By the OGJ Online Staff
HOUSTON, Feb. 22�Syntroleum Corp., Tulsa, said Thursday that preliminary engineering work has indicated its proposed 10,000 b/d Sweetwater gas-to-liquids plant in western Australia would cost $506 million.
The estimate by Tessag Industrie Anlagen GMBH covered engineering, procurement, and construction (EPC).
Syntroleum said the quote includes provisions for broader refining capabilities than originally proposed, but does not include interest during construction or the costs of Syntroleum's proprietary catalysts.
Syntroleum and Tessag were working on a fixed-price EPC contract, said Syntroleum, and when that is executed, Syntroleum could proceed with completing financing.
Mark Agee, Syntroleum president and CEO, said, "We are very comfortable with Tessag's quote and the very favorable economic model it produces for the Sweetwater project. We are looking forward to when construction can begin and, ultimately, to the day when we can commence operations.''
The plant, on the Burrup Peninsula, would convert natural gas into ultraclean and sulfur-free synthetic specialty products such as lubricants, industrial fluids, and paraffins, as well as synthetic transportation fuels.
Syntroleum has signed a 20-year gas supply contract for the plant with the North West Shelf Venture Partners. Merrill Lynch has been retained to help obtain financing for the project.