Texas Business Partners Plan World-First Natural Gas-to-Gasoline Plant in Permian Basin
Two business partners in Texas have announced plans to launch a groundbreaking natural gas-to-gasoline synthetic gas plant in the Permian Basin, a move that could have global implications for the oil and gas industry. Verde Clean Fuels, based in Houston, has successfully field-tested their proprietary concept with a $20 million investment from Midland-based Diamondback Energy, a leading producer in the region.
The innovative four-step process developed by Verde Clean Fuels would convert stranded gas from Diamondback Energy’s operations into gasoline suitable for use in cars and trucks without the need for further refining. With a projected cost of $325 million, the plant is expected to produce over 4,300 barrels per day of RBOB gasoline, using 50 MMcfd of feedstock from stranded gas. The plant is set to be located in Martin County, Texas, and is scheduled to begin operations in the second half of 2026.
The technology, known as STG+ (synthesis gas-to-gasoline plus liquid fuels), has been perfected through a four-stage process that converts syngas natural gas to methanol and then to gasoline in a continuous loop. The process is designed to minimize waste, with process water being the only by-product.
Verde Clean Fuels also has plans to explore the production of low-carbon diesel and aviation fuel using similar methods in the future. This development harkens back to the early days of oil and gas history, with gasoline being discovered as a byproduct of distilling oil for kerosene in the 19th century.
The partnership between Verde Clean Fuels and Diamondback Energy signals a new era of innovation in the oil and gas industry, with potential global applications for addressing stranded gas and reducing waste in pipeline-constrained areas.
