NGL Extraction Technologies November 2015 Report Contents

NGL Extraction Technologies

Table of Contents
A Report by NexantThinking™
Process Evaluation/Research Planning (PERP) Program
PERP Report 2015S8– Published November 2015
www.nexantthinking.com

Section Page

1 Executive Summary ............................................................................................................... 1

1.1 CURRENT COMMERCIAL TECHNOLOGY ............................................................. 2
1.1.1 Processing Requirements ............................................................................ 2
1.2 NGL EXTRACTION TECHNOLOGIES ..................................................................... 2
1.3 LICENSED TECHNOLOGIES ................................................................................... 4
1.4 EMERGING TECHNOLOGIES ................................................................................. 6
1.5 ECONOMIC ANALYSIS ............................................................................................ 6
1.6 MARKET REVIEW .................................................................................................... 7
1.6.1 United States ................................................................................................ 7
1.6.2 Western Europe ........................................................................................... 8
1.6.3 Asia Pacific ................................................................................................... 8
2 Introduction ............................................................................................................................. 10
2.1 INTRODUCTION ....................................................................................................... 10
2.2 BACKGROUND ......................................................................................................... 13
2.2.1 Natural Gas Production Sources .................................................................. 13
2.2.2 What are NGLs and Why Recover Them? .................................................. 14
2.2.3 NGL Uses ..................................................................................................... 15
2.2.4 Gas Processing Contracts ........................................................................... 17
2.2.5 Natural Gas Specifications ........................................................................... 18
2.3 NGL EXTRACTION ................................................................................................... 20
2.3.1 Phase Envelope ........................................................................................... 20
2.3.2 Block Flow Diagram ..................................................................................... 21
2.3.3 Pre-Treatment .............................................................................................. 22
2.3.4 Degree of NGL Extraction ............................................................................ 24
2.3.5 Technology Options ..................................................................................... 24

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2.4 CONCLUSION .......................................................................................................... 24

3 NGL Process Technologies.................................................................................................... 25
3.1 INTRODUCTION ....................................................................................................... 25
3.2 GAS PROCESSING AND PRE-TREATMENT ......................................................... 26
3.2.1 Water Removal ............................................................................................. 26
3.2.2 Acid Gas Removal........................................................................................ 26
3.2.3 Other Impurity Removal ............................................................................... 27
3.3 NGL EXTRACTION TECHNOLOGIES ..................................................................... 27
3.3.1 Refrigeration Based NGL Extraction ............................................................ 27
3.3.2 Other NGL Extraction Processes ................................................................. 43
3.4 MAIN CONSIDERATIONS IN PROCESS CHOICE AND DESIGN .......................... 50
3.4.1 Impact of Feed Conditions ........................................................................... 50
3.4.2 Impact of NGL Recovery .............................................................................. 54
3.5 MAIN CONSIDERATIONS IN PROCESS CHOICE AND DESIGN .......................... 55
3.5.1 Process Flexibility......................................................................................... 55
3.5.2 Rejection and Reinjection ............................................................................ 55
3.6 PROCESS INTEGRATION AND INTENSIFICATION .............................................. 56
3.6.1 Integration with LNG Facility ........................................................................ 56
3.7 PROCESS RETROFITS ........................................................................................... 58
3.8 FRACTIONATION ..................................................................................................... 61
3.9 THE SHALE GAS CHALLENGE AND THE ROLES OF MODULARIZATION
AND STANDARDIZATION ........................................................................................ 64
3.9.1 Modularization .............................................................................................. 65
3.9.2 Standardization ............................................................................................ 66
3.9.3 Shale Gas Production Profiles ..................................................................... 67
3.9.4 Variable Gas Quality .................................................................................... 67
3.10 CONCLUSION .......................................................................................................... 68
4 NGL Extraction Licensors ....................................................................................................... 70
4.1 INTRODUCTION ....................................................................................................... 70
4.2 CB&I LUMMUS/RANDALL GAS TECHNOLOGIES ................................................. 71
4.2.1 High Ethane Recovery Process (NGL-PROSM) ............................................ 71
4.2.2 Very High Propane Recovery/High Ethane Recovery (HPASM) ................... 73
4.2.3 Very High Ethane and Propane Recovery Processes (NGL-MAXSM,
NGL-FLEXSM, LPG-MAXSM) ......................................................................... 77
4.2.4 Iso Pressure Open Refrigeration Process (IPOR) ....................................... 77
4.2.5 High Propane Recovery (Super HY-PROSM) ............................................... 79

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4.3 IPSI LLC .................................................................................................................... 80

