Sasol Nixes U.S. GTL Plant Project


Sasol said in a Nov. 23 news release it wont pursue its proposed 96,000 barrels per day gas-to-liquids plant in Louisiana. Under its refined corporate strategy, Sasol said it will not invest in further greenfield GTL projects. While our current GTL assets are generating good returns and cash flows, the value proposition for Sasol to build new GTL projects is uneconomic against a volatile external environment and structural shift to a low oil price environment, the energy and chemical company stated. Sasol first announced plans in late 2012 for the Lake Charles, La., GTL plant, which would have made diesel and other refined products, including base oil for lubricants. In January 2015 the South Africa-based company announced it would delay the final investment decision to conserve cash in response to lower oil prices.

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