Thought I would add a little to your comment on economics. At current gas prices UCG to Liquids has a $30 cost advantage over GTL.
It takes about 10 GJ's of Syngas to produce a barrel of ULSD.
So for UCG GTL this means $10 in Syngas.
For GTL it takes about 14 GJ's of Natural gas to produce 10 GJ's of Syngas. (The reforming process is exothermic).
So for GTL Raw material costs at say $3 / GJ is $42. Big difference.
Selling price for ULSD is much higher than WTI. WTI is artificially low at the moment due to capacity constraints at the hub in Ohio. A new pipeline under construction will see WTI converge with the world price of Brent.
ULSD trades on Nymex and is currently around $140/ barrel. (New York Harbour and Gulf Coast contracts).
Economics for UCG are way better than GTL with no exposure to valatile natural gas prices.
LNC Price at posting:
$1.29 Sentiment: LT Buy Disclosure: Not Held
