Press Releases

CompactGTL forms Strategic Alliance in Japan

Monday, March 15th, 2010

CompactGTL plc (“CGTL”), the modular associated gas solution for oil and gas fields, has announced it has entered into a partnership with the Japanese manufacturer Sumitomo Precision Products Co. Ltd (“SPP”).  Under the agreement, SPP will construct all reactor modules required by CGTL for the deployment of its proprietary gas solution for the upstream oil and gas industry.  Trading company Sumisho Machinery Trade Corp. (SMT), which is wholly owned by Sumitomo Corporation, is also a partner under the agreement.

Manufacturing of commercial scale compact reactor modules is expected to commence early in 2011 at SPP’s Amagasaki plant, near Osaka.  SPP are to provide CGTL with both the Steam Methane Reformer (SMR) units for syngas production as well as the Fischer Tropsch (FT) reactors for the conversion of syngas into syncrude.  Catalysts for the reactors will be manufactured by world class catalyst suppliers under separate agreements, and incorporated into the reactors in Japan.

The companies have worked closely together to develop the reactor designs, and the demonstration units manufactured by SPP have been extensively tested at CGTL’s pilot plant at Wilton, North East England.  Testing has demonstrated the viability of the process, the reactor manufacturing route and the system’s ability to handle feed gases containing up to 35% CO2 without plant modification.  The ability to process CO2 is particularly beneficial, as alternative technologies such as CNG and LNG require carbon dioxide to be removed before processing.  In addition, the CGTL process utilises the CO2 in the reforming reaction, assisting the production of syngas and ultimately syncrude.

To date, the results from 18 months of testing all aspects of the CompactGTL UK pilot plant and extensive global patenting activity extend CGTL’s leading position in modular GTL.  CompactGTL confirms expectations that it will be the first company to commercialise modular gas to liquid plant production.

The handling of associated gas from oil production is problematic and there is growing global demand to reduce and eliminate wasteful gas flaring. CGTL has completed a number of conceptual engineering studies for commercial plants to address this problem ranging from 200 bbl/d to 5,000 bbl/d for offshore and onshore applications.

Nicholas Gay, Chief Executive, CGTL said: “We are delighted to be developing strategic alliances with best in class partners to ensure that our modular gas solution becomes a commercial reality in the next phase of our development.”

Iain Baxter, General Manager at CGTL added: “As SPP and SMT have worked ever closer with us, we have been impressed by their technical experience, innovative manufacturing capability and dedication as a team to solve the challenges we posed.”

Tetsuo Abiko, General Manager at SPP said: “For more than 20 years, SPP has been supplying stainless steel plate fin heat exchangers. We believe that our core technology can contribute to reduce greenhouse gas (GHG) emissions.

Makoto Nakajima, Managing Director at SMT said: “We believe that the development with our reliable partners can create the most earth-friendly solution to wasteful gas flaring in oil and gas fields.”