Coal & Natural Gas Chemicals
Gillian Tweddle
Tecnon OrbiChem Marketing Seminar at APIC 2014
Pattaya, 15 May 2014
0
10
20
30
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$/mmBtu
Source: Tecnon OrbiChem
APIC 2014
NATURAL GAS, CRUDE OIL & COAL PRICES
US Nat Gas $/mmBtu
Oil $/mmBtuequivalent
Coal $/mmBtuequivalent
Dollars per Ton
Source: Tecnon OrbiChem
APIC 2014
METHANOL CONTRACT vs BRENT, HENRY HUB GAS & COAL PRICES
0
100
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300
400
500
600
700
800
900
1,000
Jan-
10Apr
-10
Jul-1
0O
ct-1
0Ja
n-11
Apr
-11
Jul-1
1O
ct-1
1Ja
n-12
Apr
-12
Jul-1
2O
ct-1
2Ja
n-13
Apr
-13
Jul-1
3O
ct-1
3Ja
n-14
Methanol (Average)
Brent
Henry Hub Gas
China Coal
APIC 2014
NATURAL GAS-BASED SYNTHESIS GAS AND METHANOL PRODUCTION
Source: Tecnon OrbiChem
Steam Reformer
Methanol Synthesis
Natural Gas
Steam
H2 Rich
Syngas MethanolDe-Sulphuriser
CO2
APIC 2014
COAL-BASED SYNTHESIS GAS TO METHANOL PRODUCTION
Source: Tecnon OrbiChem
Pure
Syngas
H2 Rich
Syngas
H2 Lean
Syngas
Gasifier ShiftCo-ProductProcessing
ASU
Separation
Claus Unit
PSA
Coal
Steam
Oxygen
Tail Gas
Hydrogen
Ammonia
Phenolics
Sulphur
CO2
(to sequestration?)
Methanol Synthesis
APIC 2014
CHEMICALS FROM COAL
Source: Tecnon OrbiChem
Coal
CalciumCarbide
Syngas
Acetylene
VCM & PVC
Ammonia
Crude Methanol
Oxalate
Fertilisers
Methanol
Ethylene
MEG
Acetic Acid
MTPMTO
Propylene
DME Formaldehyde
BDO
Fischer -Tropsch
Fuels &Chemicals
MTBE
APIC 2014
METHANE TO METHANOL TO ACETIC ACID
Source: Tecnon OrbiChem
SyngasUnit
Methanol Synthesis
Methane
Noble MetalCatalyst
Acetic Acid
CarbonylationReactor
CarbonMonoxide
Unit
Oxygen
CO
Crude
Acetic Acid
Dis
tillation C
olu
mn
Steam
Hydrogen
Source: Tecnon OrbiChem
APIC 2014
ACETIC ACID PRODUCTION COSTS - US vs CHINA
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500
600
700
2010 2011 2012 2013 2014
Dollars per Ton
USG Acetic Acid $/ton
USG AA RawMaterials
China AA Raw
Materials
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2000
2005
2010
2015
2020
1,000 Metric Tons
Source: Tecnon OrbiChem
APIC 2014
WORLD ACETIC ACID CAPACITY vs DEMAND
Annual Acetic Acid Consumption
Growth 3.9%
Growth 6.8% pa
Forecast Growth 4.2% pa
Capacity to produce(90% utilisation)
Capacity to produce(80% utilisation)
Other21%
MTO4%
Biodiesel4%
Fuel Blending12%
DME7%
MTBE11%
Acetic Acid11%
Formaldehyde30%
2013 Total58-60 Million Tons
APIC 2014
GLOBAL METHANOL DEMAND BY END-USE
Source: Tecnon OrbiChem
APIC 2014
CHINA METHANOL DEMAND BY END-USE
Source: Tecnon OrbiChem
MTO19%
Other14%
Fuel Blending11%
DME18%
MTBE5%
Acetic Acid6%
Formaldehyde27%
2020 Total>70 Million Tons
MTO64%
Other8%
Fuel Blending4%
DME7%
MTBE2%
Acetic Acid3%Formaldehyde
12%
2013 Total26-28 Million Tons
APIC 2014
METHANOL-TO-PROPYLENE - LURGI MTP® PROCESS
Source: Lurgi GmbH
3.8 Mio Nm³/d48 Mio mmBtu/a
Natural Gas
SyngasPlant
PropylenePlant (MTP)
Methanol Plant
1.7 Mt/aMethanol
0.47 Mt/aPropylene
12.3 Mio Nm³/d Syngas
936 000 t/aWater
143,000 t/aGasoline
CoalGasification
& Shift Conversion
OR4.3 Mt/a
Coal
APIC 2014FEEDSTOCK REQUIREMENTS FOR MTP®
