HOUSTON, Oct. 23, 2013 /PRNewswire/ -- Synthesis Energy Systems, Inc. (NASDAQ: SYMX) ("SES") announced today that its subsidiary company, SES New Energy Technologies ( Shanghai) Co., Ltd., has entered into a Memorandum of Understanding ("MOU") with Hulunbeier Tianfu Energy Co., Ltd. ("Tianfu"), for the supply of SES' gasification technology, equipment and services to its 1 billion normal-cubic-meters per-year city gas project to be built in Hulunbeier, Inner Mongolia, China. (Logo: http://photos.prnewswire.com/prnh/20130710/NY45085LOGO) The project is to be located in the Xie'ertala Project Area of the Hulunbeier Economic and Technical Development Zone. Tianfu has completed the required Feasibility Study Report and Environmental Impact Assessment based on using SES' gasification technology. The project has also received approvals to proceed from both the Hulunbeier City Development and Reform Commission and the Hulunbeier City Environmental Protection Bureau. The total project scale is a planned 1 billion normal-cubic-meters per year at an estimated cost of 3.45 billion RMB and is to be built in phases. The first phase is planned to be 330 million normal-cubic-meters and completion of phase one is estimated to occur approximately 18 months after construction starts. Tianfu intends to use SES' gasification technology for the conversion of Inner Mongolian lignite resources to syngas. According to the terms of the MOU, both sides have agreed to work exclusively over the next 12 months for the purpose of completing the technology licensing, equipment supply and technical service agreements. The project leader of Tianfu, Mr. Xu Zhenzhong, said, "SES' gasification technology is one of the most advanced coal chemical technologies of the world and is especially environmentally friendly. Once completed, the project is expected to supply gas to Hulunbeier residents as well as provide gas for mining industry vehicles in the eastern region of Inner Mongolia." Mr. Xu added, "The project will promote the development and clean utilization of lignite, resolve the tight natural gas supply in Hulunbeier, and extend the industrial chain and added value from lignite, while also maximizing the benefit and the value from the lignite resources of Hulunbeier."