Agreement signed for commercial GTL plant
Texaco Inc., Brown & Root, and Syntroleum Corp. have agreed to develop what they expect to be the world's first commercial plant to convert natural gas into hydrocarbon liquids.
They propose to build a modular, 2,500 b/d gas-to-liquids (GTL) plant at a site outside the U.S. to be announced in first quarter 1998. The plant will produce light and heavy synthetic crude. It will use the HMX (hybrid multiphase technology) Fischer-Tropsch reactor developed under a joint operating agreement between Texaco and Syntroleum, which licenses a proprietary process for converting gas into syncrude and transportation fuels.
Brown & Root and Bateman Engineering will provide technical support.
The companies expect to issue purchase orders soon and plan to start up the plant in third quarter 1999.
Brown & Root is engineering, procurement, and construction contractor. Texaco will provide operating, process, and technical expertise.
GTL landmark?
"This project ushers in the deployment phase of the GTL industry," said Mark Agee, Syntroleum president and chief operating officer.Syntroleum says its process can work in plants as small as 2,000 b/d to as large as 50,000 b/d or more.
GTL technologies have attracted industry attention as possibly enabling development of natural gas discoveries too small to justify pipeline or liquefied natural gas projects.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.