, in October 2004 in Paris, DME is on the verge of breakthrough into the energy and transportation fuel sectors. [Boll, Liebner 2004] Traditionally, DME was obtained as by-product of the high-pressure methanol synthesis. Since the low-pressure methanol synthesis was established, DME has been prepared from methanol by dehydration in the presence of suitable catalysts. The dehydration is carried out in a fixed-bed reactor. The product is cooled and distilled to yield pure DME. A modification of the methanol synthesis would allow for co-generation of DME within the methanol synthesis loop. This technical path comprises two disadvantages. While dehydrating methanol, the water vapour content increases, thus enhancing the water gas shift reaction. By converting CO into CO2, the quality of the synthesis gas deteriorates. The kinetics of the reaction of CO2 and H2 is slower than the one of CO and H2. As a result, the synthesis catalyst volume and the recycle loop capacity have to be increased. In addition, due to its low boiling point a cryogenic separation is required in order to separate DME from the synthesis recycle loop. As a result of these disadvantages of the co-generation of methanol and DME Lurgi favours the concept of generating DME from methanol by dehydration. This was discussed and demonstrated in the DME1 conference mentioned above. If a DME Unit is added to the MegaMethanol plant, the distillation of methanol is reduced from a three-tower system to one tower at considerable savings. Figure 3 shows the simple and inexpensive flowsheet for the dehydration of methanol. In this process all types and qualities of DME can be produced. The different specifications for fuel gas, power generation or pure DME can be achieved just by varying size and design of the DME distillation towers. The economics of the Lurgi DME Process Figure 3. DME Production by Methanol Dehydration are summarised in Table 1 assuming the following general set-up: Natural gas consumption and MeOH Product Value (EPC) are standardised on methaRecycle nol equivalent (7050 t/d methanol capacity); DME product quality is at least 99.2 wt% DME; Natural Off-gas gas consumption figures include energy demand for air separation and power generation; Total DME DME DME Methanol Product Fixed Cost include air separation, power generaReaction Distillation tion and off-sites; Natural gas price assumed as US$ 0.5 / MMBtu; Depreciation is 10 % of Total Fixed Cost; Return on Investment (ROI) is set to H2O Waste Syngas Water Recycle Gastech 2005 Liebner 3 Production

20 % of Total Fixed Cost; Operating cost for operator staff, plant overhead, maintenance labour and material are included. All investment cost figures are budgetary estimates of +/- 20 % accuracy. (See also disclaimer at the end of the paper.) Specific site conditions are not reflected with these numbers. The figures show the superb economics of MegaMethanol in combination with a separate dehydration step. Table 1: Economics of the Lurgi MegaDME Process

Plant Type
DME capacity Natural Gas Demand Total Fixed Cost (EPC) Cost of production

Mega Methanol & Dehydration

5,000 t/d 28.5 MMBtu / t MeOH 40.2 MMBtu / t DME 415 MM US$ () 93 US$ () / t DME

From all this it follows that DME, a traditional derivative of methanol, can be a promising alternative fuel for power generation, diesel, LPG or the manufacture of olefins when produced in large capacities. The production of DME by dehydration of methanol, i.e. in two steps, is more economic than a single-step synthesis as proposed elsewhere. This was discussed in detail in a paper for AIChE [Rothaemel, Liebner 2004].

Propylene - An attractive product with high value

Demand growth of propylene is projected at higher than 5% worldwide with marked regional spikes as e.g. for Iran, India, PR China. Polypropylene is by far the largest and fastest growing of the propylene derivatives, and requires the major fraction of about 60 % of the total propylene. The increasing substitution of other basic materials such as paper, steel and wood by PP will induce a further growth in the demand for PP and hence propylene. Other important propylene derivatives are acrylonitrile, oxo-alcohols, propylene oxide and cumene. The average growth rate for propylene itself is estimated very conservatively to be 4.5 % per year for the next two decades. How to satisfy this demand for propylene? Currently, steam crackers and FCC units supply 66 % and 32 %, respectively of propylene fed to petrochemical processes. However, as FCC units primarily produce motor gasoline, and steam crackers mainly ethylene, propylene will always remain a by-product (e.g. 0.04-0.06 t/t of ethylene for steam crackers with ethane feedstock and 0.03-0.06 t/t, respectively of motor gasoline and distillates production for FCC units). Current forecasts indicate an increasing gap of propylene production that has to be filled by other sources. Lurgis new MTP process directly aims to fill that gap.

