Gas to Liquids

Last week (April 9, 2013) South African firm SASOL held an investor strategy day in New York. The company confirmed it is moving ahead with plans to build a 100 Mb/d gas-to-liquids (GTL) plant in Lake Charles, LA. Shell is evaluating plans for a similar plant in LA. The plant feedstock will be up to 1 Bcf/d of dry natural gas and output will be very low sulfur diesel, naphtha and liquefied petroleum gas (LPG). A year ago in April 2012 the economics looked very positive because of the wide spread between gas prices and refined products but the margins have narrowed since then. Today we look at prospects for this plant and others like it.