Qatar Petroleum and Exxon Mobil Corporation have decided “not to progress” their planned Gas-to-Liquids (GTL) project. The two entities will instead pursue the development of the Barzan Project in Qatar’s North Field.
The Qatar GTL project, with a planned initial capital investment of $7 billion, would have been the world’s largest single, fully integrated GTL project, with daily output of 154,000 barrels of synthetic fuels and chemicals.
Qatar Petroleum is partnering with Sasol in the Oryx GTL project, currently coming on stream, and with Royal Dutch Shell in the planned Pearl GTL project. The cost of the Pearl GTL project could be as much as $18 billion—triple what Shell had originally estimated. (Earlier post.)
The initial phase of the Barzan project will supply domestic gas to meet the State of Qatar’s infrastructure and industry growth. Qatar Petroleum and Exxon Mobil have agreed to form a joint venture to oversee the project development.
We understand that the Barzan Project is a priority for the State of Qatar. We are pleased to have been the only international oil company selected to participate in the Barzan Project and look forward to continuing our successful partnership with Qatar Petroleum.—Stuart McGill, Senior Vice President of Exxon Mobil
It is expected that the initial phase of the Barzan Project will yield about 1.5 billion cubic feet per day of sales gas with the startup anticipated in the year 2012.