By Pratap JohnChief Business ReporterThe $18.5bn Pearl GTL, world’s largest gas-to-liquids plant in Ras Laffan is based on a proprietary Shell GTL technology that has been developed more than 35 years ago. The project was inaugurated officially by HH the Emir, Sheikh Hamad bin Khalifa al-Thani yesterday.The proprietary Shell Middle Distillate Synthesis (SMDS) process is at the heart of the two-train Pearl GTL plant. It is underpinned by more than 3,500 patents and “proven on a commercial scale” for more than 10 years of operational experience at Shell’s first GTL plant in Bintulu, Malaysia with a capacity of 14,700 bpd. Pearl GTL represents the “world’s first realisation” of GTL technology applied on a world-scale basis and holds several “world records” in the industry. Besides being the world’s largest gas-to-liquids plant, Pearl GTL has the world’s largest capacity to produce premium quality lubricant base oils.The Qatar–Shell facility in Ras Laffan will be the world’s largest producer of GTL based normal paraffin, and have the world’s largest hydro-cracking capacity in one location.The plant will have the world’s largest oxygen production in one location, world’s largest system for full recovery and re-use of industrial process water.It will boast of the world’s largest instrumentation and control system and the world’s largest steam generation capacity of any hydrocarbon processing plant in the petroleum industry.The project also holds the record of “fast track development,” in just nine years the project has gone from ground breaking to formal inauguration.
In 2006, Qatar Petroleum and Shell took a final investment decision (FID) to jointly develop Pearl GTL project. Speaking to reporters in Ras Laffan yesterday, HE the Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada said the overall commercial structure of Pearl is a development and production sharing agreement (DPSA).Shell CEO Peter Voser said the successful ramping up of Pearl’s phase one and phase two in mid-2012 would be a key factor in the company deciding on “further investments in GTL technology worldwide”.“We are looking at the possibility of developing a GTL project in the US,” Voser said.Shell Qatar president Andy Brown thanked al-Sada and the QP team for their “excellent cooperation and support” during the execution of the project.QP created “excellent infrastructure and services” in Ras Laffan Industrial City (RLC) to support Pearl GTL. The project built its own material offloading quay in RLC to import 2mn freight tonnes of equipment and material in order to reduce the safety exposure and congestion, which would otherwise encountered on the roads from Doha Port to Ras Laffan. For the thousands of shipments Qatar Customs offered excellent support and the project suffered no demurrage. Also the authorities supported the project by issuing well over 100,000 visas for the workers needed on the project.
‘Huge plant to meet lubricants demand’By Pratap JohnChief Business ReporterPearl GTL products will reach different markets worldwide with the Ras Laffan facility being able to meet the global demand for lubricants considerably, said Shell’s executive vice president Andy Brown.“Our products will go to different markets. When it comes to diesel, we believe Europe is the most likely destination because there is a huge demand for diesel in the continent,” Brown told Gulf Times in Ras Laffan yesterday. For Pearl GTL naphtha, the Far East will be the key market, he said. “There is a big demand for chemicals and plastics in the Far East; we believe it will be mostly going that way,” Brown said. For lubricants (base oils), the market will be “global”, he said.“Our huge plant for lubricants can take the global demand for lubricants,” Brown said. Already, one cargo each (of lubricants) has been sent to Europe and the US, he said. On product marketing, Brown said Shell will do it for the main products – gasoil and base oil. Other products from the project – kerosene and naphtha - will be tendered in the open market, he said. A Shell release said there are “different offtake arrangements for the different products” from Pearl GTL.“Qatar Petroleum will offtake ethane for domestic use. Upstream products (condensate, propane, butane and sulphur) will be marketed by Tasweeq in the same way it is done for all producing entities in Qatar. “For the various GTL products there will be different offtake models, involving to various degrees Shell Downstream, Qatar Petroleum and third parties,” the release said.On market outlook it said, “Core Pearl GTL products have good margin prospects and a strong long-term market outlook. They will cement Qatar’s position as the primary source of high quality liquid products. By 2020, the estimate is that the global demand for naphtha, jet kerosene, especially gasoil, will grow by some 30%, specifically in the Asia-Pacific region.