Technology to converts natural gas into synthetic liquid fuels (the name is GTL, for Gas-to-Liquids) turns unmarketable reserves of natural gas into a form that overcomes transportation costs. Synthetic liquid fuels produced via Fischer-Tropsch (FT) chemistry, such as gasoline, kerosene/jet fuel, and diesel, have long been known as the cleanest fuels in the world. Unfortunately, the cost making them has never been competitive when compared to conventional process. Now, because of better catalysts and process improvement, FT may have finally found a competitive niche. Bunyu Island located off the Northeast coast of East Kalimantan, Indonesia, approximately 580 km north and East of Balikpapan. There are 10 existing fields in Bunyu Island managed by Pertamina. Bunyu-Nibung field was discovered with the drilling of well BN-01 in 1971, geologic evaluation discovered oil and gas reserves. Until now, 15 wells had been drilled and developed as oilfield although the gas reserve is large. This gas reserve undeveloped because of the limitations of gas markets. Based on 22 MMscfd feed gas for 20 years production, this technology can converting gas to 4,180 b/d synthetic fuel consist of gasoline 1,797 b/d, kerosene 477 b/d, middle distillate 765 b/d, and HSD 1,053 b/d. Economic calculation indicates that this technology considered economically with POT 3.11 years and IRR 47.42%. Although it is too remote for economic transportation, GTL would liberate Bunyu-Nibung gas reserves from the limitations of gas markets.

You can access this article if you purchase or spend a download.