Possible developement in Ashtabula and/or Columbiana

More recently, Houston-based Velocys announced it had acquired Pinto Energy (also Houston-based) for a very specific purpose.  Seems Velocys, with offices also in Columbus, is looking to get involved in Utica production and in an area some would find unlikely.  With both BP and Halcon Resources throwing in the towel (at least for now) in Northern Ohio, it was interesting to see them announce Ashtabula County as the site for their development plans.  Apparently they see it as the perfect location for a new high-tech but small-scale gas-to-liquids plants ultimately producing……you guessed it – jet fuel and diesel.

Interesting that they picked Ashtabula.  Did they do so expecting drilling activity to supply the raw product or so that they are nearer to the market for the end product?

http://shaleforum.com/profiles/blogs/jet-fuel-and-diesel-in-ohio?xg_source=msg_mes_network

Also a possible jet fuel plant in Columbiana instead of the coal-to-gas facility that was proposed a few years back.

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Permalink Reply by Joseph-Ohio on August 8, 2014 at 6:37am

Natural Gas to Liquid Jet Fuel and Diesel.

Although I'm not at all familiar with the process my guess would be that it begins with 'Wet Gas' / 'Rich Condensate' ?

Can anyone confirm that guess and provide more detail about the process ?

Thanks ahead of time.

J-O (in the dark as usual)

Permalink Reply by Dexter Green on August 8, 2014 at 6:56am

It's usually a low BTU, pure methane conversion.  The details of how it works are far beyond my meager grasp of organic chemistry (as demonstrated by grades in such studies throughout my life).

Permalink Reply by Joseph-Ohio on August 8, 2014 at 7:15am

Methane (in production quantities) would be derived from 'Wet Gas' / 'Rich Condensate'  would it not ?

Methane along with propane and butane - correct ?

So wondering will all of those be produced at the new Pinto Plant ?

Permalink Reply by Dexter Green on August 8, 2014 at 7:56am

Usually you only see methane, since butane, pentane, etc. are not accretive to the process.  The methane is converted into a long chain hydrocarbon like diesel, gasoline, etc.  In the case of the Pinto plant it looks like it's jet fuel, which can be either natural or synthetic.  You wouldn't want to use a higher BTU gas since the process necessarily relies on cheaper, more available methane.  Don't forget that Ashtabula is a strong conventional producer of nat gas so I imagine the supply is strong enough to meet the demand, at least initially, for this plant.

Permalink Reply by Joseph-Ohio on August 8, 2014 at 8:43am

So, in your analysis, you seem not to project an uptick in natural gas drilling on the account of the new plant arriving in the vicinity - as you write the supply (I take it as the existing supply) is enough to meet even the new demand (by the plant's processes / market) INITIALLY.

Am I reading you correctly ?

Permalink Reply by Paul Martinelli on August 8, 2014 at 8:45am

the supply can/will be piped in....the plant doesn't project more drilling in Ash. county.

Permalink Reply by elliemae82 on August 8, 2014 at 10:23am

Now why do you say that Paul!

Permalink Reply by Paul Martinelli on August 12, 2014 at 8:54am

I say it because the plant being built doesn't require additional  local drilling....only a supply, which currently exists to the South, and as Dexter pointed out in Ash. County already.

Besides....we all know the North is all oil.

All I'm saying is don't read to far between the lines.  Just because a plat is being built that requires NG, it doesn't mean more drilling will follow.

Permalink Reply by Joseph-Ohio on August 12, 2014 at 12:27pm

'Besides....we all know the North is all oil.'

Paul,

I've read numerous references on these pages that describe practically all of Ashtabula County as in the 'Rich Condensate, Lean Condensate and the Oil Windows / Zones' - all of them.

The question that pre-occupies me is why the E & P interests have not maneuvered toward and at least started it's development ?

The reasoning / theory I continually return to is that all the maneuvering is actually already done and development will begin at the pleasure of the E & P interests.

Another question is what is taking them so long ?

The answer I come up with for that one is that they're busy elsewhere picking cherries.

Permalink Reply by elliemae82 on August 12, 2014 at 12:10pm

This reminds me of a saying. "Build it and they will come."

Permalink Reply by Joseph-Ohio on August 13, 2014 at 1:32pm

I'd like to see them get here before it's built myself.

That's the way they did it in southeast Ohio if memory serves.

To my way of looking at it - it would make more sense.

Can't  argue with success can we.

But, as always, that's only my humble opinion.

Permalink Reply by Julie Harchalk on August 12, 2014 at 6:58am

Hi Joseph-there was an article a few months ago that said the gas will be coming from the Bakken play in the Dakota shale play, it is currently being allowed to just flame out or burn off at the drilling site as they extract the oil because they don't want it- they only desire the oil product. The plant itself will be a positive thing for Ashtabula though I think.

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