Shell gas & Power (Shell) today announced two further studies into the
investment opportunities for Gas to
liquids (GTL) projects. The studies in
Argentina and
Australia will all use Shell’s proprietary GTL technology, the
Shell Middle Distillate
synthesis (SMDS) process. This follows previous
announcements of similar studies into potential projects in
Egypt,
Indonesia, Iran, and Trinidad and Tobago and is in line with the company’s
strategy to commit to around four projects within this decade. Shell will
continue to develop other potential opportunities in GTL to strengthen its
portfolio of prospects.
SMDS converts
gas into ultra clean liquid products. Recent advances in
Shell’s proprietary GTL technology have created potentially attractive
opportunities for the commercialisation of large gas reserves in an
environmentally sustainable manner. The next generation facility will have a
capacity of 75,000 b/d, requiring a gas intake of around 600 mmscf/d –
roughly equivalent to the gas intake of a large Liquefied Natural Gas (LNG)
train.
In
Argentina, Shell has undertaken a scouting study for a plant in Tierra del
Fuego. Shell is in discussion with a local consortium regarding the possible
supply of offshore gas to the plant.
In Australia, Shell is exploring opportunities for a SMDS investment in this
country with its abundant gas reserves. This would complement the
substantial LNG industry and would as such provide a strategically
important diversification. Locations in both Western Australia and the
Northern Territory are under consideration.
In addition Shell is also investigating new opportunities in
Malaysia.
Linda Cook, CEO Gas and Power said: “SMDS
investments provide
substantial economic, social and environmental benefits for host countries.
Shell already has extensive operational and
marketing experience through
our existing SMDS plant in Bintulu,
Malaysia, and we intend to strengthen
our leading position by actively pursuing a portfolio of investment
opportunities for our second-generation large-scale facilities.
Shell’s GTL technology offers an attractive, complementary alternative to
our LNG capability for the commercialisation of major gas reserves.”