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Feasibility of Commercial Production of Standard Fuel from Israeli Natural Gas (GTL)

The production of natural gas-based fuels using GTL technology is one of the existing alternatives that are on the agenda of the government for testing and evaluation, as well as other technologies for the production of substitute natural gas-based fuels.

The decisive advantage of the GTL process over the alternatives is that the substitute fuels generated using this technology have a chemical identity close to that of oil-based fuels and therefore do not require any changes in the conventional vehicles with internal combustion engines available today. This fact, as stated, constitutes a huge advantage, which translates into a higher economic benefit and proven and significant savings in scales of magnitude as compared to the alternatives examined. Considerable investment is still required, estimated in the magnitude of billions of dollars to establish the GTL plant.

This  current analysis focuses on an in-depth examination of the GTL alternative while reviewing the existing production processes, the review of major GTL plants in the world, the drivers for their success, the unique characteristics necessary in Israel, understanding the factors that support the establishment of a GTL plant in Israel, as well as on the analysis of the obstacles facing it, based on a variety of factors, including the geopolitical situation, reserves of natural gas in Israel, economic viability, environmental contribution, economic contribution, and other benefits. The study includes a model of the advisability of investing in Israel based on historical margin rates of oil versus natural gas and refers to the analysis of the economic viability as a function of gas prices and the options for future improvements due to the research and development that is currently conducted in the world. After the publication of the research results, an international tender by the Ministry of Energy was published, partially based on this study, awaiting investors.

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