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New PublicationsThe gas-to-liquids (GTL) business is involved in the chemical conversion of stranded natural gas feedstocks to liquid products such as transportation fuels and chemicals. Insofar as beneficial processing of the world’s huge resource base of stranded natural gas is concerned, GTL processing is a relatively recent R&D focus of the petrochemical industry. Development of commercial-scale GTL plants, utilizing stranded natural gas is a relatively recent development, too.
Liquid GTL products are primarily transportation fuels (and are defined as synthetic fuels) and chemical feedstocks such as methanol, hydrogen, and other petrochemicals. As the terms are presently used in the petrochemical industry, “GTL” and “GTL products” refer mainly to the output of plants (or refineries) that utilize stranded natural gas as feedstock. For that reason, conventional production of chemicals, including high-volume methanol, typically via steam methane reforming (SMR) of non-stranded natural gas, is not a principal focus of this report.
The objective of this research report is to provide an up-to-date and critical evaluation of the most dynamic and path breaking aspects of GTL technology and describe how recent breakthroughs in conversion technology have made GTL products competitive with products refined from crude oil. This report discusses the use of GTL processes to produce ultra-clean diesel fuels and high-quality chemical products such as waxes and the role of GTL as an enabling technology for the production of clean transportation fuels.
A principal focus of the report are individual company initiatives and R&D focus, Discussed as well is the status of all major GTL projects around the world that utilize stranded gas. Included are descriptions of technologies and products, and a forecast of the GTL market through 2014. The report quantifies demand for GTL by type of output, application, and production technology. A significant component of this report analyzes competitive synthetic fuel concepts, as the commercial success of competitive synthetic fuel concepts will weigh heavily on the ultimate trajectory of the GTL business. These competitive fuels include those derived from coal-to-liquids (CTL) and biomass-to-liquids (BTL).
A significant amount of the world’s natural gas resources are stranded, far from existing markets. Gas-to-liquids technologies can economically convert these resources into high-quality, ultra-low sulfur fuels that can be transported to consumers or used in remote locations.
Fischer-Tropsch (FT) processing of synthesis gas has undergone significant improvements in reactor design and product recovery. This has enabled the economic use of stranded natural gas feedstocks in GTL production on the front-end (i.e., the stranded natural gas is the initial feedstock that yields synthesis gas that is then processed via FT). Therefore, GTL fuel production is in a relatively advanced stage of development, with commercial production well demonstrated in, for example, Qatar, Malaysia, and South Africa. Although synthetic fuels can be produced from a range of feedstocks—biomass, coal, and natural gas—the GTL process is at the most advanced stage of commercial development. In addition, GTL utilizes gas resources that either are flared or are currently unmarketable. Synthetic fuel production via GTL processing of stranded gas is approximately 100,000 barrels per day (bbl/d), and it is estimated that as many as 10 large-scale GTL plants will be in operation over the next decade, producing as much as 1 million barrels per day (Mbbl/d) of GTL products.
Nearly every major oil company has announced plans to investigate producing synthetic diesel fuel via a GTL process. However, a handful of companies, such as established GTL companies Sasol, Shell, Syntroleum, and Rentech, are the dominant producers. As discussed in this report, though, there are numerous “second-tier” companies that have sizable GTL support operations in engineering, design, plant construction, ancillaries, and related activities. Generally, research and development are improving the efficiency and economics of GTL production as well as quantifying the costs and benefits of production and use of GTL fuel in vehicles.
GTL derived fuels do have competition in the market, and these competitors include low-grade and synthetic petroleum (e.g., from tar sands in Canada) CTL, biofuels, electricity (EVs), and hydrogen. Although liquid fuels could be increasingly supplied by low-quality and synthetic petroleum, such as tar sands, due to the sheer size of readily accessible resources and the available technologies to turn such resources into liquid fuel, those fuels have much higher GHG (greenhouse gas) emissions than conventional petroleum, as well as GTL and predicts that this will be a highly significant negative factor in terms of product demand. Currently, production capacity for fossil-based “alternative” fuels is about 2.5 Mbbl/d, of which the largest portion is tar sands and extra-heavy oil production. This, of course, far exceeds present GTL output.
These fossil-based “alternative” fuels now account for only 3% of global oil production but could double within the next 5 years. However, environmental mandates could be a significant force behind growing utilization of GTL for chemical and energy production. Higher-purity transportation fuels, such as ultra-low sulfur diesel, will become mandatory in most jurisdictions. GTL will offer both petroleum refiners and automakers flexibility to meet international agreements. In addition, GTL derived fuel may have a slight GHG emission advantage.
