Sasol and Shenhua define CTL feasibility study

28 August 2008 18:46  [Source: ICIS news]

JOHANNESBURG (ICIS news)--Sasol and Chinese coal producer Shenhua will focus on a feasibility study for an 80,000 bbl/day coal-to-liquids (CTL) plant in the Ningxia Hui Autonomous Region, the companies said on Thursday.

As the world's top producer and consumer of coal, China is seeking to reduce its dependence on imported oil.

The decision to focus on the Ningxia project means that a second feasibility study in Shaanxi province will not proceed at this stage.

“I believe that it is the right decision to focus all our attention and resources on ensuring the planning and construction of a world scale 80,000 barrel per day, fully integrated CTL plant in the Ningxia Hui Autonomous Region,” Pat Davies, CEO of Sasol said.

Significant work has already been completed in preparing the site of the proposed project in northwest China. It will cost between $5bn-$7bn (€3.4bn-€4.8bn) to develop.

The plant will be able to produce an annual 3.4m tonnes of diesel, naphtha, liquefied petroleum gas and jet fuel.


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By: Mark Allix
+44 20 8652 3214

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