Trend: Liquified natural gas is a desirable but expensive energy source.
Natural gas can be liquified and used to produce clean energy in a wide variety of engines.
Source: Gas to liquids technology worldwide.
New technology is being developed and applied to convert natural gas to liquids in gas to liquids technology (GTL). The projects are scalable, allowing design optimisation and application to smaller gas deposits. The key influences on their competitiveness are the cost of capital, operating costs of the plant, feedstock costs, scale and ability to achieve high utilisation rates in production. As a generalisation however, GTL is not competitive against conventional oil production unless the gas has a low opportunity value and is not readily transported.
GTL not only adds value, but capable of producing products that could be sold or blended into refinery stock as superior products with less pollutants for which there is growing demand. Reflecting its origins as a gas, gas to liquids processes produces diesel fuel with an energy density comparable to conventional diesel, but with a higher cetane number permitting a superior performance engine design. Another “problem” emission associated with diesel fuel is particulate matter, which is composed of unburnt carbon and aromatics, and compounds of sulfur. Fine particulates are associated with respiratory problems, while certain complex aromatics have been found to be carcinogenic. Low sulfur content, leads to significant reductions in particulate matter that is generated during combustion, and the low aromatic content reduces the toxicity of the particulate matter reflecting in a worldwide trend towards the reduction of sulfur and aromatics in fuel.
Source: RL32666 - The Gas to Liquids Industry and Natural Gas Markets
Technological improvements and investment commitments from the world’s largest oil companies suggest the gas to liquids (GTL) industry is likely to expand rapidly over the next decade. GTL uses large quantities of natural gas to produce liquid petroleum products like diesel fuel and home heating fuel. The GTL industry might become an important competitor to the liquefied natural gas industry (LNG) in the effort to secure natural gas supplies. As a result, LNG markets may be tighter, with higher prices, potentially altering LNG’s projected role in the U.S. natural gas market.
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