Natural Gas To Liquids

Natural Gas to
Liquids
Introduction
A whole range of fuels can be produced from
Natural gas by partial oxidation to synthesis
gas (a mixture of H2 and CO) and subsequent
conversion of this gas
1993 Shell pioneered the GTL business at
their Shell Middle Distillate Synthesis Plant in
Bintulu.
In this plant Naphtha, Kerosene and Fischer
Tropsch Diesel (FTD) were produced apart from
other specialized products
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Gas to Liquids: A New

Frontier for Natural Gas
The relatively high world crude oil prices have drawn
attention to the potential for developing previously
uneconomical
natural
gas
reserves,
such
as
associated gas or stranded gas
Converting these resources to liquids - either to
liquefied natural gas (LNG) or to petroleum liquid
substitutes, such as diesel, naphtha, motor gasoline,
or other products (such as lubricants and waxes) by
employing gas to liquids (GTL) technology - could
provide a way to bring these gas resources to market.
GTL has recently become attractive as an option for
monetizing
stranded
gas
and
complementing
traditional commercialization opportunities such as
LNG or pipeline transportation.
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Gas to Liquids
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Gas to Liquid Commercial

Viability
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Gas to Liquids: Economics

The economics of GTL continue to improve with
advances in technology and scale.
Capital costs have dropped significantly, from more
than $100,000 per barrel of total installed capacity
for the original plants to a range of $25,000 to
$30,000 per barrel of capacity today.
Moreover, Royal/Dutch Shell has commented that it
expects to be able to reduce the costs to below
$20,000 per barrel.
By
comparison,
the
costs
associated
with
conventional
petroleum
refining
are
around
$15,000 per barrel per stream day after several
decades of technology improvements.
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The high oil prices of recent years have

made
transportation
fuels
produced
through
GTL
technology
commercially
viable.
Few companies release the detailed costs of
their GTL conversion technologies.
According to ConocoPhillips, assuming that
the cost of natural gas is $1.00 per million
Btu, GTL fuel is cost competitive with diesel
fuel at world oil prices above $20 per barrel.
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Economics Gas to Liquid
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GTL FTD - Advantages

Among the different GTL products, the diesel fraction
is highly valued in the downstream market because of
its unique properties that meet environmental
regulations
The GTL fuel reduces emissions relative to
conventional diesel, as it contains near-zero sulfur
and aromatics.
GTL fuel also exhibits a high cetane number that
enhances engine combustion performance
Because they are compatible with existing vehicle
engines and fuel distribution infrastructures, GTL
fuels are the most cost-effective in reducing
emissions among the non-conventional fuels
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Gas to Liquid Plants

At present, worldwide there are at least 9
commercial GTL projects at various stages of
planning and development
for the period 2009 to 2012 that could bring to
market an additional capacity of 580 thousand
barrels per day.
More than 19 additional proposed projects could
double that capacity beyond 2012
Initiated by companies operating in gas-rich
countries - Qatar, Iran, Russia, Nigeria, Australia,
and Algeria - where natural gas can be developed
at a cost of less than $1.00 per million Btu.
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10
Gas to Liquids Major

Initiatives
Qatars North Field, with an estimated 900 trillion
cubic feet of natural gas reserves, and the
adjoining South Pars field in Iran with an estimated
500 trillion cubic feet of reserves, are the cheapest
natural gas resources in the world
For other countries, such as Nigeria and Algeria,
GTL complements their LNG industries
GTL offers promise for use in Nigeria to convert
natural gas that would otherwise be flared.
Challenges
Huge capital investments
Project financing
Availability
of
qualified
contractors
and
operators
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11
Gas to Liquid Current &

Proposed
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12
Gas to Liquids
Major Initiatives - Qatar
Six of the nine confirmed GTL projects are
located in the state of Qatar as joint ventures
Based on an integrated development and
production sharing agreement (DPSA) with
major international oil companies.
Foreign
companies
have
favored
this
approach, because it gives them an
opportunity to book part of the gas reserves
on their balance sheet and support their
upstream and downstream activities
By 2011, Qatar is set to produce about 394,000
barrels of GTL products per day or 68% of total
planned GTL capacity
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13
Gas to Liquids
Major Initiatives - Qatar
Have established a favorable climate in terms of
transparent business and investment policies.
Stable tax regulations
Enforcement of formal agreements
Governments willingness to protect foreign
investors through its legislature.
Stable political climate
Developed infrastructure and Service
Provides guarantees for the safety of foreign
employees
Potential for future development through
expansion of existing facilities.
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14
Gas to Liquid Plants
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15
Qatar Initiatives in
Natural Gas
Qatar reached agreements with a group of
financial institutions to fund their gas-related
projects in exceed $60 billion
Developed a master plan to expand its port
Double the size of Ras Laffan Industrial city from
39 square miles to 77 square miles,
Accommodate 7 GTL projects, 16 LNG trains, 5
gas processing plants, 6 to 7 ethylene plants,
and a variety of other gas-related industries.
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16
By 2012, Qatar must produce nearly 25 billion cubic

feet of natural gas per day to support its
commitments.
10.3 bcf/day to produce 77 millions metric tons of
LNG p. a
4 bcf/day for the 394,000 barrels per day of GTL
5 bcf/day for petrochemical, local power, and
industrial projects
2 bcf/day
for exports through the Dolphin pipeline.
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17

Natural Gas To Liquids

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Natural Gas To Liquids

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Natural Gas to

Gas to Liquids: A New

Gas to Liquid Commercial

Gas to Liquids: Economics

The high oil prices of recent years have

Economics Gas to Liquid

GTL FTD - Advantages

Gas to Liquid Plants

Gas to Liquids Major

Gas to Liquid Current &

Gas to Liquid Plants

By 2012, Qatar must produce nearly 25 billion cubic

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