Natural gas is a clean-burning and abundant energy resource, but much of it resides in locations remote from an economic means of transporting it to market. A logical solution for the problem would be to liquefy the natural gas, but this option requires very low temperatures and involves considerable costs. Another solution is to convert the natural gas into hydrocarbon liquids using chemical processing. Fischer-Tropsch technology converts the natural gas into "syngas" (a mixture of carbon monoxide and hydrogen) followed by reaction to liquid fuels. Unfortunately, Fischer-Tropsch technology is expensive. At Texas A&M University, a research team has conceived a radically new process for converting natural gas into hydrocarbon liquids. It is a "direct" conversion method that does not require producing syngas. The process is essentially three reaction steps and two separation steps to produce hydrocarbon liquids. The process consists of two reaction steps and one separation step to produce ethylene. The process can operate economically with natural gas flows of as low as 300 kSCMD up to any desired capacity. It is possible to use the GTL technology essentially anywhere natural gas exists from offshore platforms to relatively uninhabited onshore sites. This technology offers an alternative to flaring natural gas when pipelines do not exist. The liquids can be transported in liquid pipelines or in trucks or in tankers. Thus, it offers the opportunity to monetize a resource as well as to reduce undesirable emissions into the atmosphere. The GTE technology is more nearly suited to a location near an existing chemical industry that requires ethylene and/or hydrogen. SynFuels International Inc. has licensed the technology to commercialize it, and the company has constructed a pilot plant capable of processing 3 kMCMD. The cost of a commercial 300 kSCMD plant should be in the US$ 50-75 million range. The cost of the liquids should be about US$ 25-28 per barrel. Of course, larger capacity plants would require a larger investment but produce a less expensive product. (c) 2005 Elsevier B.V. All rights reserved.