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CANADA:
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Construction Impacts On Northern Transp."-Transport Canada-PROLOG Canada
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CBC Archives, Berger Commission;
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FirstEnergy Analysis: 10-19-01;
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LEST WE FORGET!
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Northern Gas Pipelines: GTL News and Reference
The little
publicized or appreciated 6th Natural Gas Conversion Symposium
convened at the spectacular Alyeska Prince Hotel property in Girdwood, Alaska
from June 17-23, 2001, with 300 specialists representing corporate, academic and
governmental programs throughout the world. A small sampling of the many
presentations herein leads one to conclude that energy markets are on the brink
of accepting gas-to-liquid (GTL) technology as a respected competitor among
economically viable energy alternatives. While fully transforming GTL
development from the laboratory (and current pilot projects) to the market place
may not occur within the timeframe for the first Alaska North Slope (ANS) gas
project, it will likely provide a means for transporting future ANS gas reserves
to market via the Trans-Alaska Oil Pipeline. If stakeholder consensus on an
overland gas pipeline or LNG project cannot be achieved in the 2001-2004
timeframe, GTL may very well be the technology employed to commercialize the
gas later in this first decade of the century. -dh (8-5-01)
Page contents below:
1. 6th Natural Gas Conversion Symposium
2.
References to Current, Alaska GTL Activities
3. GTL
news
4. Roland R. George, Purvin & Gertz: "Monetizing Stranded Alaska Gas: Focus on GTL," 2001
1. Highlights of
6th Natural Gas Conversion
Symposium ...
(Obtain free presentation documents here):
a. "Chairman's Address": Dr. Theo H.
Fleish, Global Gas Technologies, BP. "... My proposal to hold the
6th NGCS in Alaska was greeted with strong support by the membership because
of both the opportunity to visit this unique and beautiful country and because
of the emerging importance of Alaska's vast natural gas resources for all gas
monetization options including gas conversion.... Natural gas conversion is
the basis of a large and important industry today. More than 4 TCF of gas are
annually converted into products such as hydrogen for refineries and ammonia
for fertilizer (See Agrium reference below, in 6-17-01 news item.). ...
Natural Gas Conversion to liquid fuels, fuel additives, chemicals, polymers
and many more consumer products will benefit the customer
through new, cleaner and lower cost products, the environment
through lower global greenhouse gas emissions and lower local exhjaust
emissions, and the gas resource holder through more and
higher value gas utilization options.
b. "A DOE Perspective on Natural Gas":
Rita A. Bajura, Director, National Energy Technology Laboratory,
DOE. "Gas-to-liquids is a three-step process: syngas production,
Fischer-Tropsch synthesis, and product upgrading.... Interest is growing in
gas-to-liquids technology as a means to monetize stranded gas, access new
markets, and generate clean fuels. Advances in technology that lower capital
costs are making gas-to-liquids more economically feasible. Gas-to-liquids
technology is especially important to Alaska. As much as 100 Tcf of natural
gas may reside on Alaska's North Slope. Gas-to-liquids technology may provide
a means to bring this gas to market and, at the same time, extend the life of
the Trans-Alaska Pipeline System. The gas may also be transported through a
proposed new natural gas pipeline. ..."
c. "GTL, How to Stay in Business", MOSSGAS
Presentation. This 'slide only' presentation effectively highlights the
challenges of MOSSGAS' Mossel Bay, South Africa project to produce and convert
natural gas and condensate to transportation fuels and alcohols (i.e.
excellent quality unleaded gas, low aromatic content kerosene, ultra low
sulphur diesel). The project is wholly owned by the government, with a staff
of 1,000. To deal with high project costs, managers deal with market
volatility by hedging (i.e. buying puts and selling calls of crude futures.)
d. BP presentations:
"Welcome Address": Richard Campbell,
Regional President, BP Alaska. "... BP believes that this option (i.e.
overland gas pipeline) will return the highest value for all stakeholders
and land natural gas in Lower 48 markets at a cost that will make it
competitive with other supply sources. ... But what about gas-to-liquids?
