4th PNG gas project

[ArtM72]

O'Neill is a smart man. They should do something like this in the US given our abundant supply...

We certainly appear to be talking a dimethyl ether plant here.  If you Google DME and DOE you will see a number of references to USDOE support for DME research into blending diesel and dme going back for over a decade.  Little appears to have come out of that work, although the USDOE has also been active in supporting research into DME production from coal.

More interest in DME has been seen in the EU.  This 2012 article talks about Volvo's interest in DME as a direct diesel substitue and references a DME plant under construction in Imperial, CA.

http://www.truckinginfo.com/channel/fuel...or-us.aspx

Finally, following the Itochu/PNG announcement last year I asked several IOC executives at the AGM if they knew anything about DME.  None did.  Total on the other hand certainly does, as can be evidenced in their sponsorship of the International DME association:

http://www.aboutdme.org/aboutdme/files/c..._taupy.pdf

According to the article above, the plant is intended " to convert gas into methanol, ammonia, and urea fertilizer", not dimethyl ether.

Didn't (still don't) see that.  Given the limited (but subject to substantial growth) demand for local nitrogen fertilizer I suspect DME will be the major high value output.  The technology is ready to go.

[Getitrt2]

O'Neill is a smart man. They should do something like this in the US given our abundant supply...

We certainly appear to be talking a dimethyl ether plant here.  If you Google DME and DOE you will see a number of references to USDOE support for DME research into blending diesel and dme going back for over a decade.  Little appears to have come out of that work, although the USDOE has also been active in supporting research into DME production from coal.

More interest in DME has been seen in the EU.  This 2012 article talks about Volvo's interest in DME as a direct diesel substitue and references a DME plant under construction in Imperial, CA.

http://www.truckinginfo.com/channel/fuel...or-us.aspx

Finally, following the Itochu/PNG announcement last year I asked several IOC executives at the AGM if they knew anything about DME.  None did.  Total on the other hand certainly does, as can be evidenced in their sponsorship of the International DME association:

http://www.aboutdme.org/aboutdme/files/c..._taupy.pdf

According to the article above, the plant is intended " to convert gas into methanol, ammonia, and urea fertilizer", not dimethyl ether.

Didn't (still don't) see that.  Given the limited (but subject to substantial growth) demand for local nitrogen fertilizer I suspect DME will be the major high value output.  The technology is ready to go.

Well try reading it again, next to last "paragraph"!  Does not make sense article would be wrong about that.  You have any basis for DME other than speculation?  Are we doing it here?

[Stavros]

PETRONAS has very large gas fields in Asia. They produce LNG, Methanol and Ammonia/Urea.
They don't convert any of their gas to DME that I know of.
It's extremely unlikely that anyone would initiate a gas-processing complex in PNG that would produce DME. They'd go with the tried-and-true where the technologies are well known and the regional markets are large. Japanese companies and trading houses aren't keen to step out into relatively new waters.

[ArtM72]

PETRONAS has very large gas fields in Asia. They produce LNG, Methanol and Ammonia/Urea. They don't convert any of their gas to DME that I know of. It's extremely unlikely that anyone would initiate a gas-processing complex in PNG that would produce DME. They'd go with the tried-and-true where the technologies are well known and the regional markets are large. Japanese companies and trading houses aren't keen to step out into relatively new waters.

I would  view the DME project as Japan's move away from diesel.  DME can use LP infrastructure and works fine in largely in unmodified engines.  At a few bucks per mcf tha becomes very cheap and easily transported fuel.

[Getitrt2]

What "DME project", Art? So far, it seems to exist only in your imagination. Also, forget about IOC promoting such, given the refinery they have producing diesel.

After above, found clarification in other related thread. Sounds like a "DME project" by a different company is a possibility, but not the subject of above article and "iffy" at this point.

[ArtM72]

What "DME project", Art? So far, it seems to exist only in your imagination. Also, forget about IOC promoting such, given the refinery they have producing diesel. After above, found clarification in other related thread. Sounds like a "DME project" by a different company is a possibility, but not the subject of above article and "iffy" at this point.

My imagination isn’t THAT good.  But that doesn’t matter, it doesn’t take all that much imagination.  Here are a few dots:

Here’s a 2005 article about interest in placing a DME plant in PNG: http://www.icis.com/resources/news/2005/...nt-at-png/

Here’s a 2007 article:

http://www.aboutdme.org/eficlient/files/...a_jdme.pdf

Here’s a 2013 article involving Sojitz: http://www.aboutdme.org/index.asp?bid=564&efg=1

I would invite you to look in that 2013 report at the geographic distribution of DME interest, then tell me it is my imagination that DME production is not a likely near term outcome for PNG gas.

DME production chemistry is well known.   Unlike LNG, LPG infrastructure(75 psi)  is suitable for DME storage and distribution and, most importantly, when you can buy local natural gas for a couple bucks per mcf ($14/bbl?), convert it to a near direct diesel fuel substitute and ship it back home in low pressure container ships for sale against a $100+/bbl product there isn’t a market for the fuel?

And then we can ask what the potential market is, in tons per year, for urea as opposed to diesel fuel.

The Japanese and others have been looking at this for some time, during which time there have been numerous successful studies of DMEs use as a diesel (or natural gas) substitute fuel in conventional engines.

As I said, it doesn’t take much imagination to connect these dots.

[Getitrt2]

I don't think you can buy local natural gas DELIVERED for a "couple bucks per mcf". Nevertheless, I think Stavros is the one you need to be debating. I don't have the relevant technical expertise and have nothing else to offer.

[jft310]

Stavros understands the model for PNG gas development is their neighbor. Follow the Petronas model.