Qatar To Boost Naphtha Output From GTL Plant And Condensate Splitter

Qatar To Boost Naphtha Output From GTL Plant And Condensate Splitter

State-owned Qatar International Petroleum Marketing Company (Tasweeq) has sold the first shipment of gas-to-liquids (GTL) naphtha, produced at Shell’s Pearl GTL plant. The commercial start up of naphtha was on schedule, UK-based refined products consultant John Young tells MEES. Tasweeq expects to market 24,400 b/d of Pearl’s naphtha when it ramps up output to full production capacity next year, according to Saad al-Kuwari, Tasweeq’s chief executive, Qatari newspaper al-Arab reported on 22 August. The $18-19bn plant’s designed production capacity is 140,000 b/d of GTL products. It sold its first cargo of GTL gasoil two months ago (MEES, 13 June).

Refineries and petrochemical plants are interested in GTL naphtha for blending. Ethylene producers need feedstock with high paraffinic content – allowing more ethylene per unit of feedstock. GTL naphtha is 95-99% paraffinic content in comparison to refined naphtha’s 65-90%. The amount of products refineries need to add to naphtha to get high octane motor gasoline would be reduced by blending with GTL naphtha.

Shell hopes to get a premium on some of its GTL products – in 2008 GTL diesel from its Malaysia plant sold at a $40/B premium to Brent crude. But Shell did not expect to get a premium on its initial sales from Pearl, which the market is waiting to test (MEES, 4 October 2010).

The timing of Pearl’s naphtha ramp up is opportune. Mr Young tells MEES: “There is a very strong demand for naphtha in South Korea, Taiwan and Japan. Brazil will also be interested in this quality naphtha for gasoline blending. Yet Gulf refineries are cutting back naphtha output to focus on gasoline.”

Qatar is also focusing on naphtha from its planned second 146,000 b/d condensate splitter at Ras Laffan, which will have naphtha and kerosene hydrotreaters, and which it aims to bring on stream in 2016 – behind the original 2015 target.

Massimo Troiani, project manager at Italy’s APS Engineering Company, which did the plant’s pre-front end engineering design (pre-FEED), tells MEES that APS was originally asked to look at gasoline for Asia, but finally recommended focusing on naphtha production. On 18 August the Qatargas-operated Laffan Refinery Company Limited announced that it has awarded a lump sum FEED contract for the plant to French engineering firm Technip. The FEED is scheduled to be completed by the first quarter of 2012. The engineering, procurement and construction (EPC) contract is expected to be awarded by the third quarter of 2012.

Qatargas CEO and Vice-Chairman of Laffan Refinery Company, Khalid bin Khalifa Al Thani, said the second plant will allow Qatar to become a net exporter of diesel and other refined products, instead of an importer.

MEESlearns that the company plans to expand and upgrade its existing condensate splitter, which started production in 2009. By 2014 it will have debottlenecked and installed a gas oil hydrotreater to produce low sulfur diesel – less than 10ppm. Europe’s demand for low sulfur diesel of this quality will increase during 2014-16 as its tightened product specifications kick in. The splitter’s current production capacity is 61,000 b/d of naphtha, 52,000 b/d of kerojet, 24,000 b/d of gasoil and 9,000 b/d of LPG.

Copyright MEES 2011.