Lurgis Methanol to Propylene (MTP) Technology

Lurgis new MTP process is based on an efficient combination of the most suitable reactor system and a very selective and stable zeolite-based catalyst. Since the process has been described in detail elsewhere [Rothaemel and Holtmann, 2001], suffice it to say here that Lurgi has selected a fixed-bed reactor system because of its many advantages over a fluidised-bed. The main points are the ease of scale-up of the fixed-bed reactor and the significantly lower investment cost. Furthermore, Sd-Chemie AG manufactures a very selective fixed-bed catalyst commercially which provides maximum propylene selectivity, has a low coking tendency, a very low propane yield and also limited by-product formation. This in turn leads to a simplified purifica- Figure 4. MTP: Simplified Process Flow Diagram tion scheme that reMethanol, Grade AA quires only a reduced Fuel Gas 15,000 t/a 1.667 x 106 t/a = 5000 t/d internal use cold box system as compared to on-spec ethylene/propylene DME Propylene separation. Pre519,000 t/a Reactor With Figure 4 Product a brief process deConditioning LPG 54,000 t/a scription reads: Methanol feed from the MegaMethanol plant is sent to an Gastech 2005
MTP Reactors Olefin Recycle Water Recycle Process Water 936,000 t/a
for internal use and/or irrigation (2 operating + 1 reg.)

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Gasoline 143,000 t/a

Product Fractionation

adiabatic DME pre-reactor where methanol is converted to DME and water. The high-activity, high-selectivity catalyst used nearly achieves thermodynamic equilibrium. The methanol/water/DME stream is routed to the MTP reactor together with steam and recycled olefins. Methanol/DME are converted by more than 99%, with propylene as the predominant hydrocarbon product. Process conditions in the five or six catalyst beds per reactor are chosen to guarantee similar reaction conditions and maximum overall propylene yield. Conditions are controlled by feeding small streams of fresh feed between the beds. Two reactors are operating in parallel while the third one is in regeneration or stand-by mode. Regeneration is necessary after about 500-600 hours of cycle time when the active catalyst centres become blocked by coke formed in sidereactions. By using diluted air, the regeneration is performed at mildest possible conditions, nearly at operating temperature, thus avoiding thermal stress on the catalyst. The product gas is compressed and traces of water, CO2 and DME are removed by standard techniques. The cleaned gas is then further processed yielding chemical-grade propylene with a typical purity of more then 97%. Several olefin-containing streams are sent back to the main synthesis loop as an additional propylene source. To avoid accumulation of inert materials in the loop, a small purge is required for light-ends and the C4/C5 cut. Gasoline is produced as a byproduct. Water is recycled to steam generation for the process; the excess water resulting from the methanol conversion is purged. This process water can be used for irrigation after appropriate and inexpensive treatment. It even can be processed to potable water where needed. An overall mass balance is included in Figure 4 based on a combined MegaMethanol / MTP plant. For a feed rate of 5,000 tons of methanol per day (1.667 million tons annually), approx. 519,000 tons of propylene are produced per year. By-products include fuel gas (used internally) and LPG as well as liquid gasoline and process water. Further integration and optimisation of the total plant complex including syngas, methanol, propylene production and offsite facilities will again decrease the capital investment and production costs. The technological status of MTP in the areas of process and catalyst can be summarised as follows: The basic process design data were derived from more than 9,000 operating hours of a pilot plant at Lurgis Research and Development Centre. Besides the optimisation of reaction conditions also several simulated recycles have been analysed. Parallel to that Lurgi decided to build a larger-scale demonstration unit to test the new process in the framework of a worldscale methanol plant with continuous 24/7 operation using real methanol feedstock. After a cooperation agreement with Statoil ASA was signed in January 2001 the Demo Unit was assembled in Germany and then transported to the Statoil methanol plant at Tjeldbergodden (Norway) in November 2001. Later in 2002 Borealis joined the cooperation. The Demo Unit was started up in January 2002, and the plant has been operated almost continuously since then. As of September 8th 2003, the Demo Unit completed the scheduled 8000 hours life-cycle test. With that the main purpose of the test was achieved: to demonstrate that the catalyst lifetime meets the commercial target of 8000 hours on stream. Cycle lengths between regenerations have been longer than expected. Deactivation rates of the methanol conversion reaction decreased with operation time. Propylene selectivity and yields were in the expected range for this unit with only a partial recycle. Also, the high quality of the by-product gasoline and the polymerisation grade quality of the propylene were proven. For details see an AIChE paper on the Demo Unit results [Rothaemel, Liebner 2004]. The catalyst development is completed and the supplier commercially manufactures the catalyst. Today, Lurgi is offering the process on fully commercial terms. A contract has been signed on the very first plant with a capacity of 100,000 t/a of propylene in the Middle East. Basic engineering work has commenced. From the same region a private investor has signed an LOI on a full-size MTP plant of about 500,000 t/a capacity. He has ordered as a first step a pre-basic/cost evaluation the work on which has begun also. Another LOI is with a state/private investor group in the Caribbean for a capacity of 256,000 t/a where Lurgi has done extensive studies and is now supporting the financ0.52 M t /a 3.8 M io Nm /d ing efforts.
Propylene Nat ural Gas

