GasBuddy Blog

GasBuddy News Article

votes

South African Company to Build U.S. Plant to Convert Gas to Liquid Fuels

NY Times -- In an ambitious bet that the glut of cheap natural gas in the United States will last for many years, a South African energy company announced on Monday that it would build America’s first commercial plant to convert natural gas to diesel and other liquid fuels.

The company, Sasol, which is based in Johannesburg, has been a pioneer in a technology that has tantalized energy scientists for decades over its potential to produce liquid fuels without using oil, which has historically cost far more than natural gas.

Having already built smaller plants in South Africa and Qatar, Sasol has designed its new Louisiana plant to produce 96,000 barrels of fuel a day using its “gas to liquids,” or G.T.L., technology. It will be the second-largest plant of its kind in the world, after Royal Dutch Sh

Read the Full Article

Submitted Dec 04, 2012 By: skb69sa

Back To News

Category: Daily News Article Discussions > Topics	Add to favorite topics

Author	Topic: South African Company to Build U.S. Plant to Convert Gas to Liquid Fuels	Post a Reply Back to Topics

REPLIES (newest first)Ignore Short Messages

LetemEatCake Champion Author Oklahoma City Posts:5,594 Points:1,200,965 Joined:Mar 2008	Message Posted: Dec 5, 2012 8:22:53 PM Ignore LetemEatCake Report Abuse A Win-Win for all!
remay Champion Author Houston Posts:6,943 Points:2,112,640 Joined:May 2006	Message Posted: Dec 5, 2012 2:55:31 AM Ignore remay Report Abuse .... it takes a SA company to build a plant in the USA???
DanMtz Champion Author Oakland Posts:3,330 Points:1,238,450 Joined:Oct 2009	Message Posted: Dec 4, 2012 5:02:02 PM Ignore DanMtz Report Abuse Sounds like a good idea.
heydano67 Champion Author California Posts:1,646 Points:353,535 Joined:Feb 2012	Message Posted: Dec 4, 2012 1:09:47 PM Ignore heydano67 Report Abuse Sounds good, but how low does NG need to be to keep it profitable, or how high do gas prices need to be
ss70 Champion Author Detroit Posts:9,630 Points:1,866,100 Joined:Sep 2005	Message Posted: Dec 4, 2012 9:17:42 AM Ignore ss70 Report Abuse good for US
eschroth442 Champion Author Cleveland Posts:1,064 Points:328,220 Joined:Nov 2011	Message Posted: Dec 4, 2012 6:12:41 AM Ignore eschroth442 Report Abuse Look a company is using a cheap natural reasource to produce other things. And they are from another country.
zwsn01 All-Star Author Alabama Posts:691 Points:435,675 Joined:Jan 2012	Message Posted: Dec 4, 2012 5:27:19 AM Ignore zwsn01 Report Abuse At least someone is betting on USA gas.
MAC48 Champion Author Dallas Posts:1,546 Points:762,345 Joined:Dec 2006	Message Posted: Dec 4, 2012 2:20:56 AM Ignore MAC48 Report Abuse If Sasol thinks that the gamble is worth taking, why not give it a shot. You can bet that there will be more discoveries of recoverable shale oil and natural gas in the coming years and a favorable national administration change in 2017 would accelerate these discoveries. What would really be exciting would be a technological breakthrough that would allow coal to be converted to natural gas, natural gas liquids or gasoline/diesel that is both economically justified and practical. Now that would be an absolutely amazing development since the US has such massive deposits of coal.
TIGERPAW46 Champion Author Florida Posts:7,114 Points:1,352,710 Joined:Mar 2004	Message Posted: Dec 4, 2012 2:02:39 AM Ignore TIGERPAW46 Report Abuse Why is it so often a foreign company development in the USA instead of an American based company? Oh that's right maybe this from the article helps explain it. ""The state encouraged the project with more than $2 billion worth of tax credits and other incentives... The track record for the technology, conceived by German scientists in the 1920s, is not encouraging, mainly because of a history of construction cost overruns... Profits have been elusive for the technology. To make it work financially, natural gas prices must remain low and prices for oil, diesel and jet fuel must remain high for a prolonged period... In the United States, various companies have plans to build natural gas export terminals and promote more use of compressed natural gas for vehicles, as is done in many countries like Pakistan, Iran and Argentina."" It goes on to say Diesel would have to stay above $4.00/Gal at today's low nat gas prices. So I guess that tells you the country doesn't plan on slowing the gasoline & diesel escalating prices.
Mark8601 All-Star Author Bakersfield Posts:913 Points:378,765 Joined:Dec 2011	Message Posted: Dec 4, 2012 1:33:58 AM Ignore Mark8601 Report Abuse what a mess
humblepie Champion Author Toledo Posts:34,047 Points:2,367,370 Joined:Mar 2006	Message Posted: Dec 4, 2012 1:04:45 AM Ignore humblepie Report Abuse until the natgas price spike
