Petroleum Science and Engineering

2019; 3(2): 85-93

http://www.sciencepublishinggroup.com/j/pse
doi: 10.11648/j.pse.20190302.17
ISSN: 2640-4486 (Print); ISSN: 2640-4516 (Online)

Economics of Gas-to-Liquids (GTL) Plants

Ekwueme Stanley Toochukwu, Izuwa Nkemakolam Chinedu, Obibuike Ubanozie Julian,
Kerunwa Anthony*, Ohia Nnaemeka Princewill, Odo Jude Emeka, Obah Boniface
Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria

Email address:
*
Corresponding author

To cite this article:

Ekwueme Stanley Toochukwu, Izuwa Nkemakolam Chinedu, Obibuike Ubanozie Julian, Kerunwa Anthony, Ohia Nnaemeka Princewill, Odo
Jude Emeka, Obah Boniface. Analysis of the Economics of Gas-to-Liquids (GTL) Plants. Petroleum Science and Engineering.
Vol. 3, No. 2, 2019, pp. 85-93. doi: 10.11648/j.pse.20190302.17

Received: October 21, 2019; Accepted: November 23, 2019; Published: December 13, 2019

Abstract: This work evaluates the economics of GTL plant using two synthesis gas methods. The first method called the
base case utilizes oxygen as fuel for combustion of natural gas, while the proposed case uses steam/CO2 instead of Oxygen.
The aim is to ascertain a more economically viable GTL configuration for an optimal GTL process. The associated flare gas at
Egbema production sites in the Niger Delta has been chosen as case study. The gas flowrate is 50MMscfd of raw natural gas
which was pre-treated before being fed into the main GTL plant. The liquid yield result shows that the proposed method has a
liquid yield of 5730b/d over the 5430b/d gotten from the base case representing an increase in product yield of 5.5%. The
economic analyses show a quicker pay-out time of 4.9 years from the proposed model compared to 5.9 years from the base
case. Using the proposed method gave an annual cashflow increase of 20.9% and NPV increase of 59.7% at 10% discount
rates. Also the DCF-ROR from the proposed method was 20.3% compared to 16.6% gotten from the base method. Thus the
proposed method is more profitable in terms of NPV. The project is recommended for application in the Niger Delta stranded
and remote gas locations that have before now been subjected to flaring.
Keywords: Gas-to-Liquid, Natural Gas, Monetization, Pressurization, Energy, Syngas Generation

conversions are Liquefied natural gas (LNG) technologies,

1. Introduction compressed natural gas (CNG) technologies, Gas-to-wire
The basic problem of natural gas lies in its transportation (GTW) technologies, Gas to hydrates (GTH) technologies,
and storage. Unlike oil which is liquid, natural gas takes the Gas to liquids (GTL) technologies, natural gas liquids (NGL)
shape of its container; thus, special containers must be extraction technologies [1].
deployed for its transportation and storage. Because of the Gas-to-Liquids (GTL) technologies can offer adequate
nature of gases, construction of these vessels are rather more monetization of small associated gas volumes in scattered
costly than that of crude oil making natural gas technologies locations in the Niger Delta. These associated gases were
relatively more expensive. Manufacturers of gas technologies flared before because they were not needed and as such were
seek ways that natural gas can be conveniently phased to seen as nuisance, but now the emergence of gas projects have
enable its easy transportation to user locations. Most times, created a window for utilization of these gases. GTL presents
the gas can be used in the new phase when there is a one of the technologies for utilising these gases. A
permanent chemical conversion step or regasified to gas technological breakthrough in GTL technologies made
phase before usage when the conversion process is only a available small-scale mini modular plants capable of
temporal physical one. These conversions are mainly to handling small volumes of gases at a lower capital cost.
liquid phase through refrigeration, pressurization or use of Initially GTL was viewed as a capital intensive project
catalyst, or to solid states through very low temperature requiring huge capital expenses and availability of large
refrigeration relying on its dewpoint and hydrate formation volume of gas for economic viability. Because of these
characteristics. The technologies available for natural gas constraints, only very few large scale commercial plant are
 Petroleum Science and Engineering 2019; 3(2): 85-93 86

