Enap, Syntroleum, Advantage to Study Synthetic Fuels Plant

Thursday, August 30, 2001

Chile's state oil company Enap, Tulsa-based Syntroleum and Denver-based Advantage have signed an agreement to carry out a project assessment study for a 10,000 barrel per day synthetic fuels plant at Enap's Cabo Negro industrial park near Punta Arenas in Chile's Region XII.

The project would utilize currently available natural gas delivered by pipeline from fields in Argentina and Chile, Syntroleum said in a statement. Enap is considering buying fuel from the plant and transporting it to capital Santiago, where air contamination is a serious problem.

The study should be ready this year, Syntroleum spokesperson Ron Roberson said, and Enap and Advantage have already expressed interest in obtaining a site license for Syntroleum's proprietary gas-to-liquids (GTL) technology and starting front-end engineering and design (FEED) for the plant during 1Q02 if the study indicates the feasibility of the project.

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A completion schedule for the project will be established when the final decision is made by the owners to proceed with construction.

"This is one of several potential GTL projects that we are pursuing in Latin America," Syntroleum president and COO Mark Agee said. "We are eager to complete the assessment study and move this opportunity closer to becoming a firm project."

Advantage and Enap discovered a potentially significant gas field in the area while searching for oil in 1991, and the project "not only gives us the possibility of finally monetizing this asset, but also provides additional impetus to explore for more gas in the basin," Advantage president James Dean said.