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Smaller scale GTL supply chain

Hydrocarbon Engineering,

Smaller scale GTL plants located near gas sources and product markets show great promise for deriving value from distributed or undervalued accumulations of natural gas. A manufacturing partnership between Velocys and Shiloh Industries Inc. will ensure that Velocys is able to meet the projected growing demand for its smaller scale GTL technology, and continually improve its offering.

The companies have been working together since 2012 to develop and implement economic, high quality mass manufacturing capabilities for Velocys’ Fischer-Tropsch (FT) reactors. The two companies have agreed to work together preferentially, and to continue to improve the manufacturing of Velocys’ FT reactors. The partnership will also examine opportunities in the oil and gas market. Shiloh is investing several million US dollars in manufacturing resources, as well as making available a dedicated team of engineers.

With Shiloh, Velocys’ supply chain can support annual FT reactor orders sufficient for 10 000 bpd of annual production, and has plans to enable expansion of 40 000 b/y in time for order growth.


Matthew Davis, VP of Manufacturing & Supply Chain, Velocys said, ‘smaller scale GTL is about to enter a period of rapid growth and our strategy is to continue to leverage world class partners and state of the art manufacturing technology from various industries in order to achieve economic and high quality production. Velocys is well positioned to take advantage of the significant market opportunity and, with Shiloh at its side, has the means to supply all expected sales and to maintain its psition at the forefront of the market.

‘There are miles of laser welding in each FT reactor core. Shiloh will bring its experience in high precision laser welding that is central to its success with automotive customers, is vertically integrated, high throughput capabilities, continuous improvement culture and the highest standards of quality to our FT reactor supply chain.’

Ramzi Hermiz, President and CEO, Shiloh said, ‘Combining our leading position in cutting edge manufacturing with Velocys’ novel technology platform offers exciting prospects in the fast emerging market for smaller scale GTL, and in the oil and gas industry in general. We look forward to continuing to innovate together and to building on our already strong relationship with Velocys.’

Adapted from a press release by Claira Lloyd.

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