Pearl GTL on Unscheduled Go-Slow: Shell

Shell said December 23 that its Pearl gas-to-liquids (GTL) plant in Qatar is “currently operating at a reduced rate of production due to unforeseen maintenance required on some or all of the plant’s 18 gasifier units” and that meantime it is operating at half its planned capacity.

“Repairs are already underway and operations at Pearl will continue at a reduced rate until repairs are completed. Shell is currently carrying out technical assessments to determine when the plant will return to full production. In the meantime, Pearl is producing at approximately 50% of plan,” it added. The company said it has GTL products in storage and would liaise with customers to minimise any impact on supplies.

Its statement did not say if its originally planned volume was the same as full capacity. Pearl GTL has installed capacity of about 140,000 b/d of GTL products, including ultra low-sulphur synthetic diesel, and 120,000 b/d of natural gas liquids and ethane.

Pearl GTL complex in Qatar (Photo credit: Shell)

Located at the Ras Laffan Industrial City, Shell’s giant Pearl GTL venture started out costed at $5bn but ended up completed in 2011 at an overall cost of some $24bn according to Qatari sources. Shell put its cost at $18bn-$19bn. Full ramp up was achieved in late 2012. It is the world’s largest GTL plant and, due to low oil price economics, no GTL units of similar size are now envisaged by anyone in the future anywhere else.

Qatar Petroleum and Shell signed the original development and production sharing agreement in July 2004, based on a 51%/49% split of revenues after full development funding by Shell.

Mark Smedley