Cerilon Progresses Gas-to-Liquids Facility in North Dakota

Calgary-based Cerilon Inc. has successfully completed Front-End-Loading (FEL 2) for its gas-to-liquids (GTL) facility in North Dakota.

The company is moving into the front-end engineering design (FEED) phase, the last stage before it makes a final investment decision (FID) for its foundational GTL project, which is expected in mid-2026.

Cerilon said in a news release that it is developing an innovative GTL facility that will transform natural gas into unique, high-performance synthetic products, including industry-leading Group III+ base oils, ultra-low sulfur diesel and naphtha.

During the FEL 2 engineering stage, important de-risking actions and decisions were taken that improved the accuracy of the project schedule and cost estimates, Cerilon said. The company selected Worley to complete the project's FEL 3 FEED scope, which will include smart manufacturing operations design and digital integration. Cerilon forecasts the start of the project in 2028, with the facility fully operational in 2029.

This facility, which according to Cerilon is the first large-scale, natural gas-fed GTL facility in North America, will also feature carbon capture and sequestration. The 24,000 barrel-per-day facility will be built near Trenton, North Dakota.

Cerilon is seeking regulatory approvals for the facility and a phase two facility of similar capacity on the same site. Cerilon has submitted all major permit applications and anticipates that the regulatory reviews will be complete by the end of 2024.

The company said it has established global partnerships to deliver the foundational GTL facility, which will be followed by replicated GTL facilities.

"Our progress has been enabled by the proven capabilities of our team and partnerships," Cerilon CEO Nico Duursema said. "The positive momentum we've achieved on the project thus far supports the delivery of this and future projects. All of this aligns with our long-term vision to provide energy transition at scale for the benefit of industry, communities and the environment”.

According to the company’s project overview, GTL-derived products are higher quality and burn more efficiently than their crude oil-based counterparts. Cerilon’s ultra-low sulfur diesel is virtually odorless, non-toxic, more readily biodegradable, and can be stored longer, making it suitable for use in sensitive or confined environments, like marinas or underground mines. Cerilon will be the first producer of Group III+ base oils in North America. The inclusion of pre-combustion carbon capture will make the project the lowest-carbon footprint GTL facility in the world, Cerilon stated.

Cerilon said it has built positive momentum over the past 14 months by progressing Cerilon GTL North Dakota and laying the groundwork for accelerated future company growth. The advancements include selecting world-class partners and finalizing agreements with leading technology licensors. The company also continues to progress commercial and financing agreements, according to the release.

Cerilon is an international, privately-held corporation, focused on developing and managing a portfolio of energy transition, chemical and professional services companies.

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