Identifier
Created
Classification
Origin
09DOHA639
2009-10-26 05:23:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Doha
Cable title:  

QATAR MOVES FORWARD ON GAS TO LIQUID INNOVATION

Tags:  TRGY TNGD ENRG KMPI QA 
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VZCZCXRO9587
PP RUEHDE RUEHDH RUEHDIR
DE RUEHDO #0639/01 2990523
ZNR UUUUU ZZH
P 260523Z OCT 09
FM AMEMBASSY DOHA
TO RUEHC/SECSTATE WASHDC PRIORITY 9456
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHAM/AMEMBASSY AMMAN 0767
UNCLAS SECTION 01 OF 02 DOHA 000639 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: TRGY TNGD ENRG KMPI QA
SUBJECT: QATAR MOVES FORWARD ON GAS TO LIQUID INNOVATION

REF: A. DOHA 604

B. DOHA 458

--------------
(U) KEY POINTS
--------------

-- In mid-October, Qatar witnessed the opening of the control
room for an 18-billion dollar gas-to-liquids (GTL) plant
called the Pearl and saw a Qatar Airways A340-600 commercial
flight powered for the first time by GTL kerosene.

-- Coinciding with these achievements, the Qatar Science and
Technology Park signed agreements with a handful of entities,
including Shell and the Qatar campus of Texas A&M University,
to enhance and develop GTL fuel production.

-- According to Qatar's Minister of Energy, Qatar hopes to
become the world's largest producer of GTL kerosene by 2012.

--------------
(SBU) COMMENTS
--------------

-- Qatar's GTL accomplishments to date and future plans
underscore the potential here for collaborative and
successful research aimed at developing alternative fuels and
technologies.

-- The combination of outstanding educational institutions
and high-powered companies brought together under the
umbrella of the Qatar Science and Technology Park
demonstrates the desirability of establishing in Qatar
additional U.S. partnerships consistent with the President's
outreach to the Muslim world (Refs A & B).

End Key Points and Comments.

UNCLAS SECTION 01 OF 02 DOHA 000639

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: TRGY TNGD ENRG KMPI QA
SUBJECT: QATAR MOVES FORWARD ON GAS TO LIQUID INNOVATION

REF: A. DOHA 604

B. DOHA 458

--------------
(U) KEY POINTS
--------------

-- In mid-October, Qatar witnessed the opening of the control
room for an 18-billion dollar gas-to-liquids (GTL) plant
called the Pearl and saw a Qatar Airways A340-600 commercial
flight powered for the first time by GTL kerosene.

-- Coinciding with these achievements, the Qatar Science and
Technology Park signed agreements with a handful of entities,
including Shell and the Qatar campus of Texas A&M University,
to enhance and develop GTL fuel production.

-- According to Qatar's Minister of Energy, Qatar hopes to
become the world's largest producer of GTL kerosene by 2012.

--------------
(SBU) COMMENTS
--------------

-- Qatar's GTL accomplishments to date and future plans
underscore the potential here for collaborative and
successful research aimed at developing alternative fuels and
technologies.

-- The combination of outstanding educational institutions
and high-powered companies brought together under the
umbrella of the Qatar Science and Technology Park
demonstrates the desirability of establishing in Qatar
additional U.S. partnerships consistent with the President's
outreach to the Muslim world (Refs A & B).

End Key Points and Comments.


1. (SBU) Simon Buerk, communications manager for Shell
Service Company in Qatar, told P/E Chief Rice October 20 that
the revenue from the Pearl project, once it is fully
operational, will generate a profit in the early stages that
Shell will split with Qatar Petroleum (QP).


2. (SBU) According to Buerk, the Pearl GTL facility will
produce kerosene, GTL-based oil, diesel and sulfur for sale
in Qatar and abroad. Asked about long-term contracts, the
communications manager said Shell would seek to enter into
them "product by product," but he declined to estimate what
contracts might be on the horizon.


3. (U) Shell and local officials have touted the Pearl
project in press reports as "positioning Qatar as the GTL
capital of the world." The facility, when fully on-line in
2012, is expected to produce 140,000 barrels per day of clean
liquid transport fuel and 120,000 barrels of oil equivalent
per day of natural gas liquids and ethane.


4. (U) The central control room for the facility that was
inaugurated October 13 by Energy Minister and Deputy Prime
Minister Abdullah bin Hamad Al-Attiyah contains four large
banks of high-powered computers hosting 179 servers. Every
part of the plant is linked to the control room by 5,850
kilometers of underground cable.


5. (SBU) Shell, according to Buerk, projects that the overall
Pearl project will open in late 2010. Deputy Prime Minister
Al-Attiyah told the press that project revenues should reach
close to 100 billion USD over the expected 25-year lifetime
of the project. He added that the construction of the Pearl
has created 48,000 jobs on the construction site alone and
that by 2012 Qatar hopes to become the world's largest
producer of GTL kerosene.

--------------
QATAR AIRWAYS FLIGHT POWERED BY GTL
--------------


6. (U) The October 12 flight of the Qatar Airways A340-600
commercial jet, flown by Qatari pilots, flew from Doha
International Airport to London Gatwick with a delegation of
dignitaries on board, according to press reports. Powered by
Rolls-Royce Trent 556 engines fueled by a 50-50 mixture of
synthetic GTL kerosene and conventional oil-based kerosene
produced by Shell, the unprecedented flight coincided with
two agreements in the fields of science and technology signed
October 13 by the Qatar Science and Technology Park
(affiliated with the Qatar Foundation),the University of
Texas A&M-Qatar, the University of Sheffield, Shell,

DOHA 00000639 002 OF 002


Rolls-Royce, and the German Center for Space Science.


7. (U) According to a press release from the Science and
Technology Park, the first agreement aims to evaluate and
assess the physical properties of GTL fuel for aircraft. The
second agreement seeks to identify the characteristics that
optimize GTL fuel combustion.

LeBaron