Shell Gas to Liquid (GTL): Technology to help the Marine Industry

Shell Gas to Liquid (GTL): 

Technology to help the Marine Industry 

Mark Harrison 

General Manager, Shell Marine Products 

29 th International Bunker Conference 

Copenhagen, Denmark 

24 th April 2008 

Shell Marine Products

Disclaimer statement 

This presentation contains forward-looking statements concerning the 

financial condition, results of operations and businesses of Royal 

Dutch Shell. All statements other than statements of historical fact are, 

or may be deemed to be, forward-looking statements. Forwardlooking 

statements are statements of future expectations that are 

based on management’s current expectations and assumptions and 

involve known and unknown risks and uncertainties that could cause 

actual results, performance or events to differ materially from those 

expressed or implied in these statements. Forward-looking statements 

include, among other things, statements concerning the potential 

exposure of Royal Dutch Shell to market risks and statements 

expressing management’s expectations, beliefs, estimates, forecasts, 

projections and assumptions. These forward-looking statements are 

identified by their use of terms and phrases such as ‘‘anticipate’’, 

‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, 

‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, 

‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. 

There are a number of factors that could affect the future operations 

of Royal Dutch Shell and could cause those results to differ materially 

from those expressed in the forward-looking statements included in 

this Report, including (without limitation): (a) price fluctuations in 

crude oil and natural gas; (b) changes in demand for the Group’s 

products; (c) currency fluctuations; (d) drilling and production results; 

(e) reserve estimates; (f) loss of market and industry competition; (g) 

environmental and physical risks; (h) risks associated with the 

identification of suitable potential acquisition properties and targets, 

and successful negotiation and completion of such transactions; (i) the 

risk of doing business in developing countries and countries subject to 

international sanctions; 

(j) legislative, fiscal and regulatory developments including 

potential litigation and regulatory effects arising from 

recategorisation of reserves;(k) economic and financial market 

conditions in various countries and regions; (l) political risks, 

project delay or advancement, approvals and cost estimates; and 

(m) changes in trading conditions. All forward-looking statements 

contained in this presentation are expressly qualified in their 

entirety by the cautionary statements contained or referred to in 

this section. Readers should not place undue reliance on forwardlooking 

statements. Each forward-looking statement speaks only as 

of the date of this presentation. Neither Royal Dutch Shell nor any 

of its subsidiaries undertake any obligation to publicly update or 

revise any forward-looking statement as a result of new 

information, future events or other information. In light of these 

risks, results could differ materially from those stated, implied or 

inferred from the forward-looking statements contained in this 

document. The United States Securities and Exchange Commission 

(SEC) permits oil and gas companies, in their filings with the SEC, 

to disclose only proved reserves that a company has demonstrated 

by actual production or conclusive formation tests to be 

economically and legally producible under existing economic and 

operating conditions. We use certain terms in this presentation, 

such as “oil in place" that the SEC's guidelines strictly prohibit us 

from including in filings with the SEC. U.S. Investors are urged to 

consider closely the disclosure in our Form 20-F, File No 1-32575 

and disclosure in our Forms 6-K file No, 1-32575, available on the 

SEC website www.sec.gov. You can also obtain these forms from 

the SEC by calling 1-800-SEC-0330. 


Three Hard Truths… 

- Global energy demand is accelerating 

– Conventional supply will struggle to keep pace 

– Climate stresses 


Demand continues to grow apace 

• Global transport fuel demand forecast to rise by 45% from 2006 to 2030 

• Marine fuel demand forecast to rise by c.50% from 2006 to 2030 

Million Barrels per Day 

70 

60 

50 

40 

30 

20 

10 

0 

Global transport fuel demand 

Jet fuels / Avgas 

Marine fuels 

Diesel (incl. GTL) 

LPG / CNG 

Gasoline 

2006 2010 2015 2020 2025 2030 

Source: Shell calculations based on IEA and PIRA data 

Bio-diesel 

Bio-gasoline 

Marine Fuels 

LPG/CNG 

Gasoline 

Shell Marine Products 

Jet Fuels/Avgas 

Diesel (incl. GTL)

Future fuels – Gas to Liquid 


What is Gas to Liquids? 

� The Gas to Liquids process converts natural gas into high quality liquid products. 

