Following on the heels of ExxonMobil’s major LNG supply deal with Qatar earlier this month (see NGI, Oct. 20), a Royal Dutch/Shell Group subsidiary, Qatar Shell GTL Ltd (Shell), said last week that it signed a deal with Qatar Petroleum to build the worlds largest gas to liquids (GTL) plant in Ras Laffan, Qatar.

Under the agreement, Shell plans to invest around $5 billion to develop upstream gas and liquids facilities and an onshore GTL plant that will produce 140,000 b/d of GTL products (primarily naphtha and transport fuels, with a smaller quantity of normal paraffins and lubricant base oils) 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 between 2008 and 2009, producing around 70,000 b/d of GTL products. The second phase will be completed less than two years later. The project includes the development of a block within Qatar’s vast North Field gas reserves, producing 1.6 Bcf/d of gas.

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