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Friday, May 26, 2017
Southwest Louisiana ,

Natural gas-to-gasoline plant planned for Lake Charles

Last Modified: Tuesday, January 15, 2013 7:15 PM

By Lance Traweek / American Press

Houston-based G2X Energy Inc. will construct a $1.3 billion natural-gas-to-gasoline facility on land owned by the Port of Lake Charles, officials announced Tuesday.

G2X Energy will use natural gas to produce methanol, then convert methanol to gasoline for 90 percent of its production. About 10 percent of the output will be liquefied petroleum gas or propane.

The project will reportedly create 243 direct jobs, averaging $66,500 per year, plus benefits. The state Department of Economic Development estimates the project will result in 748 indirect jobs, for a total of nearly 1,000 permanent jobs.

“Louisiana is an energy-rich state, and we’re proud of that heritage,” Gov. Bobby Jindal said in a news release. “In order to keep our energy industry strong, we have made a serious commitment to aggressively pursue companies that want to invest in Louisiana and create jobs here for our people.”

In the coming days, G2X Energy will complete an option to lease 200 acres of port land on the Industrial Canal, where G2X will can ship gasoline by pipeline or sea. The company will construct its facility near Trunkline LNG, which is a major tenant at the port.

“We are very excited to be working with the state of Louisiana and the Port of Lake Charles on this project,” G2X Energy President and CEO Timothy Vail said in a news release. “Our natural-gas-to-gasoline conversion process — developed and backed by one of the world’s largest energy companies — is a proven solution for the clean and economic production of transportation fuels from abundant domestic natural gas.”

He said Lake Charles is ideally suited for the company’s facilities, and that Jindal’s teams have worked with them to ensure a successful project.

“We look forward to the completion of our preliminary evaluation of the opportunity and a firm decision to move forward with the project,” he said.

The state started formal discussions on the project with G2X Energy Inc. at the end of 2012. To make the project a reality, LED offered the company a $5 million performance-based grant for infrastructure improvements at the port, including an access road, utilities and a dock facility. Also, G2X Energy will use the state’s Quality Jobs and Industrial Tax Exemption program incentives.

“Once again the Calcasieu River Ship Channel has proven to be a valuable asset to our region’s growth and success,” port Executive Director Bill Rase said in a news release. “We are pleased that G2X has chosen to bring its innovative conversion technology to Southwest Louisiana’s energy corridor, and the port’s board of commissioners welcomes its newest corporate citizen.”

Subject to further feasibility analysis, G2X Energy anticipates making a final investment decision by the end of 2013, once the company obtains facility permits. Construction would begin in 2014 and the project should be done by early 2017. Hiring of the plant management team will take place in mid- to late 2014, with most of the hiring for the facility to be completed by the end of 2015.

“This facility will utilize a different technology process to convert natural gas to gasoline. This diversification will serve the market as well as our region,” George Swift, president and CEO of the Southwest Louisiana Economic Development Alliance, said in a news release.

“This project by G2X Energy further makes a statement that Louisiana and the Southwest Region, in particular, are leading in the future energy production for our nation and world markets.”


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