Shell GTL Plant in Qatar

Royal Dutch Shell PLC has under study a $10 billion gas-to-diesel processing plant in Louisiana, according to a report in the Wall Street Journal on April 4th. That newspaper cites “several people familiar with the company’s plans” as saying that the company is considering building a plant in the U.S. that is similar to the Pearl plant in Qatar. That plant converts enough natural gas into diesel fuel to fill more than 160,000 cars a day.

The Fischer-Tropsch gas-to-liquids (GTL) process was invented in the 1920’s to convert synthesis gas, which is a mixture of carbon monoxide and hydrogen that can be made from most any hydrocarbon source including methane, into a diesel fuel type mixture of chemicals.  This process, requiring a catalyst, has been under improvement for decades.  Shell has advanced this technology and named their version “Middle Distillate Synthesis”.  The Qatar plant was initially estimated at $5 US-billion in 2003; and, when full plant operation is reached this year the cost may be $24 US-billion.

According to the Times-Picayune of New Orleans, Shell would not confirm that Louisiana is being considered for such a facility, but said that the company is looking at “a number of states in the Gulf Coast.” “Shell is evaluating locations along the Gulf Coast for a possible (gas-to-diesel) facility,” Hasting Stewart said in a statement. “We have not made a final decision as to the state or location. Our evaluation takes many factors into consideration, including an appropriate site, local workforce, needed infrastructure and state business climate.”

Louisiana Secretary of Economic Development Stephen Moret said the state could not discuss any ongoing or potential projects for competitive and confidentiality reasons, according to the Times-Picayune, “We are currently pursuing a number of (gas-to-liquids) projects.” He also said that “We have worked to make Louisiana the best place in the world for companies to invest by cutting taxes, revamping our state’s workforce development system, reforming our ethics laws and improving education.”