SNG From Coal --Getting A Project Off The Ground

Since the late 60's, planners at American Natural have known that natural gas supplies from traditional sources will be insufficient to maintain a consistently high level of service in the near future. This dwindling of traditional gas reserves will force American Natural and other gas companies to seek new and more exotic sources of supply. In recent years a number of alternative supply sources were considered, including arctic gas, LNG, and SNG based on naptha, LPG and coal feedstocks. Several combinations, all of which included SNG from coal were selected as the most suitable alternative sources of gas supply for American Natural, and thus our company embarked on the formation of a coal gasification project in the early 70's. Work began with the evaluation of available coal supplies in the United States in late 1970. Western North Dakota was selected for several reasons: large contiguous reserves of lignite were available near the surface, similar to German brown coal for which the Lurgi gasification process was originally developed; the conditions for land reclamation in the area are favorable; and the people in the area have a positive attitude toward well ordered development.