operational [2-5]. The only plant in Nigeria is the Escravos iv) Natural gas price.
GTL facility in Escravos Delta state. The project costs more
than 5 billion dollars for its construction and expected to run 2.1. Capital Investment
at a capacity of 34000b/d of product fuels like diesel, The capital investment (CAPEX) for GTL plant comes
gasoline etc. Economies of scale made available smaller from various units and represent the largest economic
plants for improve utilization of associated stranded gases expenditure of the GTL plant. The capital investment for a
[6]. A number of studies have attempted to evaluate the GTL plants includes the following [13]:
economic attractiveness of GTL technologies [7]. As is the (1) The cost of the equipment (Ce): This includes all the
case for any investment, four major parameters are used to equipment to be used in the GTL facility and includes
determine the economic viability of GTL technology: i) individual equipment from all the units in the GTL
Capital expenditures, ii) Feedstock costs, iii) Processing costs process plant. The various units start from the gas pre-
and iv) Product values. treatment stage down to the product work-up. But in
Research has shown that among the various steps present most GTL operations, the pre-treatment stage is not
in the GTL system, the syngas generation step is the most usually part of the main GTL process operation, this is
capital intensive. This is because of its high energy because the treatment of the gas is sub-contracted out
consumption, cost of construction and complexity of to companies and treated gas is delivered on purchase
configuration as an additional unit. This paper evaluates the to the GTL operators. Although in some situation, the
economics of GTL plant using two synthesis gas method- an operators may wish to accomplish the pre-treatment of
autothermal reforming method and a newly proposed the natural gas onsite as part of the GTL operation
steam/CO2 method [8]. especially in large commercial plants.
The processes involved in GTL plant operations are (2) The installation cost (Ci): This includes the cost of
divided into four main units given below: The natural gas installing the various equipment onsite. The sum of the
pre-treatment units, the synthesis gas unit, the Fisher Tropsch total equipment cost and installation cost is called the
unit, the product upgrading unit inside battery limit cost (ISBL). The installation cost
These four main units in the GTL plants have their comprises the following operations: (a) Piping, (b)
peculiar operations, processes, considerations and objectives. Electrical, (c) Equipment erection, (d) Instrumentation
A full GTL plant process is an integration of these units and and control, (e) Civil works, (f) Structures and
processes for a common goal. Each unit is peculiar and building, (g) Lagging and paint
distinct from the other and is important to the overall (3) The outside battery limit cost (OSBL): This includes
integrated system [9]. The raw gas is pretreatment in the other costs such as the engineering and design, offsites,
pretreatment unit to remove impurities such as acid gases and contingents.
some entrained liquids (e.g. wateror heavier end (4) The working capital (Wc): The working capital is
hydrocarbon). The pretreatment depends on the volume of additional money needed in order to run the plant until
gas and the mole composition of the gas. In the synthesis gas the plant starts to earn income. The working capital is
unit, the treated gas composed almost entirely of methane is returned at the end of the project time. For
converted to synthesis gas. The synthesis gas is composed of petrochemical industries the working capital is
hydrogen and carbon monoxide – a precursor for most typically 15% of fixed capital investment [14].
petrochemical industries. The synthesis gas unit comprises
the pre-reformer unit and the reformer unit. The several types ISBL = + (1)
of synthesis gas units available are: the steam methane
reforming, the partial oxidation reforming, the autothermal Total fixed cost ( )= + (2)
reforming, the dry reforming (CO2 reforming) and steam/CO2 Total investment cost = + (3)
reforming [10]. The pre-reformer cracks heavier
hydrocarbons in the pre-treated natural gas stream before Total investment cost (CAPEX) = + + + (4)
being sent to the reformer. Here all hydrocarbons heavier
than methane are converted to methane or synthesis gas. The 2.2. Equation for Estimation of CAPEX
reformer converts the methane to synthesis gas. In the
To address the plant capacity, economies of scale relate the
Fischer Trospch unit, the synthesis gas is reacted to form
CAPEX to the plant capacity and may be expressed in the
synthesis crude which is upgraded in the product upgrading
equations below [15].
unit [11, 12].
= (5)
2. Economics of GTL Plant ! "#
= ∗ & (6)
$ % ! "#
Considering the economics of GTL plant, factors relating
to the project economics are of interest. The factors affecting = ' ' ∗ (7)
the viability of GTL are summarized below: i) Capital
Investment, ii) Operating expenditures, iii) Crude oil price, Where Y reflects the degree to which a particular facility
87 Ekwueme Stanley Toochukwu et al.: Analysis of the Economics of Gas-to-Liquids (GTL) Plants

