Author Topic: New methanol plants expected to increase industrial natural gas use through 2020  (Read 1803 times)

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Offline thackney

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New methanol plants expected to increase industrial natural gas use through 2020
https://www.eia.gov/todayinenergy/detail.php?id=38412
FEBRUARY 21, 2019



New methanol plants under development in the United States are increasing natural gas consumption in the industrial sector. Methanol plants are among the most natural gas-intensive industrial end users and require natural gas both as a feedstock and for process heat. Three new plants expected to come online in 2019 and 2020 have a combined nameplate capacity of about 3.3 million metric tons per year (MMmt/y) and would increase total U.S. methanol capacity to 9.4 MMmt/y, or 25,600 metric tons per day (mt/d)—a 45% increase from the current U.S. capacity.

Methanol has several energy-related applications. Pure methanol can be used directly as an alternative transportation fuel (China, in particular, uses methanol this way) or blended into motor gasoline abroad to increase combustion efficiency and reduce air pollution. EIA forecasts that new methanol projects will help drive growth in industrial natural gas demand through 2020. Total U.S. industrial natural gas consumption is expected to average 23.1 billion cubic feet per day (Bcf/d) in 2019 and 23.4 Bcf/d in 2020, up from 22.6 Bcf/d in 2018.



Most methanol plants are located in the Gulf Coast region. Existing pipeline infrastructure in the region will allow increasing natural gas production from the Permian Basin in western Texas and eastern New Mexico to reach methanol production facilities along the Gulf Coast. Proximity to the Gulf Coast allows many of these plants to export methanol to China, a major consumer of methanol.

Relatively low natural gas prices in recent years have provided incentives to develop new methanol facilities. Natural gas prices in the Permian region have been especially low relative to the Henry Hub national benchmark. In 2018, the discount to the Henry Hub averaged 37%, with Permian prices averaging $1.98 per million British thermal unit (MMBtu), compared with Henry Hub prices of $3.15/MMBtu. Permian region natural gas production—especially associated gas produced from oil directed rigs—has increased, helping reduce feedstock and process heat costs for these facilities.

One new methanol plant, the 5,000 mt/d Natgasoline methanol plant in Beaumont, Texas, began operating in June 2018. According to the operating companies (OCI N.V., Consolidated Energy Limited and Natgasoline LLC), the plant has consistently been running above its nameplate capacity. The new plant is the largest methanol production facility in the country, consuming an estimated 0.15 Bcf/d of natural gas.

During 2019 and 2020, two new methanol plants on the Gulf Coast are expected to begin operating. Big Lake 1, owned by GX2 Energy and Methanol Holdings, Trinidad, is expected to enter service during the third quarter of 2019 in Louisiana. The Big Lake facility will convert dry natural gas into about 3,800 mt/d of methanol, which may then be converted to motor gasoline.

In addition, the Yuhuang’s St. James 1 methanol plant, with a capacity of 4,700 mt/d, is expected to start operating in mid-2020 and would be the second-largest methanol facility in the United States. Phase two, which is currently under consideration, could double its capacity, which would make it the largest methanol production facility in the United States.

In addition to these Gulf Coast methanol plants, Liberty One in West Virginia is expected to produce about 550 mt/d of methanol when it comes online in 2019. Liberty One is a much smaller methanol-producing facility that is relocating from Rio De Janeiro, Brazil. Liberty One’s proximity to the Appalachia Basin ensures natural gas feedstock at a relatively low cost to the plant.
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Offline thackney

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https://www.fuelfreedom.org/hot-rod-explains-race-car-drivers-love-methanol/

...Methanol has less energy content than regular gasoline, so vehicles get about half the mpg out of the fuel. But it has a higher octane.

As the smart people at Hot Rod magazine explain, race-car engines are built to squeeze more power out of that less-energy-dense methanol, by adjusting the air-to-fuel ratio.

While it’s true that gasoline has a higher energy density (about 18,400 BTU/pound) than methanol (9,500 BTU/pound), if you can burn three times more methanol than gasoline per power stroke, you can make more power. An engine that flows 1,000 cfm of air (about 70 pounds worth) means that on gasoline, the engine will consume about 5.6 pounds of fuel based upon its 12.5:1 max power ratio, giving a total energy output of (5.6 pounds x 18,400 BTU) or 103,040 BTUs of energy. If we do the same calculation on methanol, we get 17.5 pounds of fuel burned, and (17.5 pounds x 9,500 BTU) or 166,250 BTUs of energy—that’s a 60 percent greater energy output....
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Offline thackney

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Methanol proves low-cost, sustainable option for gasoline blending
https://www.ogj.com/articles/print/volume-113/issue-3/processing/methanol-proves-low-cost-sustainable-option-for-gasoline-blending.html
03/02/2015

...In the past, especially when carbureted engines represented the majority of motor vehicle fleets, oxygenated hydrocarbons such as methyl tertiary butyl ether (MTBE) were added to gasoline to boost octane ratings as well as to suppress tail-pipe emissions, including carbon dioxide, nitrogen oxide, and miscellaneous light hydrocarbon ozone-smog inducers.5

While the use of MTBE initially was banned or restricted by several US states, these restrictions combined with the reformulated gasoline (RFG) mandate to create market forces that led to the complete elimination of MTBE for gasoline blending in the US.6

MTBE, however, remains widely used as a fuel additive in the rest of the world, including Europe and Israel.

