Primus Green Energy Announces Offtake Agreement with Tauber Oil for Methanol System in Marcellus Region
Company to Offtake, Market and Distribute All Methanol Produced for Regional Use
HILLSBOROUGH, N.J., May 3, 2016 /PRNewswire/ -- Primus Green Energy Inc., a gas-to-liquids (GTL) technology and solutions company that transforms methane and other hydrocarbon gases into gasoline, methanol and diluent, today announced that it has signed an offtake agreement with Tauber Oil for its methanol plant at a manufacturing site in the Marcellus shale region. The plant is expected to produce 160 MT of methanol per day beginning in the fourth quarter of 2017.
Tauber Oil will offtake all methanol produced by the plant – utilizing low-cost Marcellus gas feedstock – to market, sell and distribute into the regional market. The Primus standardized modular system allows for local production, thus saving its customers in the region on both production and transportation costs. As a result, the systems are cost-competitive with the world-class methanol plants located on the Gulf Coast of the United States and in international markets. In addition, Interconn Resources, a subsidiary of Tauber Oil Company, will be responsible for the supply of natural gas for the Primus facility.
"With its uniquely attractive economics, Primus' technology has the ability to produce methanol at a competitive price at regional scale in the Marcellus," said Steven Elliott, vice president of petrochemicals at Tauber Oil. "As a result, the system will provide our customers with a high-quality product at an advantaged price, while – at the same time – reducing the carbon footprint associated with the production and transportation of both natural gas and methanol."
With the expected addition of three trains, the plant's capacity will be expanded to produce up to 640 MT of methanol per day locally. The site location for the plant will be announced in the coming months.
"Working with Tauber – an established methanol distributer with an extensive client roster and deep market knowledge – allows us to confidently deploy our system to arguably the largest shale play in the United States," said George Boyajian, chief commercial officer of Primus Green Energy. "Further, we're proud to form a partnership that will facilitate the production of methanol for domestic customers, utilizing a low-cost domestic feedstock."
Primus' STG+™ technology can use a range of natural gas feedstocks, including wellhead and pipeline gas, dry or wet associated gas, "stranded" ethane, excess syngas from underutilized reformers or mixed natural gas liquids. The systems' stranded and associated gas applications offer an ideal solution to the lack of traditional natural gas pipeline infrastructure in remote locations, enabling the monetization of gas that would otherwise be stranded or flared. The low-cost, modular systems can be trucked in and assembled onsite for easy deployment.
The STG+™ methanol and gasoline solutions are being developed in multiple projects across North America, Asia and the Middle East. By comparison with other GTL technologies, the process holds many key advantages, including record low capital and operating costs, high liquid product quality, zero wastewater, unmatched process simplicity and one of the best conversion yields on the market. These advantages result in STG+™ technology being uniquely economical at all scales, starting at as small as 100,000 Nm3 (5 million scf) per day of feed gas.
About Primus Green Energy Inc.
A global leader in gas-to-liquids (GTL) technology, Primus Green Energy™ delivers solutions for gas monetization based on its proprietary STG+™ technology. Located in Hillsborough, N.J., Primus' vertically integrated headquarters includes facilities for design, engineering, operator training and remote operation, as well as research and development and catalyst development. Core to Primus' business is its dedicated senior technology team, which represents more than 300 years of collective experience at leading energy and oil and gas firms. Primus is committed to the continual development of new solutions and applications – as well as to the advancement of existing systems – in order to meet customers' unique business needs. Primus Green Energy is majority owned by Kenon Holdings Ltd. (NYSE: KEN / TASE: KEN). For more information, please visit www.primusge.com.
About Tauber Oil Company
An industry recognized name, Tauber Oil Company was founded by O.J. Tauber Sr., in 1953 in Houston, Texas. Mr. Tauber worked several jobs on the Houston Ship Channel before realizing the need to create the first inter-refinery marketing operation. The special niche in business to business communication was the first of its kind and has since been the foundation for what has become Tauber Oil Company. Tauber Oil Company has experience in marketing and logistics in many petroleum products such as Feedstocks, Natural Gas and Natural Gas Liquids, Carbon Black Feedstocks, Crude Oil, and Petrochemicals. Tauber Oil Company prides itself on superior customer service and honest relationships. Tauber Oil Company is privately held and currently under the direction of Richard E. Tauber and David W. Tauber, Sr.
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SOURCE Primus Green Energy Inc.
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