Economics of Gas-to-Liquids (GTL) Plants

Ekwueme Stanley Toochukwu; Izuwa Nkemakolam Chinedu; Obibuike Ubanozie Julian; Kerunwa Anthony; Ohia Nnaemeka Princewill; Odo Jude Emeka; Obah Boniface

doi:doi:10.11648/j.pse.20190302.17

Economics of Gas-to-Liquids (GTL) Plants

Ekwueme Stanley Toochukwu, Izuwa Nkemakolam Chinedu, Obibuike Ubanozie Julian, Kerunwa Anthony, Ohia Nnaemeka Princewill, Odo Jude Emeka, Obah Boniface

Published in Petroleum Science and Engineering (Volume 3, Issue 2)

Received: 21 October 2019 Accepted: 23 November 2019 Published: 13 December 2019

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Abstract

This work evaluates the economics of GTL plant using two synthesis gas methods. The first method called the base case utilizes oxygen as fuel for combustion of natural gas, while the proposed case uses steam/CO2 instead of Oxygen. The aim is to ascertain a more economically viable GTL configuration for an optimal GTL process. The associated flare gas at Egbema production sites in the Niger Delta has been chosen as case study. The gas flowrate is 50MMscfd of raw natural gas which was pre-treated before being fed into the main GTL plant. The liquid yield result shows that the proposed method has a liquid yield of 5730b/d over the 5430b/d gotten from the base case representing an increase in product yield of 5.5%. The economic analyses show a quicker pay-out time of 4.9 years from the proposed model compared to 5.9 years from the base case. Using the proposed method gave an annual cashflow increase of 20.9% and NPV increase of 59.7% at 10% discount rates. Also the DCF-ROR from the proposed method was 20.3% compared to 16.6% gotten from the base method. Thus the proposed method is more profitable in terms of NPV. The project is recommended for application in the Niger Delta stranded and remote gas locations that have before now been subjected to flaring.

Published in	Petroleum Science and Engineering (Volume 3, Issue 2)
DOI	10.11648/j.pse.20190302.17
Page(s)	85-93
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Gas-to-Liquid, Natural Gas, Monetization, Pressurization, Energy, Syngas Generation

References

[1]	Wood, D. A., C. Nwaoha and B. F. Towler (2012). “Gas-to-liquids (GTL): A review of an industry offering several routes for monetizing natural gas,” Journal of Natural Gas Science and Engineering, Vol. 9, November.
[2]	Enyi, C. G, Nagib, M., Nasr, G. G. (2011). A new Approach to effluent treatment in Gas-to-liquid (GTL). A paper prepared for presentation at the international petroleum technology conference held in Bangkok Thailand.
[3]	Garrouch A. A. (2007). Economic Viability of Gas-to-Liquids Technology. Paper SPE 107274 presented at the SPE hydrocarbon economics and evaluation symposium, Dallas, Texas.
[4]	Seddon, D. (2004). Why is GTL So Expensive? Paper SPE 88632 presented at the SPE Asia pacific oil and gas conference and exhibition, Perth, Australia.
[5]	Ekejiuba, A. I. B., 2017. Real-Time Monetization of the Flare Associated Stranded Natural Gas in Nigeria: Quantitative Analysis and Qualitative Values. The International Journal of Science & Technology, Vol. 5 Issue 8, pp. 154.
[6]	Taylor, M and Martin, P. (2004). Recent developments and technologies for cost effective gas monetisation. Advantica, Ashby road Loughborough, LE11 3GR, UK.
[7]	Spath, P. L. and D. C. Dayton. (2003) “Preliminary screening—technical and economic assessment of synthesis gas to fuels and chemicals with emphasis on the potential for biomass-derived syngas,” National Renewable Energy Laboratory, Golden, Colorado.
[8]	Bello H., Joel, O., Ikiensikimema S. S (2012). Improving the efficiency of Fisher Tropsch Synthesis using the CO2 reduction Alternative. SPE paper prepared for presentation at the SPE international technical conference and Exhibition held in Abuja, Nigeria.
[9]	Vosloo A. C (2000). Conceptual Design of Fisher Trospch based GTL plant. Sasol Technology Research and Development, Sasolburg, South Africa.
[10]	Knutsen K. T. (2013). Modelling and optimization of a Gas-to-Liquid plant. Master’s degree thesis, Department of Chemical Engineering, Norwegian University of science and technology.
[11]	Christiansen Lars J Rostrup-Nielsen Jens. (2011) Concepts in Syngas Manufacture. Imperial College Press.
[12]	Hillestad, M. &Rafiee A. (2010). Optimal design and operation of a gas-to-liquid process. Chemical Engineering Transactions, 21: 1393–1398.
[13]	Nordvåg Ole Kristian (2012). Modelling and optimization of a Gas-to-Liquid plant. Department of Chemical Engineering, Norwegian University of Science and Technology.
[14]	Sinnot, R; Towler, G. Chemical Engineering Design. Oxford: Elsevier Ltd., 2009.
[15]	Al-Saadoon (2007). Economics of GTL plants. Paper presented at the SPE hydrocarbon Economics and Evaluation symposium, Dallas.

