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Evaluation of Methanol Value Chain

Soleimani, Ali | 2016

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 48352 (46)
  4. University: Sharif University of Technology
  5. Department: Energy Engineering
  6. Advisor(s): Maleki, Abbas; Hosseini, Ali
  7. Abstract:
  8. In this research, a general model is proposed aiming at establishment of optimized application of Methane gas with maximum added value. That is, maximum added value of methane for different applications of methane including consumption as fuel, export and injection-to-wells are calculated and compared. Accordingly, results of this study are used for decision making regarding Iran’s most important gas reservoirs. In this study, maximum present net value of investment concerning comparison of petrochemical industry input and export to a number of selected countries in addition to injection in 20 years is calculated based on a specific discount rate. It is noteworthy that the scope of this project is 20 years. First, injection to county’s main reservoirs with increasing extraction capacity is considered. Secondly, increase in extraction induced by Methane injection is compared with that of CO2 gas. It is assumed that the calculated increase is constant in 20 years considering that gas price cannot be predicted to be a certain value. Therefore, using simplified assumptions, which are afterwards elaborated upon, total net present value of gas export in the mentioned scenarios is calculated. On account of acquired statistical information, 4 prospective destination countries for Iran’s gas exportation are selected as follows: Turkey, Iraq, India, and Pakistan. Afterwards, due to existing uncertainties in export gas prices, a range of feasible prices based on varying probabilities are defined. That is, different weights are assigned to gas prices for exportation to each country. To do so, volume of gas exportation with regard to pipeline capacity of each country is obtained from the literature. It is noteworthy that costs of pipeline and pressure pump stations are to be included to calculate the present value of gas exportation. Therefore, using world gas pipelines maps, necessary variables are derived to calculate the cost of exploiting gas transit corridors to each country. Based on the mentioned 20-year vision, 15% of annual costs are considered to be transit costs. In addition, two important petrochemical Methane products are Methanol and Ammonium Urea whose production marginal costs are calculated in this research. Monetary documents of the corresponding firm were updated incorporating effects of variation in prices of Methane and Urea on income of that firm. Additionally, oil-based equations for 20-year marginal costs of petrochemical industry for Methane and Urea production are presented. Finally, obtained equations are investigated in 4 approaches considering one constant-price scenarios and three scenario based on U.S. Energy Information Administration (EIA) oil prices scenario
  9. Keywords:
  10. Injection ; Export ; Markup ; Petrochemical Industries ; Senario Processing ; Marginal Cost Function ; Decision Making ; Net Present Value

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