FIELD DEMONSTRATION OF A MEMBRANE PROCESS TO SEPARATE NITROGEN FROM NATURAL GAS

The original proposal described the construction and operation of a 1 MMscfd treatment system to be operated at a Butcher Energy gas field in Ohio. The gas produced at this field contained 17% nitrogen. During precommissioning of the project, a series of well tests showed that the amount of gas in the field was significantly smaller than expected and that the nitrogen content of the wells was very high (25 to 30%). After evaluating the revised cost of the project, Butcher Energy decided that the plant would not be economical and withdrew from the project. In early 2002, Membrane Technology and Research, Inc. (MTR) began to negotiate a marketing and sales partnership with ABB Lummus Global, a large multinational corporation. MTR and ABB Lummus have now completed negotiations and have signed a joint development, marketing and sales agreement with a focus on natural gas applications. Part of the agreement calls for the Randall Gas Technology division of ABB Lummus to provide cost share for the current project