NIGERIA - GTL Venture.

Chevron in April 2005 awarded the EPC contract for the Escravos gas-to-liquids project (EGTL) to a consortium known as Team JKS, comprising Japanese firm JGC Corporation, Halliburton's Kellogg Brown & Root of the US and Snamprogetti (ENI group) of Italy. This contract is valued at around $1.7 bn. Sasol Chevron, a 50-50 joint venture between Sasol and Chevron, is providing the technical support for the project and Chevron is the licensor.

Located about 100 km south-west of Lagos, the GTL plant will have a capacity of 34,000 b/d of ultra-clearn diesel and naphtha, and a small volume of LPG. Phase 3 of the Escravos gas project will supply the plant with 300 MCF/day of natural gas.

The world's first offshore GTL venture is to be built on OML 113 block off Nigeria at the Aje natural gas field, lying in 3,100 feet of water. This will be a JV led by Syntroleum Corp. of the US and the private Nigerian company Yinka Folawiyo and to include other US companies (see Gas Market Trends of this week). The plant will produce ultra-clean diesel, naphtha and LPG.