BP believes the potential market for GTL is huge. We think 25 world-scale
plants could be commissioned by 2015. Graham NcNeillie will be providing an
overview.... We are well under way with construction of
our $86
million GTL plant in the Nikiski area of the Kenai Peninsula. ... With
construction of this plant, a major portion of BP's global GTL program has
now shifted to Alaska. The plan is to start up in the first half of 2002
and produce 300 barrels of syncrude per day from 3 million cubic feet of
gas. More importantly, this facility will test the compact reformer
technology developed by BP and our partner Kvaerner. We have high hopes
that this technology will achieve a step change in GTL costs.... We are
also confident the industry at large will continue to develop technology
that will make GTL a growing busines in the years ahead. I'm often asked if
BP is planning to build a commercial GTL plant in Alaska. GTL is one of
three options we are evaluating, along with a gas pipeline and LNG.
Certainly the pipeline option is farthest along...."
"The Role of Gas Conversion in the Gas
Economy", Graham McNeillie, Vice President, Global Gas
Technologies, BP. "The world's plentiful gas supply sources, continued
technological innovation, the desire for less carbon-intensive fuels, and
the need for cleaner air in urban areas, will continue to ensure an increase
in importance of natural gas to the development of world, regional and
country economies. Looking into the future one can now envision an economy
powered principally by natural gas. This Gas Economy would be
supplied from a truly global market consisting of large gas reservoirs
geographically spread but linked to consumers by such options as gas
pipelines and LNG but also by large tankers carrying liquid or solid
products manufactured from gas via gas conversion. In this gas world, the
role of natural gas conversion is to not only provide another option to
monetize gas for existing markets, but also to create new markets. The
opportunity presented by gas conversion is enormous.
e. "Welcome Address", Michael P.
Rampage, Executive Vice President, ExxonMobil Research & Engineering
Co. "...we at ExxonMobil are advancing technologies for 1. improved LNG
production, processing, and delivery, 2. the development of high-strength and
more economic steel for use in gas pipelines, and 3. advanced technology for
converting natural gas-to-liquids, to name just a few. ... In the United
States, ExxonMobil is studying the potential for developing Alaska's North
Slope gas resources. We are hopeful we can bring that gas to market via a
pipeline to the Lower 48 states. ExxonMobil has devoted a significant amount
of technical and financial resources (over $110 million) on direct efforts to
commercialize the gas on Alaska's North Slope. This does not include the cost
of research to develop technologies that could be applied at multiple
locations. We have developed a good understanding of potential GTL and LNG
options to commercialize Alaskan gas, and with the improving market for gas in
the Lower 48, it is appropriate that we examine the pipeline option.
On December 6, 2000, the
three major Alaska North Slope gas producers (ExxonMobil, BP, and Phillips)
announced a joint work program to evaluate and progress an Alaska Gas Pipeline
Project. The key program activities over the coming months will involve
conceptual design, project costing, environmental considerations, commercial
structure, and assessment of overall viability. At this stage it is important
to consider the costs, benefits, and environmental impacts of all potential
routes in order to identify the best project. It is essential that an eventual
project be economically viable and competitive with other potential gas
supplies. We are also working to better understand which is the
environmentally preferred route, considering length, footprint, local
environmental sensitivities, and other factors. Regarding Gas-to-Liquids, we
believe this is an important option for commercializing stranded gas, and
ExxonMobil has been a leader in the development of new technology. As a result
of the merger we were able to combine Exxon’s high performance slurry
Fischer-Tropsch technology with Mobil’s advanced catalytic wax upgrading
technology to provide ExxonMobil with industry leading GTL capability;
AGC-21 produces clear,
versatile liquids that will bring market value as high quality, low-emissions
fuels, lube basestocks, and petrochemical feedstocks, and you will be able to
hear more about our work in coming presentations. ExxonMobil’s technology is
ready and we believe that it is economic in the right circumstances.
ExxonMobil plans to continue its research efforts to further improve the
technology and is considering the best location to use that technology. As
noted in our annual report, we are actively exploring the opportunity to apply
this proprietary Gas to Liquids technology by developing a world-scale GTL
plant in Qatar.
2. References
to current, GTL activities with Alaska implications (See
Remote Gas
Strategies):
a. Alaska Natural Gas to
Liquid (See ANGTL web page) executive,
Richard Peterson, has devoted his company and personal resources to communicating the benefits of "clean diesel" to North Slope natural gas decision makers.
b.
