Project Overview
Idled gas processing facilities can retain significant value long after operations have stopped, particularly when major process equipment can be recovered and redeployed elsewhere.
DTE Energy needed property at its China Township, Michigan site for a new project. Standing in the way was an idled Toromont Refrigeration hydrocarbon dew point control plant consisting of two processing trains with a combined capacity of 414 MMSCFD. The plant was located within a larger gas processing and power generation site that remained in operation.
Phoenix Equipment acquired the plant and took responsibility for dismantling and removing it from the site. Phoenix also assumed responsibility for remarketing the recovered process equipment, allowing DTE to move forward with its plans for the property without managing the plant's removal and disposition itself.
The Challenge
Phoenix had to plan the dismantlement around the gas processing and power generation operations that remained active elsewhere on the site. Reusable equipment needed to be removed without unnecessary damage, prepared for the secondary market, and ultimately placed with multiple buyers.
At the same time, Phoenix was responsible for clearing the property so DTE could move forward with its planned redevelopment. That required coordinating plant removal, equipment recovery, logistics, and asset disposition under one project without disrupting adjacent operations.
Dismantling the Plant for Equipment Recovery
Phoenix developed the dismantlement plan around two requirements: safely completing the work without disrupting ongoing site operations and preserving reusable equipment for resale.
The two processing trains were systematically dismantled, with process equipment carefully removed and prepared for the secondary market. The work was completed while the surrounding gas processing and power generation operations remained in service.
Once removed, individual pieces of equipment could be marketed to different buyers rather than waiting for a single purchaser for the complete two-train facility.
Clearing the Site for DTE
While Phoenix managed the recovery and remarketing of the equipment, DTE's objective remained straightforward: the property had to be cleared for its next project.
For DTE, Phoenix's acquisition meant the equipment disposition and physical removal could be handled under one project. DTE did not have to coordinate multiple removal contractors or independently market the surplus equipment. Phoenix managed the plant acquisition, dismantlement, equipment removal, logistics, and asset disposition.
Once removal was complete, the idled hydrocarbon dew point control facility was gone and the property was cleared for DTE's planned redevelopment.
Project Outcome
DTE regained the property it needed for its new project without having to manage the dismantlement and disposition of the idled facility. Phoenix safely removed the plant without disrupting ongoing gas processing and power generation operations, then marketed and sold the recovered equipment into the secondary process equipment market.
DTE received a cleared site for redevelopment, while reusable equipment from the former facility was sold into the secondary market. Phoenix's knowledge of those markets allowed the resale potential of the equipment to factor into its valuation of the complete plant, supporting a more competitive purchase offer to DTE.
Project Highlights
- Client: Detroit Edison (DTE Energy)
- Location: China Township, Michigan
- Facility: Hydrocarbon Dew Point Control Plant
- Original Equipment Supplier: Toromont Refrigeration
- Capacity: 414 MMSCFD
- Configuration: Two Processing Trains
- Services: Plant Acquisition, Dismantlement, Equipment Removal, Asset Recovery and Remarketing
- Outcome: Site Cleared for Redevelopment and Recovered Equipment Sold Into the Secondary Market
Unlocking Value From Idled Gas Processing Assets
An idled process plant can retain significant value even when there isn't a buyer for the facility as a whole. Individual pieces of process equipment may have their own secondary markets, and identifying those markets can change how an entire idled facility is evaluated.
Phoenix combines plant acquisition and dismantlement with equipment recovery and remarketing. That secondary-market knowledge gives Phoenix another way to value an idled facility and structure an acquisition around both equipment recovery and site clearance.
For the owner, the benefit extends beyond equipment disposition. The property can be cleared for its next use without separately managing dismantlement contractors, equipment sales, logistics, and asset disposition.