Table Of Content

Prepared by Wisam Al-Shalchi Petroleum Expert Baghdad – 2006 Contents 3 Introduction Chapter One The Development of the GTL Technology 6 Introduction 1 - 9 Definition of the GTL Process 2 - 10 The Synthesis Gas 3 - 12 Methods of Producing Synthesis Gas 4 - 19 Fischer–Tropsch Method to Produce Synthetic Fuels 5 - 22 Mechanism of Fischer-Tropsch Reaction 6 - 25 Kinds of Fischer-Tropsch Operations 7 - 26 Upgrading Fischer–Tropsch Products 8 - 27 Specifications of the GTL Products 9 - Chapter Two Kinds of GTL Technologies 32 Introduction 1 - 33 Sasol's GTL Technology 2 - 40 Shell's GTL Technology 3 - 43 ExxonMobile's GTL Technology 4 - 44 Syntroleum's GTL Technology 5 - 47 Other GTL Technology 6 - 53 GTL Plants 7 - Chapter Three Gas to Liquids (GTL) Economics 57 Introduction 1 - 58 Process Challenges and Drivers of a GTL Plant 2 - 62 Factors Affecting the GTL Economics 3 - 69 The Future of the GTL Industry from the Economic Outlook 4 - 1 Chapter Four Potential Impacts of the GTL Industry 72 Introduction 1 - 73 The GTL Industry and the Environment 2 - 78 The Impacts of GTL Industry on Refiners 3 - 85 The Impacts of the GTL Industry on the LNG Production Industry 4 - 88 The Impacts of the GTL Industry on the Utilization of the Clean Fuels 5 - 91 The Future of the GTL Industry from the Industrial Outlook 6 - Chapter Five The Gas to Liquids (GTL) Projects 95 Introduction 1 - 97 The GTL Projects Around the World 2 - 99 The GTL Projects in the Arab Countries 3 - Chapter Six The Possibility of Using The GTL Technology in Iraq 107 The Iraqi Natural Gas Reserves and Production 1 - 109 The Iraqi Natural Gas Fields 2 - 110 Natural Gas Processing in Iraq 3 - 111 Development of the Iraqi Natural Gas Fields 4 - 118 The Possibility of Building a GTL Project in Iraq 5 - Chapter Seven Conclusions and Recommendations 122 Conclusions Concerning The GTL Technologies 1 - 1 Conclusions Concerning the Economy of the GTL Technology 22 2 - 1 Conclusions Concerning the Effects of the GTL Technology on Oil Refining Industry 24 3 - 125 Conclusions Concerning The Utilization of the GTL Technology in Iraq 4 - 126 General Conclusions 5 - 127 Recommendations 6 - 129 References 2 Introduction It is a truism to observe that the world's hydrocarbon resources like oil and natural gas are not evenly distributed, and in particular that a substantial proportion of known reserves are situated in locations remote from areas of high consumption. Transportation of liquid hydrocarbons from source to consumer is a task for which a large and flexible infrastructure exists. However, where natural gas deposits in remote locations are to be exploited, the transportation task becomes a major challenge - particularly if geography, economics or a combination of both precludes the possibility of a pipeline. Countries in the Middle East, for example, have huge reserves of natural gas but little local market for it and no pipeline infrastructure to ship it to larger economies. This challenge can be met by conversion of natural gas into a transportable and saleable form or product. Historically this has implied LNG, ammonia or methanol as the medium of bringing remote natural gas to the market place. Each of these has its limitations - the heavy investment and, relatively speaking, small number of receiving terminals limits the marketing flexibility for LNG. Neither the ammonia nor the methanol market is large enough to accept the potential volumes available from exploitable natural gas reserves. Current prices for both products would indicate that we are close to these marketing limits - unless of course legislation drives motor fuels in the direction of methanol. An alternative which is gaining increasing attention is the conversion of natural gas to liquids - ranging from gasoline to middle distillates (GTL fuels) by the GTL Technology. This approach avoids the infrastructural limitations of LNG and at the same time provides a market large enough to accept the potential volumes. Basic GTL technology was invented in 1923, when two German scientists, Franz Fischer and Hans Tropsch, discovered the catalytic conversion of carbon monoxide and hydrogen (synthesis gas) into synthetic hydrocarbons. The GTL process involves feeding pipeline- quality natural gas (methane) into a reformer or generator where it is converted into synthesis gas (a combination of carbon monoxide and hydrogen). This technology is similar to processes used for years to make methanol and ammonia. Then the synthesis gas is processed through a Fischer-Tropsch reactor where it is converted into GTL fuels (synthetic crude). Fischer-Tropsch chemical reaction process is therefore the core of this technology. 3 In general, GTL fuels are fuels that can be produced from natural gas using a Fischer-Tropsch process. It can also be produced by the same process from coal, biomass, or any carbon-containing material. The liquids produced include naphtha, kerosene, diesel, and chemical feedstocks. GTL fuel has virtually no sulfur, aromatics, or toxics. The resulting GTL diesel for example can be used neat in existing diesel engines and infrastructure, or blended with today’s non-complying diesel fuel to make the fuel cleaner so it will comply with new diesel fuel standards. These fuels provide an opportunity to reduce dependence on petroleum-based fuels and reduce tailpipe emissions. For over 70 years, interest in commercial gas to liquids (GTL) technology was limited to countries with political rather than economic drivers. Technical advances in GTL development has surged substantially in the last decade, and it have allowed GTL technology to be competitive at current oil and natural gas prices. Since the late 1990s, major oil companies with commercial GTL histories such as Sasol, Shell, ExxonMobil, ConocoPhillips, have announced plans to build GTL plants to produce GTL fuels. As a result, a significant number of commercial- scale GTL facilities will probably begin operation by 2010. After 2010, GTL expansion could begin to surge, and GTL would become a growing market for “stranded” gas. Certain governments such as those of Qatar, Iran and Egypt have taken leading positions in implementing GTL as a component of long-term strategy. This research concerns about the progress of the GTL technology, starting from its first origin in the twenties of the previous century, and ending with today's giant GTL projects which are being built in some countries like Qatar, Iran, and Nigeria. It also analyses the economic value of this technology according to the current oil and natural gas prices. The impacts of this technology on other petroleum industries like the oil refining, LNG production industry, and the utilization of other clean fuels, are also considered. Finally, the possibility of using the GTL technology in Iraq is also discussed in details throughout this research. The Author* Wisam Al-Shalchi – Petroleum Expert, Email: