Shell International Gas Ltd., London, cemented a development protocol deal with the Egyptian General Petroleum Corp. (EGPC), Cairo, to build a 75,000 b/d gas-to-liquids (GTL) conversion plant with at least one LNG train to convert Egyptian gas production into "ultra clean" synthetic fuels using Shell's middle distillate synthesis (SMDS) process.
The $1.7-billion project, given the go-ahead by Egypt's petroleum ministry, will lead to the construction of a combined site for LNG and SMDS. West Demiatta on the Mediterranean coast of Egypt is the frontrunning location for such a facility.
Shell said the plant will be developed by a joint venture with EGPC and could be moved into commercial operation by mid-2004 for the LNG train and late-2005 for SMDS. The company will target LNG exports at southern Mediterranean countries.
"This project is one of several highly strategic projects to Egypt," said Sameh Fahmi, Egypt's minister of petroleum affairs. "The government will provide the necessary support to make it a successful project."
Shell already has operational experience with SMDS through its 12,000-b/d facility in Bintulu, Malaysia.
SMDS is a three-stage process, developed at Bintulu, that transforms natural gas into middle-distillate products, such as naphtha, gas oil, and kerosine, with low sulfur and low aromatics contents.
The process has "proved to be an attractive alternative to LNG and we are actively seeking opportunities around the world for more second-generation SMDS facilities," said vice-president of SMDS global development, Jack Jacometti, when Shell announced the beginning of the protocol deal with Egypt in October.
Shell said the synthetic fuels produced by the new plant will help satisfy the growing local demand of oil products and fuels in Egypt, a country that presently imports oil products.
The company believes Egypt's increasing gas reserves can meet the local market demand for these products for more than 50 years and that GTL "offers the possibility of utilizing this abundant natural resource to meet the urgent needs of the country and contribute to sustainable development in Egypt."
