Calumet Specialty Products Partners, L.P. Announces Plan to Expand its Karns City, PA Specialty Products Facility
INDIANAPOLIS, Sept. 6, 2012 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (CLMT) ("Calumet") (NASDAQ: CLMT) 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.
About the Partnership
Calumet is a master limited partnership and is a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial, and automotive products. Calumet also produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and has nine facilities located in northwest Louisiana, northwest Wisconsin, western Pennsylvania, southeastern Texas and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "may," "intend," "believe," "expect," "anticipate," "plan," "foresee," "estimate," "continue," "should," "will," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements include, without limitation, Calumet's expectations with respect to timing of the completion of the proposed GTL plant and Calumet's plans, objectives, expectations and intentions with respect to future operation of the GTL plant. These forward-looking statements are based on Calumet's current expectations and beliefs concerning future developments and their potential effect on Calumet. While Calumet believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Calumet will be those that Calumet anticipates. All subsequent written and oral forward-looking statements concerning the GTL plant are expressly qualified in their entirety by the cautionary statements above. Calumet undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
SOURCE Calumet Specialty Products Partners, L.P.