FT-GTL UNLOCKS VALUE

FROM NATURAL GAS

Michael Goff, PhD
Technology Manager, Black & Veatch

Doug Miller
Director Oil & Gas Technology, Black & Veatch

Ken Agee
President, Emerging Fuels Technology

April 4, 2017
XTL Topics
Opportunity for associated/stranded gas monetization
Key factors
Technology available
Technology comparison
Fischer Tropsch Process
Conclusion
Black & Veatch Oil & Gas
LNG GTL

Ammonia/
Mini - LNG
Methanol

Mini-CNG Power

Gasification
Gas Processing
(including UCG)

Sulfur Recovery Floating LNG

PROBLEM
Associated/Stranded Gas
• Estimated 147 billion cubic meters of gas flared worldwide in 2015
• Stranded gas
• Demand to capture gas
• Monetize valuable resource
• Reduce emissions (carbon, VOC’s, soot, NOx, and PM)
• Meet increasing government regulations
• Utilize technologies that:
• Can be implemented quickly
• Are cost competitive
• Can handle variations in feedstock rate and composition
Flare Gas / Stranded Gas - Situation

Global NG reserves Substantial amount

increasing faster of global reserves
than consumption remain stranded

Considerable Transporting energy

amount of commodities in bulk
associated gas is liquid form is often
flared cost competitive
Why Flaring
• Technology is available, but economics and speed to
market are barriers
• Lack of infrastructure
• Location
• Changing composition
• Changing flow rate
OPPORTUNITY
Flare Properties
• More than 80% of flare sites flare <11,000 Nm3/hr
• Usually contains significant quantities of NGL
• Associated gas production can decline 50% the first year
• High intraday variability in gas production
• Gas composition changes over life of the well
• Gas pressure changes over life of the well
KEY FACTORS
Key Factors for Flare Reduction
• Successful integrated project economics
• Cost of reduced flaring vs lost oil production vs government penalties
• Capital cost control
• Standardization
• Repeatable production
• Simpler designs – required for smaller capacities
• End product philosophy – on-site use, distribution, transportation (i.e.,
blending with crude oil)
• Technology flexibility – fitting into the existing infrastructure
Key Factors for Flare Reduction
• Successful economics
• Natural gas feedstock costs
• Crude oil prices
• Product slate valuation
• Market capacity (to absorb proposed production)
• Technology maturity (risk, finance ability)
• Economy of scale (equipment cost, fixed costs)
• Product distribution / transportation (existing infrastructure)
• Qualitative drivers (i.e. environmental, flare reductions)
TECHNOLOGY
AVAILABLE
Black & Veatch Technologies Flare Reduction
OPTIONS FOR MONETIZING FLARE GAS

FLARE
Mini- Mini-power
BUSTER® CNG for short Mini-LNG for
methanol for onsite
GTL for distance long distance
for certain power
crude oil transportation transportation
markets generation
blending

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 Natural Gas to Liquids
Tailgas H2

Syncrude LPG
Oxidant/ Fischer Gas/Liquid Refining Naphtha
steam Tropsch Separation Diesel

Natural Sulfur H2 Water

Gas Removal Reforming CO
Tailgas Tailgas

Methanol CH3OH/ Methanol

Methanol
Synthesis Water Distillation

Water
TECHNOLOGY
COMPARISON
Comparison of Technologies
Capital Cost, Production Thermal Carbon Simple Payback,
million US$ Rate Efficiency, % Efficiency, % years

LNG 45 82 MTPD 85 85 8.3

CNG 16 50.8 MW 92 92 5.3

Power
25 19.4 MW 35 0 7.7
Generation

GTL 55 450 bbl/day 53 62 6.3

Methanol 55 124 MTPD 58 72 4.6

FISCHER TROPSCH
TECHNOLOGY
EFT Overview
• Established in 2007, privately-held
• Located in Tulsa, OK USA
• Extensive R&D lab optimized for
Fischer-Tropsch (FT) and product
upgrading catalyst and process
development
• Offering a full service
development & test facility,
catalysts, equipment & processes
and consulting
• Technology licensing
Fischer Tropsch
• Commercially proven process invented in the 1920s
• Carbon containing feed reformed to produce mixture of H2 and CO
• Produces a mixture of varying hydrocarbon chains that are mostly
paraffinic
𝒏(𝑪𝑶) + (𝟐𝒏 + 𝟏)𝑯𝟐 ⇌ 𝑪𝒏𝑯𝟐(𝒏+𝟏) + 𝒏(𝑯𝟐𝑶)
• This mixture can be upgraded into a variety of products using normal
refining processes
Fischer-Tropsch Product Distribution
Naphtha Diesel

Wax

21
FLARE BUSTER
• Concept:
• Simplified GTL for stranded
and flared natural gas
• Pumpable syncrude
• Self-sufficient
• Easy integration with oil
production
• Patented technology
• AFB F-T reactor/catalyst system
• 500-1000 BPD (initial sizes)
• Modular design – skidded,
truckable and moveable
• Global implementation
• Product upgrading option
• Variety of transportation fuels
FLARE BUSTER® is a registered trademark of EFT
FLARE BUSTER 
• F-T expertise with multiple feedstocks
• Proven commercial F-T reactor/catalyst system
• Significant product upgrading capabilities
• Process design and simulation expertise
• Significant IP position
• In-house R&D and testing facilities
• Repeatable, module-based designs
• EPC/technology wrap
Natural Gas to Liquids Plant

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Natural Gas to Liquid Hydrocarbons
One Liquid
Product
ASU (pumpable syncrude)

Syngas
FT Product
NG Cleanup Production and
Synthesis Upgrading
Cleanup

Natural Gas Process Integration - Utilities

No External Utilities – Self Sufficient

25
Black & Veatch Collaboration with Emerging Fuels
Technology
EFT licenses process technology Black & Veatch provides EPC
and supplies catalysts for Fischer- services for GTL Projects using EFT
Tropsch synthesis and product process technology
upgrading • 500 BPD FLARE BUSTER®
• Base oils Syncrude – skidded plants
• Diesel/Jet Fuel • 2,000 to 5,000 BPD diesel/jet fuel
• Drilling Fluid plants

• Solvents • 5,000 BPD specialty products –

base oils, solvents, and drilling
• Syncrude fluid plants
CONCLUSIONS
 North American Oil & Gas Market Dynamics
…Rapid Changes Realized

2009-2014 rapid production increase 2014-2015 crude oil price collapse

from US shale produced a large price
difference between natural gas and
crude oil which made GTL very
attractive
However…
narrowed the price gap between
natural gas and crude oil and has
substantially reduced GTL profitability
GTL MARKET DRIVER SHIFT
Natural Gas vs. Excess Increasing World Increasing World
Crude Oil Capacity Deficit of Fuel Oil due flaring reduction
to lighter crudes and favors lowest cost
• Reduced price gap favors
transportation fuel solutions
higher value products
emissions restrictions
• Fertilizer – Ammonia- • Natural gas associated
(marine, plane, rail,
urea with crude oil
truck) favor clean fuel
• Base oils for production is flared or
substitutes
lubricants (EFT FT) sold at low price as
• FT Diesel/ Jet Fuel byproduct
• Methanol (EFT FT)
• LNG
• Methanol
For any questions contact:
Michael Goff Mark Agee
Black & Veatch Emerging Fuels Technology
Email: GoffMJ@bv.com Email: magee@emergingfuels.com