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Juniper GTL project in Louisiana adds Calumet as JV partner

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 Northern Project Development and will be funded through a combination of equity and senior secured debt.

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 and hydrogenation.

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."


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FEATURED COLUMNS

Editorial Comment: The Future of FLNG: Less is More?
-Adrienne Blume
Global LNG export capacity is expected to increase by 45% between 2017 and 2022, to more than 400 metric MMtpy, with 90% of the new capacity coming from sanctioned projects in the U.S. and Australia. By 2050, this capacity is anticipated to exceed 700 MMtpy. Regasification capacity is anticipated to increase even more sharply.
Executive Viewpoint: Back to production: Where we’re going, we don’t need pipelines
-Mark Casaday
What if a cost-effective way existed to extract and distribute natural gas, regardless of proximity to pipeline, and bring those assets back to production? What if the industry went in a direction that did not need pipelines? For those looking to monetize unproductive natural gas assets or bring unproductive wells back to production, it would be revolutionary.
Regional Focus:Australia to boost LNG exports despite domestic gas shortage
-Eugene Gerden
Australia is planning further increases in LNG production and exports over the next decade, despite quickly depleting reserves and a looming supply shortage in the domestic market.


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