bp gtl plant nikiski, alaska 3 mmscfd of natural gas 300 ... compressed natural gas (cng) ... final...
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Small Scale Gas Monetization via miniGTL Options Dr. Theo H Fleisch
Commissioned by World Bank Global Gas Flaring Reduction (GGFR) Partnership
BP GTL Plant
Nikiski, Alaska
3 MMscfd of natural gas
300 bpd product
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GGFR Partnership: Sponsor of study
• Problem: 5 TCF associated gas (AG) flared in 2010
− Equal to 20% of US consumption
− 320MM tons of unnecessary CO2 emitted into atmosphere
• Solution: Development and adoption of viable AG utilization options
− Compressed natural gas (CNG)
− Liquefied natural gas (miniLNG)
− Gas to Wire (GTW)
− Gas to Liquids (miniGTL)
− Gas to Chemicals (miniGTC)
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GTL: Gas to Liquids – Broad Product Optionality
Natural Gas
Step 1: Syngas Manu- facture
Gas to Liquids GTL -FT
Gas to Chemicals (GTC) and Fuels
Step 2: Fischer Tropsch
Step 3: Upgrading Naphtha
Lubes
Diesel
Methanol
DME, Olefins, Gasoline
Fuel Additives (MTBE, butanol, DMC, etc)
Others (Ammonia, Urea, etc)
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Why GTL?
• Monetize stranded/flared gas
• Add value to gas (gas/oil arbitrage: $4/MMBTU to $20/MMBTU)
• Value added products
− Clean drop-in designer fuels (gasoline, diesel, jet, butanol)
− Advanced fuels and chemicals (DME, methanol, etc)
• Energy security
− Reduction of imported fuels (10bcfd gas equates to 1MMbpd)
− Domestic production (investments, jobs)
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Some historic conversion plants
SASOL SECUNDA
METHANEX/BP ATLAS
SHELL BINTULU
SASOL ORYX
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Pearl GTL: 1st Mega Plant 1.4bcfd gas to 140,000bpd liquid products
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GTL projects in the US
• Past: Only North Slope gas was considered for GTL
• Today:
− Sasol pursues a GTL project in Lousiana
− Shell announced a “Pearl clone” study in Lousiana
− MiniGTL opportunities are becoming available
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Small is beautiful: “miniGTL”
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Technology risk: commercial vs unproven
Technology Reactant Intermediate Products Commercial COMPANIES
GTL-FT O2, H20, air syngas Diesel, others YES COMPACTGTL, VELOCYS, VERDIS,
1st RESOURCE, CARBONSCIENCES
Methanol O2, H20, air
syngas Methanol & derivatives
YES OBERON R3SCIENCES
Partial
Oxidation (POX)
O2 none Methanol & formaldehyde
NO GASTECHNO GENERAL
METHANOL
Pyrolysis none acetylene Gasoline NO SYNFUELS
Oxybromination Br2, air CH3Br Gasoline NO GRT
Methane Sulfonation
(MSA)
SO3, air, Radical initiator
CH3SO3H MSA
Methanol & derivatives
NO METHION
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Classifying the companies
REMAINING HURDLES
DEV
ELO
PMEN
T ST
AGE
FEW MANY
EARLY
ADVANCED • Advanced Technology • Some Patents • Engineering in place • Pilot plant • Real and perceived risks • Value/risk relationship not high or not clear
• Successful demonstration • Good patent portfolio • FEED in place • Global Partners • Mature business plans • Deep technical team • Active commercial team
• Relatively simple technology • Off the shelf technology • Small, low risk plants • Possible product hurdles • Capable management team
• Early stage technology • Laboratory experiments • Early business plans • Very small teams (<10) • Fund raising issues
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Classifying the companies
REMAINING HURDLES
DEV
ELO
PMEN
T ST
AGE
FEW MANY
EARLY
ADVANCED
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COMPANY SMALL <1MMscfd
MEDIUM 1-10MMscfd
LARGE >10MMscfd
Offshore Applicable
VERDIS
1st RESOURCE
OBERON FUELS
R3SCIENCES
GENERAL METHANOL
CARBON SCIENCES
GASTECHNO
METHION
VELOCYS
COMPACTGTL
GRT
SYNFUELS
Project size applicability
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Overall Risk and Time to Commercialization
TIME TO COMMERCIALIZATION
OVE
RAL
L R
ISK
LONG SHORT
HIGH
LOW
METHION
OBERON
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CompactGTL: Process intensified mini-channel FT
Compact FT
Reactor
FT Stream Coolant Stream
High heat transfer from FT process stream into coolant stream
FT catalyst foil inserts
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CompactGTL Solution @ 2-50 MMscfd
Integrate the GTL plant with the production facility Convert the associated gas into syncrude
Co-mingle and transport with the natural crude
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CompactGTL: Picture of Petrobras pilot plant
Final Commissioning:
27 April 2011
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CompactGTL: Status and path forward
• 20bpd Brazil demo plant passed Petrobras acceptance test (1Q12)
• Numerous commercial feasibility studies underway
• Offshore and onshore applications
• Petrobras pursues 10MMscfd offshore project
• www.compactgtl.com
• Contact: Subby Bains
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VELOCYS and OXFORD CATALYSTS
www.oxfordcatalysts.com www.velocys.com
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OCV: MICROCHANNEL PROCESS TECHNOLOGY (MPT)
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VELOCYS: micro-channel processing technology
SMR: CONVENTIONAL & NEW FT REACTOR
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Velocys: status and path foward
• Commercial development is underway
− 3 demo projects underway (<1MMscfd)
• All GTL steps proven by 2012 (SMR, FT, Hydrocracking)
• Velocys is accepting commercial orders for FT units now (have already sold 4 FT reactors)
• Multiple feasibility studies underway
• www.velocys.com
• Contact: Jeff McDaniels
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GASTECHNO
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GASTECHNO: Overview
• Relatively simple technology:
− Direct oxidation of methane to methanol (no catalyst, no syngas)
− Trick: product separation and recycle
− Modular, skid mounted design
• Technology proven in 50kscfd demo with good mass and energy balance
• By-products: formalin, ethanol
• Modules available for sale or lease (~/<1MMscfd)
• Basic evaluation and engineering packages (1 to 30 MMscfd)
• www.gastechno.com
• Contact: Walter Breidenstein
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OBERON FUELS: Overview
• TECHNOLOGY
− Skid mounted DME
− Modular design
− Targets are small gas, biogas sources (<2MMscfd)
− Markets: local heavy duty diesel fleets converted to DME
• 1st plant to be built in CA in 2012 (feed is methanol)
• 2nd plant will demonstrate the whole chain from natural gas
• www.oberonfuels.com
• Contact: Rebecca Breitenkamp
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ECONOMICS BALLPARK ESTIMATOR
• Attractive economics: product/feedstock value spread is >3
• Plant size
− 10,000scfd == 1bpd liquid product
− 5MMscfd == 500bpd
• Capex
− ~$80,000/daily barrel
− 5MMscfd plant: ~$40MM +/-50%
• Annual revenue: ~$17MM (at $100/barrel and 350 days of operation)
− Minus Opex: ~$2MM
− Minus gas cost
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Oil-gas spread: past, present and future
GTL economics
works well at oil-
gas spreads at 3
and above
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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
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THANK YOU
My thanks go to: Martyn Howells Bent Svensson GGFR, World Bank