CompactGTL and KazakhOil Aktobe agree gas contract for first commercial plant
Friday, March 13th, 2015
CompactGTL is pleased to announce that it has signed an agreement with KazakhOil Aktobe for the supply of gas for its first commercial gas to liquids (GTL) plant in Kazakhstan. KazakhOil Aktobe, a joint venture company between Lukoil, KazMunaiGas and Sinopec, and CompactGTL have successfully negotiated and agreed all of the commercial terms for the contract which has now been submitted to the respective shareholder boards for approval.
The CompactGTL plant will be located in the Aktobe region of Kazakhstan and will take gas that would otherwise have been flared and convert it into synthetic diesel. Engineering is well advanced and the plant is scheduled to be operational during 2018.
This announcement follows the signing of a breakthrough memorandum with the Ministry of Oil and Gas of the Republic of Kazakhstan in March 2014 for development of the world’s first small scale GTL plant. This latest development is another significant milestone in introducing CompactGTL’s new and innovative technology into the region to address the issue of gas flaring and to produce fuel for local consumption.
Kazakhstan offers considerable potential for CompactGTL’s proven small-scale GTL technology. The country is a major producer of oil and is also one of the leaders globally in seeking to use new technology to bring environmental benefits to the country. The new GTL plant will contribute to President Nazarbayev’s “Kazakhstan 2050 Strategy”, which aims to generate new sources of economic growth, by creating a local high technology industry that processes associated gas to produce fuels for local consumption.
The agreement was signed at the 3rd Caspian Corridor Conference at the European Bank for Reconstruction and Development (EBRD) in London, and the signing ceremony was overseen by CompactGTL Chairman Dr. Tony Hayward.
CompactGTL Chief Executive Officer, Edmund Buckley, said “This is a major milestone for CompactGTL. The agreement is a key step towards the commercialisation of this groundbreaking project, and demonstrates industry confidence in CompactGTL’s technology and people. We look forward to continuing to work alongside our partners in Kazakhstan to deliver the world’s first small scale GTL plant.”