As these technologies become ever more widespread, there are concerns about society’s dependence on a single resource -- crude oil. The world is now confronting the issues brought about by this reliance -- primarily its limitations, vehicle emissions on health, and the adverse environmental effects – particularly due to the greenhouse emission carbon dioxide – on climate change.

GTL and the Environment

A Gas to Liquids (GTL) plant produces extremely clean products, mainly middle distillates (diesel factions), for markets traditionally supplied by refineries. Worldwide demand for middle distillates has grown 25% over the last 10 years and shows no sign of slowing down. Compared with conventional oil refining, a GTL plant does not produce the heavier products such as heavy fuel oil and bitumen.

Virtually free of sulfur, nitrogen and aromatics, both in production and usage, GTL products offer significant improvements in air quality, without contributing any further to global warming than existing alternatives.

GTL products are virtually pure paraffinic hydrocarbons that have excellent combustion properties and burn with a smooth, controlled flame. GTL Fuel has a cetane number of 75-80, much higher than the typical refinery diesel range of 45-50. The higher the cetane number, the more complete the combustion and the less waste is produced.

Security of supply

GTL fuel is made from natural gas. This helps reduce the transportation sector’s dependence on oil-based fuels. Additionally, these gas-derived fuels can be obtained from alternative supply locations, such as stranded reserves, as opposed to traditional crude oil sources. GTL production will use gas reserves that are either too large or too remote for traditional means of commercial exploitation – pipeline, Liquefied Natural Gas (LNG), methanol, etc. In that respect, the GTL process offers a viable alternative route to use these large gas reserves.

Natural gas reserves are also larger than oil reserves, when expressed in years of proven reserves: Given forecasts of the rate of development of stranded gas projects, GTL fuel production will continue after crude oil reserves are depleted based on today’s assessment of the life span of crude oil reserves. This is because GTL technology exploits remote gas reserves and not crude oil. Extrapolating from this point, using remote gas to create GTL fuel will extend the lifetime of crude oil reserves accordingly.

Compatibility

Some other alternative fuels require modifications to existing vehicles or the installation of a new fuel distribution infrastructure (filling stations). This may limit their initial usage to dedicated bus and truck fleets that only use a fixed refueling location. However, the compatibility of GTL fuel with standard diesel infrastructure means it can be introduced into a market without the costs of modifying vehicles or installing new infrastructures.

Cost Efficiency

Unlike some other “alternative” fuels, particularly gas-derived products, such as Compressed Natural Gas (CNG), GTL Fuel is compatible with existing diesel engines and distribution infrastructure, and therefore more cost-effective to introduce.