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Ekwueme Stanley Toochukwu, Izuwa Nkemakolam Chinedu, Obibuike Ubanozie Julian, Kerunwa Anthony, Ohia Nnaemeka Princewill, et al. (2019). Economics of Gas-to-Liquids (GTL) Plants. Petroleum Science and Engineering, 3(2), 85-93. https://doi.org/10.11648/j.pse.20190302.17

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ACS Style

Ekwueme Stanley Toochukwu; Izuwa Nkemakolam Chinedu; Obibuike Ubanozie Julian; Kerunwa Anthony; Ohia Nnaemeka Princewill, et al. Economics of Gas-to-Liquids (GTL) Plants. Pet. Sci. Eng. 2019, 3(2), 85-93. doi: 10.11648/j.pse.20190302.17

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AMA Style

Ekwueme Stanley Toochukwu, Izuwa Nkemakolam Chinedu, Obibuike Ubanozie Julian, Kerunwa Anthony, Ohia Nnaemeka Princewill, et al. Economics of Gas-to-Liquids (GTL) Plants. Pet Sci Eng. 2019;3(2):85-93. doi: 10.11648/j.pse.20190302.17

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@article{10.11648/j.pse.20190302.17,
  author = {Ekwueme Stanley Toochukwu and Izuwa Nkemakolam Chinedu and Obibuike Ubanozie Julian and Kerunwa Anthony and Ohia Nnaemeka Princewill and Odo Jude Emeka and Obah Boniface},
  title = {Economics of Gas-to-Liquids (GTL) Plants},
  journal = {Petroleum Science and Engineering},
  volume = {3},
  number = {2},
  pages = {85-93},
  doi = {10.11648/j.pse.20190302.17},
  url = {https://doi.org/10.11648/j.pse.20190302.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.pse.20190302.17},
  abstract = {This work evaluates the economics of GTL plant using two synthesis gas methods. The first method called the base case utilizes oxygen as fuel for combustion of natural gas, while the proposed case uses steam/CO2 instead of Oxygen. The aim is to ascertain a more economically viable GTL configuration for an optimal GTL process. The associated flare gas at Egbema production sites in the Niger Delta has been chosen as case study. The gas flowrate is 50MMscfd of raw natural gas which was pre-treated before being fed into the main GTL plant. The liquid yield result shows that the proposed method has a liquid yield of 5730b/d over the 5430b/d gotten from the base case representing an increase in product yield of 5.5%. The economic analyses show a quicker pay-out time of 4.9 years from the proposed model compared to 5.9 years from the base case. Using the proposed method gave an annual cashflow increase of 20.9% and NPV increase of 59.7% at 10% discount rates. Also the DCF-ROR from the proposed method was 20.3% compared to 16.6% gotten from the base method. Thus the proposed method is more profitable in terms of NPV. The project is recommended for application in the Niger Delta stranded and remote gas locations that have before now been subjected to flaring.},
 year = {2019}
}

