louisiana and a - sasol, page-2

PB said he wants to crack the capex code first, thats one reason why they didnt jump straight into it..


He doesnt want it to be like Shell's Pearl plant with cost overuns...


Yes Bandy, Sasol can build a natural gas to liquids plant in Louisiana..



[i]Sasol officials estimate that a plant producing 96,000 barrels a day of diesel, and some jet fuel, would cost $10 billion to construct. They say they could opt for a smaller facility, however.

...

Sasol joined with Qatar Petroleum to open the 34,000 barrel-a-day Oryx gas-to-liquids, or GTL, plant in 2006. That plant is operating at planned rates; however, it has had more trouble with another GTL project developed jointly with Chevron Corp. and the state oil company in Nigeria after disclosures of cost overruns at the project.

http://www.southafrica-newyork.net/consulate/sasol_in_us.html[/i]


[i]

[b]Economics of GTL[/b]

Using the crude numbers available: if diesel fuel persists at its recent wholesale price of about US$2.10 per gallon, or US$88.20 per barrel, and natural gas hovers in the range of $4 per thousand cubic feet, then Sasol’s gross margin would be in the neighborhood of $44 per barrel, which, on the surface, looks very lucrative, and compares very well to many unconventional sources of oil such as the Athabasca oil sands in northern Alberta, Canada.

It looks even better when considering that, in effect, the Sasol GTL does not require a refinery; it is, in essence, already refining the input resource into finished, high value products. So, the ‘spread’ from the substitute for crude oil to the finished, ‘refined’ liquid is very high

http://www.zacks.com/stock/news/61083/Nat+Gas-to-Liquids+Coming+to+U.S.
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