06-09-2012

Calumet specialty products announces plan to expand its specialty products facility

Calumet Specialty Products Partners, L.P. announced today that it plans to expand its Karns City, PA specialty products facility to include a nominal 1,000 barrels per day Gas to Liquids ("GTL") plant. 

Calumet has commissioned Ventech Engineers, LLC, specialists in modular petroleum processing plants, to design and deliver the GTL plant utilizing an Autothermal Reformer (ATR) from Haldor Topsoe, Inc and Fischer-Tropsch (FT) technology from Velocys, Inc.

Haldor Topsoe's ATR is an established technology for reforming natural gas into synthesis gas, a mixture of hydrogen and carbon monoxide. In the GTL plant, this synthesis gas will be routed through the Velocys FT process for conversion into long chain hydrocarbons. Velocys is a leading developer of microchannel process technology for synthetic fuels production.

The entire plant will be constructed as truckable modules at Ventech's fabrication facility in Pasadena, Texas, and then transported to Calumet's site in Karns City for rapid installation and interconnection with the existing refining facility.

The plant design is expected to be completed by late 2012, followed by site specific engineering and a decision to commence fabrication in the first half of 2013. Production is currently expected to begin in the second half of 2014.

"Converting natural gas into ultra-high quality feedstock through GTL will reduce our costs, increase security of supply and improve product quality.  We are excited to be considering this project for our Karns City facility because it will help us further utilize our current specialty product assets," said Calumet's Vice Chairman and Chief Executive Officer Bill Grube.