Lurgi Mega Methanol by Combined Reforming

Lurgi’s MegaMethanol® Process Atlas and Beyond

Jim Aiello

Houston - January 19, 2005 1

Agenda

MegaMethanol® Concept Atlas Execution MegaMethanol® Status Technology Improvements Downstream Technologies Conclusions

2

MegaMethanol® Concept

 MegaMethanol® –

> 1 million t/a methanol single train capacity

 Technical Features – – –

3

Oxygen-blown synthesis gas production Two-step methanol synthesis Hydrogen recovery

Atlas Methanol: World’s largest operating MeOH Plant at 5000 mtpd

Low investment and very competitive production cost

4

Atlas Execution

 First of its kind MegaMethanol® Plant  Single train process  Largest Methanol Plant at 5,000 mt/d  Energy consumption of less than 30 million BTU per mt methanol  Lurgi executed lump sum turn-key project  Consideration of Client´s input / optimization throughout the entire project execution period

5

Atlas Execution Proven process concept (Lurgi MegaMethanol® by Combined Reforming) Natural Gas

Air

6

PreReforming

Steam Reforming

Desulphurization

Autothermal Reforming

Oxygen AirSeparation

Fired Heater

Fuel

Steam System

Two-Step Synthesis

Methanol Distillation

PSA

Pure Methanol

Intermediate Tank Farm

Water Treatment

Desalination

Sweet Water Cooling

Sea Water Cooling

Emergency Power Gen.

Instument& Plant Air

Flare System

Methanol Tank Farm

Fire Fighting System

Auxiliary Boiler

Rain Water System

Atlas Execution Competitive Engineering - Lurgi home office and Lurgi subsidiaries A. Design

 2 water cooled methanol reactors and 1 gas cooled methanol reactor (new development)

 largest Autothermal Reformer worldwide with a new burner design (new development)

 Process optimization and combination / selection of individual process steps in order to realize the scale-up of the plant

 large equipment due to scale-up e.g.fired heater / atmospheric column / waste heat boiler system

7

Atlas Execution

Autothermal Reformer 8

Atlas Execution

9

Methanol Synthesis

Atlas Execution

B. Procurement

 World-wide procurement of equipment  Bankruptcy of some equipment suppliers  Quality: comprehensive expediting & inspection to ensure high quality standards

10

Atlas Execution

C. Construction

 4 million man-hours without lost time accident  8.5 million construction man-hours in total  peak 150 Lurgi construction personnel  peak 2,200 people from construction subcontractors

11

Atlas Execution D. Quantities

 Largest equipment: atmospheric column, 80m long, 500 tons auxiliary boiler, 480 tons gas cooled methanol reactor, 460 tons

12

 4,500 piles  20,000 m³ concrete  4,100 t steel structure  4,100 t piping incl. PU  5,500 m FRP piping  230,000 m cable  3,000 instruments  50,000 m² painting  60,000 m² insulation

Atlas Execution Time schedule

13

Pre-Engineering

Dec. 2000 - May 2001

Contract effective date

Sept. 1st, 2001

Construction

Sept. 2001 - May 2004

Pre-Commissioning

Sept. 2003 - March 2004

Commissioning

Nov. 2003 - May 2004

1st Methanol Production

June 2nd, 2004

Commercial Production (85%)

July 24th, 2004

Performance Test passed

Oct. 5th, 2004

Lurgi MegaMethanol® Status Contract status: On stream:

 Atlas Methanol, Trinidad

5,000 t/d

Under construction:

14

 Zagros I, Iran

5,000 t/d

 Zagros II, Iran

5,000 t/d

 Chile IV, Chile

2,400 t/d

Lurgi MegaMethanol® Status Lurgi Contract status Under design:

15

 Hainan, China

2,000 t/d

 Acetex / Tasnee, Saudi Arabia

5,400 t/d

 Qafac, Qatar

6,750 t/d

Technology improvements… Period

Plant Capacity

Net Production Cost per t of methanol *

1995 - 1999

approx. 2.000 tpd

US$ 100,00 - 120,00

1999 - 2000

approx. 2.500 tpd

US$ 80,00 - 90,00

2000 - 2003

approx. 5.000 tpd

US$ 50,00 - 60,00

Future synthesis gas production using highpressure process

approx. 10.000 tpd

US$