17th Uzbekistan International Oil & Gas Exhibition

Uzbekistan - The Gas Value

Roberto DI CINTIO Technology manager, Gas Processing
14 - 16 May 2013 - UzExpocentre Tashkent, Uzbekistan
Technip Today
With engineering, technologies and project management, on land and at sea, we safely and
successfully deliver the best solutions for our clients in the energy business
Worldwide presence with 36,500 people in 48 countries
Industrial assets on all continents, a fleet of 32 vessels (4 of which under construction)
2012 revenue: USD 10.8 billion
2012 net income: USD 712 million
Energy is at the core of Technip
2
3
Technip Presence Across the Gas Value Chain
Petrochemicals
- Ammonia/Urea
- Hydrogen
- Polyethylene
- Polyvinyl chloride Steam cracker
(Ethylene)
Associated Gas
Non- Associated Gas
Natural
Gas
Pipeline
Onshore
Liquefaction
C
5
-
12
C
5-20
Methane (C
1
)
Ethane (C
2
)
C
3
/C
4
Gasoline
Condensate
LPG
CO
2
Water Sulphur
Oil Field Facilities
inc. Shale oil
Gas Field Facilities
inc. Shale gas
Offshore
Liquefaction
Qatar LNG
Prelude FLNG, Australia
Oryx GTL, Qatar
Phu My Fertilizer, Vietnam
Gas Processing
Kupe, New Zealand
Yansab, Saudi Arabia
GTL
Coal bed
methne
LNG PLANT, ARZEW (1964), ALGERIA
ACID GAS REMOVAL, ORENBURG, RUSSIA
(3 x 1,935 million SCFD)
GAS LIFT, SAMOTLOR & FYODROVSK, RUSSIA
(2,400 wells)
LPG PLANT, ZUBAIR, IRAQ
( 5.5 million tons/ year)
SULFUR RECOVERY, ASTRAKHAN, RUSSIA
(8 x 2,250 tons/ day)
BIGGEST IN THE WORLD
FIRST IN THE WORLD
Technip in the Gas Chain - Key References
CO2 REMOVAL ON MEMBRANES
(750 million SCFD CO2 removed)
GTL, ORYX, QATAR
(34,000 BBLD)
LNG TRAINS
QATARGAS / RASGAS
(6 x 7.8 Mtpa )
4
Uzbekistan in the Gas Business
Uzbekistan holds an estimated 65 Tcf
(Trillion cubic feet) of proven natural gas
reserves as of 2012, ranking it the fourth
highest in the Eurasia region and
nineteenth in the world
Uzbekistan is currently the second largest
gas producer in the Eurasia region
Uzbekistan ranks in the top thirteen
natural gas producing countries in the
world
Uzbekistan produces about 55 bcmy (2.1
Tcfy ), 43 bcmy are internally consumed
and about 12 bcmy are exported
Source: US EIA 2012
5
Uzbekistan Gas Monetization Options
The Uzbekistan gas production can be
turned into valuable products via
different routes:
1. The Petrochemical route (Ethylene)
2. The Synthetic fuels route (Gas-to-liquids)
3. A combination of the above two routes (the
Hybrid option)
4. The (Small Scale) LNG route
The Petrochemical route includes 3
Process plants:
1. The Gas Processing Plant to extract Ethane
and heavier hydrocarbons fromthe Feed gas
2. The Ethylene Plant to convert Ethane into
Ethylene
3. The PolyEthylene plant to produce Polymers
and Utilities/Off-sites
The Gas-to-liquids route and the LNG
route is a single Process Plant (plus
Utilities and Off-sites)
6
Uzbekistan
Gas
ssLNG
Petrochemical
GTL
1. The Petrochemical Option
The Uzbekistan gas is a medium-light gas
with a percentage of Ethane and Heavier
hydrocarbons around 7% on volume basis
The Petrochemical Complex is based on
the Ethylene production from Ethane
extracted from the Feed gas
The amount of Natural gas to be treated
depends on gas composition and the
target Polyethylene production
Assuming a 350 ktpa PE production and a
4-5% Ethane content in the Natural gas
the amount of required feedstock is 8
bcmy
Propane and Heavier hydrocarbons from
Feed gas are fractionated into LPG and
Light gasoline
7
2. The Gas-To-Liquids Option
The GTL plant size is set at 39,000 bpsd of GTL
products
The amount of Natural gas to deliver 39,000
bpsd of GTL products is about 3.8 bcmy
GTL Plant typical products slate (bpsd):
