Title: Integrated GTL power-generation technology: the optimal solution to natural gas exploitation in Nigeria

Authors: Adesola A. Adegoke, Maria A. Barrufet, Christine Ehlig-Economides

Addresses: Schlumberger Data and Consulting Services, 6601 North Broadway Extension, Suite 200, Oklahoma City, 73116, USA. ' Harold Vance Department of Petroleum Engineering, Texas A&M University, 3116 TAMU – 407B Richardson Building, College Station, TX 77843-3116, USA. ' Harold Vance Department of Petroleum Engineering, Texas A&M University, 3116 TAMU – 710BA Richardson Building, College Station, TX 77843-3116, USA

Abstract: Nigeria has an estimated 187 trillion cubic feet (Tcf) of proven gas reserves. Almost 50% of annual associated gas produced is flared or re-injected for enhanced recovery. Currently, the preferred option for exporting stranded gas is liquefied natural gas (LNG). However, the world LNG market is relatively small compared to middle distillates, and strongly driven by long-term and high risk contractual agreements. Gas-to liquids (GTL) is an emerging technology in gas exploitation with end products being useful in transportation, power generation and base chemical feedstock. The underlying objective is to build a business case for GTL as an alternative to LNG for Nigeria stranded gas reserves. Integrating GTL with commercial power generation improves the NPV of GTL projects by about 2-4% making this option clearly competitive with LNG. The analysis presents a robust and economic solution to gas exploitation in terms of technological and environmental factors scalable to supply and demand constraints.

Keywords: natural gas; gas-to-liquids; Nigeria; integrated GTL power generation.

DOI: 10.1504/IJOGCT.2008.020371

International Journal of Oil, Gas and Coal Technology, 2008 Vol.1 No.4, pp.425 - 443

Published online: 19 Sep 2008 *

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