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.