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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
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.
Gas to Liquid – Commercial Viability
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.
•
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.
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
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.
Gas to Liquids – Major Initiatives
•
Qatar’s 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
Gas to Liquid – Current & Proposed
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
•
Have established a favorable climate in terms of
transparent
business and
investment
policies.
•
Stable tax regulations
•
Enforcement of formal agreements
•
Government’s 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.
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.
–
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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