Sasol reconsiders projects

Johannesburg - Sasol is reviewing its investment portfolio in light of the global economic crisis, but its balance sheet remains strong for future growth, it said on Wednesday.

Chief Executive Pat Davies said the company was closely following the oil price and currency fluctuations to determine future investments.

"Everyone is reviewing projects, we must review as well," he told Reuters on the sidelines of the launch of its sustainable development report.

"Because we follow very conservative, sustainable financial policies, we are in a very strong position...and are quite confident that we can continue to do investments for growth."

He gave no further details.

Davies also said a €318.2m fine imposed by the European Commission for Sasol's part in fixing paraffin wax prices would not affect any of its projects.

Sasol Executive Director Benny Mokaba, who also serves as the head of the company's South African energy cluster, said a plan to build a coal-to-liquids plant with a capacity of 80 000 barrel per day were proceeding as planned.

"We are in the pre-feasibility stage and we are seeing a good progress in it," he said, adding the plant - called the Mafutha project - was on track to come on stream in 2017.

Mokaba said he did not see the current economic climate impacting on the investment.

"At this time we are not overreacting ... the first phase is not capital intensive, so for the short to medium term we don't see any serious changes to the plan," he said.

Sasol is the world's leader in commercialising gas-to-liquid technology, which converts natural gas to liquid fuels. It is also the world's biggest producer of motor fuels from coal.

- Reuters