Gas-to-Liquids Processes for Chemicals and Energy Production

Gas-to-Liquids Processes for Chemicals and Energy Production

INTRODUCTION

STUDY GOALS AND OBJECTIVES

The gas-to-liquids (GTL) business is involved in the chemical conversion of stranded natural gas feedstocks to liquid products such as transportation fuels and chemicals. Insofar as beneficial processing of the world’s huge resource base of stranded natural gas is concerned, GTL processing is a relatively recent R&D focus of the petrochemical industry. Development of commercial-scale GTL plants, utilizing stranded natural gas is a relatively recent development, too. Hence, the need for this BCC report.

Liquid GTL products are primarily transportation fuels (and are defined as synthetic fuels) and chemical feedstocks such as methanol, hydrogen, and other petrochemicals. As the terms are presently used in the petrochemical industry, “GTL” and “GTL products” refer mainly to the output of plants (or refineries) that utilize stranded natural gas as feedstock. For that reason, conventional production of chemicals, including high-volume methanol, typically via steam methane reforming (SMR) of non-stranded natural gas, is not a principal focus of this report.

The objective of this BCC Research report is to provide an up-to-date and critical evaluation of the most dynamic and path breaking aspects of GTL technology and describe how recent breakthroughs in conversion technology have made GTL products competitive with products refined from crude oil. This report discusses the use of GTL processes to produce ultra-clean diesel fuels and high-quality chemical products such as waxes. BCC assesses the role of GTL as an enabling technology for the production of clean transportation fuels.

A principal focus of the report are individual company initiatives and R&D focus, Discussed as well is the status of all major GTL projects around the world that utilize stranded gas. Included are descriptions of technologies and products, and a forecast of the GTL market through 2014. The report quantifies demand for GTL by type of output, application, and production technology. A significant component of this report analyzes competitive synthetic fuel concepts, as the commercial success of competitive synthetic fuel concepts will weigh heavily on the ultimate trajectory of the GTL business. These competitive fuels include those derived from coal-to-liquids (CTL) and biomass-to-liquids (BTL).

REASONS FOR DOING THE STUDY

A significant amount of the world’s natural gas resources are stranded, far from existing markets. Gas-to-liquids technologies can economically convert these resources into high-quality, ultra-low sulfur fuels that can be transported to consumers or used in remote locations.

Fischer-Tropsch (FT) processing of synthesis gas has undergone significant improvements in reactor design and product recovery. This has enabled the economic use of stranded natural gas feedstocks in GTL production on the front-end (i.e., the stranded natural gas is the initial feedstock that yields synthesis gas that is then processed via FT). Therefore, GTL fuel production is in a relatively advanced stage of development, with commercial production well demonstrated in, for example, Qatar, Malaysia, and South Africa. Although synthetic fuels can be produced from a range of feedstocks—biomass, coal, and natural gas—the GTL process is at the most advanced stage of commercial development. In addition, GTL utilizes gas resources that either are flared or are currently unmarketable. Synthetic fuel production via GTL processing of stranded gas is approximately 100,000 barrels per day (bbl/d), and it is estimated that as many as 10 large-scale GTL plants will be in operation over the next decade, producing as much as 1 million barrels per day (Mbbl/d) of GTL products.

Nearly every major oil company has announced plans to investigate producing synthetic diesel fuel via a GTL process. However, a handful of companies, such as established GTL companies Sasol, Shell, Syntroleum, and Rentech, are the dominant producers. As discussed in this report, though, there are numerous “second-tier” companies that have sizable GTL support operations in engineering, design, plant construction, ancillaries, and related activities. Generally, research and development are improving the efficiency and economics of GTL production as well as quantifying the costs and benefits of production and use of GTL fuel in vehicles.

GTL derived fuels do have competition in the market, and these competitors include low-grade and synthetic petroleum (e.g., from tar sands in Canada) CTL, biofuels, electricity (EVs), and hydrogen. Although liquid fuels could be increasingly supplied by low-quality and synthetic petroleum, such as tar sands, due to the sheer size of readily accessible resources and the available technologies to turn such resources into liquid fuel, those fuels have much higher GHG (greenhouse gas) emissions than conventional petroleum, as well as GTL, and BCC predicts this will be a highly significant negative factor in terms of product demand. Currently, production capacity for fossil-based “alternative” fuels is about 2.5 Mbbl/d, of which the largest portion is tar sands and extra-heavy oil production. This, of course, far exceeds present GTL output.

