Shell partially restarts Pearl gas-to-liquids plant in Qatar

By Mohi Narayan, Stephanie Kelly and Shadia Nasralla

LONDON, Oct 8 (Reuters) - Shell said on Thursday it had partially restarted its Pearl gas-to-liquids plant in Qatar, as traders said QatarEnergy returned Pearl-GTL naphtha cargoes to the spot market six months after the facility was damaged during the Iran war.

Shell said the move would allow it to build a limited amount of product inventory in storage, while its ability to ship product remains subject to the regional security situation.

QatarEnergy has begun offering cargoes that include Pearl-GTL naphtha and resumed some contractual deliveries, signalling some return of products from the facility to a supply-starved market. The war disrupted refinery operations and temporarily shut the Strait of Hormuz, through which about 20% of global oil and liquefied natural gas supplies previously passed.

Several traders who participate in the market said QatarEnergy issued a spot tender offering up to 50,000 metric tons of naphtha f four grades including Pearl GTL on a free-on-board basis from Ras Laffan port inside the Strait of Hormuz.

The state-owned refiner's last naphtha tender, which also included Pearl GTL grade, was awarded at a discount of $150 to Middle East quotes on FOB basis. [O/TEND]

It has resumed sending contract volumes of naphtha to some buyers. India's Haldia Petrochemicals received its 50,000 metric tons for this quarter, a company executive said on Monday. 

Shell did not comment on the market tender and QatarEnergy did not respond to a request for comment. Oil companies typically do not comment on tenders.

REPAIRS TO TRAIN 2 EXPECTED IN Q1 2027

Shell's wholly owned Pearl, which is fed from Qatar's North gas field, was hit in March, damaging one of its two processing plants, also known as trains. At full capacity, Pearl can produce 140,000 barrels of oil equivalent per day.

Pearl's output also feeds into Shell's downstream supply chain, including its lubricants business.

Repairs to the facility's Train 2 are expected to be completed in the first quarter of next year, a Shell spokesperson said. Shell estimated in March that it would take one year to fully repair Pearl.

Shell said its ability to sustain safe and reliable operations at Pearl depends on regional security, including the safe passage of shipments through the Strait of Hormuz.

The first LNG train under QatarEnergy's North Field East expansion project will be ready to start operation in November, two people aware of its plans said, offering Qatar a path to restoring some lost output. 

(Reporting by Stephanie Kelly and Shadia Nasralla in London and Mohi Narayan in New Delhi; Editing by Jan Harvey and Alexander Smith)