BP has developed what may
be a break-through in technologies which convert natural gas directly into
high-value liquid fuels and other products such as petro-chemical feedstock.
c.
Chevron and Sasol
signed an agreement to create a new global joint venture founded on
gas-to-liquids (GTL) technology. The agreement, signed on June 9 in
Johannesburg, South Africa, is a very promising prospect for the development
of clean fuels.
d.
GTL Fact Sheet: "Discussions are
underway to develop a GTL production facility in Alaska to produce 40,000
barrels per day (23% of our current demand) with a goal to produce 300,000
bbl/d. However, with existing technology, oil pipeline capacity and North
Slope gas reserves over 1,000,000 bbl/d could be produced.... Since the
late-1990s nearly every major oil company including: ARCO, Chevron, Conoco,
Exxon, Phillips, Mobil, Statoil, and Texaco announced plans to build pilot
plants or commercial plants to produce synthetically derived diesel fuel
through the improved GTL process." (See current news updates below,
and elsewhere in the archives.)
e.
Benefits of
GTL technology:
Monetizing gas reserves. GTL has the potential to convert a
significant percentage of the world’s estimated proved and potential gas
reserves – estimated to be upwards of 14,000 TCF of natural gas – which
today hold little or no economic value, into several hundred billion
barrels of oil equivalent of great economic value to the companies and
countries that control them. Eliminating costly or environmentally
disadvantageous practices. GTL will help eliminate the need for
flaring or reinjecting natural gas, permitting early development and
production of oil fields shut in by the inability to dispose of associated
gas and reducing the negative environmental impact of flaring.
Economic development of remote gas. GTL will permit the economic
development of many remote gas discoveries that are otherwise deemed too
far from market to have any economical value. Development of
Environmentally-Superior Liquid Fuels. GTL will yield synthetic
hydrocarbons of the highest quality that can be used directly as fuels or
blended with lower quality crude oil derived fuels to bring them up to
compliance with more stringent environmental and performance
specifications. Syntroleum is currently pursuing the development of such
fuels with a number of parties, including DaimlerChrysler and Southwest
Research Institute to test several of its fuels for certification with the
EPA. The company is also working with Argonne National Laboratories and
others to develop GTL fuels for use in reformers for fuel cells.
f.
Purvin & Gertz produces this study addressing the feasibility of a North
Slope GTL plant with TAPS transportation to Valdez vs. a "South Shore"
tidewater conversion plant receiving throughput from a feeder line
connecting with an Alaska Highway gas pipeline project.
g. Sand Creek Energy
is developing a plan to convert the methanol plant into what could be the
first Gas-to-Liquids plant in the United States which would supply
commercial quantities of high value fuels including cleaner burning sulfur
and aromatic free diesel fuel, fuel which could be used for fuel cells and
other high value products made from natural gas.
3.
GTL news:
1-27-03.
ADN-Wesley
Loy reports on success and potential of BP's Alaska GTL project (Part
II of gas trilogy.
See part I). See
PNA report by Kay Cashman.
2-21-02. Speaking
at the Pac Com Expo in
place of Shane O'Leary,
BP's GTL program manager, BP's Kenai GTL Project,
Steve Fortune (Photo) said the Nikiski facility is 93% complete and will
be finished by April after a year's construction. Producing "clean
diesel", the project will reflect the latest computer control technology and was
designed for a 5 year life. Via the internet, experts from all over the
world will be able to assist the facility with problem areas and optimizations.
The new facility will also host a prototype, 250KW fuel cell powering the
offices, yard, warehouse...and, surplus supplies for the local electric grid.
Ninety-seven percent of the facilith's water use will be recycled. He said
new ideas and new technology are "bubbling" and that there are more innovations
ahead. Forty of the $86 million spend on the facility was spent in Alaska,
he said. The project has employed 220 construction workers and envisions
20 permanent staff members.
8-23-01. Alaska Highway Natural Gas Pipeline Policy Council, Valdez. (Obtain presentations here.)
- Richard Peterson: Alaska Natural Gas to Liquids.
- Shane O'Leary, BP's GTL program manager, BP's Kenai GTL Project.
