Project hopes to accelerate development of the smaller scale gas-to-liquids industry.
HOUSTON — Velocys, which focuses on smaller scale gas-to-liquids technology, announced the acquisition June 25 of Pinto Energy and the Ashtabula gas-to-liquids (GTL) project.
The move, company officials say, represents a step in the North American oil & gas industry’s adoption of smaller scale GTL, accelerating the development of “shovel ready” projects.
“The acquisition of Pinto Energy, one of North America’s leading smaller scale GTL project developers, provides Velocys a key stepping stone for commercial growth,” said Roy Lipski, CEO of Velocys.
“It will strengthen our route to market, accelerate early adoption, and deepen our ties with suppliers, partners, investors and customers across the entire GTL value chain.”
As its first facility, Pinto Energy is developing an approximately 2,800 barrels per day (bpd) plant at an 80 acre industrial site that it owns near the Port of Ashtabula, Ohio.
The project will benefit from both access to abundant low-cost natural gas from the Marcellus shale region and substantial existing infrastructure.
Initial engineering for the facility is complete and the air permit has been issued. Final investment decision is expected within six to nine months.
Future expansions could see installed capacity of 10,000 bpd or more at the site.
In addition to Ashtabula, Pinto Energy has a pipeline of smaller scale GTL projects it is seeking to develop throughout North America.
“The entire Pinto Energy team is excited to be joining Velocys. Combining its technology leadership with Pinto’s project development capabilities makes for a formidable business,” said John Baardson, Pinto Energy’s CEO.
Looking for ventures.
Velocys technology is available for license to new customers, and the company is also open to partner with project developers to bring additional smaller scale GTL opportunities to market, Lipski said.