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Gold/Mining/Energy : Gasification Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (1620)	6/9/2011 8:56:17 AM
From: Dennis Roth	Respond to of 1740

Credit Suisse initiates coverage of Sasol with an Outperform rating and a target price of ZAR457 Sasol Limited (SOLJ.J) (SSL - NYSE) INITIATION A potential play on gas/oil price disparity 32 pages, 34 figures Download Link: sendspace.com first page: We initiate coverage of Sasol with an Outperform rating and a target price of ZAR457, 32% above the current share price. We believe Sasol represents a strong combination of short- and long-term opportunities. Investment case: Sasol looks well positioned to leverage the price difference between low gas prices in the US (which we believe is sustainable) and high oil prices through its proprietary gas-to-liquids (GTL) technology. We believe the announced acquisition of shale gas assets in Canada and a potential joint venture with Talisman Energy to build a GTL plant in Canada should pave the way for a successful introduction of Sasol’s technology to North America. Longer term, we believe a successful exploration of shale gas opportunities in South Africa, whose recoverable shale gas reserves are estimated by the US Department of Energy at 485tcf, is key. Sasol’s GTL technology is, in our view, the easiest way to monetise these assets at the company’s existing facility. Furthermore, Sasol’s shares have underperformed Brent by 20% YTD, and with a 92% historical correlation over the past five years between Sasol’s share price and oil prices, we believe this creates scope for possible short- term arbitrage. Catalysts: News on the progress of the feasibility study for a GTL plant in Canada and first results of the shale gas exploration in South Africa. Valuation: Our DCF-derived TP of ZAR457 is based on a WACC of 11% and a terminal growth rate of 2%. Our TP suggests 32% upside potential from current levels. At our TP, Sasol would be trading at 10x 2012E earnings, which we believe is fair in the current oil price environment. We are 10% above consensus 2011E EPS and 15% above 2012E consensus EPS. ==== Disclosure: I've been long SSL for a long time.

To: Dennis Roth who wrote (1620)	6/30/2011 2:00:33 PM
From: Dennis Roth	Respond to of 1740

Multibillion-dollar plant for B.C. shale gas proposed Talisman Energy and South Africa's Sasol launch feasibility study vancouversun.com By Gordon Hamilton, Vancouver Sun June 30, 2011 South African energy giant Sasol and Talisman Energy have launched a feasibility study into a proposed natural gas-to-liquids plant in Western Canada that could have a price tag as high as $10 billion. The technical study, to be done by global energy engineering firm Foster Wheeler, is to determine the actual cost and the location of a plant to unlock the value of the 44 trillion cubic feet of shale gas deposits in the partners' northeastern B.C. assets, said Talisman spokeswoman Phoebe Buckland. Talisman has already held talks with the B.C. government on the proposed plant, the B.C. energy and mines ministry confirmed Wednesday. "It's a big project," Buckland said, "All those sorts of conversations around where is most attractive to build the plant, what makes sense from a labour force and skilled workers point of view, will be worked out through the feasibility study." Buckland described the project as "very early days," but confirmed that work is underway on it. The plant would likely be close to the gas deposits, Buckland said. A decision on the planned facility is expected in the second half of 2012. Besides the gas-to-liquids joint venture, the two companies are 50/50 partners in two shale gas assets in B.C.'s Montney basin near Dawson Creek. They are considering two options for the gas-to-liquids plant: a smaller one producing 48,000 barrels of fuel a day at a cost of $3 billion to $5 billion and a larger plant, producing 96,000 barrels a day for $6 billion to $10 billion. The B.C. energy ministry has confirmed that it has held talks with Talisman on locating the facility in this province. Energy and Mines Minister Rich Coleman was not available Wednesday to comment on the Talisman-Sasol proposal but in an email response to The Sun, a ministry spokesman said a gasto-liquids (GTL) plant would be a boon to the B.C. economy. "To date there have been some informal conversations between B.C. and Talisman regarding a GTL facility in B.C.," the spokesman said. "B.C. is an excellent business location and a GTL facility would be of great interest because it would add value to our abundant natural gas reserves." Sasol is a world leader in converting coal and natural gas to liquid fuels -synthetic fuels that can replace conventional fuels. The proposed plant would convert natural gas to products like naphtha, diesel and liquefied petroleum using Sasol's gas-to-liquids technology. Sasol became involved in B.C. when it paid $1.05 billion in March for a 50-per-cent stake in Talisman Energy's Farrell Creek shale gas assets and on June 10 completed a second deal worth $1.03 billion for a 50-per-cent stake in Talisman's Cypress A gas assets. Both are in the Montney basin. The sheer size of the shale gas reserves in B.C. requires domestic companies like Talisman to seek out joint venture partners. Sasol was brought in to "help us to unlock the upstream value that's held in the Montney assets," Buckland said. "We are looking at an estimated 44 trillion cubic feet of net contingent resource there." Natural gas prices have plummeted in the last few years with the development of shale gas, which is locked as tiny bubbles in shale formations. It is collected by using water pressure to fracture the shale. The gas then migrates to collection points. Shale gas deposits are found throughout North America and have turned natural gas from a domestic resource into a global commodity. The overflowing supplies have forced prices down domestically. Prices are now hovering at $4.20 per million British thermal units, down from $13 in mid-2008. The price in Asia is significantly higher, averaging $11.60 per million BTUs in May. Besides the Sasol-Talisman GTL proposal, there are at least three separate plans by other companies with a stake in B.C. shale gas to build liquid natural gas terminals on the West Coast to develop markets in Asian economies. By converting natural gas into transportation fuels like diesel and jet fuel, the value of natural gas would be more inclined to track oil prices. Gas-to-liquids technology was first developed in Germany in the 1920s and was used by the Germans during the Second World War to convert coal to synthetic fuel. Sasol is the global leader in gas-to-liquids technology, but other energy companies are entering the field. Royal Dutch Shell just completed construction of a gas-to-liquids plant in Qatar at a cost of $19 billion. ghamilton@vancouversun.com © Copyright (c) The Vancouver Sun

