LNG VS.

GTL
LNG is essentially a physical change process converting natural gas to liquid for ease of
transportation while GTL is a chemical change process (Fischer-Tropsch Synthesis)
yielding naphtha, transportation fuels and speciality chemicals such as lubes and base-
stocks.

The comparison of LNG & GTL in terms of Performance, capital cost, operating cost and
derived product are described below :-

i. Performance:- The Carbon Efficiency (defined as 100 [(Carbon molecules in the final
product)/(Carbon molecules in Natural Gas Feed)]) of the GTL and LPG processesare
around 77% and 92% respectively. While the Thermal Efficiency (defined as 100 [(LHV
of Liquid Final Products) / (LHV of Natural Gas)]) of GTL and LPG processes are around
60% and 92%respectively.
ii. Capital Cost:-The indicative capital cost for LNG facility processing 1 BSCFD is estimated
around $ 2.4 Billion.The indicative capital cost for a GTL facility processing 1 BSCFD is
estimated at around $ 2.5 Billion.
iii. Operating Cost:-The operating costs for GTL are higher than for LNG primarily due to
the increased number of processing units and use of considerable amounts of noble
metal catalysts. The shipping costs for LNG however are higher than GTL, as operation of
LNG ships requires specific procedures and qualifications unlike commodity shipments
for GTL products.
iv. Derived Product:- A typical LNG facility processing 1 BSCFD will product approximately
7.3 MMTPA of LNG.Similarly a typical GTL facility processing 1 BSCFD will product
approximately 100,000 BPD of GTL products.
v. Unit Complexities:- The infrastructure of the LNG plant is lesser complex compared to
the GTL plant because GTL plant involves the catalytic reaction (F-T Process) and also
Product treating unit compared to LNG plant which contain only Liquefaction process.

At current scenario the GTL F-T technology is beginning to show commercial viability
whereas LNG has already been well established.
However, the decision to invest in LNG or GTL from a resource owners perspective depends on
many factors besides capital and operating cost, such as technology risks, plant availability and
overall company strategy.