1 End Uses of Natural Gas

END USES OF NATURAL GAS
20444_a_A_ppt_07 - END USES OF NATURAL GAS
Contents
The gas chain
General presentation of the gas chain

Gas sources
Gas markets
Gas end uses
Transport routes
Chemical conversion routes
Positioning and processing requirements for each monetization

route
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The Gas Chain

PRODUCTION
CONDITIONING/TRANSPORT
PROCESSING
MARKETS
LNG
ENERGY
GAS
CNG
-Residential
-Industrial
-Transport (NGV)
LIQUEFACTION
COMPRESSION
PIPE
Others (e.g. hydrates transport)
Raw gas
GTL / FT
PROCESSING
LIQUIDS
CHEMICAL
CONVERSION
DME
METHANOL
- Fuel oils and lubricants

- Methanol
- Olefins
Olefins/PP/PE
COMPRESSION
Reinjection
(EOR)
LPG CONDENSATES
CO2 Hg
N2
O2
H2O
To market /
Discharged into natural environment
or stored
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H2S
Source: Total
3
Gas sources: natural gas fields

Liquids
Gas Field
Non-Associated Gas
Gas
Water
Associated Gas
Petroleum
Non-saturated oil field
Petroleum
Water
Dome gas
Associated Gas
Petroleum
Gas
Saturated oil field
Petroleum
Water
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Liquids
Gas sources: natural gas fields

Comments on the previous slide
Types of field
Pure gas field containing dry gas, probably associated with water, CO2, nitrogen,
H2S, helium, mercury
Non-saturated oil field: containing petroleum with associated gas, and methane
molecules that will need to be extracted during wellhead processing.
Saturated oil field: containing gas associated with petroleum and gas in solution.
The heaviest dissolved gaseous elements have the same applications as pure gas
fields - for LPG, propane, butane
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When we find gas or petroleum, the information collected during exploratory

drilling undergoes comprehensive evaluation. How much gas is there? What is
its quality? Is it easy to extract? How much will it cost to develop the field? And
finally, the big question: to what extent will the operation be profitable? If the
information seems favourable to investors and customers, drilling starts and
the gas is extracted.
Gas sources: composition of natural gas
LPG
Liquefied
Petroleum Gas
METHANE
C1
ETHANE
C2
PROPANE
BUTANE
C3
C4
PENTANES & HEAVY FRACTIONS:

Pentanes plus
Natural petrol
Condensates
Water
Nitrogen
C5+
NGL
Natural Gas
Liquids
Helium
Impurities
CO2
H2S
Mercury
...
Gas quality has a major economic impact.
The presence of impurities entails higher processing costs, thereby reducing

the profitability of a gas project.
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The presence of heavy components (LPG, condensate) improves the

profitability of a gas project.

Why the gas is processed: the natural gas emerging from the ground is not the
clean gas delivered to consumers. Oil fields contain dissolved gas or gas in
the form of a pocket separate from the liquid. Gas deposits generally contain
hydrocarbons heavier than methane, and those that are liquid at ambient
temperature are known as natural gas liquids.
To be eligible for consumption, and partly for transport purposes, the gas must
have certain essential characteristics:
it must be DRY: containing no WATER or HYDROCARBONS in liquid state
its acidic components and toxic bodies must be eliminated
it must have constant heating value and specific gravity, Wobbe index
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Natural gas quality: some semantics
Lean (Dry) Gas

Rich (Wet) Gas
Sour Gas
Highly (Very) Sour Gas
Acid Gas
Sweet Gas
Low Cal Gas
Low NGL content

High NGL content
Presence of CO2 and/or H2S
High CO2 and/or H2S content
Acidic gases separated from natural gas
(H2S+CO2)
Gas scrubbed clean of acidic constituents
High CO2 / N2 content
Comments
Gases with high NGL content are generally gases associated with a liquid hydrocarbon deposit.
Raw gas from a natural or associated gas deposit may contain acidic impurities: H2S and/or CO2, in greater or lesser quantities.
If the treated gas still contains large quantities of CO2 or nitrogen, it has a low heating value.
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Sweetening these sour raw gases produces a treated or sweet gas and separated acid gases (H2S and CO2 present in the raw gas). This separated
acid gas is generally sent to a sulphur production unit (Claus unit) but can also be reinjected.
Gas markets: energy gas
Gas as an energy source

Fuel:
Residential and commercial
Industrial: heating, steam production, gas turbines
Raw material for electricity production

