A Journey through the Forest: Navigating around the Complexities of a Methanol Project

Transcription

1 A Journey through the Forest: Navigating around the Complexities of a Methanol Project Budapest, 1 st of October 2016 l Dr. Matthias Stein l Air Liquide Global E&C Solutions 1 13/12/2015 Air Liquide, world leader in gases, technologies and services for Industry and Health

2 Forest Picture 2 Air Liquide, world leader in gases, technologies and services for Industry and Health

3 Air Liquide s Lurgi Methanol Technology Leadership Integrated syngas (SMR) and Methanol reactor system (low pressure) for 250 to 2,000 tpd from References* Lurgi Technology introduced combined reforming (SMR and ATR) for plant capacities of > 2,000 tpd in References* Lurgi Technology set the standard 5,000 tpd size (Combined reforming - SMR and ATR - and Advanced High Pressure Methanol Reactor System) in References* Single train 10,000 tpd plant engineering available since 2012; Pure Autothermal Reforming with Advanced High Pressure Methanol Reactor * Operating references 3 Air Liquide, world leader in gases, technologies and services for Industry and Health

4 Competitors at 5,000 MTPD with Natural Gas, operating Lurgi 4 Reference, Zagros 1, Zagros 2, PML, Atlas Natural Gas Syngas Generation SMR ATR Methanol Synthesis/Distillation Methanol Topsoe 0,5 Reference, Mitsubishi Methanol Technology ArRazi V, Saudi Arabia Natural Gas Syngas Generation SMR ATR Methanol Synthesis/Distillation Methanol Davy 1 Reference, but with CO 2, as such pure SMR M5000, Trinidad Natural Gas CO2 Syngas Generation SMR Methanol Synthesis/Distillation Methanol 4 Air Liquide, world leader in gases, technologies and services for Industry and Health

5 Lurgi Mega Methanol- Recent Reference Situation Zagros 1, Iran 1.65 mil tpa NG based Zagros 2, Iran 1.65 mil tpa NG based Zeogas, TX, USA 1.65 mil tpa EP Package YCI, LA, USA 1.65 mil tpa EP Package Atlas MeOH, Trinidad 1.65 mil tpa NG based Methanex, Chile 800 ktpa NG based Petronas, Malaysia 1.65 mil tpa NG based OCI Natgasoline TX, USA 1.65 mil tpa EP Package BASF, TX, USA 1.65 mil tpa Integration into Propylene Additional 5 MegaMethanol plants in China (coal based ) 5 Air Liquide, world leader in gases, technologies and services for Industry and Health

6 Air Liquide offer for Methanol Projects: A Holistic View Potential for providing Oxygen over the fence Contract Driven Approach On-board Project Management Expertise Minimize schedule ECA covered Financing Air Liquide offer: Support and Management of the entire project execution Access to reference as-built documentation Reduce Pre-FID Expenditures 6 Air Liquide, world leader in gases, technologies and services for Industry and Health

7 Project Execution Schedule 1. Classical project execution Basic Engineering (AL) Detailed Engineering (EPC) FEED (PMC) Construction (EPC) 2. AL Contract driven approach Basic + Detailed Engineering (AL+EPC) Construction (EPC) 3. AL Contract driven approach with reduced pre-fid expenditure and financing Execution Time LS EP Price Estimate (AL) AL Financing Final Investment Decision (FID) Basic + Detailed Engineering (AL+EPC) Construction (EPC) 7 Air Liquide, world leader in gases, technologies and services for Industry and Health Plant Commissioning

8 Atlas Methanol Co. Point Lisas, Trinidad & Tobago Classical project execution 5,000 tpd MeOH plant, upfront cost covered through project developer, bank financed, First ever built 5,000 tpd MeOH plant, Classical EPC project with AL (Lurgi) as EPC contractor, Lump Sum turn key fixed price through pre-feed. Basic Engineering (AL) Pre-FEED (AL) Detailed Engineering (AL) Construction (AL+Voest Alpine) Specifics: General contractor Voest Alpine Final Investment Decision (FID) Cheapest plant (5,000 tpd) ever: 480 mil $ (290 $ cost per installed t of MeOH), Oxygen supply over-the-fence. Benefit for Customer: Shorter execution schedule, Technology and execution from one single company, EPCM enables Customer to take construction risk and reduce contingencies 8 Air Liquide, world leader in gases, technologies and services for Industry and Health

9 Zagros 1 and 2- Assaluyeh, Iran Classical project execution 2 times 5,000 tpd MeOH plants, Design basis available from NPC (National Petrochemical Company), lump sum EP bidding, Upfront cost covered through owner NPC, Classical EPC project with AL and PIDEC in a consortium, Final Investment Decision (FID) Basic Engineering (AL) AL Financing Detailed Engineering- off-shore (AL) Detailed Engineering- on-shore (PIDEC) Specifics: Zagros 2 was ordered once Zagros 1 was 75% complete, Zagros 2 as copy. Benefit for Customer: Entire project out of one entity (consortium AL and PIDEC), Consortium reduced reduced risk and contingencies, 100% financing arranged by AL and German Hermes export credit guarantee. 9 Air Liquide, world leader in gases, technologies and services for Industry and Health

10 Petronas Methanol Ltd. (PML)- Labuan, Malaysia AL Contract driven approach 5,000 tpd MeOH plant, financed through Petronas Balance Sheet, Target price for plant cost negotiated between Customer and AL Lump sum EP price and target construction price, Cost sharing for exceeding expenses Basic + Detailed Engineering (AL) FEED Construction (AL as EPCM) Final Investment Decision (FID) Specifics: NG from only one off-shore gas field, operated under upstream (oil) philosophy, Once through seawater cooling (cheapest cooling system). Benefit for Customer: Shorter execution schedule, Technology and execution from one single company, EPCM enables customer to take construction risk and reduce contingencies. 10 Air Liquide, world leader in gases, technologies and services for Industry and Health

11 OCI Natgasoline- Beaumont, Texas, USA Plant is under construction, start up expected in mid 2017 Classical Lump Sum EP approach through AL Basic Engineering (AL) Detailed Engineering (AL) FEED Bulks Engineering, Construction (OCI) Final Investment Decision (FID) Specifics: AL with extended list of equipment, Construction undergoing by OCI as a construction company, Project started at peak construction cost at US Gulf Coast, Oxygen to be supplied through AL Large Industries (OTF). Benefit for Customer: Smooth project execution through close cooperation between AL and OCI, Estimate for the plant cost based on AL Basic Engineering. 11 Air Liquide, world leader in gases, technologies and services for Industry and Health

12 Yuhuang Chemical Industry (YCI), Lake Charles, LA, USA Plant has finalized Basic Engineering, waiting for Final Investment Decision 1.) Competition driven, Chinese approach, Basic Engineering (AL) Majority of Equipment, Construction (HQCC) Limited Equipment scope (AL) 2.) YCI re-negotiated AL contract and replaced HQCC Basic Engineering (AL) Final Investment Decision (FID) Detailed Engineering (AL) Construction (AmecFW) Extended Equipment scope (AL) Specifics: A Chinese contractor and equipment manufacturer is not competitive in USA, YCI saw the value and benefit of AL to perform full EP, Oxygen to be supplied through AL Large Industries (OTF). 12 Air Liquide, world leader in gases, technologies and services for Industry and Health

13 Photo Wald 13 Air Liquide, world leader in gases, technologies and services for Industry and Health

14 Existing Methanol Plants in Iran Total Existing MeOH Capacity 5.4 mil tpa Fanavaran, Topsoe Plant 1 mil tpa Kharg, Lurgi Plant 660 ktpa Shiraz, Lurgi Plant 82 ktpa Assaluyeh Lurgi Plant 2 x 1.65 mil tpa 14 Air Liquide, world leader in gases, technologies and services for Industry and Health

15 Plants under Engineering/ Construction Veniran 1.65 mil tpa Marjan 1.65 mil tpa Kimiya Pars 1.65 mil tpa Dayyer Kaveh 2 mil tpa Siraf 1.65 mil tpa Sabalan 1.65 mil tpa Dena 1.65 mil tpa Assaluyeh 2 Arman 1.65 mil tpa Busher MeOH 1.65 mil tpa Chabahar Free Zone 15 Air Liquide, world leader in gases, technologies and services for Industry and Health

16 Executing a Project in Iran Biggest problem is financing, At this time Iranian banks are not financing projects, Chinese financing comes at a high price, ECA covered financing possible, availability of equity is questionable, important is payment security for contractors (projects run out of money, new embargo ), Lack of understanding/ appreciating cost of project development, No basis of design, no FEED, no solid project management; all resulting in long execution times and dying projects, Different views on Lump Sum price contracts, EPC bidders have no solid information available (e.g. Basic Engineering or FEED), Limited execution capabilities, De-centralization of project development (privatization) and embargo resulted in reducing the knowledge of how to execute projects. 16 Air Liquide, world leader in gases, technologies and services for Industry and Health

17 Conclusion Providing a holistic project support and management offers significant benefits for customers (schedule reduction, smooth execution, cost reduction), Flexibility in adopting customer requirements is key for success (pre- FID cost reduction, plant financing, OTF offering), Such full service is only possible through a wealth of technology and EPC experience over many years. 17 Air Liquide, world leader in gases, technologies and services for Industry and Health