Feb. 21, 2007 (China Knowledge) – China Petroleum & Chemical Corp., also known as Sinopec, and synthetic fuel processor Syntroleum Corp. announced Tuesday an agreement to jointly develop natural gas-to-liquids and coal-to-liquids technologies in China.

The joint effort will include construction of a 17,000 barrel per day natural gas-to-liquids plant and a 100 barrel per day coal-to-liquids pilot plant in China using Syntroleum's technologies, as well as the joint marketing of the technology of both companies in China.

Under a memorandum of understanding between the two companies, Syntroleum will provide Sinopec with access to its complete set of proprietary natural gas-to-liquids technologies for use in China on an exclusive basis.

After signing a formal agreement, the companies said Sinopec will pay Syntroleum US$20 million per year over the next five years to support development of the technology.