Sasol says global projects on track, eye on China

CAPE TOWN (Reuters) - South African petrochemicals firm Sasol is on track with gas-to-liquids and coal-to-liquids investments across the world and says it can help China meet its fast-growing energy demand.
Sasol was conducting a feasibility study for two 80,000 barrels per day coal-to-liquids facilities in Ningxia and Shaanxi in China, Sasol manager for strategic initiatives Janita Maharaj told an oil conference in Cape Town.
A study on opportunities on a gas-to-liquids project in Australia, where Sasol was in partnership with U.S. major Chevron, was also progressing on schedule while a 34,000 barrels per day gas-to-liquids project was already under construction in Qatar, she said.
"We are on schedule with our projects," Maharaj told the conference. "Global demand is being driven by China, the U.S., India and we hope to be players in helping them meet their requirements."
Sasol was also involved in a gas-to-liquids facility at Escravos in Nigeria where a $1.7 billion engineering, procurement and construction contract had been awarded, and a coal-to-liquids project in the United States.
"There are significant opportunities in the U.S. and we are investigating India," she said.
GROWING ECONOMIES
Maharaj said in countries like the U.S. and China, coal was seen as a viable alternative to petroleum.
"The U.S., China and India have growing economies with large markets which do not want to be reliant on imported oil ... but all three have vast coal reserves," Maharaj said.
"This creates a window of opportunity for FT technology to share in expansion of refining capacity. Sasol is able to present a part of the solution for these countries as they strive to feed the appetites of their markets for fuel and chemicals," she added.
FT technology refers to Fischer Tropsch -- a process in which carbon monoxide and hydrogen are turned into liquid hydrocarbons.
"China will overtake the U.S. as the world's largest economy .... (the) average American will still be four time wealthier than the average Chinese. Sasol's strategy therefore follows feedstocks, but also markets," she said.
At its Oryx gas-to-liquids Qatar project, Sasol had began a study on expanding capacity to 100,000 barrels per day and was evaluating an integrated upstream and downstream venture.
Sasol operates in 15 countries, supplies all of South Africa's pipeline gas and is the country's only producer of chemical feedstocks.© Reuters 2006. All Rights Reserved.