South African petrochemicals giant Sasol has signed a heads of agreement with the national oil and gas company of Uzbekistan, Uzbekneftegaz, and Malaysia’s Petronas for the development and implementation of a gas-to-liquids (GTL) project.
The three companies also signed a memorandum of understanding for mutual cooperation in the oil and gas industry in Uzbekistan.
The heads of agreement followed the positive outcome of the joint prefeasibility study into a 40 000 barrel a day plant in the former Soviet Union state. The study was the result of an earlier agreement between Petronas and Uzbekneftegaz for the proposed project that called for a detailed study for its development and implementation.
Sasol’s technology would now be deployed to produce transportation fuels from Uzbekistan’s abundant domestic gas reserves.
“The wealth of gas resources within Uzbekistan makes this an ideal location for a GTL facility and we are delighted to mark this important milestone with our valued partners,” said Sasol group GM Lean Strauss.
Strauss previously stated that Uzbekistan has about 60-trillion cubic feet (TCF) of gas reserves, and that a typical GTL plant only required 3 TCF.
The GTL project would not only enhance Uzbekistan’s fuel production, but would also make a significant contribution to the economy of the country through foreign direct investment and job creation, Sasol noted.
“The partners are currently in negotiations with Uzbekistan government regarding the required project enablers and plant to proceed to the next phase of project implementation, which involves the establishment of a joint-venture company,” the company said.
Petronas and Sasol were also exploring other areas of cooperation in the Uzbekistan oil and gas industry.
The heads of agreement was signed in Tashkent on Tuesday by Uzbek deputy Prime Minister and chairperson of Uzbekneftegaz, Ergash Shaismatov, Petronas president and CEO Tan Sri Mohd Hassan Marican and Sasol CEO Pat Davies.
Engineering News Online
By: Esmarie Swanepoel
8 April 2009
