Colver Technologies says that SASOL’s decision to abandon plans to build an $11bn GTL plant in Louisiana made perfect sense.
Colver Technologies says that South African oil major SASOL’s decision to shelve plans to build an $11bn gas-to-liquids facility at its site at Lake Charles, Louisiana in the United States was “something of a no-brainer”.
Gus Stuyvesant, Chief Operating Officer at Colver Technologies made the comments during a presentation at an alternative fuels symposium in Calgary, Alberta, Canada in which he claimed the future of GTL lay in small-scale solutions like those produced by his company.
“I don’t think SASOL will be revisiting this idea until oil prices are at least back around $80 a barrel and even then they’d need $100 a barrel to make it profitable long term. The numbers just don’t make sense right now and, frankly, I’d have done the same thing if I’d been in charge.”
SASOL first announced its intention to build a 96,000 barrel a day facility that could produce gasoline, lubricants and premium value chemicals from cheap shale gas in 2012 but with the sharp fall in oil prices in recent months, the company has, like many other majors, embarked on a program of cost-saving measures that include a reduction in capital expenditure and job cuts.
“It doesn’t make sense to spend billions of dollars on large-scale plants when, right now, it’s cheaper to just convert crude oil into the things you need,” suggested Stuyvesant. He said that Colver Technologies small-scale solutions were proving popular with shale and other operators because the reactors were relatively cheap, modular and could generate income for producers who need extra cash flow.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning