Handbook of Petroleum Refining Processes, Third Edition

Peter R. Pujad and James M. Andersen
UOP LLC
Des Plaines, Illinois
The conversion of natural gas into syngas is the first step in utilizing natural gas for methanol and for the conversion of gas-to-liquids hydrocarbon products. Methanol as a base chemical offers limited opportunities for natural gas utilization unless linked to other derivative markets. Gas-to-liquids (GTL) technology using Fischer-Tropsch type of catalysts offers large market opportunities for natural gas utilization but is challenged by the economics of high capital costs with relatively low transportation fuel product values.
Syngas and methanol production technologies are achieving greater economies of scale. World-scale methanol production facilities have doubled in size compared to just a few years ago, and when combined with remote natural gas prices, these facilities offer substantially lower costs of production than those in existing plants. However, although methanol can be economically shipped from remote gas areas, the expected growth in demand for methanol for conventional uses does not support the addition of many new plants.
The conversion of methanol to fuel components was accomplished commercially in the Mobil MTG (methanol-to-gasoline) process1 4 at a plant located near New Plymouth in New Zealand, but that plant has since been shut down on account of the relatively poor economics of gasoline production. However, Mobil did demonstrate that over a ZSM-5 (MFI) type...