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Author Topic: South African Company to Build U.S. Plant to Convert Gas to Liquid Fuels Back to Topics
skb69sa

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San Antonio

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Message Posted: Dec 4, 2012 12:03:41 AM

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
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LetemEatCake
Champion Author Oklahoma City

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Message Posted: Dec 5, 2012 11:22:53 PM



A Win-Win for all!
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remay
Champion Author Houston

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Message Posted: Dec 5, 2012 5:55:31 AM

.... it takes a SA company to build a plant in the USA???
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DanMtz
Champion Author Oakland

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Message Posted: Dec 4, 2012 8:02:02 PM

Sounds like a good idea.
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heydano67
Champion Author California

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Message Posted: Dec 4, 2012 4:09:47 PM

Sounds good, but how low does NG need to be to keep it profitable, or how high do gas prices need to be
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ss70
Champion Author Detroit

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Message Posted: Dec 4, 2012 12:17:42 PM

good for US
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eschroth442
Champion Author Cleveland

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Message Posted: Dec 4, 2012 9:12:41 AM

Look a company is using a cheap natural reasource to produce other things. And they are from another country.
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zwsn01
All-Star Author Alabama

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Message Posted: Dec 4, 2012 8:27:19 AM

At least someone is betting on USA gas.
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MAC48
Champion Author Dallas

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Message Posted: Dec 4, 2012 5:20:56 AM

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.
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TIGERPAW46
Champion Author Florida

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Message Posted: Dec 4, 2012 5:02:39 AM

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.
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Mark8601
Champion Author Bakersfield

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Message Posted: Dec 4, 2012 4:33:58 AM

what a mess
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humblepie
Champion Author Toledo

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Message Posted: Dec 4, 2012 4:04:45 AM

until the natgas price spike
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iFueler
Champion Author Durham

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Message Posted: Dec 4, 2012 1:36:51 AM

as others have said, where will it go... worldwide market?
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RENEGADEGAS
Champion Author Missouri

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Message Posted: Dec 4, 2012 1:28:06 AM

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.
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TBONE3
Champion Author Pennsylvania

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Message Posted: Dec 4, 2012 1:21:43 AM

About time. Why did it take a South African company to do it HERE? No Chemists or Scientists here?
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Sneakers55
Champion Author Houston

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Message Posted: Dec 4, 2012 1:13:49 AM

Used to have Sasol stock in my IRA, but when I turned it over to an advisor they sold it.
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DirtDauber
Champion Author San Antonio

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Message Posted: Dec 4, 2012 1:12:33 AM

Wonder why this took so long?
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granitestater
Champion Author New Hampshire

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Message Posted: Dec 4, 2012 1:10:20 AM

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.
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Bruno44
Champion Author Texas

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Message Posted: Dec 4, 2012 1:08:20 AM

Good point by defiancegasman.
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defiancegasman
Champion Author Ohio

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Message Posted: Dec 4, 2012 1:05:02 AM

As long as the plant is TAXED by the USA and the products stay in AMERICA for our use!
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ToolinIt
Champion Author Colorado

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Message Posted: Dec 4, 2012 12:58:28 AM

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]
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Buddy2264
Champion Author Tampa

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Message Posted: Dec 4, 2012 12:55:04 AM

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.
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1Casey
Champion Author Albany

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Message Posted: Dec 4, 2012 12:54:42 AM

don't like
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Mowerman08
Champion Author Milwaukee

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Message Posted: Dec 4, 2012 12:50:10 AM

Does this qualify as the first new refinery in 25 years.
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lunarrv15
Champion Author Cincinnati

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Message Posted: Dec 4, 2012 12:45:56 AM

okay..interesting
thanks for posting GB blog
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jorod55
Champion Author California

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Message Posted: Dec 4, 2012 12:45:30 AM

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.
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must87searcher
Champion Author Maryland

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Message Posted: Dec 4, 2012 12:44:50 AM

This idea does make sense. Hope it works out alright.
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rtw777
Champion Author Florida

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Message Posted: Dec 4, 2012 12:44:33 AM

Four years ago an American company would be doing these.
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Kawibiker
Champion Author Illinois

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Message Posted: Dec 4, 2012 12:44:22 AM

Go for it, and Get er done!
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FortVancouver01
Champion Author Washington

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Message Posted: Dec 4, 2012 12:35:20 AM


Sounds like some positive technology. Hope it is successful.

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RAE344
Champion Author Virginia Beach

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Message Posted: Dec 4, 2012 12:29:30 AM

First step to exporting our supply of natural gas and causing the price to go sky high.
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cheapchickKY
Champion Author Lexington

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Message Posted: Dec 4, 2012 12:08:30 AM

Interesting.
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