1. Eliminating smaller flares James BANISTER Process Technologist Heatric

2. Natural gas field sizes Exploitation technologies LNG and Big GTL 100 10 2 0.4 0.8 0.2 0.05 TCF 15 6000 1000 Big methanol Re-injection or conversion 1000 mmscf/d 150 mmscf/d < 50 mmscf/d

3. Natural gas field sizes Exploitation technologies 100 10 2 0.8 0.4 0.2 0.05 TCF 15 6000 1000 LNG and Big GTL Big methanol Re-injection 1000 mmscf/d 150 mmscf/d < 50 mmscf/d <0.4

4. Natural gas field sizes Exploitation technologies 7% of fields <0.4 TCF Approximately half would be considered stranded – No viable gas market Associated gas requires alternatives to flaring 100 10 2 TCF <0.4

5. The choice Re-injection or conversion? – Conversion brings an additional revenue stream – Recover capital cost of plant Methanol or GTL?

6. Product Value and Pricing Exploitation technologies GTL – Product value linked to energy price – A small price premium may be possible from refiners – Economics of the process driven by cheap energy supply Technology Product value Principle driver GTLEnergy Cheap energy source

7. Product Value and Pricing Exploitation technologies Methanol – Product carries price premium – Smaller unit fit with smaller chemicals market Up to 150mmscf/d – Use of methanol offshore Hydrate suppression – Process enhanced by carbon dioxide in feed gas Technology Product value Principle driver GTLEnergy Cheap energy source MethanolChemical Added value product

8. Size and Weight offshore Methanol vs GTL reactors Reformer is common to both technologies GTL reactor is big – 10m diameter reactor for 100mmscf/d Methanol is smaller – 3m diameter reactor for 100mmscf/d

9. Offshore gas conversion The technical challenges Minimise capital cost Minimise size and weight Designed for the operating environment Methanol has real advantages over GTL – Cheaper, lighter and smaller process – Higher value product

10. Heatric compact methanol process Using diffusion bonded exchanger technology (DBX)

11. Heatric compact methanol process The reformer Process Simulation Proof-of-concept Component Analysis Laboratory Trial Facility Industrial Prototype

12. Heatric compact methanol process The reformer

13. Heatric compact methanol process Methanol synthesis Process Simulation Demonstration and development unit Design of unit for a conventional plant

14. Heatric compact methanol process Product advantages Reformer – Utilises Heatric multiple adiabatic bed concept – Simplifies control – Catalytic combustion Methanol – No recycle compressor – Reduced catalyst volume Advantages – Compact packaged process – No oxygen plant – Cost-effective for 5-50 mmscf/d – k$140-k$200 per tpd capacity – Experience in manufacturing for off-shore

15. Conclusion Methanol production can provide revenue to eliminate flaring Challenge in the offshore environment is size and weight reduction Heatric is developing the technology for the most cost-effective offshore gas conversion

16. www.heatric.com