The Denver-based Rentech Inc. has signed a Memorandum of Understanding (MOU) with Global Process Systems Inc. (GPS) headquartered in Dubai, United Arab Emirates (UAE), to cooperate in providing a technology license and engineering services for the application of Rentech's gas-to-liquids (GTL) process technology on floating production systems (FPSO) for the conversion of off-shore, stranded natural gas into valuable liquid hydrocarbons on a worldwide basis.
The overall FPSO market is a fast growing opportunity to capture associated gas from offshore oil production that is now being flared or to monetize stranded offshore gas, according to a company press release.
Industry consulting firm International Maritime Associates (IMA) was quoted in the August 16, 2001, issue of the Oil & Gas Journal as saying, "It believes companies will spend $16-$21.9 billion on FPS orders over the next five years."
According to the terms of the MOU, both companies agree to cooperate on a plan to jointly market their combined capabilities to potential customers on a worldwide basis. These collective endeavors will provide licensing and engineering services for topside process work and build-out involving Rentech's GTL technology including design, procurement, construction, project technical development and estimating services as required for each specific project.
The companies will target a variety of prospective stranded natural gas offshore projects where Rentech's GTL process could be utilized. Estimated GTL plant sizes could range from approximately 2,500 to 10,000 barrels per day of GTL.
Global Process Systems, with operations in Dubai, Malaysia, the Russian Federation and Houston, Texas, specializes in providing turnkey packages in the areas for offshore and onshore process equipment and plants for the oil and gas industry. This includes engineering and fabrication of natural gas processing and treatment systems; design and supply of crude oil separation systems; and, FPSO based topside process equipment. GPS has completed contracts for national oil companies, major oil and gas producers and most international FPSO operators.
GPS, through its alliance with UAE-based specialist fabricator, Lamprell Energy Ltd., has access to one of the leading topside fabrication facilities in the world at Lamprell's new Jebel Ali facility, which has been built for the purpose of producing modular FPSO process units and GTL topsides.
Currently, the yard is handling a number of modules for FPSO's that are destined for West Africa. Lamprell Energy Ltd. has over twenty-five years of experience in the Arabian Gulf and has earned a reputation for being the leading drilling rig repair and refurbishment company in the region.
"There is growing interest among oil and gas producers in applying Gas-to-Liquids technology to process stranded off-shore gas that was previously flared, a practice which is now banned,” Clint Elgar, GPS president, commented. “Applying GTL in this manner provides an alternative option to injecting the gas. As an experienced process engineering firm focused in the oil and gas industry, we believe there is a substantial opportunity for GTL technology to be implemented in this manner.”
He added: “We have aligned ourselves with Rentech and its excellent GTL technology and staff to see if we can exploit what we feel could be one of the key areas of GTL commercialization, offshore stranded gas. We are already actively pursuing specific inquiries and intend to provide topside GTL build-out for FPSO's as part of our overall service package."
Regarding its relationship with GPS, Dennis L. Yakobson, Rentech chairman, president and CEO stated: "Rentech is very pleased to announce its relationship with GPS. They are considered a leader in their field of FPSO topside build-out and have both the technical expertise and international presence to assist Rentech in furthering its GTL commercialization efforts.”
“We concur with GPS that there is excellent potential for floating, offshore gas-to-liquids facilities. As gas flaring restrictions increase along with the need by oil and gas producers to maximize their total reserves holdings, both those that can be produced and those which are currently stranded, the potential demand for floating GTL systems is very exciting and is the 'catalyst' for bringing Rentech and GPS together," he added.
Rentech, Inc. is the developer and licensor of a patented and proprietary Fischer-Tropsch, gas-to-liquids process, for conversion of synthesis gas made from natural gas, industrial-off-gas, solid or liquid carbon bearing materials into high value fuels, products and chemicals. These products include ultra- clean, sulfur-free fuels, naphtha, waxes and fuel for fuel cells. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
