Qatar has set its eyes to become the biggest producer of gas to liquids (GTL), as it pushes ahead with mega projects, and the top LNG exporter in the world.
As it climbs to the top in the league of LNG exporters, by aiming to overtake Indonesia in 2010, the tiny Opec producer has also embarked on the Middle Easts first GTL venture and said more projects were planned given its mammoth gas reserves.
"Qatar has succeeded in beco-ming the target location for many gas-to-liquids projects. Such projects will also assist Qatar to monetise gas resources and become the GTL capital of the world," the state-controlled Qatar Petroleum (QP) said in a statement.
QP, which oversees Qatars energy sector, said it would soon launch its first GTL plant as a joint venture with Sasol Interna-tional of South Africa.
The plant will initially include two trains producing around 33,000 barrels per day, comprising nearly 24,000 barrels of GTL diesel, 8,000 barrels of GTL naphtha and 1,000 barrels of liquefied petroleum gas, it said.
"The project is at its most advanced phase with EPC contractor and finance being secured and EPC award will soon be announced. The project is seen as a strategic investment for Qatar as it will create many jobs, skilled and non-skilled, for Qataris," it said.
"It will also put Qatar in a unique position in the fast-developing GTL sector. Other projects are being considered, which will enhance the production of environmentally friendly GTL fuel mostly preferred to conventional diesel."
The statement listed other benefits of the GTL ventures, including the establishment of an important industrial infrastructure for the gas sector, creation of jobs, acquisition of technology, long-term investment, expansion in public revenues, and abundance of water generated from the process of reforming gas.
Explaining the conversion process, the statement said it included three basic technical phases, the first of which comprises reforming natural gas to turn it into a mixture of carbon monoxide and hydrogen. The second phase involves conversion of natural gas using the Fisher-Tropsch technique, while the third covers product upgrade.
"GTL projects offer an attractive alternative to monetise the abundant natural gas reserves in Qatar and other countries and it is a real option for energy companies, governments and suppliers of gas with interests in cost-effectively monetising gas reserves and to reducing the flaring of associated gas," the statement said.
"Conversion of natural gas into GTL products is a proven, technology-driven process that will deliver a clean and abundant suite of energy products to world markets."
It said Qatars first GTL plant would produce almost zero sulphur, high cetane and low aromatic diesel and naphtha which will be sold regionally and internationally. It noted that GTL fuel was cleaner than any conventional fuel which will help the environment.
"It can be used in conventional diesel engines to reduce emission and an overall better performance," it said. "Therefore, the demand for GTL diesel and other high-quality products will grow substantially, and Qatar will be well positioned as a leader in this sector."
Qatar has the third biggest reserves of natural gas in the world after Russia and Iran, estimated at more than 10 trillion cubic metres.
The government and its foreign partners have pumped at least $15 billion into LNG ventures, set up at the giant North Field, the worlds largest single gas reservoir.
Officials said last month more than $25 billion would also be invested in gas and other projects and planned expansions would nearly double the countrys LNG output to around 30 million tonnes in 2010 to turn it into the top LNG exporter in the world.
Gulf News 2003
