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Pipeline Magazine: Hyundai, Shell sign letter of intent for GTL project in Qatar

Posted: 14 August 2006

Hyundai Heavy Industries Co., Ltd. (HHI) said that it has signed a letter of intent with Qatar Shell GTL Limited, a Royal Dutch Shell plc subsidiary, for the engineering, procurement, and construction (EPC) for the feed gas preparation works of the Pearl GTL Project. HHI will perform the work in a consortium with Chiyoda Corp. called CHC.

The project for two trains of gas processing units, with a capacity of 850 MSCFD and a total of 1,700 MSCFD of natural gas (equivalent to 8 MMTPA of LNG), will send feed gas to the GTL core unit to produce 140,000 barrels per day of GTL products. The project will be completed around the end of the decade in a staged sequence for phases 1 and 2.

The GTL plant will produce virtually sulfur-free, clean liquid products and fuels. With lower emissions at point of use, it can play a major role in reducing local air pollution in cities and provide a strategic diversification of liquid transport fuel for importing countries. As evolving technology, various GTL projects are being planned worldwide and HHI, by participating in this GTL project, has created a major milestone for future GTL projects.

HHI aims to get more orders while focusing on oil and gas projects by consolidating its position as major EPC contractor in the western African region. Amid continuing high oil prices, major oil companies are actively developing natural gas and crude oil by keeping investing in upstream sector. HHI will focus its business resources on areas with high prospects for future orders, such as Nigeria, southwestern Africa, and the Middle East.

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