Thursday January 19, 2006

GTL and LNG in Qatar

peakoil.com -> iht.com :

Even as geologists fiercely debate whether depleting oil fields can satisfy intense demand for oil in the rising economies of Asia, the actions of the international energy industry may speak louder than words. One venture between ExxonMobil and Qatar Petroleum is expected to require $7 billion, making it the single largest investment in ExxonMobil's history. Qatar has attracted the largest projects thanks to its plentiful natural gas reserves and an aggressive investment strategy that builds on a longstanding cultivation of American and European energy companies.

Gas-to-liquids [GTL] essentially transforms natural gas into diesel liquid that can be transported and sold using existing tankers, refineries and gas stations. Energy analysts say gas-to-liquid plants become competitive when oil prices climb above $30 to $35 a barrel. The fuel might also attract a premium in countries looking for alternatives that reduce toxic diesel emissions. Methods of producing it have already gone through several incarnations. Nazi Germany during World War II developed methods to convert coal gas into synthetic fuel for its army. Decades later, apartheid South Africa adapted methods to convert coal, which was plentiful, into liquid fuel to survive economic isolation.

The liquefied natural gas [LNG] industry in Qatar is much different from the wager on technology to convert gas to liquids. Liquefied natural gas is extremely complex to transport, requiring an elaborate system of cooling plants near gas deposits, double-hulled tankers and reheating facilities in the markets where the fuel is consumed. Liquefied natural gas is largely used to generate electricity. Only Russia and Iran are believed to have more natural gas than Qatar, which is positioned to soon become the largest exporter of liquefied natural gas.

- Confused yet? We have GTL, LNG, CTL, CTG, and CBM : gas-to-liquids, liquefied natural gas, coal-to-liquids, coal-to-gas, and coal-bed methane, respectively. As conventional oil supplies peak and start to decline, you will hear of many more stories such as these as humanity struggles to come up with non-conventional alternatives.

See also :

1. Natural gas powers Qatar boom
2. Coal-to-liquids
3. Coal offers hope of new gas supplies
4. Clean energy from coal bed gas

(2006-01-19 11:59:44 SGT) [Energy] Permalink

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