Shell announced on October 8 that the Pearl gas-to-liquids (GTL) plant has partially restarted after a six-month shutdown caused by damage. The move will allow the company to build limited inventories, but product shipments remain subject to regional security conditions, especially passage through the Strait of Hormuz.
Several market traders said QatarEnergy has issued a spot tender to sell up to 50,000 tonnes of naphtha on a free-on-board (FOB) basis, covering four grades, including Pearl GTL naphtha, with loading at Ras Laffan Port in the Strait of Hormuz and shipment dates set for October 20-25.
A previous tender also included the Pearl GTL grade and was concluded at $150 below Middle East FOB quotes. In addition to the spot tender, QatarEnergy has resumed sending contractual naphtha volumes to some buyers. An executive at India's Haldia Petrochemicals confirmed that the company has received a 50,000-tonne supply allocation for this quarter.
The Pearl GTL plant is located in Ras Laffan Industrial City, Qatar. It is fed by Qatar's North Field and has a full-capacity output of 140,000 barrels of oil equivalent per day. In addition to naphtha, its products also supply Shell's downstream lubricants business. The plant was attacked during the U.S.-Iran conflict in March this year, and one of its two production trains was damaged. Shell estimated at the time that full repairs would take about one year. Repairs to the damaged Train 2 are currently expected to be completed in the first quarter of 2027.
The return of Qatari supply means an additional procurement option. Pearl GTL naphtha is a high-quality feedstock with low sulfur and high paraffin content, suitable for use as ethylene cracking feedstock. During the previous six-month supply disruption, Asian buyers turned to other Middle Eastern sources or the spot market to replenish supplies. With QatarEnergy resuming contractual supply and spot tenders, supply tightness in the Asian naphtha market is expected to ease.
