Sinopec, Syntroleum sign GTL, CTL pact

China Petroleum & Chemical (Sinopec) and Syntroleum Corp., Tulsa, have signed a nonbinding memorandum of understanding aimed at advancing gas-to-liquids and coal-to-liquids technologies.

Eric Watkins
Senior Correspondent

LOS ANGELES, Feb. 23 -- China Petroleum & Chemical (Sinopec) and Syntroleum Corp., Tulsa, have signed a nonbinding memorandum of understanding (MOU) aimed at advancing gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies.

The MOU covers cooperation in verifying Syntroleum GTL technologies on an industrial scale, construction of a 17,000 b/d GTL plant and a 100 b/d CTL pilot plant in China, and joint marketing of Sinopec Syntroleum technology.

The MOU also calls on Syntroleum to provide Sinopec with access to its complete set of proprietary GTL technologies including catalyst technology and Fischer-Tropsch technologies related to CTL for use in China on an exclusive basis during the period of cooperation.

After signing a formal cooperation agreement, Sinopec agrees to provide Syntroleum with $20 million/year for 5 years to support development of the technology.

The MOU also calls on Sinopec to start feasibility studies for the construction of the GTL plant in China and CTL pilot plant, upon the completion of the cooperation agreement.

Both plants will be fully capitalized by Sinopec, with technological support from Syntroleum. The projects will provide the basis for the parties to jointly market the combined FT technology capabilities to third parties in China.

A Sinopec spokesman said the company was investing in the technology to complement existing efforts to develop its gas reserves in the long term.

Last December, Syntroleum signed a joint development agreement with Kuwait Foreign Petroleum Exploration Co. (KUFPEC) for development of a 50,000 b/d GTL plant in Papua New Guinea (OGJ Online, Dec. 22, 2006).

Contact Eric Watkins at hippalus@yahoo.com.

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