What is GTL?

GTL or Gas to Liquids technology is the chemical process by which natural gas is converted to liquid products such as diesel or methanol.

GTL Process

The reactions occur in phases, and the key to all GTL processes is the intermediary product Syngas. Syngas has the chemical composition to be easily refined into a variety of useful liquid products. Traditionally the bulk of capital investment for GTL plants has been for the first part of the reaction which produces Syngas. Dason's goal is to significantly improve this step by increasing efficiency and decreasing plant size and costs.

Why GTL?

An Alternative and Supplement to Crude Oil

The world demand for oil is growing at a rapid pace, while the world supply of oil is limited. As more oil is extracted production costs rise due to the rapid usage of land based and shallow water oil supplies and increasing substitution for more expensive sources such as oil sands, heavy oil, and deep water oil. The price of oil is not only sensitive to market economics, but also to geopolitical factors. The world supply of natural gas on the other hand is largely untapped, and could be used to supplement and extend the supply of crude oil. Recent discoveries of immense natural gas deposits, and technological innovations allowing for the extraction of shale gas likely will keep the price of gas low for the foreseeable future.

Developing Untapped Markets

Currently natural gas reserves must be near a pipeline, or facilities where it can be compressed or converted into LNG (liquefied natural gas) in order to be transported. Such infrastructures are capital intensive and only economically feasible for large gas deposits, and are unsuitable for gas located in remote areas or deepwater platforms. When drilling for oil under these conditions, natural gas pockets that are uncovered are frequently flared, or burned. This is not only a waste of a precious resource, but is a source of pollution and fines. As of 2007, the World Bank estimated that $30 billion worth of gas is still being flared annually. In addition there exists an estimated 3000 TCF (proven + probable + possible), as much as 40% of the world's gas supply, considered "stranded" and left undeveloped.

Profitability

GTL technology directly impacts a company's bottom line, by allowing it to convert unused gas assets into cash flow and revenue. The economics of gas and crude oil prices also make GTL operations extremely profitable and desirable.

Clean Fuel Focus

Fuels produced from GTL are significantly cleaner than those refined from conventional crude oil. GTL fuels contain only a fraction of the pollutants of conventional diesel, and can be mixed with refined crude products to create clean fuels that meet rising governmental emissions standards. In addition the potential to reduce green house gas emissions and air pollution from flaring has made GTL one of the most sought after technologies.