Sasol, Talisman begin feasibility study on Canada GTL project

14 June 2011 15:08  [Source: ICIS news]

TORONTO (ICIS)--Sasol and partner Talisman have begun a feasibility study on a gas-to-liquids (GTL) plant in western Canada, Sasol chief financial officer Christine Ramon said on Tuesday.

The project would, if realised, be part of Sasol’s “GTL growth strategy,” Ramon said.

The South African energy and petrochemicals major recently completed a second shale gas acquisition in Canada, where it bought a 50% stake in projects held by Canadian energy firm Talisman.

Meanwhile, Sasol, along with and partners PETRONAS and Uzbekneftegaz, is about to complete a feasibility study for a 38,000 bbl/day GTL project in Uzbekistan.

Sasol expects to make a decision on the next phase of that project in the second half of 2011, Ramon said.

In Qatar, Sasol’s Oryx GTL facility is running at close to its 32,000 bbl/day nameplate capacity following completion of de-bottlenecking, she said.

In Iran, the company’s Arya Sasol Polymers joint venture expects to ramp up its cracker to design capacity until the end of the year following completion of work on the facility’s demethaniser, Ramon said.

Sasol’s chemical business - driven by sales volumes and widening margins - is contributing almost one third of the group’s overall operating profit, Ramon said.

Ramon added that polymer prices, when compared with oil prices, still appear to trade below industry trends.

“We do, however, anticipate an improvement in global polymer capacity utilisation from 2012, when we expect the rate of increase in demand for polymers to start to overtake the rate at which new capacity is coming on stream,” she said.

This development, which should support polymer prices, is dependent on there being no “double dip” in global GDP, Ramon said.

For more on Sasol and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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