Feedstocks of the Future_BP_2005

7/28/2019 Feedstocks of the Future_BP_2005

1/31

BP Confidential For Internal Use Only

Feedstocks of the Future:The Case for Syngas

Dr. Theo H Fleisch and Dr. Ron A Sills

BP America

Presented at: Innovation Day 2005Philadelphia, September 7, 2005 Theo Fleisch & Ron Sills 2005


2/31

2

Outline

Context: World Supplies of Natural Gas

Gas Refinery for Fuels and Chemicals based on Syngas

Large-Scale Methanol Production Economics

Methanol-to-Olefins: an Example of a Key Emerging Technology

BPs University Programs

Key Messages


3/31

3

World primary energy consumption

BP Statistical Review of World Energy 2005

Oil (37%)

Gas (24%)

Coal (27%)

NuclearHydroelectricity

205 millionBOE per dayin 2004


4/314

Natural gas production by area

North America

Europe & Eurasia **

Rest of World *

Asia Pacific

* Primarily Middle East, Africa and S. America

** Europe and Former Soviet Union

BP Statistical Review of World Energy 2005


5/315

World gas resources are plentiful

Gas Reserves (2004) = 6,300 TCF (180 TCM)

Equivalent to almost 70 years supply

Additional gas from Yet to Find Gas and Unconventional Gas areestimated to be many times todays gas reserves


6/316

Remote gas: an inexpensive feedstock

Location $/million BTU $/BOE*

Remote 0.5 3

1.0 6

1.5 9

U.S.** 6.1 35

* Barrel of oil equivalent = 5.8 million BTU

** average gas price at Henry Hub in 2004;average oil price about $40/bbl.


7/317

Todays gas to chemicals production

Natural Gas

CO and H2Syngas

HYDROGEN METHANOL

Fuel Additives

Formal-dehyde

Aceticacid

AmmoniaRefinery Products

DME

World consumption of naturalgas is 260 bcfd.

Natural Gas ConsumptionAmmonia production -12 bcfdHydrogen for Refinery Products 6 bcfd

Natural Gas ConsumptionMethanol production 3 bcfd


8/318

Gas refinery for fuels and chemicals

Natural Gas

HYDROGENSynthetic Crude METHANOL

CleanDiesel Jet

Fuel

NaphthaLubricants

Fuel AdditivesOlefins

Formal-dehyde

Aceticacid


DME

CO and H2Syngas

Natural Gas ConsumptionGTL-FT production 0.7 bcfd by2006, and Increasing to 4 bcfd by 2012

GTL-FT

n-paraffinsOther chemicals


9/319

Natural Gas


CleanDiesel Jet

Fuel

NaphthaLubricants

Fuel AdditivesFuel

GasolineAromatics

Olefins

Formal-dehyde

Aceticacid


FuelDME


Gas refinery for fuels and chemicals

CO and H2Syngas

Large-scaleMethanol/DMEProduction


10/3110

Natural Gas


CleanDiesel Jet

Fuel

NaphthaLubricants

Fuel AdditivesFuel

GasolineAromatics

Olefins

Formal-dehyde

Aceticacid


FuelDME

Alternative feedstocks for syngas production

Coal Biomass

CO and H2Syngas

Feedstock diversification

Coal-based plants inChina R&D, pilots in

biomass gasification.



11/3111

Methanol plant costs are decreasing

Titan and Atlas Methanol Plants

Trinidad, Early 2004

BP and Methanex announced that theindustry pacesetter 5,000 TPD Atlas plantstarted-up on June 2, 2004.

Atlas

Titan

Trends in methanol capex

0

200

400

600

1 2 3 4 5 6 7 8 9 10 11 12Projects over last 15 years

M$/Mtpa

Titan: 0.9MMtpa (2500tpd)

Atlas: 1.8MMtpa (5000tpd)

The Atlas and Titan Methanol Plants in Trinidad produceabout 8% of todays methanol


12/3112

Lets go back a few years

Transition: Chemical to Fuel/Chemical Methanol

8

Methanol Cost, $/ton50 100 150

4

2

0

$/MMB

TU

Future?

Today

Conventional Fuelsat $20/bbl crude

Illustrative Economics based on $20/bbl oil

Atlas

Past

6


13/31

13

Methanol to Olefins (MTO) Technology

Technology Developers MTO

UOP/Norsk Hydro ExxonMobil

MTP (methanol to propylene)

Lurgi/Statoil

UOP/Norsk Hydro Technology

Reaction

Fluidized bed reactor First plant planned for Nigeria

CH3OH

SAPO-34 Catalyst425-500 CExothermic

99,5% conversion

C2H4C3H6

75-80%carbonyield

Reaction by-products:

Butenes, C5+,C1-C4 paraffins,

Water, oxygenates, coke, H2,

COx

Eurochem/Nigeria Gas to Polymers7,500 tpd methanol, MTO

Lurgi MTP announced in Iran


14/31

14

Drivers for the gas refinery

Ample Gas Resources:Technology Developments

Other

Higher Oil Prices

Low-cost

Suitable location Learning and on-goingdevelopments

Economies of scale

Reduce technology risk

Improve economics

Gas monetization

Large fuels market

Environmental benefits


15/31

15

University programmes: MC2 and CEFTF

BP is working with Berkeley, Caltech and Chinese Academy of Sciences in China(Dalian and Tsinghua). Over 60 researchers and faculty focus on creatingbreakthrough technologies.

