INVESTORS STILL SKEPTICAL OF GTL PROJECT FINANCING

Gas - to - Liquids News, October, 2002

London -- Investment bankers are likely to continue to make the going rough GTL developers seeking financing for development projects. Liquefied natural gas (LNG), which often competes for the same stranded gas resources, offers tough competition for GTL, a process that, although technically feasible, remains virtually untested commercially, according to Sumitomo Mitsui Banking Corp.

Although GTL has its roots in the 1920s, bankers see it as a cutting edge monetization strategy, according to Nicholas Pitts- Tucker and Robert Clews with Sumitomo Mitsui's Project Finance division. "When we go to the credit committee with a GTL financing project in mind, they ask 'What on Earth are you doing lending to a new technology for?'" Clews told attendees of SMi's Gas-to-Liquids...

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