Calgary-based Expander Energy, Inc., a developer and licensor of processes to convert carbon sources into synthetic fuels has announced that it has received Alberta Energy Regulator approval to build and operate Canada’s first commercial gas-to-liquids (GTL plant. Expander, through its subsidiary, Rocky Mountain GTL Inc., intends to build the Enhanced GTL plant at Carseland, Alberta.
According to a statement, the first-of-its-kind plant will process around 5.0 MMscfe/d of natural gas and natural gas liquids into 500 barrels per day (bbl/d) of paraffinic synthetic diesel and naphtha. It will incorporate a number of Expander enhancements in that it will be water neutral, generate excess power and convert process carbon dioxide (CO2) into additional synthetic diesel.
Gas supply agreement
Expander has entered into a multi-year natural gas supply agreement with Manitok Energy Inc. (Manitok) to provide feedstock from its Carseland gas plant to the Expander GTL plant. Under the terms of agreement, Manitok agrees to supply 3.7 to 5.0 MMscf/d or Btu equivalent of natural gas and natural gas liquids subject to available production and reserves.
The GTL plant will provide incremental processing capacity to allow Manitok to increase its oil production in the area beyond its current plans. An offtake agreement is also in place for 100 percent of the synthetic diesel produced, to be marketed as SynDiesel.
The two companies are reviewing the application of Expander’s technologies to other Manitok properties exhibiting the same high gas liquids content in the production stream, such as the Stolberg and Willesden Green areas in west-central Alberta.
