TULSA, Okla. (AFX) - Synthetic fuel processor Syntroleum Corp. on Tuesday said it will jointly develop gas-to-liquids facility in Papua New Guinea with Kuwait Foreign Petroleum Exploration Co. K.S.C.
Syntroleum did not disclose financial details of the arrangement.
Once completed, the facility will produce 50,000 barrels per day of Syntroleum Ultra Clean S-2 Diesel and other high valued ultra clean products, the company said.
Syntroleum also said the government of Papua New Guinea has designated the facility as a lead project in its effort to create a domestic gas industry with a portion of its gas resources.
The facility will anchor the newly created Konebada Petroleum Park near the capital city of Port Moresby.
Syntroleum Chief Executive Jack Holmes said the next step is to put major contracts in place for the facility and move to financing.
Shares of Syntroleum leapt $1.01, or 36 percent, to $3.82 in afternoon trading on the Nasdaq. The stock has traded in a 52-week range of $2.45 to $11.85.
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