Diesel 25,000
Naphtha 12,000
LPG 2,000
The GTL plant can be designed to produce
Kerosene (jet fuel) in addition to the above
products if required
The quality of the Uzbek gas is such that it can
be fed directly to the GTL plant. Only
contaminants have to be removed
The quality of the produced Naphtha is highly
paraffinic making it an ideal feed for an Ethylene
plant.
Naphtha production from a 39,000 bpsd GTL
plant to a Steam cracker delivers an Ethylene
production in the range of 150-160 ktpa
8
3. The Hybrid Option
The Hybrid Option is a combination of the two previous Options
and can be implemented in two Phases:
Phase 1 - only the GTL plant is built
Phase 2 - a SteamCracker is added and the GTL plant is duplicated in
capacity
The Ethylene plant is fed by both Ethane (extracted from Natural gas)
and paraffinic Naphtha produced by the GTL plant
In this configuration valuable olefins (Ethylene, Propylene, C4
cut and Pyrolysis gasoline) are produced together with high
quality diesel
The configuration of these Options is outlined in the following
slides
9
Ethylene
GPP
8 bcmy
Ethylene
350 ktpa
Polyethylene
Polyethylene
350 ktpa
Options Configuration
The Petrochemical Option
GTL
39000 bpsd
Hydrogen
C3+ cut
to Fuel System
LPG 2000 bpsd
Diesel 25000 bpsd
Naphtha 12000 bpsd
Feed Gas
Feed Gas
3,8 bcmy
GTL
39000 bpsd
Ethane
The GTL Option
Ethylene
750 ktpa Naphtha
12000bpsd
Ethylene
Propylene
C4 Cut
Pyrolysis
Gasoline
Lean Gas
Lean Gas
3,8 bcmy
GPP
8 bcmy
Naphtha 0 bpsd
(Hybrid Option, Phase II )
Ethane
The Hybrid Option
LPG 1280 t/d
C5+ 330 t/d
LPG
C5+
10
4. The Small Scale LNG Option
F
Local gas distribution
network
11
Option Selection
The most convenient Option to monetize the
Uzbekistan gas depends on many factors:
Local market demand for transportation fuels
(Diesel, Kero)
Local market demand for Petrochemical products
(PE, PP, others)
Existinginfrastructures for domestic gas delivery
Price of Natural gas and Products value
Logistics (i.e. equipment & material size/weight and
transportation)
Project Execution Schedule
The GTL option schedule has been estimated fewmonths
longer thanthe Petrochemical optionschedule
The LNG optionshows the shortest executionschedule
12
Uzbekistan
Gas
Monetization
The Petrochemical Option
13
The Petrochemical Option
The Petrochemical Complex incudes the following Plants:
1. Gas Processing Plant GPP (Contaminants Removal, NGL Recovery and
NGL Fractionation)
2. Ethylene Plant EP (SteamCracker)
3. Polyethylene - PE
4. Utilities &Offsites
The Ethylene Plant will be fed by Ethane only and Ethylene will be
the only produced Olefin
The recovered LPG will be sold to the market
The recovered C5+ will be routed to a nearby Refinery for
upgrading
14
The Petrochemical Option(cont)
Recovered Propane, Butanes and C5+ are not considered as
feedstock to the Ethylene plant for the following reasons:
Ethylene amount obtainable from Propane and Butanes cracking is lower
compared to the Ethane cracking (40%instead of 80%with ethane)
An entire distillation section would be required to capture the Propylene
production (Propylene production would be very low compared to the Ethylene
production)
There would be a significant amount of by-products which would require further
treatment (like unsaturated C4s, Pyrolysis gasoline) and consequently a more
complex plant
More sophisticated and costly plant: about 20%more expensive
Recovered C5 plus are not considered a feedstock to the Ethylene
plant for the following main reason:
It would turn the Gas Cracker into a Liquid Cracker, which is significantly more
costly than a Gas Cracker
15
Ethane to
SteamCracker
A
c
i
d

