Bloomberg reported that Sasol Ltd, the largest producer of motor fuels from coal abandoned plans for a factory in China in favor of other investment opportunities after government delays.
Mr David Constable CEO of Sasol Ltd said “We have so many investment opportunities that we need to move on and look elsewhere at this time.
He said that “They’re still looking at how to use their coal, whether for chemicals or power or liquid fuels. There are technology questions on whether or not they’d like to develop the technology themselves. I think with all of those unknowns, I can see why they would be slow in their decision making.”
Mr Constable said Sasol expects to announce a planned gas to liquids plant in Uzbekistan with its partners Petroliam Nasional Bhd and state run Uzbekneftegaz in the very near term, probably before the end of the year. The parties will meet with President Mr Islam Karimov of Uzbekistan on Sept. 19.
He said that the Sasol board has provisionally agreed to proceed with engineering and design for the facility.
Mr Constable said the group’s other main international plans include gas-to- liquids plants in the US and western Canada, currently in the feasibility stage and a coal to liquids factory in India. The pre-feasibility study for the India project, a partnership with Tata Group, should be complete by end-2011.
He said that Nigeria Escravos gas-to-liquids plant jointly developed with Chevron Corp is due to begin production in 2013.
Mr Constable said in a presentation Sasol which saw a 25% gain in annual profit today will expand its other businesses in China mainly chemicals manufacturing and marketing.
Sasol said the company based in Johannesburg, was planning a USD 10 billion coal to liquids plant with Shenhua Nigxia Coal Industry Group Ltd a unit of China biggest producer of the fuel. Funding will be moved to other developments and staff redeployed. The two partners haven’t received any response from the Chinese government since they submitted a project application report in December 2009.
(Sourced from Bloomberg)