Thermal power stations
Fuel for transport

NGV: Natural Gas for Vehicles (but limited impact: 60 MMscfd for
500,000 vehicles)
20444_a_A_ppt_07- END USES OF NATURAL GAS
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When the consumer market is a long way away,

costly transport is required
Gas markets: energy gas

Gas is mainly used as a fuel:

for residential and commercial use (heating)
for industrial use (heating, steam production, feeding gas turbines to power rotating
machines)
It is also used in thermal power stations for electricity production
Natural gas can also be used as a fuel in vehicles internal combustion engines. This
requires a suitable infrastructure (network of service stations with gas compression),
and vehicles equipped with compressed gas tanks.
The gas consumer markets are industrialised countries. Natural gas deposits are
generally located a long way from these markets, which means that the gas must be
transported. Gas is more expensive to transport than oil: where petroleum can be
transported at atmospheric pressure in liquid state, gas must be at high pressure or low
temperature to have sufficient specific gravity to make the transport economic.
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10
Gas production, consumption and flows in 2012
COMMENTS
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Source : BP Stat Review 2013
Another way to look at the international gas trade, presently donimated by the import to Europe for pipeline gas, and by Japan/Korea for LNG.
EP - 20500_b_A_ppt_06 - FUNDAMENTALS OF LIQUEFIED NATURAL GAS (LNG)
11
Gas markets: fuel oils, lubricants and chemicals

Converting the gas into liquid products opens up access to new

markets:
The fuel oils and lubricants market
GTL-FT conversion:
Diesel
Naphtha
Lubricants
Conversion to Dimethyl-Ether (DME)

The DME market is developing in several emerging countries
The chemicals and petrochemicals markets

Conversion to Methanol
Conversion to Olefins
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Converting gas to liquid products facilitates market access

by reducing transport costs, but this involves high
investment
12
Gas markets: fuel oils, lubricants and chemicals

Chemical conversion of gas into liquid products, with higher molar mass, facilitates its
transport.
Gas can be converted into liquid hydrocarbons, gas oil or lubricants, via Fischer-Tropsch
conversion.
It can also be converted into DimethylEther. DME is used as a fuel for vehicles, instead
of LPG. This requires a suitable infrastructure, which certain emerging countries are
putting in place.
Gas can also be chemically converted into methanol, and then possibly into olefins.
Liquid hydrocarbons generally fetch a higher price than natural gas. So the FischerTropsch conversion can also ensure greater profitability of the gas.
On the other hand, chemical conversion facilities are very large and expensive. They are
also highly energy-consuming.
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Gas markets: use in hydrocarbon production
Gas is used for enhanced liquid hydrocarbon recovery

EOR (Enhanced Oil Recovery)
Gas is also used to satisfy the internal consumption needs of

hydrocarbon production and processing centres
Steam generation
Electricity generation
Powering rotating machines
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Gas markets: monetization routes
Domestic gas
CONVERSION
TRANSPORT
Gas pipeline
GTL/FT
Fuel oils /
Lubricants
&
Chemicals /
Petrochemicals
markets
DME
Natural
or associated gas
LNG
Onshore
Offshore
CNG
Energy gas
market
NGH
METHANOL
GTW
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Used by the
hydrocarbons producer
15
Gas markets: monetization routes

Gas is a low concentration energy (a volume of gas under ambient conditions has approximately
1000 times less energy than the same volume of petroleum), and commercial exploitation of gas
resources when there is no nearby domestic market is always confronted with the problem of
transporting or converting the gas for sale for end use on a distant market.
The choice of technology to be adopted must be examined on an individual basis, but the main
means for transport remain: gas pipeline, LNG (including mini-LNG), GTW (Gas to Wire) i.e.
converting the gas into electricity, CNG (Compressed Natural Gas) and NGH (Natural Gas Hydrates).
The target end markets are the gas and/or electricity markets.
As regards conversion, with petrochemicals and fuels as the end markets, the currently feasible
means are: methanol and GTL, and DME (DiMethyl Ether).
Historically, the first target market was gas and energy, via pipelines and LNG, but the attraction of
the liquid markets - bigger, more flexible and with higher added value has driven the
development of these new technologies.
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Contents
The gas chain
Transport routes
Gas pipeline
Liquefied gas (LNG)
Compressed gas (CNG)
Transport in the form of hydrates (NGH)
Gas to wire (GTW)

route
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Gas pipeline: principle
The mostly used transport

route
A gas pipeline comprises:

a transport pipe
compression stations
Gas pipelines
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Recompression
stations
Collection
Processing
Terminal - storage
18
Gas pipeline: principle

Gas pipelines were the first equipment used for transporting gas over long distances from the
production site to the consumption site. A gas pipeline essentially comprises a gas transport line
and compression stations designed to compensate for pressure losses due to gas friction as it
flows.
A gas pipeline chain comprises the following stages:
This mature and simple technology poses the following drawbacks: incompressible investment,
geopolitical risks associated with the countries crossed, difficulty in installing new pipelines in
highly urbanised areas and technical feasibilities (trenches, seismic hazard zones)
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collection of effluent from the various wells

processing of the gas produced to bring it up to the transport specifications: separation of the heaviest
hydrocarbons and dehydration to prevent risks of condensation, hydrate formation and corrosion; this
treatment may be supplemented by sweetening
gas compression if the wellhead pressure is insufficient (especially in the deposit depletion phase)
transport through the pipeline
recompression during transport, for long distances, to prevent an excessive pressure drop
any additional processing to bring the gas up to the distribution specifications
storage and transfer to the distribution network
distribution of the gas.
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Gas pipeline: sizing
Flowrate (MSm3/h)
SIZING OF MAIN GAS PIPELINE
Service pressure: 90 bar 50 bar before recompression

