First Gas-To-Liquid Product Shipment Reaches America

Houston, TX  (Profitable.com)  Shell Lubricants announced the recent arrival of its first shipment of gas-to-liquid (GTL) base oil at the Port of Houston. The high-quality product, the first from the Qatar-based Pearl GTL plant to reach the Americas, will be stored at a hub in Houston and routed to Shell Lubricants’ GTL-enabled blending facilities throughout the United States.

Shell Lubricants will use Pearl GTL base oil, a high-quality Group III base oil, in the manufacture of its premium motor oils.  Group III base oils are the foundation for formulating next-generation oils that address needs for improved energy efficiency, longer equipment life and reduced maintenance costs.

“The arrival of the first shipment of GTL base oil to the Americas is an extremely exciting event for Shell Lubricants and our customers,” said Lisa Davis, president, Shell Commercial Fuels and Lubricants, Americas.  “This new base oil is another clear example of Shell Lubricants’ commitment to using technology and innovation to meet the growing demand for premium motor oils and to sustain our position as the world’s leading marketer of finished lubricants.”

Pearl GTL, a partnership between Royal Dutch Shell (“Shell”) and Qatar Petroleum, has built the world’s largest gas-to-liquids plant in Ras Laffan Industrial City, Qatar. The plant uses natural gas from Qatar’s North Field to manufacture high-quality base oils and other GTL products. Once the Pearl GTL plant is operating at full capacity, it will be one of the world’s largest sources of lubricant base oils with the capacity to produce about 30,000 barrels per day, enough to fill 225 million cars per year. Shell will be the only oil major capable of meeting all of its Group III base oil needs from internal sources.

Compared to typical base oils, which are refined from crude oil, GTL base oils represent an alternative starting point for the manufacture of finished lubricants. Within the range of commercially available base oils, Group III oils have high viscosity index, low volatility and good low-temperature fluidity and are often used to make synthetic motor oils. Shell GTL base oil usage will be an essentially invisible change to Shell Lubricants’ existing premium formulations, although in some cases lubricants using GTL base oil may appear lighter in color.

About Pearl GTL

Pearl GTL is a partnership between Qatar Petroleum and Royal Dutch Shell launched in July 2006.  Pearl comprises two offshore platforms, 60 km off the Qatar coast connected by pipeline to the largest gas-to-liquids (GTL) plant ever built.  Shell operates the Pearl GTL plant, which was developed under a Development and Production Sharing Agreement with the Government of the State of Qatar.  The plant was brought into production in May 2011 and converts the gas and oxygen to GTL wax. In the last step of the process, the waxes are cracked and distilled into finished GTL products.

To read more about Pearl GTL, please click here.

About Shell Lubricants

The term ‘Shell Lubricants’ collectively refers to the companies of Royal Dutch Shell plc that are engaged in the lubricants business. Shell Lubricants companies lead the lubricants industry, supplying more than 13% of global lubricants volume.(a) The companies manufacture and blend products for use in consumer, heavy industrial and commercial transport applications. The Shell Lubricants portfolio of top-quality brands includes Pennzoil®, Quaker State®, FormulaShell®, Shell TELLUS®, Shell RIMULA®, Shell ROTELLA® T, Shell SPIRAX® and Jiffy Lube®.

(a) Kline & Company, “Global Lubricants Industry 2010: Market Analysis and Assessment.”

Cautionary Note:

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made toRoyal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ”Subsidiaries”, “Shell subsidiaries” and “Shell companies” as used in this press release refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this press release, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

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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 press release that 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, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.