August 30, 2002

New plant gives GTL project a leg up

The move marks a vital step forward in a plan to have two world-scale gas-to-liquids plants on stream by early 2006.

Sasol Chevron joint venture chief executive George Couvaras said: "Output from this plant will underpin our commercial GTL operations in Nigeria and Qatar."

The 20 million euro ($19.6 million) plant was designed and built in 18 months. Sasol's manufacturing partner is Engelhard and the new facility is on the US specialist company's established site at De Meern near Utrecht. Sasol Chevron technical manager Steve Venables stressed: "This is the first physical evidence of the GTL industry moving ahead on an open commercial scale."

The proprietary catalyst from De Meern will be at the heart of the chemical wizardry involved in first breaking down natural gas feedstock and then putting the molecules back together again in more valuable combinations at the two upcoming projects.

Meanwhile, says Sasol's Cavan Hill, the two new projects -- planned at Nigeria's Escravos site and at Ras Laffan in Qatar -- are working towards award of engineering, procurement and commissioning contracts early next year. With front-end work completed by Foster Wheeler, bid packages for Qatar GTL are out to tender while those for Escravos should follow shortly.

Calling for a combined investment of about $2.1 billion, the two plants will both start at a production capacity of 34,000 barrels per day.

Two thirds of this output will be the particularly pure, virtually emissions-free synthetic diesel that the GTL process can yield, while most of the rest will be naphtha.

Start-up date for the Qatar project is currently put at late 2005 and for Escravos in early 2006.