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Pearl GTL project in Qatar

Energy Minister Al-Attiyah and Malcolm Brinded of Shell, sign the Pearl GTl Project DPSA

From “Outspoken”, a former employee of Shell Oil USA

John,

I don’t have time to prepare a full blow article for you, so I decided to drop you a note about Shell and its gas investments that will give you an idea as to why Shell is moving toward natural gas as the anchor for its business.

Attached is the link to an article on the Pearl GTL project in Qatar. Shell has an enormous investment in this project and Qatar has some of the greatest natural gas reserves in the world.

Pearl Gas-to-Liquids Project, Ras Laffan – Hydrocarbons Technology

Qatar’s Golden Age

The Sweet In The Sour – Middle Eastern Gas Reserves …

This project of Shell’s will supposedly produce well in excess of 140,000 bbl of petroleum liquids from gas. There is no cost to Shell for the gas and it costs about $6 USD to produce 1 bbl of liquids from about 10 mcf of gas, depending upon plant efficiencies, etc. Shell gets to sell the stuff for something in excess of $100 /bbl, so the profit margin on this stuff is tremendous. Shell’s interest in the project is 49% with the government holding 51%. Shell is footing the $20 billion cost for the processing plant. Even so, Shell will make a vast amount of money from this project.

In any event, this will be a huge money maker for Shell in the coming years. So, will other similar projects. Qatar has about 900 tcf of gas reserves. This is about 900 billion bbl of liquids if completely converted. That is a HUGE reserve number. The UAE also has vast gas reserves, as does Iran and Russia.

This makes Qatar a very important long term profit center for Shell. For this reason alone it does not surprise me that Shell is playing the ‘seconding’ game in Qatar and the UAE as they have done in Nigeria.

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