Shell Bintulu GTL Plant, Malaysia 

Natural gas GTL plant converts natural gas 

using Fischer-Tropsch process 

Products include transport 

fuels and lubricants 


Shell has been a GTL leader for over 30 years 

and we’re investing to deliver even greater 

benefits in the future 

• At forefront of GTL technology for over 30 years 

– Proprietary technology throughout production process 

– Opened Bintulu GTL plant in 1993 

– Building world’s largest GTL plant in Qatar 

• Investing in R&D to reduce CO 2 production 

– Future generations of GTL plants could improve process efficiency. 

• Bringing the benefits of GTL Fuel to our customers 

– Shell fuel containing GTL Fuel available at ~4900 service stations in Europe and Asia 

– Winning technical partnership with Audi 


GTL Properties and Benefits 

Excellent properties: 

� Colourless, clean burning 

� High cetane number, virtually sulphur-free 

� Reduces local pollution even compared to 

so-called “sulphur-free” diesel 

� Convenient and easy to use 

Synthetic fuel Refinery diesel 

Cetane number 75-80 48-56 

Synthetic fuel enables development of 

dedicated engines: 

� Reduced emissions 

� Lower fuel consumption 

� Better driveability 

� Less noise 


Gas to Liquid – Applications 


GTL Diesel for Road Transportation 

London 

Bus trial with Daimler-Chrysler 

USA 

Dept. of Transport 

Yosemite Water 

USA & France 

Audi Le Mans racing 

100% GTL Fuel 

Diesel/ 

GTL Fuel blend 

London 

Toyota trial 

Germany 

Fleet trial with Volkswagen 

3,000 Retail sites 

across Europe 

Qatar 

Buses for Asian Games 

Greece 

Shell Diesel 2004 

Thailand 

Shell Pura Diesel 

China 

Michelin Bibendum Challenge 


Japan 

Heavy Duty truck fleet trial 

Japan 

Aichi GTL-hybrid bus 

China 

Bus trial Shanghai

GTL Kerosene for Aviation 

Synthetic jet fuel agreement signing ceremony Successful trial on 1 st Feb 08 of GTL kerosene as fuel for A380 

• Better engine performance, longer engine life, more energy per kg, air quality improvement 

• Agreement signed with industry leaders on 13 th Nov 07 to research the benefits in engines 

• Used on 1 st Feb 08 to fuel one engine of an A 380 flight from Filton to Toulouse 


GTL Gasoil for Marine 

Marine Auxiliary engine 

Benefit (%) 

80 

60 

40 

20 

0 

Indicative GTL emissions benefit 

over conventional marine gasoil 

NOx SOx 

Emission type 

PM 

� GTL leads to significant reduction in key local 

emissions 

� Improved toxicity and biodegradability also a 

benefit in sensitive marine environments 


Source: Shell

GTL Base Oils for high quality lubricants 

5W-40 

� Shell’s GTL plant will be the largest top-tier plant in the 

world 

� It will produce more than 1 million tpa GTL Base Oils – a 

step change for the Lubricants industry 

� GTL Base Oils enable production of low-viscosity lubricants 

with improved fuel economy 

� Shell will be world’s leading manufacturer of 

Group III base oils 

� Shell is the leading branded finished Lubricants marketer 

� Shell is the only company with commercial GTL Base Oil 

experience 


Gas to Liquid – Marine 


GTL for the Marine Industry 

Pollution levels across Europe � GTL Fuels deliver a reduction in NOx, SOx 

Source: CAFE study, 2000 

and PM 

� GTL Fuels and Lubricants are more efficient 

� Limited supply of GTL Fuels so need to use 

where most beneficial 

� Environmentally sensitive areas 

� Megacities 

� Drilling fluids 

� GTL Fuels provide the opportunity for further 

improvements in energy efficiency and 

emission reduction 


Shaping a sustainable future 

• Cooperation between government, industry, 

NGOs and academia focused on: 

� Prioritization of energy options, including R&D 

based on rigorous cost effectiveness analysis 

� Energy efficiency/conservation and the 

environment 

Sustainable Propulsion Project 

• Raise public and industry awareness 

around the world on “intelligent use of 

energy” – a shift in mindset. 

• Cities as the driving force of quicker and 

practical actions towards Energy Efficiency 

• (Collective) Leadership – requires a stepchange 

in effectiveness 


Thank you

Shell Gas to Liquid (GTL): Technology to help the Marine Industry

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