Japanese engineering firm Chiyoda Corp said it and South Korea’s Hyundai Heavy Industries Cohad won an order to build natural gas processing units in Qatar for Royal Dutch Shell Plc.
A Hyundai spokesman put the total value of the deal at about $1.8 billion, with Hyundai’s share at about $517 million. Shell announced that it had given the go-ahead to build the world’s biggest gas-to-liquids project to convert gas from Qatar’s North Field into clean fuels for the global market.
The Chiyoda-Hyundai venture will build two trains for Qatar Shell GTL Ltds Pearl project, with total processing capacity of 1.6 billion cubic feet per day. The units will send feed gas to the gas-to-liquid (GTL) facility to produce GTL products at the rate of 140,000 barrels per day, Chiyoda said.
Shell has not announced a total cost for the project but recent comments by Qatar’s energy minister have suggested to industry analysts that it could be up to $10 billion.
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