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Author	Topic: South African Company to Build U.S. Plant to Convert Gas to Liquid Fuels	Post a Reply Back to Topics

skb69sa Champion Author San Antonio Posts:3,623 Points:738,100 Joined:Mar 2011	Message Posted: Dec 4, 2012 12:03:41 AM Ignore skb69sa Report Abuse In an ambitious bet that the glut of cheap natural gas in the United States will last for many years, a South African energy company announced on Monday that it would build America’s first commercial plant to convert natural gas to diesel and other liquid fuels. The company, Sasol, which is based in Johannesburg, has been a pioneer in a technology that has tantalized energy scientists for decades over its potential to produce liquid fuels without using oil, which has historically cost far more than natural gas. Having already built smaller plants in South Africa and Qatar, Sasol has designed its new Louisiana plant to produce 96,000 barrels of fuel a day using its “gas to liquids,” or G.T.L., technology. It will be the second-largest plant of its kind in the world, after Royal Dutch Sh Visit NY Times for full article

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In an ambitious bet that the glut of cheap natural gas in the United States will last for many years, a South African energy company announced on Monday that it would build America’s first commercial plant to convert natural gas to diesel and other liquid fuels.

The company, Sasol, which is based in Johannesburg, has been a pioneer in a technology that has tantalized energy scientists for decades over its potential to produce liquid fuels without using oil, which has historically cost far more than natural gas.

Having already built smaller plants in South Africa and Qatar, Sasol has designed its new Louisiana plant to produce 96,000 barrels of fuel a day using its “gas to liquids,” or G.T.L., technology. It will be the second-largest plant of its kind in the world, after Royal Dutch Sh
Visit NY Times for full article