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Length without recompression (km)
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Gas pipeline: sizing

This graph suffices to determine an initial sizing estimate for transporting gas via
pipelines.
Based on the chart on the right and the pre-determined hypotheses, for lengths without
recompression between 100 and 1000 km, and pipe diameters of between 24 and 56,
a gas pipeline can transport up to 6-7 MSm3/h, i.e. approximately 5500 MMscfd.
Note that beyond 48, pipelines must adhere to local legislation. Currently, only Russia
permits pipeline diameters of 56.
Similarly, the maximum pressure in an onshore pipeline is limited by the countrys

legislation. Generally, the maximum value is 80 bar. Exemptions have been granted up
to 100 bar, following negotiations with the authorities.
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Gas pipeline: selection criteria
Advantages
Important orders of magnitude:
Consumption of 1 % per 1000 km

Mature
1.5 to 2 kT CO2/MMBoe
Relatively simple
Efficient, and low CO2 emissions
No restrictive specifications
Economical for short distances
Applicable to all types of reserves in principle
Drawbacks
Location constraints highly case dependent
Long-term fixed transport installation
Sensitivity to geopolitical risk
Not economical over long distances
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LNG: the LNG chain

Liquefaction, transport and regasification

Train capacities: from 1 to 8 MTPA
Transport: atmospheric pressure and T=-160
C
1 m3 of LNG = 580 Sm3 of natural gas
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LNG: the LNG chain

Liquefaction is a technology used for condensing natural gas, with a high volume reduction factor:
580 m3 of natural gas per m3 of LNG. The gas is transported in liquid form at atmospheric pressure
and at a temperature close to - 160
C. The quantities used by an LNG project are always large (> 3
3
MTPA, i.e. 4.5 billion m /year), and generally supply regasification terminals serving national
distribution networks, except for Japan, where certain terminals only supply power stations.
An LNG transport chain comprises the following main stages:
This mature technology has the following advantages: greater flexibility than pipelines, high
efficiency. On the drawbacks side, it is highly capital-intensive, and requires long-term contracts.
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processing and transport by gas pipeline to the coast

processing of produced gas to bring it up to the requisite specifications for liquefaction (deep sweetening,
dehydration, removal of heavy metals)
liquefaction of gas, possibly accompanied by recovery of Liquefied Petroleum Gases (LPG) for separate end
use
storage and loading (shipping terminal)
transport by methane tankers
receival and storage
regasification.
24
LNG: liquefaction
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With 8 production trains, the plant has reached a capacity of

22.25 MT/year of LNG + 1 Mt/year of LPG + 10 Million b/year of condensates
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LNG: comparative transport costs

5
$/MMBtu
High-cost
gas pipeline
4
Low-cost
gas pipeline
3
LNG
Oil tankers
Oil
pipeline
km
Heavy investment: ($/mmbtu)
160
0
320
0
400
0
Production: 0. 2.5
Processing: 0.1 0.25 * 3 offshore
Transport: 0.5 4.5
Distribution: 1.2 2.8
TOTAL: 2.1 10.5
640
0
800
0
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80
0
Comments
26
LNG: selection criteria
Advantages
Mature, except for offshore LNG (FLNG)

Efficient for transport
Economical over long distances
Storage
Flexible for downstream
Important orders of magnitude:

CO2 spec of feed gas: CO2 < 50 ppm
Liquefaction cons.: 10-15 %
Transport cons.: 0.4 %/1000 km
Regasification cons.: 0.5-1.5 %
Liquefaction
emissions:
35-45
CO2/MMboe
NG reserves : large
kT
Drawbacks
High investment required
Tough location and installation constraints
CO2 specifications
High internal consumption and CO2 emissions
Uneconomical over short distances
Economical for large gas reserves
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CNG: principle
Pressure (bar.a)
m3 gas/m3 transported
Vapour
Liquid
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Temperature (C)
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CNG: principle
This graph positions the various CNG technologies in pressure and temperature terms in relation to
one another and to LNG. As a reminder, LNG - Liquefied Natural Gas - is a gas condensed at a
temperature of 160C and at ambient pressure.
8 different CNG technologies - of varying maturity , as we will see later - are currently available on
the market. They function in two fairly distinct pressure and temperature ranges. The first,
qualified as High Pressure, is associated with ambient temperature, which gives operating
pressures for CNG cylinders of approximately 200 to 250 b. The second is a medium pressure
region (around 120/130 b) associated with a lower temperature of around 30C.
The efficiency gain obtained by cooling the gas operates on 2 levels:

The volume occupied by the gas is reduced as a function of the temperatures ratio (PV/T = cste)
At low temperatures, the behaviour of the gas increasingly diverges from the ideal gas law, the
compressibility factor expressed in the formula (PV = nZRT) drops steeply, which results in a steep increase
in the compression ratios. Conversely, employing low temperatures makes the whole export chain more
complex
These combinations can achieve ratios of gas volume under standard conditions to volume transported of
230 to 290 m3/m3. This is to be compared with the ratio of 580/600 obtained for LNG.
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CNG: principle
Gas transported in dense state:

either at ambient temperature and P = 250 bar
or T = 30
C and P = 120 bar
CNG downstream
process
CNG upstream process
CNG fleet
CNG export method
Unloading system
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Loading system
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CNG: principle
The principle of gas transport as CNG is based on obtaining a gas in dense phase state through
compression at ambient temperature or low temperature (approx. 30
C). The fluid obtained
3
reaches densities of around 150 to 250 kg/m , as compared with 500 kg/m3 for LNG.
The gas is processed upstream in order to achieve the transport and, where relevant, commercial
specifications and is then transported (by ship or truck) to the downstream processing site, where
it will be transferred to a local market.
This technology seems to be a valid alternative to LNG and pipelines for certain cases (small
quantities of gas and short distances) but, as at 2012, there are not yet any operational references
for sea transport, although there are land transport references by truck in Argentina, for example.
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CNG: selection criteria

Advantages
No very restrictive
specifications
Makes short distances
economical
Offshore production
Important orders of magnitude

Km 0 consumption: 12%
Transport consumption: 1%/1000 km
Total emissions over 2000 km:
30 kT CO2/MMboe
NG reserves : low, average
Drawbacks
No commercial application with
transport by ship in 2012
Inefficient for transport
High costs
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Transport in the form of hydrates (NGH): principle
After CNG, now lets look at methane hydrates as a gas transport solution. With CNG, the gas is compressed to concentrate it; with liquefaction
we turn it into a liquid through condensation; and with hydrates we turn it into a solid by trapping gas molecules in crystalline water structures.
The diagram positions the hydrate formation region in pressure regions of around 40/50 bar and at positive temperatures. Then the hydrates
are cooled and the pressure returned practically to ambient pressure. A metastability phenomenon revealed by the Norwegians enables
hydrates to be kept stable for transportation.
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Comments
33

Gas transport in solid form:

at atmospheric pressure and T = 20
C
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Major drawback: transport of 85% water (by mass)
34

Natural gas hydrates offer a means of storing large quantities of gas with a volume reduction
factor of around 180 (less advantageous than LNG 600 - and CNG 300 on average). They are
also stable under normal conditions. NGH consists in using gas hydrates to transport the gas in
solid form at atmospheric pressure and at a temperature of approximately 20
C. It is defined by
the following stages:
Production: the gas from a field is injected into a reactor at a temperature of approx. 10
C and a pressure
of 60 bar where, in contact with water, it will be trapped in the form of hydrates.
Transport: the hydrates are transferred to a ship and transported from the production site to the
distribution site.
Regasification: close to the distribution market, the hydrates are dissociated and the gas is distributed.
NGH is immature and does not seem to have great potential, in the short term at least.
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20444_a_A_ppt_07- END USES OF NATURAL GAS
35
Transport in the form of hydrates (NGH): selection criteria
Advantages
Transport
pressure
at
atmospheric
Drawbacks

Km 0 cons.: 4-5 %
Transport cons.: 3 %/1000 km
Total emissions over 3000 km: 50 kT
CO2/MMBoe
NG reserves : very small
Immature, industrial feasibility

not proven. 2015-2020
deadline?
Transports 85% water (by
mass)
Inefficient
High costs
Very low gas reserves
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Gas to wire (GTW): principle
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37
Gas to wire (GTW): principle

One of the solutions for transferring medium quantities of gas to the markets is to convert it into
electricity. This technology, dubbed GTW (Gas to Wire), has numerous advantages:
electricity is the energy source most easily usable by the consumer and also offers significant growth
prospects
deregulation of the electricity market in many countries offers the opportunity to become a producer
using gas as a fuel makes GTW an ecologically clean sector
the cycles used are efficient compared to other means of electricity production.
GTW also has drawbacks:

given the large quantities of electricity produced, you need a market able to provide outlets for it. In many
potentially GTW candidate countries, the local market can only absorb a small proportion of the electricity
produced. The rest must be transported over distances of thousands of km, which is costly, involves
substantial losses and exposes the installations to sabotage.
a power station requires a stable supply chain over a period of at least 20 years. A gas production profile
associated with oil production often peaks before rapidly falling. So GTW will be more suitable for natural
gas deposits.
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GTW: combined cycle power station
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GTW: combined cycle power station

The combined cycle uses the heat from the gas turbine exhaust gases to generate steam, which
expands in a turbine until it condenses. Hence the power of the gas turbine is increased by one
third and the net overall ISO efficiency may reach 58%. The main parts in a combined cycle are the
gas turbine, the recovery boiler, the steam turbine, the condenser and electricity generator.
The condenser uses ambient air or water to condense the steam; the choice of condenser type
depends on the local water resource, and directly influences the combined cycle performance.
A combined cycle brings numerous advantages:
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high efficiency, i.e. electricity production at minimum costs

partial-load operation can be optimised by adjusting the power station configuration (3*33 % or 2*50 %)
high availability (92% on average over a year) if the maintenance program, concentrated within the offpeak period, is observed
flexibility of use, especially with the Single-shaft configuration
small workforce (54 people for a 1260-MW power station)
investment cost lower than for a steam power station
short construction time (25 months for a standard module)
lower atmospheric emissions
40
Gas to wire (GTW): efficiency
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Gas to wire (GTW): efficiency

