Gas Monetisation Transformation vs. … Monetisation Transformation vs. Transportation Review of the...
Transcript of Gas Monetisation Transformation vs. … Monetisation Transformation vs. Transportation Review of the...
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)
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• 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
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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
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• 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
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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.
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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.
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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).
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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
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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
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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)
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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
Desulph.
PSA
CO2 RemovalCO Shift1°Reformer 2°Reformer
NG
O2/Air
CO2
H2
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Desulph.
Membr./Crio.
CO2 RemovalCO Shift1°Reformer 2°Reformer
Methanation
CO
Syngas(NH3, MeOH, GTL)
Syngas production
NG
Desulph.
PSA
CO2 RemovalCO Shift1°Reformer 2°Reformer
O2/Air
CO2
H2
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Desulph.
Membr./Crio.
CO2 RemovalCO Shift1°Reformer 2°Reformer
Methanation
CO
Syngas(NH3, MeOH, GTL)
Syngas production
Desulph.
PSA
CO2 RemovalCO Shift1°Reformer 2°Reformer
NG
O2/Air
CO2
H2
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Desulph.
Membr./Crio.
CO2 RemovalCO Shift1°Reformer 2°Reformer
Methanation
CO
Syngas(NH3, MeOH, GTL)
Syngas production
Desulph.
PSA
CO2 RemovalCO Shift1°Reformer 2°Reformer
NG
O2/Air
CO2
H2
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Desulph.
Membr./Crio.
CO2 RemovalCO Shift1°Reformer 2°Reformer
Methanation
CO
Syngas(NH3, MeOH, GTL)
Syngas generation summary
Product H2/CO ratio
Acetic Acid 1:1
Methacrylic Acid 5:4
Glycol 3:2
Acetaldehyde 3:2
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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)
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• 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.
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
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• 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
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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
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Source: Merchant Research & Consulting ltd
Fischer-Tropsch Synthesis
Tail gas
HER
Tail gas
External recycle to ATR
Off gas
Off gas
Internal recycle HER condensate
Fischer Tropsch (FT) Gas-to-Liquids
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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
Fischer Tropsch (FT) Gas-to-Liquids
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Source: Sasol – 2003 AIChE Meeting, New Orleans
Product Upgrading
Fischer Tropsch (FT) Gas-to-Liquids
Hydrogen
HER condensate
GasHydrotreating
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Hydrocracking
FractionationF-T wax
Hydrogen
LPG
Naphtha
GTL fuel
Fischer Tropsch (FT) Gas-to-Liquids
• 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.
Ammonia & Fertilisers
• 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.
Ammonia & Fertilisers
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 & Fertilisers
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
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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