These fossil-based “alternative” fuels now account for only 3% of global oil production but could double within the next 5 years. However, environmental mandates could be a significant force behind growing utilization of GTL for chemical and energy production. Higher-purity transportation fuels, such as ultra-low sulfur diesel, will become mandatory in most jurisdictions. GTL will offer both petroleum refiners and automakers flexibility to meet international agreements. In addition, GTL derived fuel may have a slight GHG emission advantage.

INTENDED AUDIENCE

With its broad scope and in-depth analyses, this study will prove to be a valuable resource, particularly for anyone involved with or interested in the synthetic transportation fuels market. It will be particularly useful for researchers, laboratory and government personnel working in research or company settings, as well as business professionals, such as marketing managers, strategic planners, forecasters, new product and business developers, who are involved with most aspects of the liquids fuels industry. It also will be of value to potential investors and members of the general public who are interested in acquiring a business-oriented view of GTL and the synthetic fuels business. The projections, forecasts, and trend analyses found in this report provide readers with the necessary data and information for decision making. 
 

CHAPTER ONE: INTRODUCTION

STUDY GOALS AND OBJECTIVES

REASONS FOR DOING THE STUDY

INTENDED AUDIENCE

SCOPE OF REPORT

METHODOLOGY AND INFORMATION SOURCES

ANALYST CREDENTIALS

RELATED BCC PUBLICATIONS

BCC ONLINE SERVICES

DISCLAIMER

CHAPTER TWO: SUMMARY

MAJOR FINDINGS

KEY FINDINGS OF THIS STUDY

SUMMARY TABLE GLOBAL MARKET FORECAST OF PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, THROUGH 2014 ($ BILLIONS)

SUMMARY FIGURE GLOBAL MARKET FORECAST OF PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, 2007-2014 ($ BILLIONS)

CHAPTER THREE: OVERVIEW

TABLE 1 DISTRIBUTION OF WORLD STRANDED NATURAL GAS RESOURCES BY REGION, 2008 (PERCENT DISTRIBUTION)

CARBON REGULATIONS AND GTL MARKET PROSPECTS

FACTORS DRIVING ADOPTION OF GTL PROCESSES

OVERVIEW OF RECENT ACTIVITY

TABLE 2 KEY EXAMPLES OF GTL DEMONSTRATION PLANTS

SASOL

RENTECH

SYNTROLEUM

MODEC

WORLD GTL

BHP BILLITON

EXXON

SHELL

QATAR AND EGYPT: MAJOR FOCUS FOR GTL PROJECTS

PROJECT LIST

TABLE 3 LIST OF PRINCIPAL GTL PLANTS AROUND THE WORLD

TABLE 3 (CONTINUED)

HISTORY OF THE GTL INDUSTRY

FIGURE 1 GTL PRODUCTION OPTIONS, TRANSPORTATION FUELS, AND CHEMICALS

TABLE 4 CURRENT WORLD COMMERICAL SYNFUELS CAPACITY (BBL/D)

TABLE 5 COMPARATIVE MERITS AND DRAWBACKS OF FT

PRINCIPAL GTL PRODUCTION PROCESSES

SHELL SMDS

Shell SMDS (Continued)

SASOL GTL PROCESSES

Sasol GTL Processes (Continued)

SASOL CTL PLANTS

STATOIL AND PETROSA

RENTECH

Rentech (Continued)

EXXONMOBIL’S ADVANCED GAS CONVERSION

SYNTROLEUM

BP PILOT PLANT IN ALASKA

CHOREN INDUSTRIES

SYNFUELS INTERNATIONAL

CANMET ENERGY TECHNOLOGY CENTER—CETC SUPERCETANE TECHNOLOGY

Canmet Energy Technology Center…(Continued)

Canmet Energy Technology Center…(Continued)

COMPACT GTL

Compact GTL (Continued)

LNG MARKETS AND CTL

LNG MARKETS AND CTL (CONTINUED)

