10-03-2014

CompactGTL announces 3,000 bpd commercial GTL project in Kazakhstan

CompactGTL announces that its Chairman Tony Hayward and Uzakbay Karabalin, the Minister of Oil & Gas of the Republic of Kazakhstan, have signed a Memorandum of Co-operation to support the development and implementation in Kazakhstan of innovative associated gas processing technologies with the realisation of the world’s first commercially deployed small scale GTL plant.

In furtherance of the Memorandum of Co-operation, signed at the London Stock Exchange during the Caspian Corridor Conference, CompactGTL intends to build the world’s first commercially deployed small-scale gas-to-liquids (GTL) plant in Kazakhstan. The proposed plant is expected to bring with it significant future commercial and environmental benefits. Up to 820,000 cubic metres of associated gas that might otherwise be wasted will be fed through the plant every day to produce approximately 3,000 bpd of synthetic diesel. In a year, the plant is expected to monetise over 300 million cubic metres of gas.

Kazakhstan offers considerable potential for CompactGTL’s proven small-scale GTL technology. Kazakhstan 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 “Strategy of innovative development of Kazakhstan until 2020” by creating a local high technology industry that processes associated gas to produce fuels for local consumption. CompactGTL, together with investors from Kazakhstan, have agreed to finance, design and build the up to 3,000 bpd GTL plant, using CompactGTL’s proven technology and plant design.

Kanatbek Safinov, Executive Secretary, Ministry of Oil and Gas of the Republic of Kazakhstan said:
“Kazakhstan is very interested in attracting innovative and high technology businesses into its oil and gas industry in order to implement the decision of the President of Kazakhstan to expedite industrial development of the country. I believe that this innovative project will both help solve a number of social and environmental issues in the Republic of Kazakhstan and be mutually commercially beneficial for the parties.”

Tony Hayward, Chairman of CompactGTL said:
“We are very pleased to be able to announce the decision to build the first small-scale commercial GTL plant. This is a significant step forward, not just for CompactGTL, but also for the small-scale gas-to-liquids industry. Kazakhstan has clearly identified the significant economic benefits a small scale GTL plant can bring. We welcome the support provided by the Kazakhstan Government and the signing of this Memorandum of Co-operation demonstrates the confidence of the Kazakhstan Government and of the Kazkhstani investors in CompactGTL’s technology and people.”

CompactGTL expects to have a fully functioning small-scale GTL plant in operation in 2017. It is expected that initial engineering will take approximately 12 months, followed by a construction period of around two years, highlighting the relative speed with which such a project can be delivered.