ABSTRACT
The paper reviews the current and emerging technology for the conversion of natural gas into methanol and assesses its impact on the production economics. Technologies of potential use for offshore developments of large gas reserves or associated gas are discussed. New technologies for the production of methanol synthesis - gas, such as autothermal reforming and GHR technology, are described and the economic advantages over conventional steam reforming are quantified. New methanol synthesis technology, such as slurry phase reactors, are outlined but appear to offer little advantage over conventional technology for offshore gas utilization.
The purification of methanol for fuel and chemical grade product is outlined and the cost of transport presented.
The data presented gives an overview of the production costs for production of methanol from large gas reserves (> ITcf, 25 - 35PJ/a) and smaller scale reserves (10 - 20MMscfd, 4-10PJ/a). The variation of the production cost of methanol with gas price indicates that the gas price is the principal economic consideration. However, adoption of new technology will improve production economics by an amount equivalent to an incremental gas cost of about $0.5/GJ. For gas reserves of low development cost, the adoption of new technology is not a prerequisite to economic viability.