With its broad scope and in-depth analyses, this study will prove to be a valuable resource, particularly for anyone involved with or interested in the synthetic transportation fuels market. It will be particularly useful for researchers, laboratory and government personnel working in research or company settings, as well as business professionals, such as marketing managers, strategic planners, forecasters, new product and business developers, who are involved with most aspects of the liquids fuels industry. It also will be of value to potential investors and members of the general public who are interested in acquiring a business-oriented view of GTL and the synthetic fuels business. The projections, forecasts, and trend analyses found in this report provide readers with the necessary data and information for decision making.
In preparing this report, an overall study of the GTL market was undertaken. All areas of the GTL market are addressed, including identification of current and future technologies, product types, and market segments/end markets. Legislation and government and regulatory agency involvement are analyzed. The producing companies are discussed in light of technological strengths and weaknesses, market shares, marketing strengths, and innovative marketing practices.
This report, which is divided into seven sections, assesses and evaluates the demand and costs of GTL in the chemical and energy production markets. It begins with an overview that describes the importance of the GTL industry in relation to the overall U.S. economy, including a brief history and important indications for the GTL industry. Major products and applications are reviewed, and key findings from the study are presented.
Environmental and energy regulations as they apply to GTL are discussed. The structure of the GTL industry and competitive aspects are analyzed including the driving forces of the industry. Key strategies for staying competitive and important shifts in the industry are assessed. GTL industry trade practices and the impact of GTL on the oil industry are covered.
GTL markets by product type are evaluated, including synthetic fuels and chemicals. These are quantified with forecasts through 2014. Competing markets for gas are discussed including liquefied natural gas (LNG) and natural gas liquids (NGL). GTL technology is presented by covering patents and markets and investments by technology type. These technology types include Shell middle distillate synthesis (SMDS), Sasol slurry phase distillate (SSPD), Exxon’s advanced gas conversion technology 21st Century (AGC-21), Syntroleum process (SP), and Rentech. International GTL aspects also are considered, and major overseas companies involved in GTL processes and their activities also are assessed.
This report:
TABLE OF CONTENTS
Chapter- 1: SUMMARY
MAJOR FINDINGS |
KEY FINDINGS OF THIS STUDY |
SUMMARY TABLE GLOBAL MARKET FORECAST OF PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, THROUGH 2014 ($ BILLIONS) |
