$32 million loan approved for proposed natural gas facility

A rendering of a natural gas-to-liquids plant proposed at Trenton, North Dakota, by the Canadian company Cerilon. (Courtesy of Cerilon)

The North Dakota Department of Commerce has announced a $32 million loan for a large-scale natural gas processing facility to add value to the state’s natural gas production.

The loan from the North Dakota Development Fund is the latest incentive for Canada-based Cerilon to build a gas-to-liquids plant between Trenton and Williston in Williams County.

Cerilon is seeking a site permit for the plant from the Public Service Commission. The facility would be built in two stages with each phase a $3.2 billion project.

Each Cerilon GTL ND facility will be able to convert 240 million cubic feet of natural gas to 24,000 barrels of liquid hydrocarbon products per day.

In January, the North Dakota Industrial Commission approved a $9.5 million grant and a $8.5 million loan to Cerilon through the Clean Sustainable Energy Authority.

Two counties also have approved incentives.

The Williams County Commission in January approved a loan of $10 million to Cerilon to acquire the land it needs. The 2.5% interest rate loan is to be repaid within four years.

Williams County also issued a $6 million no-interest loan in 2021. It is to be paid back over a 24-month period once commercial operations commence or seven years, whichever is earlier.

Neighboring McKenzie County in 2023 approved a $5 million loan for Cerilon through its Jobs Development Authority.

The North Dakota Development Fund also approved a $3 million loan to Valence Natural Gas Solutions for six micro flare gas capture units, which will help reduce emissions and capture natural gas that is a byproduct of oil production.

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