Shell GTL Lubricants Supply Chain Map

Shell recently opened a Gas-To-Liquid (GTL) base oil hub in Jebel Ali in the United Arab Emirates (UAE) and made Shell’s first delivery of GTL base oil in late December 2014. Base oil is a key component in finished oils and GTL base oil specifically enables the development of premium oils for engines, as well as in speciality products, including process oils and transformer fluids.

This new facility in Jebel Ali is Shell’s fourth GTL base oil storage hub alongside its existing hubs located in Houston, Hamburg and Hong Kong. The new addition completes the full global reach and coverage of Shell’s supply of GTL base oil. The hub will facilitate the quicker and simpler distribution of GTL base oil to be manufactured into finished products nearer to the end customer.

Product from the hub will be used in Shell Helix Ultra with PurePlus Technology, Shell Risella X, and Shell Diala X for customers in the Middle East and in certain markets beyond such as Egypt, India, Pakistan and South Africa.

Speaking on the new hub, Dennis Cheong, Shell Vice President Supply Chain, said “Shell Lubricants has a strong and dependable global supply chain producing high quality products and providing consistent delivery to our customers: these GTL base oil hubs are an integral part of this. Shell is the only company with a reliable supply of GTL base oil. This new hub accomplishes the full global integration of our transportation and storage of GTL base oil. This is a clear demonstration of where Shell’s integration and innovation add value for Shell’s customers.”

The GTL base oil is made in the Middle East at the Pearl GTL plant in Qatar, a partnership between Qatar Petroleum and Shell. The plant is the world’s largest source of GTL products. Sheikh Thani Al Thani Deputy General Manager for Qatar Shell stated, “GTL products represent a pioneering innovation to increase the supply of highly-demanded liquid hydrocarbons.

They offer significant advantages in many applications as they are virtually sulphur free, colourless and odourless. These attributes of GTL-based products make them very attractive to help meet the growing requirements of consumers and we are extremely proud to be at the leading edge of innovation that produces these and future superior products.”

The decision to create a hub in the UAE demonstrates Shell’s ongoing commitment to the region, and illustrates the growing demand for premium lubricants. Shell is the leading international oil company, providing worldwide access to this latest innovation in motor, transformer and process oils. This is underpinned by Shell’s robust and bespoke supply chain. Shell’s motor oils made from natural gas (Pennzoil Platinum and Shell Helix Ultramade with PurePlus Technology) are now available in over 95 markets around the world, including within the Middle East region.

Enquiries:

Shell Global Media Relations: +44 207 934 5550

Shell Lubricants Global: Mary B. Walsh, +32 2508 9587, mary.walsh@shell.com

Notes to Editors

  • The hub is located on an industrial site in Jebel Ali about 30 Km from Dubai, so it is geographically centred in the region and close to markets with growing demand for finished lubricants. Success in the lubricants business is about being close to the markets and customers.
  • The base oil is shipped from the different GTL base oil hubs to a Shell lubricant oil blending plant where it is blended with advanced additive technology to produce the final product. The Jebel Ali site is well connected with a jetty and road gantry to allow product to arrive from Qatar and be efficiently distributed to Shell’s network of lubricant blending plants in the region.
  • Shell Helix Ultra with PurePlus Technology is a new industry-leading motor oil for passenger cars offering better protection against sludge[1], superior corrosion defence[2] and, ultimately helping to ensure longer engine life. It is the first synthetic motor oil made from natural gas. Shell Helix Ultra with PurePlus Technology is available in most markets in the Middle East including the UAE, Oman, Kuwait, Qatar, Jordan. Lebanon, Bahrain and Egypt.
  • Shell PurePlus Technology produces base oil from natural gas, instead of crude oil. Compared to traditional base oils, this base oil provides a superior molecular structure from which to create Shell Helix Ultra. This base oil helps to: extend engine life, reduce maintenance costs, reduce oil consumption, maintain fuel economy and enable better cleanliness. Fuel economy benefits vary with viscosity grade, but certain products within the Shell Helix Ultra with PurePlus Technology range can deliver an improvement of up to 3% in fuel economy[3].
  • GTL base oil has also been game changing technology in certain specialist applications:
    • Process oils, which are used in a wide variety of chemical and technical industries as a raw material component or as an aid to processing. Shell Risella X, range of products, based on the GTL technology, are characterised by extra purity and excellent performance
    • Shell Diala X a transformer oil, which acts as electrical insulator, is made with GTL base oil thereby enabling it to offer exceptional performance with higher reliability even under high pressure.

[1]Based on Sequence VG sludge test results using 0W-40

[2]Compared with API SN and based on sequence IVA  and sequence VIII engine tests

[3]Based on the M111 FE test compared with the industry reference oil. Fuel economy varies from 1.7% up to 3% depending on the different vehicle types and the applied engine oil (e.g. up to 3% fuel economy with Shell Helix Ultra Professional AF 5W-30).

About Shell Lubricants

The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, mining, power generation and general engineering. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Rotella, Shell Tellus and Shell Rimula.  We are active across the full lubricant supply chain.

We manufacture base oils in eight plants, blend base oils with additives to make lubricants in over 50 plants, distribute, market and sell lubricants in over 100 countries.

We also provide technical and business support to customers. We offer lubricant-related services in addition to our product range.  These include: Shell LubeMatch –the market leading product on-line recommendation tool, Shell LubeAdvisor - helps customers to select the right lubricant through highly trained Shell technical staff as well as online tools, and Shell LubeAnalyst - an early warning system that enables customers to monitor the condition of their equipment and lubricant, helping to save money on maintenance and avoid potential lost business through equipment failure.

Shell’s world-class technology works to deliver value to our customers.  Innovation, product application and technical collaboration are at the heart of Shell lubricants. We have leading lubricants research centres in China, Germany, Japan (in a joint venture with Showa Shell), and the USA.  

We invest significantly in technology and work closely with our customers to develop innovative lubricants. We have a patent portfolio with 150 + patent series for lubricants, base oils and greases; more than 200 scientists and lubricants engineers dedicated to lubricants research and development.

Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption. One of the ways we push the boundaries of lubricant technology is by working closely with top motor racing teams such as Scuderia Ferrari. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.

Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges.  Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal 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 announcement refer to companies in which 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 announcement, 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 ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.

Forward-looking 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.

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There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results;

(e) reserves estimates; (f) loss of market share 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 regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions.

All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2013 (available at www.shell.com/investor and www.sec.gov ).

These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, 14 January 2015. Neither Shell nor any of its subsidiaries nor the Shell Group 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 announcement.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal 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 presentation refer to companies over which Royal Dutch Shell plc  either directly or indirectly has control.

Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this presentation, joint ventures and associates may also be referred to as “equity-accounted investments”.

The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.