Lurgis MegaMethanol Process Atlas and Beyond

Jim Aiello

Houston - January 19, 2005

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Agenda

MegaMethanol Concept Atlas Execution MegaMethanol Status Technology Improvements Downstream Technologies Conclusions

MegaMethanol Concept

MegaMethanol
> 1 million t/a methanol single train capacity

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

Atlas Methanol: Worlds largest operating MeOH Plant at 5000 mtpd

Low investment and very competitive production cost

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 Clients input / optimization throughout the entire project execution period

Atlas Execution
Proven process concept (Lurgi MegaMethanol by Combined Reforming)
Natural Gas PreReforming Steam Reforming Fired Heater Steam System

Desulphurization

Autothermal Reforming

Two-Step Synthesis

Methanol Distillation

Air Intermediate Tank Farm Instument& Plant Air

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Oxygen AirSeparation Water Treatment Flare System Desalination Methanol Tank Farm

Fuel Sweet Water Cooling Fire Fighting System

PSA Sea Water Cooling Auxiliary Boiler

Pure Methanol Emergency Power Gen. 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

Atlas Execution

Autothermal Reformer
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Atlas Execution

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

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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

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Atlas Execution
D. Quantities Largest equipment: atmospheric column, 80m long, 500 tons auxiliary boiler, 480 tons gas cooled methanol reactor, 460 tons

4,500 piles 20,000 m 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 m painting
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60,000 m insulation

Atlas Execution
Time schedule Pre-Engineering Contract effective date Construction Pre-Commissioning Commissioning 1st Methanol Production Commercial Production (85%) Performance Test passed
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Dec. 2000 - May 2001 Sept. 1st, 2001 Sept. 2001 - May 2004 Sept. 2003 - March 2004 Nov. 2003 - May 2004 June 2nd, 2004 July 24th, 2004 Oct. 5th, 2004

Lurgi MegaMethanol Status

Contract status:
On stream: Atlas Methanol, Trinidad 5,000 t/d

Under construction: Zagros I, Iran Zagros II, Iran Chile IV, Chile 5,000 t/d 5,000 t/d 2,400 t/d

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Lurgi MegaMethanol Status

Lurgi Contract status Under design: Hainan, China Acetex / Tasnee, Saudi Arabia Qafac, Qatar 2,000 t/d 5,400 t/d 6,750 t/d

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Technology improvements
Period Plant Capacity Net Production Cost per t of methanol *
US$ 100,00 - 120,00 US$ 80,00 - 90,00 US$ 50,00 - 60,00 US$ <40,00

1995 - 1999 1999 - 2000 2000 - 2003 Future synthesis gas production using highpressure process
(HP Pox Freiberg)

approx. 2.000 tpd approx. 2.500 tpd approx. 5.000 tpd approx. 10.000 tpd

are the driving force to lower production costs of methanol

* gas prices in the range between US$ 0.5 and 1.00 per MMBTU
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Technology Improvements: Synthesis gas production has strong impact on plant cost

Air Separation Air Separation Unit Unit

Oxygen Associated Gas Natural Gas

Synthesis Gas Synthesis Gas Production Production

Methanol Methanol Synthesis Synthesis

Methanol

60% of the plant cost *)

40% of the plant cost*)

approx. 30 bar operating pressure in conventional plants approx. 70 - 100 bar operating pressure in new development (HP-POX)
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Technology Improvements: Combined Reforming at PetroSA (Mossgas) Fischer-Tropsch Plant The largest synthesis gas plant in the world

Capacity: 3 x 268 MMSCFD syngas Start-up: 1992

ATR is the key for large-scale syngas plants and the only way to benefit from economy of scale
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Technology improvements
Vision for future / new developments Further increase of one train capacity - Lurgi pilot plant HP POX Freiberg - Pure Autothermal Reforming at higher pressure without syngas compressor Further development of downstream applications (MTO, MTP, MTC, MtPower)

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Downsteam Technologies
Diesel Gasoline
Fischer Tropsch Synthesis Upgrading

LPG Fuel Gas Waxes/Lube Oil

MtPower

Power Fuel Cells Chemicals (MTBE, Acetic Acid, Formaldehyde) Diesel/Gasoline Propylene/Polypropylene
Acrylic Acid

MegaSyn

Natural Gas / Associated Gas

MtSynfuels

MegaMethanol

MTP MTO MTD MTH

Acrylic Acid/Acrylates Ethylene/Propylene Fuel (DME) Hydrogen Ammonia/Urea/Fertilizer

Megammonia

MegaSyn & MegaMethanol open the door for Gas-to-Chemicals

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Downstream Technologies:

MTP - Current Status

More than 7000 operating hours of pilot plant in Frankfurt
~ 11000 operating hours in Demo Unit at Statoil TBO plant results confirm expectations for selectivities, conversion, lifetime results exceed expectations for cycle lengths

Catalyst is commercially manufactured and available Process Design of Commercial Plant is completed First Commercial Plant (100,000 tpa) is signed Several LOI signed for world-scale capacities

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Downstream Technologies:

Beyond Mega-Plants: The Hub Concept

Air Natural Gas GOX ASU SN=2.05 MeOH Synloop Gas Generation & distillation MeOH 5000 MTPD

Stand Alone Concept

Natural Gas H2/N2 Air Gas Generation NH3 Synloop NH3 4000 MTPD

Air

The Hub Concept

Natural Gas GOX ASU Gas Generation SN=2.05 MeOH Synloop & distillation MeOH 5000 MTPD

GAN
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H2/N2 NH3 Synloop

NH3 4000 MTPD

Downstream Technologies:

Hub Concept / Gas Based Refinery

Dimethylether

Fuels Kerosene DME Plant Natural Gas Associated Gas

H2

COD Plant
Propylene

Diesel Gasoline

Fuel Additives

Syngas Plant

MeOH Plant
CO

Methanol

MTP Plant

Polypropylene

Pipes Films Packaging SAP Diapers Dispersions Paints Fibres ABS/SAN Adhesives Solvents Films

ASU

O2 N2 H2

O2

Acrylic Acid OxoAlcoho l Plant Acrylates

CO/H2 O2

Air

Ammonia Plant

Acrylonitrile
Ammonia

MeOH Acetic Acid Plant

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Acetates

CO

Conclusions
Lurgi MegaMethanol is a very competitive plant concept Lurgi R&D is actively developing further plant capacity increases Lurgis gas conversion technologies (MegaSyn and MegaMethanol) open the door for downstream methane based petrochemical applications MTP converts methane to Propylene and is being commercially implemented Methanol is a commercially viable fuel for power generation and acceptable to turbine manufacturers The economics of MtSynfuels are comparable to those of Fischer Tropsch The Hub concept / gas-based refinery is ready for implementation
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Thank You!

Contact: James G. Aiello

Director Business Development Lurgi 333 N. Sam Houston Pkwy E., Suite 400 Houston, Texas Phone Fax e-mail

Questions?
281-582-8892 281-582-8894 Jaiello@lurgipsi.com

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