COAL TO LIQUIDS

National Energy Technology Laboratory Study

Baard Energy CTL Plant

TABLE 6 OPERATING AND PLANNED LARGE COAL GASIFICATION/CTL PLANTS STATUS AS OF 2008

TABLE 6 (CONTINUED)

TABLE 6 (CONTINUED)

TABLE 6 (CONTINUED)

TABLE 6 (CONTINUED)

GTL TECHNOLOGIES

INTRODUCTION

Introduction (Continued)

Introduction (Continued)

GTL OUTPUTS

GTL Outputs (Continued)

GTL Outputs (Continued)

REFORMING

Adiabatic Prereforming

Tubular (or Primary) Reforming

Advanced Reforming

Sulfur-Passivated Reforming

Autothermal Reforming (Catalytic Partial Oxidation)

Two-Step Reforming or Combined Tubular/Secondary Reforming

Heat Exchange Reforming

HYDROGEN SHIFT CONVERSION AND METHANATION

SHIFT CONVERSION

METHANATION

CHAPTER FOUR: INDUSTRY STRUCTURE AND COMPETITIVE DEVELOPMENTS

TIER 1—LARGE DEVELOPERS/PATENT HOLDERS

BHP BILLITON

BP 57

CHEVRON CORP.

CONOCOPHILLIPS CO.

EXXONMOBIL

IVANHOE ENERGY

MARATHON OIL CO

METHANEX CORP.

PETROSA

RENTECH, INC.

REPSOL

ROYAL DUTCH SHELL

SASOL CHEVRON

SASOL SYNFUELS INTERNATIONAL (SSI)

STATOIL

SYNTROLEUM CORP

TOTAL

Total (Continued)

TIER 2—COMPONENT AND ENGINEERING SERVICES SUPPLIERS

ABB LUMMUS GLOBAL GMBH

AIR LIQUIDE GROUP

AIR PRODUCTS AND CHEMICALS, INC.

AMEC PROCESS AND ENERGY, LTD.

AXENS

BASF CORP

BLACK &VEATCH HOLDING CO

CHICAGO BRIDGE AND IRON CO

Chicago Bridge and Iron Co. (Continued)

CRYOMECH, INC

DELTA HUDSON ENGINEERING, LTD.

DESCON ENGINEERING CO., INC.

DOW CHEMICAL CO

ELTRON RESEARCH & DEVELOPMENT, INC.

FLUOR CORP.

Fluor Corp. (Continued)

FMC TECHNOLOGIES

FOSTER WHEELER CORP.

Foster Wheeler Corp. (Continued)

HALDOR TOPSØE A/S

INTEGRATED CONCEPTS AND RESEARCH CORP. (ICRC)

JAPAN OIL, GAS, AND METALS NATIONAL CORP. (JOGMEC)

JOHNSON MATTHEY CATALYSTS

KINETICS TECHNOLOGY INTERNATIONAL CORP. (KTI), INC.

THE LINDE GROUP

LURGI AG

MODEC, INC. (MITSUI OCEAN DEVELOPMENT & ENGINEERING CO., LTD)

NIPPON STEEL

OXFORD CATALYSTS

Oxford Catalysts (Continued)

PALL CORP

PRAXAIR, INC.

SIEMENS

STORK BV

SYNFUELS INTERNATIONAL

TECHNIP

UOP-HONEYWELL

TIER 3—DEVELOPMENT STAGE COMPANIES

ARKENOL

BAARD ENERGY, LLC

CARBON SCIENCES, INC

COMPACTGTL, PLC

HYDROGENICS CORP.

