Gas-to-liquids (GTL): A review of an industry offering several routes for monetizing natural gas

Gas-to-liquids (GTL) has emerged as a commercially-viable industry over the past thirty years offering market diversification to remote natural gas resource holders. Several technologies are now available through a series of patented processes to provide liquid products that can be more easily transported than natural gas, and directed into high value transportation fuel and other petroleum product and petrochemical markets. Recent low natural gas prices prevailing in North America are stimulating interest in GTL as a means to better monetise isolated shale gas resources. This article reviews the various GTL technologies, the commercial plants in operation, development and planning, and the range of market opportunities for GTL products. The Fischer-Tropsch (F-T) technologies dominate both large-scale and small-scale projects targeting middle distillate liquid transportation fuel markets. The large technology providers have followed strategies to scale-up plants over the past decade to provide commercial economies of scale, which to date have proved to be more costly than originally forecast. On the other hand, some small-scale technology providers are now targeting GTL at efforts to eliminate associated gas flaring in remote producing oil fields. Also, potential exists on various scales for GM to supply liquid fuels in land-locked gas-rich regions. Technology routes from natural gas to gasoline via olefins are more complex and have so far proved difficult and costly to scale-up commercially. Producing dimethyl ether (DME) from coal and gas are growing markets in Asia, particularly China, Korea and Japan as LPG substitutes, and plans to scale-up one-step process technologies avoiding methanol production could see an expansion of DME supply chains. The GTL industry faces a number of challenges and risks, including: high capital costs; efficiency and reliability of complex process sequences; volatile natural gas, crude oil and petroleum product markets; integration of upstream and downstream projects; access to technology. This review article considers the GTL industry in the context of available opportunities and the challenges faced by project developers. (C) 2012 Elsevier B.V. All rights reserved.