Methanex, Syntroleum end talks on GTL partnership

Tulsa-based Syntroleum Corp. and Methanex Corp.,Vancouver, BC, last week said they ended discussions about Methanex's intention to become an equity partner in Syntroleum's Sweetwater gas-to-liquids (GTL) project in Western Australia. The firms also ended negotiations to form a related GTL joint venture.


Tulsa-based Syntroleum Corp. and Methanex Corp.,Vancouver, BC, last week said they ended discussions about Methanex's intention to become an equity partner in Syntroleum's Sweetwater gas-to-liquids (GTL) project in Western Australia. The firms also ended negotiations to form a related GTL joint venture.

Tulsa-based Syntroleum Corp. and Methanex Corp.,Vancouver, BC, last week said they ended discussions about Methanex's intention to become an equity partner in Syntroleum's Sweetwater gas-to-liquids (GTL) project in Western Australia.

The Sweetwater project is a 10,000 b/d GTL specialty products plant under development. Methanex signed a letter of intent with Syntroleum on Jan. 24 of this year regarding its participation as a minority equity partner in the project. Methanex shortly after entered negotiations with Syntroleum to explore the possibility of forming a joint venture to develop a series of GTL specialty products plants.

The two companies ended their talks after being unable to reach an agreement for the joint venture's terms and also ended Methanex's participation in the Sweetwater project.

"We are disappointed in the outcome but we understand that situations and corporate business priorities are subject to change," said Mark Agee, president and CEO of Syntroleum. Agee noted that discussions with other potential equity partners are already under way.

First announced in November 1999, engineering work is currently underway on the Sweetwater project. Ina Tessag of Germany is engineering contractor for the project.

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