The barge solution builds on the strengths and safety advantages of Syntroleum's air-blown gas-to-liquids conversion process, which has taken more than $100 million and 20 years to develop. The company believes that the use of air instead of pure oxygen in the process is a much less capital-intensive approach that reduces the size of the plant and facilitates the barge-mounted solution.

The mobile plant enables an exploration and production company to produce and thus monetize stranded gas fields. These reserves are ‘stranded’ because they are too far from markets to be economic using pipelines and other transportation methods. The GTL Barge will focus on offshore gas reserves in shallow water or onshore gas reserves that are near the coastline.

Assuming a benchmark West Texas Intermediate crude price of $20/Bbl, the GTL Barge is expected to produce annual cash flow of $70 to $100 million and will target a pre-tax, unlevered internal rate of return of between 20% and 30%. Driving the development and commercialization of the GTL Barge is Jack Holmes, President and Chief Operating Officer of Syntroleum.

"Syntroleum's GTL Barge could revolutionize the way oil and gas companies deal with gas in their international portfolios,” says Holmes. “It allows them to book 1 to 3 TCF (representing 100-300 million barrels of liquid products) with minimal geologic risk. Also, it enables producers to do this at projected full cycle finding, development and production costs comparable to industry average levels. Another benefit is that a GTL Barge would produce these reserves over a 20 year life, reducing the uncertainty of future production levels."

With specific screening criteria, such as a field's proximity to shore and its geographic location, Syntroleum has identified more than 40 uncontracted gas fields as initial targets for development, which it claims represents an 8 billion Bbl opportunity.

"This barge mounted plant provides an excellent opportunity for E&P companies to enhance net asset value and produce stable, long-lived cash flow at very attractive rates of return," stated Holmes.