• SA cities need foreigners

    We need to protect our cities' cosmopolitan nature, says Mzwandile Jacks.

  • Am I a racist?

    Does hating government's arrogance, nepotism and greed make me a bigot, asks Anton Ressel.

  • Recipe for disaster

    Malema's flames of frustration are fuelling white extremism, says Leopold Scholtz.

Loading...
See More

Sasol closer to major Canadian plant

Sep 14 2012 07:42 Reuters

Company Data

Sasol Limited [JSE:SOL]

Last traded 467
Change -11
% Change -2
Cumulative volume 1706832
Market cap 0

Last Updated: 17-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Sasol jumps on fracking nod

Tax Sasol or nationalise it - SACP

Sasol up, tracks oil price

Talisman opts out of Sasol joint venture

Sasol signs power plant agreement

Sasol upbeat after profit spike

 

Calgary - Sasol [JSE:SOL] is a step closer to building Canada's first multibillion-dollar plant to convert cheap natural gas to diesel and other fuels after the South African company signed an option on an industrial property near Edmonton, Alberta.

Sasol, a new entrant into the Canadian energy sector, has secured a site in Fort Saskatchewan, Alberta, drawn by the region's extensive infrastructure for both natural gas and refined products, Rudi Heydenrich, president of new business development for Sasol Canada, said on Thursday.

Total SA had previously planned to build an oil sands upgrader on the property, which is in a region known as the Industrial Heartland.

The gas-to-liquids operation, which would ultimately have a capacity of 96,000 barrels a day, would be a welcome and sizable new customer for Canadian gas producers whose finances are under pressure from weak North American prices due to booming shale supplies that have flooded the continent.

Such a plant would use about 1 billion cubic feet a day of gas, about 8% of Alberta's current gas output.

Analysts have pegged the cost of a plant as high as C$10bn ($10.3bn), though Heydenrich said Sasol has not yet advanced the plan to the point where it could estimate costs.

It has just completed the feasibility study and is now beginning front-end engineering design for the plant, which would likely have an initial capacity of 48,000 bpd. Following that, the company would make a go-ahead decision and the facility could be in service around the end of the decade.

Profitability for a GTL operation is based on a wide spread between crude oil and natural gas prices, rather than a ceiling price for gas, Heydenrich said.

"One of the big advantages in North America is what we perceive to be structural disconnect between gas and oil (prices), and we sell our products, which are oil-related," he said.

Sasol entered Canada in 2011 by buying a 50% working interest in Talisman Energy's gas-rich Montney shale holdings in northeastern British Columbia for $2bn.

The companies had studied the GTL idea together before Talisman opted out of the planning in June. They remain partners in Montney exploration and production.

Talisman has said it may now develop its gas assets with a view to ship supplies to Canada's West Coast, where several companies are planning liquefied natural gas plants aimed at exports to Asia.


* Follow Fin24 on TwitterFacebookGoogle+ and Pinterest

 
sasol

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!

 
 

Luxury living

Exciting new luxury SUV arrives in SA!
WIN!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Government’s call for the private sector to add power to the grid is:

Previous results · Suggest a vote

Loading...