Sasol forms new GTL reactor procurement alliance

April 22, 2002
Sasol Technology Pty. Ltd. has formed an alliance with Japanese engineering firms Ishikawajima-Harima Heavy Industries Co. Ltd. and Nissho Iwai Corp., both of Tokyo, for design, fabrication, and supply of slurry-phase Fischer-Tropsch reactors for Sasol's two new GTL plants in Nigeria and Qatar.

By OGJ editors

HOUSTON, Apr. 22 -- Sasol Technology Pty. Ltd., technology arm of South African-based energy and petrochemicals group Sasol Ltd., has formed an alliance with Japanese engineering firms Ishikawajima-Harima Heavy Industries Co. Ltd. and Nissho Iwai Corp., both of Tokyo, for the design, fabrication, and supply of slurry-phase Fischer-Tropsch reactors for two new Sasol gas-to-liquids (GTL) plants.

One plant is being developed in the Escravos Delta region of southern Nigeria through Sasol Chevron, Sasol's global joint venture with ChevronTexaco Corp. Sasol Chevron, working with the Nigerian National Petroleum Corp. and Chevron Nigeria Ltd., is developing the Nigerian GTL plant at a cost of about $1.2 billion.

Qatar Petroleum Co. and Sasol Synfuels International are jointly developing the other GTL plant at Ras Laffan in northeastern Qatar at a cost of about $850 million. Both plants will be commissioned in 2005.

The two plants will incorporate a slurry-phase distillate (SPD) process developed during the 1980s and 1990s as part of Sasol's Fischer-Tropsch technology development program. The low-temperature synthesis technology converts methane-rich natural gas into high-quality, low-emissions fuel suitable for use in diesel engines.

Through the Sasol Chevron global JV, Sasol intends to develop several other international GTL plants during the next decade, requiring as many as 14-20 of the giant slurry-phase reactors. Orders for the Nigerian and Qatari GTL plants' reactors are expected to be finalized before the end of January 2003.

Sasol Chevron will operate the new ventures and market the products from future GTL plants.