TThhee SSyynnggaass PPrroojjeecctt Production of 30,000 bbl/d of premium diesel from GulfX Limited’s Syngas premium diesel project as well as 500 MW of power and 120,000 t.p.a. of native sulphur is targeted. South Australia currently imports all of the state’s diesel requirements from other Australian states or from outside Australia. Diesel vehicle consumption in South Australia is 2 billion litres p.a. and is growing, with a further 1 billion litres currently used or likely to be required by the mining and agriculture sectors. The Syngas project will produce 1.6 billion litres of premium diesel p.a. (10 million barrels p.a.), approximately half of South Australia’s requirements. Ninety five percent of the project’s revenue will come from premium diesel sales. Diesel imports to Australia in 2006 reached 5.4 billion litres (34 million barrels). Imports are expected to increase significantly over the next 5 years, as a result of declining Australian petroleum reserves/production (e.g. Bass Strait), aging refinery closures, and limitations to increased diesel production from the remaining Australian refineries. In terms of power in South Australia, 1500 MW (40%) of the state’s requirements are currently met by Victorian LaTrobe valley coal fed power stations. A further 750 MW is generated by coal fired plants built in 1960 and 1985. Increased demand for power is expected both in the domestic and industrial markets. BHPBilliton’s Olympic Dam Expansion, for example is likely to require an additional 400 MW. The Syngas project will generate 250 MW of power for supply/sale into the national power grid. Sulphur, trace element and particulate removal will lead to premium quality diesel production. Strong demand for native sulphur in Australia, for use in sulphuric acid production particularly by nickel laterite producers, will add to the Syngas project’s revenue stream. From a clean premium diesel perspective, the Syngas project will produce a premium diesel that combusts more efficiently, produces less carbon dioxide (than petroleum and conventionally produced diesel) and provides more torque, when used in newly designed turbo diesel engines. The Syngas project is located 100km from Adelaide in South Australia (refer Diagram 1), in close proximity to to road, rail and national electricity grid infrastructure and skilled labour. Diagram 1: Location of the Syngas Project. Source: PIRSA, SARIG 2007 Project feed material is lignite from large, extensively drilled and delineated deposits, containing approximately1. 4 billion tonnes of non JORC resource, over which mineral exploration licenses, are held by GulfX. Commercially proven gasification, gas clean up, and end product technologies will be used. Sasol/Chevron, Shell, Siemens, GE and Lurgi are several of the globally recognised technology licence providers in this area. Production at the 40 year life Syngas plant is targeted to commence in 2015, with subsequent ramp up. Over the past three months geological and gasification engineering expertise has been secured to support the progression of the project. A drilling program, to secure more than 750 mt of JORC resource is scheduled to commence in April 2008. Gasification testwork on samples collected during this program are to follow. GulfX currently also holds interests in prospects in the Gulf of Mexico. The long term vision for GulfX is to become a major global premium diesel producer - Fuelling a cleaner Future. Generating significant returns, in a crude oil supply constrained and carbon emission constrained future.
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