benefits from economies of scale. A value of 1.0 implies the depreciation, . " = fractional income tax.
facility does not benefit from economies of scale. For The taxable income 0 is given by
example, the construction of parallel trains (instead of larger
ones) would yield Y values approaching 1.0. Y values for 0 = − *"+ − , (9)
refining and petrochemical plant are typically 0.5 to 0.88. The depreciation used here is the straight-line depreciation
The value for GTL plant is estimated at 0.66. method and is given by
2.3. The Operating/Production Cost Estimation ;<=>?@ABC DEFCGHIJKILA KIJ=A
1epreciation = (10)
M>NA ?AO>EP EN ;<=>?@ABC
These are costs which are dependent on production, such
as electricity and operators. For the purpose of this work the The total annual operating cost is the total cost per year of
natural gas cost is excluded from the operating cost. This is the non-feedstock cost and the natural gas price.
done for easy evaluation of the sensitivity of the project ii). Payout Time (POT)
economics to changing natural gas price since the operating Mathematically the pay-out time is calculated as
cost (OPEX) is given as a percentage of the CAPEX. ! " R +%"
Q = (11)
%S R+T/V W
2.4. Crude Oil Price
iii). The Discounted Cashflow Rate of Return (DCF-ROR)
The price of crude oil affects GTL product price. This is This is the discount rate at which the net present value is
because GTL products compete with conventional crude oil equal to zero.
products. If crude oil price is generally low, the cost of crude iv). Net Present Value (NPV)
oil products will be low and it will affect the demand for The following is the formula for calculating NPV
GTL products. This is because GTL conversion technologies
are generally capital intensive and can only thrive if crude oil XQY = ∑`"a\ [
− _ (12)
\]^ [
price is high to justify investment.
Where: Ct = net cash inflow during the period t, Co= total
2.5. Natural Gas Price
initial investment costs, r = discount rate, and, t = number of
Natural gas price is one of the single factors that affect the time periods.
total operating expenditure for a GTL project. The price of
3.2. Project Case Study
gas utilized as feedstock by GTL is usually negotiated
between the host nation and the investor with little reference The case study here describes the location under
to market prices. Studies have shown that for a GTL project investigation. For this project, we consider the conversion and
to be viable, the price of gas must not exceed $0.5/MMBTU. monetisation of the flare natural gas at Egbema production
IOCs who have partnered with producing nations on GTL sites. This region has been heavily impacted by gas flaring.
projects may obtain preferential gas prices for their GTL The construction of GTL facility in this area is expected to
facility. In some cases because the natural gas is flared, it can convert the flare gases into premium quality transport fuels
be given at no cost initially for a contract agreement to like diesel, gasoline and kerosene for home usage. The GTL
investors on agreement with host government in bid to products are to be mostly utilized in the nearby Owerri, the
develop the resource, monetize the gas and stop gas flaring in capital city of the state while surplus will be sold to
the country. Portharcourt and Onitsha, the adjoining cities. Literature
reveals that more than 50MMscfd of gas is being flared in this
3. Methodology region. This volume becomes our target volume for
monetisation. We employ mini modular technology because of
The methodology comprises the economic indicators for the relatively small volume of the gas and to ensure project
the GTL plant. They are discussed and evaluated below. optimisation and private investor partnership. The project is
expected to yield 5000b/d of GTL liquid fuels, this is the plant
3.1. Economic Evaluation Variables
capacity.
The following economic evaluation variables shall be To determine the capital cost of this 5000b/d, plant we
considered: The Payout time (POT), the discounted cash flow make comparison with existing mini GTL facilities currently
rate of return (DCF-ROR), the net cash flow, the net present in operation in other areas. For this project analysis we make
value, Profit per investment ratio. use of the capital cost of CompactGTL facility at
i). Cash Flow/NCR Kazakhstan. This facility has a capacity of 2500b/d of GTL
The cash flow is calculated from the formula given below: liquid products with an overall capital cost of US$275MM.
from these we can calculate the capital cost of our proposed
=( − *"+ − , ∗ 1 − ." / + , (8) GTL plant using equation 6.
From the calculation the total capital cost of our proposed
Where = cashflow/NCR, = Annual Revenue in
plant is US$434,522,721 which is approximated to be
dollars, *"+ = Annual total production cost, , = Annual
US$434.5MM. The capital cost calculated includes all the
 Petroleum Science and Engineering 2019; 3(2): 85-93 88

