Sasol, Eni Plan Study of a Gas-to-Liquids Plant in Mozambique

Sasol Ltd. (SOL), the world’s biggest producer of motor fuel from coal, is considering a gas-to-liquids plant in Mozambique with Eni SpA of Italy and the southern African country’s oil company.

The joint pre-feasibility study will assess the viability of such a plant in the region, Johannesburg-based Sasol said in a statement on its website.

Eni has found about 75 trillion cubic feet of gas offshore Mozambique in a block known as Area 4 of the Rovuma Basin, site of the biggest gas discoveries in a decade. The country may have 250 trillion cubic feet of reserves, according to state-owned oil company Empresa Nacional de Hidrocarbonetos.

There is “quite an extended study period,” Alex Anderson, a spokesman for Sasol, said by phone. He said it’s too early to determine how long the study will take or the cost of such a plant.

Sasol started its first GTL plant outside South Africa in Qatar in 2007. With Nigerian National Petroleum Corp. and Chevron Corp. it’s built a similar facility in Africa’s biggest economy, and it’s constructing one in Uzbekistan with Uzbekneftegaz and Malaysia’s Petroliam Nasional Bhd.

Sasol will make a final investment choice on a U.S. GTL plant 18 to 24 months after it decides on an associated ethane cracker in Westlake, Louisiana. The GTL facility, which may produce 96,000 barrels of fuel a day, is estimated to cost as much as $14 billion and would be the first of its kind in the U.S.

To contact the reporter on this story: Paul Burkhardt in Johannesburg at pburkhardt@bloomberg.net

To contact the editors responsible for this story: John Viljoen at jviljoen@bloomberg.net Ana Monteiro, Randall Hackley

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.