LNC 0.00% 99.5¢ linc energy ltd

ucg production and costings

  1. 605 Posts.
    Does anyone have any idea what production rates and cost are for a UCG gassifier.

    I have worked back a few numbers, with some generous rounding, but hopefully it gives us a bit of an idea.

    PB quotes $2 /gj or 1 mcf of gas
    Velocity quotes 9 mcf/b of oil in its conversion
    Somewhere in the Linc information 10 gassifiers would be required for a 5000 bpd GTL plant
    This would mean each gassifier must be producing 4.5 (million cubic feet) mmcf /d.

    So for a production gasifier, 1000m horizontal burning for 3 years/1000 days, would produce 4.5 billion cf of gas. At $2 per 1 mcf, Capex + OPEX = $9 mil.

    So one gassifier producing 4.5 mmcfpd only needs $5.5/ mcf to pay off its total life time cost in 1 year. I think gas is selling for around $9/ mcf.

    Now I expect hope for corrections, but I know about and not sure of the figures is converting Syngas to pipe line gas, and does it matter. If the concept is to supply gas to a power station, a quick change of jets and the power station is converted. Only problem/advantage, you are in an captive market.
    If you convert Syngas to pipeline gas, there is extra capital, energy cost, but an open market with most likely higher price. Also no problems with load following as in captive to a power station.

    Look forward to any feed back
 
watchlist Created with Sketch. Add LNC (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.