units which also comprise the ASU plant for generation of kerosene, $90/bbl for gasoline
oxygen. But since the ASU will be operated by independent viii. Straight line depreciation method
licensed operators and oxygen sold to the GTL operators, we ix. Salvage value of zero
shall exclude the cost of ASU plant from the capital x. Income tax of 35% base case
investment cost (CAPEX) of the GTL plant.
From literature conventional ATR plants with ASU has its 4. Result and Discussions
ASU contributing about 20% of the total investment cost
(CAPEX) of the overall process plant. If we subtract 20% Result of economic analyses are presented based on the
from the estimated cost of the GTL, then the new GTL total barrels of liquid products produced. The economic
CAPEX without ASU plant will be US$347,618,177, analyses are determined concurrently for the ATR reforming
approximately US$347.6MM. Thus, the capital cost of the and for the steam/CO2 reforming GTL plants.
ATR configuration for use in this work is US$347.6MM.
4.1. GTL plant Product Yield
3.2.1. Base Case (Case 1)
In this case, a GTL plant was designed using Autothermal The GTL simulation yield is summarized in the table
reforming method as the method for the synthesis gas below.
production. The synthesis gas here is the precursor to the Table 1. GTL plant product yield for ATR syngas method.
actual Fischer Tropsch reaction. The Autothermal reformer
(ATR) uses oxygen from air separation unit (ASU) as one of Volume (b/d)
Component
ATR Steam/CO2
the reactants. Other reactants includes steam and the pre-
Gasoline 3025 3120
treated natural gas. Kerosene 1380 1425
Diesel 1025 1185
3.2.2. Alternative Case (Proposed Method) Total 5430 5730
Alternative case, we design a process plant that will
minimize cost and enhance performance and less pollution. From table 1 above, the product yield from the steam/CO2
In this work we propose a method that is CO2 reductive, this reforming is 5730b/d while that of the ATR method is
method uses steam and CO2 as the reactant fuels instead of 5430b/d. For a rule of thumb the liquid product yield for
oxygen as in base case. Furthermore CO2 is supplied GTL plant is 1 barrel for 10,000 scf of pre-treated natural gas
externally from the market to get the required amount feedstream. From this calculation our feedstream corresponds
necessary for the synthesis gas production. to a conventional production of 5000 b/d. Both the ATR
reforming method and the steam/CO2 reforming method gave
3.3. Project Economic Parameters
high product yields. When compared with the expected yield
The economic parametres for the project is given below. from the rule of thumb, the product yield from the steam/CO2
i. Plant capacity is 5430b/d for ATR GTL plant and reforming method represents a 14.6% increase while the
5730b/d for steam/CO2 GTL plant from natural gas product yield from the ATR plant represents an 8.6%
inlet flowrate of 50MMscfd increase. Thus, the steam/CO2 has more product yield and is
ii. Capital cost is US$347.6MM (ASU excluded) preferred as a choice over the ATR reforming GTL plant
iii. Feedstock cost is $2.5/MMBTU since gas is flared method.
gas 4.2. Result for Revenue
iv. OPEX is 5% of CAPEX (excluding natural gas price
and cost of O2 or CO2) Revenue was calculated on annual basis. The annual
v. Plant operational period of 25 years revenue comprises the money accrued from the sales of the
vi. 350 plant operational days per year GTL product per year. The annual revenue calculation is
vii. Refined GTL product price of $100/bbl for diesel and presented in table 2 below.
Table 2. Revenue presentation for both cases of the GTL project.

Market Price Production Capacity (B/D) Total Daily Revenue (US$) Total Annual Revenue (US$)
GTL Product
(US$)/Bbl ATR Steam/CO2 ATR Steam/CO2 ATR Steam/CO2
Gasoline 90 3025 3120 272250 280800 95287500 98280000
Kerosene 100 1380 1425 138000 142500 48300000 49875000
Diesel 100 1025 1185 102500 118500 35875000 41475000
Total - 5430 5730 512750 541800 179462500 189630000

From the table above, the annual revenue for ATR and is realized from the use of steam/CO2 reforming GTL plant
steam/CO2 reforming are US$179462500 and than the ATR reforming GTL method.
US$189630000 respectively. The revenue from the
steam/CO2 reforming of the GTL plant gave a 5.67% 4.3. Result for OPEX of the GTL Plant
increase in revenue from that of the ATR, thus more revenue The Operating expenses for the GTL project for both cases
89 Ekwueme Stanley Toochukwu et al.: Analysis of the Economics of Gas-to-Liquids (GTL) Plants

are presented in the table below. The table below gives the result of the OPEX used in this work.

