Nippon studies GTL project

Nippon studies GTL project

TOKYO (Dow Jones): Nippon Mitsubishi Oil Corp. said Monday it
has been conducting a feasibility study offshore in the Timor
Sea, northwestern Australia, on a project for turning natural gas
into low-polluting fuel called gas-to-liquid, or GTL.

"We are studying the construction of a floating GTL facility
as an option" to utilize the natural gas produced from block
AC/P23 in the Crux field, located 700 kilometers west of the city
of Darwin, a company spokesman said.

The feasibility study is likely to last at least another year,
he said.

He added that the Crux field may be too far away from a
possible onshore liquefaction plant site to make it feasible as a
liquefied natural gas project.

According to Nippon Mitsubishi Oil, GTL can be used as a
substitute for naphtha, as well as a feedstock for kerosene and
gasoil.