Methanol from Natural Gas

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Methanol from Natural Gas

• Conceptual Plant Design

Brian Lusby Tom Obbink, Design
Engineers December 6, 2006
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Project Overview

• Design and perform an economic analysis for a
  methanol production plant in Point Lisas,
  Trinidad Tobago
• Capacity 5,000 tonnes CH3OH per day
• CH3OH purity 99.75 wt minimum
• Project life 15 years
• Start up date January 1, 2010
• On-stream factor 0.9589 (350 days per year)

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Process Flow Diagram
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Process Flow Diagram 100 Section
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Process Flow Diagram 200 Section
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Process Flow Diagram 300 Section
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Utility Summary

• 15 Heat Exchangers 4 Reactors
• Saturated medium pressure steam services 2 heat
  exchangers (107 GJ/h)
• Cooling water services 8 heat exchangers and 2
  reactors (1461 GJ/h)
• Heat integration meets additional requirements
• Total Cost of Utilities 7.1 M/yr
• 2 Cooling Water Towers Required
• Total Cooling Water Tower Capital Investment
  2.28 M/yr

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Technical Findings

• Bypassing natural gas around SMR
• Using a combustion furnace

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Technical Findings

• Integrating heat from O2-blower effluent
• Condensing water before light-gas separation

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Technical Recommendations

• Investigate feasibility of recovering T-302
  distillate (97 methanol)
• Further integrate heat exchange to provide duty
  for column reboilers
• Discover possible uses for wasted heat from
  methanol reactors
• Research local emissions standards

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Cost of Manufacturing Summary
COMD 200 M
Manufacturing Cost 189 M
General Expenses 10.5 M

• Raw Materials Cost
• Natural Gas 79.3 M/yr
• Oxygen 44.3 M/yr
• Steam Startup Only
• Product Value 524 M/yr

Direct Manufacturing Cost 155 M
Fixed Manufacturing Cost 34 M
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Before-Tax Cash Flow Analysis
NPV 1716 M DCFROR 154
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Sensitivity Analysis
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Investment Conclusions

• Our design is very efficient with low capital
  investment and utility requirements
• Detailed economic analysis shows a high rate of
  return with a low sensitivity to market
  instability
• Low-risk venture worthy of budget authorization