Sasol moves to full study of GTL and chemicals project in US

12 September 2011 16:35  [Source: ICIS news]

LONDON (ICIS)--Sasol will undertake a full feasibility study on a gas to liquids (GTL) and associated chemicals project at its Lake Charles site in Louisiana, US, CEO David Constable said on Monday.

The GTL project has moved on rapidly from the pre-feasibility stage. Chemicals production from the liquids stream from gas conversion could include waxes and paraffins, the South Africa-based company said.

The project would tap into increased availability of gas from shale deposits in the US and help the company monetise gas values in an expected relatively low gas price environment.

Constable said that Sasol had other GTL projects in the idea-and-concept stage to tap into greater shale-gas availability.

Sasol acquired a 50% stake in the Farrell Creek shale gas assets in British Columbia, Canada, of Canadian-headquartered oil and gas company Talisman Energy in December last year and has been looking at a GTL project in western Canada.

The decision to move to front end engineering and design (FEED) for its GTL project in Uzbekistan is exepcted shortly, and dependent on certain commercial conditions, Sasol said.

Constable added, however, that Sasol was no longer pursuing its proposed coal to liquids (CTL) project in China with local coal major Shenhua following the extensive delay in obtaining government approval.

Sasol said it was pursuing other CTL opportunities in South Africa and abroad while it “remained committed” to growing its other businesses in China.

The pre-feasibility study for its CTL project in India had largely been concluded, it added. A drilling programme is being undertaken to verify the coal assumptions.

Sasol will build the world’s first commercial ethylene tetramerisation unit at Lake Charles. It will be capable of producing 100,000 tonnes/year of combined 1-octene and 1-hexene through the conversion of ethylene using the company’s proprietary technology.

For more on Sasol see ICIS company intelligence

By: Nigel Davis
+44 20 8652 3214

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