Source: Tecnon OrbiChem
Propylene1 ton
Methanol3.5 tons
Natural Gas2600 m3 =100 mmBtu
or
Coal9.15 tons total (6.25 tons feedstock+ 2.90 tons fuel)
Source: Tecnon OrbiChem
APIC 2014
VIABILITY OF MTP®
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800
1,000
1,200
1,400
1,600
1,800
2,000
1999
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2007
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2009
2010
2011
2012
2013
2014
02468101214161820222426283032
Dollars per Ton Ratio
Propylene/Methanol Ratio
MethanolImport E AsiaMinus$50/tonfreight
PropyleneImport E AsiaMTP not viable
using MeOH at international prices
APIC 2014
MTP® - SIMPLIFIED BLOCK DIAGRAM
Three-Stage Adiabatic Reactor
MTP 1 MTP 2 MTP 3
Gasoline143,000 t/a
Fuel Gas15,000 t/a
Water936,000t/a
DMEPre-Reactor
ProductConditioning
Propylene470,000 t/a
LPG54,000t/a
Water Recycle
Olefin Recycle
Crude Methanol
1.667 x 106 t/a = 5000 t/d
Source: Lurgi GmbH
APIC 2014
MTP COMMERCIAL PROJECTS - CHINA
Datang International
• 1800 ktpa methanol from coal
• 470 ktpa MTP propylene (Lurgi)
• 456 ktpa polypropylene (Dow Unipol)
• Location: Xilinguole, Inner Mongolia, China
• Operating at 50-60% of capacity
Shenhua Ningxia Coal Industrial Group
• 1670 ktpa methanol (Lurgi)
• 470 ktpa MTP propylene (Lurgi)
• 500 ktpa polypropylene (Lummus Novolen)
• Location: Ningdong, Ningxia province, China
• Start-up: MTP Sept 2010, polypropylene Q4 2010
• Generally operating at 70-80% capacity
Source: Tecnon OrbiChem
APIC 2014
METHANOL TO OLEFINS (MTO)
Source: UOP
OUTPUT FROM a UOP/Hydro MTO PLANTConfigured for 1:1 Ethylene : Propylene Ratio
Propylene
Ethylene
SyngasUnit
MethanolSynthesis
MTOUnit
Higher olefins,by products
DMESynthesis
ktpaINPUTNatural gas (2.1 x 109 m3) 1515Methanol 2358
OUTPUTEthylene 400Propylene 400Butenes 123C5+ hydrocarbons 46Fuel gas 40Other (water, COx, coke) 1349Total 2358
APIC 2014
METHANOL-TO-OLEFINS - UOP/HYDRO PROCESS
ReactorReactor RegeneratorRegeneratorQuenchQuenchTowerTower
Mixed CMixed C44
PropanePropane
EthaneEthane
Tail GasTail Gas
EthyleneEthylene
PropylenePropylene
CC55++
DryerDryer
CC22HH22ReactorReactor
Caustic Caustic WashWash DeDe--CC2 2 DeDe--CC11
CC22SplitterSplitter
CC33SplitterSplitterDeDe--CC33 DeDe--CC44
RegenRegen GasGas
AirAir
MethanolMethanol
DMERecovery
WaterWater
Similar to naphtha cracker equipment
Similar to refinery/FCC equipment
Source: UOP
Source: Tecnon OrbiChem
APIC 2014
VIABILITY OF ADVANCED MTO
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800
1,000
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1,800
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Dollars per TonRatio
Ethylene/Methanol Ratio
MethanolImport E AsiaMinus $50freight
EthyleneImport E Asia
MTP not viable using MeOH at international prices
APIC 2014
MTO COMMERCIAL PROJECTS - CHINA
Shenhua Baotou Coal to Liquid and Chemical
• GE gasification
• 1800 ktpa methanol, needing 3450 ktpa coal feedstock
• 600 ktpa DMTO (SYN (Dalian Institute of Chemical Physics) + Lummus)
• 300 ktpa ethylene, 300 ktpa propylene
