Qatar Will Begin Exporting GTL Fuels In Early 2007; Doha Is GTL's Capital.

Sasol of South Africa, the biggest producer of fuel from coal in the world, on Dec. 4 announced that the Oryx gas-to-liquids (GTL) plant in Qatar was in "start-up mode" and output would reach the market early in 2007. Sasol in partnership with Chevron, together with Shell, are promoting Doha as the world capital of GTL, the source of the world's cleanest fuels.

Sasol had said technical problems delayed production from the plant. It had been expected to start output by the third quarter of this year to the first quarter of next year. Oryx was officially opened in June this year. Output from Oryx - the world's largest commercial GTL plant, with a capacity for 34,000 barrels per day - was affected by problems with a super heater.

"The plant is in start-up mode and based on current progress we are confident that the first product...will be ready for market by the first quarter of 2007", Sasol spokesman Johann van Rheede said. Oryx GTL is a joint venture between Sasol Chevron (49%) and the state-owned Qatar Petroleum (QP - 51%).

Chevron will do most of the marketing of the ultra clean "green diesel" in Europe and North America under the joint Sasol Chevron brand. Once online, the $1 billion Oryx GTL plant will produce mostly GTL fuel and GTL naphtha.

Qatar, home to the world's third largest reserves of natural gas after Russia and Iran, wants to develop GTL as a way to get its vast gas reserves to market, alongside sales of liquefied natural gas (LNG) and pipeline gas. Royal Dutch Shell is developing what will be the world's biggest GTL project, also in Qatar, which is expected to start around the end of the decade.

QP and Shell and Sasol Chevron have launched a campaign to promote Qatar as the GTL capital of the world. They held an exhibition showcasing the characteristics of GTL fuel at the City Centre Mall as part of the campaign. The exhibit featured two GTL fuelled vehicles including the Oryx, a Toyota land cruiser, which participated in Sasol Chevron's GTL challenge, an 11,000 km symbolic journey from south Africa to Qatar, and the Audi R10 TDI, which won the Le Mans 24 hour endurance race in June 2006 using Shell V-power diesel containing GTL fuel.

Sa'd al-Ka'bi, director of Oil and Gas Ventures at QP, said in a report published in the Peninsula newspaper that the exhibition provided an excellent opportunity to highlight the benefits of GTL fuel. Andy Brown, managing director of Qatar Shell GTL and Shell's Qatar country chairman, said: "Shell is delighted to contribute with this amazing illustration of GTL power. GTL represents cutting edge fuel technology and Shell is proud to play a significant role in taking Qatar to the pinnacle of the industry".

Also on display was the Oryx, a vehicle that took part in the Sasol Chevron GTL challenge. "The Sasol Chevron GTL Challenge proved that GTL fuel could endure some of the toughest conditions possible through African terrain", said Sasol Chevron Qatar country manager Pat Butcher.

GTL fuel is produced from natural gas. It is colourless, odourless and virtually free of sulphur and aromatics, and can play a significant role in reducing local air pollution in major cities. The fuel can also be used in conventional diesel engines without any need to modify the engine, or to make changes to the existing fuelling infrastructure.