CompactGTL, a specialist gas-to-liquids (GTL) company currently based in Oxfordshire, has announced plans to relocate to Tees Valley.

Speaking to the Evening Gazette, company chief executive Nicholas Gay explained that the group is keen to capitalise on the north-east's exceptional skills base to establish a new global training and development hub.

He added that the company's service, converting gas produced during oil exploration into synthetic crude, is becoming increasingly attractive to global upstream firms.

Traditionally, gas is flared off during crude production, a practice which releases large volumes of harmful gases into the atmosphere.

"Flaring off the gas causes global warming and is a waste of a natural resource. The prospects for this are enormous," he explained.

He pointed to potential strategic partnerships in Africa, where countries such as Ghana and Uganda are realising their natural resource potential through offshore exploration.

The company has also this month signed a new agreement with Japanese firm Sumitomo Precision to develop commercially viable conversion modules.

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