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Message from the Board Chairperson
The Nippon GTL Technology Research Association was established on October 25, 2006 by INPEX Corporation, JX Nippon Oil & Energy Corporation, Japan Petroleum Exploration Co., Ltd., COSMO OIL Co., Ltd., NIPPON STEEL ENGINEERING Co., Ltd. and CHIYODA Corporation with the approval of the Minister of Economy, Trade and Industry. Over a five years, the association is mobilizing funding and technology from the aforementioned six companies in the private sector and conducting a joint research with Japan Oil, Gas and Metals National Corporation (JOGMEC) with the goal of realizing the application of GTL on a global scale. Demonstration test project facilities has been completed in April, 2009 in the Higashiko Industrial Park, Niigata City, and demonstration test is being conducted. The purpose of this test will be to verify GTL technology within the test model and to establish techniques to up-scale to commercial capacity.

GTL is a technology that uses natural gas as the raw material and produces petroleum products such as naphtha, diesel oil and kerosene through chemical reactions and is also the general term for such products. GTL products are free of sulfur and aromatic content and represent an energy source in keeping with the environmental needs of the times. The introduction of GTL technology will open the way to a new source of liquid fuels based on natural gas available throughout the world and will undoubtedly contribute to the realization of energy security.

Before the association was established, in Japan, following basic testing in laboratories, the former Japan National Oil Corporation in collaboration with five companies from the private sector conducted pilot testing in the Yufutsu area of Tomakomai City, Hokkaido commencing in FY2001 and succeeded in producing 7 barrels of synthetic oil per day.

Looking at the global situation, petroleum companies in Europe and the United States are already engaged in projects aimed at the application of GTL technology. The purpose of the planned demonstration test is to realize the application of groundbreaking technology that allows use of natural gas as the raw material without removal carbon dioxide content, enabling wide-ranging application of natural gas containing various amount of carbon dioxide. This will mean the elimination of the need for carbon dioxide removal unit as well as oxygen generator, leading to reductions in equipment investment and costs. We firmly believe that use of high-performance newly developed catalysts for FT synthesis and hydrocracking processes will enable the development of a highly-competitive technology compared to existing approaches.

The Nippon GTL Technology Research Association is fully committed to realizing the practical application of this unique GTL technology that will contribute both to the stable supply of energy and the preservation of the global environment and we look forward to the continued guidance and support of our partners in this venture.
July, 2010
Ikutoshi Matsumura, Board Chairperson
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