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Saudi Arabia - Shell Is Discussing Gas-To-Diesel JV With Aramco.

Shell and Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production.  have begun discussion on the possibility of the multi- national company developing non-associated gas and turning it into premium diesels in Saudi Arabia Saudi Arabia (sä`dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. . A good as the cleanest gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by , the diesels would be partly consumed locally and partly exported.

This would be a joint venture between Shell and Saudi Aramco. It would compete with a similar venture being promoted in Qatar as a JV between QGPC QGPC Qatar General Petroleum Corporation
QGPC Qatar General Petroleum Company
 and Sasol of South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Exxon, proposing to take Mobil in the world's biggest merger valued at almost $250 bn, has been promoting such a project in Qatar as well, with the US market expected to become a major user of high quality diesels produced out of natural gas. Such environmentally-friendly diesels would be much in demand in Europe and the Asia-Pacific region during the next decade.

A top Shell executive visited Saudi Arabia recently to follow up on talks held in Washington last September, during the visit of Saudi Crown Prince Abdullah Ibn Abdel Aziz. In Riyadh the executive was told that, while the Saudi upstream From the consumer to the provider. See downstream.

(networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger
 for oil was closed to Saudi Aramco, the upstream for gas was open to any foreign company coming up with a good proposal. Subsequently, Saudi and Shell experts began discussing the gas-to-liquids process which the multinational company has developed, with a major gas plant in Malaysia now producing high quality diesels.

Saudi Arabia's demand for natural gas is expected to rise considerably during the next decade, due to rapid expansion of the power sector and the petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons.  and metal industries. These are based on gas and the focus of Saudi Aramco's current exploration programme is to find additional gas reserves throughout the kingdom.

ENI group of Italy has keen interest in developing a gas field in the north- west of Saudi Arabia near the Jordanian border. The group has proposed to develop the field for export, having promoted a gas pipeline system to be built around the Mediterranean.
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Publication:APS Review Gas Market Trends
Geographic Code:7SAUD
Date:Nov 30, 1998
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