Name and Location
Escravos gas-to-liquids (GTL) plant project, Niger Delta, Nigeria.

Project Description
The project entails the construction of a GTL plant that will have an output of 34 000 bbl/d of GTL diesel, naphtha and liquefied petroleum gas (LPG) for export.

The plant, located 100 km south-east of Lagos, will use the rich gas resources of the Escravos field, which is estimated to produce 340-million cubic metres of gas a day, along with 1 200 bbl of condensate and 8 500 bbl of liquefied natural gas.

The GTL plant will be located adjacent to the Escravos gas plant, which processes some 150-million cubic metres of gas a day and produces LPG for sale to international markets and pipeline gas for domestic use.

The facility will provide significant environmental benefits by converting natural gas to produce ultraclean GTL diesel.

The facility will use a leading application of GTL, Sasol’s state-of-the-art Slurry Phase Distillate Process, which consists of Haldor Topsoe’s proprietary autothermal reforming, Sasol’s proprietary Fischer-Tropsch technology and Chevron Texaco’s proprietary Isocracking process.

The completion of the plant will add Nigeria to the list of countries leading the industry in the implementation of GTL production facilities. The plant will be built at a Chevron-owned reserve using Sasol technology.

Value
The cost of the project has escalated to $8,4-billion from $5,9-billion. Initial costs for the project were estimated at $1,7-billion.

Sasol will provide partial financing for the project.

Duration
The Escravos GTL plant has been delayed to 2013. The project was initially expected to be completed in 2010.

Client
Chevron (with 75% interest), through its subsidiary, Chevron Nigeria, in partnership with Nigeria National Petroleum Corporation (NNPC) (15% share), and Sasol with the remaining 10% share.

Key Contracts and Suppliers
Sasol Chevron (design and development of plant, and management, operating and technical services to the project owners); and Team JKS (engineering and procurement contractor).

Latest Developments
The cost of the much-delayed GTL project has increased to $8,4-billion, or $2,5-billion more than its last estimate of $5,9-billion, according to Chevron. It was initially estimated that construction of the plant would be completed in 2010, at a cost of $1,7-billion.

Meanwhile, Chevron has also announced that it will sign an engineering contract with regard to the proposed phase 3B expansion of the nearby Escravos gas plant, in the second half of 2011.

The project is now scheduled for completion in 2013, instead of 2012.

On Budget and on Time?
Construction of the GTL plant is now 70% complete. The project has been delayed to 2013. The cost of the project has also increased from $5,9-billion to $8,4-billion.

Contact Details for Project Information
Chevron spokesperson Scott Walker, tel +1 713 372 4923 or email swlk@chevron.com.
Chevron Nigeria, tel +234 1 277 2222.
NNPC, tel +234 9 200 81133 or fax +234 9 234 0029.
Sasol Chevron, tel +44 20 3205 1800 or email info@sasolchevron.com.