Gas Monetization via Emerging mini-GTL Options
GLOBAL METHANE INITIATIVE Middle East Meeting Washington, October 2-3, 2012 Dr. Theo H Fleisch
GGFR Study with Final Report in February 2012
Study Lead: Martyn Howells Bent Svensson Study Research: Theo Fleisch Time: 1H 2011 Update in February 2012
Available to GGFR members
Major Conclusions
Large scale GTL technologies are proven and profitable (Shell, Sasol , Methanex, etc)
A few miniGTL technologies are for the 1st time commercially available to reduce global gas flaring and monetize smaller gas volumes Most of these technologies are based on proven syngas routes and have been demonstrated in pilot plants Onshore and Offshore applications are possible Economic returns look attractive because of the high value products associated with high crude prices
Why GTL?
Monetize stranded gas (Trinidad, Qatar,) Add value to gas (gas/oil arbitrage: $4/MMBTU to $20/MMBTU in US today) Valuable products Synthetic crude oil Clean drop-in fuels (gasoline, diesel) Advanced fuels and chemicals (DME, methanol, etc) Energy security Reduction of imported fuels (1 bcfd/280million m3 gas per day equates to 1MMbpd) Domestic production (investments, jobs)
GTL: Gas to Liquids Broad Product Options
Step 1: Reforming SMR
Gas to Liquids GTL-FT (Fischer-Tropsch) Synthetic crude
Step 2: Fischer Tropsch Diesel Step 3: Upgrading Naphtha Lubes
Natural Gas
CH4
Syngas
Gas to Chemicals (GTC) and Fuels
Methanol
CO and xH2
DME, Olefins, Gasoline
Fuel Additives (MTBE, butanol, DMC, etc)
Hydrogen, Ammonia, Urea,
Natural gas requirements
Methane is the preferred feedstock (separation and sale of condensates and NGL)
However, C2+ (ethane and higher) can be accommodated with minor modifications if gas fractionation is not feasible
Poisons such as sulfur and mercury must be removed
Nitrogen and carbon dioxide are diluents and can be tolerated in moderate concentrations
Pressure is an advantage since the 1st step reformers run at elevated pressures (>20bar)
Gas feed rates as steady as possible for 10+ years
Minimum gas feed rate: 50kscfd
SHELL BINTULU MALAYSIA
SASOL ORYX QATAR
METHANEX/BP ATLAS TRINIDAD
SASOL SECUNDA SOUTH AFRICA Some historic GTL conversion plants
Large scale GTL plants: economy of scale
Plant Shell Bintulu Mossgas Sasol Oryx Shell Pearl Titan Country Malaysia South Africa Qatar Qatar Trinidad Gas Feed Rate 3.4mm m3/d 6.8mm m3 /d 10mm m3/d 40mm m3/d 2.1mm m3/d Product Diesel+ Diesel+ Diesel+ Diesel+ methanol Production 12,000bpd 24,000bpd 35,000bpd 140,000bpd 2500tpd
Atlas
Escravos Sasol Karshi Uzbekneftegaz SasolTalisman
Trinidad
Nigeria 2013 Uzbekistan (planned) Canada (planned)
4.2mm m3/d
10mm m3/d 10.8mm m3/d
methanol
Diesel+ Diesel+
5000tpd
35,000bpd 38,000bpd 50,000100,000bpd 80,000bpd
14-28mm m3/d Diesel+ 23mm m3/d Diesel+
Sasol Louisiana USA (planned)
Challenges with flared gas for mini-GTL
No economy of scale
High capital costs with low financial returns ? Very remote locations and lack of infrastructure
Delivery of bulky equipment
Additional costs for utilities Gas production profiles (declining with time)
Original plant size becomes underutilized
Local markets for products Need for small scale, modular, low cost process units with flexible capacity and for readily useable products
Companies developing mini-GTL technologies
Evaluation of technologies
Overall technical risks
Status of technology development Laboratory, pilot plant and demonstration plant status
Remaining hurdles
Overall Commercial readiness (onshore and offshore) Size applicability
Small: <1mmscfd (<28,000m3/d)
Medium: 1 -10mmscfd (28,000 280,000m3/d) Large: >10mmscfd (>280,000m3/d)
Overall Risk and Time to Commercialization
HIGH
METHION
OVERALL RISK
OBERON
LOW
SHORT TIME TO COMMERCIALIZATION
LONG
CompactGTL
Technology:
process intensified mini-channel reactor technology for both the reformer and the FT unit (~/<5mm) Catalyst placed on metal sheet inserts Effective heat transfer
Product: diesel or waxy syncrude Successful 20bpd demonstration plant (Petrobras)
Numerous commercial feasibility studies
[Link]
Velocys (Oxford Catalysts)
Technology:
Breakthrough micro-channel technology Reactor channels are <1mm diameter
Catalyst coating inside
Very compact modular design
Reactor modules can be removed when gas
production falls
Velocys: status and path foward
Commercial development is underway
3 demonstration projects underway (<1MMscfd) in Brazil, Austria and the USA
All GTL steps proven by 2012 (SMR, FT, Hydrocracking) Velocys is accepting commercial orders for FT units now (have already sold about 10 FT reactors)
Rosneft purchased a 100bpd unit for Angarsk refinery, Siberia, converting 10mm m3/y
Calumet (PA) will build 1000bpd unit Multiple feasibility studies underway [Link]
GASTECHNO: Overview
Relatively simple technology:
Direct oxidation of methane to methanol (no catalyst, no syngas) Modular, skid mounted design
Technology proven in 50kscfd (1400 m3/d) demo with good mass and energy balance
By-products: formalin, ethanol
Modules available for sale or lease (~/<30,000m3/d)
Basic evaluation and engineering packages (28,000 to 850,000m3/d) [Link]
OBERON FUELS: Overview
TECHNOLOGY Skid mounted DME
Modular design
Targets are small natural gas and/or biogas sources (<2MMscfd or <50,000m3/d) Markets: local heavy duty diesel fleets converted to DME 1st plant to be built in CA in 2013 (feed is methanol) 2nd plant will demonstrate the whole chain from natural gas [Link]
ECONOMICS BALLPARK ESTIMATOR
Attractive economics: product/feedstock thermal value spread is >3 E.g. gas at $4/MMBTU and diesel at $20/MMBTU equals spread of 5
Plant size
10,000scfd (280m3/d) == 1bpd liquid product Example: 5MMscfd (140,000m3/d) == 500bpd
Capex
~$80,000/daily barrel 500bpd plant: ~$40MM +/-50% Annual revenue: ~$17MM (at $100/barrel and 350 days of operation) Minus Opex: ~$3MM
Minus gas cost
Carbon credits?
Oil-gas spread: past, present and future
GTL economics works well at oilgas spreads at 3 and above
Conclusions
The GTC and GTL industries are global and well established
A few miniGTL are now available to reduce global gas flaring and monetize smaller gas volumes
Most of these technologies are based on proven syngas routes and have been demonstrated in pilot plants
Offshore applications are possible Economics look attractive because of the high value products associated with high crude prices Numerous other technologies are under development and some might see commercialization within the next 5 years
Recommendations
Evaluate mini-GTL technologies as potential new options Time is right for commercial applications CompactGTL
Velocys
Oberon Fuels Gastechno The World Bank GGFR Partnership is ready to assist you
Martyn Howells: hhowells@[Link]
Theo Fleisch: [Link]@[Link]
