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.