SUMMARY FIGURE GLOBAL MARKET FORECAST OF PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, 2007–2014 ($ BILLIONS) |
Chapter- 2: OVERVIEW
TABLE 1 DISTRIBUTION OF WORLD STRANDED NATURAL GAS RESOURCES BY REGION, 2008 (PERCENT DISTRIBUTION) |
CARBON REGULATIONS AND GTL MARKET PROSPECTS |
FACTORS DRIVING ADOPTION OF GTL PROCESSES |
OVERVIEW OF RECENT ACTIVITY |
TABLE 2 KEY EXAMPLES OF GTL DEMONSTRATION PLANTS |
SASOL |
RENTECH |
SYNTROLEUM |
MODEC |
WORLD GTL |
BHP BILLITON |
EXXON |
SHELL |
QATAR AND EGYPT: MAJOR FOCUS FOR GTL PROJECTS |
PROJECT LIST |
TABLE 3 LIST OF PRINCIPAL GTL PLANTS AROUND THE WORLD |
HISTORY OF THE GTL INDUSTRY |
FIGURE 1 GTL PRODUCTION OPTIONS, TRANSPORTATION FUELS, AND CHEMICALS |
TABLE 4 CURRENT WORLD COMMERICAL SYNFUELS CAPACITY (BBL/D) |
TABLE 5 COMPARATIVE MERITS AND DRAWBACKS OF FT |
PRINCIPAL GTL PRODUCTION PROCESSES |
SHELL SMDS |
SASOL GTL PROCESSES |
SASOL CTL PLANTS |
STATOIL AND PETROSA |
RENTECH |
EXXONMOBIL’S ADVANCED GAS CONVERSION |
SYNTROLEUM |
BP PILOT PLANT IN ALASKA |
CHOREN INDUSTRIES |
SYNFUELS INTERNATIONAL |
CANMET ENERGY TECHNOLOGY CENTER - CETC SUPERCETANE TECHNOLOGY |
COMPACT GTL |
LNG MARKETS AND CTL |
COAL TO LIQUIDS |
National Energy Technology Laboratory Study |
Baard Energy CTL Plant |
TABLE 6 OPERATING AND PLANNED LARGE COAL GASIFICATION/CTL PLANTS STATUS AS OF 2008 |
GTL TECHNOLOGIES |
INTRODUCTION |
GTL OUTPUTS |
REFORMING |
Adiabatic Prereforming |
Tubular (or Primary) Reforming |
Advanced Reforming |
Sulfur-Passivated Reforming |
Autothermal Reforming (Catalytic Partial Oxidation) |
Two-Step Reforming or Combined Tubular/Secondary Reforming |
Heat Exchange Reforming |
HYDROGEN SHIFT CONVERSION AND METHANATION |
SHIFT CONVERSION |
METHANATION |
Chapter- 3: INDUSTRY STRUCTURE AND COMPETITIVE DEVELOPMENTS
TIER 1- LARGE DEVELOPERS/PATENT HOLDERS |
BHP BILLITON |
BP |
CHEVRON CORP. |
CONOCOPHILLIPS CO. |
EXXONMOBIL |
IVANHOE ENERGY |
MARATHON OIL CO. |
METHANEX CORP. |
PETROSA |
RENTECH, INC. |
REPSOL |
ROYAL DUTCH SHELL |
SASOL CHEVRON |
SASOL SYNFUELS INTERNATIONAL (SSI) |
STATOIL |
SYNTROLEUM CORP. |
TOTAL |
TIER 2 - COMPONENT AND ENGINEERING SERVICES SUPPLIERS |
ABB LUMMUS GLOBAL GMBH |
AIR LIQUIDE GROUP |
AIR PRODUCTS AND CHEMICALS, INC. |
AMEC PROCESS AND ENERGY, LTD. |
AXENS |
BASF CORP. |
BLACK &VEATCH HOLDING CO. |
CHICAGO BRIDGE AND IRON CO. |
CRYOMECH, INC. |
DELTA HUDSON ENGINEERING, LTD. |
DESCON ENGINEERING CO., INC. |
DOW CHEMICAL CO. |
ELTRON RESEARCH & DEVELOPMENT, INC. |
FLUOR CORP. |
FMC TECHNOLOGIES |
FOSTER WHEELER CORP. |
HALDOR TOPSØE A/S |
INTEGRATED CONCEPTS AND RESEARCH CORP. (ICRC) |
JAPAN OIL, GAS, AND METALS NATIONAL CORP. (JOGMEC) |
JOHNSON MATTHEY CATALYSTS |
KINETICS TECHNOLOGY INTERNATIONAL CORP. (KTI), INC. |
THE LINDE GROUP |
LURGI AG |
MODEC, INC. (MITSUI OCEAN DEVELOPMENT & ENGINEERING CO., LTD) |
NIPPON STEEL |
OXFORD CATALYSTS |
PALL CORP. |
PRAXAIR, INC. |
SIEMENS |
STORK BV |
SYNFUELS INTERNATIONAL |
TECHNIP |
UOP-HONEYWELL |
TIER 3 - DEVELOPMENT STAGE COMPANIES |
ARKENOL |
BAARD ENERGY, LLC |
CARBON SCIENCES, INC. |
COMPACTGTL, PLC |
HYDROGENICS CORP. |
POWER ECALENE FUELS, INC. (PEFI) |
