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Sasol and Shenhua to focus on Ningxia Hui CTL feasibility study
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Saturday, 30 Aug 2008
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Sasol and Shenhua announced that they have agreed to focus their full attention on the 80 000 barrels per day CTL feasibility study in the Ningxia Hui Autonomous Region. The joint Shenhua Ningxia Coal Group and Sasol Project in the Ningxia Hui Autonomous Region is one of only two CTL projects which will continue with further study and development in China. This strategy aligns with a recent notice issued by the National Development and Reform Commission of the Peoples Republic of China.

The proposed site in the Ningdong Chemical and Energy base has excellent infrastructure. A significant amount of work has been completed in preparing the physical site, providing the platform for potential future expansion. The significant advantages of this approach were demonstrated at Secunda in South Africa during the phased construction of the Sasol Two and Sasol Three projects'.

Governor Wang Zhengwei of the Ningxia Hui Autonomous Region recently visited Sasol in South Africa and has expressed his full support for the project. Although the greater focus on the Ningxia feasibility study will have the result that Sasol's Shaanxi feasibility study will not proceed at this stage, Sasol and Shenhua will maintain the good relationships with the Shaanxi Province which have been established over many years.

Mr Pat Davies CEO of Sasol said that "I believe that it is the right decision to focus all our attention and resources on ensuring the planning and construction of a world scale 80 000 barrel per day, fully integrated CTL plant in the Ningxia Hui Autonomous Region. Sasol is delighted to be a full partner in the integrated CTL project, to bring its world leading proprietary technology and proven commercial CTL experience to China to produce high quality environmentally friendly fuels and to add significant value to both the Chinese economy and Sasol."

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