Sheikh Tamim Bin Hamad Al-Thani, Heir Apparent of the State of Qatar, Thursday laid the foundation stone for the Pearl Gas to Liquids (GTL) project, a world-scale integrated project that will make Qatar the GTL capital of the world. Pearl GTL is not only the world’s largest integrated GTL project, but also the largest energy project ever launched within the borders of Qatar.
The ceremony at Ras Laffan Industrial City was attended by dignitaries including The Prince of Wales, the Chief Executive of Royal Dutch Shell plc, Jeroen van der Veer, and visitors from Qatar and abroad.
The Pearl GTL project is being developed under a Development and Production Sharing Agreement with the government of the State of Qatar. The agreement covers offshore and onshore project development and operations, with Shell providing 100 per cent of project funding.
Upstream some 1.6 billion cubic feet of wellhead gas will be produced, transported and processed per day to produce 120,000 barrels of oil equivalent per day of condensate, liquefied petroleum gas and ethane. Downstream dry gas will be used as feedstock to produce 140,000 barrels per day of clean, high quality GTL fuels and products. The Pearl GTL project is expected to produce some 3 billion barrels of oil equivalent wellhead gas over the period of the Development and Production Sharing Agreement.
A total of $10 billion of contracts have already been awarded for the project, including all major engineering, procurement and construction contracts. Construction began in the third quarter of 2006.
Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier and Minister of Energy and Industry of Qatar said: “GTL represents a strategic diversification for Qatar in the development of our natural gas resources. In line with the wise vision of Sheikh Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar, we intend to make Qatar the GTL capital of the world. Pearl GTL is a major part of that endeavour and I am pleased that with our partners Shell we have reached this milestone.”
Jeroen van der Veer said: “Pearl GTL will help create upstream and downstream value for Qatar by converting natural gas into clean, valuable liquid hydrocarbon products. Economically robust and environmentally constructive, it is an exciting project for Shell. It also reinforces Shell’s leadership in the GTL industry and the development of GTL technology. Today’s ceremony is a landmark event for the project and for Shell.”
© 2007 Mena Report (www.menareport.com)
