Downstream gas processing opportunities arising from the 1990's quest for a quality environment

Over the last several years the former wart on your favorite daughter's nose (gas liquids processing) has become a most cherished body part, to paraphrase 1991 remarks of a U.S. gas processing leader. The dramatic recent spreads between liquids prices and the cost of feedstock natural gas have provided spectacular performance for processors. However, market prices for liquids will probably track petroleum. One day soon natural gas's inherent value will rise to parity with petroleum on a heating value basis. As petroleum demands will probably be flat in the foreseeable term, and natural gas prices will rise, something must be done to preserve gas processors' margins. Radical change in the formulation of U.S. gasoline presents many opportunities for gas processor to diversify into synthesis of upgraded derivatives of natural gas and liquids, which derivatives have high value-added characteristics. Issues relating to the selection of derivatives, the required technology, and capital project considerations are discussed in this paper