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Sinopec, Syntroleum announce GTL deal

China Petroleum & Chemical Corp. (Sinopec Corp.), and Tulsa, Oklahoma-based Syntroleum Corp. said they have reached an agreement to jointly develop natural gas-to-liquids and coal-to-liquids technologies in China. The joint effort will include construction of a 17,000 barrel per day natural gas-to-liquids plant and a 100 barrel per day coal-to-liquids pilot plant in China using Syntroleum’s technologies, and jointly marketing the technology of both companies in China. Under a memorandum of understanding between the two companies, Syntroleum will provide Sinopec with access to its complete set of proprietary natural gas-to-liquids technologies for use in China on an exclusive basis. After signing a formal agreement, the companies said Sinopec will pay Syntroleum US$20 million per year over the next five years to support development of the technology. (February 20, 2007)