Next Wave Energy Partners, LP announced on Wednesday it has made a final investment decision (FID) to construct a new alkylate production facility, known as Project Traveler, which will be located adjacent to the Houston Ship Channel at Next Wave’s 53-acre site in Pasadena, Texas.
Next Wave said it will convert a portion of North America’s growing ethylene supply to alkylate by utilizing licensed and commercially proven process technologies at the facility, which will have a nameplate capacity of 28,000 barrels per day of alkylate.
Next Wave expects initial production by mid-2022. Project Traveler is underpinned by long-term customer contracts for a majority of the nameplate capacity.
The total cost for the project was not disclosed.
The company will deliver the alkylate through direct-connection pipelines to major gasoline blending terminals in Pasadena.
“Project Traveler was conceived to benefit from two important trends in our industry – growing demand for additional octane and abundant domestic supplies of natural gas liquids and their derivatives,” said Next Wave Executive Chairman Patrick Diamond.
Alkylate is a valuable gasoline blending component that is one of the cleanest petroleum products that can be produced and typically comprises about 11% to 13% of the overall gasoline pool in the United States.
Next Wave will market its alkylate under the trade name Optimate. The company says its alkylate will have qualities that are superior to those from refineries.
The company’s alkylate will have 96.0 road octane (98.0 Research Octane Number), a 3.5 Reid vapor pressure and a sulphur content of no more than 5 parts per million.
“We have already commenced engineering for a second alkylation unit at our Pasadena site to capitalize on incremental demand for our services. We believe our premier location near the Houston Ship Channel offers our customers unsurpassed connectivity to feedstock supply, product offtake and gasoline blending and distribution infrastructure,” said Next Wave President and CEO Michael Bloesch.
Source: Next Wave