Table 3. Calculation of Total OPEX of the GTL project.

Annual cost (US$)

Component Flowrate (MMscfd) Cost per (Mscf)
ATR STEAM/CO2
Natural gas 50 2.5 43750000 43750000
Oxygen 50.19 2 35133000 -
CO2 50.19 1.5 - 26349750
Variable OPEX (5% of CAPEX) - - 17380908.85 17380908.85
Total OPEX - - 78883000 70099750

From table 3 above, the total OPEX for the ATR and the
steam/CO2 reforming GTL plants are US$78883000 and 4.4. Result for Key Economic Indicators of the GTL Project
US$70099750 respectively. There was a reduction of 11.13% Table 4 below gives the economic indicators of the project.
in the OPEX from the use steam/CO2 reforming technique Comparison is made for both cases.
for the GTL plant making the proposed method less costly to
operate than the base case method.
Table 4. Presentation of Economic Indicators for the GTL project.

Economic Parameter ATR Steam/CO2 Difference

Annual Cashflow/NCR (Us$) 58945738.7 71263726 20.9%
NPV (Us$) 187434652 299245518 59.7%
DCF-ROR (%) 16.6 20.3 4.7
Pay-Out Time, Pot (Yrs) 5.9 4.9 1
P/$ 3.24 4.13 0.89

From table 4 above, it can be seen that using steam/CO2 The DCF-ROR for the GTL project for US$2.5/Mscf
method for the reforming of the GTL improves the profitability natural gas price are 16.6% and 20.3% respectively while the
in all the indices considered. There is a 59.7% difference in the Pay-out time are 5.9 years and 4.9 years for the ATR and
NPV when steam/CO2 method was chosen instead of the ATR steam/CO2 reforming method respectively. The figure 1
for the GTL plant project. This amounts to a net profit of below gives the POT and the DCFROR for both cases
US$111810866 from the use of steam/CO2 reforming method. considered.

Figure 1. Figure showing Pay-Out Time for US$2.5/Mscf natural gas price for both cases of the GTL plant considered.

From figure 1, it can be seen that using steam/CO2 reforming gives a faster pay-out time than the ATR method for the
synthesis gas production during GTL plant operation.

Figure 2. DCF-ROR for the project natural gas price of US$2.5/Mscf.

 Petroleum Science and Engineering 2019; 3(2): 85-93 90

The discounted cashflow rate of return is the discount rate following factors: i) Discount rates of 10%, 15% and 20% are
that will yield an NPV of zero. From figure 2 above, the used, ii) Natural gas cost of US$2.5/Mscf and US$3/Mscf, iii)
DCF-ROR is 16.6% for ATR reforming GTL method and Changes in non-feed stock OPEX of 5% and 6%, iv) Changes in
20.3% for steam/CO2 reforming GTL method. The DCF- CAPEX of US$80,000 PBLD and US$100,000 PBLD.
ROR of 16.6% and 20.3% calculated shows that the project is
4.6. Sensitivity Analyses of the ATR Reformer GTL Plant
economically viable for the two cases considered since the
discount rates for most gas projects are not greater than 10%. For the ATR reforming method, the total product yield is
Despite that, the steam/CO2 is more preferable when 5430b/d. The capital cost per barrel liquid a day (PBLD) is
considering the DCF-ROR because it gave a higher value at US$64018 PBLD. Thus, we evaluate the sensitivities for
the economic prevalent considered. US$80,000PBLD and US$100,000PBLD. The table below
gives the sensitivity analyses of the ATR reformer for natural
4.5. Sensitivity Analyses
gas price of US2.5/Mscf and for changes in CAPEX to
Sensitivity analyses are performed on both cases to ascertain following values: US$80,000PBLD and US$100,000PBLD
the sensitiveness of economic variables on economic
4.6.1. Sensitivity ATR Reformer for Natural Gas Price of
performance indices. This is done by changing some factors
US$2.5/Mscf
while others are kept constant to determine the baseline of
Table 5 below describes the results for sensitivity analyses
profitably of the project under changing economic conditions in
of the GTL project for natural gas price of US$2.5/Mscf.
the future. The sensitivity was conducted with changes in the
Table 5. General economic indices for sensitivity analyses of ATR reformer GTL plant at natural gas price of US$2.5/Mscf.

