KBR Wins Engineering Contract for Shell GTL Project in Qatar

KBR is providing engineering services for the onshore design of a $5 billion Gas to Liquids (GTL) project in Qatar under a Front End Engineering Design (FEED) contract awarded to its joint venture partner JGC Corporation of Japan by Shell Global Solutions. KBR is the engineering, construction and services subsidiary of Halliburton.

The contract, which will require nearly 500,000 design workhours, will further refine the design of the onshore GTL plant in preparation for the implementation phase. JGC will execute the majority of the work at the MW Kellogg Ltd (MWKL) office in Greenford, North West London. MWKL is a joint venture company between JGC and KBR.

'This world-scale project will provide an alternative way to utilize Qatar's enormous gas resources in an economically robust and environmentally constructive way,' said Randy Harl, president and chief executive officer of KBR. 'We are pleased to be supporting JGC, our joint venture partner, in this strategically important project.'

The project includes the development of a block within Qatar's vast offshore North Field gas field, producing 1.6 billion cubic feet-per-day of gas. In February 2004, Shell announced that it had started appraisal drilling in this block.

Shell plans to invest around $5 billion to develop the offshore gas field and an onshore GTL plant that will produce 140,000 barrels per day (bpd) of GTL products (primarily naphtha and transport fuels, with a smaller quantity of normal paraffins and lubricant base oils) as well as significant quantities of associated condensate and liquefied petroleum gas. The project will be developed in two phases with the first phase operational in 2009, producing around 70,000 bpd of GTL products. The second phase will be completed less than two years later.