G
a
s

t
o

I
n
c
i
n
e
r
a
t
o
r
C5+
to B.L.
LPG
to B.L.
P
r
o
c
e
s
s
w
a
t
e
r
Feed Gas
Dovletbad-1 Gas
Sweet
Gas
F
l
a
s
h

G
a
s

t
o

F
u
e
l
G
a
s

S
y
s
t
e
m
Dry
Gas
NGL
Recovery
Unit
NGL
C2/C3/C4
NGL
Fractionation
Unit
Treated Gas
Compression
Station
Lean Gas
Flue Gas
L
e
a
n
G
a
s
Note 1
Note 1: When the Ethylene plant is off-line, the NGL Recovery
Unit works in reinjection mode and Ethane is mixed
with treated gas
Dovletbad-2 Gas
Dovletbad-3 Gas
Gurrukbil Gas
Inlet
Receiving
Facilities
Gas
Sweetening
Unit
Dehydratation
Unit
(option Hg
Removal)
GPP Block Diagram
16
Total capacity: over 30,000 MMSCFD
Technip Gas Processing - Key References
17
Units
Number
of Units
Total Capacity
Largest Unit
Capacity
Sweetening 56 20,000 mmscfd 1,500 mmscfd
Dehydration 76 30,300 mmscfd 1,450 mmscfd
NGL Recovery 57 21,800 mmscfd 1,400 mmscfd
Liquefaction 42* 10,000 mmscfd 1,300 mmscfd
Sulfur Recovery 80 35,000 t/d 2,250 t/d
Tail Gas Treatment 19 2,400 mmscfd 210 mmscfd
* Including LNG FEED contracts
GPP - The NGL Recovery
A very high Ethane recovery can be achieved
Ethane recovery is easily set at 95-97% of the Ethane amount in the
Feed gas
Propane and heavier hydrocarbons recovery is 100%
Any upset in the Ethylene plant does not affect GPP plant operation.
When the Ethylene plant is off-line, the NGL Recovery Unit works in
rejection mode, i.e. recovered Ethane is mixed with treated gas
Technip owns a wide experience in Gas processing and specifically
in the NGL recovery unit. Several patents have been filed
CRYOMAX

is the Technip's Trade Name in NGL Recovery

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CRYOMAX

Technip's Trade Name in NGL Recovery
Open-Art Technology backed by Technip's
experience
Mechanical Refrigeration (e.g. Propane Cycle)
J oule-Thomson expansion processes
Turbo-Expander expansion processes
Patented schemes for enhanced recovery (> 90%)
Turbo-Expander expansion processes
Propane Recovery gas plant and LNG versions
Ethane Recovery gas plant and LNG versions
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A Cryomax process scheme is customized
for each project
CRYOMAX and Hydrocarbons Recovery
The CRYOMAX

