Sinopec And Syntroleum Announce Joint Technology Development Plan
Tulsa, OK - China Petroleum & Chemical Corporation and Syntroleum Corporation (Syntroleum) have recently announced their intention to cooperate. Sinopec Corp. is an integrated energy and chemical company, with its oil refining capacity ranking No. 4 in the world. Syntroleum Corporation, located in Tulsa, Oklahoma, has developed GTL technologies with unique features. The two parties have signed a non-binding memorandum of understanding (MOU). This establishes a joint technology development effort to advance natural gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies, cooperation in verifying Syntroleum GTL technologies on an industrial scale, construction of a 700,000 tonne per annum (17,000 barrel per day) GTL plant and a 3,000 tonne per annum (100 barrel per day) CTL pilot plant in China using Syntroleum's technologies, and jointly marketing SSTC technology (Sinopec Syntroleum technology) in China through the most effective means. The MOU 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 per year over the next five years to support development of the technology. Sinopec and Syntroleum have already commenced relevant work on a legally binding cooperation agreement "Research and Development Cooperation Agreement".
The MOU also calls on Sinopec to start feasibility studies for the construction of a 700,000 tonne per annum GTL plant in China and a 3,000 tonne per annum CTL pilot plant, upon the completion of the cooperation agreement. Both plants will be fully capitalized by Sinopec, with technological support from Syntroleum. The two projects will provide the basis for the two parties to jointly market the combined FT technology capabilities to third parties within China. This will give the parties a competitive position in providing engineering and technological capabilities to the China market.
Syntroleum is jointly developing a 50,000 barrel per day GTL project in Papua New Guinea (PNG) with Kuwait Foreign Petroleum Exploration Corporation (KUFPEC). Following a joint Sinopec/ Syntroleum visit to PNG, Sinopec has expressed its wish to become the main Engineering, Procurement and Construction contractor for this GTL project. Syntroleum has expressed its firm desire to cooperate with Sinopec in the project.
"We have conducted many years of research and testing on Fischer-Tropsch technology. We are convinced that Syntroleum's slurry column reactor technology is one of the most advanced in the world," said Mr. Cao Xianghong, Chief Engineer of Sinopec. "We believe that Sinopec's Fischer-Tropsch expertise combined with that of Syntroleum, will enable us to jointly provide world-class Fischer-Tropsch solutions to the marketplace and help meet the growing demand for this technology in China."
"Having a highly sophisticated refining and construction company like Sinopec as a partner is a major advancement of Syntroleum's business. Our FT technologies developed through extensive research are suitable for different types of plants and enable us to meet the requirements of Sinopec," said Jack Holmes, president and CEO of Syntroleum. "The full-scale 700,000 tonne per annum GTL plant to be constructed, along with the 3,000 tonne per annum CTL pilot plant will place Syntroleum and Sinopec as leaders in the Fischer-Tropsch industry in China. Together with Sinopec, we believe that our combined technology will be successful in capturing market share in China."
SOURCE: China Petroleum & Chemical Corporation and Syntroleum