Continuous transport of electrical energy
DC (direct current) transport has numerous advantages over AC (alternating current) transport:
lower line installation cost

smaller line losses
possible interconnection of networks operating at different frequencies
continuity of service in case of failure
highly flexible operation
Conversely, the major drawback of DC transport is the obligation to install at each line-end an
AC/DC conversion station, which is expensive (approx. $175 million (in 2000) for 1000 MW in +/500 kV). However, beyond a certain transport distance, the savings generated by the lower
installation cost of a DC line compensate for the expense of building conversion stations.
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GTW: combined cycle organisation

BangBo - ABB/Alsthom technology
Cooling tower
Water treatment
Discharge water
Heat recovery steam generator
Gas compressor
Gas inlet
Fuel storage
Clean water tank
HV zone
Turbine buildings
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Gas to wire (GTW): selection criteria
Advantages
Mature technology
Attractive thermal efficiency and costs
Open electricity market
Rapid implementation (construction 2
years)
Operating flexibility
No special constraints

1 MSm3/d gas = 250 MWe (combined
cycle)
Electricity
generation
efficiency
(combined cycle): ~ 50 %
NG reserves : small
Drawbacks
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Economical for capacities

< 1000 MW
Not economical over long
distances (> 1500-2000 km)
Very high surface area
of AC/DC and DC/AC conversion
stations
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Contents
Gas chain
Transport routes

Fischer-Tropsch (GTL/FT)
DiMethyl-Ether (DME)
Methanol and other chemical sectors

route
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Chemical conversions
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Chemical conversions
Another way of commercialising natural gas is to chemically convert it into liquid products, more
easily transportable under ambient conditions. There are various methods, but the first stage
common to every case is conversion of natural gas into synthesis gas with catalysts (SMR, ATR,
catalytic POx) or without catalysts (gas POx), a mixture of carbon monoxide (CO) and hydrogen
(H2). The H2/CO ratio of the synthesis gas produced must differ according to the target end product.
The products examined in this study are:
the Fischer-Tropsch process, producing Diesel and naphtha

methanol
DME: only the direct process is examined here, as it maximises energy efficiency
These differ widely in terms of target markets and their size. The technical constraints (process,
location, etc.) vary.
For information, the optimum stoichiometric ratios at the synthesis gas production outlet are as
follows:
GTL/FT: H2/CO = 1.7 for iron-based catalysts and H2/CO = 2 for cobalt-based catalysts
Direct DME: H2/CO = 1
Methanol H2-CO2 / CO + CO2 = 2
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GTL/FT: brief history
1920
1940
1924
German discovery
Conversion of CO & H2
into hydrocarbon
F.Fischer & H.Tropsch
1935
WWII
1960
1955
1980
1980-82
2000
1990-2000
2006 2007
1993
1st Industrial FT
Atmospheric fixed bed
reactor - Rhurchemie
SASOL I
Iron Medium Pressure
Synthesis commercialized by
Rhurchemie and Lurgi
(8,000 BPD)
9 FT Plants
built in Germany
Support German petroleum
independency during WWII
(~16,000BPD)
SASOL II & III

150,000 BPD plant in South
Africa, Fe catalyst and
Circulating Fluidized Bed
Reactor
ORYX (QP+SASOLChevron)
34,000 BPD plant in Qatar Co Cat. Slurry Reactors.
Synthol CFB Reactors
WWII German Low

Pressure Reactors
ARGE
Fixed Bed Reactor
SHELL BINTULU
12,500 BPD plant in
Malaysia, Co catalyst Fixed
Bed Reactor
PEARL
(QP+SHELL)
2x70,000 BPD plant in Qatar
- Co Cat. Fixed bed Reactors.
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Patent granted to Fischer

& Tropsch
SASOL
Dev. of Advanced Synthol
Process
SASOL II & III Reactors
Replacement
Source: Total
48
GTL/FT: principle
Production of liquid hydrocarbons from natural gas in 3 stages:

Synthesis gas generation - highly endothermic
Fischer-Tropsch synthesis - highly exothermic
upgrading
Light HC (used as fuel
H2O and/or O2
Fields
Pretreatment
Synthesis gas
generation
Steam
FischerTropsch
synthesis
gas or syngas load)
Waxes and
Hydro-treatment
condensates Hydro-cracking
Water
(+ lube bases)
Local or
transport
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Diesel
+
Paraffin naphtha
MARKETS:
Local or
transport
Petrochemicals
49
GTL/FT: principle
Chemical conversion of natural gas via Fischer Tropsch synthesis, often known as GTL/FT, produces
liquid hydrocarbons such as gas oil or kerosene. It follows the three main stages below:
conversion into synthesis gas (syngas), a mix of carbon monoxide and hydrogen
Fischer Tropsch synthesis: primarily paraffin-like, very long carbon chain compounds, known as waxes
upgrading into lighter hydrocarbons by means of hydro-treatment units, to obtain primarily diesel (75%)
and naphtha (25 %).
A successful GTL chain necessarily means integrating the three units, and this demands highly
specialised know-how.
This highly capital-intensive technology has few operational references, low efficiency and high
CO2 emissions, but it opens up access to the huge fuels market.
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GTL/FT: synthesis gas generation
1.
SMR
Boiler zone
S/C > 2.5

