Sasol divests from the GTL project, sells Canadian shale gas assets

Date: 2017-11-24   Author: Saipriya Iyer  Category: #industry

Sasol divests from the GTL project, sells Canadian shale gas assets

In a major breakthrough witnessed across the O&G industry, Sasol Limited has completely withdrawn from its gas-to-liquids greenfield ventures that also include a project in Louisiana, the cost of which is estimated to fall in the range of USD 13 billion to USD 15 billion. According to the firm’s officials, the value proposition for the organization to develop GTL ventures was not a viable option with fluctuations in the oil & gas costs and a drift towards low oil priced environment. As per authentic sources, the firm will also divest its shale gas assets in Canada on which it incurred a loss of nearly USD 715 million on its 2016 earnings. However, it has been reported that the firm is not abandoning the Louisiana ethane cracker venture yet, which is now evaluated at USD 11.13 billion. Apparently, this will be the largest investment by any foreign firm in the U.S. project, 79% of which has been completed.

The key officials of the firm announced that the expansion of crude oil refining capacity was not necessary as its current capacity in South Africa is estimated at 2,70,000 barrels per day. The firm has also raised its revolving credit limit to nearly USD 3.9 billion from USD 1.5 billion along with the extension of the maturity limit to approximately five years.

Industry analysts and economists have claimed that Sasol will now concentrate on the effective delivery of its U.S. based venture referred as Lake Charles Chemicals Project as well as Production Sharing agreement in Mozambique till 2022. After 2022, the firm apparently plans to focus on making investments ranging from USD 500 million to USS 1 billion in small as well as medium-sized businesses.

Reliable sources have stated that the organization will also expand its portfolio across the high-valued the specialty chemicals sector with the intention to accrue huge profits from the escalating demand for energy and chemicals.



About Author


Saipriya Iyer linkdin-boxtwitter

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

Post Recommendents

Innovations in surveillance system—a growth enabler in air traffic management

Author: Saipriya Iyer

Transforming air traffic management into a more interoperable, automated, modular and scalable system will potentially reap rewards from developments in virtualization and digital technologies. Seamless high-performing...


Stents industry to witness robust technological innovations with ongoing R&D activities

Author: Pankaj Singh

One of the fastest emerging verticals within the healthcare and medical devices space, the global stents market is set to witness numerous interesting trends in the coming years. Ongoing research and development in the...


Amazon India launches ‘Select’ program to assist emerging brands

Author: Shikha Sinha

E-commerce giant Amazon has reportedly started a new program called ‘Select’ in India. As per trusted sources, the program will enable emerging brands in the country to get access to a suite of brand buildi...