Independent research and consulting firm Enerdata’s analyst brief, ‘The future of the GTL industry’, published in August, states that South African energy and chemicals group Sasol, together with Uzbek State-owned oil and gas company Uzbekneftegaz and Malaysian State-owned oil and gas company Petronas, is building a gas-to-liquids (GTL) plant in Uzbekistan.

The $4.5-billion Oltin Yo'l GTL plant is set to be built in the Kashkadarya region of southern Uzbekistan.

Enerdata states that the plant, with the capacity to produce about 38 000 bbl/d, is scheduled to start operations in August 2017.

The plant will produce a combination of diesel, naphtha and kerosene for the aviation sector, which will assist Uzbekistan in reducing its dependence on crude oil imports.

Additionally, Sasol points out that Uzbekistan currently has to import low-quality fuel, but that the new plant will transform the country’s energy production by improving quality and ensuring security of supply.

“The Uzbekistan project underpins the versatility of GTL technology and its project-specific nature in terms of economics and opportunity. Uzbekistan is one of only two double-landlocked countries in the world [along with Liechtenstein] and was not an obvious prospect for an industry that favours the belief that GTL projects are only commercially viable with export access to the sea,” states Sasol.

However, the company states that its GTL experience in Qatar and Nigeria has been “critically important” in developing a project in the “formidably demanding location of Uzbekistan”.

Sasol is also developing GTL projects in the US and Canada.

GTL in Canada and the US

Sasol president and CEO David Constable said during Sasol’s financial results announcement, at the company’s head offices in Rosebank, Johannesburg, last month, that he expected a final investment decision on the 1.5-million-ton-a-year ethane cracker in the US state of Louisiana, in Lake Charles, to be made before the end of this year – a project that could involve an investment of between $5-billion and $7-billion.

He added that a decision on a 96 000 bl/d GTL facility, with an estimated cost of $11-billion to $14-billion, also in Louisiana, was likely to be made 18 to 24 months thereafter.

Enerdata notes that Sasol Canada’s GTL plant, which will be located in Alberta, is still at the environmental-impact assessment phase.

The Alberta facility will include industrial structures consisting of processing vessels and towers, reactors, liquid storage and distribution systems, as well as pipeline infrastructure, to tie into supply and market pipelines.

The GTL facility would likely use 500-million cubic feet of natural gas during the first phase to create 48 000 bbl/d (nominal capacity) of diesel, naphtha and liquefied petroleum gas, according to Sasol.

The company adds that a possible second phase of development will double the total daily production capacity.

Sasol highlights that a 96 000 bl/d GTL facility would create more than 700 new, permanent skilled jobs once it is in operation and employ more than
8 000 additional people during peak construction periods.

Although the cost of the project has not been announced, newswire Reuters reported in September 2012 that industry analysts estimated that the cost of establishing the plant could be as high as $10.3-billion, though Sasol stressed that it had not yet advanced the plan to the point where it could estimate costs.

Nonetheless, Sasol states that it has evaluated the opportunity to build Canada’s first GTL facility as a “multibillion-dollar investment”, as the facility will launch a new industry for Canada and diversify the Alberta economy, thereby creating new employment opportunities.

Further, Sasol asserts that its GTL technology is a “proven alternative solution” that will add value to Canada’s natural gas resources by converting natural gas into high-quality transportation fuels and petrochemical feedstocks in a cost-efficient and environment-friendly way.

Moreover, the company states that, in North America, the shale gas “phenomenon” presents exciting opportunities for GTL.

Sasol notes that, as improved technology practices continue to drive down the cost of extracting shale, the price differential between natural gas and oil has widened considerably.

“GTL is able to take advantage of this differential by producing oil-equivalent fuels from a natural gas feedstock that unlocks the full value of natural gas,” the company points out.

Sasol stated in its audited fin- ancial results report that its R14.2-billion Sasol Synfuels growth programme at the company’s Secunda plant, in Mpumalanga, was nearing completion, with beneficial operation expected to be reached in December.

Sasol says that this will allow for additional natural gas to be fed into the Secunda facility, enabling higher volumes of fuels and chemical feedstock to be produced, as well as increased electricity generation.

The company adds that many of the benefits are evidenced by increased production performance at the plant.

“Following the successful commissioning of the gas-heated heat-exchange reformers (GHHERs) East plant last year, the GHHER West is being installed and beneficial operation is expected soon,” states Sasol.

The final cold separation modifications were scheduled for completion during the planned synfuels phase shutdown last month.