Sasol hires Foster Wheeler for feasibility study of Canada GTL project

22 June 2011 17:03  [Source: ICIS news]

TORONTO (ICIS)--Foster Wheeler will conduct a feasibility study for Sasol’s planned gas-to-liquids (GTL) project in western Canada, the petrochemicals engineering company said on Wednesday.

The project would, if realised, convert shale gas to GTL naphtha, diesel and liquefied petroleum gas (LPG), using Sasol’s GTL technology.

Foster Wheeler said it was awarded a contract by South Africa-based energy and petrochemicals major Sasol, on behalf of a partnership between Sasol and Canada’s Talisman Energy.

Capacity or financial details were not disclosed. However, Foster Wheeler expects to complete its work in the fourth quarter of 2011.

The company said it will also develop a cost estimate to allow Sasol and Talisman Energy to assess the economic viability of the planned facility, with a project decision expected in the second half of 2012.

Foster Wheeler said GTL is one alternative for energy companies to monetise North American shale gas resources as they seek to take advantage of the “price dislocation” between gas and oil products.

Earlier this month, Sasol completed a second shale gas acquisition in Canada, where it bought a 50% stake in resources held by Talisman Energy.

For more on Sasol and other producers, visit ICIS company intelligence

By: Stefan Baumgarten
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