Gas-to-liquids project to be a game-changer for Sultanate

CLEAN FUELS AND PRODUCTS: Shell-backed scheme to bring GTL benefits to Oman

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