Greyrock Makes Final Investment Decision on GTL Facility
Greyrock Energy reported Tuesday that it has made a final investment decision for a small-scale gas-to-liquids facility that will be located near Houston.
The plant, which will be operational by year-end 2015, will produce synthetic diesel fuel from natural gas or natural gas liquids using Greyrock’s GreyCat catalyst and distributed GTL solution. The facility will be the first commercial facility based on Greyrock technology.
“Greyrock has built a modular conversion platform that positions us to successfully deliver this facility and additional small-scale GTL systems worldwide,” said Robert Schuetzle, chief executive officer of Greyrock, in a press statement.
The facility will utilized natural gas from the Eagle Ford play in South Texas, a spokesperson told Rigzone. This project is not converting flare gas, but the company is working with customers on applications that take flare gas and convert it into fuels.
The Sacramento, California-based company wouldn’t disclose the capacity for the Houston-area plant, but the company’s small-scale GTL plants can produce between 100 and 5,000 barrels per day of ASTM-certified transportation fuels, a spokesperson told Rigzone. The specific capacity varies depending on a customer’s specific needs.
The project is being funded by a consortium of investors led by Dallas-based Sterling Private Capital and Eagle Oil & Gas Co.
“In addition to the conversion of natural gas into fuels, we are very excited about the opportunity to convert NGLs, especially ethane, in geographies where ethane pricing is depressed and a challenge for producers to deal with,” said Pat S. Bolin, chairman, Eagle Oil & Gas Co., in a statement.
Greyrock operates a commercial demonstration plant in Toledo, Ohio.
The rise in unconventional exploration and production in North America has boosted U.S. oil and gas production, but also has resulted in an increase in the flaring of stranded natural gas assets. Some upstream oil and gas companies have been looking at ways to address the issue of stranded assets. Other companies such as Primus Energy and Velocys see stranded and flared gas as an opportunity for small scale gas-to-liquids technology.