Syntroleum signs deal with PNG, RI and Egyptian firms

Syntroleum signs deal with PNG, RI and Egyptian firms

Jonathan Vuocolo, Dow Jones/Tulsa, Oklahoma

Syntroleum Corp. said three recently signed memorandums of
understanding could lead to the construction of a gas-to-liquids
plant using its proprietary Fischer-Tropsch technology.

The owner and licenser of a process designed to convert
natural gas into synthetic liquid hydrocarbons said in a press
release on Thursday that it has signed an MOU with the government
of Papua New Guinea to examine the development of a
50,000-barrel-a-day GTL plant as part of a gas-based industrial
complex near Port Moresby.

The company will work with the Ministry of Planning and
Development to study the feasibility of a large GTL plant that
would share a natural gas pipeline and infrastructure facilities
with other possible gas conversion participants, including
ammonia, methanol and power plant developers.

Syntroleum said Papua New Guinea has an estimated 15 trillion
cubic feet of proven and probable natural gas reserves. About 6
trillion cubic feet of natural gas reserves are dedicated to a
planned pipeline linking Papua New Guinea to Australia.
Syntroleum also has had discussions with several gas reserve
holders in Papua New Guinea regarding gas supplies to a GTL
plant.

The company signed another MOU with PT Elnusa, a unit of the
Indonesian state-owned company Pertamina, to establish a joint
study to identify suitable existing gas reserves for development
of a Syntroleum GTL facility.

Also, Syntroleum licensee Ivanhoe Energy Inc. signed an MOU
with Egyptian Natural Gas Holding Co. to prepare a feasibility
study to construct and operate a GTL plant using the Syntroleum
Process.

Ivanhoe said EGAS has agreed to commit up to 4.2 trillion
cubic feet of natural gas, or about 600 million cubic feet a day,
for the anticipated 20-year operating life of the proposed
project if the study finds the project to be profitable. The
study could lead to the construction of a GTL plant using
Syntroleum technology.

Syntroleum shares rose 7.2 percent, or 52 cents, to $7.72 in
recent Nasdaq composite trading.