Not Logged In Log In   Sign Up   Points Leaders
Follow Us    3:49 AM

GasBuddy News Article

28
votes
South African Company to Build U.S. Plant to Convert Gas to Liquid Fuels

NY Times -- 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


Read the Full Article

Submitted Dec 04, 2012 By: skb69sa
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: South African Company to Build U.S. Plant to Convert Gas to Liquid Fuels Back to Topics
REPLIES (newest first) Post a Reply
Profile Pic
LetemEatCake
Champion Author Oklahoma City

Posts:5,705
Points:1,360,915
Joined:Mar 2008
Message Posted: Dec 5, 2012 11:22:53 PM



A Win-Win for all!
Profile Pic
remay
Champion Author Houston

Posts:8,956
Points:2,568,540
Joined:May 2006
Message Posted: Dec 5, 2012 5:55:31 AM

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

Posts:5,533
Points:1,702,890
Joined:Oct 2009
Message Posted: Dec 4, 2012 8:02:02 PM

Sounds like a good idea.
Profile Pic
heydano67
Champion Author California

Posts:2,494
Points:763,230
Joined:Feb 2012
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
Profile Pic
ss70
Champion Author Detroit

Posts:12,382
Points:2,295,990
Joined:Sep 2005
Message Posted: Dec 4, 2012 12:17:42 PM

good for US
Profile Pic
eschroth442
Champion Author Cleveland

Posts:2,512
Points:663,830
Joined:Nov 2011
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.
Profile Pic
zwsn01
All-Star Author Alabama

Posts:748
Points:853,490
Joined:Jan 2012
Message Posted: Dec 4, 2012 8:27:19 AM

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

Posts:3,026
Points:1,188,460
Joined:Dec 2006
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.
Profile Pic
TIGERPAW46
Champion Author Florida

Posts:9,306
Points:1,800,885
Joined:Mar 2004
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.
Profile Pic
Mark8601
Champion Author Bakersfield

Posts:1,117
Points:640,010
Joined:Dec 2011
Message Posted: Dec 4, 2012 4:33:58 AM

what a mess
Profile Pic
humblepie
Champion Author Toledo

Posts:53,495
Points:2,832,960
Joined:Mar 2006
Message Posted: Dec 4, 2012 4:04:45 AM

until the natgas price spike
Profile Pic
iFueler
Champion Author Durham

Posts:74,148
Points:635,600
Joined:Nov 2012
Message Posted: Dec 4, 2012 1:36:51 AM

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

Posts:17,175
Points:2,029,865
Joined:Jul 2008
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.
Profile Pic
TBONE3
Champion Author Pennsylvania

Posts:10,724
Points:2,394,230
Joined:Mar 2005
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?
Profile Pic
Sneakers55
Champion Author Houston

Posts:60,782
Points:2,548,260
Joined:Nov 2005
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.
Profile Pic
DirtDauber
Champion Author San Antonio

Posts:8,965
Points:2,088,505
Joined:Nov 2005
Message Posted: Dec 4, 2012 1:12:33 AM

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

Posts:11,385
Points:1,879,455
Joined:Oct 2008
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.
Profile Pic
Bruno44
Champion Author Texas

Posts:9,179
Points:2,213,100
Joined:Sep 2007
Message Posted: Dec 4, 2012 1:08:20 AM

Good point by defiancegasman.
Profile Pic
defiancegasman
Champion Author Ohio

Posts:7,188
Points:1,355,355
Joined:May 2006
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!
Profile Pic
ToolinIt
Champion Author Colorado

Posts:1,840
Points:1,303,685
Joined:May 2010
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]
Profile Pic
Buddy2264
Champion Author Tampa

Posts:13,884
Points:2,820,520
Joined:Oct 2005
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.
Profile Pic
1Casey
Champion Author Albany

Posts:8,498
Points:2,152,855
Joined:Jun 2004
Message Posted: Dec 4, 2012 12:54:42 AM

don't like
Profile Pic
Mowerman08
Champion Author Milwaukee

Posts:6,830
Points:1,663,985
Joined:Aug 2008
Message Posted: Dec 4, 2012 12:50:10 AM

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

Posts:18,343
Points:2,841,785
Joined:Dec 2005
Message Posted: Dec 4, 2012 12:45:56 AM

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

Posts:3,646
Points:890,090
Joined:Dec 2011
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.
Profile Pic
must87searcher
Champion Author Maryland

Posts:11,111
Points:2,238,000
Joined:Apr 2008
Message Posted: Dec 4, 2012 12:44:50 AM

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

Posts:11,563
Points:2,301,095
Joined:Jan 2008
Message Posted: Dec 4, 2012 12:44:33 AM

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

Posts:1,894
Points:355,985
Joined:May 2012
Message Posted: Dec 4, 2012 12:44:22 AM

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

Posts:1,543
Points:642,870
Joined:Jul 2012
Message Posted: Dec 4, 2012 12:35:20 AM


Sounds like some positive technology. Hope it is successful.

Profile Pic
RAE344
Champion Author Virginia Beach

Posts:5,283
Points:1,120,785
Joined:Jun 2011
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.
Profile Pic
cheapchickKY
Champion Author Lexington

Posts:6,442
Points:1,255,245
Joined:Jan 2011
Message Posted: Dec 4, 2012 12:08:30 AM

Interesting.
Post a reply Back to Topics