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 12, 2014 at 7:30am

If that's the way it will shake out ultimately it's more than a little surprising to me.

Aren't there other places closer to the Bakken to pipe it to ?

How about selling to foreign markets ?

Not really a fan of selling to foreign markets but (for now / temporarily) it would beat burning it.

Didn't the Pres. just sign some legislation to allow more of it to be marketed overseas ?

What really needs to happen IMHO is a sanctioned / even federally subsidized program to convert to natural gas burning engines (for freight and transportation) and power generation - from burning coal / gasoline / diesel.

In other words we need an energy plan - like Boone T. Pickens has been advocating for years.

Permalink Reply by Joseph-Ohio on August 8, 2014 at 9:00am

So, looking for the source of the 'pure' methane and wondering where it will come from (if not natural gas from wells in the near geography); then reading Paul Martenelli's reply indicating it will be piped into the plant; I' m coming up with a dedicated 'methane only' line from some other plant (perhaps a new 'cracker plant' in the southeast.

Does that theory wash ?

Permalink Reply by Dexter Green on August 8, 2014 at 4:52pm

They're planning on having low capacity at first and slowly ramping up production.  Once they do so they'll need a stronger, steadier supply, which the Marcellus/Utica dry regions will provide.  At least that's my understanding.

Permalink Reply by Joseph-Ohio on August 8, 2014 at 5:04pm

Low capacity at first being the stated 2800 barrels of diesel per day ?

And then ramping up to some greater output ?

Or :

Low capacity at first being something less than the stated 2800 barrels of diesel per day  ?

And then ramping up to a maximum of 2800 barrels of diesel per day ?

Permalink Reply by Dexter Green on August 8, 2014 at 5:11pm

2,800 bbl/d to start with a goal of 10,000 bbl/d at some point.  That's a big increase, so I have no idea what the time frame is on that final number.

Permalink Reply by Joseph-Ohio on August 8, 2014 at 6:01pm

Do you still think there's enough existing 'house gas' flowing around in existing piping systems to feed the existing market plus the max. new 10000 barrels of diesel per day scheduled to be produced by the new plant at some point in the future ? 

Permalink Reply by Philip Thackray on August 8, 2014 at 9:11am

See attachment below.

Phil

Attachments:
Permalink Reply by Joseph-Ohio on August 8, 2014 at 10:04am
Thank you Philip.

Noticing the 'gas to liquids.jpg' mentions nothing about pure methane being required in the process - it indicates natural gas in and naptha along with diesel and LPG out.

Wonder who's correct - the 'pure methane' camp piped in or the 'natural gas' in camp ?

J-O
Permalink Reply by Philip Thackray on August 8, 2014 at 10:08am

Joe,

Natural gas is practically pure methane.

Phil

Permalink Reply by Joseph-Ohio on August 8, 2014 at 10:15am
Well I guess you're saying 'except the condensibles / entrained liquids' then - aren't you ?

But another wrote that the process (gas to liquids) as far as he knew needed 'pure methane'.

See above kindly.
Permalink Reply by Philip Thackray on August 8, 2014 at 10:57am

Joe,

I'm using the term Natural Gas as it is refereed to in residential and industrial heating applications.  Residential Natural Gas is mostly methane.  I suppose the term Natural Gas could refer to wet gas but I think the raw wet gas product is referred to as wellhead gas or wet gas.

Regards,

Phil

Permalink Reply by Joseph-Ohio on August 8, 2014 at 11:26am

Thanks Phil.

Now, in your experience what kind of natural gas do you think will be used to produce the 'liquids' at the new Pinto 'Gas to Liquids' Plant in Ashtabula when it comes online ?

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