Project would address flaring in pipeline-constrained basins.

By Dale Lunan

Verde Clean Fuels and Diamondback Energy subsidiary Cottonmouth Ventures said February 13 they had executed a joint development agreement for a facility in the Permian Basin that would produce commodity-grade gasoline from Diamondback’s associated gas production.

The agreement provides a pathway for the two to reach final definitive documents and a final investment decision (FID) on a facility that would use Verde’s patented SDG+® process to produce an estimated 3,000 barrels/day of refined gasoline.

“By consuming natural gas in the pipeline-constrained Permian Basin as feedstock, the proposed project could demonstrate the ability to mitigate the flaring of up to 34mn ft3/day of natural gas, while also producing a high-value, salable product,” they said in a statement.

The proposed facility would be located in Martin County, Texas, in the heart of the Permian, and could serve as a template for additional natural gas-to-gasoline projects throughout the Permian and other pipeline-constrained basins in the US. It could also address flared or stranded natural gas opportunities internationally.

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