SYNTHESIS ENERGY SYSTEMS |
WORLD GTL |
SCIENTIFIC, GOVERNMENT AND EDUCATION ORGANIZATIONS |
ALASKA NATURAL RESOURCES TO LIQUIDS, LLC |
ALLIANCE FOR SYNTHETIC FUELS IN EUROPE |
ARGONNE NATIONAL LABORATORY (ANL) |
CANMET ENERGY TECHNOLOGY CENTER (CETC) |
DOE OFFICE OF FOSSIL ENERGY |
NATIONAL ENERGY TECHNOLOGY CENTER |
IDAHO NATIONAL LABORATORY (INL) |
INSTITUTE FRANÇAIS DU PETROLE (IFP) |
LEHIGH UNIVERSITY |
NATIONAL RENEWABLE ENERGY LABORATORY (NREL) |
OAK RIDGE NATIONAL LABORATORY (ORNL) |
OFFICE OF INDUSTRIAL TECHNOLOGIES - DOE |
UNIVERSITY OF HOUSTON |
UNIVERSITY OF KENTUCKY |
Chapter- 4: GTL PRODUCT DEMAND FORECASTS
PRODUCT OVERVIEW |
TABLE 7 GLOBAL MARKET FORECAST FOR PRODUCTS PRODUCED VIA GTL WITH COMPARISONS TO CTL AND BTL, THROUGH 2014 ($ BILLIONS) |
TOTAL UNCONVENTIONAL FUELS MARKET |
TABLE 8 PROJECTED GLOBAL UNCONVENTIONAL LIQUID FUELS MARKET, 2005–2014 (MBBL/D) |
GTL-FT FUEL DEMAND BY PRODUCT TYPE |
DIESEL |
GASOLINE |
OTHER GTL PRODUCTS |
TABLE 9 PROJECTED GLOBAL MARKET FOR FT-GTL TRANSPORTATION FUELS BY PRODUCT TYPE, 2007–2014 ($ BILLIONS) |
FT-GTL CHEMICALS DEMAND BY PRODUCT TYPE |
TABLE 10 PROJECTED GLOBAL MARKET FOR FT-GTL CHEMICALS BY PRODUCT, 2007–2004 ($ BILLIONS) |
GTL CHEMICALS PROCESSING |
THE METHANOL MARKET |
METHANOL TO GASOLINE PROCESSING |
GTL PRODUCTS - WAXES |
FUELS THAT WILL COMPETE WITH GTL |
GTL COMPETITORS |
Alaska North Slope Possible for GTL by 2015 |
GROWING GLOBAL LNG DEMAND |
CHANGING LNG PROJECT ECONOMICS |
WORLDWIDE DEMAND FOR NATURAL GAS |
RESOURCE DEVELOPMENT POLICIES - EFFECT ON SUPPLY FOR GTL PLANTS |
COAL-TO-LIQUIDS |
FIGURE 2 FLOW CHART: TWO APPROACHES TO PRODUCING LIQUID FUELS FROM COALS |
CTL PROJECT ECONOMICS |
BIOMASS-TO-LIQUIDS DEVELOPMENTS |
TABLE 11 COMMERCIAL BIOMASS-BASED GASIFICATION PLANTS, 2008 |
BIOFUELS AND RENEWABLE BIOFUELS |
ETHANOL |
BIODIESEL |
OTHER SYNTHETIC CRUDE OILS |
OIL SANDS |
EXTRA-HEAVY OIL |
SHALE OIL |
Chapter- 5: REGULATORY DRIVERS-THE MACRO ENVIRONMENT
EARLY SYNTHETIC FUELS LEGISLATION |
2007–2008 DEVELOPMENTS |
GHGS WILL BECOME A PRIORITY IN LAW AND REGULATION |
STATE INITIAVES RELATIVE TO FUELS’ CO2 EMISSIONS |
FUEL STANDARDS ARE DRIVING THE ADOPTION OF GTL |
EARLIER INITIATIVES |
GOVERNMENT FUNDING FOR GTL RESEARCH AND DEVELOPMENT |
SNYGAS RESEARCH FUNDING VIA THE HYDROGEN FUEL INITIATIVE |
Chapter- 6: RECENT SIGNIFICANT PATENT ACTIVITY
TABLE 12 COMPANIES ASSIGNED MULTIPLE U.S. PATENTS RELATING TO GTL PRODUCTION DURING THE LAST YEAR (NUMBER) |
SELECTED PATENTS |
CONVERSION PROCESS |
HIGH SURFACE AREA, SMALL CRYSTALLITE SIZE CATALYST FOR FISCHER-TROPSCH SYNTHESIS |
PRODUCTION OF ALCOHOLS FROM SYNTHESIS GAS |
AMMONIA PLANT CONFIGURATION AND METHODS |
METHOD AND APPARATUS FOR PRODUCING PRODUCTS FROM NATURAL GAS INCLUDING HELIUM AND LIQUEFIED NATURAL GAS |
METHOD OF GENERATING HYDROCARBON REAGENTS FROM DIESEL, NATURAL GAS, AND OTHER LOGISTICAL FUELS |
PROCESS FOR SYNTHESIZING HYDROCARBONS |
HIGH PURITY OLEFINIC NAPHTHAS FOR THE PRODUCTION OF ETHYLENE AND PROPYLENE |
PROCESS FOR IMPROVING PREREFORMING AND REFORMING OF NATURAL GAS CONTAINING HIGHER HYDROCARBONS ALONG WITH METHANE |
