Syntroleum Corp. Partners with Enron to Develop GTL Plant in Wyoming

Strategic Insights -

Syntroleum Corp. and Enron Corp. have partnered to develop the first commercial gas-to-liquids (GTL) plant in North America, located in Sweetwater County, Wyoming. The planned 8,000 barrels per day (b/d) plant will convert 80 million cubic feet per day (MMcfd) of natural gas into specialty products, including synthetic lubricants and refinery feedstock. Enron's investment of $14.5 million will be used to support the project, with the total value of the GTL complex estimated to be between $200 million and $250 million.

Key Takeaways:

  • Syntroleum Corp. has partnered with Enron Corp. to develop an 8,000 b/d GTL plant in Sweetwater County, Wyoming, with an estimated total value of $200 million to $250 million.
  • Enron has committed to invest $14.5 million in the project, in addition to their existing $1 million contribution.
  • SLH Corp., a venture capital company, has also invested $1 million in the project, bringing their total investment to $4.5 million.
  • The plant will convert 80 MMcfd of natural gas into specialty products, including synthetic lubricants and refinery feedstock.
  • The project has been licensed to use Syntroleum's proprietary gas conversion technology, which has previously been licensed to companies such as Texaco, Atlantic Richfield, and Kerr-McGee Corp.
  • The plant is expected to generate 50 megawatts of electricity, which will be sold to third parties.
  • Syntroleum will consider financing the remainder of the project through partnerships or an initial public offering (IPO) of its common stock.

Statistics:

  • $14.5 million: Enron's investment in the project.
  • $200 million – $250 million: Estimated total value of the GTL complex.
  • 80 MMcfd: Natural gas feedstock to be converted into specialty products.
  • 8,000 b/d: Planned production rate of the GTL plant.
  • 50 Mw: Expected electricity generation from the plant.
  • 3: Number of companies that have previously licensed Syntroleum's proprietary gas conversion technology (Texaco, Atlantic Richfield, and Kerr-McGee Corp.).
  • 2,500 b/d: Planned production rate of the Texaco-Syntroleum-Brown & Root GTL barge-mounted plant to be located in Trinidad.
  • $75 million: Estimated cost of the Texaco-Syntroleum-Brown & Root GTL barge-mounted plant.

Sources:

  • "Syntroleum Corp. gains Enron Corp. as partner in first commercial gas-to-liquids project in North America" (no publication date mentioned).