ROYAL Dutch Shell yesterday said it had sold the first cargo of gasoil produced from the world’s biggest plant that converts natural gas into liquid fuels. Gasoil is a byproduct of petrol.
The $19b n Pearl gas-to-liquids plant, built in the Gulf emirate of Qatar, will reach full capacity by the middle of next year , when it is expected to convert 1,6-billion cubic feet of natural gas a day into gasoil, base oils, paraffin and naphtha, Shell said yesterday .
Qatar, holder of the world’s third-largest gas reserves, hosts the 34000-barrel-a-day Oryx gas- to-liquid plant, a venture between state-run Qatar Petroleum and Sasol , and the world’s second- largest gas-to-liquids plant.
Pearl would generate about $6bn a year in profit for Shell assuming oil is at $70 a barrel, Andrew Brown, the company’s executive vice-president for the country, said last year.
Pearl and a Qatari gas liquefaction plant that started earlier this year may account for 10% of the company’s output when both are fully operational.
"(Yesterday’s) milestone provides further evidence that innovative technology and strong partnerships can help meet the world’s growing need for energy," Shell CEO Peter Voser said .
Shell plans to boost output 11% between 2009 and next year on new projects in the Middle East, Brazil and Australia.
Gas-to-liquids plants such as Pearl produce fuels that would normally be made in an oil refinery and benefit when natural gas is cheaper than crude. Oil is close to four times more expensive than gas on an energy equivalent basis and was a record five times more expensive in April, based on New York futures prices.
Pearl will be able to produce 140000 barrels a day of liquid fuels such as gasoil usually produced in a refinery, and 120000 barrels a day of condensate and liquefied petroleum gas, byproducts of natural-gas production.
Gasoil produced at Pearl has less sulphur than the fuel produced in a refinery and most will be mixed with conventional diesel as "a high-quality blend component", Shell said . Bloomberg
