Pertamina gave the approval after being presented with the results of a feasibility study that looked at the application of Rentech's GTL technology for Pertamina's owned and operated Matindok Block in Central Sulawesi.

Rentech said the next stages will involve preparation of a business plan, a draft Heads of Agreement between the parties, establishment of a business structure for the Pertamina Joint Venture Company as well as preparation of a project implementation plan.

These tasks are scheduled to be submitted for approval to Pertamina in the fourth quarter of this year, Rentech said.

"To this point the results of our joint study with Pertamina are very encouraging. At this time the project appears to have the elements necessary for a commercially viable GTL facility," said president and CEO of Rentech Inc, Dennis Yakobson.

"Extensive amounts of work remain to be completed and assessed but both Pertamina and Rentech feel that the joint feasibility study that we just completed justifies continuing with the development of the project.

"We especially like the possibility of the integration of Rentech's GTL technology with power production and other processes that make products from natural gas such as ammonia or methanol.

"By implementing such an integration, synergies exist between the different natural gas processing methods that can reduce project development cost while maximising gas utilisation, increasing cash flow and the potential for greater profits," Mr Yakobson said.