Operations at Qatar's Oryx gas-to-liquids (GTL) project look set to be held back to early 2007 as a result of technical problems at the facility, the largest outside South Africa to date, built by Sasol and Qatar Petroleum. The plant had originally been due to come onstream in May-June, and then by the end of the year (see Qatar: 12 September 2006: Sasol Records Major Profit Lift; Qatar Ops Uncertain). Sasol said that the problems were caused by a "super heater" at the plant, which has an installed capacity of 34,000 b/d of clean fuels.
Significance: The technical problems at Oryx are a real eye-opener for other GTL developers, demonstrating that even the best-laid plans are subject to change in this emerging industry. The setback follows the successful start-up of the plant in June, to time and to budget (see Qatar: 7 June 2006: Oryx GTL Comes Onstream in Qatar; Questions Remain over Next Steps). With revenues now delayed until 2007, the costs will undoubtedly increase and the benefits get put back, affecting Sasol's 2007 figures, although cheap feedstock and high world oil prices will continue to make it a viable venture in the longer-term.