Sasol in Uzbek GTL joint venture
20 July 2009
South African petrochemical company Sasol has entered a joint venture with Uzbekneftegaz, the national oil and gas company of Uzbekistan, and Malaysia's Petronas to develop and implement a gas-to-liquids (GTL) project in the central Asian country.
The project now moves into the feasibility phase, which will be overseen by a joint venture company to be formed between the three partners.
"The GTL facility will employ the proprietary Sasol Slurry Phase Distillate (SPD) process to annually produce in the order of 1.3-million tons of superior quality products such as GTL diesel, GTL kerosene, GTL naphtha and liquefied petroleum gas," Sasol said in a statement last week.
"Sasol's SPD is highly sought after worldwide as the process produces a clean burning, high performance fuel for diesel engines."
According to an Engineering News report last week, capital expenditure on the GTL plant was currently estimated at US$2.5-billion (about R19.9-billion), though the figure would be refined during the course of the feasibility study and subsequent phases.
The GTL project will be deployed to produce high-quality transportation fuels from Uzbekistan's abundant domestic gas reserves, enhancing the country's fuel production capabilities and making a significant contribution to its economy.
The three companies earlier signed a memorandum of understanding for mutual cooperation in the Uzbek oil and gas industry.
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