OWN CORRESPONDENT, Johannesburg | Tuesday
SASOL, the listed fuel, gas and chemicals producer, has concluded a R14bn deal with petroleum companies in Nigeria, barely days after completing a R163m project to install a pipeline gas distribution network in KwaZulu-Natal.
In the Nigerian deal, the joint venture with Chevron Overseas Petroleum and the Nigerian National Petrol Corporation involves the construction of a fuel-from-gas plant at Escravos that may produce about 34000 barrels per day.
The three parties agreed to the deal in New York during the United Nations Millennium Summit, at a ceremony attended by President Thabo Mbeki and Nigerian President Olesegun Obasanjo to mark the kick-off of the strategic initiative.
The deal paves the way for the implementation of Sasol’s gas-to-liquids technology in Nigeria, and could be the first of several for the 50-50 Sasol-Chevron global joint venture that takes advantage of the complementary skills and technologies of both companies.
Sasol said the final details of the project, which was likely to be operational by 2004, would be announced in the next few weeks. It would involve the gas-to-liquids plant as well as upstream gas collection and cleaning, and would use gas that until now has been flared off.
Meanwhile, closer to home, the company has completed its three-phase, R163m project to install a new pipeline gas distribution network in the greater Durban South region.
The project, begun in early 1999, added 46km of underground distribution pipelines to supply Sasol’s new customers with its mostly methane gas.
Sasol said its new Durban South customers received their gas during April and May for the first time, including Hoechst SA (to supply their polyester plant) and Huntsman Tioxide SA.
The value of the new supply contracts already signed with Durban South customers was expected to exceed R350m, with at least another 50 customers targeted in the area.