Gas-to-Liquids

Overview

Nerd Gas Company is working to build a natural gas-to-liquids (GTL) conversion facility in Wyoming through a special purpose limited liability company, US GTL, LLC. The GTL facility will utilize a state-of-the-art modular design combining an existing processing technology with the well-known Fischer-Tropsch reaction. The proposed project will convert 10 mcf (thousand standard cubic feet) into 1 bpd (barrel per day) of clean diesel and naphtha.

Recent advances in horizontal drilling and hydraulic fracturing have engulfed the U.S. natural gas market, reducing natural gas prices and decoupling the traditional BTU trading basis of 6 mcf of natural gas to 1 barrel of oil. Natural gas to oil pricing ratios ($/mfc to $/bbl) have ranged from 25:1 to 50:1 since January 1, 2012. As exploration and production companies continue to drill for high valued oil and natural gas liquids, dry natural gas is becoming a low value byproduct and in some cases, an environmental nuisance. The US GTL proposed project leverages the price disparity between dry natural gas and liquid hydrocarbons.