The government-run Japan National Oil Corp. said Friday it and five companies will start operating this month a gas-to-liquids pilot plant in Tomakomai, Hokkaido.

JNOC, Cosmo Oil Co., Nippon Steel Corp., Japan Petroleum Exploration Co., Chiyoda Corp. and Inpex Corp. hope the project will prove the feasibility of GTL technology jointly developed by the six-party consortium, JNOC said.

The total cost of the pilot project, including joint research begun in fiscal 2001 and the plant's construction, is expected to be around 4 billion yen through fiscal 2003. JNOC will shoulder 75 percent of the cost.