ConocoPhillips to close demonstration plant

The Associated Press

ConocoPhillips will shut down its demonstration plant in Ponca City, Okla., eliminating up to 120 jobs, the Houston-based company said.

“It never is easy to make this kind of announcement,” said George Paczkowski, ConocoPhillips’ vice president of downstream technology in Ponca City, “but we’ve known this demonstration plant was temporary since we built it.”

The plant was built to test technology designed to convert natural gas into liquid fuels. Paczkowski called the experiment a strong success and said Ponca City likely will be home to research and development projects in the future.

The plant is to close in early July 2005, he said Oct. 29, and the move will eliminate about 80 full-time positions and up to 40 contract jobs.

Many of the full-time workers will be reassigned to other positions at the company, Paczkowski said.

Employment at the Ponca City plant has dropped from about 2,100 to about 1,600 since Conoco Inc. and Phillips Petroleum Co. merged in August 2002.$