Synthetic Natural Gas (SNG): Technology, Environmental Implications, and Economics.

Author(s): M. Chandel and E. Williams

Published: January 2009

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Increasing demand for natural gas and high natural gas prices in the recent past has led many to pursue unconventional methods of natural gas production. Natural gas that can be produced from coal or biomass is known as “synthetic natural gas” or “substitute natural gas” (SNG). This paper examines the different technologies for SNG generation, the cost, and the environmental impacts of SNG. The paper identifies the conditions under which SNG production could be economically viable. The different pollutants can be better controlled in the process. The sulfur is emitted as hydrogen sulfide (H2S) and can be removed in the acid gas removal (AGR) system. CO2 is a byproduct of the coal to SNG process. In a low‐carbon economy, the development of the carbon capture and storage would be one of the critical factors in the future development of SNG. In the absence of carbon capture and storage and with carbon allowance price in future, the SNG could be expensive and may not be economically viable. Higher natural gas price and selling of CO2 to enhanced oil recovery could make the SNG economically viable.