By the OGJ Online Staff
HOUSTON, Mar. 13 -- Ivanhoe Energy Inc., Whitehorse, Yukon, Canada, has initiated a commercialization study in Japan to investigate opportunities for utilization of gas-to-liquids (GTL) and NGL products that would be produced in Ivanhoe's proposed Qatar project.
The Qatar GTL project involves the development of gas reserves in an area of supergiant North field off Qatar and the transportation of produced gas to NGL and GTL plants having the capacity to convert the gas into 155,000 boe/d of NGL products and 185,000 b/d of GTL fuels.
The commercialization study will investigate the marketing and financial opportunities in Japan for the project. The study will include identifying the role that Japanese companies can play as product purchasers as well as supplying equipment, materials, services, and financing for the project.
"As we progress towards a definitive agreement with Qatar Petroleum [Co.} for this major project, we are also exploring financial and marketing opportunities in Japan and elsewhere," said Leon Daniel, Ivanhoe Energy president and CEO.
Ivanhoe initiated the study by signing a memorandum of understanding with Japan's Inpex Corp., which will contribute its exploration and production expertise, and Mitsui & Co. Ltd., which will support the marketing and financing aspects. Other Japanese companies will be invited to participate.
Ivanhoe Energy has made the application of GTL technology to stranded gas reserves a key company strategya It holds a master license for GTL technology from Syntroleum Corp., Tulsa.
Syntroleum is the developer of a proprietary process for converting natural gas into synthetic liquid hydrocarbons.
Several large-scale new plants, with capacities of 33,000-80,000 b/d, are being considered by Royal Dutch/Shell unit Shell Gas & Power, ExxonMobil Corp., and Sasol Ltd., in Argentina, Iran, Malaysia, and Qatar. Other companies, including Syntroleum, have also proposed projects (OGJ, Feb. 25, 2002, p. 62).
