Well that IBD article wasn't too enlightening, but this release really ups the ante for global GTL. One question.....why do you think that Chevron went with a iron-based GTL technology (Sasol) for their natural gas venture rather than the supposedly more efficient cobalt-based GTL technology (SYNM, OILS)? Any thoughts JM or others?
Chevron and Sasol Pursue Global Gas-to-Liquids Joint Venture
JOHANNESBURG, South Africa, June 9 /PRNewswire/ -- In a ceremony today, Chevron and Sasol signed an agreement to create a new global joint venture founded on gas-to-liquids (GTL) technology, one of the most promising prospects for clean fuels development in the 21st century.
Richard Matzke, president of Chevron Overseas Petroleum Inc. and a director of Chevron Corp., and Pieter Cox, managing director and chief executive officer of Sasol Limited signed the Memorandum of Understanding on behalf of the two companies.
''Gas-to-liquids technology is so promising that its development could create an entire paradigm shift throughout the petroleum industry and reflects Chevron's strategy to grow our international business,'' said Matzke. ''There are trillions of cubic feet of natural gas throughout the world, isolated from the traditional gas infrastructure and thus considered geographically too distant for economical development. We believe application of GTL technology will become the preferred method to commercialize such natural gas resources.
''The advent of the 21st century will see expanded capability to profitably convert natural gas into environmentally superior fuels, including no-sulfur diesel and naphtha products,'' said Matzke, noting that demand for these fuels will only increase in the future.
''We are optimistic that the new global partnership will also contribute to the realization of our first GTL joint venture project in Nigeria,'' said Matzke, referring to a proposal announced in April, 1998, in which Chevron and Sasol outlined plans to build a GTL products plant in Nigeria.
Design and engineering continue on the GTL facility, which will be capable of converting natural gas into synthetic crude oil for further processing into commercial products -- principally high-quality diesel and naphtha. The initial feasibility study has since been expanded to increase target production from 20,000 to 30,000 barrels per day. The plant is expected to come on stream in 2003.
''Equally important, this alliance has the potential to deliver market-based, economic solutions to reduce the need to routinely flare associated gas, creating what we see as a win/win/win situation,'' Matzke said.
The global joint venture would build on the foundation laid by Sasol, a leader in state-of-the-art Fischer-Tropsch technology and a company immersed in the advanced stages of feasibility studies for several GTL projects. The joint venture would utilize proprietary technologies of both companies -- Chevron's ISOCRACKING(TM) and Sasol's Slurry Phase Distillate Process -- and draw on the technical strengths each company brings to international upstream gas development and the production and marketing of GTL fuels. The alliance will not only take advantage of opportunities offered by each partner, but will also provide innovative GTL solutions for commercializing gas in worldwide applications. The experience and technology of both companies will contribute to reduced development costs and accelerate the use of GTL technology worldwide.
''We are excited about the myriad of opportunities made possible via a global arrangement with Chevron,'' said Cox. ''There are numerous synergies between Sasol and Chevron that will enable the alliance to accelerate implementation of GTL ventures, and we are confident this joint venture will further strengthen Sasol's position as a leader in GTL technology,'' he added. |
