Sumitomo, Kawasaki Join CompactGTL to Unlock Stranded Gas Fields
Sumitomo Corp. (8053) and Kawasaki Heavy Industries Ltd. (7012) teamed up with CompactGTL Plc, a U.K.-based developer of gas-to-liquid technologies, in a plan to tap natural gas stranded in remote fields.
The three partners and Sumitomo Precision Products Co. will build the first “modular commercial plant,” Sumitomo said in a statement today. Sumitomo and Kawasaki bought minority stakes in CompactGTL, the Abingdon, U.K.-based company said by e-mail.
CompactGTL has been working on technology to allow oil producers to develop remote fields and cut flaring of gas pumped with the crude. Petroleo Brasileiro SA (PETR4) was assessing CompactGTL and Velocys Inc. technologies before deciding which to deploy offshore, Brazil’s state-run oil company said in February.
The partners are “seeking to win orders and expand sales by enabling oilfield development in regions such as Russia, Africa, the Middle East, Asia and South America,” Sumitomo said. Compact GTL is working with a unit of OAO Gazprom on a potential project, the U.K. company said.
Gas-to-liquid plants use natural gas instead of oil to produce synthetic crude or fuels containing almost no sulfur.
To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
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