G2X Energy Will Finalize an Option to Lease Land Needed to Build a $1.3 Billion Facility

G2X Energy will this week finalize an option to lease land needed to build a $1.3 billion natural gas-to-gasoline facility at The Port of Lake Charles in Southwest Louisiana, Louisiana Economic Development said Tuesday. 

The lease is for 200 acres in the Industrial Canal at the Port of Lake Charles "where the company will have the flexibility of shipping gasoline by pipeline or sea," according to a statement released by the state agency. 

G2X Energy could not immediately be reached for comment. 

For the facility, G2X Energy will use natural gas to produce methanol. The methanol will then be converted to final gasoline. About 10% of the output will be liquefied petroleum gas or propane, the statement said. 

"We are very excited to be working with the State of Louisiana and The Port of Lake Charles on this project," G2X Energy President and CEO Timothy Vail said in the statement. "Our natural gas-to-gasoline conversion process -- developed and backed by one of the world's largest energy companies -- is a proven solution for the clean and economic production of transportation fuels from abundant domestic natural gas. The Lake Charles location is ideally suited for our plant facilities, and [Louisiana Governor Bobby Jindal's] teams have been very proactive in working with us to ensure a successful project. We look forward to the completion of our preliminary evaluation of the opportunity and a firm decision to move forward with the project." 

If G2X moves forward with the project, construction would begin in 2014, with an estimated completion date of 2017, the statement said. 

Louisiana Economic Development offered the company a $5 million performance-based grant for infrastructure improvements at the port, which include an access road, a dock facility and utilities. G2X Energy is also expected to use Louisiana's Quality Jobs and Industrial Tax Exemption incentives.