As part of a newly agreed joint venture, Italian energy group Eni and Saudi petrochemicals giant SABIC will collaborate on developing a new technology to convert natural gas into synthesis gas that can be processed further into high value-added fuels and chemicals, such as methanol.

To test and display the process, the partnership plans to build an industrial demonstration plant at one of Eni’s production complexes. The technology selected for upgrade will be based on the Short Contact Time Catalytic Partial Oxidation (SCT-CPO) of natural gas initially developed by the Italian group.

The companies said the new technology will help to make cleanest and lower GHG emission fossil fuel in the most efficient way.

Eni said the joint work will utilize SABIC’s short contact time reactor R&D and its own extensive knowledge of integrating gas generation into processes to produce higher end derivatives.

Beyond the conversion and upgrade of synthesis gas and its integration into advanced chemical process, the jointly developed technology also is expected to lowering capital expenditure and operating costs while achieving higher energy efficiency, an improved CO2 footprint and broader feedstock flexibility.