Kirill LIATS General Director Metaprocess A new way to develop mineral deposits GTLittle (mini-plants for producing synthetic oil or methanol from associated gas) Kirill LIATS General Director Metaprocess

Utilization of associated gas is an ecological and commercial necessity

Up to 25 billion m3 of associated gas is flared annually. This amount increases annually by 1-3 billion m3

CO2 and other harmful substances are emitted when gas is flared The environment is heated globally and locally. The permafrost areas are especially endangered

Losses: $500 million to $5 billion per year

There is a solution! GTL – gas-to-liquid

Absence of spare capacity in pipelines Why GAS-TO-LIQUID? Absence of spare capacity in pipelines Monopolistic disbursing prices when shipping through main pipelines Remoteness from end consumers of natural gas High cost of building new gas pipelines Substantially lower costs when shipping a liquid product

Synthetic oil as a commercial product Logistics Synthetic oil – a string of hydrocarbons С5-С17 in liquid state at normal temperature Sulfur, asphaltens, aromatics are absent Output can be shifted toward paraffins or alpha-olefins Consumers: oil refineries, petrochemical plants Synthetic oil can be processed at minimum cost into motor fuels (gasoline, diesel fuel). The cetane number of the diesel fuel is 70.

Synthetic oil as a commercial product Logistics Used for own needs in gas production Used as a product for subsequent processing into formaldehydes, carbamide-formaldehyde tars, olefins. Other consumers: chemical plants, fertilizer plants, pulp and paper combines, woodworking and furniture factories

Minimization of expenditures Reduction of ecological payments Advantages of designing mini-plants at the stage of developing oilfields Minimization of expenditures Reduction of ecological payments Obtaining a commercial product from waste material Capitalization of gas, facilitation of transporting it Possibility of optimizing the infrastructure of the mini-plant to fit the entire development program

Aspects of designing and building mini-plants using the technology of Metaprocess Inc.

Economic indicators for a methanol plant Capacity, tons per year 12 500 20 000 30 000 Capital costs, $ million 10 15 18 Duration of construction, months 20 30 Cost of methanol per ton (including amortization), $ 186 176 170 Number of operating personnel per shift 7 9

Economic indicators for GTL plant Capacity, tons per year 15 000 50 000 100 000 Capital costs, $ million 14,8 25 48 Duration of construction, months 18 28 32 Cost of GTL per ton (including amortization), $ 180-200 160-180 145-160 Number of operating personnel per shift 7 12 30

Economic indicators per ton of methanol Consumption of main material resources per ton of methanol Natural gas 1200 m3 Catalyst for hydrogenation of sulfur compounds 0,18 kg Absorbent of sulfur compounds 0,48 kg Catalyst for conversion of natural gas 0,023 kg Catalyst for synthesis of methanol 0,6 kg Electric power 420 Kwt Water, chemically purified 906 kg

Economic indicators per ton of GTL Consumption of main material resources per ton of methanol Natural gas 2044 m3 Catalyst for hydrogenation of sulfur compounds 0,18 kg Absorbent of sulfur compounds 0,48 kg Catalyst for conversion of natural gas 0,025 kg Catalyst for synthesis of GTL 0,002 kg Electric power --- Water, chemically purified 2400 kg

General Principles of GTL Production SULFUR REMOVAL HYDRO-CRACKING SULFUR REMOVAL FISCHER-TROPSCH SYNTHESIS GAS STEAM REFORMING (PRODUCTION OF SYNTHESIS-GAS)

GTL Steam tube conversion

Quench reactor (cold bypasses) methanol synthesis reactor

GTL Steam tube conversion

Fisher-Tropsch tube reactor

Assembling of Mini-Methanol unit Exhausteur

Assembling of mini-methanol unit Air-coolers

Assembling of mini-methanol unit

Assembling of mini-methanol unit

Assembling of mini-methanol unit

Non-sponsor financing of GTLittle construction Non-sponsor financing of GTLittle construction. The Strategic Reserves project Solving the problem of associated gas utilization by selling it at the site where it is fed to the processing company’s flare Solving the problem of monetizing non-transportable gas by selling it at the well of the processing company Providing the processing company with a site for building a GTL plant or unit The company "Strategic Reserves" is a partner and customer of Metaprocess Corp. which attracts investment for building plants and units for producing synthetic oil and methanol from natural and associated gas

GTL Unit Pilot Fisher-Tropsch reactor Pilot unit of gas-to-liquid processing has been assembling It will be launched until 15-th of March in Novocherkassk

Permanent battle with flaring gas Gas purification unit in Chechnya Dry gas sulfur purification unit Domestic consumption of clean oilwell gas Reduction of flaring 250 mln cubic metres of oilwell gas annually