SynStream and Expander Alberta Gas-to-Liquids Plant Project Update; Identifies Plant Feedstock Provider
Calgary, Alberta (FSCwire) - SynStream Energy Corp. (“SynStream” or the “Company”) (TSXV:SHM), in conjunction with Expander Energy Inc. (“Expander”) is pleased to provide an update and summary of project activities on the partners’ Alberta gas-to-liquids (“GTL”) project (the “Project”).
° The Project will incorporate Expander’s patented Enhanced GTL™ technology for the use of NGLs and recycle of naphtha products to syngas generation.
° Expander selected Greyrock Energy’s Direct Fuel Production™ gas-to-liquids technology featuring Greyrock’s GreyCat™ catalyst.
- Natural Gas and Natural Gas Liquids Feedstock Supply Agreement
° Manitok Energy Inc., an Alberta based oil and gas producer, has entered into a multi-year agreement to provide feedstock to the Project.
° Under the terms of the agreement, Manitok will provide a non-dedicated, supply of 3.7 to 5.0 mmscf/day or BTU equivalent of natural gas and natural gas liquids to the Project. The specific commercial terms of the supply agreement will be outlined in the “Definitive Agreements” between the companies.
- Offtake Agreement
° IES Energy Inc. (“IES”), a private Canadian Indigenous Company, entered into a Purchase and Sales Agreement (“PSA”) with SynStream and Expander for the purchase of SynDiesel® produced at Carseland GTL plant.
° Under terms of the Offtake Agreement, SynStream and Expander have the ability to sell up to all synthetic diesel production volumes from its Enhanced GTL® SynDiesel® plant to IES. The initial term of the PSA is for 5 years and can be renewed, on a rolling basis, for subsequent 2 year terms.
° SynStream and Expander are currently evaluating a potential site adjacent to Manitok’s Carseland gas plant on which to build and operate the GTL plant.
° Preliminary environmental and geotechnical work has commenced.
° Alberta Energy Regulator (the “AER”) application is being prepared and will be submitted for Project approval.
- Engineering and Major Equipment Evaluation
° Expander has commenced final engineering of the Project, which is expected to provide SynStream and Expander with the detail necessary to make the Final Investment Decision (“FID”) by February 2017.
° Sterling Greyrock Partners, LLC. (“SGP”) of Dallas, Texas, has financed and fabricated the major equipment for the Project. Expander is a 27% limited partner investor in SGP.
° Expander is currently evaluating the major equipment and will be applying for Canadian and Alberta certification to permit the transporting and installation the SGP equipment at the Project site.
° As previously announced, SynStream and Expander entered into a Memorandum of Understanding (the ”MOU”) with SGP for the installation of the major equipment at the Project site. The specific commercial terms between the parties will be outlined in a Definitive Agreement to be finalized on or before the FID date.
The Carseland GTL plant is designed to convert natural gas and natural gas liquids into premium zero sulphur, high cetane, ultra-low aromatics paraffinic diesel fuel. Paraffinic diesel fuel was approved on June 19, 2016 for use in Europe and has received the EN15940 designation from the European Committee for Standardization. SynDiesel® is a “drop-in” fuel designed to meet the ASTM D975 standard for Ultra Low Sulphur Diesel, therefore it can be blended with petroleum-based diesel to improve overall performance of the petro-diesel, or used unblended in any diesel engine and can be transported and dispensed utilizing existing infrastructure.
As previously announced, SynStream and Expander have applied for royalty credits under Alberta’s Petrochemical Diversification Program (“PDP”). Alberta established this program to encourage investment into “Value Added” facilities in the Province. The Project is uniquely positioned under the scope of the “PDP” using Expander EGTL™ enhancements. The gas-to-liquids plant is designed to process methane, propane, and other NGLs into synthetic diesel fuel and the Project is shovel ready.
About Expander Energy Inc.
Expander Energy is a leading developer and licensor of processes to convert carbon sources into valuable synthetic fuels. Their engineered fuels are ultra-clean burning and complement existing transportation fuel infrastructure and current engine technologies. Expander’s fuels reduce GHG emissions and are produced from carbon rich materials such as natural gas, biomass, bitumen residuals, petcoke and municipal solid waste. Expander strives to deliver an alternative, drop-in fuel through patented technology to provide economic growth for Alberta and Canada while being environmentally conscious. Expander Energy Inc. is a privately held energy company located in Calgary, Alberta, Canada.
Contact: James Ross, CEO, +1 (403) 475-4146
About Greyrock Energy
Greyrock has developed its state of the art Direct Fuel Production™ technology and GreyCat™ catalyst, enabling production of clean liquid fuels from a variety of gas resources, including flare gas, bio-gas, natural gas, and natural gas liquids. Greyrock systems enable customers to solve key environmental and energy challenges.
About SynStream Energy Corp.
SynStream continues to evaluate business development opportunities in the petroleum and natural gas resource sectors, focusing on its partnership between with Expander Energy Inc. and a consortium of private investors to build Canada’s first small-scale commercial Enhanced GTL® (“EGTL™”) plant in Alberta. Given the current depressed nature of natural gas prices in relation to diesel prices in Alberta, management is confident that expansion of the Corporation's business activities can be accomplished on a basis that is both economically feasible and profitable.
SynStream Energy Corp. is dedicated to transparency for our shareholders. We are proud to be a part of 8020 Connect’s shareholder engagement platform. Join the conversation and engage with SynStream's management at 8020 Connect.
For further information, contact:
Chief Executive Officer
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Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
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Source: SynStream Energy Corp. (TSX Venture:SHM)
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