Sasol Synfuels International

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Sasol Synfuels International is a subsidiary of the South African synfuels company Sasol.

On its website, Sasol states that "through Sasol Synfuels International, we pursue international opportunities to commercialise our gas-to-liquids (GTL) and coal-to-liquids (CTL) technology. In partnership with Qatar Petroleum, we started our first international GTL venture, Oryx GTL, in Qatar, in 2007 and we are developing a GTL plant in Nigeria with Chevron and the Nigerian National Petroleum Corporation."[1]

Orissa project, India

In March 2009 the Indian government announced that it had awarded the north Arkhapal coal block in Orissa to Strategic Energy Technology Systems Ltd, a 50:50 joint venture between the Tata Group and Sasol Synfuels International, the international synfuels subsidiary of Sasol. It is projected that the plant would produce 80,000 barrels of crude oil a day.[2]

In early 2010 Orissa's Chief minister Naveen Patnaik told reporters that "though we have not identified the location, the proposed plant will be somewhere in the state." It was also reported that the coal would come from the Srirampur area in Talcher. The Business Standard also stated that the project "requires 3,000 acre of land for its main plant, additional land would be required for setting up coal mines, benefication plants, coal handling plants, water reservoirs, power plants and a township" and would involved the establishment of a 1600 megawatt power station. The newspaper also reported that the joint venture was "yet to make a formal application" for the plant the company was pressing the state government "to provide adequate facilities for early commissioning of the project."[3]

In June 2010 the companies stated that the proposed project would cost $10 billion.[4] The allocation of the coal rights for the project was first announced in March 2009.[5]

Projects in China

In its 2009 annual report Sasol reported that in October 2008 SSI launched a feasibility study with the Shenhua Group and that "we appointed Foster Wheeler International Corporation and Wuhuan Engineering Company to carry out the study for an 80 000 b/d CTL plant at the Ningdong Energy and Chemicals Base in the Ningxia Hui Autonomous Region. There has been good progress since then and we look forward to the results of the feasibility study in 2010."[6]

Indonesia

In December 2009 Sasol signed a memorandum of understanding (MOU) with Indonesia to investigate an an 80,000 barrel-a-day coal-to-fuel plant.[5] In a media release Sasol states that the MOU, which was signed in London by Gita Wirjawan, the chairman of the Investment Coordination Board of the Republic of Indonesia, relates to a "screening study into the viability of an integrated Coal-to-Liquids (CTL)". However, Sasol does not mention the possible location for the project. However, it states that "Indonesia's wealth of stranded coal resources, coupled with the country's strategic drive for enhanced energy security are two vital components that favourably contribute to Indonesia being an ideal location for a CTL facility. "[7]

A later news story reported that Sasol was in discussions with PT Bumi Resources and state-owned oil firm PT Pertamina. "Indonesian officials said the liquefaction plants would operate on low-priced lignite, ensuring profitability for as long as crude oil prices exceed $35 per barrel," the Mail & Guardian online reported.[8] A Bloomberg story on the other hand reported that Bukin Daulay, the head of coal and mineral research at the Ministry of Energy, "may buy coal from PT Darma Henwa, an Indonesian coal mining contractor" with the output for sale to Pertamina.[9]

In May 2010 Wirjawan stated that Sasol was expected to complete its feasibility study "in September 2010" and that the company "will decide whether or not to invest here two months later."[10]

Articles and Resources

Sources

  1. Sasol, "Business overview", Sasol website, accessed June 2010.
  2. "Tatas, Jindals win coal-to-oil crowns", The Telegraph, March 3, 2009.
  3. "Tata Steel-Sasol to set up CTL plant in Orissa", Business Standard, January 18, 2010.
  4. "Sasol-Tata Steel JV aims to produce 80,000 bpd by 2018", Business Standard, June 02, 2010.
  5. 5.0 5.1 "Sasol-Tata to invest $10bn in coal to motor fuel", Bloomberg, June 3, 2010.
  6. Sasol, Sasol 200 Annual Review", page 50.
  7. "Sasol Signs Memorandum of Understanding With the Indonesian Government", Media Release, December 3, 2009.
  8. "Sasol eyes $10bn investment in Indonesia", Mail & Guardian, January 9 2009.
  9. Bambang Djanuarto, "Sasol May Invest $10 Billion in Indonesia Fuel Deal", Bloomberg, January 12, 2010.
  10. "Sasol expected to invest in RI after Sept", Antara, May 25, 2010.

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