Shell starts to fire up Pearl plant in Qatar (NG -> petroleum products)

[phantom power]

The oil major is bringing online the various parts of a huge US$19bn (Dh69.78bn) plant designed to convert the emirate's natural gas resources into fuel. It shipped its first cargo to Europe yesterday, and a second is planned for the coming weeks, according to Shell.

...

The economic justification is more obvious: Qatar has the world's third-biggest reserves of natural gas, but that cannot be piped to international markets. One solution is to turn it into liquefied natural gas (LNG) and ship it abroad. Qatar already holds the title of the world's top LNG exporter. But, by going further up the value stream to products such as lubricants, Qatar can reap higher returns. The plant is expected to enhance "Qatar's competitive position in the world markets", said Mohammed al Sada, the Qatari energy minister. Qatar Petroleum, the state-owned oil company, is Shell's partner in the project.

By the middle of next year, the plant is due to convert gas 1.6 billion cubic feet of gas a day into kerosene, petrochemicals feedstocks, paraffin for detergents and gasoil, a clean-burning fuel similar to diesel. The combined production lines are planned to produce 140,000 barrels per day (bpd) of liquids, vastly more than other plants.

http://www.thenational.ae/business/energy/shell-starts-to-fire-up-pearl-plant-in-qatar

[hunter]

1. Meet the new boss...

...same as the old boss.