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Methanol Plant Expansion for Increased Profitability

Andrew Board

October 2016

Andrew.Board@Jacobs.com

120 Years of Syngas Experience

The First 100 Years

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1892 Humphreys & Glasgow founded.

1916 First Hydrogen Plant

1944 First Producer Gas Plant

1951 First Onia Geigy Plant

1956 Underground Coal Gasification

1957 First Syngas Plant for Fischer-Tropsch

1958 First Gasification Plant

1962 First Reformer

1963 First Ammonia Plant

1965 First Methanol Plant

1971 First Refinery Plant

First SNG Plant

1972 First Offshore Design

1992 Jacobs Acquires H&G

Methanol Experience – Global Client Location Scope

Togliattiazot Samara, Russia

Basic Engineering Package & Reformer Detailed Design for 2

x 3,300 TPD methanol plants to be located on Togliattiazot’s

existing complex. Loop design included JM’s tube cooled

converter.

Salalah Methanol

Company (SMC)Salalah, Oman

FEED package and an ITB for LSTK EPCC bids for a grass

roots 3,000 TPD methanol plant. OSBL design included docks

and seawater intake / outfall.

Saudi International

Petrochemical

Company (SIPC)

Al Jubail, Saudi

Arabia

FEED package for a 2,900 TPD methanol plant. Jacobs

monitored the turnkey contractor and provided operator

training, plant commissioning for SIPC.

QAFAC QatarFEED package, commissioning and start-up assistance for a

2,500 TPD methanol plant.

Saudi Methanol

Company

Ar-Razi 3 & Ar-Razi 4

Al Jubail, Saudi

Arabia

Basic and Detailed Engineering for SMR for 2,500 TPD

methanol plant.

National Methanol

Company

Ibn Sina

Al Jubail, Saudi

Arabia

Detailed engineering of the reformer furnace, convection heat

recovery section, and ancillary equipment for a 2,100 TPD

methanol plant. Also provided construction and commissioning

advisory services.

4

Methanol Experience – North America

Client Location Scope

Methanex Geismar, LAPDP, FEED, permitting and EPCm for relocation of 2 X 2,860

TPD Methanol plants from Punta Arenas, Chile to Geismar, LA.

Methanex Medicine HatBasic Engineering for distillation upgrade and integration.

NOx emission reduction study.

LyondellBasell Channelview, TX

Provide basic engineering support and EPCm services for the

2,125 TPD Channelview Methanol Restart and Emission

Reduction Project.

Celanese Edmonton, CanadaBasic Engineering for methanol plant and Detailed Engineering

for SMR for 2,100 TPD methanol plant.

5

Conventional SMR based Methanol Plant - 1

Methanol

Synthesis

Loop

NG

Compression

Purification and

Saturation

Methanol

Distillation

Steam Methane

Reforming

(SMR)

Heat Recovery

and

Syngas

Compressor

(SGC)

Steam Purge gas to SMR Fuel

Water

Natural

Gas

Product

Methanol

NG to

SMR Fuel

𝑪𝑶𝟐 + 𝟑𝑯𝟐 ↔ 𝑪𝑯𝟑𝑶𝑯+ 𝑯𝟐𝑶𝑪𝑶 +𝑯𝟐𝑶 ↔ 𝑪𝑶𝟐 +𝑯𝟐

Combing to give overall reaction:

𝑪𝑶 + 𝟐𝑯𝟐 ↔ 𝑪𝑯𝟑𝑶𝑯

𝑪𝑯𝟒 +𝑯𝟐𝑶 ↔ 𝑪𝑶+ 𝟑𝑯𝟐𝑪𝑶 +𝑯𝟐𝑶 ↔ 𝑪𝑶𝟐 +𝑯𝟐

Conventional SMR based Methanol Plant - 2

6

• Conventional Natural Gas SMR based methanol plants provide good

reliable low cost operation for methanol production

• Not the most efficient in terms of energy consumption, typically

between 33 and 36 MMBtu/MT (HHV)

• Plant operation leads to an excess of hydrogen in the methanol

synthesis loop, which is purged and burnt as fuel in SMR

• Is there a better use for this hydrogen?