To: Dennis Roth who wrote (1620)	9/15/2011 8:45:10 AM
From: Dennis Roth	Read Replies (2) \| Respond to of 1740

Sasol moves ahead with new Louisiana gas-to-liquids study engineeringnews.co.za By: Terence Creamer 13th September 2011 South African energy and chemicals group Sasol has pulled the trigger on another North American gas-to-liquids (GTL) feasibility study – this time for a two-million to four-million-ton-a-year (48 000 bl/d to 96 000 bl/d) facility in the US state of Louisiana. The JSE-listed group is already studying the development of a GTL facility for either Alberta or British Columbia, in Canada, where it and its partner Talisman Energy hope to convert shale gas produced at their Farrel Creek joint venture, in the Montney basin, of British Columbia. The Canada GTL feasibility study began six months ago. It is also in the advanced stages of commercial negotiations, together with its partner Petronas, on the development of a GTL facility in Uzbekistan. The South African group, which has proprietary technology capable of converting coal and natural gas into fuel and chemicals, recently spent R14.2-billion acquiring 50% of Farrel Creek, as well as half of Talisman’s Cypress A shale gas assets. New CEO David Constable has reported that Sasol is receiving regular enquiries to partner with others in exploiting what is currently a growing arbitrage opportunity between the price of gas and oil. The opportunity has arisen as a result of the discovery of unconventional resources such as shale gas, which Sasol estimates could grow to comprise around 45% of North American supply by 2035, from around 14% currently. On Tuesday, Sasol confirmed that it had selected a site in the south-western region of the state of Louisiana, in the US, for a possible plant, which could become the first plant in the US to produce GTL transportation fuels and other products. No capital estimate was ascribed to the project, but should it proceed it would involve an investment running into billions of dollars. Sasol tells Engineering News Online that the feasibility study will consider matters such as operations, capital investments, marketing alternatives, gas supply options and logistics, and will run into tens of millions of US dollars. For over 60 years, the South African company has produced more than 1.6-billion barrels of liquid fuels and chemicals primarily from coal, as well as some natural gas. Louisiana Governor Bobby Jindal and Sasol new business development MD Ernst Oberholster announced jointly that the feasibility study, which would endure for 18 months, would evaluate the viability of a GTL venture in Calcasieu Parish. Should it proceed, Sasol would apply its GTL technology to convert Louisiana’s abundant natural gas resources into fuel to be consumed in the US, which is keen to reduce its dependence on foreign oil. The feedstock supply will be the subject of detailed study during the feasibility stage. The group already produces GTL at the Oryx joint venture with Qatar Petroleum, in Qatar, in the Middle East, and the high-quality fuel can be used in existing vehicles and fuel delivery infrastructure without modifications. “GTL fuels are an important part of the energy mix because they can advance energy independence in a way that is both cost-efficient and environmentally friendly,” Oberholster said in a statement. The GTL project was highlighted the second “first of a kind” development to be announced by Sasol for the US in less than a year. In December 2010, Sasol announced the world’s first Ethylene Tetramerization Unit, also to be built in Calcasieu Parish.