T: 850-900C
P ~ 20 bar
H2/CO ~ 4.8
flue gas
Prerefor
mer
Radiant zone
(naked flames /
tubes filled with catalyst)
steam
Desulphurised
natural gas
(ppbs S)
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air
synthesis gas
to process
fuel gas
51
2.
POX
S/C < 0.2

T ~ 1350C
P ~ 60 bar
H2/CO <1.9
Advantages:
Constraints:
High conversion
High CO/CO2 selectivity
H2/CO ratio close to optimum for F-T
Need for additional SMR
High outlet T
Air separation plant
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3.
ATR
S/C ~ 1.2
T ~ 1050C
P ~ 20-50 bar
H2/CO ~2.6
Combining POX and catalytic reforming
Constraints:
CO2 recycling, F-T purge

Air separation plant
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N.B. there is air ATR, with constraints

downstream due to high nitrogen load
53
GTL/FT: the Fischer-Tropsch stage

Main reaction
n CO + 2n H2 -(CH2)n- + nH2O + n x 165 kJ
primarily: mix of paraffins C1->C200

olefins
alcohols, acids, oxygenated solvents
volume water ~ volume HC
no sulphur or aromatics
Catalyst: iron based or cobalt based

Reactor: multi-tube fixed bed or slurry
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Technological options
54
GTL/FT: selection criteria
Advantages
Usable over a wide range of
capacities
Efficient to transport
No market constraint
H2S < 0.1 ppm

Energy efficiency: 42-52%
Emissions: 150 kT CO2/Mmboe
NG reserves : average to large
Drawbacks
Oryx Sasol /QP: 34,000 bpd

2013 - IFP Training
H2S specifications
High energy consumption and
high CO2 emissions
High
technical
cost
(compared to other types of
conversion)
Complexity due to various
types of product
55
DME: principle
Two processes:
Pilot Plant in JFE Tsurumi Factory
direct conversion or via methanol

Two different markets:

chemicals (
olefins) and energy (fuel
for vehicles)
2013 - IFP Training
56
DME: principle
Todays global DiMethylEther (DME) market represents 150,000 tonnes per year, and encompasses
aerosol applications, particularly in the field of cosmetics. Since this application is already mature
and the market very small, DME could be used as diesel fuel in appropriate engines (clean gas fuel),
as fuel in energy production turbines or in domestic applications. With the chemical formula CH3O-CH3, DME is gaseous under normal conditions and its physical characteristics are very similar to
those of LPG.
There are two types of process for synthesising DME, either directly, or via methanol as the
intermediary.
The direct process optimises energy efficiency: the potential maximum efficiency (65-70%) appears
to be the best of the conversion processes.
There are a host of technology licensors for the indirect process: TOPSOE, LURGI, TEC and MGC. At
present, only JFE fully masters the direct process.
2013 - IFP Training
57
DME: selection criteria
Advantages
Lower CO2 emissions than
GTL/FT
Single product
Possibility of mixing with LPG
H2S < 0.1 ppm

Energy efficiency: 60%
Emissions: 75 kT CO2/MMboe
NG reserves : small
DME is supplied from 100t/d Demonstration Plant at Kushiro
Drawbacks
2013 - IFP Training
H2S specifications
Immature: no commercial
installation in 2011 (one in
project)
Markets to be developed
58
Methanol: principle
3 stages:
Synthesis gas generation
Methanol synthesis
Distillation
2013 - IFP Training
59
Methanol: principle
Methanol is the simplest alcohol, with chemical composition CH3-OH, and is used primarily as a
base compound in the chemicals industry. Methanol fuel is very little used at present. The main
outlet today (approx. of worldwide production) is in the manufacture of chemicals, primarily
formaldehyde. Then comes manufacture of MTBE (approx. 1/4 of the market), an additive added
to petrol to increase its octane rating. It is synthesised in three stages, as in the case of Fischer
Tropsch synthesis:
synthesis gas production

methanol synthesis
purification of end product
For the moment the methanol route is essentially limited by the market size.
The first cases of a methanol production rate exceeding 1000 t/d date back to the 1980s. The
plants are located chiefly in gas-producing countries.
2013 - IFP Training
60
From gas to plastics: principle

4 stages:
synthesis gas generation

methanol or DME synthesis
conversion into olefins (MTO / DTO)
polymerisation
Integrated MTO - PE-PP
Natural gas
Coal
Methanol
Plant
MTO
Syngas
Plant
indirect
direct
DME
Plant
+ OCP
Plant
Polyethylene
Plant
Polypropylene
Plant
Source: Total Petrochemicals
2013 - IFP Training
MTO: Methanol to Olefins

DTO: Dimethylether to Olefins
OCP: Olefin Cracking Process
61
Methanol: selection criteria

