roger-newenham-smi-gtl-paper-2016-oct-12

I recently spoke at SMI’s Gas to Liquids (GTL) Conference in London. Whilst, many of the “normal suspects” were represented the overall attendance was modest compared to similar events prior to c. 2010.

As described in my paper I see GTL as a niche, rather than a mainstream, investment. However, that does not mean there will not be developments. NiQuan Energy made an interesting presentation on how GTL will work for them. Essentially they have addressed both the market and particularly the capital cost concerns which constrain GTL. By purchasing World Energy’s bankrupt plant, at what would appear to be an attractive price, NiQuan has in all likelihood achieved an enviable CAPEX position. Furthermore, with a local market which needs low sulphur diesel they would look to be producing the right product in the right location, where competing low sulphur diesel must be imported. We wish them well with this venture.

Other speakers focused on process intensification, aimed at minimising the investment in the syngas to liquids section of a GTL plant. With a focus on small to medium plants (as distinct from the large-scale Pearl and Oryx facilities in Qatar) this may offer a solution to the high CAPEX challenge of GTL, but would likely still leave it as a niche application to monetise e.g. landfill gas or similar.

This is a technology area which has been researched ever since Fischer and Tropsch first developed it in 1925. However, comercialisation has remained a challenge. enthusiasm has boomed on higher oil prices or prospects of shortages only to ebb away on falling prices and the realisation that the process remains capital intensive, even compared to oil refining or other processes for monetising natural gas. With the current situation for global oil and gas supplies it remains an expensive solution, although improved reactor technology may open up more niche applications.