Honeywell has developed a method of making ethylene from methane instead of the more costly ethane.
This could have dramatic affects on the industries if it is scalable. It would drive up demand for dry gas and lower the demand for wet gas. It may cause delays in the decision to build the Shell cracker plant and others.
The article says it is about 40% cheaper to make rubber and plastics which greatly reduce the costs for a large number of products. They did say it will be several more years of research and design before it is commercially feasible.
This is big news................could/should drive NG prices back up......still gonna be a few years though for the technolgy to be commercially proven.
This is really big news. I think this is the stall of the shell cracker plant. Dry gas will be back soon.
Methane is appox. 85 to 88% of the elements that make up natural gas. what do you do with the15% high btu left over propane butane ethane flare them off in the air? To high of btu to sell to a pipeline co.
What do you do with the Ethane? Ethane increases btu's most pipeline co. will not take any gas over 1100btu's
This is this most comprehensive article I've read about wet gas processing and distribution. All of this data has been released separately by the various companies involved, but this is the first attempt I've seen to consolidate all the data into one document. BTW, interesting map.
Processing and distribution is the critical last element necessary to make the Utica wet gas zone a profitable reality for all parties.
So from my understanding there is a pipeline in the mix being thought out, and can transport the ethane dispite the high btu.
Their is more than one pipeline in the works for ethane. the pipelines will be product lines only, not for ethane and natural gas
Honeywell's announcement is very cautious, citing several years of "development and scale-up" of the process. I've spent most of my career in product and process development. As a former colleague of mine was fond of saying about projects such as this, "There is many a slip between cup and lip".
Great idea, but we're not going to be seeing it anytime soon. The good news is that wet gas shale lessors benefit whether or not this becomes a reality!
I have worked for Honeywell and they do not stick their necks out for projects unless they no their is a future. Honywell is to big. I will be buying more stock in Honeywell.
And Honeywell has a terrific track record for successful product development. This one will be a massive undertaking.
I said it will take several years to develop. But Shell and others will be watching closely to see how this will impact their decision to build cracker plants. Shell has stated it will be at least two years before they even decide to finance the project. This will give them time to analyze Honeywell's progress on the process and decide if they want to risk over $2 billion.
I would think that ethane will still be a valuable product even if this process is successful. These chemical companies are geniuses at finding new uses for organics.