Executive Summary/ConclusionsIn principle, syngas (primarily consisting of CO and H 2 ) can be produced from any hydrocarbon feedstock, including: natural gas, naphtha, residual oil, petroleum coke, coal, and biomass. The lowest cost routes for syngas production, however, are based on natural gas, the cheapest option being remote or stranded reserves. Economic considerations dictate that the current production of liquid fuels from syngas translates into the use of natural gas as the hydrocarbon source. Nevertheless, the syngas production operation in a gas-to-liquids plant amounts to greater than half of the capital cost of the plant. The choice of technology for syngas production also depends on the scale of the synthesis operation. Syngas production from solid fuels can require an even greater capital investment with the addition of feedstock handling and more complex syngas purification operations. The greatest impact on improving the economics of gasto liquids plants is through 1) decreasing capital costs associated with syngas production and 2) improving the thermal efficiency with better heat integration and utilization. Improved thermal efficiency can be obtained by combining the gas-to-liquids plant with a power generation plant to take advantage of the availability of low-pressure steam.