CompactGTL (CGTL) has entered into a partnership with the Japanese manufacturer, Sumitomo Precision Products (SPP). As per the agreement, SPP will construct all reactor modules required by CGTL for the deployment of its proprietary gas solution.

Trading company Sumisho Machinery Trade (SMT), which is wholly owned by Sumitomo, is also a partner under the agreement.

Manufacturing of commercial scale compact reactor modules is expected to commence early in 2011 at SPP’s Amagasaki plant, near Osaka. SPP will provide CGTL with both the Steam Methane Reformer (SMR) units for syngas production as well as the Fischer Tropsch (FT) reactors for the conversion of syngas into syncrude. Catalysts for the reactors will be manufactured by catalyst suppliers under separate agreements, and incorporated into the reactors in Japan.

The companies have worked closely together to develop the reactor designs, and the demonstration units manufactured by SPP have been tested at CGTL’s pilot plant at Wilton, North East England. Testing has demonstrated the viability of the process, the reactor manufacturing route and the system’s ability to handle feed gases containing up to 35% CO2 without plant modification.

CGTL said that the ability to process CO2 is particularly beneficial, as alternative technologies such as CNG and LNG require carbon dioxide to be removed before processing. In addition, the CGTL process utilizes the CO2 in the reforming reaction, assisting the production of syngas and ultimately syncrude.

According to the company, handling of associated gas from oil production is problematic and there is growing global demand to reduce and eliminate wasteful gas flaring. CGTL has completed a number of conceptual engineering studies for commercial plants to address this problem ranging from 200bbl/d to 5,000bbl/d for offshore and onshore applications.

Nicholas Gay, chief executive of CGTL, said: “We are delighted to be developing strategic alliances with best in class partners to ensure that our modular gas solution becomes a commercial reality in the next phase of our development.”

Makoto Nakajima, managing director at SMT, said: “We believe that the development with our reliable partners can create the most earth-friendly solution to wasteful gas flaring in oil and gas fields.”