Sheikh Tamim lays foundation stone for Qatar’s first GTL Plant
Posted: 8 December 2003
His Highness Sheikh Tamim Bin Hamad Al Thani, the Heir Apparent,
today, laid the Foundation Stone for the Middle East’s first
gas-to-liquids plant.
The ceremony, held at the Project’s site in Ras Laffan Industrial
City, was attended by dignitaries, visitors and guests from Qatar
and abroad.
Receiving the full support of His highness The Emir, Sheikh Hamad
Bin Khalifa Al Thani, the $900 million ORYX GTL project is a joint
venture between Qatar Petroleum (51 per cent) and Sasol of South
Africa (49 per cent).
The Ras Laffan based-complex will receive its feedstock from Qatar’s
North Gas field, the world’s largest single non-associated
gas field with proven reserves exceeding 900 trillion cubic feet.
When operational in December 2005, the project will be the biggest
and most technically advanced gas-to-liquids plant in the world.
The project will use approximately 330 million cubic feet per day
of lean methane rich gas from Qatar’s North Gas Field as feedstock
to produce 34,000 barrels per day of liquids (24,000 b/d of diesel,
9,000 b/d of naphtha and 1,000 b/d of liquefied petroleum gas (LPG).
"This is another outstanding achievement realized under the
wise leadership and guidance of His Highness, the Emir Sheikh Hamad
Bin Khalifa Al-Thani who set the strategy for the optimum utilization
of Qatar’s national reserves," His Excellency Abdullah
Bin Hamad Al-Attiyah, Qatar’s Second Deputy Premier, Minister
of Energy and Industry, and Chairman ORYX-GTL said.
"We have worked hard in partnership with Sasol to lay the
commercial foundation of a new industry. The project will spearhead
Qatar’s aspirations to be the launching pad for the next generation
of GTL facilities and realize Qatar’s objective to become
the GTL capital of the world," His Excellency added.
"ORYX GTL will be the world’s first truly commercial
GTL venture outside South Africa. In laying the foundation stone
for the ORYX GTL plant at Ras Laffan in the State of Qatar, we are
not just laying the foundation stone for a single plant, but for
a whole new global industry – the GTL industry," said
Sasol Chief Executive Mr. Pieter Cox.
Mr. Cox expressed his confidence that this venture will also set
the performance and safety standards that will become a global benchmark
as the GTL industry grows.
The facilities’ Front-End Engineering and Design (FEED) package
was prepared by Foster Wheeler of the United Kingdom.
The commercial close for the project was finalized in December
2002. Lead arrangers on the deal include Abbey National Treasury
Services, Arab Banking Corporation, Apicorp (joint regional bookrunner);
Bank of Tokyo-Mitsubishi (BOTM), BNP Paribas (documentation and
facility agent); Credit Lyonnais, Credit Agricole Indosuez (international
bookrunner); Gulf International Bank (joint regional bookrunner);
HSBC Investment Bank (security trustee); Hypo Vereinsbank; KBC Ireland
(Pre-financial close technical); Mizuho Financial Group (Pre-financial
close insurance); Qatar National Bank, RBS and Sumitomo-Mitsui Banking
Corporation.
The Engineering, Procurement and Construction contract (EPC) was
awarded to Technip-Coflexip of Italy on January 30, 2003.The EPC
contract includes responsibility for the start-up and initial operation
of the plant up to the performance test phase. The construction
phase is expected to be completed by end of 2005.
The GTL technology was first developed in the 1920s by Franz Fischer
and Hans Tropsch. The process involves the conversion of natural
gas into synthetic crude oil and other hydrocarbon products.
The Sasol Slurry Phase Distillate (SPD) process will be used to
convert the natural gas into premium, environmentally friendly fuels.
The Sasol SPD technology is based on the Sasol Slurry Phase Fischer-Tropsh
process and catalyst, Haldor Topsøe's Autothermal Reforming
and ChevronTexaco’s Isocracking. GTL is widely tipped by oil
majors as the way forward for countries looking to reduce emissions
and diversify into non-gas energy markets.
GTL products can be taken to market in conventional oil tankers
at reduced cost thus making gas transportation not only viable but
also uses existing oil storage infrastructure. Similarly, GTL is
likely to make it viable for developing nations to put an end to
gas flaring - in effect waste-to-energy.
The deal is important for Qatar in terms of monetizing its gas
reserves whilst diversifying its product range. Qatar's strategy
in the gas sector is focused on the optimal utilization of the enormous
gas reserves through setting projects to export liquefied natural
gas (LNG), pipeline gas and gas-to-liquids (GTL), while at the same
time expanding the petrochemical and fertilizer base projects in
the country.
For more information see www.qp.com.qa.
Posted by Richard Price,
Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
