CER Limited ~ Capital Energy Resources

Gas Monetisation and Fischer-Tropsch (FT) Gas-to-Liquids (GTL)

GTLThe monetisation of natural gas presents significant challenges and opportunities for the gas owner and for a host of other stakeholders including the local population, numerous Government entities and different technology providers. Gas owners will choose commercially attractive options based largely on technology cost and associated risks. Governments on the other hand focus on converting such future wealth into social, economic and political benefits that commence today, and are deployed and maintained in a way that will significantly benefit the country and its citizens well into the future.

There are several commonly used gas monetisation options including pipelines, power, chemicals, LNG and some less widely used monetisation options including GTL which might in certain situations presents a significant commercial opportunity. The principals of CER and their associates have during the last decade been directly and indirectly involved in the development of numerous CTL / GTL projects from early screening and pre-feasibility, CTL through feasibility and front-end engineering and design to final investment decisions, project execution, start-up and operations. These projects include Coal-to-liquids (CTL) projects in China and India, as well as Gas-to-Liquids (GTL) projects in Algeria, Australia, Canada, Nigeria, Qatar, Russia, Trinidad & Tobago, USA, Uzbekistan and Venezuela. In most instances, the relative value of other gas monetisation options including LNG, Methanol (MeOH), Dimethyl Ether (DME), Methanol-to-Olefins (MTO), Methanol-to-Gasoline (MTG), and Ammonia (fertilizers) are assessed in term of product and market attractiveness, technology attractiveness, economic attractiveness and overall business strength to fully understand the range and impact of different gas monetisation options.

In respect of Oryx GTL and Escravos GTL, the principals of CER and their associates have directly or indirectly managed all aspects of an upstream integrated or downstream standalone GTL business including: manpower planning, capital project execution, technology selection and supply, technology licensing, catalyst sales, diesel, naphtha and LPG product marketing, plant operations and maintenance, project and business risk management, Government liaison, tax compliance, health and safety and legislative adherence. GTL technology CER is experienced in GTL strategy development, enhancing the GTL value proposition relative to other gas monetisation options (LNG, Methanol, etc.), developing country cost benefit analyses, and in modelling / evaluating project investment decisions hand in hand with assessment of the project risks. In all of these areas CER is able to lead or support commercial negotiations across the full suite of GTL commercial agreements.

In addition to providing the commercial advisory and training services described above, CER together with its partners is also actively seeking to commercialise small scale modular GTL technology – up to 100-500 bbl/day – where there is a specific value proposition related to the production of power and diesel in remote areas of the world – preferably where there is local demand for power and diesel and smaller volumes of gas are readily available and / or are being flared. CER would be interested in discussing these GTL commercialisation opportunities with interested gas owners or “small scale” power/diesel consumers operating in remote regions e.g. mines and invite all companies or individuals with a specific interest and expertise in this area to contact us to see if there is more that can be done together.