Qatar Petroleum and Shell launch Pearl GTL project

Qatar Petroleum and Shell launch Pearl GTL project

The Pearl GTL project includes the development of offshore natural gas resources in the North Field, transportation and processing of gas for extracting natural gas liquids and ethane, and the conversion of some gas into clean liquid hydrocarbon products.

QP and Shell said once completed the Pearl GTL facility would be the largest integrated gas-to-liquids complex in the world.

Upstream, some 1.6bn cubic feet per day of wellhead gas will be produced from the North Field, transported and processed to produce approximately 120,000barrels of oil equivalent per day of condensate, liquefied petroleum gas and ethane.

The North Field, which is the world’s largest single non-associated gas reservoir in the world, has recoverable resources in excess of 900trillion cubic feet. Over its lifetime the integrated project will produce upstream resources of approximately 3bn barrels of oil equivalent.

Downstream, the dry gas will be used as feedstock for a new onshore-integrated GTL complex, which will manufacture an additional 140,000barrels per day of liquid hydrocarbon products.

The Pearl GTL complex will consist of two 70,000 b/d GTL trains and associated facilities. The plant will produce a range of clean liquid products and fuels, comprising naphtha, GTL fuel, normal paraffins, kerosene and lubricant base oils.

A joint release issued by QP and Shell said GTL fuel is the largest component of the product slate and can be used in existing light and heavy-duty diesel engines

”With lower emissions at point of use, it can play a major role in reducing local air pollution in cities and provide a strategic diversification of liquid transport fuel for importing countries. GTL blended fuels can also enhance engine performance as demonstrated by the historic Audi R10 TDI win at this year’s Le Mans 24-hour race,” it said.

The fully integrated Pearl GTL project is being developed under a Development and Production Sharing Agreement (PDSA) with the Government of Qatar, covering offshore and onshore costs, with Shell providing 100% of project funding.

The award of various engineering, procurement, construction and management contracts for execution of the project has now begun.

Production from the first Pearl GTL train is anticipated to begin around the end of the decade, with the start up of the second train following within a year.

Commenting on the launch of the Pearl GTL project, the Second Deputy Premier and Minister of Energy and Industry, HE Abdullah bin Hamad al-Attiyah said GTL opened a new global market for Qatari natural gas and allowed Qatar to contribute constructively to improving the local environment by supplying a cleaner alternative transport fuel.

”Shell has extensive expertise in all aspects of the GTL value chain and I am pleased to have them as partners on our journey to become the GTL capital of the world.

”HH the Emir has set a wise strategy for the optimal utilisation of Qatar’s natural resources for the benefit of Qataris, now and in the future,” al-Attiyah added.

Jeroen van der Veer, Royal Dutch Shell chief executive said, ”Today’s announcement is another clear demonstration of our long-term commitment to partnering with Qatar to deliver natural gas and GTL products to markets around the world.

It is also evidence of our commitment to leverage leading Shell technology in order to increase the world’s supply of cleaner and more diverse liquid hydrocarbon products”.

Pearl GTL, der Veer said was just one example of Shell’s strong portfolio of growth opportunities that ”offers scale, long producing life, exposure to commodity price upside and attractive returns for shareholders.”

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