Design contract awarded for $5 billion GTL project

Shell yesterday awarded a Front End Engineering and Design contract to Japan’s JGC Inc for the onshore design of a $5 billion Gas to Liquids (GTL) project in Qatar.

Shell Global Solutions International, an affiliate of Qatar Shell GTL Ltd, yesterday awarded a Front End Engineering and Design (FEED) contract to Japan’s JGC Inc for the onshore design of a $5 billion Gas to Liquids (GTL) project in Qatar.

According to Shell, the contract will refine the design of the onshore GTL plant prior to construction. JGC will execute the majority of the work at the MW Kellogg office in Greenford, London. MW Kellogg is a joint venture company between JGC and Kellogg Brown and Root (KBR).

Malcolm Brinded, Group Managing Director and CEO of Shell Gas & Power and 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 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 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.

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