The government of Qatar and ExxonMobil Qatar have entered into a $7 billion Heads of Agreement (HOA) agreement to create the world’s largest single, fully integrated Gas-to-Liquid (GTL) project.
The facility, to be built at the Ras Laffan Industrial City, will start production in 2011.
The agreement was signed by H.E. Abdullah bin Hamad Al-Attiyah, Second Deputy Premier and Minister of Energy and Industry for the State of Qatar, and Harry J. Longwell, Director and Executive Vice President, Exxon Mobil Corporation.
“We have enjoyed numerous prior successes in commercialising our substantial gas resources and look forward to developing this world-class GTL project as we aggressively pursue Qatar’s vision to be the world leader for GTL development,” said Al Attiyah.
ExxonMobil will design, construct and perform all petroleum operations at the GTL project. This includes the rights to develop and produce gas, associated liquids and other hydrocarbons in sufficient quantities to meet the 154,000 barrels per day capacity of the plant.
Approximately half of the plant’s production will be for sulphur-free diesel (less than 10-15 ppm); 20 percent will be in high-quality lube base stocks with the remainder in naphtha and other associated products.