Gas to Liquid Technologies March 2012 Gareth Shaw The Petroleum Oil and Gas Corporation of South Africa (Soc) Ltd Reg. No. 1970/008130/07 The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07 Objectives What role should GTL technology play in future energy supply in South Africa? • List of GTL technologies to be considered • Major characteristics: • Costs • Emissions • Jobs • Water use The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 2 GTL role in future supply The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 3 Regional energy resource mix • East coast and West coast gas • Shale gas (not shown below) Current Operations The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 Source: DOE, RSA 1 4 Demand for liquid fuels The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 Source: PFC Energy 2 5 Gas reserves required to meet future growth GTL technology is now designed to make diesel In 2025 3.3 Tcf of gas will be required to meet 50 000 b/d diesel demand growth. In 2030 a further 4.6 Tcf of gas will be required to meet the 70 000 b/d diesel demand growth. The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 Source: PFC Energy 2 6 GTL growing internationally Qatar Nigeria Malaysia Qatar Sasolburg Mossel Bay The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 7 GTL operations worldwide PetroSA Sasol/QP Shell/QP Current 36 000 b/d 40 000 b/d 85 000 b/d South Africa RSA/Qatar Malaysia/Qatar Sasol/Chevron Shell/QP Future 32 400 b/d 70 000 b/d Nigeria Qatar 180000 160000 140000 120000 100000 Future 80000 Existing 60000 40000 Capacity barrels/day Capacity 20000 0 PetroSA Sasol Shell The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 8 PetroSA’s GTL Operations The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 9 PetroSA GTL Operations producing 1992 -2012 Petrol design basis Fresh water design The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 10 Oryx GTL in Qatar The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 Source: Technip 11 Escravos GTL in Nigeria The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 Source: SasolChevron 12 Shell Pearl GTL in Qatar The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 Source: Gas Matters 13 Semi Commercial Demonstration operational trials completed The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 14 GTL industry facing high capital cost increases The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 Source: Cera 15 GTL costs at $100 per barrel crude price $13/bbl $47/bbl $30/bbl The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 16 GTL Technologies HTFT Prod Emissions Jobs Water Sea Cost use Water use Units tCO2/t prod Number T H2O/t T H2O/t prod prod HTFT 2.3 4 1000 5 (17) Mossel Bay LTFT Prod Emissions Jobs Water Sea Cost use Water use Units $/bbl tCO2/t prod Number T H2O/t T H2O/t prod prod 40 000 b/d 90 1.3 750 0 15 LCA Well 4.0 3 to wheels The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 • Approximation 3 17 Conclusions • South Africa is well positioned to use GTL in the future • Diesel production by GTL matches local market demand • GTL technology production costs competitive • At $100 per barrel oil price • $5 per MMBTU gas price • Sufficient regional gas reserves discovered to meet diesel demand growth post 2020. • GTL technology designed to use seawater but then needs a coastal location. The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 18 References 1. Magubane Nelisiwe, Our Journey Towards 2030, Department of Energy, RSA 2. PFC Energy, BLNS Supply Zone – Demand & Supply Forecast, November 2011 3. Forman G, Hahn T & Jensen S, Greenhouse Gas Emission Evaluation of the GTL Pathway, Environmental Science and Technology, Sept 2011 4. Environmental Resources Management Report, PetroSA Carbon Footprint Study FY09/10 & FY 10/11, Oct 2011 The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd Reg. No. 1970/008130/07 19 .