ATR: NG price CAPEX: $50,000/BLPD CAPEX: $64,018/BLPD CAPEX: $80,000/BLPD

US$2.5/Mscf OPEX (% OF CAPEX)
Discount Rates 5% 6% 5% 6% 5% 6%
10% 276334992 260316286 187434652 166924916 86079971 60450041
15% 118636769 107229162 33415866 18810004 -63743914 -81996085
20% 27106296 18375042 -55979005 -67158168 -150704000 -164674006
NCR 60353925 58589175 58945739 56686221 57340275 54516675
DCF-ROR 21.4 21.4 16.6 15.9 12.5 11.8
POT 4.63 4.63 5.9 6.13 7.58 7.97

From table 5, it can be seen that the NPV decreases as the CAPEX is increased. The CAPEX is a factor that largely affects
the NPV as shown in the figure 3 below.

Figure 3. Graph of NPV vs. time for the ATR reforming at natural gas price of US$2.5/Mscf.

Furthermore, we investigate the economic sensitivity of

the project when the natural gas price increases from 4.6.2. Sensitivity ATR Reformer for Natural Gas Price of
US$2.5/Mscf to US$3.0/Mscf. The table 6 below gives the US$3/Mscf
economic variables. Table 6 below describes the results for sensitivity analyses
of the GTL project for natural gas price of US$3/Mscf
Table 6. General economic indices for sensitivity analyses of ATR reformer GTL plant at natural gas price of US$3.0/Mscf.

ATR: NG price CAPEX: $50,000/BLPD CAPEX: $64,018/BLPD CAPEX: $80,000/BLPD

US$3.0/Mscf OPEX (% OF CAPEX)
Discount Rates 5% 6% 5% 6% 5% 6%
10% 224709327 208690621 135808987 115299251 34454305 8824376
15% 81871921 70464314 -3348982 -17954844 -100508762 -118760933
20% -1033105 -9764359 -84118406 -95297569 -178843401 -192813408
91 Ekwueme Stanley Toochukwu et al.: Analysis of the Economics of Gas-to-Liquids (GTL) Plants

ATR: NG price CAPEX: $50,000/BLPD CAPEX: $64,018/BLPD CAPEX: $80,000/BLPD

US$3.0/Mscf OPEX (% OF CAPEX)
Discount Rates 5% 6% 5% 6% 5% 6%
NCR 5466425 52901675 53258239 50998721 51652775 48829175
DCF-ROR 19.9 19.2 14.8 14.1 11 10.3
POT 4.97 5.13 6.53 6.8 8.41 4.97

If the cost of natural gas is increased, the profitability of the project reduces. An increase of natural gas price by
US$0.5/Mscf gives a 0.36 year increase in pay-out time and a 1.5% decrease in the DCF-ROR for the ATR reforming of the
GTL plant.

Figure 4. Graph of NPV vs. Discount Rates for the ATR reforming at natural gas price of US$3.0/Mscf.

4.7. Sensitivity for the Steam/CO2 Reformer GTL Plant US$3.0/Mscf. The table below gives the result.

Here, we analyze the sensitivity of the economic variables 4.7.1. Sensitivity for Natural Gas Price of US$2.5/Mscf
on the economic performance of the GTL plant for the Table 7 below describes the result for sensitivity analyses
steam/CO2 reformer. First, we evaluate for natural gas price of the GTL project for natural gas price of US$2.5/Mscf
of US$2.5/Mscf and then for natural gas price of
Table 7. General Economic Indices for Sensitivity Analyses of ATR Reformer GTL Plant at Natural Gas Price of US$2.5/Mscf.

