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Permalink Reply by Mac Davis on June 27, 2009 at 13:09

I've come across a number of articles on GTL, but most of them have been "boosterism." It sounds like it has some definite potential, but the true viability is uncertain.

It's probably something worth keeping an eye on.

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Permalink Reply by sesport on June 27, 2009 at 20:21

After reading through the link I found ( looks kind of dated, though), it appears GTL works "neat" or mixed with diesel fuels for diesel engines in heavy duty vehicles. Because of the date (late '90's), I'm not yet sure if it's been applied to passenger vehicles. There are suggestions on the link for further search ideas.

interesting topic, thanks all - sesport :0)

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Permalink Reply by jffree1 on June 28, 2009 at 7:39

Jim, Do you know how the price of LPG (Propane) is calculated? I paid $2.40 a gal. for propane last week. That price is down from $2.90 last winter. At those prices LPG offers no "break" for the consumer.
My question is more about: How does mcf convert to gallon? Or is propane produced in "liquid" form in the processing/treating of natural gas? I'm a bit confused.

If natural gas is "liquified" for trans. fuel use, wouldn't that put the consumer in the very same boat they are in right now, re: gas prices at the pump? Or, am I missing something? It seems to me that the more handling, treatment, processing, etc... the more Joe Citizen is going to pay for the end product. I would think that would have some bearing on whether LNG is a viable option for vehicle fuel as a replacement for gasoline.

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Permalink Reply by Les Bamburg on June 28, 2009 at 8:36

Jffree, propane (and other hydrocarbons) is removed from produced natural gas before delivery into gas pipelines. Propane has completely separate pricing with Mont Belvieu, Texas being the primary trading & pricing point. Historically wholesale propane prices are ~ 70% of oil. So at $60 oil that would equal $1.00 per gallon. There is a large mark-up between wholesale and retail prices of propane to cover the cost, liability and profit associated with distribution.

Regarding LNG - one gallon of LNG is equal to ~ 81.4 Scf of natural gas.

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Permalink Reply by jffree1 on June 28, 2009 at 10:13

Thanks Les.

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