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PNG gas attracts more players

Friday, 22 December 2006

GAS-TO-LIQUIDS specialist Syntroleum Corporation has signed a joint development agreement with Kuwait Foreign Petroleum Exploration Company (KUFPEC), to participate in the development of the 50,000 barrel per day gas-to-liquids (GTL) facility in Papua New Guinea.

The proposed plant, when completed, will produce Syntroleum Ultra Clean S-2 Diesel and other clean products, making PNG one of a few countries producing environmentally friendly GTL fuels, according to Syntroleum.

Syntroleum president and chief executive Jack Holmes said the proposal had received formal support from PNG Prime Minister Sir Michael Somare following the submission of a feasibility study.

He also claimed the project had been granted "priority status" and had been designated as a "lead project" in PNG's quest to create a commercial gas industry.

"We have completed our feasibility study, received the PNG Government's strong support, and have been joined in the project by one of the world's lead exploration companies, KUFPEC," Holmes said.

"We are pleased that the project is moving forward with such support [and] our focus now is to put in place the major contracts for the facility and move to financing."

KUFPEC chairman and managing director Bader Al-Khashti said he was "excited" to be part of the project, describing it as a stepping stone for the company to "embrace downstream monetisation of gas resources".