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March, 2013:
Air Products to build air separation units for China coal gasification facility
At Lu’An’s Changzhi City facility, the coal-to-liquids project will produce mainly diesel fuel and derivatives. Air Products’ ASU trains will include design enhancements to minimize operating costs through energy efficiency. It is the second-largest ASU onsite order ever awarded to the company for a single project.
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Air Products on Wednesday announced the signing of a long-term agreement with Shanxi Lu’An Mining Co. for Air Products to build, own and operate four air separation units producing oxygen, nitrogen, compressed instrument air and steam.
The units will supply Lu’An’s multiple process trains at its coal gasification facility to be built in Changzhi City, Shanxi Province, China.
It is the second-largest ASU onsite order ever awarded to the company for a single project, according to Air Products officials.
Air Products’ four ASUs will combine to supply over 10,000 tpd of oxygen, more than 6,000 tpd of nitrogen, and over 700 tpd of instrument air.
The first of the four ASUs is targeted for onstream in July 2015. The remaining three are to be operational at one month intervals with the final ASU scheduled for commercial operation in October 2015.
“It’s been our strategy to pursue large ASU projects in the high growth China coal gasification market,” said Steve Jones, Air Products’ China president.
“This is another key win and important project for Air Products as we continue to grow our relationship with the major coal groups in China,” he added.
China has significant coal reserves to produce syngas from the coal and then convert the syngas into fuel, chemicals, and fertilizers, according to company officials.
At Lu’An’s Changzhi City facility, the coal-to-liquids project will produce mainly diesel fuel and derivatives. Air Products’ ASU trains will include design enhancements to minimize operating costs through energy efficiency.
Technology advancements and other productivity improvements support Air Products’ overall sustainability goals of reducing energy consumption and emissions.
“At Lu’An, we strive to cooperate and grow with industry leaders like Air Products. We look forward to further cooperation between our companies,” said Mr. Jinping Li, chairman of Lu’An.
The Lu’An win is Air Products’ eighth major investment supporting the gasification segment and the second supporting the coal to liquid sub-segment in China.
Once all the projects under construction are completed, Air Products will have 18 ASUs supplying large tonnage quantities of industrial gases to Chinese gasification facilities.
Saudi Aramco starts prequalification for Jizan gasification plant – Mubasher
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Saudi Aramco starts prequalification for Jizan gasification plant
11 February 2013 06:08 PM Updated : 11 Feb 2013 06:08 PM
Packages from Jizan refinery to be incorporated into Aramco’s planned power plant
State-owned oil company Saudi Aramco has started the prequalification process for the power plant to be built next to the $7bn Jizan refinery in the southwest of the kingdom, according to MEED.
The scheme will be larger than most conventional power projects, as it has also incorporated packages from the refinery. It will be using technology provided by an international oil company.
Aramco invited international engineering, procurement and construction (EPC) contractors in early February to submit prequalification documents. The deadline for submissions is 17 February.
“This could be the largest Aramco project of 2013,” says an oil and gas executive working in the kingdom. “Most contractors expect the budget to be at least $3bn, but some are saying it could rise to as much as $5bn.”
After the prequalification process has been completed, Aramco will then issue tenders for the packages to the successful EPC contractors. A lump-sum turnkey (LSTK) contract model is being used to execute the project.
The scheme will be split into five packages:
• Air separation unit/oxygen supply
• Combined-cycle power plant
• Gasification
• Offsites and utilities
• Sulphur recovery
The scheme will be an integrated gasification combined-cycle (IGCC) power plant, which will have a capacity of 2,400MW and use technology provided by the UK/Dutch Shell Group.
The US’ KBR is carrying out the front-end engineering and design (feed) as well as the project management consultancy (PMC) for the refinery and power plant.
MEED reported in September that the Jizan Refinery Project will only need about 500MW of power from the proposed IGCC, with the remainder being used to power potential large-scale industrial projects at Jizan Economic City.
The IGCC model is an unconventional method of building a power plant and works by mixing hydrocarbons with oxygen to produce synthesis gas (syngas), which is then used to fire turbines.
The sulphur recovery unit and the fuel gas de-sulphurisation package have already been taken from the Jizan refinery scope and added to the power plant.
MEED reported in March that Aramco was taking over the power plant project from the Saudi Electricity Company (SEC), which was previously in charge of its development.
Source: Mubasher
Generating value from refinery residue with gasification
One of the most compelling challenges of the 21st Century is finding a way to meet national and global energy needs. Oil refineries can help meet this challenge while generating more economic value by adopting a gasification process.
The economic benefits Of gasification
Refineries usually convert their waste or residue into asphalt or bitumen, products from which they derive very little economic value. Gasification technology converts this waste into valuable commodities, such as power, steam, oxygen, hydrogen and nitrogen, that are used in everyday refinery operations. A study by the National Energy Technology Laboratory (NETL) estimates these savings are worth US$ 13000 – $ 55000/day. Additionally, a refinery gasification plant is an attractive alternative energy source in regions with high natural gas prices.
In addition to the above operating expense savings, refineries can reduce their capital budgets when installing a gasification plant. Used plants are sold at a fraction of the cost of a new plant, often yielding savings of 40 – 50%. With new gasification plant investments running at US$ 500 – 800 million, the savings can fund a significant number of incremental capital projects. In addition to saving their investment capital, used plants save companies time and human capital. Generally speaking, facilities such as a gasification plant can be dismantled, relocated, re-assembled and operating in less than half the time of designing and building a new plant from scratch.
For example, International Process Plants (IPP) has a gasification plant available which converts refinery residue waste into clean synthetic gas. This plant consumes 1400 tpd of heavy residues to produce over 3000 tpd of clean syngas and can be modified to use petcoke or coal.
Refinery gasification opportunity
The IPP plant uses licensed technology from Texaco (GE Gasification), ABB, UOP, Parson and Praxair. The facility is over-designed to accommodate crude oils other than the standard Arab Heavy, such as Basrah Medium high-sulfur and Iranian Heavy feedstocks.
Units of operation
The Texaco gasification system is the core unit in this plant. It uses quench gasifier technology because:
- It is the best choice for gasifying feedstocks, such as refinery residues that have a high concentration of metal.
- It has a proven success record in the refinery industry.
- It is reliable and simple to operate.
- It offers superior environmental benefits.
Other units of operation include:
- Carbon extraction unit.
- Gas cooling and hydrolysis section designed by ABB Lummus Global.
- UOP acid gas removal system.
- Sulfur recovery unit comprised of two Parsons Claus units.
- Praxair™ air separation unit (ASU) produces oxygen that is 95% pure.
- Grey water treatment unit.
- Sour water stripper unit.
Written by International Process Plants.
For more information, please click here.