family includes many schemes for the Ethane

Recovery:
SRE Single reflux Ethane
FVR Flash vapour reflux
DRE Dual Reflux Ethane
MRE Multi Reflux Ethane
LNG Demethaniser fed by scrub tower overhead
FLEX-E High propane recovery with variable ethane
Considering the Feed gas composition, the DRE Dual Reflux
Ethane is selected as it features High Ethane extraction rate from
the Feed gas at high energy efficiency
20
Dual Reflux Ethane Recovery Cryomax DRE
Dual Demethanizer reflux
Turbo-expander bypass used as bulk reflux
Lean gas recycle from sales gas allows up to 99% ethane recovery to
be reached
Capacity: 450 MMscfd
21
Qatar Petroleum - North Field - NGL Recovery
Capacity: 800 MMscfd
Cryomax DCP
22
The Ethylene Plant is fed directly by Ethane from GPP
Pure Hydrogen (99.99% vol) is a valuable by-product from the
Ethylene plant and can be exported to the nearby Refinery (or
GTL plant)
Fuel gas import is required to balance Plant energy demand. The
amount of Fuel gas import depends on the amount of the
Hydrogen export
The C3+ cut from the Fractionation section is routed to Battery
limits to be used as fuel in Boilers/Heaters
Ethylene Plant
23
Grass Root Ethylene Plants from Gas cracker
(Ethane/Propane) awarded since 2001
14,5 MillionTPA grassroots ethylene plants from gas feed
developed by Technip/SW since 2001, representing about 60% of
the market share (14,5MTA versus 25,4MTA or 13 plants over 22)
Country Company Location Feedstocks Capacity Licensor Status
USA CPChem CedarBayouTx E 1500 S&W FEED
DowLHC9 FreeportTx E 1500 Technip FEED
FormosaPlastic PointConfortTx E 850 Other FEED
Sasol LakeCharlesLa E 1500 S&W FEED
Oxychem InglesideTx E 500 Other FEED
Mexico Braskem/Idesa Coatzacoalos E 1100 Technip EPCphase
Russia Sibur Tobolsk EP 1500 Other FEED
Iran AryaSasol Assaluyeh E 1000 Technip Operation2007
Marun BandarImam E 1100 Other Operation2007
Moravid Assaluyeh E 500 Technip Operation2010
Kuwait OL2K Shuaiba E 850 Technip Operation2008
Qatar RLOC RasLaffan E 1300 Technip Operation2010
KSA JUPC AlJubail E 1350 Other Operation2007
PetroRabigh Rabigh E 1250 S&W Operation2009
SaudiPolymer AlJubail EP 1200 Other Operation2010
Sharq AlJubail EP 1200 S&W Operation2009
Yansab Yanbu EP 1300 Technip Operation2009
UAE Borouge Ruwais E 1400 Other Operation2010
Borouge Ruwais E 1500 Other EPCphase
India Gail Auriya E 450 S&W EPCphase
Reliance Jamanagar EP(ROG) 1400 Technip EPCphase
Thailand PTT MapTaPhut E 1100 Other EPCphase
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Ethylene Production: 1,380 ktpa (pre-investment to 1,700 ktpa)
Propylene Production: 400 ktpa
FEED and EPC contract in LSTK
100% Propane to 100% Ethane Feed
Largest grassroots plant in the world after expansion
Start-up July 2009
Yansab, Kingdom Saudi Arabia
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World Largest Cracking Furnaces
Yansab KSA- Largest ethane
Furnace in operation:
210kta per radiant box
MOC Thailand- Largest liquid
Furnace in operation:
150kta per radiant box
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Lower number of furnaces: lower investment, lower maintenance
The GTL Option
27
1.55 mi l l i on t /y of l i qui ds
3.8 bc my of nat ur al gas
39,000 bpsd
The Gas-to-Liquids Plant
t ur ned i nt o
28
The Quality of the GTL Products
FT Diesel:
Virtually sulfur free (< 5 ppm), near zero aromatics, high cetane number
(> 70), high smoke point, specific gravity: 0.775
FT Naphtha:
Virtually sulfur free, highly paraffinic, ideal for cracker feedstock,
specific gravity: 0.66
29
The GTL Plant
The GTL technology enables gas-rich countries to strategically
diversify their gas monetisation options
Standard Products shipping and no long-term commitment
High quality Diesel product
Very high paraffinic Naphtha product
Naphtha from the GTL plant is a potential high quality feedstock
for an Ethylene plant
The current GTL plant industrial size is 39,000 bpd of synthetic
fuels (Diesel, Naphtha, LPG) with a two Trains configuration
based on Sasol technology
30
The GTL Plant
The plant consists of 2 parallel trains of the so-called gas-loop
(Air Separation Unit (ASU), Synthesis Gas Unit and Fischer
Tropsch Unit) that the core process units of the GTL plant
Each process train is able to operate independently of the other
one
The GTL plant has a modular structure and the total production
capacity depends on the number of installed trains
A phased development of the GTL plant can therefore be
considered
31
The GTL Plant
The GTL plant is designed as a stand alone self-sufficient
complex
All utilities are produced within plant battery limits.
The only materials supplied at Plant battery limits are:
Natural gas
Rawwater
Electric power (as back-up, if available)
Feeding the Naphtha production from a 39000 bpsd GTL plant to a
Steam cracker delivers an Ethylene production in the range of
190-200,000 ton/y
32
GTL plant overall block flow diagram
Process Units Utilities/Off-sites
Ancillary
Process Units
33
Technip major experience in GTL
PETROSA, SOUTH AFRICA
Development of FEED 1,000 bpsd
2001
STATOIL technology
PETROSA, SOUTH AFRICA
LSTK contract / US$ 26 million 1,000 bpsd
2002
STATOIL technology
ORYX GTL LTD, QATAR
LSTK contract / US$ 675 million 34,000 bpsd
2003
SASOL technology
Development of FEED
UZGTL, Uzbekistan
2012
39,000 bpsd
SASOL technology
34
Oryx GTL Plant

