Source: Corzine, R. 1997. The latest liquid gold. World Press Review. 44(9):31.
The world's first commercial plant that converts natural gas to virtually
pollution-free diesel fuel, jet fuel, and naphtha has been built in Bintulu,
Malaysia. Instead of black diesel fuel, this plant produces 12,000 barrels of
clear fuel a day, leaving only white, waxy waste products. By-products are
potable water and a soot-like residue that can be used as a soil conditioner to
improve soil structure. The author gives potential advantages and drawbacks of
converting natural gas to liquid fuels. The high quality fuel would give
drivers significantly higher mileage than conventional diesel. Although natural
gas is not necessarily a sustainable energy source, this new conversion process
allows existing sources of natural gas to be used more efficiently and cause
less pollution. This new process does indeed bring natural gas closer to
becoming sustainable because of its efficiency. By converting natural gas to a
liquid fuel, it becomes easier to transport and allows the development of
abundant natural gas reservoirs that are far from markets. One disadvantage is
that this gas-to-liquid fuel project may cause a disturbance in the oil
industry. If governments immediately insist on clean, gas-based fuels without
giving oil companies time to invest in the new technology, the existing
companies will not be able to compete. Although industrialized countries will
probably benefit the most from the new technology, developing or former
Communist countries may be able to avoid investing in expensive conventional
energy infrastructure. An important issue is whether such a high-quality fuel
would command equally high prices. Oil prices may drop from the 1996 price of
$20 a barrel to only $15 a barrel. This has the possibility of disrupting the
oil market. To avoid undermining existing markets, some companies would prefer
to mix the new fuel with poorer quality, crude oil-derived fuels. The world's
biggest oil companies are now trying to position themselves in the
gas-to-liquid fuels market. Plans have been made to build plants in Qatar,
Alaska, and South Africa.
Abstract Author: Julie Contino, 8
December 1997.
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