Calumet becomes JV partner in commercial GTL project in Louisiana
The plant in Lake Charles, Louisiana, which is expected to be operational by late 2015, has a total estimated cost of $135 million. The brownfield plant will be owned and operated by Juniper GTL.
Calumet Specialty Products announced its investment as a
joint venture partner in the construction
of a commercial
gas-to-liquids (GTL) plant that is expected to produce 1,100
bpd of refined products, including waxes, drilling fluids,
distillate and naphtha, from natural gas.
The plant in Lake Charles, Louisiana, which is expected to be
operational by late 2015, has a total estimated cost of $135
million. The brownfield plant will be owned and operated by
Juniper GTL, a company also co-owned by SGC Energia and Great
Development and will be
funded through a combination of equity and senior secured
Calumet intends to invest $25 million in exchange for an
equity interest of approximately 22% in the joint venture.
The Juniper GTL process starts with the reforming of natural
gas into a mixture of hydrogen and carbon
monoxide. These gases are
then sent to a reactor, where they combine into a paraffinic
liquid through a reaction known as Fischer-Tropsch (FT). The
resulting liquid is ultimately refined by distillation
The whole process, guaranteed under a single GTL license
(XTLH), focuses on the reliable, profitable
production of specialty and fuels products.
"This joint venture offers Calumet the opportunity to lead a
growing market that converts lower-cost natural gas into
higher value liquids," said Jennifer Straumins, chief
operating officer of Calumet. "Looking ahead, we
believe this project
puts Calumet in a
leadership position to capture promising GTL opportunities
which we anticipate to arise given expectations for continued
growth in domestic natural gas production in future years."