Prefeasibility study completed for Oz GTL plant - Sasol
Global joint-venture company Sasol Chevron and Chevron Australia have completed a joint pre-feasibility study for a gas-to-liquids (GTL) facility in Australia, South African petroleum company Sasol said this week.
In answer to emailed questions, company spokesperson Johann van Rheede said that Sasol Chevron would engage with Chevron Australia to agree on progressing with a feasibility study for this project.
Australia has abundant natural gas reserves, mainly off the shores of the northwestern part of the country.
Proven reserves equalled nearly 90-trillion cubic feet and exploration was continuing, with this figure expected to increase as sub-economic resources were developed, green-technology group Carbon Sequestration Leadership Forum's website said.
Sasol has also, in association with two large US energy companies, completed pre-feasibility studies into possible coal-to-liquids (CTL) plants in the country, undertaken after the passing of the US Energy Policy Act of 2005, which aims to combat growing energy problems.
“A decision to progress to a full feasibility study is expected during the first half of 2007,” Van Rheede said.
Sasol has improved the German Fischer-Tropsch process, which uses natural resources including as coal and natural gas to produce fuel for motor vehicles.
Meanwhile, Sasol and its Chinese partners were reviewing two coal-rich sites on which to develop CTL plants in that country, one in Shaanxi Province, at a site about 650 km west of Beijing; and another in Ningxia Hui Autonomous Region, at a site about 1 000 km west of Beijing.
“We have already established at Beijing a CTL project office with an initial complement of 10 specialists,” Van Rheede reported.
Working in partnership with the National Development Reform Commission of China and two potential joint venture partners, Shenhua Corporation and Shenhua Ningxia Coal Limited, Sasol recently completed the pre-feasibility studies for these CTL plants. The outcome of these pre-feasibility studies conducted during 2005 and 2006 was favourable.
Agreements were signed in Cape Town in June 2006 for the potential development of two CTL plants in China. In terms of these agreements Sasol and its partners would complete feasibility studies during 2008.
“Four comprehensive feasibility studies will be based on two CTL plants, each with an 80 000 bpd capacity. Should the investment decision be made to proceed, the plants could be brought into operation as early as 2012/13,” Van Rheede sated.
The estimated capital cost for each plant is currently some $5-billion to $6-billion.
Meanwhile, Sasol was also involved in “early-stage investigation of potential CTL projects in India”.
“We have initiated engagement with key stakeholders to evaluate the potential for a CTL project in India. This has resulted in the decision to open a representative office, likely in Mumbai, with an initial complement of six specialists,” said Van Rheede.
engineeringnews.co.za
Published: 2007/01/26
Author: Matthew Hill
Portfolio: Online Staff Writer
E-mail: newsdesk@engineeringnews.co.za |
