Primus Green Energy to launch second North American methanol plant

Primus Green Energy Inc., a GTL technology and commercial solutions company that transforms methane and other hydrocarbon gases into methanol and gasoline, today announced plans to develop and deliver a 160-metric-tpd methanol plant to an operating site in Alberta, Canada. 

Primus has signed an MOU with an Alberta-based capital and operating partner. Production of methanol from the plant will begin in 1Q 2018 for regional distribution.

The methanol produced will be utilized by Alberta's natural gas industry—primarily by natural gas producers and processors in the Montney and Duvernay natural gas fields.

Adhering to the company's local production strategy, the standardized modular GTL system will convert low-cost feedstock from Alberta's natural gas fields into methanol, thereby saving natural gas producers and processors in the region on production and transportation costs of methanol, while also improving the value of the natural gas feedstock. As a result, the systems are cost-competitive with large-scale world-class methanol plants.

In addition to its Marcellus plant announced earlier this year, Primus plans to deliver up to three additional methanol plants in North American regional markets, with capacities ranging from 160 metric tpd to 640 metric tpd, all of which will follow its low-cost standardized design and facilitate local production.

"We are excited to bring our technology to the two most prolific natural gas basins in North America—the Marcellus/Utica in the US and the Montney/Duvernay in Canada," said George Boyajian, chief commercial officer of Primus Green Energy.

"This project represents the expansion of Primus' distributed methanol production strategy in North America, delivering a high-quality product for regional clients and utilizing Alberta's large supply of cost-advantaged natural gas. Our technology allows for the reduction of transportation costs while providing the natural gas industry in Alberta with a stable and locally responsive supply of methanol."

Primus has applied to Alberta Energy's Petrochemicals Diversification Program (AEPDP) to effectively reduce feedstock costs and increase the overall economic viability of its project, while providing lower-cost methanol to Alberta consumers.

Boyajian added: "Royalty credits are an important incentive as we make a final investment decision and will affect the final location decision of our methanol plant."

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 NGLs.

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. STG+ technology is uniquely economical at all scales, starting at as small as 100,000 Nm3 (5 MMscf) per day of feed gas.

Primus designed, fabricated, and commissioned a commercial-scale STG+ plant (pictured) in November 2013 at its Hillsborough, New Jersey headquarters. Since initial commissioning, the plant has logged over 8,000 process hours (as of May 2016), converting pipeline natural gas into high-quality gasoline and methanol.

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