New Chem Systems report indicates economic viability of stranded gas utilization
Chem Systems' conclusions are based on an analysis of diesel, gasoline, dimethyl ether (DME), and methanol in the fuel category and methanol, olefins, and ammonia in the chemicals category. The technologies evaluated include Gas-to-Liquids (GTL), methanol to gasoline (MTG), methanol to olefins (MTO), olefins to gasoline and distillates (MOGD), DME processes, large-scale methanol processes, and power generation from methanol.
The potential economics of producing synthetic fuels and chemicals at a remote Middle East location and shipping them to industrialized markets including the U.S. Gulf Coast (USGC), Western Europe, and Japan indicate that there are several promising combinations of technology and product. The following conclusions have been drawn:
- Technologies for the production of middle distillates via GTL processes are in various stages of development, with the more commercially proven ones showing a great potential for fuel alternatives and higher value products. This analysis deals with the delivered cost of the synthetic fuels to the USGC, Western Europe and Japan. The economic indications of this study are that the use of these technologies is highly promising.
- Production of DME via the emerging one-step processes is not yet competitive with DME produced via the conventional two-step approach (natural gas to methanol and then methanol to DME). The economics of either technology are shown to be competitive with diesel fuel market prices.
- Technologies for the production of gasoline and gasoline mixtures via MTG and MOGD are not projected to be economically competitive compared to conventional production from petroleum.
- Methanol to olefins (MTO) technologies can produce mixtures of ethylene and propylene of various ratios or primarily propylene, depending on the process. This evaluation compared the costs for production of total olefins for the various processes (ExxonMobil, Lurgi and UOP/Hydro) and the competitiveness of producing and exporting polypropylene to the USGC and Western Europe. The analysis suggests that the export of polypropylene produced in an integrated methanol to propylene (MTP) and propylene to polypropylene complex in the Middle East can be competitive with USGC and Western Europe locally produced polypropylene.
- The production of ammonia from remote natural gas, as measured by the delivered cost of urea produced from an integrated ammonia/urea complex in the Middle East, is not generally competitive with the respective local market prices for urea.
- The generation of power from methanol produced from large-scale methanol plants is not projected to be competitive with power produced from natural gas in the USGC, but is estimated to be competitive with power produced from LNG.
The report entitled "Stranded Gas Utilization: Methane Refineries of the Future" is currently available for purchase from Chem Systems. For further information, please visit Chem Systems on the Web at www.chemsystems.com or contact:
Mr. Ed S. Glatzer
Chem Systems
(914) 288-5520
glatzer@us.ibm.com
Dr. Y. Larry Song
Chem Systems
(914) 288-5523
ylsong@us.ibm.com
Or write to either of the above at:
Chem Systems, an IBM Company
44 South Broadway
White Plains, NY 10601
About Chem Systems' Reports
The more than 250 reports available via www.chemsystems.com include volumes from a variety of research services, including Process Evaluation/Research Planning (PERP), Petroleum and Petrochemical Economics (PPE), and Polyolefin Planning Service (POPS), Fertilizer Quarterly Business Analysis (FQBA), as well as special industry reports on a multitude of timely topics of interest to the industry.
About Chem Systems
Chem Systems, with offices and representatives in New York, London, Bangkok, Beijing, Buenos Aires, Chennai, Hong Kong, Houston, Moscow and Tokyo, was founded in 1964. The company is a leading provider of consulting services for various industry segments, including energy and refining, petrochemical and commodities, specialty and fine chemicals, plastics, polymers and advanced materials, utilities, and fertilizers and inorganics. Chem Systems helps clients increase business value through consulting assistance in all aspects of business strategy. The company was acquired by IBM in April 1998.
CONTACT:
Chem Systems (an IBM Company)
Patricia Carron, 914/288-5612
chem08@us.ibm.com
or
The Turnaround Team
Ned Ward, 908/654-7117
nward@turnaround.com
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