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Ikelic - Alliance Digital Repository

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NATURAL GAS<br />

In addition to fiscal reforms, the government has<br />

taken aggressive steps toward privatization.<br />

One prediction is that New Zealand's domestic<br />

hydrocarbon production, which now accounts<br />

for 85 percent of its gas and transportation fuels<br />

requirements, will account for only a 50 percent<br />

share by 2000.<br />

That forecast hinges on expectations for Maui.<br />

New Zealand's synthetic fuels, methanol,<br />

ammonia/urea, and electrical power industry es<br />

sentially<br />

were developed to take advantage of<br />

low cost, abundant Maui gas. Accordingly, not<br />

Maui production could see some of<br />

replacing<br />

those projects phase out or undertake costly<br />

switches to more polluting fuels.<br />

Of Maui production, 36 percent goes to<br />

Electricity Corporation of New Zealand,<br />

32 percent to the Motonui gas-to-gasoline plant,<br />

19 percent to Natural Gas Corporation (NGC),<br />

10 percent to the Petralgas methanol pant, and<br />

3 percent to the Petrochem ammonia/urea plant.<br />

The take or pay supply agreements for Maui gas<br />

all will expire during 2003-2009. The Motonui con<br />

tract expires in 2003 and the ammonia/urea and<br />

methanol<br />

plants'<br />

contract in 2005.<br />

Gas price increases could therefore make the<br />

synthetic fuels and methanol plants uneconomic<br />

by about 2009.<br />

Retcher Challenge owns 68.75 percent of Maui<br />

and notes that the giant field and its environs will<br />

continue to play<br />

Zealand's energy<br />

voir has begun to decline.<br />

an important role in New<br />

sector even after the main reser<br />

Remaining Maui interests are held by Shell<br />

Petroleum Mining Ltd. (18.75 percent) and Todd<br />

Petroleum Mining Ltd. (12.5 percent).<br />

Maui production currently averages about<br />

400-435 million cubic feet per day of gas.<br />

5-5<br />

New Zealand's government has reversed direc<br />

tion on energy policy, changing from investing<br />

heavily in energy projects to privatization and<br />

deregulation.<br />

In 1990, the government sold its interest in the<br />

Motonui synfuels plant to Fletcher, which in turn<br />

spun off its methanol and synfuels business and<br />

NGC. Canada's Methanex New Zealand now<br />

owns and operates both of New Zealand's<br />

methanol plants and the synfuels plant.<br />

####<br />

TECHNOLOGY<br />

BNL LIQUID PHASE METHANOL SYNTHESIS<br />

FOUND PROMISING<br />

Conventionally, methanol is produced in the gas<br />

phase over copper-zinc-based oxide catalysts<br />

according to the following reaction, which is<br />

highly exothermic:<br />

CO + 2 H2<br />

= CH3OH<br />

Recently, low-temperature methanol synthesis in<br />

the liquid phase has received considerable atten<br />

tion because it has the potential to overcome<br />

problems found in the conventional methanol<br />

processes. Two processes have been proposed:<br />

- The<br />

- The<br />

Brookhaven National Laboratory<br />

(BNL) low-temperature methanol<br />

process<br />

process through Methyl Formate<br />

(MF) formation<br />

Methanol synthesis via MF is supposed to<br />

proceed by the following two reactions occurring<br />

concurrently:<br />

CH3OH + CO = HCOOCH<br />

HCOOCH3 + 2H2 = 2 CH3OH<br />

THE SYNTHETIC FUELS REPORT, JANUARY 1995

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