Shell eyes further GTL studies in Argentina, Australia

April 10, 2001
Shell Gas & Power, the Royal Dutch/Shell Group's gas and power arm, said Tuesday it was rolling out two further studies into the international investment potential of Gas-to-Liquids projects using its proprietary middle distillate synthesis (SMDS) process. The studies follow on from similar investigations into potential projects in Egypt, Indonesia, Iran, and Trinidad/Tobago.


By the OGJ Online Staff

LONDON, Apr. 10�Shell Gas & Power, the Royal Dutch/Shell Group's gas and power arm, said Tuesday it was rolling out two further studies into the international investment potential of Gas-to-Liquids projects using its proprietary middle distillate synthesis (SMDS) process.

The studies, being carried out in Argentina and Australia, follow joint venture plans with the Egyptian General Petroleum Corp. to build a second generation 75,000-b/d GTL conversion plant with at least one liquefied natural gas train on the coast of the Mediterranean Sea, along with studies into potential similar projects in Indonesia, Iran, and Trinidad/Tobago.

In Argentina, Shell is scouting locations for a plant in Tierra del Fuego, where it is in discussion with a local consortium regarding the possible supply of offshore gas to the facility. In Australia, the company is exploring sites in both Western Australia and the Northern Territory for a GTL plant.

Linda Cook, CEO of Shell Gas & Power, said the company was "actively pursuing a portfolio of investment opportunities for second generation large-scale (SMDS) facilities."

SMDS is a three-stage process used at Shell's 12,000-b/d Bintulu plant in Malaysia that converts natural gas into "ultra clean" middle distillates products naphtha, gasoil, and kerosene.

Meanwhile, Shell India Private Ltd. reported that its plans for a 5-million tonnes/year LNG terminal and port at Hazira moved ahead Monday when the company received Ministry of Environment & Forests clearance for the project.

As part of larger plans to forge a global "LNG value chain," Shell placed an order for two LNG carriers with Japan's Mitsubishi Heavy Industries Co. last year. Keel laying for the first of these 135,000 cu m tankers is scheduled for June with sea trials in September 2002.