Large amounts of natural gas are available in sites where no commercially attractive use of the gas is possible. Because of its location, such gas presently has little value. One of the best possible uses is conversion of the gas first into methanol and then into gasoline. A major oil company has carried out much research in this direction that has resulted in a large and technically successful plant overseas. However, this plant is unattractive co y because the capital cost is too high; the operation would be economical only if crude oil were to sell at $48/bbl. Another company has proposed an improved scheme, but its capital cost is also too high. This project's objective is a much improved scheme that calls for much lower capital. Conversion of the gas to liquid products will be very attractive, once the process is developed. Methanol can be produced at a competitive price. High quality gasoline can also be made from methanol at a much lower cost than from $20/bbl crude oil. The present study will aim at determining the availability of equipment for attaining the conversion at different starting conditions for the natural gas. Sometimes this gas is developed at high pressure; so it is coproduced with crude oil and is then available at only a few atmospheres. Also, the composition of the gas and its amount can vary widely. At least five different situations will be studied in Phase I. Anticipated Results/Potential Commercial Applications as described by the awardee: This process should be the first (apart from liquefaction) to economically convert a very large amount of natural gas, available at a number of sites worldwide, into transportable liquids such as methanol and gasoline. The study will optimize the design for different qualities and amounts of natural gas.
