Sasol Confirms Progress on Louisiana Gas-to-Liquid Project

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--South Africa's energy and petrochemicals group Sasol Limited (NYSE:SSL) (Johannesburg, South Africa) has confirmed that it is proceeding with a feasibility study for a 2 million- to 4 million-ton-per-year gas-to-liquid plant in Louisiana. Depending on the capacity, the plant could yield a daily production of 48,000 to 96,000 barrels per day of fuel.

The pre-feasibility study has been completed and the current study will evaluate the viability of a gas-to-liquid project in Calcasieu Parish, in southwestern Louisiana, during the next 18 months.

"We believe Sasol's proprietary GTL technology can help unlock the potential of Louisiana's clean and abundant natural gas resources and contribute to an affordable, reliable and high quality fuel supply for the United States," said Ernst Oberholster, Sasol's managing director for new business development, at a press conference with Louisiana Governor Bobby Jindal.

He went on to say that gas-to-liquid fuels are important in the energy mix because they can advance energy independence in a way that is both cost-efficient and environmentally friendly. In addition, unlike other proposed alternatives to conventional petroleum-based fuels, gas-to-liquid fuel is used in existing vehicles and fuel delivery infrastructure without modification.

Earlier in the week, at the release of the company's annual results, Sasol Chief Executive Officer David Constable said that the company was on a good trajectory to make gas acquisitions where timing and costs are right. For related news, see September 14, 2011, article - Sasol Turns Up the Gas in $9 Billion in Spending Through 2013.

The gas-to-liquid project follows an announcement in December 2010 that the company will build the world's first ethylene tetramerization unit in Calcasieu Parish.

Since the company was formed in 1950, Sasol has used its proprietary Fischer-Tropsch technology to produce more than 1.6 billion barrels of liquid fuels and chemicals from coal and natural gas. In 2007, it started the Oryx gas-to-liquid plant, in partnership with Qatar Petroleum, and it is now studying a number of international projects in the sector. Sasol operates in 38 countries and employs about 33,000 people.

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