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LetemEatCake Champion Author Oklahoma City Posts:5,667 Points:1,229,200 Joined:Mar 2008	Message Posted: Dec 5, 2012 11:22:53 PM Ignore LetemEatCake Report Abuse A Win-Win for all!
remay Champion Author Houston Posts:7,078 Points:2,143,665 Joined:May 2006	Message Posted: Dec 5, 2012 5:55:31 AM Ignore remay Report Abuse .... it takes a SA company to build a plant in the USA???
DanMtz Champion Author Oakland Posts:3,491 Points:1,270,050 Joined:Oct 2009	Message Posted: Dec 4, 2012 8:02:02 PM Ignore DanMtz Report Abuse Sounds like a good idea.
heydano67 Champion Author California Posts:1,806 Points:385,235 Joined:Feb 2012	Message Posted: Dec 4, 2012 4:09:47 PM Ignore heydano67 Report Abuse Sounds good, but how low does NG need to be to keep it profitable, or how high do gas prices need to be
ss70 Champion Author Detroit Posts:9,930 Points:1,897,100 Joined:Sep 2005	Message Posted: Dec 4, 2012 12:17:42 PM Ignore ss70 Report Abuse good for US
eschroth442 Champion Author Cleveland Posts:1,196 Points:358,490 Joined:Nov 2011	Message Posted: Dec 4, 2012 9:12:41 AM Ignore eschroth442 Report Abuse Look a company is using a cheap natural reasource to produce other things. And they are from another country.
zwsn01 All-Star Author Alabama Posts:692 Points:465,070 Joined:Jan 2012	Message Posted: Dec 4, 2012 8:27:19 AM Ignore zwsn01 Report Abuse At least someone is betting on USA gas.
MAC48 Champion Author Dallas Posts:1,580 Points:788,525 Joined:Dec 2006	Message Posted: Dec 4, 2012 5:20:56 AM Ignore MAC48 Report Abuse If Sasol thinks that the gamble is worth taking, why not give it a shot. You can bet that there will be more discoveries of recoverable shale oil and natural gas in the coming years and a favorable national administration change in 2017 would accelerate these discoveries. What would really be exciting would be a technological breakthrough that would allow coal to be converted to natural gas, natural gas liquids or gasoline/diesel that is both economically justified and practical. Now that would be an absolutely amazing development since the US has such massive deposits of coal.
TIGERPAW46 Champion Author Florida Posts:7,241 Points:1,379,620 Joined:Mar 2004	Message Posted: Dec 4, 2012 5:02:39 AM Ignore TIGERPAW46 Report Abuse Why is it so often a foreign company development in the USA instead of an American based company? Oh that's right maybe this from the article helps explain it. ""The state encouraged the project with more than $2 billion worth of tax credits and other incentives... The track record for the technology, conceived by German scientists in the 1920s, is not encouraging, mainly because of a history of construction cost overruns... Profits have been elusive for the technology. To make it work financially, natural gas prices must remain low and prices for oil, diesel and jet fuel must remain high for a prolonged period... In the United States, various companies have plans to build natural gas export terminals and promote more use of compressed natural gas for vehicles, as is done in many countries like Pakistan, Iran and Argentina."" It goes on to say Diesel would have to stay above $4.00/Gal at today's low nat gas prices. So I guess that tells you the country doesn't plan on slowing the gasoline & diesel escalating prices.
Mark8601 All-Star Author Bakersfield Posts:929 Points:397,035 Joined:Dec 2011	Message Posted: Dec 4, 2012 4:33:58 AM Ignore Mark8601 Report Abuse what a mess
humblepie Champion Author Toledo Posts:35,324 Points:2,399,070 Joined:Mar 2006	Message Posted: Dec 4, 2012 4:04:45 AM Ignore humblepie Report Abuse until the natgas price spike
iFueler Champion Author Durham Posts:65,033 Points:206,000 Joined:Nov 2012	Message Posted: Dec 4, 2012 1:36:51 AM Ignore iFueler Report Abuse as others have said, where will it go... worldwide market?
RENEGADEGAS Champion Author Missouri Posts:15,069 Points:1,618,825 Joined:Jul 2008	Message Posted: Dec 4, 2012 1:28:06 AM Ignore RENEGADEGAS Report Abuse Id say this is an ambitious bet alright. Theres only 100 years of natural gas left in the US under last years consumption rate. The more we extreact and the more things we convert to natural gas the quicker the supply will be exhausted. The lower the supply goes, the higher the price guarunteed.
TBONE3 Champion Author Pennsylvania Posts:8,881 Points:2,004,125 Joined:Mar 2005	Message Posted: Dec 4, 2012 1:21:43 AM Ignore TBONE3 Report Abuse About time. Why did it take a South African company to do it HERE? No Chemists or Scientists here?
Sneakers55 Champion Author Houston Posts:51,849 Points:2,168,625 Joined:Nov 2005	Message Posted: Dec 4, 2012 1:13:49 AM Ignore Sneakers55 Report Abuse Used to have Sasol stock in my IRA, but when I turned it over to an advisor they sold it.
DirtDauber Champion Author San Antonio Posts:6,922 Points:1,655,160 Joined:Nov 2005	Message Posted: Dec 4, 2012 1:12:33 AM Ignore DirtDauber Report Abuse Wonder why this took so long?
granitestater Champion Author New Hampshire Posts:8,980 Points:1,458,450 Joined:Oct 2008	Message Posted: Dec 4, 2012 1:10:20 AM Ignore granitestater Report Abuse The products don't have to stay here. As exported goods will help the trade imbalance. Excessive imports dilute the value of the dollar. Any exports will reduce the stress on the dollar.
Bruno44 Champion Author Texas Posts:7,217 Points:1,795,895 Joined:Sep 2007	Message Posted: Dec 4, 2012 1:08:20 AM Ignore Bruno44 Report Abuse Good point by defiancegasman.
defiancegasman Champion Author Ohio Posts:7,099 Points:1,327,520 Joined:May 2006	Message Posted: Dec 4, 2012 1:05:02 AM Ignore defiancegasman Report Abuse As long as the plant is TAXED by the USA and the products stay in AMERICA for our use!
ToolinIt Champion Author Colorado Posts:1,805 Points:912,135 Joined:May 2010	Message Posted: Dec 4, 2012 12:58:28 AM Ignore ToolinIt Report Abuse Probably, the end product will be totally exported out of the U.S. as are all other petro products. U.S. refineries are only focused on max profits and could care less about fuel prices for Americans. [Edited by: ToolinIt at 12/4/2012 12:59:48 AM EST]
Buddy2264 Champion Author Tampa Posts:11,797 Points:2,387,670 Joined:Oct 2005	Message Posted: Dec 4, 2012 12:55:04 AM Ignore Buddy2264 Report Abuse I hope it is successful and we see a change the the way fuels are produced. However I hope those fuels do not just get shipped away to the highest bidder, which is seems like will happen, the same with gasoline.
1Casey Champion Author Albany Posts:6,636 Points:1,811,170 Joined:Jun 2004	Message Posted: Dec 4, 2012 12:54:42 AM Ignore 1Casey Report Abuse don't like
Mowerman08 Champion Author Milwaukee Posts:4,878 Points:1,243,255 Joined:Aug 2008	Message Posted: Dec 4, 2012 12:50:10 AM Ignore Mowerman08 Report Abuse Does this qualify as the first new refinery in 25 years.
lunarrv15 Champion Author Cincinnati Posts:15,063 Points:2,410,085 Joined:Dec 2005	Message Posted: Dec 4, 2012 12:45:56 AM Ignore lunarrv15 Report Abuse okay..interesting thanks for posting GB blog
jorod55 Champion Author California Posts:1,612 Points:458,450 Joined:Dec 2011	Message Posted: Dec 4, 2012 12:45:30 AM Ignore jorod55 Report Abuse I say keep the plants smaller and have more of them to handle the gas more efficiently. Then if a plant fails it doesn't wipe out a third or half of its supply product.
must87searcher Champion Author Maryland Posts:9,120 Points:1,807,360 Joined:Apr 2008	Message Posted: Dec 4, 2012 12:44:50 AM Ignore must87searcher Report Abuse This idea does make sense. Hope it works out alright.
rtw777 Champion Author Florida Posts:9,531 Points:1,869,470 Joined:Jan 2008	Message Posted: Dec 4, 2012 12:44:33 AM Ignore rtw777 Report Abuse Four years ago an American company would be doing these.
Kawibiker Champion Author Illinois Posts:1,221 Points:215,465 Joined:May 2012	Message Posted: Dec 4, 2012 12:44:22 AM Ignore Kawibiker Report Abuse Go for it, and Get er done!
FortVancouver01 Champion Author Washington Posts:1,247 Points:312,315 Joined:Jul 2012	Message Posted: Dec 4, 2012 12:35:20 AM Ignore FortVancouver01 Report Abuse Sounds like some positive technology. Hope it is successful.
RAE344 Champion Author Virginia Beach Posts:3,207 Points:688,245 Joined:Jun 2011	Message Posted: Dec 4, 2012 12:29:30 AM Ignore RAE344 Report Abuse First step to exporting our supply of natural gas and causing the price to go sky high.
cheapchickKY Champion Author Lexington Posts:4,159 Points:823,990 Joined:Jan 2011	Message Posted: Dec 4, 2012 12:08:30 AM Ignore cheapchickKY Report Abuse Interesting.