Clean Energy: Facing the FutureMethane Conversion Cooperative


16/31

16

Key Messages

Gas will remain the dominant feedstock for syngas generation due to amplesupply, low price, moderate capital cost for steam reforming and other

syngas generation technologies. The Gas Refinery for Fuels and Chemicals of the future will be based on

syngas conversion via GTL-FT and large-scale methanol/DME production.

Methanol-to-Olefins (MTO) is a key emerging technology.

Key university programs are important sources, for BP, of innovativetechnologies for the Gas Refinery.


17/31

17

Back-up


18/31

18

Topic Questions

What is the optimum common process steps to commercialize innovativetechnology, particularly to reduce the risks associated with new technology.

Generally syngas-derived fuels/chemicals have a lower carbon efficiencythan oil-derived chemicals. How can this adverse affect on global warmingbe mitigated.

As more and more scientists and engineers are educated in China and India,

how can companies and universities in developed countries best collaborateto expedite the development of new technologies.


19/31

19

Conclusion

Syngas becomes an increasingly important feedstock

Portfolio of technologies

Continuous improvements in efficiency and cost

Many efforts in gasification and syngas clean-up

Methanol/DME become low cost, versatile fuels and feedstocks

Large fuel markets lower cost

Olefins, aromatics, paraffins

GTL-FT products

Co based: diesel, naphtha, linear alkylbenzene, waxes, base oils

Fe based: diesel, ethylene/propylene, alpha-olefins, alcohols, acetone

Integration into Gas refinery


20/31

20


21/31

21

The Gas Economy

Natural Gas:

Step-child in 20th century

Dominant fuel of the 21

st

century Abundant supplies but ~40% stranded

Resource Push

Need novel gas transportation options (beyond pipelines/LNG)

Need new markets for gas

Market Pull

Need for clean, improved liquid fuels

Need for low cost chemical feedstocks and improved processes

Need for Gas To Products, GTP


22/31

22

Crude oil prices since 1861

BP Statistical Review of World Ener 2005


23/31

23

Large Methanol/MTO/DME plants (built, proposed)

Iran Methanol 1- 55,000 TPD

Trinidad (2) 5,000 TPDAtlas

Methanol Holdings

Oman Methanol - 5,000 TPDQatar Methanol - 6,750 TPD

Nigeria/Eurochem MTO7,500 TPD

PetroWorld/Starchem>12,000 TPD

Qatar/PetroWorld>12,000 TPD

Iran/Lurgi MTP2500TPD

Proposed Supply for New Methanol/DME Markets:

23 MMTPA methanol (70% of current capacity)

(Equivalent to 200,000 bpd GTL-FT)

Methanol

Methanol for Power/Olefins

Memo: Not including


24/31

24

Qatar: The birth of the GTL business

SasolOryx

35kb/d; 2006 start-up

NigeriaSasolChevron

35kb/d

ShellPearl

140kb/d (Nov. 2003)

SasolChevron

100kb/d (March, 2004)

ExxonMobilAGC 21

160kb/d (July, 2004)

Colombia Condor

BP


25/31

25

T d th i f d t k f li ht l fi i


26/31

26

Today, the primary feedstock for light olefins isnaphtha

Source: Hydro Presentation by Henning Reier Nilsen at EFI Conference in Norway, May 2005


27/31

27


28/31

28

BP Annual

Report 2004


29/31

29

Synthesis gas is the fuel of the future

Synthesis gas is a mixture of carbon monoxide (CO) and hydrogen (H2).

Synthesis gas can be manufactured from natural gas and coal using

conventional technology, and from biomass using emerging technologies.

World supplies of natural gas and coal can support increased future demand.World supplies of oil are mature and not as ample.

The location of world supplies of natural gas is remote from markets.

Future synthesis gas refineries that convert remote natural gas and coal tolarge-volume conventional fuels will provide an economical supply of synthesisgas as a petrochemical feedstock.

Conventional and emerging technologies can convert synthesis gas to broad

range of petrochemical feedstocks.


30/31

30

Good stuff

World consumption of natural gas is 260 bcfd (2004). LNG trade is 17 bcfd (2004). 49bcfd traded across country borders by pipeline.

Ammonia is largest user of hydrogen.

Hydrogen demand (2004) from natural gas for chemicals manufacture (mostly

ammonia) is about 32 billion scfd for ammonia (12 bcfd natural gas) and 5 bcfd formethanol (2.7 bcfd natural gas)

Current worldwide on-purpose hydrogen production for refineries is about 15 billion scfd(5.5 bcfd natural gas), growing at 5% per year. 79% from steam methane reforming,17% from steam naphtha reforming. 4% from gasification.

Natural gas will remain the dominant feedstock for syngas generation due to amplesupply, low price, moderate capital cost for steam reforming and other syngasgeneration technologies.

Todays chemical uses of syngas include ammonia, methanol and oxo chemicals(addition of syngas to olefins to form ketones and aldehydes.

Gas reserves are equivalent to oil reserves. (1.11 vs 1.15 trillion boe)

Gas production rose in every region except North America, where US output continuedto decline. In Europe, growth in the Netherlands, Russia and Norway more than offsetthe ongoing decline of UK output.


31/31

31

Key Message

TheThe feedstock of the future is syngas (carbonmonoxide and hydrogen) derived fromgeographically-remote natural gas resources.

Documents

Feedstocks of the Future_BP_2005