Oryx GTL Plant Commissioning Delayed Until 4Q 2006
Damage caused by a contractor to a super-heater at the Oryx GTL plant in Ras Laffan has delayed the commissioning of the $950mn project until the fourth quarter of this year, MEES learns. The damage required the supply and installation of a replacement super-heater, and work is being carried out at full speed to enable commissioning of the plant to take place before the end of the year. The joint venture between Qatar Petroleum (QP – 51%) and Sasol (49%) was officially inaugurated in June this year (MEES, 12 June). Sasol, in its half-year report published on 12 September, said “the commissioning of the Oryx GTL plant has been delayed to the fourth quarter 2004 following damage during early commissioning to a supporting utility system.” In February this year Sasol said the project was 97% complete with utilities commissioned and would start producing GTL products in the second quarter with optimization work ongoing in the third quarter. The production profile showed that the project would reach 90% capacity nine months after start-up. Oryx will use 330mn cfd of lean gas from the North Field to produce 34,000 b/d of liquids, comprising 24,000 b/d of diesel, 9,000 b/d of naphtha and 1,000 b/d of LPG. Construction work began in 2003, with the engineering, procurement and construction carried out by France’s Technip (MEES, 3 February 2003).
The delay at Oryx GTL is unlikely to cause a problem for project lenders, given that the venture was carrying a sponsor completion guarantee and insurance typically covers such mishaps, said bankers. Furthermore, due to GTL’s relatively commercially unproven technology at this scale, the financing plan allowed for an 18-month commissioning period, which is three times longer than the six months typical for standard technology, said a banker.
