By OGJ editors
HOUSTON, Mar. 1-- Sovereign Oil & Gas Co., Houston, has entered into an agreement to work exclusively with Syntroleum Corp., Tulsa, to acquire and develop stranded natural gas fields using Syntroleum's proprietary gas-to-liquids (GTL) synthetic fuels technology.
The companies will identify and license proven gas fields in remote locations for use as feedstock for Syntroleum's GTL barge, which will produce synthetic fuels from natural gas to replace high-sulfur diesel and other conventional fuels.
Last month, Syntroleum signed a memorandum of understanding with Spanish engineering contractor Dragados Industrial SA and TI Capital, the finance arm of a Middle East-based crude oil transportation and marketing company, to finance, build, own, and operate the barge plants.
Each plant will contain a 19,000 b/d liquids production plant mounted on an inland barge. The plant, which will use Syntroleum's proprietary air-based GTL technology, is capable of producing about 130 million bbl of synthetic fuel from a 1.2 tcf field.
Sovereign, led by Pres. Joseph M. Bruso, currently is active in West Africa and the Middle East.