GTP Plant
0.9 M t /a Wat er 0.14 M t /a Gasoline

Polypropylene Plant

GTP Economics
Since propylene by itself is more an intermediate than an end product, an economics estimate was performed for a complete natural gas to polypropylene complex. In this case of integrating a MegaMethanol and a MTP plant we designate the resulting unit as Gas to Propylene, GTP, as shown in Figure 5. Thus, the economic assessment included the GTP route with a polypropylene unit for the production of a more saleable, higher-value end product. The cases presented here take into account a difficult region of reLiebner 5

0.52 M t /a Polypropylene
Figure 5 Block Flow Diagram - PP Complex

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mote/stranded gas as well as contingencies for the newly developed route. With that, the investment cost estimate is fairly high and still an attractive return can be expected as seen in Table 4. For the US$ versus problem please refer to disclaimer at the end of the paper. Table 2 shows as Case A the production costs of intermediates and end product derived for the flow sheet of Figure 5. The corresponding rates of return are given in Table 4. Table 2 Table 2 Capacity Investment Cost EPC Owners Cost incl. Capit. Interest Feed Cost Production Cost - Raw Materials - Utilities - Operation & Maintenance - Plant OVHD & Insurance - Depreciation Credit for by-product Gasoline Cost of Product at ROI = 0 Table 3 Table 3 Capacity Investment Cost EPC Owners Cost incl. Capit. Interest Feed Cost Production Cost - Raw Materials - Utilities - Operation & Maintenance - Plant OVHD & Insurance - Depreciation Credit for by-product Gasoline Cost of Product at ROI = 0 t/a Mio $() Mio $() US$() $()/t $()/t $()/t $()/t $()/t $()/t $()/t $()/t t/a Mio $() Mio $() US$() $()/t $()/t $()/t $()/t $()/t $()/t $()/t $()/t Production Cost, GTP/ PP Complex CASE A: high propylene / low gasoline production GTP 520,000 565 113 Natural Gas 0.5$/MMBtu 210.1 57.1 10.8 29.6 31.6 81.0 -35.7 174 PP 520,000 165 33 Propylene $()/t 261 212.8 6.8 8.6 9.2 23.6 261

Production Cost, GTP/ PP Complex CASE B: low propylene / high gasoline production GTP 440,000 565 113 Natural Gas 0. $/MMBtu 248.6 67.6 12.7 35.1 37.4 95.8 -71.9 177 PP 440,000 165 33 Propylene $()/t 271 215.2 6.7 10.2 10.9 28 271

