Economics of Gas-to-Liquids (GTL) Plants
Petroleum Science and Engineering
Volume 3, Issue 2, December 2019, Pages: 85-93
Received: Oct. 21, 2019;
Accepted: Nov. 23, 2019;
Published: Dec. 13, 2019
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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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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.
Gas-to-Liquid, Natural Gas, Monetization, Pressurization, Energy, Syngas Generation
To cite this article
Ekwueme Stanley Toochukwu,
Izuwa Nkemakolam Chinedu,
Obibuike Ubanozie Julian,
Ohia Nnaemeka Princewill,
Odo Jude Emeka,
Economics of Gas-to-Liquids (GTL) Plants, Petroleum Science and Engineering.
Vol. 3, No. 2,
2019, pp. 85-93.
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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