4.3.1 Enhanced NGL Recovery ProcessSM ........................................................... 80
4.3.2 Split Feed Compression Process ................................................................. 80
4.3.3 Improved Propane Recovery (IPR) .............................................................. 83
4.4 ORTLOFF ENGINEERING LTD. .............................................................................. 83
4.4.1 Gas Sub-cooled Process (GSP) .................................................................. 83
4.4.2 Single Column Overhead Recycle (SCORE) ............................................... 85
4.4.3 Other Ortloff Processes ................................................................................ 87
4.5 COSTAIN................................................................................................................... 88
4.5.1 PETROFLUXTM Process .............................................................................. 88
4.5.2 PETROFLUX High Pressure Process .......................................................... 90
4.6 LINDE - CRYO-PLUS™ PROCESS ......................................................................... 93
4.7 ADVANCED EXTRACTION TECHNOLOGIES, INC. – AET PROCESS®................ 93
4.8 SHELL GLOBAL SOLUTIONS .................................................................................. 95
4.8.1 SORDECO®.................................................................................................. 95
4.8.2 Shell Absorber Extraction Scheme (SHAE) ................................................. 95
4.8.3 Shell Deep LPG Recovery Scheme (SHDL) ................................................ 98
4.9 TECHNIP CRYOMAX® .............................................................................................. 98
4.9.1 CRYOMAX® Multiple Reflux Ethane Recovery (MRE) ................................ 98
4.9.2 CRYOMAX® Dual-Column Propane Recovery (DCP) ................................. 101
4.9.3 CRYOMAX® Flexible Dual Reflux Ethane Recovery (FLEX-e) .................... 101
4.10 BLACK & VEATCH .................................................................................................... 104
4.10.1 LPG Plus™ ................................................................................................... 104
4.10.2 PRICO® ........................................................................................................ 104
4.11 FLUOR CORP. .......................................................................................................... 105
4.12 CONCLUSION: SUMMARY OF NGL RECOVERY PROCESSES........................... 105
5 Emerging Technologies .......................................................................................................... 107
5.1 OVERVIEW ............................................................................................................... 107
5.2 ORTLOFF ENGINEERS, LTD. ................................................................................. 107
5.3 TWISTER BV ............................................................................................................. 109
5.4 VORTEX TUBE ......................................................................................................... 115
5.4.1 Universal Vortex Inc. (UVI) ........................................................................... 115
5.4.2 Vortex Tools, LLC ......................................................................................... 116
5.5 IPSI LLC .................................................................................................................... 116
5.6 FLUOR TECHNOLOGIES CORP. ............................................................................ 119

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5.7 AIR PRODUCTS AND CHEMICALS INC. ................................................................ 119

5.8 NGLS AS GTL FEEDSTOCK .................................................................................... 122
6 Economic Analysis ................................................................................................................. 123
6.1 DESIGN BASIS ......................................................................................................... 123
6.1.1 Raw Gas Composition.................................................................................. 123
6.1.2 NGL Extraction Processes ........................................................................... 124
6.1.3 Sales Gas Specification ............................................................................... 124
6.2 COST OF PRODUCTION BASIS ............................................................................. 125
6.2.1 Investment .................................................................................................... 125
6.2.2 Pricing .......................................................................................................... 126
6.2.3 Cost of Production ........................................................................................ 126
6.3 PROCESS ECONOMICS.......................................................................................... 127
6.3.1 NGL Economics ........................................................................................... 127
6.3.2 Shrinkage ..................................................................................................... 130
6.3.3 Sensitivity ..................................................................................................... 131
6.3.4 Regional Cost of Production Estimates ........................................................ 134
7 Commercial Analysis .............................................................................................................. 136
7.1 INTRODUCTION ....................................................................................................... 136
7.2 GENERAL NGL MARKET CHARACTERISTICS...................................................... 136
7.2.1 Ethane .......................................................................................................... 136
7.2.2 LPG .............................................................................................................. 136
7.2.3 Natural Gasoline/Condensate ...................................................................... 137
7.3 UNITED STATES ...................................................................................................... 138
7.3.1 Gas Resources ............................................................................................. 138
7.3.2 Consumption ................................................................................................ 138
7.3.3 Supply .......................................................................................................... 139
7.3.4 Supply, Demand, and Trade ........................................................................ 139
7.4 WESTERN EUROPE ................................................................................................ 140
7.4.1 Gas Resources ............................................................................................. 140
7.4.2 Consumption ................................................................................................ 140
7.4.3 Supply .......................................................................................................... 140
7.4.4 Supply, Demand, and Trade ........................................................................ 141
7.5 ASIA PACIFIC ........................................................................................................... 142
7.5.1 Gas Resources ............................................................................................. 142
7.5.2 Consumption ................................................................................................ 142

