Methanol will cause blindness if consumed

From an Article by Jamison Cocklin, Natural Gas Intelligence, October 15, 2018

Houston-based Primus Green Energy Inc. is finally moving forward with plans to develop a small-scale gas-to-liquids (GTL) facility in West Virginia after partnering with an international engineering, procurement and construction firm to improve the project’s economics.

The facility, which is planned to be at the site of Covestro AG’s chemical production facility in New Martinsville, was initially slated to begin operations in 4Q2017. Service was later delayed until 2018, but Primus said this month operations would now start in 2020, thanks partly to a partnership with Jereh Oil and Gas Engineering Corp.

“Primus has long envisioned development of a methanol plant in the Marcellus region, but it is our relationship with Jereh and other strategic partners that has resulted in substantially improved economics and will allow us to move the project forward,” said Primus CEO Steven Murray. “With gas supply and methanol offtake agreements from an integrated oil and gas company, assistance from Sumitomo Mitsui Banking Corp. to arrange project debt financing, and design work by Koch Modular Process Systems, the project economics are very strong.”

Similar small-scale GTL facilities, which have smaller and more efficient equipment, have been announced for the Appalachian Basin, but none have entered service. The modular plants are said to be deployed more easily, making them a cost-effective alternative to larger refinery-sized plants.

Primus said the modular units would be fabricated off site by Jereh and Koch Modular, then be transported to the project location for final assembly. The company has developed a technology for converting various feedstocks, including wellhead and pipeline natural gas, natural gas liquids and synthesis gas, into methanol, gasoline and diluent.

The facility would produce about 160 metric tons (mt) a day of methanol, using as little as 6 MMcf/d of feed gas. The technology has been tested at a scale plant in Hillsborough, NJ.

The facility would be the second of its kind to enter operations if it starts up as planned in 2020. US Methanol Corp. broke ground last year on a similar methanol plant that would use Marcellus Shale gas. That plant is being built in Institute near Charleston, where Dow Chemical Co. has a facility.

While the Primus plant would produce about 58,400 mt/year (mty), US Methanol’s facility is larger, with a capacity of 200,000 mty

Methanol is used in a wide-array of products including antifreeze and solvents. It’s also an important product for the petrochemical industry, which is expected to grow in Appalachia once ethylene and polyethylene production begins at ethane crackers that have been proposed or are under construction in the region.

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China tariff on US methanol heats up the trade war

Conventional GTL Processing

Velocys Postpones Northeast Ohio GTL Facility, Citing Project Financing Challenges

From an Article by Jamison Cocklin, NGI News, July 7, 2016

United Kingdom-based Velocys plc said Thursday that it would postpone the development of its small-scale 5,000 b/d gas-to-liquids (GTL) plant in Northeast Ohio, citing the commodities downturn and the effects it’s had on the company’s ability to raise capital for the project.

“Given the challenges in raising equity for capital projects of this nature at present, and in order to defer costs, Velocys has put its development of Ashtabula on hold, pending reassessment as part of the broad review of the strategy of the business that the company is currently undertaking,” Velocys said.

The company acquired Houston-based Pinto Energy LLC in an all-stock deal in 2014. Pinto first announced the GTL facility in Ashtabula, OH, in 2013. The facility would be located on an 80-acre site near ports and refineries on Lake Erie and would convert Marcellus and Utica shale natural gas into specialty products such as solvents, lubricants, waxes and transportation fuels.

Velocys, which develops, licenses and supplies small-scale GTL technology, had said early last year that it would soon make a final investment decision on the project. The company said an analysis of the wax market conducted in the first half of this year showed that the plant still remains economically viable, but didn’t say when it might consider moving forward with development.

Velocys formed a joint venture in 2014 with Waste Management Inc., NRG Energy Inc. and Ventech Engineers International LLC to develop GTL facilities in the United States, Canada, the UK and China. The JV broke ground last year for the Envia Energy GTL plant in Oklahoma City at Waste Management’s East Oak Landfill. That plant will use landfill gas to produce clean diesel fuel, synthetic waxes and naphtha.

Velocys said Thursday that construction at the site is ongoing. All modular process units, cooling towers and other major equipment have been installed. Velocys has sent a team of its engineers to the site to aid Ventech, the engineer, in the plant’s start-up and commissioning. Velocys added that it continues to pursue other opportunities in the United States and said it has completed its part of an engineering study for a national gas company in Central Asia for a project there.

