Synstream Energy Corp. Announces an Agreement to Provide Feedstock to Partners’ Gas-to-Liquids Plant; Signs a Synthetic Diesel Puchase and Sale Agreement with IES Energy Corp.
Calgary, Alberta (FSCwire) - SynStream Energy Corp. (“SynStream” or the “Company”) (TSXV:SHM), in conjunction with Expander Energy Inc. (“Expander”) and a consortium of private investors, is pleased to announce that this partnership has entered into a multi-year agreement with an Alberta-based oil and gas production company to provide feedstock to Canada’s first small scale commercial gas-to-liquids plant. The partnership selected Greyrock Energy’s Direct Fuel Production™ gas-to-liquids technology featuring Greyrock’s GreyCat™ catalyst. The production company will provide natural gas and natural gas liquids (C2 plus) from its gas plant in southern Alberta and will incorporate Expander GTL enhancements for the use of NGLs and recycle of naphtha products to syngas generation called Enhanced GTL (EGTL™ SynDiesel® plant).
Under the terms of the agreement, the SynStream Expander GTL plant will be supplied with 3.7 to 5.0 mmscf/day or BTU equivalent of natural gas and natural gas liquids. The specific commercial terms of the supply agreement will be outlined in formal agreements to be completed by the companies. SynStream and Expander are currently evaluating potential sites in close proximity to the supplying gas plant on which to build and operate the gas-to-liquids plant.
In conjunction with the signing of the natural gas supply contract, SynStream and Expander are also pleased to report that they have signed a multi-year Synthetic Diesel Purchase and Sale Agreement (the “Offtake Agreement”) with IES Energy Inc. (“IES”). 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 Offtake Agreement’s term is 5 years and can be renewed, on a rolling basis, for subsequent two year terms upon mutual agreement by SynStream, Expander, and IES. SynStream’s synthetic diesel is expected to be produced by SynStream, Expander, and its partners at Canada’s first small scale Enhanced GTL® SynDiesel® plant at a proposed location in close proximity to the southern Alberta gas plant.
The gas-to-liquids 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, 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 using existing infrastructure.
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.
About IES Energy Inc.
IES Energy Inc. is Canadian Indigenous Company that identifies energy initiatives that are not only sustainable and profitable but, where applicable, can significantly reduce its environmental footprint, have a viable reclamation plan, and have lower harmful emissions. IES Energy strives to ensure that its energy initiatives positively impact and benefit the communities it operates in.
Expander Energy’s innovative SynDiesel ® fuel meets our criteria and we have signed a five-year Offtake Agreement that can be renewed for an additional two years.
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.
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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