POWER ECALENE FUELS, INC. (PEFI)

SYNTHESIS ENERGY SYSTEMS

WORLD GTL

SCIENTIFIC, GOVERNMENT AND EDUCATION ORGANIZATIONS

ALASKA NATURAL RESOURCES TO LIQUIDS, LLC

ALLIANCE FOR SYNTHETIC FUELS IN EUROPE

ARGONNE NATIONAL LABORATORY (ANL)

CANMET ENERGY TECHNOLOGY CENTER (CETC)

DOE OFFICE OF FOSSIL ENERGY

NATIONAL ENERGY TECHNOLOGY CENTER

IDAHO NATIONAL LABORATORY (INL)

INSTITUTE FRANÇAIS DU PETROLE (IFP)

LEHIGH UNIVERSITY

NATIONAL RENEWABLE ENERGY LABORATORY (NREL)

OAK RIDGE NATIONAL LABORATORY (ORNL)

OFFICE OF INDUSTRIAL TECHNOLOGIES—DOE

UNIVERSITY OF HOUSTON

UNIVERSITY OF KENTUCKY

University of Kentucky (Continued)

CHAPTER FIVE: GTL PRODUCT DEMAND FORECASTS

PRODUCT OVERVIEW

TABLE 7 GLOBAL MARKET FORECAST FOR PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, THROUGH 2014 ($ BILLIONS)

TOTAL UNCONVENTIONAL FUELS MARKET

TABLE 8 PROJECTED GLOBAL UNCONVENTIONAL LIQUID FUELS MARKET, 2005-2014 (MBBL/D)

GTL-FT FUEL DEMAND BY PRODUCT TYPE

DIESEL

GASOLINE

OTHER GTL PRODUCTS

TABLE 9 PROJECTED GLOBAL MARKET FOR FT-GTL TRANSPORTATION FUELS BY PRODUCT TYPE, 2007-2014 ($ BILLIONS)

FT-GTL CHEMICALS DEMAND BY PRODUCT TYPE

TABLE 10 PROJECTED GLOBAL MARKET FOR FT-GTL CHEMICALS BY PRODUCT, 2007-2004 ($ BILLIONS)

GTL CHEMICALS PROCESSING

THE METHANOL MARKET

METHANOL TO GASOLINE PROCESSING

Methanol to Gasoline Processing (Continued)

GTL PRODUCTS—WAXES

GTL PRODUCTS—WAXES (CONTINUED)

GTL PRODUCTS—WAXES (CONTINUED)

FUELS THAT WILL COMPETE WITH GTL

GTL COMPETITORS

Alaska North Slope Possible for GTL by 2015

GROWING GLOBAL LNG DEMAND

CHANGING LNG PROJECT ECONOMICS

WORLDWIDE DEMAND FOR NATURAL GAS

RESOURCE DEVELOPMENT POLICIES—EFFECT ON SUPPLY FOR GTL PLANTS

COAL-TO-LIQUIDS

COAL-TO-LIQUIDS (CONTINUED)

COAL-TO-LIQUIDS (CONTINUED)

FIGURE 2 FLOW CHART: TWO APPROACHES TO PRODUCING LIQUID FUELS FROM COALS

CTL PROJECT ECONOMICS

BIOMASS-TO-LIQUIDS DEVELOPMENTS

TABLE 11 COMMERCIAL BIOMASS-BASED GASIFICATION PLANTS, 2008

BIOMASS-TO-LIQUIDS DEVELOPMENTS (CONTINUED)

BIOFUELS AND RENEWABLE BIOFUELS

ETHANOL

BIODIESEL

OTHER SYNTHETIC CRUDE OILS

OIL SANDS

EXTRA-HEAVY OIL

SHALE OIL

Shale Oil (Continued)

CHAPTER SIX: REGULATORY DRIVERS—THE MACRO ENVIRONMENT

EARLY SYNTHETIC FUELS LEGISLATION

2007-2008 DEVELOPMENTS

2007-2008 DEVELOPMENTS (CONTINUED)

GHGS WILL BECOME A PRIORITY IN LAW AND REGULATION

STATE INITIAVES RELATIVE TO FUELS’ CO2 EMISSIONS

STATE INITIAVES RELATIVE …(CONTINUED)

FUEL STANDARDS ARE DRIVING THE ADOPTION OF GTL

EARLIER INITIATIVES

EARLIER INITIATIVES (CONTINUED)

GOVERNMENT FUNDING FOR GTL RESEARCH AND DEVELOPMENT

GOVERNMENT FUNDING FOR GTL …(CONTINUED)

SNYGAS RESEARCH FUNDING VIA THE HYDROGEN FUEL INITIATIVE

SNYGAS RESEARCH FUNDING …(CONTINUED)