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TY - JOUR
T1 - Economics of Gas-to-Liquids (GTL) Plants
AU - Ekwueme Stanley Toochukwu
AU - Izuwa Nkemakolam Chinedu
AU - Obibuike Ubanozie Julian
AU - Kerunwa Anthony
AU - Ohia Nnaemeka Princewill
AU - Odo Jude Emeka
AU - Obah Boniface
Y1 - 2019/12/13
PY - 2019
N1 - https://doi.org/10.11648/j.pse.20190302.17
DO - 10.11648/j.pse.20190302.17
T2 - Petroleum Science and Engineering
JF - Petroleum Science and Engineering
JO - Petroleum Science and Engineering
SP - 85
EP - 93
PB - Science Publishing Group
SN - 2640-4516
UR - https://doi.org/10.11648/j.pse.20190302.17
AB - This work evaluates the economics of GTL plant using two synthesis gas methods. The first method called the base case utilizes oxygen as fuel for combustion of natural gas, while the proposed case uses steam/CO2 instead of Oxygen. The aim is to ascertain a more economically viable GTL configuration for an optimal GTL process. The associated flare gas at Egbema production sites in the Niger Delta has been chosen as case study. The gas flowrate is 50MMscfd of raw natural gas which was pre-treated before being fed into the main GTL plant. The liquid yield result shows that the proposed method has a liquid yield of 5730b/d over the 5430b/d gotten from the base case representing an increase in product yield of 5.5%. The economic analyses show a quicker pay-out time of 4.9 years from the proposed model compared to 5.9 years from the base case. Using the proposed method gave an annual cashflow increase of 20.9% and NPV increase of 59.7% at 10% discount rates. Also the DCF-ROR from the proposed method was 20.3% compared to 16.6% gotten from the base method. Thus the proposed method is more profitable in terms of NPV. The project is recommended for application in the Niger Delta stranded and remote gas locations that have before now been subjected to flaring.
VL - 3
IS - 2
ER -

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Author Information

Ekwueme Stanley Toochukwu

Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Izuwa Nkemakolam Chinedu

Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Obibuike Ubanozie Julian

Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Kerunwa Anthony

Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Ohia Nnaemeka Princewill

Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Odo Jude Emeka

Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Obah Boniface

Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria

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APA Style

Ekwueme Stanley Toochukwu, Izuwa Nkemakolam Chinedu, Obibuike Ubanozie Julian, Kerunwa Anthony, Ohia Nnaemeka Princewill, et al. (2019). Economics of Gas-to-Liquids (GTL) Plants. Petroleum Science and Engineering, 3(2), 85-93. https://doi.org/10.11648/j.pse.20190302.17

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ACS Style

Ekwueme Stanley Toochukwu; Izuwa Nkemakolam Chinedu; Obibuike Ubanozie Julian; Kerunwa Anthony; Ohia Nnaemeka Princewill, et al. Economics of Gas-to-Liquids (GTL) Plants. Pet. Sci. Eng. 2019, 3(2), 85-93. doi: 10.11648/j.pse.20190302.17

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AMA Style

Ekwueme Stanley Toochukwu, Izuwa Nkemakolam Chinedu, Obibuike Ubanozie Julian, Kerunwa Anthony, Ohia Nnaemeka Princewill, et al. Economics of Gas-to-Liquids (GTL) Plants. Pet Sci Eng. 2019;3(2):85-93. doi: 10.11648/j.pse.20190302.17

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@article{10.11648/j.pse.20190302.17,
  author = {Ekwueme Stanley Toochukwu and Izuwa Nkemakolam Chinedu and Obibuike Ubanozie Julian and Kerunwa Anthony and Ohia Nnaemeka Princewill and Odo Jude Emeka and Obah Boniface},
  title = {Economics of Gas-to-Liquids (GTL) Plants},
  journal = {Petroleum Science and Engineering},
  volume = {3},
  number = {2},
  pages = {85-93},
  doi = {10.11648/j.pse.20190302.17},
  url = {https://doi.org/10.11648/j.pse.20190302.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.pse.20190302.17},
  abstract = {This work evaluates the economics of GTL plant using two synthesis gas methods. The first method called the base case utilizes oxygen as fuel for combustion of natural gas, while the proposed case uses steam/CO2 instead of Oxygen. The aim is to ascertain a more economically viable GTL configuration for an optimal GTL process. The associated flare gas at Egbema production sites in the Niger Delta has been chosen as case study. The gas flowrate is 50MMscfd of raw natural gas which was pre-treated before being fed into the main GTL plant. The liquid yield result shows that the proposed method has a liquid yield of 5730b/d over the 5430b/d gotten from the base case representing an increase in product yield of 5.5%. The economic analyses show a quicker pay-out time of 4.9 years from the proposed model compared to 5.9 years from the base case. Using the proposed method gave an annual cashflow increase of 20.9% and NPV increase of 59.7% at 10% discount rates. Also the DCF-ROR from the proposed method was 20.3% compared to 16.6% gotten from the base method. Thus the proposed method is more profitable in terms of NPV. The project is recommended for application in the Niger Delta stranded and remote gas locations that have before now been subjected to flaring.},
 year = {2019}
}

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