QP, Chevron Sasol sign mega GTL deal

01 April 2004
Qatar Petroleum (QP)and Chevron Sasol, a joint venture between the US' ChevronTexaco Corporation and South Africa's Sasol, signed on 23 March two agreements to expand gas-to-liquids (GTL) capacity at Ras Laffan. Worth a total of $6,000 million, the deals provide for up to 200,000 barrels a day (b/d) of new GTL capacity to be built. QP and Sasol are partners in the Oryx GTLproject, which is under construction and is due to come on stream in late 2005 with capacity of 34,000 b/d.

A memorandum of understanding was signed to conduct a feasibility study into boosting output at the existing Oryx GTLplant at Ras Laffan to up to 100,000 b/d. The project provides for the construction of three trains with total capacity of 65,000 b/d, scheduled for completion in 2009.

QP and Chevron Sasol also agreed to study the establishment of a new integrated GTL project with capacity of 130,000 b/d. A feasibility study will be conducted into a six-train plant utilising North field gas and based on Sasol's slurry phase distillate technology. Project start-up is set for 2010. A letter of intent was also signed by the two companies to jointly explore GTL base oils opportunities.

Several other GTL projects are moving forward. In early March, Japan's JGC Corporationwas awarded the front-end engineering and design (FEED) contract on the $5,000 million Qatar Shell GTLproject (MEED 12:3:04). In December, the US' ConocoPhillips signed a statement of intent with QP for an integrated GTL project, to be implemented in phases (MEED 19:12:03).

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