But Bloomberg yesterday reported that Sasol would first have to reach an agreement with unspecified partners involved in the project.
“We’re coming close to that and hope to make an announcement by year-end,” the newswire quoted Sasol chief executive Pat Davies as saying.
African Harvest Fund Managers analyst Pierre Marais told Bloomberg Sasol’s next gas-to-fuels plant probably would not be smaller than its first in Qatar and was likely to cost at least $1 billion if it goes ahead.
Sasol will reportedly start producing fuels, such as diesel, from its Qatar-based plant in by the end of the year.
The Qatar plant will be the world’s largest gas-to-fuels project at 34,000 barrels a day.
Construction of the company’s second gas-to-fuels plant, in Nigeria, started in fiscal 2006.
In September, SasolChevron’s Australian representative Tony Pytte said Australia should develop a combination of liquefied natural gas and gas-to-liquids because it has “all the right drivers”, including “strong government support, a good fiscal regime and vast gas reserves.”
GTL diesel offers lower greenhouse gas emissions than petrol without the high sulphur and particulate emissions of conventional diesel. It is also compatible with existing diesel engines and distribution systems.
