Shell
awards design contract for $5 billion GTL project to JGC
Posted: 9 March 2004
Qatar Shell GTL Ltd announced that a Front End Engineering and
Design (FEED) contract has been awarded by its affiliate Shell Global
Solutions International to JGC Inc. of Japan for the onshore design
of the $5 billion Gas to Liquids (GTL) project in Qatar.
The contract, which will require almost 500,000 design man hours,
will further refine the design of the onshore GTL plant in preparation
for the implementation phase. JGC will execute the majority of the
work at the MW Kellogg office in Greenford, North West London.
MW Kellogg is a joint venture company between JGC and Kellogg Brown
and Root (KBR).
At the Finance and Investment in Qatar Conference today in London,
Malcolm Brinded, Group Managing Director and CEO of Shell Gas &
Power and Shell Exploration and Production said “The award
of this contract marks another major milestone on this ground-breaking
GTL project. This challenging project will require us to work with
the very best contractors in the global engineering and construction
market, we are pleased to have selected JGC to further define the
project”.
In October 2003, Shell and Qatar Petroleum announced that they
had reached agreement on a Heads of Agreement (HOA) for the GTL
project. The project includes the development of a block within
Qatar’s vast offshore North Field gas field, producing 1.6
billion cubic feet-per-day of gas. In February 2004, Shell announced
that they had started appraisal drilling in this block.
Shell plans to invest around $5 billion to develop the offshore
gas and an onshore GTL plant that will produce 140,000 barrels per
day (bpd) of GTL products (primarily naphtha and transport fuels,
with a smaller quantity of normal paraffins and lubricant base oils)
as well as significant quantities of associated condensate and Liquefied
Petroleum Gas.
The project will be developed in two phases with the first phase
operational in 2009, producing around 70,000 bpd of GTL products.
The second phase will be completed less than two years later.
For more information see www.shell.com/qatar
Posted by Richard Price,
Editor Pipeline Magazine
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