TULSA, Okla. (AP) - China Petroleum & Chemical Corp., known as Sinopec, and synthetic fuel processor Syntroleum Corp. said Tuesday 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 $20 million per year over the next five years to support development of the technology.
China Petroleum shares fell 78 cents to $82.17, while Syntroleum shares rose 13 cents, or 3.8 percent, to $3.60, both in morning trading on the Nasdaq Stock Market.
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