CHAPTER SEVEN: RECENT SIGNIFICANT PATENT ACTIVITY

TABLE 12 COMPANIES ASSIGNED MULTIPLE U.S. PATENTS RELATING TO GTL PRODUCTION DURING THE LAST YEAR (NUMBER)

SELECTED PATENTS

CONVERSION PROCESS

HIGH SURFACE AREA, SMALL CRYSTALLITE SIZE CATALYST FOR FISCHER-TROPSCH SYNTHESIS

PRODUCTION OF ALCOHOLS FROM SYNTHESIS GAS

AMMONIA PLANT CONFIGURATION AND METHODS

METHOD AND APPARATUS FOR PRODUCING PRODUCTS FROM NATURAL GAS INCLUDING HELIUM AND LIQUEFIED NATURAL GAS

METHOD OF GENERATING HYDROCARBON REAGENTS FROM DIESEL, NATURAL GAS, AND OTHER LOGISTICAL FUELS

PROCESS FOR SYNTHESIZING HYDROCARBONS

HIGH PURITY OLEFINIC NAPHTHAS FOR THE PRODUCTION OF ETHYLENE AND PROPYLENE

PROCESS FOR IMPROVING PREREFORMING AND REFORMING OF NATURAL GAS CONTAINING HIGHER HYDROCARBONS ALONG WITH METHANE

SYNTHESIS GAS AND CARBON DIOXIDE GENERATION METHOD

PROCESS FOR THE PREPARATION OF A SUPPORTED CATALYST

PROCESS AND SYSTEM FOR PRODUCING SYNTHETIC LIQUID HYDROCARBON FUELS

PREPARATION OF TITANIA AND COBALT ALUMINATE CATALYST SUPPORTS AND THEIR USE IN FISCHERTROPSCH SYNTHESIS

PROCESS FOR REMOVING ALUMINUM CONTAMINANTS FROM FISCHER-TROPSCH FEED STREAMS USING DICARBOXYLIC ACID

HYDROGEN RECOVERY FROM HYDROCARBON SYNTHESIS PROCESSES

PROCESS FOR THE PRODUCTION OF MIDDLE DISTILLATES BY HYDROISOMERISATION AND HYDROCRACKING FEEDS FROM THE FISCHERTROPSCH PROCESS

STABILIZED TRANSITION ALUMINA CATALYST SUPPORT FROM BOEHMITE AND CATALYSTS MADE THEREFROM

RECOVERY OF ALCOHOLS FROM FISCHER-TROPSCH NAPHTHA AND DISTILLATE FUELS CONTAINING THE SAME

PRODUCTION OF SYNTHETIC TRANSPORTATION FUELS FROM CARBONACEOUS MATERIAL USING SELFSUSTAINED HYDRO-GASIFICATION

PROCESS FOR PRODUCING SYNTHESIS GAS FOR THE FISCHER-TROPSCH SYNTHESIS AND PRODUCING APPARATUS THEREOF

LOW SULPHUR DIESEL FUEL AND AVIATION TURBINE FUEL

PROCESSES FOR MAKING LUBRICANT BLENDS WITH LOW BROOKFIELD VISCOSITIES

PROCESS AND APPARATUS FOR THE PRODUCTION OF USEFUL PRODUCTS FROM CARBONACEOUS FEEDSTOCK

PRODUCTION OF LOW SULFUR, MODERATELY AROMATIC DISTILLATE FUELS BY HYDROCRACKING OF COMBINED FISCHER-TROPSCH AND PETROLEUM STREAMS

