Sasol and Chevron signed a Memorandum of Understanding today for the creation of a new global alliance to implement ventures based on Sasol’s gas-to-liquids (GTL) technology.
The Memorandum of Understanding was signed on behalf of the two companies by Pieter Cox, managing director and chief executive officer of Sasol Limited and Richard Matzke, president of Chevron Overseas Petroleum Inc.
Pieter Cox said: "This is an important milestone in Sasol’s globalization programme. We are excited about the myriad of opportunities made possible via a global alliance with Chevron. There are numerous synergies between Sasol and Chevron that will enable the alliance to accelerate the implementation of GTL ventures and we are confident that this joint venture will further strengthen Sasol’s position as the world-leader in Fischer-Tropsch technology. Chevron has also invited Sasol to participate in several upstream oil and gas exploration opportunities".
The proposed global joint venture broadens an existing relationship between Sasol and Chevron, established with the announcement in April last year of a joint feasibility study to implement a GTL plant in Nigeria. The facility will be capable of converting natural gas into synthetic crude oil, which will be further processed into commercial products, primarily high-quality, environmentally superior diesel and naphtha products. The initial feasibility study has since been expanded to increase target production from 20 000 to 30 000 barrels per day. Cox said: "We are confident that the project will be sanctioned before the end of this year, when design work should commence to allow the plant to come on stream in 2003."
The global joint venture between Sasol and Chevron will build on the foundation laid by Sasol, who is already involved in advanced stages of feasibility studies for several GTL ventures. Proprietary technologies from both companies will be used: Sasol’s SLURRY PHASE DISTILLATE™ technology and Chevron’s ISOCRACKINGTM technology. It will build on the technical strengths of each company in international upstream gas development and the production and marketing of GTL products. In addition to the advantages of gas opportunities for Sasol and Chevron, the alliance will also offer innovative GTL solutions for commercializing gas resources with other partners worldwide. The experience and technologies of both companies will contribute to reduced development costs and accelerate the use of Sasol’s GTL technology worldwide.
Sasol’s existing GTL-related agreements with other companies will continue independently of the global joint venture with Chevron.
Sasol’s gas-to-liquids technology offers most promising prospects for the marketing of environment-friendly fuels in the 21st century. Referring to the environmental benefits offered by the GTL process, Cox commented: "Never before has the oil industry faced such environmental challenges in both its operations and its products. Not only does Sasol’s GTL process offer a clean solution to an otherwise wasted natural resource, but GTL-fuels are already being heralded as the new generation clean fuels of the future. With the ever-increasing demand for environment-friendly energy, our high quality, sulphur-free, aromatic-free Fischer Tropsch fuels will not only challenge current standards, but will also establish new benchmarks for the fuels industry."
Richard Matzke said: "Gas-to-liquids technology is so promising that its development could create an entire paradigm shift throughout the petroleum industry. There are trillions of cubic feet of natural gas throughout the world, isolated from the traditional gas infrastructure. We believe application of GTL technology will become the preferred method to commercialize such natural gas resources. Equally important, this alliance has the potential to deliver market-based, economic solutions to reduce the need to routinely flare associated gas, creating what we see as a win/win/win situation".
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