Advantages
Mature
More efficient and lower CO2
emissions than GTL/FT
The cheapest of the conversion
routes
Single product
H2S < 0.1 ppm

Energy efficiency: 65%
Emissions: 75 kT CO2/Mmboe
NG reserves : small
Drawbacks
2013 - IFP Training
H2S specifications
Market constraint: economy
of scale required, but
difficult due to the tight
market
62
Contents
The gas chain
Transport
Chemical conversion

route
2013 - IFP Training
63
Positioning for each monetization route

Reserves
10 TCF
5 TCF
GAS PIPELINE
LNG
CNG
DME
MeOH
Distances to 500
market
GTL
1000
10 000 km
GAS PIPELINE
LNG
CNG
GTL / MeOH / DME: distance to market: no real impact
Energy Eff.
50 %
60 %
70 %
90 %
80 %
LNG
CNG
GTL
MeOH
DME
2013 - IFP Training
GAS PIPELINE
64
Positioning for each monetization route

Gas pipelines transport medium-to-high volumes of gas over distances of thousands of km. They
remain a rigid solution, sensitive to geopolitical risks. They are also limited by geographical
constraints (e.g. ocean trenches).
To transport gas over very long distances, LNG is the most economical solution but as it is
expensive, the economy requires high volumes of gas.
CNG is more suitable for small volumes of gas and short distances (up to 1,000 km).
The conversion processes all have lower energy efficiencies than the transport alternatives. The
market for the Fischer-Tropsch method products is not limited, unlike the DME and methanol
method markets which are very limited.
2013 - IFP Training
65
Commercial specifications of gas

Interchangeability: measured by Wobbe index

3 categories of countries for gases:
Specific gravity of
methane = 0.555
IW =
PCS
dgaz
dair
Asian
Countries
RICH GASES
Specific gravity for

black flue gas = 0.7
United States and

United Kingdom:
LEAN GASES
European
countries: future
EASEE-gas standard
2013 - IFP Training
Nitrogen
66
Commercial specifications of gas

There are several kinds of commercial specifications:
toxicity and corrosion (max. content of oxygen and sulphur-based compounds)

formation of hydrates and liquid (water and hydrocarbons dew point)
interchangeability
Interchangeability characterises the composition thresholds and properties of the gases, to ensure
satisfactory operation of devices running on gas, and is measured by the Wobbe index. It is
important this should remain as constant as possible. We therefore give an upper and lower
threshold value for this index, and combustion emissions can be controlled, burner efficiency is
improved and the operating conditions of this equipment are secured.
This positioning enables us to determine the type of composition possible for an H type gas (high
heating value): so lean gases will contain little C3+ and may have relatively large proportions of
nitrogen. Gases for Japan, on the other hand, must be low in N2 and rich in ethane and propane.
Certain gases, known as L gases (low heating value), contain more inert gas and have Wobbe index
values below 47 MJ/Nm3, and so are not interchangeable with any current specifications. This is
the case for certain fields in Thailand and the Groningen gas reserves in the Netherlands, for
example. So with very little or no pre-treatment, these gases must be distributed in a different
network.
2013 - IFP Training
67
Technological specifications
3 families of routes for the H2S/CO2 grid

4
3
2
H2S, total S or
H2S+COS
specifications
EASEE-gas: European Association for Streamlining of Energy Exchange - gas

2013 - IFP Training
EASEE-gas: H2S+COS < 3 ppm and total sulphur < 19 ppm

L gas: CO2 spec at 25% mol for the Thai network for example
68
Technological specifications
It is important to stress that the EASEE-gas H2S specification is more precisely a specification
limiting H2S + COS to 3 ppm.
Gas monetization routes fall into three categories:
LNG, for which the constraints are both technological (CO2 which must be removed to prevent it from
crystallising and clogging the equipment in cryogenic zones) and commercial
the conversion routes, where there is no reason for commercial gas specifications, leaving only H2S content,
which is highly restrictive (H2S is poisonous to the catalysts used, even at low concentration)
gas pipelines, CNG and methane hydrates: only commercial specifications (H2S, CO2) are genuinely
restrictive.
2013 - IFP Training
69
Quiz
True
The gas chain includes a gas treatment stage, followed by transport to the consumer markets.
False
...
It also includes a gas conditioning stage (compression, liquefaction) for transport to the energy gas markets, or a chemical conversion
stage for conversion before the transport stage.
All technologies involving chemical conversion of the gas start with a synthesis gas generation stage
Yes. The synthesis gas is then converted into liquid hydrocarbons (GTL-FT), methanol or DME.
...
LNG is more economic than gas pipeline transport over distances of more than 3,000 km.
True, insofar as it is possible to transport the gas by sea; otherwise land transport of large quantities of LNG is impossible.
...
All gas liquefaction plants are located on the coast
..
...
Liquefied
gas is effectively transported over long distances in methane tankers. If the gas deposit is far from the coast, it is preferable
to transport gas in a pipeline as far as the coast, and liquefy it at the methane tanker loading site.
Conversion of gas into DME has good energy efficiency, better than GTL-FT and equivalent to that of LNG
.....
DME is more energy-efficient than GTL-FT (70% vs. 60%), but less efficient than LNG (80-85% efficiency)
CNG can be used to exploit very large gas reserves (more than 5 Tcf), but over relatively short distances
(< 1000 km)
..
CNG is denser than LNG
...
False. The specific gravity of LNG is 580 times denser than gas under standard conditions; the specific gravity of CNG is between 295
..and
320 times that of gas under standard conditions, depending on the CNG process used.
2013 - IFP Training
No, CNG is suitable for medium-sized gas reserves (less than 2 Tcf), over relatively short distances.
...
70
Key points to remember

