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.”
• Online: www.G2XEnergy.com