GPC, a joint venture between Saudi Offset Limited Partnership and India’s Tamilnadu, says the paraffin will be supplied to its proposed linear alkylbenzene plant at Yanbu in Saudi Arabia.

Tamilnadu will use its supply for its facility in Chennai, India.

Shell and its joint venture partner on the GTL scheme, Qatar Petroleum, says it is in negotiations about supply deals for the remainder of the paraffin output.

The preliminary deal is the first time a third-party offtake agreement has been signed for Pearl GTL, which is expected to start production in early 2010.

The plant will manufacture 140,000 b/d of clean liquid GTL products, including 62,000 b/d of diesel, 46,000 b/d of naphtha and 27,000 b/d of base oil.