CATALYSTS

FISCHER-TROPSCH COMPOSITION AND PROCESS

SUPPORTED CATALYST

FISCHER-TROPSCH CATALYST PRODUCTION

PROCESS TO PREPARE A HEAVY AND A LIGHT LUBRICATING BASE OIL

HYDROPROCESSING METHODS AND APPARATUS FOR USE IN THE PREPARATION OF LIQUID HYDROCARBONS

SYSTEMS AND METHODS OF IMPROVING DIESEL FUEL PERFORMANCE IN COLD CLIMATES

METHOD FOR PRODUCING LONG-CHAIN HYDROCARBONS FROM NATURAL GAS

FISCHER-TROPSCH CATALYST, PREPARATION, AND USE THEREOF

HOMOGENEOUS MODIFIED-ALUMINA FISCHERTROPSCH CATALYST SUPPORTS

BLENDING FOR DENSITY SPECIFICATIONS USING FISCHER-TROPSCH DIESEL FUEL

OXYGENATE TREATMENT OF DEWAXING CATALYST FOR GREATER YIELD OF DEWAXED PRODUCT

PROCESS FOR REMOVING CONTAMINANTS FROM FISCHER-TROPSCH FEED STREAMS

PROCESS TO PREPARE A WAXY RAFFINATE

PROCESS FOR THE PRODUCTION OF MIDDLE DISTILLATES BY HYDROISOMERISATION AND HYDROCRACKING FEEDS FROM THE FISCHERTROPSCH PROCESS

RECEPTION, PROCESSING, HANDLING, AND DISTRIBUTION OF HYDROCARBONS AND OTHER FLUIDS

PRODUCTION OF HYDROCARBONS

METHOD AND APPARATUS FOR REGENERATING AN IRON-BASED FISCHER-TROPSCH CATALYST

PROCESS FOR CONVERTING GASEOUS ALKANES TO LIQUID HYDROCARBONS

INTEGRATED PROCESSING OF NATURAL GAS INTO LIQUID PRODUCTS

GAS-TO-LIQUIDS FACILITY FOR FIXED OFFSHORE HYDROCARBON PRODUCTION PLATFORMS

MODIFICATION OF A METHANOL PLANT FOR CONVERTING NATURAL GAS TO LIQUID HYDROCARBONS

PROCESS FOR THE RECOVERY OF OIL FROM A NATURAL OIL RESERVOIR

APPARATUS FOR PRODUCING HIGH MOLECULAR WEIGHT LIQUID HYDROCARBONS FROM METHANE AND/OR NATURAL GAS

MANAGING HYDROGEN IN A GAS TO LIQUID PLANT

METHOD FOR CONVERTING NATURAL GAS TO LIQUID HYDROCARBONS

LIST OF TABLES

SUMMARY TABLE GLOBAL MARKET FORECAST OF PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, THROUGH 2014 ($ BILLIONS)

TABLE 1 DISTRIBUTION OF WORLD STRANDED NATURAL GAS RESOURCES BY REGION, 2008 (PERCENT DISTRIBUTION)

TABLE 2 KEY EXAMPLES OF GTL DEMONSTRATION PLANTS

TABLE 3 LIST OF PRINCIPAL GTL PLANTS AROUND THE WORLD

TABLE 3 (CONTINUED)

TABLE 4 CURRENT WORLD COMMERICAL SYNFUELS CAPACITY (BBL/D)

TABLE 5 COMPARATIVE MERITS AND DRAWBACKS OF FT

TABLE 6 OPERATING AND PLANNED LARGE COAL GASIFICATION/CTL PLANTS STATUS AS OF 2008

TABLE 7 GLOBAL MARKET FORECAST FOR PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, THROUGH 2014 ($ BILLIONS)

TABLE 8 PROJECTED GLOBAL UNCONVENTIONAL LIQUID FUELS MARKET, 2005-2014 (MBBL/D)

TABLE 9 PROJECTED GLOBAL MARKET FOR FT-GTL TRANSPORTATION FUELS BY PRODUCT TYPE, 2007-2014 ($ BILLIONS)

TABLE 10 PROJECTED GLOBAL MARKET FOR FT-GTL CHEMICALS BY PRODUCT, 2007-2004 ($ BILLIONS)

TABLE 11 COMMERCIAL BIOMASS-BASED GASIFICATION PLANTS, 2008

TABLE 12 COMPANIES ASSIGNED MULTIPLE U.S. PATENTS RELATING TO GTL PRODUCTION DURING THE LAST YEAR (NUMBER)

LIST OF FIGURES

SUMMARY FIGURE GLOBAL MARKET FORECAST OF PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, 2007-2014 ($ BILLIONS)

FIGURE 1 GTL PRODUCTION OPTIONS, TRANSPORTATION FUELS, AND CHEMICALS

FIGURE 2 FLOW CHART: TWO APPROACHES TO PRODUCING LIQUID FUELS FROM COALS