Steam/CO2: NG
CAPEX: $50,000/BLPD CAPEX: $64,018/BLPD CAPEX: $80,000/BLPD
price US$2.5/Mscf
OPEX (% OF CAPEX)
Discount rates 5% 6% 5% 6% 5% 6%
10% 388145858 372127152 299245518 278735781 197890836 172260906
15% 198262077 186854470 113041174 98435312 15881394 -2370778
20% 88050611 79319357 4965310 -6213853 -89759685 -103729691
NCR 72671913 70907163 71263726 69004208 69658263 66834663
DCF-ROR 26.7 26 20.3 19.6 15.6 14.9
POT 3.74 3.83 4.9 5.04 6.24 6.5

Table 7 gives the economic performance indices for the At 20% discount rate the project is profitable for CAPEX
steam/CO2 reforming method of the GTL plant for natural of US$50,000 PBLD and US$64,018 PBLD. The figure
gas price of US$2.5/Mscf. From the table, it can be seen that below illustrates the relationship of the NPV with the
the steam/CO2 reforming process shows better pay-out time discount rates for steam/CO2 reforming at natural gas price of
and DCF-ROR than that of the ATR. US$2.5/Mscf.

Figure 5. Graph of NPV vs. time for the steam/CO2 reforming at natural gas price of US$2.5/Mscf.
 Petroleum Science and Engineering 2019; 3(2): 85-93 92

For natural gas price of US$3.0/Mscf, the table below gives the effect of sensitivity on the economic performance of the
project.
4.7.2. Sensitivity for Natural Gas Price of US$3/Mscf
Table 8 below describes the result for sensitivity analyses of the GTL project for natural gas price of US$3/Mscf.

Table 8. General Economic Indices for Sensitivity Analyses of ATR Reformer GTL Plant at Natural Gas Price of US$3/Mscf.

Steam/CO2: NG CAPEX: $50,000/BLPD CAPEX: $64,018/BLPD CAPEX: $80,000/BLPD

price US$3.0/Mscf OPEX (% OF CAPEX)
Discount rates 5% 6% 5% 6% 5% 6%
10% 336520193 320501486 247619853 227110116 146265171 120635241
15% 161497229 150089622 76276326 61670464 -20883454 -39135625
20% 59911210 51179956 -23174091 -34353254 -117899086 -131869093
NCR 66984413 65219663 65576226 63316708 63970763 61147163
DCF-ROR 24.6 23.9 18.6 17.9 14.2 13.5
POT 4.05 4.16 5.3 5.49 6.79 7.1

Increasing the natural gas price from $2.5/Mscf to $3/Mscf b/d: barrels per day
increases the pay-out time by 0.21 years and reduces the CAPEX: Capital Expenditure
DCF-ROR by 2.1% for the seam/CO2 reforming method of CNG: Compressed Natural Gas
the GTL plant operation. CO2: Carbondioxide
From the sensitivity analyses, natural gas price greatly DCF-ROR: Discounted Cashflow Rate of Return
affects the profitability of the GTL project. A natural gas GTL: Gas-to-Liquids Technology
price difference of US$0.5/Mscf led to a 0.36 year increase in GtW: Gas-to-Wire
pay-out time and a 1.5% decrease in the DCF-ROR for the IOCs: International Oil Companies
ATR reforming of the GTL plant, also 0.4 years increase in ISBL: Inside Battery Limit Costs
LNG: Liquefied Natural gas
pay-out time and 1.7% decrease in DCF-ROR for the
MMbtu: Million British thermal unit
proposed steam/CO2 reforming method
MMscfd: Million standard cubic feet per day
Mscf: Thousand standard Cubic Feet
5. Conclusion MTG: Methanol-to-Gasoline
NCR: Net Cash Recovery
Gas to liquids technology has been evaluated economically. NGL: Natural Gas Liquids
Two methods were considered. The difference in configuration NPV: Net Present Value
of the GTL plant in the two methods was in the synthesis gas OPEX: Operating Expenditure
unit. The synthesis gas unit for the base case was retrofitted with OSBL: Outside Battery Limit Costs
oxygen gas as fuel for the combustion of the natural gas coming P/$: Profit-Per-Dollar Invested
into the GTL system while the alternative case used steam/CO2 P/$: Profit-per-dollar Invested
mixture instead of oxygen gas. The economic evaluation first of PBLD: per Barrel-Liquid a Day
all shows that regardless of the synthesis gas method used POT: Pay-Out-Time
above, the GTL process was an economical project under STG: Syngas-to-Gasoline Plus
normal economic conditions and can compete favorably with US$: US dollars
other gas conversation methods like LNG.
Furthermore, from the evaluation it is seen that the
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