FT: Gas to liquids: Launch pads proffered for small-scale GTL plants

A process famed for keeping German tanks running during the second world war is set to revolutionise the fortunes of US natural gas producers, or so the evangelists of small-scale gas-to-liquids plants believe.

The Fischer-Tropsch process, which uses chemical reactions to alter the composition of gas molecules and yield a high-quality, oil-like liquid, has long been associated with isolated regimes desperate for access to oil.

The modern-day adopters of the technology hope to bring it to the US, one of the most oil-rich countries in the world and where production is rising faster than at any time in history. The US is also in the throes of a shale boom and has an even bigger surfeit of natural gas, which has weighed on prices.

“In the US, a lot of gas is coming out of the ground at a declining price, so if you can convert it into oil you can get a step up in value,” says Nicholas Gay, chief executive of CompactGTL, an Oxfordshire-based company that is developing small-scale gas-to-liquid plants.  MORE