MORE OXYGENATES PROJECTS SCHEDULED IN U.S.

Surging demand for oxygenates continues to spawn more projects to produce them in the U.S. Among recent developments: A joint venture plans a $300 million project to revamp a mothballed synthetic natural gas plant in Illinois to produce either methyl tertiary butyl ether or ethyl tertiary butyl ether. Valero Energy Corp. plans a $230 million, 13,000 b/d MTBE plant at its Corpus Christi, Tex., refinery, involving upgrading surplus butane to MTBE feedstock isobutylene, an approach similar to the
May 27, 1991
3 min read

Surging demand for oxygenates continues to spawn more projects to produce them in the U.S.

Among recent developments:

  • A joint venture plans a $300 million project to revamp a mothballed synthetic natural gas plant in Illinois to produce either methyl tertiary butyl ether or ethyl tertiary butyl ether.

  • Valero Energy Corp. plans a $230 million, 13,000 b/d MTBE plant at its Corpus Christi, Tex., refinery, involving upgrading surplus butane to MTBE feedstock isobutylene, an approach similar to the Tenneco Gas MTBE project near Houston (OGJ, May 20, p. 25).

  • Star Enterprise let contract to Jacobs Engineering Group Inc., Pasadena, Calif., for its project to add MTBE and tertiary amyl methyl ether units at its Convent, La., refinery (OGJ, Apr. 20, p. 40).

ILLINOIS PROJECT

The joint venture of Aux Sable Partners of Texas and Freedom Envirofuels Inc. plans to complete conversion by mid-1994 of an SNG plant in Aux Sable County, Ill., to produce either 12,500 b/d of MTBE or 14,500 b/d of ETBE.

The mothballed plant, operated by Northern Indiana Gas Co., once produced SNG from naphtha.

Freedom Envirofuels is a unit of Freedom Group, Philadelphia, a general partnership of Harold A. Sorgenti and Fred P. Rullo. Sorgenti retired recently after 12 years as president of ARCO Chemical Co. Rullo formerly was president of the systems and service business of Asea Brown Boveri/Combustion Engineering.

Aux Sable Partners is a partnership of Gunnison Capital Development Corp. (GCDC), Fort Worth, and Citicorp, New York. GCDC owns a 75% interest, Citicorp 25%. Richard W. Moncrief, Fort Worth independent oil producer, owns 100% of GCDC.

Financing is expected to be in place in the third quarter. About 30 months will be needed for the plant conversion.

Freedom Envirofuels will lead project development, help arrange financing, and provide marketing services. When the conversion is complete, Freedom Envirofuels will purchase Aux Sable Partners' interests and operate the plant.

Sorgenti noted the project is well connected by pipelines to feedstock sources and potential customers.

Freedom Group officials estimate U.S. production of MTBE will fall short of demand by about 200,000 b/d by 1995.

Sorgenti was part of the ARCO Chemical team that pioneered use of MTBE as an octane booster in gasoline. Rullo also is a former ARCO Chemical executive and was a member of the management team that took part of ARCO's Lyondell Petrochemical unit public. . Freedom Group also has formed Freedom Specialty Chemicals Inc., which is negotiating several acquisitions.

VALERO PROJECT

Valero Natural Gas Partners LP and Valero's refinery will supply 100% of the butane needed to provide isobutylene feedstock for the company's MTBE plant.

Valero is negotiating with several sources to obtain methanol feedstock for the MTBE plant, which is expected to start up in mid-1993.

Valero Chairman Bill Greehey noted new air quality rules have crimped demand for butane as a gasoline blending component while increasing demand for MTBE.

"Our decision to proceed with this project is based on its ability to allow us to take advantage of the tightness in MTBE supply that will result from these regulations," Greehey said.

STAR ENTERPRISE

Star Enterprise's contract to Jacobs covers engineering and procurement services and offsites design for a 2,500 b/d MTBE unit and a 3,500 b/d TAME unit at its Convent refinery.

Engineering completion is scheduled for first quarter 1992 and project completion and start-ups for third quarter 1992.

The project will include installing a 30,000 b/d depentanizer, an electrical power substation, feedstock and product tanks, a cooling tower, and various process and utility tie-ins as well as expanding and modifying computer process control systems.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.

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