Syntroleum Corporation has announced plans to develop an integrated NGL/GTL (natural gas
liquids/gas-to-liquids) project in the Talara Basin of NW Peru. The company expects to develop the project in three distinct phases. Phase I will consist of construction of a nominal 2000bpd NGL plant to upgrade and replace an existing plant. Phase II involves the expected expansion of the NGL plant and the construction of a 5000bpd GTL plant. Phase III involves expansion of the GTL facility as additional natural-gas reserves and production in the area are developed. In connection with the proposed project, Syntroleum has signed a license contract with the government of Peru under which Syntroleum has acquired exploration and production rights to the offshore oil and gas block designated as Z-1. Previous exploration activity in the area has already identified gas and condensate reserves, which, up to now, have remained undeveloped due to lack of an adequate market for the gas. It is anticipated that development of these reserves would facilitate Phase III expansion of the Talara project.