The remarkable facts here are the low production costs for propylene and for the end product polypropylene. These leave room for healthy profit margins why this route is seen as the most promising and most economic natural gas utilisation of those presented here. Case B as given in Table 3 shows the potential of the same complex to produce a significantly higher amount of gasoline, albeit at the corresponding lower propylene production rate. This was studied as part of a sensitivity and risk analysis. Even in this case far from the original design which is optimised for propylene yield, the rates of return as shown in Table 4 remain impressive. Gastech 2005 Liebner 6

It should be noted that a very low gasoline price of 130 US$/t has been considered in both cases. According to the high quality found by the Statoil refinery lab, higher prices would be justified. With these, the profitability of Case B would increase to nearly this of Case A. This robustness is based on the fact that with diminishing selectivity towards propylene automatically the gasoline yield rises and that never any detrimental by-products are formed. Additionally, all unconverted compounds are recycled as designed for anyway. In other words, the optimum propylene to gasoline ratio will depend on the relative value of the two products. The main product price -polypropylenes- was taken as 650 US$/t, a value slightly below the average since 1990 as quoted by CMAI; recent prices as quoted by ICIS-LOR being well in the 900dreds. With these moderate to low product prices and a reasonable investment cost contingency the economic evaluation presented here is purposefully conservative. Table 4: ROI and IRR, GTP / PP Complex, CASE A, B Table 4 CASE A: high propylene Investment Cost EPC Mio $() 730 Owners Cost incl. Capitalised Interest Mio $() 146 Feedstock Cost Production Cost - Raw Materials - Utilities - Operation & Maintenance - Plant OVHD & Insurance - Depreciation Revenues - Gasoline (130 US$/t) - Polypropylene (650 US$/t) US$() Mio Mio Mio Mio Mio Mio $() $() $() $() $() $() B: high gasoline 730 146

Natural Gas 0.5 $/MMBtu 154.3 49.7 9.1 19.9 21.2 54.4 356.6 18.6 338 150.7 46.6 8.6 19.9 21.2 54.4 317.2 31.6 285.6

Mio $() Mio $() Mio $()

Return On Investment 1) ROI % 23.1 19 Internal Rate of Return 2) before tax IRR % 25.1 20.6 IRR on equity (30% of EPC + owners IRRE% 36.8 30.3 cost) 1) ROI estimate based on ChemSystems methodology, 2) IRR estimate based on COMFAR

Lurgis Fischer-Tropsch Experience

Historically, Lurgi was one of the developers of FT in the 1920-30ties. FT in the form of (fixed bed) ARGEsynthesis was commercialised in 1952 in Sasolburg, RSA. All five original reactors are still in operation. A sixth one was started in 1987 as capacity extension. Modern FT reactor technology prefers slurry phase reactors, either tubular or fluidised bed. Lurgi has commercial experience in all these reactor designs. Also, Lurgi has designed all syngas production units of all currently operating industrial FT-plants: Sasol/Secunda, RSA, utilising coal gasification; Mossgas, RSA, - combined reforming of NG and SMDS Bintulu, Malaysia - partial oxidation of NG. The syngas production route which among others is used for MegaMethanol is offered by Lurgi as MegaSyn and is available for FT syntheses also.

Lurgis Route to Transportation Fuels: MtSynfuels

Given the economically highly attractive technologies of MegaMethanol and MTP as described above it nearly follows by itself to combine them with an industrially proven process for the conversion of olefins to diesel. A gas-based synfuels plant using this process, then named COD (derived from Conversion of low molecular weight Olefins to Diesel), was developed and built by Lurgi for Mossgas (today: PetroSA), RSA, in 1992 and is performing well since its start-up in 1993. Remarkably, the industrial design was based on a scale-up factor of 3600 over the preceding demonstration plant. This basically was possible through the use of fixed-bed catalysis (on zeolite basis) which lends itself to easy scaleup. Other important process features are semi-continuous operation and a 98% conversion of C3- and C4- olefins.

