Synstream Energy to provide feedstock to Canada’s first commercial GTL plant
SynStream Energy Corp., in conjunction with Expander Energy Inc. and a consortium of private investors, has entered into a multi-year agreement with an Alberta-based oil and gas production company, to provide feedstock to Canada’s first small scale commercial gas-to-liquids (GTL) plant.
The partnership selected Greyrock Energy’s Direct Fuel Production™ GTL technology featuring Greyrock’s GreyCat™ catalyst. The production company will provide natural gas and natural gas liquids (C2 plus) from its gas plant in southern Alberta and will incorporate Expander GTL enhancements for the use of NGLs and recycle naphtha products to generate syngas.
Under the terms of the agreement, the SynStream Expander GTL plant will be supplied with 3.7 to 5.0 mmscf/day or BTU equivalent of natural gas and natural gas liquids. The specific commercial terms of the supply agreement will be outlined in formal agreements to be completed by the companies.
SynStream and Expander are currently evaluating potential sites in close proximity to the supplying gas plant on which to build and operate the GTL plant.
In conjunction with the signing of the natural gas supply contract, SynStream and Expander have signed a multi-year synthetic diesel purchase and sale agreement with IES Energy Inc. Under the terms of the offtake agreement, SynStream and Expander have the ability to sell all synthetic diesel production volumes from its Enhanced GTL® SynDiesel® plant to IES.
The offtake agreement’s term is five years and can be renewed, on a rolling basis, for subsequent two-year terms, upon mutual agreement by SynStream, Expander and IES.
SynStream’s synthetic diesel is expected to be produced by SynStream, Expander and its partners at Canada’s first small scale Enhanced GTL® SynDiesel® plant at a proposed location in close proximity to the southern Alberta gas plant.
The GTL plant is designed to convert natural gas and natural gas liquids into premium zero sulphur, high cetane, ultra-low aromatics paraffinic diesel fuel. SynDiesel® is a “drop-in” fuel, therefore it can be blended with petroleum-based diesel fuel or used unblended in any diesel engine and can be transported using existing infrastructure.
echo '
