Low natural gas prices have helped in driving new attention and interest to natural gas monetization options, which will play an important role in spurring natural gas demand. One promising gas monetization option is the production of methanol using small-scale plants. Conceptually, small-scale methanol plants offer a number of advantages.
The first advantage is that methanol prices track those of oil thereby providing a significant arbitrage to exploit if the natural gas feedstock is available as cheaply as it is in the U.S. Second, small-scale methanol plants have lower capital costs in comparison to traditional large plants making them attractive to a wider range of investors. Third, methanol is a liquid chemical product that can be transported easily and cost-effectively offering the ability to monetize natural gas from fields that are remote, have limited pipeline connectivity, or have relatively poor production or economics. Finally, methanol is a versatile chemical with multiple applications and end-uses.
The Shale Gas Innovation & Commercialization Center, an initiative of Ben Franklin Technology Partners, commissioned ADI Analytics LLC to prepare a white paper with an independent assessment of the technical and economic viability of small-scale methanol plants.
– Uday Turaga
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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
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