Continuing in its effort to find a way to develop stranded natural gas economically, Conoco has taken a major step toward commercializing its proprietary technology for converting natural gas to liquids with the delivery and installation of the first production modules at the company’s gas-to-liquids (GTL) demonstration plant under construction in Ponca City, OK.

The GTL technology would make it possible to economically develop natural gas reserves that have no viable market in the surrounding area. By converting the natural gas into liquid petroleum products, transportation to market becomes cost-effective. Conoco said the 27,000-pound modules stand 13-feet high and 21-feet long. The modules are the first of 58 to be delivered and installed for the $75 million project.

“We are right on schedule,” said project manager Tim Martin. “The weather has been cooperative for most of the winter and we expect to have the project completed later this year.”

The demonstration plant will convert 4 MMcf/d of natural gas into 400 b/d of sulfur-free diesel, kerosene and other products. Conoco said it will use the engineering data and performance analysis to design a much larger commercial plant.

“With an estimated 3,000 Tcf of stranded natural gas worldwide, the business opportunity for a company with a viable commercial gas-to-liquids technology is tremendous,” said Jim Rockwell, Conoco manager, gas-to-liquids. “The GTL demonstration plant is a big step toward positioning ourselves to capitalize on this market.”

The company said that more than 80 scientists and engineers from 18 different countries are working on Conoco’s gas-to-liquids program in Ponca City.

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