Macquarie Capital mandated as financial advisor on ZeoGas project debt

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Macquarie Capital mandated as financial advisor on ZeoGas project debt

ZeoGas has mandated Macquarie Capital to serve as its financial advisor for the commercialization of its Gulf Coast gas-to-gasoline project in the United States.

Specifically, Macquarie has been mandated for the arrangement of a non-recourse project financing debt. The commission also includes extending Macquarie's participation in ZeoGas' development financing in addition to advising on alternative commercial structures.

Pending the commercial agreement and receipt of pre-construction air quality permits, ZeoGas and Macquarie expect to bring the project debt to market in Q2 2016. The plant would then be scheduled for operation in 2019.

Founder and CEO of ZeoGas, Timothy D. Belton, has commented:

"We are excited to have Macquarie join our world class group of advisors and project partners who are all committed to our mission of converting clean natural gas into gasoline. Macquarie's expertise and advice will be invaluable in helping to bring this project to fruition."

The project, to be located on the US upper Golf Coast, is the first of a planned portfolio of ZeoGas plants designed to convert plentiful and clean natural gas into gasoline.

Per day, the site will collect roughly 155,000 Million British Thermal Units (MMBTUs) of pipeline quality natural gas and transform it into over 16,000 barrels of high-octane, low Reid Vapor Pressure (RVP), zero sulfur blendstock in addition to 2,800 barrels of liquefied petroleum gases. ZeoGas is currently in negotiations on the commercial agreements for the daily supply of natural gas as well as the off-take.

Two key technologies have been licensed to ZeoGas:

  • MegaMethanolĀ® production process technology - Air Liquide Global E&C Solutions
  • Methanol to Gasoline (MTG) technology - ExxonMobil Research and Engineering (EMRE)

ZeoGas has chosen Foster Wheeler as its Engineering, Procurement and Construction (EPC) partner. Schneider Electric will provide pre-FEED power and automation controls engineering and will act as the main electrical and automation contractor on the project.

With a management team with a long history in engineering, permitting, construction and operation of large-scale chemical processing plants, ZeoGas is developing a portfolio of plants to monetize cheap and abundant US natural gas by converting it into higher value, globally fungible liquid products.

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