MRO Magazine

Macquarie Capital Mandated as Financial Advisor on ZeoGas LLC’s Project Debt


June 9, 2015
By Business Wire News

HOUSTON

ZeoGas LLC (ZeoGas), a developer of plants to monetize cheap and abundant US natural gas by converting it into higher value, globally fungible liquid products like high-octane gasoline blendstocks, has mandated Macquarie Capital (Macquarie) to serve as its financial advisor for the arrangement of a non-recourse project financing debt in relation to its first proposed plant strategically located in the upper Gulf Coast (Project). Macquarie, already a participant in ZeoGas’ development financing, has also extended its participation in ZeoGas’ development financing as part of this debt mandate.

ZeoGas has previously announced that it has licensed from Air Liquide Global E&C Solutions, a subsidiary of Air Liquide Group, the world leader in gases, technologies and services for Industry and Health, (“Air Liquide”) its 5,000 metric ton per day MegaMethanol® production process technology and that it has licensed ExxonMobil Research and Engineering Company’s (EMRE) methanol to gasoline (MTG) technology that uses proven zeolite catalytic process to convert methanol into high-octane, zero-sulfur gasoline blendstock and LPGs, particularly propane and iso-butane. ZeoGas’ EPC partner, Amec Foster Wheeler ((LSE: AMFW)(NYSE: AMFW)) announced on September 18, 2014 that it had entered into a Collaboration Agreement with ZeoGas LLC, under which AMFW has since completed a targeted price EPC estimate to construct the Project. ZeoGas is now in negotiations on the commercial agreements for the daily supply of approximately 155,000 MMBTUs of pipeline quality natural gas and off-take of over 16,000 barrels per day of high-octane, low RVP, zero sulfur gasoline blendstock and 2,800 barrels per day of LPGs. As part of the debt mandate, Macquarie is advising ZeoGas on the alternative commercial structures.

Pending the commercial agreement and receipt of pre-construction air quality permits, ZeoGas and Macquarie expect to bring the ZeoGas project debt to market in the second quarter of 2016. The Project would then be scheduled for construction completion and start-up in 2019.

Macquarie Capital has extensive expertise in project financing advisory and has recently acted as financial advisor to Freeport LNG Expansion, L.P., a liquefied natural gas project. ZeoGas has also engaged Baker Botts as both corporate and commercial counsel and Locke Lord as EPC counsel. Audubon Engineering is ZeoGas’ Owner’s Engineer, and Rambol Environ is its environmental consultant on pre-construction air quality permitting and other environmental matters.

”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,” said Timothy D. Belton, Founder and CEO of ZeoGas. “Macquarie’s expertise and advice will be invaluable in helping to bring this project to fruition.”

ZeoGas’ management has extensive experience in acquiring, developing and operating energy assets. The company expects to make further announcements in the near future concerning commercial agreement commitments, feedstock supply arrangements, permitting and construction contracts.

ZeoGas LLC is developing a portfolio of plants to convert plentiful and clean natural gas into gasoline, employing proven component technologies like ExxonMobil’s MTG and Air Liquide’s MegaMethanol® technology. Its management team represents over 100 years of direct experience managing complex organizations and the engineering, permitting, construction and operation of large-scale chemical processing plants. For more information, visit www.zeogas.com

Macquarie Capital comprises Macquarie Group’s corporate advisory, capital markets and principal investing capabilities. Macquarie Capital’s expertise spans a variety of industry sectors including telecommunications, media, entertainment, gaming, financial institutions, industrials, energy, resources, real estate, infrastructure, utilities and renewables. For more information, visit www.macquarie.com/us

Any statements made in this press release which are not historical facts are forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, including those concerning potential developments affecting the business, prospects, financial condition and other aspects of ZeoGas LLC, the company to which this release pertains. The actual results of the specific items described in this release, and the company’s activities, industry and operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, actions by third parties, general market and economic conditions, technical factors, the availability of outside capital, and other factors, many of which are beyond the control of the company. ZeoGas LLC disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed an offer to sell, or a solicitation of an offer to buy, any securities.

ZeoGas LLC
Dean Spies, (877) 958-0601
Chief Financial Officer
dspies@zeogas.com