UpdateSasol is not seeking new partner for Canada GTL project

28 June 2012 21:33  [Source: ICIS news]

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LONDON (ICIS)--South Africa based Sasol is not seeking a new partner for its proposed gas-to-liquids (GTL) project in western Canada, an executive said on Thursday.

If Sasol decides to proceed with the next stage of the project, extensive front end engineering design (FEED) could take 21 months and cost upwards of $100m (€80m), Sasol Canada president, Nereus Joubert, told ICIS.

Sasol has the balance sheet capability to proceed with this strategic project, he said, and is not seeking another partner.

Sasol's upstream agreements with Talisman would cover the gas needs for the plant, but there is sufficient natural gas in North America to support both natural gas liquids (NGLs) export and other forms of gas use, such as GTL, he suggested.

Sasol is looking at several sites in Alberta for the plant.

Earlier, Talisman said it has decided not to proceed with the joint venture gas-to-liquids (GTL) project with Sasol.

Talisman said it made the decision after a feasibility study of the GTL project in western Canada. Talisman would instead invest in other projects, it said.

Sasol acknowledged Talisman’s decision and said it will soon finalise its assessment of the feasibility study, with a final decision on whether or not to proceed with the project expected in the second half of 2012.

Sasol added that a feasibility study for a possible GTL plant in Louisiana was progressing well, with a decision on whether to proceed also expected to be made in the second half of 2012.

Meanwhile, Sasol continues work on a feasibility study for a cracker in Louisiana. The company expects to decide next year whether to proceed to the front end engineering and design phase of that project, it said.

Additional reporting by Stefan Baumgarten

($1 = €0.80)

By: Nigel Davis
+44 20 8652 3214

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