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Journal of Australian Energy Producers
RESEARCH ARTICLE

AUSTRALIAN GTL CLEAN DIESEL: A STRATEGIC OPPORTUNITY FOR AUSTRALIA’S STRANDED GAS RESERVES

W.G. Higgs and P.E. Prass

The APPEA Journal 42(2) 121 - 139
Published: 2002

Abstract

Australia’s lack of gas supply infrastructure and market opportunities means that in the northwest of our nation more than 100 trillion cubic feet of gas remains uncommitted to customer contracts.

Because of Western Australia’s relatively small domestic gas markets and the long transport distances to larger markets, the belief has been that only the LNG industry has the scale to monetise the large volumes of gas required to underpin greenfield developments and expansion of gas supply infrastructure.

Changing fuel specifications around the world, combined with the limited opportunities for new LNG contracts, has renewed interest in gas-to-liquids (GTL) technology as an alternative to crude oil refining for a source of clean and efficient transport fuels. GTL is an exciting new market opportunity for Australian gas.

Exploration interest in Australia appears to be waning. Declining opportunities for oil discoveries and the lack of markets for natural gas make investments in Australia’s upstream sector unattractive compared to other locations around the world.

In addition, Australia has dwindling crude oil supplies and faces the prospect of increasing reliance on imported crude oil and refined products. An Australian GTL Clean Diesel industry can help overcome these hurdles by creating a designer blendstock and a valuable new GTL Clean Diesel export industry.

A GTL Clean Diesel industry would not only help resolve many of Australia’s current upstream and downstream problems in the petroleum industry, but would also provide massive economic benefits to Australia.

This paper will look not only at the making but also the marketing of this fuel of the future.

https://doi.org/10.1071/AJ01064

© CSIRO 2002

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