Sasol to focus on sole China project
5 September 2008
South African petrochemical company Sasol and Chinese state-owned mining and energy group Shenhua are to focus their full attention on the feasibility study into building a 80 000 barrel-per-day coal-to-liquids facility in the Ningxia Hui Autonomous Region in China.
The joint Shenhua Ningxia Coal Group and Sasol Project in the Ningxia Hui Autonomous Region is one of only two coal-to-liquid projects which will continue with further study and development in China.
In a statement issued last week, Sasol said the strategy aligned with a recent notice issued by the National Development and Reform Commission of the Peoples Republic of China.
"I believe that it is the right decision to focus all our attention and resources on ensuring the planning and construction of a world-scale, 80 000 barrel per day, fully integrated coal-to-liquids plant in the Ningxia Hui Autonomous Region," said Sasol CEO Pat Davies.
The proposed site in the Ningdong Chemical and Energy base has excellent infrastructure, and a significant amount of work has been completed in preparing the physical site, providing the platform for future expansion.
The significant advantages of this approach were demonstrated at Secunda in South Africa during the phased construction of the Sasol Two and Sasol Three projects.
Ningxia Hui Autonomous Region Governor Wang Zhengwei recently visited Sasol in South Africa, and has since expressed his full support for the project.
Although the greater focus on the Ningxia feasibility study will mean that the Shaanxi feasibility will not proceed at this stage, Sasol said the two companies would maintain the good relationships with the Shaanxi Province which had been established over many years.
"Sasol is delighted to be a full partner in the integrated coal-to-liquids project, to bring its world leading poprietary technology and proven commercial coal-to-liquids experience to China to produce high-quality environmentally friendly fuels, and to add significant value to both the Chinese economy and Sasol," Davies said.
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