CO2 injection – Option 1

7

• CO2 injection up to stoichiometry level

• However, as CO2 injection increases, rate of production increase

and efficiency improvement decreases

• Distillation impacts needs assessment due to increase load and

greater water produced in synthesis reactions

CO2

injection

Methanol

Synthesis

Loop

NG

Compression

Purification and

Saturation

Methanol

Distillation

Steam Methane

Reforming

(SMR)

Heat Recovery

and

Syngas

Compressor

(SGC)

Steam Purge gas to SMR Fuel

Water

Natural

Gas

Product

Methanol

CO2

injection

NG to

SMR Fuel

CO2 injection – Option 1

8

Units Base Case

Current

operation

Option 1a

CO2 injection

to SGC

Option 1b

CO2 injection

to SMR

Option 1c

CO2 injection

to SGC with

increased NG

Total Natural

Gas

MMBtu/day 105,604 105,604 105,604 113,712

CO2 Injected TPD 0 724 724 824

Methanol

Production

MTPD 3,000 3,083 3,098 3,299

Natural Gas

Utilization

MMBtu/MT 35.20 34.25 34.09 34.47

Purge Loop – Option 2

9

CO2

injection

Methanol

Synthesis

Loop

NG

Compression

Purification and

Saturation

Methanol

Distillation

Steam Methane

Reforming

(SMR)

Heat Recovery

and

Syngas

Compressor

(SGC)

Steam

Water

Natural

Gas

Product

Methanol

High Pressure

PSAPurge Loop

Purge gas to SMR Fuel

PSA tailgas to SMR Fuel

NG to

SMR Fuel

Purge Loop – Option 2

10

Units Base Case

Current

operation

Option 2a

Purge Loop

with fixed NG

Option 2b

Purge Loop

with increased

NG

Total Natural Gas MMBtu/day 105,604 105,604 126,555

CO2 Injected TPD 0 929 1,209

Methanol Production MTPD 3,000 3,180 3,825

Natural Gas

Utilization

MMBtu/MT 35.20 33.21 33.08

ATR and OTR – Option 3

11

CO2

injection

Methanol

Synthesis

Loop

NG

Compression

Purification and

Saturation

Methanol

Distillation

Steam Methane

Reforming

(SMR)

Heat Recovery

and

Syngas

Compressor

(SGC)

Steam

Water

Natural

Gas

Product

Methanol

Once-Through

Methanol

Reactor

(OTR)

Auto Thermal

Reforming

(ATR) and

Reformed Gas

Boilers

Oxygen

Natural

Gas

Purge gas to SMR FuelNG to

SMR Fuel

ATR and OTR – Option 3

12

Units Base Case

Current operation

Option 3

ATR and OTR

Total Natural Gas MMBtu/day 105,604 138,626

CO2 Injected TPD 0 824

O2 Consumed TPD 0 457

Methanol Production MTPD 3,000 4,173

Natural Gas Utilization MMBtu/MT 35.20 33.22

Financial impact

13

0

200

400

600

800

1000

1200

1400

0

100

200

300

400

500

600

700

800

Option 1a CO2injection to

SGC

Option 1bCO2 injection

to SMR

Option 1c CO2injection to

SGC withincreased NG

Option 2aPurge loop

with fixed NG

Option 2bPurge loop

with increasedNG

Option 3 ATRand OTR

Ad

dit

ion

al M

eth

ano

l Pro

du

ctio

n (

TPD

)

TIC

/an

nu

aliz

ed

pro

du

ctio

n (

$/T

PA)

TIC/Annualized Production Additional Methanol Production

Case Study – Implementation of Option 3

14

• Methanol plant implementing parallel ATR and OTR with ~20%

increase in Natural Gas and CO2 addition

CO2

injection

Methanol

Synthesis

Loop

NG

Compression

Purification and

Saturation

Methanol

Distillation

Steam Methane

Reforming

(SMR)

Heat Recovery

and

Syngas

Compressor

(SGC)

Steam

Water

Natural

Gas

Product

Methanol

Once-Through

Methanol

Reactor

(OTR)

Auto Thermal

Reforming

(ATR) and

Reformed Gas

Boilers

Oxygen

Natural

Gas

Purge gas to SMR FuelNG to

SMR Fuel

Case Study – Implementation of Option 3

15

• Plant Capacity increased from 3,300 TPD to 4,400 TPD

• Natural Gas increase approximately 20%, maximum CO2 injection

• Methanol plant improvement in Natural Gas utilization from 36 to

32.7 MMBtu/day

• Methanol plant now an exporter of steam to other users

• Project status – FEED Completed by Jacobs

• EPC awarded

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