Can gas-to-liquids (GTL) make a comeback in Oman? Royal Dutch Shell, which is committed to gas as a strategy for navigating the low-carbon energy transition, seems to think so, and is due to make a critical final investment decision next year. Oman, meanwhile, is undertaking ambitious plans to grow its gas sector, including further expansion of its LNG export capacity. The question is whether Shell’s GTL plans, which proved costly in Qatar, are the best way for Oman to monetize more of its gas. Oman is a modest oil and gas producer in the Middle East but achieved a gas surplus for the first time ever last year thanks to BP’s Khazzan project - even if that status looks short- lived (PIW Apr.2’18). Oman has yet to commit to Shell’s GTL scheme, Omani Minister for Oil and Gas Mohammed al-Rumhy told Energy Intelligence, but could ultimately buy into it through its state-owned Oman Oil Co. Al-Rumhy has reservations, however - chiefly Shell’s experience with the 140,000 barrel per day Pearl GTL project in Qatar, which came on line in 2011 late and massively over budget - from $5 billion to an estimated $23 billion. Shell now estimates costs of the Omani project, which could start up in 2025 or 2026, at $5 billion to $7 billion. “But you get these numbers thrown left and right. We want to pin it down and make sure it is really viable and profitable,” the minister stated.
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