Small-Scale GTL, A Sustainable Alternative for Production of Transport Fuels in The U.S.
- Oluwatobi Ajagbe (University of Oklahoma) | Rouzbeh Ghanbarnezahd Moghanloo (University of Oklahoma)
- Document ID
- Society of Petroleum Engineers
- SPE Annual Technical Conference and Exhibition, 24-26 September, Dallas, Texas, USA
- Publication Date
- Document Type
- Conference Paper
- 2018. Society of Petroleum Engineers
- 4.6 Natural Gas, 4.3.4 Scale, 5.8 Unconventional and Complex Reservoirs, 5 Reservoir Desciption & Dynamics, 4.6.3 Gas to liquids, 4 Facilities Design, Construction and Operation, 4.6 Natural Gas Conversion and Storage, 5.8.2 Shale Gas, 7.2.3 Decision-making Processes
- Sensitivity Analysis, Transport Fuel, Gas to liquid, Economic and Feasibility studies, GTL
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- 240 since 2007
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This paper examines the utilization of small-scale gas to liquid (GTL) plants for the production of transport fuels using abundant gas production from shale plays in the U.S. It is well-documented that GTL technology can be successfully implemented to convert natural gas to transport fuels. However, our literature is lacking an economic feasibility study of utilizing small-scale GTL plants as an additional stream of income for shale gas producers.
This paper describes two different practical cases detailing field constraints a shale gas producer should overcome to successfully generate additional income through GTL technology in a reasonable time frame. Economic metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), Cost-to-Profit ratio and Payback Period were used to assess the success of GTL technology at each given business case.
For strategic decision making, sensitivity was built into the market drivers such as CAPEX, OPEX, interest rate, efficiency feedstock price, etc., and their level of influence on each economic performance benchmarks were analyzed. Monte Carlo simulation was used to carry out sensitivity analysis in each case to assess the mean and standard deviation of each economic performance metric when the range of possible values of the market drivers were put into consideration.
It is expected that the outcome of this research would guide shale gas producers and private investors when considering a GTL investment to monetize their assets in the United States and beyond.
|File Size||1 MB||Number of Pages||13|
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