Tuesday, Nov 22, 2011
DUBAI (Zawya Dow Jones)--Gas-rich Qatar Tuesday officially inaugurated the multi-billion-dollar Pearl gas-to-liquids, or GTL, plant that will convert natural gas into high quality transport fuels and lubricants, Royal Dutch Shell PLC (RDSA.LN), which developed the project jointly with state-run Qatar Petroleum, or QP, said.
The project, which was inaugurated officially by Qatar's emir, Sheik Hamad bin Khalifa Al Thani, will use chemical processes to convert cheap and abundant natural gas from the Gulf Arab state's North Field into high-value transport fuels such as diesel, lubricants and feedstocks, Shell said in an emailed statement.
Pearl GTL is the biggest GTL plant in the world and is Shell's largest single project to date, with an estimated price tag of between $18 billion and $19 billion.
Pearl consists of two trains, the first of which started up in the first quarter this year and saw the first commercial export shipment of gasoil in June. Train two started up this month, with the gas processing plant on line delivering on-spec gas, condensate, liquefied petroleum gas, or LPG, and sulphur, according to the statement.
Once fully operational, Pearl GTL will have capacity to produce 140,000 barrels a day of high quality GTL products such as gasoil, naphtha, kerosene, normal-paraffin and lubricants base oils, and produce 120,000 barrels a day of natural gas liquids, or NGLs, as well ethane, Shell said.
Qatar, holder of the world's third-largest natural gas reserves after Russia and Iran, is the world's biggest liquefied natural gas exporter by far with capacity of about 77 million tons a year.
-By Oliver Klaus, Dow Jones Newswires; +9714 446-1693; Oliver.Klaus@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
22-11-11 1230GMT
