By OGJ editors
HOUSTON, Jan. 7 -- Vancouver, BC-based Ivanhoe Energy Inc. has formed a gas-to-liquids subsidiary in Japan that will be used to "facilitate the participation of Japanese companies" in Ivanhoe's proposed GTL project in Qatar. The new subsidiary, GTL Japan Corp. (GTLJ), will be wholly owned by a unit of Ivanhoe.
Once a contract for the Qatar GTL project is signed, Ivanhoe said, GTLJ will be assigned as much as 5% interest in the proposed project. Japanese firms will then be able to acquire equity positions in GTLJ. Ivanhoe reported that "several Japanese companies have already expressed preliminary interest" in investing. The companies' investments will then be used to fund the $150 million front-end engineering and other pre-development studies before construction of the project begins.
"The growing demand for cleaner sources of energy in Japan and the strong interest expressed there indicate that Japanese companies would be logical candidates to participate" in the project, said David Martin, Ivanhoe chairman.
Ivanhoe's GTL project in Qatar—expected to cost $5 billion—includes the development of natural gas reserves in Qatar's huge offshore North Field; the construction of a NGL plant that will produce 78,000 b/d of condensate, 24,000 b/d of propane, and 16,000 b/d of butane; and the construction of a modular GTL plant that will produce 185,000 b/d of ultraclean naphtha and diesel fuel.
