Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

US technology may transform Karoo

Mar 19 2010 07:29 Francois Williams

Related Articles

SA cars may fill up on gas

Coega moots gas power station

Gas industry's worst year

Sasol seeks gas in Karoo

Sasol to invest in solar power

'SA could be big oil producer'

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

MyCiti buses running at a loss

May 28 2012 07:53

The City of Cape Town has spent R175m running the Myciti bus service since the Soccer World Cup compared to an income of R35m, a report says.

 
Share Share line Print

Cape Town - Deep below the dry soils of the Karoo lies a wealth of natural gas that Sasol and Shell plan to exploit using new technology that has revolutionised the American gas market over the past five years.

Ebbie Haan, the managing director of Sasol Petroleum International, said the clay like shale, which is rich in organic material, has an ability to collect natural gas.

The former South African oil exploration company, Soekor, which today forms part of PetroSA, last did exploration in the Karoo in the 1960s and certainly found gas - but not enough to be regarded as commercially viable.

But mine-development technologies and geoscientists' skills related to rock characteristics have since considerably improved.

In the United States small exploration companies have managed, using innovative techniques like horizontal drilling and the injection of water and sand at exceptionally high pressure, to extract the gas trapped between layers of shale, by introducing cracks through which the gas can rise to the surface.

For Sasol it is important to exploit more natural gas, which produces far less greenhouse gas than the company's carbon-intensive coal-to-fuel process.

Sasol and Eskom - the two single-largest emitters of greenhouse gas in South Africa - are under pressure to reduce their carbon footprint in order to help achieve government's carbon-reduction targets.

Haan says that Sasol, together with the Norwegian Statoil and the American Chesapeake groups, has researched the shale gas potential in the Karoo.

The area over which Sasol will explore for shale gas covers 88 000km² and comprises the largest part of the Free State, the eastern part of the Northern Cape, the north-eastern parts of the Eastern Cape and south-western KwaZulu-Natal.

Other unconventional South African sources of gas on the radar of exploration groups include coal-bed methane in coal deposits such as in the Waterberg, and methane in the Free State goldfields.

- Sake24.com

For business news in Afrikaans, go to Sake24.com.

 
 
Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Sasha

"In the short term this is true, Greece will dominate the headlines on a day to day basis, until their next elections when there would be some clarity to answer the question, "What next for Greece?" Amazingly everyone except the politicians seem to be lining themselves up for worst case scenario, b... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

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

Loading...