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Figure 6. Gas Refinery via Methanol - Lurgis MtSynfuels

Hydrocarbon Recycle Hydrocarbon Recycle

Kero/Diesel
5,438 t/d

Methanol
15,000 t/d

Olefin Production

Olefin Oligo merisation

Product separation
+ MD Hydrogenation

Gasoline
685 t/d

Water recycle

H2 ,55 t/d, from Methanol synthesis Process water: 7,902 t/d can replace raw water

LPG
579 t/d

sumptions:

The Lurgi route to synfuels, MtSynfuels shown in Figure 6 is a combination of this type of process with MegaMethanol and a simplified MTP. Extensive engineering and estimating studies have been performed to prove the feasibility and economic viability of this new route. Table 5 shows the technical results, the product slate and Table 6 gives the economics as a comparison with an existing FT plant. In an earlier study the authors [Koempel, Liebner, Feb. 2002] have summarised and compared proven and new FT-processes with Lurgis alternative route MtSynfuels. Tables 5 and 6 are taken from this paper. Their comparative economic evaluation is based on the following as-

Table 5. Comparison MtSynfuels vs. FT-Synthesis: Product Slate and Properties Table 5 Product Slate MtSynfuels 1:8 FT Synthesis 1 : 2.3 1 : 6
3)

Naphtha : Kero+Diesel (max.) Gasoline : Kero+Diesel Product Properties Specification (Europe from 2005) Gasoline -Aromatics vol.% max. 35 -Benzene vol.% max. 1 -Sulphur ppmw max. 50/10 1) 18 -Olefins vol.% max. 91/95/98 -RON 2) -MON 2) 82,5/85/88 Diesel -Polyaromatics vol.% max. 11 -Sulphur ppmw max. 50/10 1) 51 -Cetane No. min.
1) 2) 3)

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

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

Diesel with 10 ppmw sulphur has to be available on the market RON / MON for Regular Gasoline / Euro-Super / Super Plus Properties of FT-naphtha

Plant location: Middle East; plant capacity: 50,000 bpd products; NG Price: 0.50 US$/MMBtu Depreciation: 10 % for ISBL, 5 % for OSBL; Return on Investment (ROI): 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. The table shows that MtSynfuels compares well with existing FT plants. Admittedly it lacks full commercialisation, but so do most of the ultra-modern FT processes discussed currently. In contrast to these, MtSynfuels is proven in three of four steps with the demo unit for the third step (MTP) having confirmed the lab results by a 11,000 hours test run. Table 6. Comparative Economics - Cost of Production Estimate Table 6 Total Capital Investment Total Plant Capital MtSynfuels 1,181 MM $() 19,680 $()/bpd existing FT1) 1,671 MM $ 27,856 $/bpd

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NG to Process (LHV) Cat. & Chemicals Utilities Cost of Production + ROI Market Prices - Gasoline - Diesel
1) 2) 2)

3.82 $()/bbl 7.64 MMBtu/bbl 2.19 $()/bbl 0.28 $()/bbl 22.47 $()/bbl [$/bbl] [$/bbl] Western Europe 56.9 48.3

4.22 8.44 1.53 0.8

$/bbl MMBtu/bbl $/bbl $/bbl

28.68 $/bbl US Nymex 51.5 53.6

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

From Gas to Petrochemicals

It has been shown above that propylene produced via MTP competes well with cracker-derived product. In more general terms it develops that the chain of Lurgis technologies described here provides an alternative route to petrochemicals. Almost all steps are technically proven and the economic competitiveness mainly depends on the natural gas price. This again follows from market presFigure 7. Gas-based Petrochemistry sures and the need or willingness to monetise gas reserves. Feedstock Intermediates Petrochemical Figure 7 shows how the convenProducts tional cracker route from crude oil through OIL Aromatics olefinic and aromatic intermediates to conventional route Polyolefins Cracker Benzene PE, PP Toluene highly valued petrochemical products is Acrylates Xylenes complemented -and replaced possibly- by Natural Gas gas-to-methanol-and-others processes. Polycondensates Associated Gas Olefins MTO PC, PET, Ethylene Stranded Gas There is even the possibility to use coal as PBT Propylene emerging route Lurgis Lurgis the primary feedstock for this methanol-toMegaSyn MTP petrochemicals route, an alternative seriSolvents Syngas Methanol ously considered in the PR China which Oxygenates COAL Lurgi Alcohols, Ethers, MegaMethanol lacks large oil or gas reserves but has an future route ? Fuels Esters, Acids, Fuel additives abundance of coal. Aldehydes Lurgis

