Saturday, October 31, 2009

Liquid Fuels - Plan "B"

Tim Bradner of the Alaska Journal Commerce has this story (LINK) about Richard Peterson's, (President of Alaska Natural Gas-to-Liquids Co.) ideas on an Alaska Gas-to-Liquids (GTL) plant.

If lower 48 shale gas really has closed the door on arctic gas transportation projects (I'm not ready to believe that), then we need to get cracking on plan "B".

A GTL plan could include an in state gas line to feed it, and gas feeds to other existing industries (LNG and Ammonia), feeds to power generation and residential heating.

(LINK to March 2008 blog post on GTL)

The shale gas industry is young but it looks like shale gas can't be produced, on average, for less than $4/MMBTU (Henry Hub). I invite Mr. Peterson to present a comparative profitability analysis of a GTL plant in a range of $3/MMBTU to $10/MMBTU.

Bottom Line - Gas Line, LNG, or GTL - You choose, but if you snooze - you lose!


Brett Chandler said...

I have to say, this is a very interesting idea, particularly if a GTL plant were built as a cogen for power.

Not only could this work for Alaska, but I could see a similar (but smaller) plant in the Yukon.

GTL has a lot of potential, and I know Shell is doing a lot of research on it. As we move toward more of a "natural gas economy", it makes more and more sense.

Anonymous said...

Synfuels Internation Inc., has a low cost solution for GTL Plants in Alaska. Here is their website;

Music Station said...
This comment has been removed by a blog administrator.