Sub-0;
Just like Alberta beef.
I'm glad that I posted the above before someone else posted the GTL links in the 2008 group III thread.
Often people wonder why the price of LPG follows the price of CNG. The reason is that several USA power plants have switched from coal fired to natural gas or a combination of the two.
That was done to reduce So2 emmissions and the resulting acid rain caused by burning medium sulphur coal and residual fuels.
The price of natural gas is tied to its energy content. The producers of natural gas found it more profitable not to remove the heavy ends that make up LPG and instead ship or pipe the CNG "wet".
The LPG market tightened up, and the CNG marketers made more money when the demand for natural gas went through the roof.
The price of LPG doubled, and automotive use dropped 10% per year for the last six years.
There is no doubt that GTL plants will put another demand on CNG supply, raising the price of the feed stock again.
Good for Alberta, the other CNG producing regions, and the enviroment, bad for your home heating and electricity budget.
Ralph, if he is so in-Kliened, needs to build some coal fired power plants and use up some of those huge reserves of low sulpher coal that are now only exported to the Pacific rim, and ease the shortage of CNG.
How will the GTL plants help the Alberta economy?
By value-adding to a natural resourse.
How will the GTL plants hurt PAO and group III engine oils?
By producing base stocks that cost half as much as the group IIIs and perform as well as PAOs in 99% of the applications.
How will the GTLs help the enviroment? By offering a cleaner burning diesel and industrial plant fuel.
How will the GTL fuels help the railroads and trucking industry?
By producing cleaner burning fuels that reduce engine wear, and GTL fuels may produce fewer emissions without resorting as much to HP and efficiency robbing engine controls.
Good-bye PAO vs group III arguments, hello GTL base oils.
Coffee?
[ October 23, 2003, 03:57 PM: Message edited by: userfriendly ]