CompactGTL’s project in Kazakhstan – the world’s first fully commercial modular GTL plant.
|Gas supply:||24 million standard cubic feet per day agreed with the oilfield owner.|
|Production:||c.2,500 barrels per day of synthetic crude, upgraded to diesel blendstock.|
|Start of production:||2018|
The GTL plant is expected to bring with it significant future commercial and environmental benefits. Associated gas that might otherwise be flared will be fed through the plant every day to produce synthetic diesel.
Fluor – engineering partner
Fluor is responsible for the delivery of pre-FEED and FEED work, plus project management support during the EPC phase.
Fluor is the leader in FEED and EPC execution of GTL projects globally – e,g, Lake Charles project and Sasol 3 complex.
Fluor has experience in some of the most complex oil and gas projects in Kazakhstan such as:
- TengizChevroil’s Asset Development Project, one of the largest and most complex projects in oil and gas industry
- Caspian Pipeline Consortium US$3.2nb oil pipeline system stretching 1,700km from Tengiz, Kazakhstan to a deep-water marine terminal on the Black Sea at Novorossiysk, Russia
3D model of the CompactGTL plant for Kazakhstan
Kazakhstan offers considerable potential and attractive economics for CompactGTL’s proven smallscale GTL technology. Kazakhstan is a major producer of oil and is also one of the leaders globally in seeking to use new technology to bring environmental benefits to the country. The country, abundant in natural resources, lacks gas utilisation options, which can constrain the oil production. Oil companies can face tight regulation in the government’s effort to reduce flaring. At the same time, Kazakhstan has historically been experiencing a refined fuels deficit due to the lack of refining capacity, and is forced to import fuel from the neighbouring countries. Kazakhstan aims to meet all domestic fuel demand by 2017.
The Kazakhstan project is planned as the first of many under the Memorandum of Understanding signed between CompactGTL and the Ministry of Oil & Gas the Republic of Kazakhstan.
Tony Hayward, the Chairman of CompactGTL, and Uzakbay Karabalin, the Minister of Oil & Gas of the Republic of Kazakhstan, signed a Memorandum of Understanding in March 2014 to support the development and implementation of small scale GTL in Kazakhstan.
Kazakhstan offers a favourable investment climate
- Largest Central Asian producer of hydrocarbons with oil production projected to reach 3 mm bpd by 2030
- Stable year-on-year growth with annual GDP growth rate of 8% over the past decade
- Over $200 billion of foreign direct investment since 1993
- Kazakhstan was the first former Soviet Union country to obtain an investment-grade credit rating
- Accession to the WTO is anticipated in 2016
- Economic growth forecasts remain strong over the next 10 years
- Government have recently introduced incentives to bring new technology to Kazakhstan in effort to promote economic diversification from reliance hydrocarbons
Strong drivers for small scale GTL
- Kazakhstan is land locked and is located far from international markets
- Associated gas utilization is a major challenge
- Flaring is subject to tight regulation
- Lack of gas utilisation options can constrain oil production
- 75% of the total gas produced is re-injected or flared (1.2 TCF in 2012)
- Total gas flared is equivalent to 40,000 bpd GTL
- Despite its immense oil reserves, Kazakhstan is faced with refined fuel shortage
- To cover the shortage of fuel, Kazakhstan imports fuel from neighbouring Russia and Azerbaijan, with transportation amounting to nearly 50% of fuel costs
In addition to the first project in Kazakhstan, CompactGTL has a robust pipeline of potential projects and is currently developing other opportunities in Kazakhstan / CIS, S.E. Asia and the Americas.