NIKISKI--A
state of-the-art power generation system designed to increase elec trical
efficiency and
reduce emissions will be demonstrated at BP's gas-to-liquids (GTL) test
facility. The technology could have far-reaching implications for power
generation in remote areas like villages in rural Alaska. The U.S.
Department of Energy is providing funding assistance with a $2 million grant
requested by U.S. Senator Ted Stevens. Chugach Electric Association also
secured and will administer a $450,000 grant from the Cooperative Research
Network of the national Rural Electric Cooperative Association. The fuel cell
will be connected to the local electrical grid operated by Homer Electric
Association to study operating characteristics and costs.
BP will install a Siemens
Westinghouse "solid oxide fuel cell" unit that will convert natural gas
directly into electricity through an electrochemical process similar to that
used in a battery. With few moving parts, it runs quietly, and it
significantly reduces air pollution. The $6.5 million project will begin
operating by mid-2003. "This technology isn't commercial today, but we
believe it has tremendous potential, both for BP and for the State of Alaska,
and this project will help to accelerate commercialization," said
Shane O'Leary, BP's GTL program manager. "It may be very attractive
for future use in remote and environmentally sensitive locations like offshore
oil and gas platforms, as well as areas of rural Alaska that rely on diesel
fuel for power generation." BP's nikiski fuel cell project will use natural
gas as feedstock. it will generate 250 kilowatts of electricity--roughly the
consumption of 50 average homes--and power the warehouse and administration
building at the GTL facility. The technology eventually could be applied to
enhance electrical efficiency with any hydrocarbon fuel, including diesel.
The unit operates at an electrical efficiency of 45%, compared to about 30%
for diesel generation. Total energy efficiency can be increased to more than
70% by capturing and using heat produced in the process. It also reduces
carbon dioxide emissions by more than a third from an equivalently sized
diesel generator and virtually eliminates emissions of other pollutants
prevalent in generation systems that rely on combustion, including carbon
monoxide, nitros oxide, sulfur oxide, particulates and volatile organic
compounds. BP's $86 million GTL demonstration plant is designed to test
proprietary technology developed by BP and Kvaerner to convert methane into
high-quality, sulfur-free synthetic crude oil.
8-4/5-01 Weekend:
This week, non-oil industry sources told
Northern Gas Pipelines that new technology is making the gas-to-liquid
(GTL) natural gas conversion process increasingly viable. Companies are
achieving breakthroughs in reducing cost of production for this 'clean
diesel'. Leading energy companies--some with Alaskan and Mackenzie Delta
operations--are developing/improving new technologies. Several new GTL plant
construction projects could be initiated within 3 years. One major attraction
of GTL conversion is that it enables stranded gas reserves to be transported
to market through existing oil pipelines, avoiding complexities attending the
permitting, regulation and operation of new gas pipeline systems. This news
caused us to review substance of presentations delivered during the
6th Natural Gas Conversion Symposium convened at the spectacular
Alyeska Prince Hotel property in Girdwood, Alaska from June 17-23, 2001.
We summarized several key presentations for your evaluation, here on our GTL
page.
6-17-01. Lieutenant Governor Fran Ulmer
addressed the Natural Gas Conversion Symposium conference this week in
Girdwood, saying that much of the discussion focused on gas-to-liquid
technology. (Photo: Lieutenant Governor Fran Ulmer
attending Natural Gas Pipeline Policy Council presentation at
Agrium's
Kenai Nitrogen Operation with Agrium's Lisa Parker and
Council Member Jack Roderick. 5-17-01) "Experts from
around the world have gathered in Alaska to share research results and
scientific studies of this promising source of clean fuels for the world's
energy hungry population," she said.
"Alaska is particularly likely as a candidate for such a facility because of
our proximity to a high demand market for clean diesel (California) and
because the product could be transported down the existing oil line (batched
or in suspension)." According to Ulmer, "That could add to the useful life of
that line and in turn make the development of marginal oil more likely." (Photo:
Two participants enjoying the technical program and scenery at Girdwood's
Alyeska Prince Hotel this week, were Ad R. Punt-left,
Shell Global Solutions' Business Manager Gas, from The Hague and his
colleague, Dr. Arend Hoek, Shell's Principal Researh
Technologist, from Amsterdam.
Program information here. )
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