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transfer systems similar to those for gasoline.  The steps for methanol production and distribution are shown in Table 3-10.

The following discussion covers the extraction and transport of remote natural gas for FTD and methanol production.  Then the details of FTD and methanol production are discussed followed by a discussion of fuel transport and distribution.

Table 3-10:  Methanol from Natural Gas Production and Distribution Phases

Phase

Process

Emission Sources

1

Extraction

Compressors, fugitive

2

Transport

Natural gas pipeline (compressors & fugitive)

3

Production

Fugitive emissions, vent gas combustion

4

Site storage

Fixed roof tanks

5

Transport to bulk storage

Pipeline (pumps & fugitive)

6

Bulk storage

Floating roof tanks

7

Transport to local station

Tanker trucks (engines & fugitive)

8

Local station distribution

Underground tanks, refueling vapors and spillage

3.6.1  Remote Natural Gas Production and Transportation

Both synthetic diesel and methanol have been produced from natural gas outside the United States.  Remote locations are the likely sources of natural gas for FTD and methanol in the future.

Natural gas is recovered and collected from oil and natural gas fields.  The gas is then transported by pipeline to processing facilities, which are usually located near the gas field.  For commercial natural gas, the gas is processed to remove propane, butane, moisture, sulfur compounds and CO2.  However, for FTD and methanol production.  CO2 in the gas improves the efficiency of the process.

Excess natural gas from oil production operations is a likely FTD feedstock and in some instances methanol.  Utilizing natural gas in this manner can eliminate flaring.  Flaring natural gas can be a safety problem and flaring the gas contributes to CO2 emissions.

When flared gas is used as a feedstock, no CO2 emissions from the natural gas feedstock or end product fuel are attributed to the FTD or methanol product.  If natural gas is extracted from locations that are not associated with oil fields or natural gas that would be reinjected into the oil well is used as feedstocks then CO2 related to the natural gas is attributed to the FTD or methanol fuel.

Table 3-11 shows the natural gas transport distances and mix of diverted flared gas and new gas that was assumed for the scenarios in this study.  These assumptions affect fuel-

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