Syntroleum in MOUs to Explore Gas-to-Liquids Possibilities in Papua New Guinea, Indonesia and Egypt
17 November 2005
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| Syntroleum’s air-based FT process targets mid-size gas fields. |
Syntroleum has signed three different memoranda of understandings (MOU) that could lead to the construction of gas-to-liquids (GTL) plants using its proprietary Fischer-Tropsch technology in Papua New Guinea, Indonesia and Egypt.
Syntroleum signed a MOU with the Government of Papua New Guinea to study the feasibility of developing a 50,000-barrel-per-day GTL plant as part of an industrial complex dedicated to gas-based industries near the capital city of Port Moresby.
The proposed GTL plant would share a natural gas pipeline and infrastructure facilities with various other possible gas conversion participants, including ammonia, methanol and power plant developers.
Proved and probable natural gas reserves in Papua New Guinea are estimated to be more than 15 trillion cubic feet. Approximately six trillion cubic feet of natural gas reserves are currently dedicated to a planned pipeline linking Papua New Guinea to Australia. Additionally, Syntroleum has had discussions with several gas reserve holders in Papua New Guinea regarding gas supplies to a GTL plant.
In Indonesia, Syntroleum signed a MOU with PT ELNUSA, a subsidiary of the Indonesian state-owned company Pertamina. The MOU establishes a joint study to identify suitable existing gas reserves for development of a Syntroleum GTL facility.
Syntroleum licensee Ivanhoe Energy (Middle East) Inc. signed the MOU with Egyptian Natural Gas Holding Company (EGAS) to prepare a feasibility study to construct and operate a GTL plant using Syntroleum’s technology. Ivanhoe has announced that EGAS has agreed to commit up to 4.2 trillion cubic feet of natural gas, or about 600 million cubic feet per day for the anticipated 20-year operating life of the proposed project if the study validates the economics of the project.
Ivanhoe Energy and EGAS will enter into negotiations for a definitive agreement for the development of a project if the feasibility study indicates that a GTL plant is economically viable. The study will be performed in collaboration with Syntroleum's engineering staff.
Syntroleum’s air-based technology results in a more compact Fischer-Tropsch plant that can be deployed to gas reserves that would otherwise remain stranded. The company is targeting applications of its technology at gas reserves in the two-to-five trillion cubic foot range—which are the targets of the MOUs. (Earlier post.)
The company had a setback in October following the unsatisfactory drilling results from the Aje-3 appraisal well in Nigeria designed to justify the construction of and to test a GTL barge. (Earlier post.)
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