Shell petroleum commercial question

[rfuerst911sc]

I have been seeing Shell commercials touting new technology they are calling GTL ( gas to liquid ). Not too much detail in the commercial but I assume they are working on taking a gas like propane and converting it to a liquid fuel similiar to gasoline. Anyone know what this is all about? Is this a breakthru in technology? So you guys that stayed in a Holiday Inn Express last night please chime in

[id10t]

Darn, I thought this was gonna be about that kick-@zz F-car F1 history commercial going thru all the Big Cities...

[M.D. Holloway]

something I found

Natural gas can be use to produce bulk petrochemicals, including methanol and ammonia, but these are relatively small users of the gas reserves with limited markets. Liquid and other petroleum products are cheaper to transport, market, distribute to large markets. These can be moved in existing pipelines or products tankers and even blended with existing crude oil or product streams. Further, no special contractual arrangements are required for their sale with many suitable domestic and foreign markets.

New technology is being developed and applied to convert natural gas to liquids in gas to liquids technology (GTL). The projects are scalable, allowing design optimisation and application to smaller gas deposits. The key influences on their competitiveness are the cost of capital, operating costs of the plant, feedstock costs, scale and ability to achieve high utilisation rates in production. As a generalisation however, GTL is not competitive against conventional oil production unless the gas has a low opportunity value and is not readily transported.

GTL not only adds value, but capable of producing products that could be sold or blended into refinery stock as superior products with less pollutants for which there is growing demand. Reflecting its origins as a gas, gas to liquids processes produces diesel fuel with an energy density comparable to conventional diesel, but with a higher cetane number permitting a superior performance engine design.[1] Another “problem” emission associated with diesel fuel is particulate matter, which is composed of unburnt carbon and aromatics, and compounds of sulfur. Fine particulates are associated with respiratory problems, while certain complex aromatics have been found to be carcinogenic. Low sulfur content, leads to significant reductions in particulate matter that is generated during combustion, and the low aromatic content reduces the toxicity of the particulate matter reflecting in a worldwide trend towards the reduction of sulfur and aromatics in fuel.

It is technically feasible to synthesise almost any hydrocarbon from any other; and in the past five decades several processes have been developed to synthesise liquid hydrocarbons from natural gas.

There are two broad technologies for gas to liquid (GTL) to produce a synthetic petroleum product, (syncrude): a direct conversion from gas, and an indirect conversion via synthesis gas (syngas)[2]. The direct conversion of methane, (typically 85 to 90 per cent of natural gas), eliminates the cost of producing synthesis gas but involves a high activation energy and is difficult to control. Several direct conversion processes have been developed but none have been commercialised being economically unattractive.

Methanex is working with catalyst producer Synetix, an ICI subsidiary, and engineering firm ABB Lummus Global to develop and commercialise a synthesis gas process.

Shell has carried out R&D since the late 1940s on the conversion of natural gas, leading to the development of the Shell Middle Distillate Synthesis (SMDS) route, a modified F-T process. But unlike other F-T synthesis routes aimed at gasoline as the principal product, SMDS focuses on maximising yields of middle distillates, notably kerosene and gas oil.

Shell has built a 12 000 bbl/day plant in 1993 in Bintulu, Malaysia. The process consists of three steps: the production of syngas with a H2:CO ratio of 2:1; syngas conversion to high molecular weight hydrocarbons via F-T using a high performance catalyst; and hydrocracking and hydroisomerisation to maximise the middle distillate yield. The products are highly paraffinic and free of nitrogen and sulfur.

Shell is investing US$6 billion in gas to liquids technologies over 10 years with four plants. It announced in October 2000, agreement with the Egyptian government for a 75 000 bbl per day (3.8 million tpa) facility and a similar plant for Trinidad & Tobago.

In April 2001, it announced interest for plants in Australia, Argentina and Malaysia at 75 000 bbls/day costing US$1.6 billion.

Exxon has developed a commercial F-T system from natural gas feedstock. Exxon claims its slurry design reactor and proprietary catalyst systems result in high productivity and selectivity along with significant economy of scale benefits. Exxon employs a three-step process: fluid bed synthesis gas generation by catalytic partial oxidation; slurry phase F-T synthesis; and fixed bed product upgrade by hydroisomerisation. The process can be adjusted to produce a range of products. More recently, Exxon has developed a new chemical method based on the Fischer-Tropsch process, to synthesise diesel fuel from natural gas. Exxon claims better catalysts and improved oxygen-extraction technologies have reduced the capital cost of the process, and is actively marketing the process internationally