An ambitious Gas-to-Liquids (GTL) project planned by Shell in partnership with the Omani government and other partners is an integral part of a “bright” gas-based future envisioned by the energy giant for the Sultanate, according to a high-level executive.
The proposed scheme — the first of its kind to be established in Oman — is one of several objectives set out in a landmark Memorandum of Understanding (MoU) signed by Shell with the Ministry of Oil & Gas earlier this year, said As Tempelman, Vice-President — Ventures East, Shell Integrated Gas.
Addressing the Gas & LNG Middle East Summit, which opened at the Oman Convention and Exhibition Centre here yesterday, Tempelman said the GTL project and other initiatives envisaged in the MoU represent a new chapter in Shell’s decades-long partnership with the Sultanate in the energy field.
“As part of Oman’s new strategy for gas, we are proud to have signed an MoU with the Government of Oman that was announced earlier this year,” said Tempelman. “That MoU covers upstream gas exploration and development, a Gas-to-Liquids (GTL) project, liquified natural gas (LNG), as well as renewable energies. We hope this MoU will lead to the development of important new sources of gas. It will pave the way to monetise the country’s natural gas resources,” he stated.
The high-ranked executive was referring to a preliminary agreement reached by the Omani government with Shell Gas & Power Developments BV (Shell), Total, Occidental and Oman Oil Company as partners and investors in an integrated gas development extending from the upstream to the downstream segments of the gas value chain.
The MoU envisions a role for Total and Shell as operators in the development of several natural gas discoveries located in the Greater Barik area onshore Block 6, with respective shares of 25 per cent and 75 per cent. Initial gas production is estimated at around 500 MMcfd with potential to reach 1 bcf/d at a later stage.
Shell will utilise its formidable expertise in Gas-to-Liquids (GTL) schemes to set up a world-class scheme in the Sultanate, said Tempelman. “From our experience in Qatar and Malaysia, we know developing a GTL project is highly complex and capital intensive. But the results are worth it. Shell GTL technology will convert natural gas — the cleanest burning fossil fuel — into high quality liquid products that would otherwise be made from crude oil. These products include transport fuels, motor oils, and ingredients of everyday necessities — plastics, detergents and cosmetics.”
Devoid of any impurities like sulphur and aromatics that are found in traditional crude oil, the GTL products are colourless and odourless, and can be used as fuel in vehicles and airplanes, said the executive.
More importantly, GTL-type projects in Oman will also generate revenues and open wider socio economic opportunities for Omanis, Tempelman pointed out. “The government of Oman has rightly placed emphasis on energy projects that focus on economic growth, on job creation, development of Omani talent and contribute to In-Country Value (ICV),” he remarked.
Significantly, the MoU also covers investments and partnerships in the field of renewables and alternative energy sources, said Tempelman. “We hope to collaborate with Oman in the coming year to further this strategic aim. And Oman offers advantages. It has plenty of sunshine, and along its coastline, it offers the potential for wind power as well. These sources of energy can help Oman free up valuable gas resources for higher value uses, while generating greater economic activity in the country. Together with conventional oil and gas, new energies will help to provide Oman and the wider Middle East and North Africa region with greater energy security in the years to come,” he added.
The proposed scheme — the first of its kind to be established in Oman — is one of several objectives set out in a landmark Memorandum of Understanding (MoU) signed by Shell with the Ministry of Oil & Gas earlier this year, said As Tempelman, Vice-President — Ventures East, Shell Integrated Gas.
Addressing the Gas & LNG Middle East Summit, which opened at the Oman Convention and Exhibition Centre here yesterday, Tempelman said the GTL project and other initiatives envisaged in the MoU represent a new chapter in Shell’s decades-long partnership with the Sultanate in the energy field.
“As part of Oman’s new strategy for gas, we are proud to have signed an MoU with the Government of Oman that was announced earlier this year,” said Tempelman. “That MoU covers upstream gas exploration and development, a Gas-to-Liquids (GTL) project, liquified natural gas (LNG), as well as renewable energies. We hope this MoU will lead to the development of important new sources of gas. It will pave the way to monetise the country’s natural gas resources,” he stated.
The high-ranked executive was referring to a preliminary agreement reached by the Omani government with Shell Gas & Power Developments BV (Shell), Total, Occidental and Oman Oil Company as partners and investors in an integrated gas development extending from the upstream to the downstream segments of the gas value chain.
The MoU envisions a role for Total and Shell as operators in the development of several natural gas discoveries located in the Greater Barik area onshore Block 6, with respective shares of 25 per cent and 75 per cent. Initial gas production is estimated at around 500 MMcfd with potential to reach 1 bcf/d at a later stage.
Shell will utilise its formidable expertise in Gas-to-Liquids (GTL) schemes to set up a world-class scheme in the Sultanate, said Tempelman. “From our experience in Qatar and Malaysia, we know developing a GTL project is highly complex and capital intensive. But the results are worth it. Shell GTL technology will convert natural gas — the cleanest burning fossil fuel — into high quality liquid products that would otherwise be made from crude oil. These products include transport fuels, motor oils, and ingredients of everyday necessities — plastics, detergents and cosmetics.”
Devoid of any impurities like sulphur and aromatics that are found in traditional crude oil, the GTL products are colourless and odourless, and can be used as fuel in vehicles and airplanes, said the executive.
More importantly, GTL-type projects in Oman will also generate revenues and open wider socio economic opportunities for Omanis, Tempelman pointed out. “The government of Oman has rightly placed emphasis on energy projects that focus on economic growth, on job creation, development of Omani talent and contribute to In-Country Value (ICV),” he remarked.
Significantly, the MoU also covers investments and partnerships in the field of renewables and alternative energy sources, said Tempelman. “We hope to collaborate with Oman in the coming year to further this strategic aim. And Oman offers advantages. It has plenty of sunshine, and along its coastline, it offers the potential for wind power as well. These sources of energy can help Oman free up valuable gas resources for higher value uses, while generating greater economic activity in the country. Together with conventional oil and gas, new energies will help to provide Oman and the wider Middle East and North Africa region with greater energy security in the years to come,” he added.
Source Link: www.omanobserver.om
POST A COMMENT
