Oil & Gas News

Prairie Energy Plans ‘Decarbonized’ Crude Refinery

Prairie Energy, Refinery

By: BT – Prairie Energy Partners plans to build a $5.56 billion, “decarbonized” crude refinery that the Southern Rock Energy Partners subsidiary says will included an eight-bay truck terminal, 300-car rail terminal, and four-barge marine terminal.

Now Prairie Energy just needs to finalize the location of its new refinery.

The company reports the final two competing sites are in Victoria County in Texas, and Payne and Lincoln County in Oklahoma.

Construction is expected to commence in 2023. The multi-year project will create at least 1,250 temporary jobs during construction, and 423 permanent positions at the facility, which is expected to commence operations in 2025, delivering an estimated $150 million annual economic impact for the community, Prairie Energy said.

“This scale of the project is not possible without strong support from the local community, which has agreed to support Prairie Energy Partners with local economic development incentives and service agreements,” the company said in a release.

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The “next-generation” refinery complex will reduce and eliminate 95% of greenhouse gas emissions, including carbon dioxide, carbon monoxide, methane, nitrogen oxide, and sulfur oxide; reduce water production and consumption by 90%, with 80% further recycled and repurposed; and utilize a reduced footprint of only 400 acres, Prairie Energy claimed. The facility will annually produce approximately 91.25 million barrels—or 3.8325 billion gallons—of cleaner transportation fuels like gasoline, diesel, and jet fuel from crudes domestically sourced from the Eagle Ford, Permian, Denver-Julesburg (DJ), and Bakken basins.

While most refineries consume natural gas in the process heating units, this proposed facility would instead combine pure oxygen with “blue” hydrogen produced from refining off-gases and “green” hydrogen from electrolysis, with steam being the primary waste stream. The refinery will be powered by 100% renewable electricity, either sourced from the grid or generated on-site from recycled and repurposed waste heat, geothermal, and solar assets. The facility’s hydrogen complex will be the only unit of the facility that produces carbon dioxide, which will be captured and sequestered.

Logistics would be provided by a new bidirectional refined products pipeline connecting to nearby terminals located at or near the project site.

“The resulting facility would be a novel, best-in-class, decarbonized refinery,” the company said.

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