Velocys, the technology innovator for smaller scale gas-to-liquids (GTL), announced June 25 the acquisition of Pinto Energy LLC and its Ashtabula GTL project.
The acquisition represents a significant step in the North American oil & gas industry's adoption of smaller scale GTL and of the Houston-based Velocys technology, 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, in a June 25 press release. "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 estimated 2,800 barrels per day (bbl/d) 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. Final investment decision is expected within six to nine months. Future expansions could see installed capacity of 10,000 bbl/d or more at the site.
Additionally, Pinto Energy has a pipeline of smaller scale GTL projects it is seeking to develop throughout North America.