Sudapet and OJSC GTL signed an agreement on construction of an associated petroleum gas (APG) processing plant to produce gasoline and diesel fuel, an Interfax correspondent reported from the signing ceremony. The plant will have capacity to produce 100,000 tonnes of fuel a year, according to the document. One half of output will consist of LPG (propane/butane mix) and the other half will be motor fuels, a GTL spokesman said.

The plant's capacity might subsequently be increased to 300,000-400,000 tonnes a year. Construction of the plant will cost $70 million, according to GTL estimates. Financing will be provided by the shareholders in proportion to their stakes: 51% for state-owned Sudapet and 49% for GTL.

The sides plan to spend three months on design work and agreeing the fundamental financing aspects. Beginning in February 2016, GTL plans to begin manufacturing and delivering equipment for the future plant. The plant is scheduled for startup by summer, the spokesman said.

About 70%-80% of the equipment needed to produce motor fuel from APG will be manufactured in Russia and delivered to Sudan by air and sea. The remainder will be manufactured in Sudan.