iFueler Champion Author Durham Posts:64,268 Points:174,525 Joined:Nov 2012	Message Posted: Dec 3, 2012 10:36:51 PM Ignore iFueler Report Abuse as others have said, where will it go... worldwide market?
RENEGADEGAS Champion Author Missouri Posts:14,888 Points:1,587,225 Joined:Jul 2008	Message Posted: Dec 3, 2012 10:28:06 PM Ignore RENEGADEGAS Report Abuse Id say this is an ambitious bet alright. Theres only 100 years of natural gas left in the US under last years consumption rate. The more we extreact and the more things we convert to natural gas the quicker the supply will be exhausted. The lower the supply goes, the higher the price guarunteed.
TBONE3 Champion Author Pennsylvania Posts:8,726 Points:1,972,650 Joined:Mar 2005	Message Posted: Dec 3, 2012 10:21:43 PM Ignore TBONE3 Report Abuse About time. Why did it take a South African company to do it HERE? No Chemists or Scientists here?
Sneakers55 Champion Author Houston Posts:51,246 Points:2,139,175 Joined:Nov 2005	Message Posted: Dec 3, 2012 10:13:49 PM Ignore Sneakers55 Report Abuse Used to have Sasol stock in my IRA, but when I turned it over to an advisor they sold it.
DirtDauber Champion Author San Antonio Posts:6,761 Points:1,623,460 Joined:Nov 2005	Message Posted: Dec 3, 2012 10:12:33 PM Ignore DirtDauber Report Abuse Wonder why this took so long?
granitestater Champion Author New Hampshire Posts:8,800 Points:1,426,750 Joined:Oct 2008	Message Posted: Dec 3, 2012 10:10:20 PM Ignore granitestater Report Abuse The products don't have to stay here. As exported goods will help the trade imbalance. Excessive imports dilute the value of the dollar. Any exports will reduce the stress on the dollar.
Bruno44 Champion Author Texas Posts:7,054 Points:1,764,195 Joined:Sep 2007	Message Posted: Dec 3, 2012 10:08:20 PM Ignore Bruno44 Report Abuse Good point by defiancegasman.
defiancegasman Champion Author Ohio Posts:7,069 Points:1,321,210 Joined:May 2006	Message Posted: Dec 3, 2012 10:05:02 PM Ignore defiancegasman Report Abuse As long as the plant is TAXED by the USA and the products stay in AMERICA for our use!
ToolinIt Champion Author Colorado Posts:1,803 Points:882,720 Joined:May 2010	Message Posted: Dec 3, 2012 9:58:28 PM Ignore ToolinIt Report Abuse Probably, the end product will be totally exported out of the U.S. as are all other petro products. U.S. refineries are only focused on max profits and could care less about fuel prices for Americans. [Edited by: ToolinIt at 12/4/2012 12:59:48 AM EST]
Buddy2264 Champion Author Tampa Posts:11,629 Points:2,355,745 Joined:Oct 2005	Message Posted: Dec 3, 2012 9:55:04 PM Ignore Buddy2264 Report Abuse I hope it is successful and we see a change the the way fuels are produced. However I hope those fuels do not just get shipped away to the highest bidder, which is seems like will happen, the same with gasoline.
1Casey Champion Author Albany Posts:6,508 Points:1,788,485 Joined:Jun 2004	Message Posted: Dec 3, 2012 9:54:42 PM Ignore 1Casey Report Abuse don't like
Mowerman08 Champion Author Milwaukee Posts:4,737 Points:1,213,955 Joined:Aug 2008	Message Posted: Dec 3, 2012 9:50:10 PM Ignore Mowerman08 Report Abuse Does this qualify as the first new refinery in 25 years.
lunarrv15 Champion Author Cincinnati Posts:14,839 Points:2,381,310 Joined:Dec 2005	Message Posted: Dec 3, 2012 9:45:56 PM Ignore lunarrv15 Report Abuse okay..interesting thanks for posting GB blog
jorod55 Champion Author California Posts:1,455 Points:426,975 Joined:Dec 2011	Message Posted: Dec 3, 2012 9:45:30 PM Ignore jorod55 Report Abuse I say keep the plants smaller and have more of them to handle the gas more efficiently. Then if a plant fails it doesn't wipe out a third or half of its supply product.
must87searcher Champion Author Maryland Posts:8,959 Points:1,775,640 Joined:Apr 2008	Message Posted: Dec 3, 2012 9:44:50 PM Ignore must87searcher Report Abuse This idea does make sense. Hope it works out alright.
rtw777 Champion Author Florida Posts:9,376 Points:1,837,995 Joined:Jan 2008	Message Posted: Dec 3, 2012 9:44:33 PM Ignore rtw777 Report Abuse Four years ago an American company would be doing these.
Kawibiker Champion Author Illinois Posts:1,165 Points:203,400 Joined:May 2012	Message Posted: Dec 3, 2012 9:44:22 PM Ignore Kawibiker Report Abuse Go for it, and Get er done!
FortVancouver01 Champion Author Washington Posts:1,155 Points:283,520 Joined:Jul 2012	Message Posted: Dec 3, 2012 9:35:20 PM Ignore FortVancouver01 Report Abuse Sounds like some positive technology. Hope it is successful.
RAE344 Champion Author Virginia Beach Posts:3,038 Points:656,545 Joined:Jun 2011	Message Posted: Dec 3, 2012 9:29:30 PM Ignore RAE344 Report Abuse First step to exporting our supply of natural gas and causing the price to go sky high.
cheapchickKY Champion Author Lexington Posts:3,997 Points:792,290 Joined:Jan 2011	Message Posted: Dec 3, 2012 9:08:30 PM Ignore cheapchickKY Report Abuse Interesting.