Syntroleum plans NGL/GTL project in northwestern Peru

By an OGJ Online Correspondent

LIMA, Dec. 3 -- Syntroleum Corp. plans to develop an integrated natural gas liquids/gas-to-liquids project in the Talara basin of northwestern Peru.

The project will have three phases. In Phase I, Syntroleum will build a 2,000 b/d NGL plant to upgrade and replace an existing plant owned and operated by the local power company, Electrica de Piura SA (EEPSA). The plant is expected to process gas and extract NGLs from 30 MMscfd of local production.

In Phase II, Syntroleum plans to expand that plant and build a 5,000 b/d GTL plant. At full capacity, Phase II is expected to process 100 MMscfd of natural gas, and the combined NGL and GTL production is expected to total 10,000-11,000 b/d.

In the last phase, the company will expand the GTL facility as more gas is developed nearby. The company expects that enough gas will be found to support 20,000-40,000 b/d of GTL capacity.

"This project represents a unique opportunity for the phased development of a GTL fuels plant," said Mark Agee, Syntroleum's president and CEO. "The revenue expected to be generated by the NGL facility, in addition to capital we expect to raise from additional financial and strategic investors, will support the costs of developing a GTL plant processing as much as 20,000 to 40,000 b/d of sulfur-free synthetic fuels."

Phases of the project will begin after detailed engineering studies, site acquisition, permitting, financing, completion of front-end engineering design, and execution of definitive agreements.

Syntroleum will negotiate with EEPSA and local gas producers for the assignment to Syntroleum of EEPSA's current gas supply contracts.

Syntroleum will also buy associated gas that companies are not using from the North Coast producers, including the Peruvian oil companies Petro-tech Peruana and Graña Montero Petrolera, Argentine's Perez Companc, US company Mercantile Peru, and China's Sapet Development.

EEPSA, the North Coast gas-fired generator with 150 Mw of capacity, is the main consumer. Some of the gas will also go to the Malacas plant and the 62,000 b/d Petroperu Talara refinery.

Fernando Zuñiga, chairman of BPZ & Associates, said GTL could be used in the Camisea gas project due on stream in early 2004.

In connection with the plan, Syntroleum Peru Holdings Ltd. and BPZ Energy Inc., an affiliate of Houston-based BPZ & Associates, on Friday signed an exploration and production contract with Perupetro SA, the state oil regulator, for offshore block Z-1 in the Tumbes and Talara basins.

The 1,155 sq mile block is in 30-500 ft of water. The license is for 40 years with a 7-year exploration phase. Syntroleum holds 95% and BPZ the rest.

In the exploration stage, the companies will drill at least three exploratory wells, complete field studies, reprocess at least 1,000 km of 2D seismic lines, and process and interpret at least 250 km of seismic. Perupetro estimates the cost of the minimum program at $26 million.

Previous exploration has led to an estimate of 540 MMcf of gas in the block, said Perupetro. It is anticipated that development of these reserves would facilitate Phase III expansion of the Talara project, said Syntroleum.

Related Articles

Chevron Phillips Chemical makes executive appointments

07/10/2015

Chevron Phillips Chemical Co. LLC has made several executive appointments, all effective Aug. 1.

Twelve workers killed in Nigeria pipeline explosion

07/10/2015 Eni SPA reported that an explosion occurred July 9 at the repair site for the Tebidaba-Clough Creek oil pipeline in Nigeria’s onshore Niger Delta.

Lukoil taps new blending technology for Russian refinery

07/09/2015 OAO Lukoil has selected Honeywell Process Solutions (HPS), a division of Honeywell International Inc., to provide process control technology design...

MOL completes Ithaca Norge acquisition

07/09/2015 MOL Group, Budapest, has completed its acquisition of Ithaca Petroleum Norge from Ithaca Energy Inc. for $60 million plus possible bonuses of up to...

AER orders Apache Canada to address integrity of pipeline system

07/08/2015 Alberta Energy Regulator has directed Apache Canada Ltd. to address the integrity of its pipeline management system because of “failure to follow p...

Stone confirms oil pay with Cardona development well in deepwater gulf

07/08/2015 Stone Energy Corp., Lafayette, La., encountered 288 ft of net pay in two intervals with its Cardona No. 6 development well on Mississippi Canyon Bl...

ORPIC lets contract for Sohar refinery expansion

07/08/2015 Oman Oil Refineries & Petroleum Industries Co. (ORPIC), through a contractor, has let a contract to Metso Corp., Helsinki, to supply valve tech...

Croatian refinery lets contract for upgrading project

07/07/2015 Croatia’s INA Industrija Nafte DD (INA) has let a contract to Findland’s Neste Jacobs Oy to provide project management consultancy (PMC) for a resi...

AER shuts in 16 Murphy Oil sites in Peace River region for noncompliance

07/07/2015 Alberta Energy Regulator said it has shut in or partially shut in 16 sites operated by Murphy Oil Co. Ltd. in the Peace River region. The sites wer...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


Driving Growth and Efficiency with Deep Insights into Operational Data

When Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST



On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected