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6 June 2006
Issued by: Qatar Petroleum
A key step in Qatar's bid to become the GTL capital of the world
Doha, Qatar June 6, 2006 -- His Highness, Sheikh Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar today, officially inaugurated the US$950 million Oryx
GTL plant at Ras Laffan Industrial City. The ceremony was attended by dignitaries and guests from Qatar and abroad. Oryx GTL is a joint venture between state-owned Qatar Petroleum (51%) and South African-based petrochemical
company Sasol Ltd (49%). The facility is the pacesetter of the petroleum industry's focus to create a global gas-to-liquids (GTL) industry that is geared
to unlock the world's vast natural gas resources for conversion into ultra-low emission diesel and other environmentally benign energy products.
Construction of Oryx GTL commenced in December 2003 at Ras Laffan Industrial City, north of the capital Doha.
Oryx GTL will be using around 330 million cubic feet per day of “lean” gas from Qatar's North Gas Field in the Gulf as feedstock to produce a planned 34 000 barrels per day (b/d) of liquids. This will comprise 24 000 b/d of diesel,
9000 b/d of naphtha and 1000 b/d of liquefied petroleum gas (LPG).
Oryx GTL will be the first of a kind for the conversion of natural gas to
liquid fuel. It uses the proprietary, low temperature Sasol Slurry Phase
Distillate (Sasol SPD) process that is based on Fischer-Tropsch technology.
Qatar's North Field is regarded as the largest single non-associated gas
reservoir in the world with total proven reserves of 900 trillion standard cubic
feet (tscf) (25.5 trillion cubic metres).
“Oryx GTL is the foundation of Qatar's desire to be pre-eminent in the
establishment of a global GTL industry. This is another outstanding achievement
realised under the wise leadership of His Highness, the Emir Sheikh Hamad Bin
Khalifa Al-Thani who set the strategy for the optimum utilization of Qatar's
national reserves. The project is important for Qatar in terms of monetising its
gas reserves whilst diversifying its product range,” said His Excellency,
Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier, Minister of Energy and
Industry of Qatar, and chairman of Qatar Petroleum.
“It is destined to become iconic in years to come as our plans to turn Qatar
into the GTL capital of the world unfolds. Today's celebration is the
culmination of the joint efforts of Qatar Petroleum and our technology partner
Sasol to start delivering environmentally advanced fuels to help meet burgeoning
international energy needs.” His Excellency Al-Attiyah added.
Sasol has unparalleled experience in the production and marketing of
synthetic fuels. Its advanced Fischer-Tropsch technology enables the conversion
of natural gas into easily transportable and marketable liquid fuels that go a
long way in answering public concerns about environmental and air quality
issues.
Sasol markets high quality, low emission synthetic diesel in South Africa.
Similar GTL diesel produced in Qatar will dovetail neatly into tighter
environmental controls and increased diesel demand and consumption in many parts
of the world.
“Oryx GTL is a vital cog in our strategy to create a substantial GTL business
in the next decade, along with a number of international business partners.
Decades of continuous research and development, as well as proven design and
operating experience in this field, have set us apart as leaders in the
commercialisation of GTL. We are confident that Sasol will play an important
role in the energy mix of the future,” said Sasol CE Patrick Davies.
“We salute our equity partner Qatar Petroleum, and especially His Excellency
Abdullah Bin Hamad Al-Attiyah, for their courage, unwavering support and
confidence in Sasol and our GTL technology. Qatar has vast natural gas reserves
and our technology will assist the country in monetising these resources
efficiently. Besides employment opportunities and skills transfers, Sasol's
value proposition may also enable the development of other petroleum complexes
in the region. By helping us nurture what we have developed in South Africa,
Qatar is well on its way to becoming the GTL capital of the world,” added
Davies.
Qatar is regarded as the best GTL location in the world. Besides its vast
natural gas resources, it has great political stability, healthy investment
environment, efficient infrastructure development, and access to global markets
through a modern harbour.
Alternative fuels, such as GTL, offer the world new fuel energy sources,
strong environmental benefits, a reduction in petroleum dependence, and
diversity of supply sources. The GTL product slate includes diesel, jet fuel,
petrochemical naphtha, base oils and waxes.
Sasol Chevron – the London-based joint venture between Sasol and Chevron
Corporation of the USA – will market the high-quality, environmentally-friendly
GTL diesel initially in Europe and then elsewhere in the world. Further planned
expansions of Oryx GTL will be done in conjunction with Sasol Chevron. This
includes increasing the capacity of the Oryx GTL to about 100 000 b/d and
exploring building an integrated GTL plant with a capacity of about 130 000 b/d
in future.
NOTE:
Background on QP
Qatar Petroleum (QP) is a state-owned corporation established in the State of
Qatar in 1974. Qatar Petroleum is responsible for all phases of the oil and gas
industry in Qatar. The principal activities of Qatar Petroleum and its
subsidiaries and joint ventures cover exploration, drilling production, storage
and transport and sale and export of crude oil, natural gas liquids, liquefied
natural gas, gas-to-liquids, refined products, petrochemicals and fertilisers,
helicopter and financing services. For more information visit www.qp.com.qa.
Background on Sasol
Sasol is an integrated oil and gas company with substantial chemical
interests. Based in South Africa and operating worldwide, Sasol is listed on the
New York Stock Exchange (NYSE) and the JSE in Johannesburg, South Africa. Sasol
is the leading provider of liquid fuels in South Africa and a major
international producer of chemicals. Sasol uses proprietary Fischer-Tropsch
technologies for the commercial production of synthetic fuels and chemicals from
low-grade coal and natural gas.
Sasol has more than 50 years of proven commercial experience in producing
synthetic fuels. GTL technology is a step within the proven coal-to-liquids (CTL)
technology that Sasol has perfected in South Africa. In fact, today Sasol is
world-renowned for operating the only world-scale coal-based synthetic fuel
manufacturing facility in Secunda, south east of Johannesburg. The Secunda plant
produces 160 000 b/d of fuel from coal.
Sasol manufactures more than 200 fuel and chemical products that are sold
worldwide. In South Africa, Sasol also operates coal mines to provide feedstock
for its synthetic fuels plants. Sasol operates the only inland crude oil
refinery in South Africa. The group produces crude oil in offshore Gabon,
supplies Mozambican natural gas to end-user customers and petrochemical plants
in South Africa, and with partners is developing GTL fuel joint ventures in
Qatar and Nigeria. For more information visit www.sasol.com.
Technical Explanations
Naphta, LPG and how this differs from GTL
GTL Naphtha is a highly parrafinic product with low sulphur, naphthene and
aromatics content. These properties are expected to make it a very attractive
feedstock for the petrochemical industry, and particularly for the production of
ethylene. It is an ideal feedstock for steam cracking, and likely customers will
be Asian importers. The average Japanese cracker's throughput of Naphtha is 60
700 b/d. Japan alone imports about 500 000 b/d. Asian demand is about 2.4
million b/d and global demand is about 5.4 million b/d.
Liquid Petroleum Gas (LPG) is a gaseous hydrocarbon or petroleum gas such as
propane, butane and pentane, which is pressurised in liquefied form and used for
heating applications.
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