Velocys technology is in the early stages of commercialization.Its equipment is significantly smaller, which enables the modular plants to be deployed more cost-effectively in remote regions that wouldn’t otherwise be able to accommodate larger refinery-sized GTL facilities that have been built on coastlines overseas. Just a handful of the larger, conventional GTL plants are operating globally, with capacities ranging up to 140,000 b/d. Those facilities can cost billions of dollars to construct, while smaller-scale facilities cost about $100 million, according to an estimate provided last year by Velocys.

Other GTL plants have been proposed for the Appalachian Basin in recent years, but none have been completed. They include Marcellus GTL LLC’s 84,000 gallon/d facility in Blair County that was announced in 2013; EmberClear Corp.’s 500,000 gallon/d plant in Southeast Pennsylvania that was announced in 2014, and Primus Green Energy Inc.’s proposal this year to build a small-scale GTL plant somewhere in the basin that would use Marcellus Shale gas to make methanol.

EmberClear dropped its plans last year for its Southeast Pennsylvania plant, citing administrative concerns and local opposition. Marcellus GTL’s facility is expected to be complete this year, according to the company’s website.

See also: www.FrackCheckWV.net

Marcellus Shale Gas  to be Converted to Hydrocarbon Liquids

From an Article by Walt Frank, The Altoona Mirror, November 13, 2013

Marcellus GTL LLC of Gilberton announced plans in March to build a plant that would turn natural gas into gasoline and propane, and they hoped to begin construction by the end of this year. However, construction won’t begin in Duncansville, PA, until 2014.

“That was typical project optimism. We had hoped to get all of the supporting contracts in place. It has taken longer than we envisioned. We are finalizing the contracts and getting the financing in place,” said Paul Hamilton, Marcellus GTL executive vice president, for this $200 million facility.

The company officials now hope to begin construction in the second quarter, between April and June. ”Starting then will coincide with drier weather, and it will be easier to do the ground work,” Hamilton said. “We expect the project to take about two years. We hope to be up and running in the first quarter of 2016.”

The project will be built near the Duncansville intersection of Route 764 and Old Route 22 on land that straddles Allegheny and Blair townships. The land is in a Keystone Opportunity Expansion Zone (KOEZ) which will allow for seven years of real estate tax abatement.

The company had hoped to start by the end of this year because that was when the KOEZ was due to expire, but it has been extended through the end of 2020, said Marty Marasco, president and CEO of Altoona-Blair County Development Corp.

The Clean Energy Center will take natural gas and produce about 84,000 gallons per day of regular gasoline and propane to be marketed locally as transportation fuel and for heating use. The project will create 30 jobs.

Hamilton said the company continues to talk to natural gas companies about hooking onto one of their large natural gas lines in the area and to trucking companies to transport its products from the facility via tanker trucks.

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Odebrecht Exploring Cracker Plant Investment in Wood County, WV

From the Parkersburg News and Sentinel, November 14, 2013

PARKERSBURG, W.Va. – Gov. Earl Ray Tomblin and Odebrecht announced today Odebrecht will explore the development of a new petrochemical complex in Wood County. The complex, “Ascent” — Appalachian Shale Cracker Enterprise — would include an ethane Cracker, three polyethylene plants and associated infrastructure for water treatment and energy co-generation. A purchase option on the anticipated project site in Parkersburg has already been secured.

“Although we realize much work remains to be done, this announcement of a potential project is tremendous news for our state and our region. I appreciate the hard work of my team from the Development Office and the Ascent team members who have come together to explore this investment. I look forward to working closely with them to help bring the project to fruition,” Tomblin said.

Ascent’s feasibility will depend on several important variables, including the contracting of long-term ethane supply, as well as financing, regulatory approvals, and appropriate governmental support.

Odebrecht will lead Ascent’s investment and financing, as well as the operation of water and electric utilities. “Project Ascent fits within Odebrecht’s commitment to be a partner in development in the regions where we operate,” stated Fernando Reis, CEO of Odebrecht Environmental. “Moreover, Ascent fits into the strategy of our Utilities division, which seeks to invest and manage industrial assets.”

Braskem would be responsible for petrochemical-related activities as well as the commercialization of the polyethylene after the investment is completed. “As the United States’ leader in polypropylene production and with a significant footprint already in the region, we are excited about today’s announcement,” stated Fernando Musa, CEO of Braskem America. “Should Ascent materialize we look forward to serving our clients in the polyethylene market.”