MTC

Conclusions
There are abundant natural gas reserves providing low cost feedstock for methanol production and aiming at better use of natural resources especially in the case of associated gases being flared. DME and Propylene produced from methanol will increase the value of natural gas considerably and offer an exciting potential of growth and a high earnings level. Lurgis MegaMethanol technology can bring down the net methanol production cost below US$ 50 per ton, wherever low cost natural gas is available. This opens up a completely new field for downstream products like DME, propylene and synfuels. Based on simple fixed-bed reactor systems, conventional processing elements and operating conditions including commercially manufactured catalysts, Lurgis MegaDME, MTP and MtSynfuels technologies provide attractive ways to "monetise natural gas. Driven by the excellent market prospects and additional environmental aspects, Lurgi has developed its own technology chains starting from natural gas via methanol to DME or propylene and polypropylene, based on the combination of highly efficient concepts at low investment costs. In the next step these concepts lead to gas-based refineries and gas-based petrochemicals. This brings us back to the introduction where Figure 1 already presented and summarised the gas to chemicals routes. With the exception of FT and MTO which are offered as licensed technologies, all others depicted here are proprietary technologies a direct result of the high importance Lurgi always attached to natural gas and syngas conversion. MtPower depicts the utilisation of methanol and DME as energy carriers, made possible by the low production costs associated with the Mega-plants. Eventually, financial, strategic and political interests will determine the ultimate selection of any gas-to-value technology. The task of the engineering company is to provide as many attractive alternatives as possible to accommodate for all sorts of local conditions. With the technology portfolio described above Lurgi is up to this challenge. Gastech 2005 Liebner 9

Note on cost estimating / costing studies (Disclaimer) Even the most exiting new technology will remain lart pour lart if it cannot prove its economical viability and attractiveness for operator and investor. In some cases -like MegaMethanol here- success is already proven in the market. For the newest technologies just entering commercialisation, economics are usually demonstrated by thorough engineering and costing studies. Results of those have been published in earlier papers and are discussed here also with one important caveat: Because of the current volatility of steel/equipment prices and of currencies themselves it is next to futile to give generalized costing figures like USGC/ARA/WEU. Each project will have to consider its exact local conditions, physically, financially and currency-wise locking them in at a certain point in time. To reflect this uncertainty we have refrained from simply inflation escalating our studies. Instead, we give cost ranges as defined by the two lead currencies, US$ and Euro (). With the relation between them as of January 2005 the nominal costs in US$ mark the low end of the range and the costs in Euro mark the high extreme. This is visualized by giving both currency symbols in the relevant tables above. Real projects will have differing portions of deliverables from either currency zone, so they will fall between the extremes thus defined. REFERENCES Cedigaz: The 2003 Natural Gas Year in Review, April 2004, www.cedigaz.com Th. M. Quigley and Th. H. Fleisch: Technologies for the Gas Economy, EFI Gas to Market Conference, San Francisco, October 11 13, 2000. S. Streb and H. Ghna: MegaMethanol - paving the way for new down-stream industries, World Methanol Conference, Copenhagen (Denmark), November 8 10, 2000 W. Boll and W. Liebner: Lurgis outlook on DME technologies, DME 1 First International DME Conference, Paris, France, October 12 14, 2004 M. Rothaemel and H-D. Holtmann: MTP, Methanol To Propylene - Lurgis Way, DGMK-Conference Creating Value from Light Olefins Production and Conversion, Hamburg, October 10 12, 2001 H. Koempel, W. Liebner: Gas to Liquids? Gas To Chemicals? Gas to Value!, ERTC Petrochemical Conference, Amsterdam, February 20-22, 2002 M. Rothaemel, H. Koempel, W. Liebner: Progress Report on MTP with focus on DME, AIChE Spring National Annual Meeting, New Orleans, April 25-29, 2004, Session: Olefins Production

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