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Bechtel awarded FEED contract for Nacero’s new natural gas-to-gasoline plant

By Mary Page Bailey |

Nacero (Houston) has awarded Bechtel (Reston, Va.) the Front-End Engineering and Design (FEED) contract for the first natural gas-to-gasoline manufacturing facility in the United States.



Nacero’s 115,000 barrel per day plant in Penwell, Texas, near Odessa in the heart of the Permian basin, will be the first gasoline manufacturing plant in the world to incorporate carbon capture, sequestration, and 100% renewable power. 



The use of renewable natural gas and mitigated flare gas will make it possible to reduce the lifecycle footprint or Nacero’s cost-competitive, zero sulfur gasoline to zero over time. Nacero’s products will be sold to retailers in Texas and the Southwest, and through Nacero-branded outlets. 



“We are thrilled to partner with Bechtel for our flagship facility in Penwell. Bechtel’s experience with large-scale projects and commitment to excellence is second to none,” said Jay McKenna, Nacero’s President and CEO. “For America to achieve its domestic energy and climate change mitigation goals we need big vision and laser-focused execution. Bechtel is center stage in helping us get there.”



“We are delighted by this opportunity to support Nacero’s pioneering approach to delivering lower carbon fuel with our record of large-scale project success,” said Paul Marsden, President, Bechtel Energy. “This project is truly a game-changer. It will give everyday American drivers a chance to participate in the energy transition and will be a model for the kind of environmental improvement America is looking to bring about.”



On completion of the FEED, Bechtel will deliver a lump sum, turnkey EPC price proposal. Bechtel will employ its range of sustainable design and execution tools to bring about carbon reduction in the supply chain and reduce the carbon footprint of the project during construction. Bechtel and Nacero have a shared commitment to best in class environmental, social, and governance (ESG) practices. Haldor Topsoe is providing process technologies for Nacero’s Penwell project.



Nacero’s Penwell project is one of the largest energy transition infrastructure opportunities in the United States. The project is expected to employ 3,500 skilled construction workers on site at peak during the four years first phase construction. The second phase of construction will take an additional two years and bring plant capacity to 115,000 barrels per day. When fully operational, the plant will employ 350 full-time operators and maintenance personnel.

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