• 300 ktpa polyethylene (Univation)
• 300 ktpa polypropylene (Dow Unipol)
• Location: Baotou, Inner Mongolia, China
• Start-up: August 2010 all units
Sinopec Zhongyuan Petrochemcial
• 600 ktpa SMTO (Sinopec Beijing Yanshan Petrochemical); methanol bought
• 200 ktpa ethylene, 100 ktpa propylene
• 200 ktpa polyethylene, 100 ktpa polypropylene
• Existing180 ktpa ethylene cracker and 60 ktpa polypropylene cannabilised
• Location: Puyang, Henan province, China
• Start-up: 2012
Source: Tecnon OrbiChem
APIC 2014
MTO COMMERCIAL PROJECTS - CHINA
Ningbo Heyuan Chemical• 1800 ktpa methanol consumption• 600 ktpa DMTO [SYN + Lummus]]• OCT Olefins conversion 90 ktpa propylene [Lummus]• 300 ktpa polypropylene• Location: Ningbo, China• Start-up Jan 2013
Wison (Nanjing) Clean Energy• 900 ktpa methanol consumption• 300 ktpa MTO [UOP]• Location: Nanjing, China• Start-up 2014
Source: Tecnon OrbiChem
APIC 2014
CTO / MTO / MTP PROJECTS 2014 - 2015
Source: Tecnon OrbiChem
Company Location Details Capacity (ktpa) Start-Up
Ethylene Propylene
Pucheng Clean Energy Pucheng, Shaanxi CTO 300 400 Q1 2014
Yanzhou Coal Ordos, Inner Mongolia MTO 400 500 Q2 2014
Yulin Energy Yuin, Shaanxi CTO 300 300 Q2 2014
Qinghai Salt Golmud, Qinghai CTO 160 160 Q3 2014
Ningxia Baofeng Ningxia, Shaanxi CTO 300 300 2014
Jiutai Energy Ordos, Inner Mongolia MTO 300 300 2015
China Coal Mengda Inner Mongolia MTO 300 300 Q2 2015
China Coal Shaanxi Yulin, Shaanxi CTO 600 600 Q2 2015
Sinopec Zhijin Zhijin, Guizhou CTO 300 300 Q2 2015
Zhejiang (Xingxing) New Energy Jiaxin, Zhejiang MTO 300 300 Q2 2015
Huating Coal Group Huating MTP 200 2015
Shandong Yangmei Hengtong Tancheng, Shandong CTO 100 200 2015
Shandong Shengda Tengzhou, Shandong MTO 170 230 2015
Jiangsu Sailboat Lianyuangang, Jiangsu MTO 300 300 2015
Sinopec Wanbei JV Huainan CTO 300 300 2015
SXYCPC - Yan’an Energy & Chem Yan’an, Shaanxi CTO 450 250 2015
Fude Chemical Energy Changzhou, Jiangsu MTO 500 500 2015
APIC 2014
CONCLUSIONS
• Methanol has considerable potential to act as a new feedstock for olefins
• There is considerable potential for Methanol-to-Propylene plants, with two pioneering MTP® plants having come on stream in China in Q2/Q3 2010.
• Faster growth for propylene than ethylene demand, together with moves to lighter feedstocks for ethylene crackers, mean that alternative routes to propylene are needed.
• Methanol-to-olefin processes, which produce both ethylene and propylene, and especially the Advanced MTO process, offer even higher conversion of methanol to olefins. Four MTO plants already on line in China.
• Coal is the feedstock being used for the MTP and MTO plants in China. Some future plants will use imported methanol.
• Elsewhere natural gas is likely to be preferred; economics are very healthy where the natural gas is “stranded” and therefore cheap, but as the gap between natural gas and crude oil pricing has widened, even some non-stranded gas supplies are looking attractive.
Source: Tecnon OrbiChem
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