Natural gas-to-gasoline plant planned for Lake Charles

By 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


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


“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.”