SYNTHESIS GAS AND CARBON DIOXIDE GENERATION METHOD |
PROCESS FOR THE PREPARATION OF A SUPPORTED CATALYST |
PROCESS AND SYSTEM FOR PRODUCING SYNTHETIC LIQUID HYDROCARBON FUELS |
PREPARATION OF TITANIA AND COBALT ALUMINATE CATALYST SUPPORTS AND THEIR USE IN FISCHER-TROPSCH SYNTHESIS |
PROCESS FOR REMOVING ALUMINUM CONTAMINANTS FROM FISCHER-TROPSCH FEED STREAMS USING DICARBOXYLIC ACID |
HYDROGEN RECOVERY FROM HYDROCARBON SYNTHESIS PROCESSES |
PROCESS FOR THE PRODUCTION OF MIDDLE DISTILLATES BY HYDROISOMERISATION AND HYDROCRACKING FEEDS FROM THE FISCHER-TROPSCH PROCESS |
STABILIZED TRANSITION ALUMINA CATALYST SUPPORT FROM BOEHMITE AND CATALYSTS MADE THEREFROM |
RECOVERY OF ALCOHOLS FROM FISCHER-TROPSCH NAPHTHA AND DISTILLATE FUELS CONTAINING THE SAME |
PRODUCTION OF SYNTHETIC TRANSPORTATION FUELS FROM CARBONACEOUS MATERIAL USING SELF-SUSTAINED HYDRO-GASIFICATION |
PROCESS FOR PRODUCING SYNTHESIS GAS FOR THE FISCHER-TROPSCH SYNTHESIS AND PRODUCING APPARATUS THEREOF |
LOW SULPHUR DIESEL FUEL AND AVIATION TURBINE FUEL |
PROCESSES FOR MAKING LUBRICANT BLENDS WITH LOW BROOKFIELD VISCOSITIES |
PROCESS AND APPARATUS FOR THE PRODUCTION OF USEFUL PRODUCTS FROM CARBONACEOUS FEEDSTOCK |
PRODUCTION OF LOW SULFUR, MODERATELY AROMATIC DISTILLATE FUELS BY HYDROCRACKING OF COMBINED FISCHER-TROPSCH AND PETROLEUM STREAMS |
CATALYSTS |
FISCHER-TROPSCH COMPOSITION AND PROCESS |
SUPPORTED CATALYST |
FISCHER-TROPSCH CATALYST PRODUCTION |
PROCESS TO PREPARE A HEAVY AND A LIGHT LUBRICATING BASE OIL |
HYDROPROCESSING METHODS AND APPARATUS FOR USE IN THE PREPARATION OF LIQUID HYDROCARBONS |
SYSTEMS AND METHODS OF IMPROVING DIESEL FUEL PERFORMANCE IN COLD CLIMATES |
METHOD FOR PRODUCING LONG-CHAIN HYDROCARBONS FROM NATURAL GAS |
FISCHER-TROPSCH CATALYST, PREPARATION, AND USE THEREOF |
HOMOGENEOUS MODIFIED-ALUMINA FISCHER-TROPSCH CATALYST SUPPORTS |
BLENDING FOR DENSITY SPECIFICATIONS USING FISCHER-TROPSCH DIESEL FUEL |
OXYGENATE TREATMENT OF DEWAXING CATALYST FOR GREATER YIELD OF DEWAXED PRODUCT |
PROCESS FOR REMOVING CONTAMINANTS FROM FISCHER-TROPSCH FEED STREAMS |
PROCESS TO PREPARE A WAXY RAFFINATE |
PROCESS FOR THE PRODUCTION OF MIDDLE DISTILLATES BY HYDROISOMERISATION AND HYDROCRACKING FEEDS FROM THE FISCHER-TROPSCH PROCESS |
RECEPTION, PROCESSING, HANDLING, AND DISTRIBUTION OF HYDROCARBONS AND OTHER FLUIDS |
PRODUCTION OF HYDROCARBONS |
METHOD AND APPARATUS FOR REGENERATING AN IRON-BASED FISCHER-TROPSCH CATALYST |
PROCESS FOR CONVERTING GASEOUS ALKANES TO LIQUID HYDROCARBONS |
INTEGRATED PROCESSING OF NATURAL GAS INTO LIQUID PRODUCTS |
GAS-TO-LIQUIDS FACILITY FOR FIXED OFFSHORE HYDROCARBON PRODUCTION PLATFORMS |
MODIFICATION OF A METHANOL PLANT FOR CONVERTING NATURAL GAS TO LIQUID HYDROCARBONS |
PROCESS FOR THE RECOVERY OF OIL FROM A NATURAL OIL RESERVOIR |
APPARATUS FOR PRODUCING HIGH MOLECULAR WEIGHT LIQUID HYDROCARBONS FROM METHANE AND/OR NATURAL GAS |
MANAGING HYDROGEN IN A GAS TO LIQUID PLANT |
METHOD FOR CONVERTING NATURAL GAS TO LIQUID HYDROCARBONS |
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