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Gas to Liquid Economics

Posted on 9/29/12 at 12:31 pm
Posted by Cold Pizza
Member since Sep 2011
7639 posts
Posted on 9/29/12 at 12:31 pm
What is the ratio of NG price to diesel/gasoline needed to turn a profit? Is there enough NG out there that GTL production will be significant to affect supply?

Most of what I've read is the "L" is diesel. Is there much gasoline produced in this process?
Posted by bunky
Portland, Ore.
Member since Jul 2011
4639 posts
Posted on 9/30/12 at 6:04 pm to
Doesn't it have to do with what type of hydrocarbons are produced?

i.e., the ones made aren't terribly useful for gasoline but they can make ones that are decent for diesel.
Posted by idlewatcher
County Jail
Member since Jan 2012
79177 posts
Posted on 10/10/12 at 3:54 pm to
NG here in the US is pushing $4/cf. Oil, on the other hand, is still hovering over 110/bbl (on Brent price).

Think of the refining process like this:
hydrocarbons
| | | | |
derivatives of heating said hydrocarbons yields you benzens, diesels, gasolines, kerosenes etc. All these are, are broken down hydrocarbons in different forms due to heating.
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