Syntroleum has signed a memorandum of understanding (MoU) with the government of ...

Syntroleum has signed a memorandum of understanding (MoU) with the government of Papua New Guinea to examine the development of a 50,000 b/d gas-to-liquids (GTL) plant as part of an industrial complex dedicated to gas-based industries near the capital city of Port Moresby. The 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 15tn cf. Approximately 6tn cf of gas reserves are currently dedicated to a planned pipeline linking Papua New Guinea to Australia. In addition, Syntroleum has had discussions with several gas reserve holders in Papua New Guinea regarding gas supplies to a GTL plant. Syntroleum has also signed another MoU with Elnusa, a subsidiary of Indonesia’s state-owned Pertamina, which establishes a joint study to identify suitable existing gas reserves for development of a Syntroleum GTL facility in the country. Meanwhile, Syntroleum licensee Ivanhoe Energy (Middle East) has signed a MoU with Egyptian Natural Gas Holding Company (EGAS) to prepare a feasibility study to construct and operate a GTL plant using the Syntroleum process. Ivanhoe has announced that EGAS has agreed to commit up to 4.2tn cf of natural gas, or about 600mn cf/d, for the anticipated 20-year operating life of the proposed project if the study validates the economics.