Posted: Sep 13, 2011 12:45 PM CDTUpdated: Sep 13, 2011 12:45 PM CDT

The following is a news release from the Office of the Governor:

Today, Gov. Bobby Jindal and Sasol New Business Development Managing Director Ernst Oberholster announced the South African company has selected Calcasieu Parish as the location for a potential gas-to-liquids (GTL) complex that would entail a capital investment of approximately $8-10 billion and produce direct employment of approximately 850 jobs with average salaries of about $89,000, not including benefits.

LED estimates that the project also would result in approximately 4,000 indirect jobs, which means the total impact of the project would be nearly 5,000 new jobs in Southwest Louisiana.

Additionally, at full production capacity, the facility would consume approximately 305 billion standard cubic feet of natural gas per year; which would represent roughly $1.3-1.5 billion per year in natural gas purchases at current prices, and accordingly, Sasol's proposed GTL complex would provide a huge new source of demand for the Haynesville Shale and other natural gas plays in Louisiana.

Governor Jindal said, "Sasol has selected Calcasieu Parish as their preferred location in the U.S. for one of the largest industrial projects in Louisiana history. This is great news for Southwest Louisiana and our entire state. Not only would this project result in nearly 5,000 new jobs, but it also would represent a huge new source of demand for natural gas in Louisiana, which would benefit the Haynesville Shale and other natural gas plays here. For nearly four years, we have made economic development our top priority so that we could put Louisiana in a position to secure projects like this one that would provide 850 jobs with salaries averaging $89,000, plus benefits. Without question, the Haynesville Shale and other unconventional natural gas plays are transforming the energy economy in the U.S., and we are positioning Louisiana to be one of the chief beneficiaries of that transformation."

 "Louisiana has proven to be a place where research and next-generation technologies can thrive and grow," said Ernst Oberholster, managing director, Sasol New Business Development. "We believe Sasol's GTL technology can help unlock the potential of Louisiana's abundant natural gas resources and contribute to an affordable, reliable fuel supply for the United States. We look forward to continuing to work with the people of Louisiana to make a long-term and sustainable contribution to the state."

Sasol's GTL complex would be the first of its kind built in the United States, with Sasol converting natural gas into synthetic gas and then converting the synthetic gas into premium diesel fuel and related products.

Sasol Ltd., based in Johannesburg, has been an innovator in coal-to-liquids and gas-to-liquids refining methods since the 1950s.

Its Sasol North American Inc. subsidiary currently operates the 400-employee Sasol Lake Charles Chemical Complex in Westlake, with that facility located next to the city's ConocoPhillips petroleum refinery.

continue... http://www.kplctv.com/story/15452188/sasol-announces-selects-calcas...

 

 

Tags: GTL, Jindal, Louisiana, Sasol

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I'm just waiting for the EPA "shoe" to drop on this one!

 

Yep, it sounds like its going to need one or several Title V air permits.....
you mean the Employment Prevention Agency?

This is an announcement of a feasibility study, not a firm commitment to build.  

my math - a bbl of oil is roughly equivalent to 5800 scf of gas, so if it is going through 305 bcf/year, or roughly 52,000,000 BOE.  Assuming a 50% conversion efficiency, and you get yearly output in the range of 26,000,000 bbls of fuel, or about 72,000 bbls/day.  At $3/gallon figure roughly $3.2 billion in gross revenue per year.  Not bad for $1.3 billion in gas.  This is a big bet that the spread between gas and liquids will remain large.  

 

Note that Sasol says output will be 96,000 bbl/day or that roughly the process would be 65% efficient.  http://www.sasolgtl.com/news.php?action=submit&story_id=24

DBOB, the Pearl Plant produces 140k BPD of GTL products (diesel, aviation fuel, etc) and 120k BPD of NGL's from 320k BOEPD of feedgas (~ 1.9 Bcfd).  Capital cost is $18-19 billion.  Similar ratios would likely apply here. 

 

The capital cost is about 50% higher than an equivalent LNG plant and would generate similar revenue as LNG selling at 63% parity.  The advantage is the ability to utilize the existing transportation and distribution system for the products.

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