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Syntroleum Signs Gas-to-Liquids Development Agreement with Kuwait for Papua New Guinea

Syntroleum Corporation has signed a Joint Development Agreement with Kuwait Foreign Petroleum Exploration Company, K.S.C. (KUFPEC) to join in the development of a 50,000 barrel per day Gas-to-Liquids (GTL) facility in Papua New Guinea (PNG).

When complete, the plant will produce 50,000 barrels per day of Syntroleum S-2 synthetic diesel—a paraffinic, high-cetane distillate fuel essentially free of sulfur, olefins, metals, aromatics or alcohols—and other high-valued products.

The plant will become an anchor facility in the newly created Konebada Petroleum Park near the capital city of Port Moresby.

The Prime Minister of PNG, Sir Michael Somare, granted the GTL facility was priority status and designated it as a lead project in PNG’s effort to create a domestic gas monetization industry utilizing a portion of its significant gas resources.

We have completed our feasibility study, received the PNG Government’s strong support, and have been joined in the project by one of the world’s leading oil and gas exploration companies, KUFPEC. We are pleased that the project is moving forward with such support. Our focus now is to put in place the major contracts for the facility and move to financing.

—Jack Holmes, president and CEO of Syntroleum

Syntroleum developed a compact Fischer-Tropsch process for the conversion of natural gas or synthesis gas derived from coal and other carbon-based feedstock into synthetic liquid hydrocarbons.

The company yesterday announced the sale of its exploration and production facilities in Nigeria. (Earlier post.)



PNG better use the funds from their natural resources to develop their nation. Ultimately, they may be able to develop renewables from current and biomass sources.


This is one way of getting energy from where it is to where it is used. I agree, it would be good if the money went to help all the people live a better life and plan for their futures.


The current promising upsurge in the oil and gas exploration and development in Papua New Guinea has been recieved with much delight, for both the PNG government and the investors, and in some way, has continued to underpin the confidence of investors. The current "gas to liquids development agreement" will have been, if implemented and proceeds to production, a 'dawn of a new era',strengthening PNG's overall economic performance and development.


I hope it is better than Nigeria, where 100m people have yet to see much prosperity from the mining of their resources.

Winson Ng

I fully agree with this GTL development. It's long overdue in PNG. It's definately better option than building a pipeline to Australia. PNG need this kind of development to start-up their downstream ambition which benefit most to the local employment rather than the loyalty base export which benefit on the selected fews.

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