The issue of boosting octane simply became a matter of economics, in which refiners evaluated high-octane blending components vs. alternative methods of raising octane levels, such as catalytic reforming of heavy naphtha, isomerization of light naphtha, and alkylation of butylene (C4) olefins with isobutylene (iso-C4) to produce iso-octane....

...Results of DOR's pilot tests on methanol-gasoline blends in Israel suggest methanol can provide at least a partial alternative to the exclusive use of conventional or reformulated gasoline, particularly for regions with abundant but seemingly stranded supplies of natural gas, such as the US.

While the economics of any necessary modifications required to accommodate the use of single-molecule, oxygenated fuel as an alternative to conventional gasoline will, of course, have to be evaluated case-by-case, the ability to satisfy regional energy demand with readily available, domestic natural resources provides strong economic incentives of its own.

Based on the methanol-gasoline pricing ratio as of early January 2015, at least in the US, replacing conventional gasoline with methanol is an economically marginal proposition. Based upon historical methanol-gasoline price ratios, however, a reduction of about 20% in unit energy costs could be achieved depending on the relative and fluctuating cost ratio of crude oil, as well as other global market factors, which include the business cycle of methanol's chemical derivatives.

Additionally, new technologies leading to a more economical recovery of shale gas currently employed in North America and emerging in China, Europe, and the rest of the world, would suggest shifting market forces that could further reduce the caloric cost ratio of methanol-gasoline blending.

To date, China is moving forward in securing its current energy demand by converting its domestic coal supplies into methanol, while several locations in North America are considering plans to convert petroleum coke into methanol....
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Offline Cyber Liberty

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It's nice to see acknowledgement that refining methanol takes boatloads of "Fossil Fuels."
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Offline IsailedawayfromFR

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Cheap fuel has lots of utility.

Just ask Saudis who have benefited for decades
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Online Bigun

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It's nice to see acknowledgement that refining methanol takes boatloads of "Fossil Fuels."

Methanol is not refined.  It is synthicized.  But your basic point stands.
"I wish it need not have happened in my time," said Frodo.

"So do I," said Gandalf, "and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us."
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Offline Cyber Liberty

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Methanol is not refined.  It is synthicized.  But your basic point stands.

You are, of course, correct.  Miswording on my part.  I guess it shows that I'm not an oilman? :tongue2:
For unvaccinated, we are looking at a winter of severe illness and death — if you’re unvaccinated — for themselves, their families, and the hospitals they’ll soon overwhelm. Sloe Joe Biteme 12/16
I will NOT comply.
 
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Online Bigun

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You are, of course, correct.  Miswording on my part.  I guess it shows that I'm not an oilman? :tongue2:
Right!  22222frying pan  888high58888
« Last Edit: February 21, 2019, 08:23:39 pm by Bigun »
"I wish it need not have happened in my time," said Frodo.

"So do I," said Gandalf, "and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us."
- J. R. R. Tolkien

Offline thackney

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It's nice to see acknowledgement that refining methanol takes boatloads of "Fossil Fuels."

I keep wondering about your comment.  Are you thinking of Ethanol, the stuff often made from corn and in our gasoline, instead of Methanol?
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Offline Cyber Liberty

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I keep wondering about your comment.  Are you thinking of Ethanol, the stuff often made from corn and in our gasoline, instead of Methanol?

I was thinking of Ethanol.  I'm all discombobulated.  Methanol is in MTBE, right?

ETA:  We used to use MTBE, but I recall many years ago it was outlawed here.  I forget why. :shrug:
« Last Edit: February 22, 2019, 02:10:40 am by Cyber Liberty »
For unvaccinated, we are looking at a winter of severe illness and death — if you’re unvaccinated — for themselves, their families, and the hospitals they’ll soon overwhelm. Sloe Joe Biteme 12/16
I will NOT comply.
 
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Offline Wingnut

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Offline Elderberry

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I was thinking of Ethanol.  I'm all discombobulated.  Methanol is in MTBE, right?

ETA:  We used to use MTBE, but I recall many years ago it was outlawed here.  I forget why. :shrug:

Quote
MTBE is manufactured via the chemical reaction of methanol and isobutylene. Methanol is derived from natural gas, and isobutylene is derived from butane obtained from crude oil or natural gas, thus MTBE is derived from fossil fuels.

All of those fuel additives are just wrong.

Offline Elderberry

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Offline thackney

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I was thinking of Ethanol.  I'm all discombobulated.  Methanol is in MTBE, right?

ETA:  We used to use MTBE, but I recall many years ago it was outlawed here.  I forget why. :shrug:

MTBE spreads more easily underground than other gasoline components due to its higher solubility in water.  When gas station tanks leaked from older designs, there was quite a bit of soil contamination.

Many but not all states banned it.
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Offline Cyber Liberty

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For unvaccinated, we are looking at a winter of severe illness and death — if you’re unvaccinated — for themselves, their families, and the hospitals they’ll soon overwhelm. Sloe Joe Biteme 12/16
I will NOT comply.
 
Castillo del Cyber Autonomous Zone ~~~~~>                          :dontfeed:

Offline Cyber Liberty

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MTBE spreads more easily underground than other gasoline components due to its higher solubility in water.  When gas station tanks leaked from older designs, there was quite a bit of soil contamination.

Many but not all states banned it.

I think that was it.  There was also an incompatibility with Ethanol products too.
For unvaccinated, we are looking at a winter of severe illness and death — if you’re unvaccinated — for themselves, their families, and the hospitals they’ll soon overwhelm. Sloe Joe Biteme 12/16
I will NOT comply.
 
Castillo del Cyber Autonomous Zone ~~~~~>                          :dontfeed: