Houston-based Verde Clean Fuels said last week it awarded a FEED contract (front end engineering and design) to Chemex Global for the operator’s proposed development, construction and operation of a first-of-its-kind gas-to-gasoline plant in Martin County in Midland Basin. It’s another step in Verde’s plan with Cottonmouth Ventures, subsidiary of Midland-based Diamondback Energy, for joint development of the GTG plant.
Chemex’s delivery of the FEED study will enable the parties to reach final investment decision and selection of a construction contractor for the plant. Oil & Gas Journal said the GTG plant could “serve as a model for future GTG plants in the U.S. and abroad.” It has the potential to mitigate flaring of up to 34 million cfd of natural gas per day.