Low Nat Gas prices = another glut of GTL for base oil?

[addyguy]

Just saw in the news that natural gas prices have dropped very, very low due to a warm winter. Producers are sitting on stuffed storage sites.
Wonder if the production of GTL base oils will ramp up, and will start being used in a lot more oils due to its cheapness?

 

[Rand]

I'm surprised even with the warm temps I felt exporting would keep the prices from sinking to extreme low..
Edit:
Oh I see the president basically lowered gas prices.. by pausing approvals on new LNG export terminals.

 

[Foxtrot08]

Already a glut of base oils on the market.


It’s already affecting prices I see. (Ultra wholesale.)

 

[LenZee]

Just saw in the news that natural gas prices have dropped very, very low due to a warm winter. Producers are sitting on stuffed storage sites.
Wonder if the production of GTL base oils will ramp up, and will start being used in a lot more oils due to its cheapness?

I wonder how much motor oil you get out of a million btu of nat gas.

 

[ripcord]

I'm guessing that the feed stocks are only a small part of the cost of creating GTL lubrication products.

 

[MolaKule]

Some info on GTL production and the gasses needed for same:

GTL Base Oil Synthesis

The GTL Group III+ Base Oil Synthesis Process (A Summary derived from various Patents) by MolaKule The Gas-to-Liquid process is executed primarily by using a Fisher-Tropsch process https://www.netl.doe.gov/research/carbon-management/energy-systems/gasification/gasifipedia/ftsynthesis whereby...

bobistheoilguy.com

 

[SubLGT]

Produce gasoline from the natural gas?

https://www.greencarcongress.com/2024/02/20240214-verde.html

.....The proposed facility, which is to be located in Martin County, Texas in the heart of the Permian Basin, could serve as a template for additional natural gas-to-gasoline projects throughout the Permian Basin............

......Verde Clean Fuels is a renewable energy company focused on the development of commercial production plants to convert syngas, derived from diverse biomass feedstocks, such as yard waste, agricultural waste, and sorted municipal solid waste, as well as stranded or flared natural gas (including renewable natural gas) into gasoline through its proprietary liquid fuels technology, the STG+ process.

 

[yowps3]

Believe Shell does not pay for the gas extracted at Pearl GTL

 

[kschachn]

Yes a worldwide glut would be irrelevant since there was already a “glut” in the stranded gas that’s used. It would have been otherwise flared.

And GTL synthesis plants are hideously expensive.

 

[addyguy]

Hmm, I see, didn’t know about them using ‘free’ stranded gas.
It will still put pressure on them to use up this stranded gas faster; as it will start ‘bumping into’ stranded commercial gas that also isn’t moving.

 

[mr_boring]

Just saw in the news that natural gas prices have dropped very, very low due to a warm winter. Producers are sitting on stuffed storage sites.
Wonder if the production of GTL base oils will ramp up, and will start being used in a lot more oils due to its cheapness?

I got robbed. My gas bill was 20 bucks more that same time last year.

But my own fault, I had a shower cartridge go leaky and ignored it for a month until it finally stuck about 1/4 open on a Saturday morning.

PP was up 3 bucks from 23 to 26 in the Mart last night. I have 2 changes on hand but that made me go "huh"

Now costs what UP cost when it was Mart available.