1. Gas To Liquids Test Facility
Good morning my name is Shane O’Leary and I’m the GTL Program Manager for BP’s Gas To Liquids program here in Alaska.
What I would like to today is give you an update on the construction of the TF – some of you have been or are going on the field visit and will get a first hand view
Also a little bit about where the GTL option fits with the other options we are looking at for gas monetization in Alaska

2. GTL Process
Process Chemistry
BP GTL Program

3. GTL Background
BP has been working to advance GTL technology since mid-1980s.
BP’s primary focus reduces reformer cost via Compact Reformer design
( 60% of total GTL cost) .
Next step: Complete demonstration of new technology at GTL Facility.
Now some brief background on our GTL program
$300 MM to date
BP GTL Program

4. Gas Commercialization
LNG, Re-injection, Power, Pipeline
(CH4)
Acetic acid
SYNGAS
Formaldehyde
(CO + H2)
MTBE
Diesel
Additives
Methanol
Syncrude
Hydrogen
Fuel Cells
Ultimate goal – low cost syngas.
If we can make syngas cost effectivelt, it could open up all kinds of possibilities arouind gas (not just FT syncrude), and a whole new commercializtion optio to complement, LNG, pipelines, reinjection.
Our focus very much syngas – not FT per se.
Ammonia
Olefins
Fuel Cells
Green Fuels
DME
Urea
Acrylonitrile
Diesel
Fuel
Polyethylene
Power
Generation
Ethylene Glycol
Alpha-olefins
LPG
Alternative
BP GTL Program

5. Environmental Benefits of GTL Products
Diesel
No sulfur
No Nox
No aromatics – reduces soot
Naphtha
Almost purely paraffinic, low aromatics
Excellent chemical feedstock
Jet Fuel
No aromatics
No sulphur
Energy density lower than conventional jet fuel, need further testing
BP GTL Program

6. GTL Test Facility Objective
To demonstrate BP/Kvaerner new technologies (Compact Reformer
& F-T Catalyst) to provide confidence for building commercial scale GTL facilities.
Project Scope
Converts ~ 3 mmscfd of natural gas to 300 bpd of syncrude.
Process consists of:
Compact Reformer (proprietary BP/Kvaerner design produces syngas).
Fischer-Tropsch Converter (proprietary BP catalyst produces paraffin wax).
Hydro-cracker (commercially available technology produces syncrude).
BP GTL Program

7. GTL Reformer Size Comparison with Conventional Steam Reformer
Blue: World-scale reformer
Red: Equivalent Compact Reformer
BP GTL Program

8. GTL Test Facility Environmental aspects – trees buffer/transplant.
Recylcling excess H2
BP GTL Program

9. Convertor
BP GTL Program

10. Compact Reformer
BP GTL Program

11. BP GTL Program

12. GTL Test Facility Cost Schedule
Total Project Cost of $86 million with about $64 million spent through July 2001.
Schedule
Started process unit work in Feb (permits received).
Plant start-up planned for 1Q / 2Q 2002.
5 Year Plant Life Estimated – maybe longer to test new technologies
BP GTL Program

13. GTL Test Facility Benefits to Local Economy
About $40 million of expenditures are expected to be spent in Alaska:
Permanent plant equipment and materials
Facility construction (Labor, Materials, Construction Equipment, etc.)
Additional BP/Kvaerner Staff
At peak construction, anticipate creating between 150 to 200 jobs.
During Operations Phase, approximately 20 Operations and Testing Team Staff, Maintenance and Trucking personnel.
BP GTL Program

14. BP GTL Program

15. Beyond GTL-TF SOFC Status
Agreement signed with Seimans Westinghouse to purchase 250kw natural gas fuel cell.
$ 6.5 MM project
Located at GTL-TF / Power Administration and Warehouse Buildings
100kw to Homer Grid
$2 MM DOE grant
There are about 35 TCF of proven reserves on the north slope. Most of these are at prudhoe (26 TCF) and Pt Thompson (8tcf)
BP’s share is about 30 percent with Phillips and ExxonMobil holding most of the balance.
Important to remember that there has been no exploration for gas over the past 30 years – because no way to monetize the gas. Prudhoe gas reinjected for pressure maintenance.
As a gas export project becomes a reality,
More gas will be explored for.
BP GTL Program