Sasol-Talisman Partnership Awards Gas-to-Liquids Feasibility Study to Foster Wheeler

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--A partnership of Sasol Limited (NYSE:SSL) (Johannesburg) and Talisman Energy Incorporated (NYSE:TLM) (Calgary, Alberta) has made a significant step forward in a planned gas-to-liquids (GTL) project in British Columbia. The partnership has awarded a subsidiary of Foster Wheeler (NASDAQ:FWLT) (Geneva, Switzeralnd) the contract to conduct a technical feasibility study, to be completed in the fourth quarter of 2011, for the GTL project.

In addition to the feasibility study for a plant to convert shale gas to GTL naphtha, diesel and liquefied petroleum gas using Sasol's proprietary technology, Foster Wheeler will also develop a cost estimate to allow the joint venture partners to assess the economic viability of the planned facility, with a decision expected in the second half of 2012.

Sasol has considered a number of sites for the project and is discussing a fast-track approach with provincial bodies with a view to developing the project in the Charlie Lake area. Sasol has invested more than $2.2 billion in Talisman's Cypress A and Farrell Creek shale gas assets in the past 12 months and is assessing the prospects for a 96,000-barrel-per-day (BBL/d) plant after the initial base case of a 48,000-BBL/d plant.

For related story see March 10, 2011, article - Sasol's Shale Gas Stake with Canada's Talisman Energy is Part of Gas Price Strategy.

Foster Wheeler interim CEO Umberto della Sala said: "There is strong interest in examining monetization alternatives for the significant North American shale gas resources, including conversion into liquid transportation products to take advantage of the price dislocation between gas and oil products." For additional information on this subject, see June 21, 2011, article - International Energy Agency Reports Increasing Divergence of Oil and Gas Markets.

View Project Report - 300037816

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.