http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 13, 2007

Sasol in talks to build two coal-to-liquids plants in China

Back
Sasol CE Pat Davies discusses the firm's international ambitions (13/09/2007)
 
 
 
Construction|Africa|Building|CoAL|Flow|Gas|transport|Africa|Flow
Construction|Africa|Building|CoAL|Flow|Gas|transport|Africa|Flow
construction|africa-company|building|coal|flow-company|gas|transport|africa|flow-industry-term
© Reuse this The world’s biggest producer of liquid fuels from coal, Sasol, is conducting feasibility studies into the possible construction of two such plants in China, where it was currently in “hard-nosed” commercial negotiations, its head said on Thursday.

Each plant would produce 80 000 bl/d, at an estimated capital cost of $7-billion to $8-billion.

“We’re busy with some fairly hard-nosed commercial negotiations,” Sasol CE Pat Davies told the Pittsburgh Coal conference in Sandton. “If you look at a cost benefit analysis for China, there is no doubt that this should be done in those countries.”

However, he said that it was always a challenge to negotiate the details of the commercial agreements.

China has some of the biggest coal reserves in the world.

Sasol produces nearly a quarter of South Africa’s liquid fuels from coal.

Production at its Secunda plant was 150 000 bl/d, and the firm had plans to grow this by 20% in just less than a decade, Davies said.

It also had plans to build an 80 000 bl/d plant in the Waterberg coalfields or the Free State.

“We had the premier of China in South Africa for 22 hours last year and he visited us for one of those hours to demonstrate the keenness that China has to use the same technology,” Davies stated.

However, in an interview after his presentation, he said that Sasol was not likely to begin construction on either of the two plants “any time soon”.

“It will probably be about a year before there is any real news flow from there,” he said.

US prospects depend on legislative changes

Sasol was eyeing the potential of building CTL plants in the US, which boasts the world’s biggest coal reserves, but was waiting for new legislation to be passed.

The new laws could offer subsidies for firms that produce liquid fuels from coal, and there is currently a big political push for government to agree to this.

Meanwhile, Sasol is also operating in joint-venture with Chevron in Australia, where it is studying the viability of building a gas-to-liquids plant.

Davies said that this study would take another year to a year and a half to complete.

Logical shift



Davies said that, as oil reserves declined, it made sense for the world to look to coal as a viable supplier of fuel for the transport industry.

He noted that oil was found mainly in only nine countries, representing some 5% of the world’s population, while 80 countries had coal reserves, and these states represented nearly half of global population.

An example that Davies gave of the impact that exploiting these reserves for liquid fuel purposes was China’s situation.

He showed how China could reduce its oil imports by 15% if it converted just 1,5% of its coal reserves to liquid fuels, through 12 plants.

“We see a huge opportunity for coal in the transportation industry, Davies enthused.

Shares in Sasol, which earlier this week announced plans to sell 10% in the company to black investors, gained 1,36% on Thursday, to close in Johannesburg at R298,01 a share. 

Edited by: Liezel Hill
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
All grades of petrol will cost 69c a litre less from next Wednesday, the Department of Energy announced on Friday. This comes after last month's 51c decrease, adding more relief to motorists.
Gas provider African Oxygen (Afrox) says the positive effects of a R375-million restructuring programme that saw the departure of its former chairperson, CEO and MD, as well as plant impairments, redundancies and closures, are starting to emerge, despite a 24.4%...
Diamond miner De Beers Group has renewed gas and welding company Afrox’s R57-million contract for the supply of industrial and medical gases, welding consumables and bulk liquefied petroleum gas for the next five years. The contract came at a time when De Beers was...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96