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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