35
The Small Scale LNG Option
(SSLNG)
36
SSLNG Market Trend Summary
In recent years there has been an
increase in activity in remote areas
Stranded Gas
Communities which are isolated where installing
a distribution grid is too costly
Many countries can take benefit from
SSLNG
China
India
Brazil
Vietnam
USA
Thailand
Norway
37
Small scale LNG
Low end capacity: 50 t/d to 500 t/d (Mini)
Used for :
Peak shaving,
Distribution of NG to satellite stations by road
Truck refuelling
Liquefaction process uses generally Plate Fin Heat
Exchangers in a cold box
Unit generally assembled on skids in a fabrication shop
The tank is proportionally a bigger cost item
Projects of this type are known in USA, China, India,
Brazil, Vietnam and Thailand
High end capacity: 500 t/d to 1500 t/d (Mid )
Liquefaction of gas from remote inland fields
Liquefaction process uses one SWHE or a PFHE cold
box
Small modules or stick built
Projects of this type are underway in China
Dynevor Arms Wales, 1982 - 200t/d
38
Ningxia Hanas,China, 2011 - 2 x 1,100t/d
LNG transportation by road
39
Small scale LNG- Satellite stations (regasification
of LNG for distribution to local users)
40
41
Small scale LNG Plant Typical Block Diagram
BOG RECYCLE
REGEN GAS RECYCLE
FEED GAS
RECEPTION
&
COMPRESSION
(IF ANY)
CO2
REMOVAL
DEHYDRATION LIQUEFACTION
LNG
STORAGE
LNG TRUCK
LOADING
STATION
AMINE
REGENERATION
R
I
C
H

S
O
L
V
E
N
T
L
E
A
N
S
O
L
V
E
N
T
FUEL GAS
NATURAL GAS
FROM PIPELINE
or STRANDED
FIELD
HOT OIL
SYSTEM
FLARE
SYSTEMS
UTILITY
O
S
B
L
BOIL OFF GAS
MERCURY
REMOVAL
42
N2 Cycle Liquefaction Process
Simple N2 Expander LNG Process
Three Stages N2 Expander LNG Process
Ni1
Ni2
Ni3
43
SMR - Single Mixed Refrigerant Liquefaction
Process
MCHE
Sub-Cooling
Liquefaction
Pre-cooling
Nat.
Gas
LNG
M
MR1
MR2
MR3
44
C3MR Propane Precooled Mixed Refrigerant
Liquefaction Process
Nat.
Gas
LNG
MCHE
Propane (C
3
)
MR2
MR1
M
M
Sub-Cooling
Condensation
Pre-cooling
Technip An Innovator in LNG
An LNG EPC contractor for over 45 Years
Worlds first LNG plant: CAMEL in Algeria
Delivered 30% of world LNG production
capacity in the last 12 years
Leading in floating liquefaction (FLNG)
Technologically strong: introduced many
concepts to the industry that are widely used
today
Camel, Algeria 1964
Yemen LNG, 2010
45
Qatar LNG Projects worlds largest LNG
export terminal
6 x 7.8 Mt/y Trains built simultaneously 2004 - 2011
QatarGas II Trains 4 and 5
QatarGas 3 & 4 Trains 6 and 7
RasGas III Trains 6 and 7 (behind the camera)
46
Ningxia Hanas An example of our small scale
LNG projects in China
0 meters
50
500
1,500
2,500
4,000
6,000
9,000
0 500 km
Yinchuan
Beijing
Shanghai
Yinchuan, Ningxia LNG
NG
LNG
Air Products
MCHE
47
Contract : EP(LLI) & CM
Award : Q2/2009
Delivery : 2nd half 2011
2 trains x 0.4 mtpa
Air Products SMR liquefaction
process
CWHE
1 x 50,000 m
3
FC tank
Utilities, offsites and general
facilities including truck loading
Conclusions
The Uzbekistan Natural gas resources can play a significant role
in both economy growth and industrial development becoming
the key energy source for the Country
Mature and reliable technologies are available to monetize
Natural gas to produce Polymers, Synthetic fuels (GTL products),
Liquefied Natural gas
The most convenient Option to monetise the Uzbekistan gas
resource depends on many factors such as Local market demand
for transportation fuels and Petrochemical products, Cost of
Natural gas and Products price, Logistics etc
Technip has a significant experience and know-how gained in
decades of activities through the whole Gas chain, from
Feasibility Studies up to project execution and can support any
initiative in the Gas sector in Uzbekistan
48
Thank you
Roberto DI CINTIO Technology manager, Gas Processing
17th Uzbekistan International Oil & Gas Exhibition
14 - 16 May 2013 - UzExpocentre Tashkent, Uzbekistan
www.technip.com