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7.5.3 Supply .......................................................................................................... 142

7.5.4 Supply, Demand, and Trade ........................................................................ 142
7.6 CONCLUSION .......................................................................................................... 143
8 Glossary ................................................................................................................................. 144

Appendix Page

A Definitions of Capital Cost Terms Used in Process Economics ............................................. A-1

B Definitions of Operating Cost Terms Used in Process Economics ........................................ B-1
C PERP Program Title Index (2006 - 2015) .............................................................................. C-1

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Figure Page

1.1 Natural Gas Processing Plant ................................................................................................ 1

1.2 United States LPG Supply/Demand Balance ......................................................................... 7
1.3 Western Europe LPG Supply/Demand Balance .................................................................... 8
1.4 Asia Pacific LPG Supply/Demand Balance ............................................................................ 9
2.1 Components of Raw Natural Gas .......................................................................................... 10
2.2 Factors Determining NGL Process Technology Choice ........................................................ 12
2.3 Natural Gas Liquids ................................................................................................................ 14
2.4 Historic U.S. Natural Gas and Natural Gas Plant Liquids Prices versus Brent ...................... 16
2.5 Typical Gas Phase Envelope for a Multi Component Mixture ................................................ 20
2.6 Phase Diagram for a Fixed Composition Well Fluid............................................................... 21
2.7 Gas Processing and NGL Extraction - Block Flow Diagram .................................................. 22
3.1 Simplified Natural Gas Processing Block Flow Diagram ....................................................... 25
3.2 Joule-Thomson Effect Shown on a Phase Diagram .............................................................. 28
3.3 Joule-Thomson Plant without Glycol Injection ...................................................................... 29
3.4 Joule-Thomson Plant with Glycol Injection ........................................................................... 30
3.5 Joule-Thomson Process with Stabilization of NGL Products ................................................ 31
3.6 Inability of Mechanical Refrigeration to Enter Two Phase Region for NGL Extraction from
High Pressure Feed Gas ........................................................................................................ 33
3.7 Mechanical Refrigeration Process ......................................................................................... 34
3.8 Turbo Expander and Joule Thomson Expansion ................................................................... 37
3.9 Turbo Expander Plant Propane Recovery ........................................................................... 38
3.10 Categorizing Expander Based Processes .............................................................................. 40
3.11 Turbo Expander Plant for Ethane Recovery ......................................................................... 41
3.12 Typical Cryogenic Refrigeration Plant .................................................................................... 42
3.13 Lean Oil Absorption Process .................................................................................................. 45
3.14 Solvent Absorption Process ................................................................................................... 46
3.15 Bed Saturation with Single Component Adsorption ............................................................... 47
3.16 Solid Adsorption Process ....................................................................................................... 49
3.17 Effect of Wellhead Pressure Declines and Remedial Measures ............................................ 52
3.18 Effect of Feed Gas Composition on Total Compression Power............................................. 53
3.19 Turbo-Expander Compression Requirement Correlation for 95% Ethane Recovery ............ 54
3.20 Effect of NGL Recovery Levels on Total Compression Power .............................................. 55
3.21 Integrated LNG/NGL Process Flow Diagram ........................................................................ 57
3.22 First and Third Generation Process Retrofit .......................................................................... 60

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3.23 NGL Fractionation Flow Scheme ........................................................................................... 62

