SHELL'S GAS TO MIDDLE DISTILLATES PLANT BACK ON LINE

Royal Dutch/Shell Group has started producing synthetic diesel from its $780 million natural gas to middle distillates synthesis (MDS) plant at Bintulu, Malaysia, after solving start-up problems caused by a June fire at the plant. It is the world's first commercial natural gas to middle distillates plant.

Oct. 25, 1993

2 min read

It is the world's first commercial natural gas to middle distillates plant.

MDS PRODUCTS

A first cargo of 4,000 metric tons of synthetic diesel, produced from Malaysian natural gas feedstock, was shipped earlier this month to Shell's Lutong in the East Malaysian state of Sarawak. There it will be used as a blending component to make high quality diesel fuel for sales to East Malaysian markets.

The MDS middle distillates are high quality and free of sulfur and aromatics, Shell noted.

MDS gas oil has a cetane number of more than 70, compared with the minimum specification of 47 for automotive diesel in Malaysia.

"These middle distillates are therefore excellent blending components for upgrading lower quality stock derived from conventional crude oil processing," Shell said.

Other Shell MDS products include detergent feedstocks, solvents for food or medical applications, special boiling point solvents, and wax and lubricant feedstocks.

PLANT SETBACK

The plant had started production in May to allow 6 months operation using new technology before an official opening scheduled for Sept. 1. A fire broke out in a production unit June 9, leading Shell to shut down the entire plant and later to postpone official start-up OGJ, Newsletter, July 19).

Specialty products, such as waxes, solvents, and detergent feedstocks, would be produced later this year, Shell said.

Once the plant is fully on stream, about 100 MMscfd of natural gas produced from fields off Sarawak will be converted to about 10,000 b/d of synthetic fuels.

About 80% of the output will be exported to Japan, Australia, the U.S. and Europe.

Shell noted research work on the plant began in 1973. Ten years later a pilot plant project was set up in Amsterdam. A commercial project got off the ground in August 1989 with establishment of the Shell MDS (Malaysia) Sdn. Bhd. joint venture.

The 60% Shell owned project is supported by Malaysia's state oil company Petronas and the Sarawak state government, each with a 10% equity interest. Mitsubishi Corp. has the remaining 20% interest.