Repairs to damaged production train of the Pearl gas-to-liquids facility in Ras Laffan, Qatar, are on track to be completed during the first quarter of 2027, joint venture partner Shell said recently. The repairs would operationally enable the plant to resume producing base oil at capacity.
The spokesman added, though, that actual production will depend conditions in the region including the status of shipping through the Strait of Hormuz, which has closed off and on since the war between the United States, Israel and Iran began in February.
“The ability to sustain safe and reliable operations at Pearl GTL remains dependent on the regional security situation, including the safe passage of product shipments through the Strait of Hormuz,” the spokesman told Lube Report. “We continue to monitor developments in the Middle East closely, with the safety and wellbeing of our people and contractors remaining our highest priority.”
Reuters first reported the timeline for repairs earlier this month. In an Oct. 8 report, Reuters also said Shell had resumed supplying naphtha from undamaged areas of the facility after pausing production because the closing of Hormuz and the ongoing risk of attacks.
A 50:50 joint venture between Shell and Qatar Energy, Pearl includes one of the world’s largest base oil plants and by far the largest source of GTL base oils, with Shell reporting capacity of about 30,000 barrels per day. The facility converts natural gas from Qatar’s North Field into base oil, fuels and chemical feedstocks. Its base oils are shipped to distribution hubs in Houston, Hamburg and Hong Kong before being supplied to Shell’s lubricant blending plants worldwide.
The plant was damaged during an attack on Qatar’s Ras Laffan industrial area in March, forcing a shutdown. The second of its two processing trains, which accounts for nearly half of the base oil capacity, sustained damage in that attack. Shortly afterward Shell said it would take a year to repair. Many market players and observers expected repairs to last at least toward the end of 2027, assuming parts would be difficult to obtain and that repair work would not be done until the fighting stopped.