27th Jul 2006 07:02
Qatar and Shell Launch Integrated Pearl GTL ProjectQatar Petroleum and Royal Dutch Shell plc today announced the launch of theworld-scale integrated Pearl Gas to Liquids (GTL) project in Qatar.The Pearl GTL project includes the development of offshore natural gasresources in Qatar's North Field, transporting and processing the gas toextract natural gas liquids and ethane, and the conversion of the remaining gasinto clean liquid hydrocarbon products through the construction of the world'slargest integrated GTL complex in Ras Laffan Industrial City.Upstream, some 1.6 billion cubic feet per day of wellhead gas will be producedfrom the North Field and transported and processed to produce approximately120,000 barrels of oil equivalent per day of condensate, liquefied petroleumgas and ethane. The North Field is considered to be the largest singlenon-associated gas reservoir in the world with estimated recoverable resourcesin excess of 900 trillion cubic feet. Over its lifetime the integrated projectwill produce upstream resources of approximately 3 billion barrels of oilequivalent.Downstream, dry gas will be used as feedstock for a new onshore integrated GTLcomplex which will manufacture an additional 140,000 barrels per day of liquidhydrocarbon products. The Pearl GTL complex will consist of two 70,000 b/d GTLtrains and associated facilities. The plant will produce a range of cleanliquid products and fuels, comprising naphtha, GTL fuel, normal paraffins,kerosene and lubricant base oils. GTL fuel is the largest component of theproduct slate and can be used in existing light and heavy-duty diesel engines.With lower emissions at point of use, it can play a major role in reducinglocal air pollution in cities and provide a strategic diversification of liquidtransport fuel for importing countries. GTL blended fuels can also enhanceengine performance as demonstrated by the historic Audi R10 TDI win at thisyear's Le Mans 24-hour race.The fully integrated Pearl GTL project is being developed under a Developmentand Production Sharing Agreement with the government of the State of Qatar,covering offshore and onshore costs, with Shell providing 100 per cent ofproject funding. The award of various engineering, procurement, constructionand management contracts for execution of the project has now begun. Productionfrom the first Pearl GTL train is anticipated to begin around the end of thedecade, with the start up of the second train following within a year.His Excellency Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier andMinister of Energy and Industry of Qatar said today: "His Highness the Emir,Sheikh Hamad Bin Khalifa Al-Thani, has set a wise strategy for the optimalutilisation of Qatar's natural resources for the benefit of Qataris, now and inthe future. GTL opens a new global market for Qatari natural gas and allowsQatar to contribute constructively to improving the local environment bysupplying a cleaner alternative transport fuel. Shell has extensive expertisein all aspects of the GTL value chain and I am pleased to have them as partnerson our journey to become the GTL capital of the world."Jeroen van der Veer, Chief Executive of Royal Dutch Shell, added: "Today'sannouncement is another clear demonstration of our long-term commitment topartnering with the State of Qatar to deliver Qatari natural gas and GTLproducts to markets around the world. It is also evidence of our commitment toleverage leading Shell technology in order to increase the world's supply ofcleaner and more diverse liquid hydrocarbon products. Pearl GTL is just oneexample of Shell's strong portfolio of growth opportunities, opportunities thatoffer scale, long producing life, exposure to commodity price upside andattractive returns for shareholders."For more information visit:www.qp.com.qa for Qatar Petroleumwww.shell.com/qatar for Shell in QatarInvestor Inquiries:UK: Gerard Paulides +44 20 7934 6287Continental Europe: Tjerk Huysinga +31 70 377 3996USA: Harold Hatchett: +1 212 218 3112Media Inquiries:International: +44 20 7934 5963/3045/3453DisclaimerThis document contains forward-looking statements concerning the financialcondition, results of operations and businesses of Royal Dutch Shell plc. Allstatements other than statements of historical fact are, or may be deemed tobe, forward-looking statements. Forward-looking statements are statements offuture expectations that are based on management's current expectations andassumptions and involve known and unknown risks and uncertainties that couldcause actual results, performance or events to differ materially from thoseexpressed or implied in these statements. Forward-looking statements include,among other things, statements concerning the potential exposure of Royal DutchShell to market risks and statements expressing management's expectations,beliefs, estimates, forecasts, projections and assumptions. Theseforward-looking statements are identified by their use of terms and phrasessuch as ``anticipate'', ``believe'', ``could'', ``estimate'', ``expect'',``intend'', ``may'', ``plan'', ``objectives'', ``outlook'', ``probably'',``project'', ``will'', ``seek'', ``target'', ``risks'', ``goals'', ``should''and similar terms and phrases. There are a number of factors that could affectthe future operations of Royal Dutch Shell and could cause those results todiffer materially from those expressed in the forward-looking statementsincluded in this Report, including (without limitation): (a) price fluctuationsin crude oil and natural gas; (b) changes in demand for the Group's products;(c) currency fluctuations; (d) drilling and production results; (e) reserveestimates; (f) loss of market and industry competition; (g) environmental andphysical risks; (h) risks associated with the identification of suitablepotential acquisition properties and targets, and successful negotiation andcompletion of such transactions; (i) the risk of doing business in developingcountries and countries subject to international sanctions; (j) legislative,fiscal and regulatory developments including potential litigation andregulatory effects arising from recategorisation of reserves; (k) economic andfinancial market conditions in various countries and regions; (l) politicalrisks, project delay or advancement, approvals and cost estimates; and (m)changes in trading conditions. All forward-looking statements contained in thisdocument are expressly qualified in their entirety by the cautionary statementscontained or referred to in this section. Readers should not place unduereliance on forward-looking statements. Each forward-looking statement speaksonly as of the date of this document. Neither Royal Dutch Shell nor any of itssubsidiaries undertake any obligation to publicly update or revise anyforward-looking statement as a result of new information, future events orother information. In light of these risks, results could differ materiallyfrom those stated, implied or inferred from the forward-looking statementscontained in this document.Please refer to the Royal Dutch Shell plc's Annual Report on Form 20-F for theyear ended December 31, 2005 for a description of certain important factors,risks and uncertainties that may affect the Company's businesses.ENDROYAL DUTCH SHELL PLCRelated Shares:
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