DOHA: Pearl GTL will use Shell's proprietary Gas-to-Liquids (GTL) technology to convert some 1.6 billion cubic feet of gas per day (bcf/d) into high quality, clean-burning oil products such as gasoil, high specification lubricants base oils, and chemicals feedstock.
These products are usually produced by oil refineries. Shell will use its leading brand, technology, global supply chain and marketing capabilities to maximise the value of these products in global markets, the company said in a statement yesterday.
Pearl GTL is designed to produce 120,000 barrels per day (b/d) of natural gas liquids (NGLs) and ethane, and 140,000 b/d of GTL products. Pearl will be the world's largest GTL plant, building on over 30 years of Shell experience with these technologies.
Shell is funding 100 percent of the development costs for Pearl GTL, under a profit sharing agreement with the State of Qatar. Shell has now entered into the testing phase at Pearl GTL, having inaugurated the massive plant's control room, which is the nerve centre of one of the largest and most sophisticated process control systems in the oil and gas industry.
While testing begins on many thousands of pieces of equipment that have already been installed at the plant, construction on the rest of the plant continues. Some 2 million tonnes of equipment and material have been imported to the site and there are some 48,000 workers on the project. At the peak of construction, Pearl GTL installed enough steel and pipe to make 2.5 Eiffel Towers every month. Qatargas 4 is designed to convert some 1.4 bcf/d of natural gas into liquefied natural gas (LNG) and NGLs. Qatargas 4 will add to Shell's current worldwide LNG capacity of 18.5 million tonnes per year (mtpa), and sustain Shell's industry leadership in LNG.
Shell has a 30 percent stake in Qatargas 4, with partner Qatar Petroleum (QP), under a tax-and-royalty structure. Clean-burning LNG will be sold to customers in China, Dubai and the United States, with further new markets currently being developed.
Construction is progressing well at Pearl, with both schedule and budget in line with Shell's expectations. Major construction at both Pearl GTL and Qatargas 4 is scheduled to be completed by the end of 2010, with production ramp-up from late 2010 and into 2011. Pearl GTL upstream production is expected to reach 320,000 boe/d. Qatargas 4 is expected to reach 280,000 boe/d.
© The Peninsula 2009
