Gas-to-Liquids Could Become Major Chemicals Feedstock

The establishment of a large-scale gas-to-liquids (GTL) production unit in Qatar, which will cause an expansion in GTLs as a feedstock for chemicals, is discussed. The vast majority of the GTL units are likely to be based on cobalt catalysts. Major factors in the projects are cost and economic viability of large-scale production of low-cost gas. The first two projects in Qatar involve Shell and Sasol of South Africa in separate joint ventures with state-owned Qatar Petroleum. The capital cost of Shell's GTL unit will be around $20,000 per barrel and Sasol has reduced its GTL capital costs $10,000 per barrel in a large-scale facility.