Rocky Mountain GTL Inc. has completed a private placement of units composed of common shares and warrants and convertible debentures, due in 2020, for aggregate gross proceeds of approximately CAN$42 million. Upon completion of the private placement, the board of directors approved the final investment decision to proceed with the construction of Canada’s first commercial gas-to-liquids (GTL) plant, 60 km east of Calgary, Alberta.
The company’s Carseland Enhanced GTL® (EGTLTM) project is fully permitted and shovel ready. The proceeds of the private placements will be used to complete detailed engineering, order equipment and begin construction.
The GTL plant is designed to process approximately 5 million ft3/d of natural gas and natural gas liquids into a nominal 500 bpd of paraffinic synthetic diesel and naphtha. The plant will be based on technology provided by affiliates of Greyrock Energy with technology enhancements by Expander Energy Inc. It will incorporate several features in that it will be water neutral, self-sufficient on electric power, and will recycle significant process CO2 in order to produce additional synthetic diesel. The plant forms the basis for future EGTL plants that are scalable from 5 million ft3/d to 50 million ft3/d of natural gas capacity.
The company exchanged 4.2 million units and 4.6 million exchangeable performance warrants to acquire Expander Energy Inc.’s Enhanced GTL technology. The corporation also completed a technology supply agreement from Greyrock that enables the deployment of additional plants that use Greyrock’s Direct Fuel ProductionTM technology and GreyCatTM catalyst.
This landmark transaction signals a new era of natural gas processing and monetisation. The patented EGTL plants convert natural gas/natural gas liquids/liquid petroleum gas, in any combination, into a single synthetic paraffinic diesel product. Rocky Mountain GTL Inc. will eliminate price or pipeline accessibility issues for producers by providing optionality to produce natural gas (stranded or otherwise) and associated liquids by converting this resource to synthetic diesel. The unconventional oil and gas boom and global anti-flaring initiatives have created an unprecedented opportunity for Rocky Mountain to be a world leader in the conversion of natural gas to high performance, zero sulfur, low emission and low Carbon Index synthetic liquid fuels,” stated James H. Ross, Rocky Mountain GTL Inc.’s CEO.