Shell and EGPC to convert Egypt's gas to liquids
9 Nov 2000
Shell International Gas Ltd and the Egyptian General Petroleum Corporation (EGPC) have signed, with the approval of Egypt's Petroleum Minister, a Development Protocol for a 75,000 b/d Gas to Liquid (GtL) conversion plant using Shell's Middle Distillate Synthesis (SMDS) process and at least one LNG train, to convert Egypt's natural gas to environmentally friendly synthetic fuels.
The project would be developed by a joint venture between Shell and EGPC. The plant could be put into commercial operation by mid 2004 for the LNG and late 2005 for SMDS. LNG exports will be targeted at Southern Mediterranean countries. The proposed project consists of a combined site for LNG & SMDS. Significant cost benefit could be achieved by combining these two developments into one site. Presently, West Demiatta on the Mediterranean coast, is the proposed location.
Shell already has extensive operational experience with SMDS. It currently operates a 12,000 b/d facility in Bintulu, Malaysia and is the only commercial scale GtL conversion plant of its type in existence around the world.
GtL produces oil products which will help satisfy the growing local demand of oil products/fuels. Egypt currently imports oil products but Shell believes Egypt's increasing gas reserves can satisfy the local market for these products for more than 50 years.
The total direct investment in the process plant would be in the order of $1.7 billion dollars. It is expected that the project will employ some 500 to 600 people, most of them to be recruited and trained locally. During construction, an average of local 5000 workers would be required.