The gas chain comprises several stages: production and processing, conditioning
or chemical conversion, and transport to the consumer markets.
The gas markets are generally a long distance away from the production sites.
Gas may be transported by means of a gas pipeline (gaseous at ambient

temperature and at high pressure), by methane tankers (liquid at 160C and
atmospheric pressure) or under intermediate conditions (CNG).
Chemical conversion enables us to reach the fuel oils and lubricants markets
(GTL/FT, DME) or the chemicals market, while facilitating transport but at the
cost of major investment.
The monetization route must be selected on an individual basis, according to the

markets available and the economy of each route (dependent on the size of the
reserves, the product value and the transport cost).
Gas processing must be suited to the monetization route, so as to satisfy the

commercial specifications of the finished product, but also the technological
specifications specific to each route.
2013 - IFP Training
71
Approximate conversion factors
Chaleur
/ Energie
Heat / Energy
Million Btu (MMBtu)
GJ
1
Mcal
250
kWh
300
Flow rate
Dbit
Volume
cubic meter (cm)
Heating
Value
Valeur
Calorifique
Btu/cf
1000
cubic feet (cf)

35
Mcal/m3
9
Million cubic feet per day

(MMcfd)
100
Btu/m3
35 000
Mj/m3
35
Billion cubic
meter per year
(Bcm/y)
1
kWh/m3
10
Equivalences
1 bep
1 t1charbon
t coal
t (LNG)
t (GNL)
m3m3
(LNG)
(GNL)
2,5
m3 (gas)
m3
(gaz)
1500
MMBtu
53
kWh
15 000
m3
m3(gas)
gaz
180
750
2013 - IFP Training
Gaz
naturel
liqufi
Liquefied
natural
gas
MMBtu gaz
6
25
72

1 End Uses of Natural Gas

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1 End Uses of Natural Gas

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END USES OF NATURAL GAS

20444_a_A_ppt_07 - END USES OF NATURAL GAS

The gas chain

General presentation of the gas chain

Chemical conversion routes

Positioning and processing requirements for each monetization

20444_a_A_ppt_07 - END USES OF NATURAL GAS

2013 - IFP Training

The Gas Chain

Others (e.g. hydrates transport)

- Fuel oils and lubricants

2013 - IFP Training

Gas sources: natural gas fields

Non-saturated oil field

20444_a_A_ppt_07 - END USES OF NATURAL GAS

2013 - IFP Training

Gas sources: natural gas fields

20444_a_A_ppt_07 - END USES OF NATURAL GAS

2013 - IFP Training

When we find gas or petroleum, the information collected during exploratory

Gas sources: composition of natural gas

PENTANES & HEAVY FRACTIONS:

Gas quality has a major economic impact.

The presence of impurities entails higher processing costs, thereby reducing

2013 - IFP Training

The presence of heavy components (LPG, condensate) improves the

Gas sources: composition of natural gas

20444_a_A_ppt_07 - END USES OF NATURAL GAS

Gas sources: composition of natural gas

Natural gas quality: some semantics

Lean (Dry) Gas

Low NGL content

20444_a_A_ppt_07 - END USES OF NATURAL GAS

2013 - IFP Training

Gas markets: energy gas

Gas as an energy source

Raw material for electricity production

Fuel for transport

20444_a_A_ppt_07- END USES OF NATURAL GAS

2013 - IFP Training

When the consumer market is a long way away,

Gas markets: energy gas

Gas is mainly used as a fuel:

It is also used in thermal power stations for electricity production

20444_a_A_ppt_07 - END USES OF NATURAL GAS

Gas production, consumption and flows in 2012

2013 - IFP Training

Source : BP Stat Review 2013

Gas markets: fuel oils, lubricants and chemicals

Converting the gas into liquid products opens up access to new

Conversion to Dimethyl-Ether (DME)

The chemicals and petrochemicals markets

20444_a_A_ppt_07 - END USES OF NATURAL GAS

2013 - IFP Training

Converting gas to liquid products facilitates market access

Gas markets: fuel oils, lubricants and chemicals

20444_a_A_ppt_07 - END USES OF NATURAL GAS

2013 - IFP Training

Gas markets: use in hydrocarbon production

Gas is used for enhanced liquid hydrocarbon recovery

Gas is also used to satisfy the internal consumption needs of

20444_a_A_ppt_07 - END USES OF NATURAL GAS

Gas markets: monetization routes

20444_a_A_ppt_07 - END USES OF NATURAL GAS