PGS Production Services wins GTL operating contract

April 11, 2001
Syntroleum Corp., Tulsa, said Wednesday it awarded a $215.4 million operating and maintenance contract to a joint venture involving PGS Production Services, Aberdeen, and Clough Engineers Ltd., Perth, Western Australia, for the 10,000 b/d Sweetwater gas-to-liquids plant in western Australia.


By the OGJ Online Staff

HOUSTON, Apr. 11 -- Syntroleum Corp., Tulsa, said Wednesday it awarded a $215.4 million operating and maintenance contract to a joint venture involving PGS Production Services, Aberdeen, for the 10,000 b/d Sweetwater gas-to-liquids plant in western Australia.

Syntroleum has not yet announced who the construction contractor will be.

PGS Production Services is a division of the PGS Group. PGS Production and Clough Engineering Ltd., Perth, Western Australia, have a joint venture to provide complete operating services for the GTL plant on the Burrup Peninsula. The plant will convert natural gas into ultraclean and sulfur-free synthetic specialty products such as lubricants, industrial fluids, and paraffins, as well as synthetic transportation fuels (OGJ Online, Feb. 23, 2001).

Jim Atack, PGS Production managing director, called the contract �a milestone� for his company�s growth strategy of expanding its overseas markets.

�With our extensive operations experience, we believe this will be the first of a number of opportunities to provide operational services for Syntroleum plants throughout the world," Atack said.

PGS-Clough will provide complete operating services for the GTL plant, from the natural gas feedstock inlet through to the export wharf where the finished products will be shipped to market. Construction is slated to begin later this year.

During the construction phase, PGS-Clough will provide operations planning services to Syntroleum, working with the engineering contractor to develop operating manuals, training programs, and comprehensive maintenance programs. PGS-Clough will provide staffing for the operation and maintenance of the plant when it comes on stream.

Syntroleum has signed a 20-year gas supply contract for the plant with North West Shelf Venture Partners.