Kuwaiti firm eyes gas-to-liquid plan

KUFPEC to build a gas-to-liquid processing plant in Konebada

The National, Papua New Guinea

SYNTROLEUM Corp announced yesterday that it signed a deal with Kuwait Foreign Petroleum Exploration Co on the development of a 50,000-barrel-per-day gas-to-liquids (GTL) facility in Papua New Guinea. This agreement follows the formal statement of support for the GTL facility by Prime Minister Sir Michael Somare. The Prime Minister’s endorsement had paved the way for the grant of priority status to GTL facility.

It was also designated as a lead project in the country’s effort to create a domestic gas monetisation industry using a portion of its significant gas resources. When completed, the plant will produce 50,000 barrels per day of syntroleum ultra-clean S-2 diesel and other high-valued ultra-clean products.

This will make Papua New Guinea one of the few countries where ultra clean, environmentally friendly GTL fuels are produced. The plant will become an anchor facility in the newly-created Konebada Petroleum Park just outside of Port Moresby.

“This is a great achievement for Syntroleum. 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 leading oil and gas exploration companies, KUFPEC. “We are pleased that the project is moving forward with such support,” Jack Holmes, president and CEO of Syntroleum, said.

“Our focus now is to put in place the major contracts for the facility and move to financing.”

KUFPEC’s chairman and managing director Bader N Al-Khashti said: “KUFPEC is excited to be part of the GTL project in PNG with Syntroleum. This project is a stepping stone for us to embrace downstream monetisation of gas resources.”
Syntroleum owns a proprietary process for converting natural gas or synthesis gas derived from coal and other arbon-based feedstock into synthetic liquid hydrocarbons.

The company plans to use its technology to develop and participate in natural gas and coal monetisation projects in a number of global locations.

KUFPEC, formed in 1981 by its parent company, KPC, is an international energy company engaged in the exploration, development and production of crude oil and natural gas in Africa, the Middle East, Asia and Australia. KUFPEC has offices in Kuwait, Tunisia, Indonesia, Australia and Pakistan.