Published December 2002
The chemical conversion of methane to liquid fuels and other higher value products or derivatives which may be more cost effective to transport long distances from remote gas sources has therefore attracted renewed interest. Even though Fischer-Tropsch (FT) synthesis is a technically proven gas-to-liquids (GTL) technology, the conversion of natural gas to liquid fuels such as diesel and gasoline as opposed to higher value chemical products such as chemical grade methanol has only relatively recently been perceived to be a potentially viable commercial proposition. Recent advances in FT synthesis technologies, particularly with regard to natural gas reforming and catalytic partial oxidation, coupled with anticipated increased demand for "clean" diesel fuel appear to be enhancing the economic viability of this route to GTL.
The focus of this report is a comparative techno-economic evaluation of three leading technologies for FT based GTL diesel production, currently under development by the following companies - Sasol, ConocoPhillips, and BP. We also briefly survey the status of FT based GTL technology development by other leading technology developers. The scope of this report includes an assessment of market trends for petroleum-based products as well as future transportation fuel specifications, in addition to a geographical breakdown of natural gas reserves with wellhead costs estimated for various locations.