3.24 North American Shale Gas Basins ......................................................................................... 64
3.25 Representative Project Timeline by Project Type (Honeywell) .............................................. 66
3.26 Eagle Ford Liquids Sweet Spot: Intersection of GOR and High Pressure ............................. 68
4.1 CB&I - Randall Process for High Ethane Recovery .............................................................. 72
4.2 CB&I - Randall HPA Process - Propane Recovery Mode ..................................................... 74
4.3 CB&I - Randall HPA Process - Ethane Recovery Mode ....................................................... 75
4.4 CB&I - Randall HPA Process - High Ethane Recovery Mode ............................................... 76
4.5 IPOR C2+ Recovery Process ................................................................................................. 78
4.6 IPSI Enhanced NGL Recovery ProcessSM ............................................................................. 81
4.7 IPSI Split Feed Compression Process ................................................................................... 82
4.8 Gas Sub-cooled Process (GSP) ............................................................................................ 84
4.9 Single Column Overhead Recycle (SCORE) ........................................................................ 86
4.10 Costain - PETROFLUX™ Process for NGL Recovery .......................................................... 89
4.11 PETROFLUX High Pressure Process for C3+ Recovery ...................................................... 91
4.12 PETROFLUX High Pressure Process for C2+ Recovery ...................................................... 92
4.13 AET Process® NGL Recovery Unit ......................................................................................... 94
4.14 SHELL - SORDECO® ............................................................................................................. 96
4.15 Shell Absorber Extraction Scheme (SHAE) .......................................................................... 97
4.16 Shell Deep LPG Recovery Scheme (SHDL) ......................................................................... 99
4.17 Technip’s Multiple Reflux Ethane Recovery Process (MRE) ................................................ 100
4.18 Technip’s CRYOMAX Dual-Column Propane Recovery (DCP)............................................. 102
4.19 CRYOMAX Flex-e .................................................................................................................. 103
5.1 Ortloff's Gas Plant .................................................................................................................. 108
5.2 Diagram of Twister Tube with Operating Conditions ............................................................. 109
5.3 Performance of the Twister Tube C3+ Recovery versus Water Content for Lean and
Rich Feeds ............................................................................................................................. 110
5.4 U.S. Patent 8 528 360 Twister Flow Scheme ....................................................................... 112
5.5 Concept of Vortex Tube ......................................................................................................... 115
5.6 Patent Application US 2014/0260421 Flow Scheme ........................................................... 118
5.7 U.S. Patent Application 2013/0186133 Flow Scheme .......................................................... 120
6.1 Historical Natural Gas Pricing ................................................................................................ 132
6.2 Cost of Production Sensitivity of NGL Extraction to Natural Gas Price ................................. 132
6.3 Historical Ethane Pricing ........................................................................................................ 133
6.4 Cost of Production Sensitivity of NGL Extraction to Ethane Pricing ...................................... 133

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6.5 Regional Cost of Production for NGL Recovery via Mechanical Refrigeration ............................................ 134
6.6 Regional Cost of Production for NGL Recovery via Turbo Expansion................................... 135
7.1 Historic and Forecast U.S. Natural Gas Production (Nexant) ................................................ 138
7.2 U.S. LPG Supply/Demand Balance ....................................................................................... 139
7.3 Western Europe LPG Supply/Demand Balance .................................................................... 141
7.4 Asia Pacific LPG Supply/Demand Balance ............................................................................ 143

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Table Page

1.1 Ethane and Propane Recovery by Process ........................................................................... 5

1.2 Recovery Factors and Gas Shrinkage Values ....................................................................... 6
2.1 Natural Gas and Natural Gas Liquids Composition ............................................................... 11
2.2 Sample Barnett Shale Gas Compositions .............................................................................. 13
2.3 Uses of Natural Gas Components ......................................................................................... 15
2.4 Algonquin Gas Pipeline – Gas Quality Provisions ................................................................. 19
2.5 Properties of Selected Natural Gas Components .................................................................. 19
2.6 Main Pre-Treatment Options .................................................................................................. 23
2.7 Main Processes for NGL Extraction ....................................................................................... 24
3.1 Natural Gas Pre-Treatment Processing ................................................................................. 26
3.2 Advantages and Disadvantages of J-T-Expansion ................................................................ 32
3.3 Properties of Commonly Used Refrigerants ........................................................................... 35
3.4 Impact of Staging on a Propane Refrigeration System .......................................................... 35
3.5 Advantages and Disadvantages of Mechanical Refrigeration ............................................... 36
3.6 Advantages and Disadvantages of Turbo Expansion ............................................................ 43
3.7 Comparison of Processes Operating Ethane Recovery and Rejection ................................. 56
3.8 Typical Fractionator Parameters ............................................................................................ 63
4.1 Comparison of IPSI Patent with Prior Art Flow Scheme ........................................................ 83
4.2 Technip’s Flexible Ethane Recovery Process Pressure and Recovery Specifications .......... 104
4.3 Ethane and Propane Recovery by Process ........................................................................... 106
6.1 Raw Gas Composition ............................................................................................................ 123
6.2 Sales Gas Compositions ........................................................................................................ 125
6.3 Prices of Raw Materials, Products, Utilities, and Labor ......................................................... 126
6.4 Cost of NGL Production by Mechanical Refrigeration ........................................................... 128
6.5 Cost of NGL Production by Turbo Expansion ........................................................................ 129
6.6 Mechanical Refrigeration Shrinkage ...................................................................................... 130
6.7 Turbo Expansion Shrinkage ................................................................................................... 131
6.8 Regional Prices of Raw Materials, Products, Utilities, and Labor .......................................... 134

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Nexant, Inc. (www.nexant.com) is a leading management consultancy to the global energy, chemical, and related industries. For over 38 years, Nexant
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