BINTULU: The launch of the Shell Middle Distillate Synthesis (MDS)’s US$150 million R&D demonstration project on Oct 10 in Tanjung Kidurong here shows Shell’s commitment to developing its leading position in the gas-to-liquid (GTL) technology.

Revealing this, Shell’s Global Solutions International’s Gasification and Synthesis Technology Development manager HP Calis said the construction, started some three years ago, is 99 per cent complete and should be able to commission before yearend.

“This is evidenced by our total annual R&D expenditure of around US$1.2 billion last year, by far the highest among the oil and gas majors,” he said.

It was also evidenced by the output of the R&D process namely the number of patent filings.

“Here we score more than 50 per cent higher than the average of our peers in the gas and oil industry. I am confident that the two demonstration facilities will be contributing to this strong track record,” continued Calis, who is based at the plant in the Netherlands.

Calis was speaking at the projects’ launch which also saw Shell Malaysia Gas and Power vice-president Dick Benschop address the floor, witnessed by Resident Dr Razali Abon, Bintulu Development Authority (BDA) general manager Mohidin Ishak, Shell MDS senior staff and affiliates’ contractors.

“I’m very proud that today we can show to our guests the results of three years of hard work by many people,” he said adding that the teams had an excellent safety record during the project.

Calis said like all technology development, the two projects started with sound technical ideas, and the vision that these ideas should be demonstrated so they can be turned into real value by applying them in real-life operations.

“In this case the technical ideas were generated by staff in Shell Global Solutions International – Shell’s technology arm,” added Calis.

“Fortunately the potential of these ideas was recognised from day one by senior management in Shell Gas and Power. I’m honoured that today Renger Bierema, former senior vice-president of technology in Shell Gas and Power, is with us to celebrate the launching ceremony. It is through

his vision and drive that these two projects have received the required business support needed,” he added.

Together with other GTL technology development activities at the site between Shell MDS and Shell Global Solutions International, these demonstration projects would further strengthen the position of Shell MDS Bintulu as a key technology R&D centre for Shell’s GTL technology.

Calis praised the two contractors of Shell for their undivided support to the projects: the JGC Corporation and Zeton.

“JGC has been a long-time partner in Shell’s GTL endeavours from the early days of Shell MDS Bintulu. We are happy that JGC – being a big and reputable party in engineering, procurement, construction and management of complex technology projects – is willing to take on these projects, and I’m honoured that we have JGC representatives as our guests today,” said Calis.