Page 15 - DMEA Week 26

DMEA REFINING DMEA

Sasol to shed stake in

Nigerian GTL plant

SOUTH AFRICA SOUTH Africa’s Sasol has struck a deal to sell with a 70% stake, while NNPC has 20%. But the
its indirect stake in the Escravos gas-to-liquids US major agreed in December to transfer most
The South African firm (GTL) plant in Nigeria to its US partner Chevron of its stake over to NNPC as part of a cost dispute
is on a divestment as part of a broader divestment programme. resolution.
drive. Sasol is looking to curb its debt to strengthen Sasol has several sales planned. It is collect-
its financial position during the downturn. In a ing binding offers for its 50% stake in a pipe-
statement on July 1, the company said the sale at line that supplies South Africa with gas from
Escravos would free it from various obligations, Mozambique. The bidding phase for the 865-km
including guarantees. It did not name a sales Rompco pipeline, which ships gas from onshore
price, nor say when it expected to close the deal. fields in Pande and Temane, will wrap up in late
But it did say it would continue to support Chev- July, according to Bloomberg.
ron at the plant by supplying catalysts, technol- The remaining interest in the pipeline is split
ogy and technical support. equally between the South African and Mozam-
The transaction will be backdated to Septem- bican governments.
ber 1, 2019. Sasol is also looking to dispose of the Cen-
The Escravos GTL plant entered operations tral Termica de Ressano Garcia (CTRG) power
in 2014 and uses up to 3.36bn cubic metres of plant, which receives gas from Rompco, and is in
gas per year to produce 34,000 barrels of syn- “far advanced” talks to find a partner for its base
thetic diesel, naphtha and liquefied petroleum chemicals operations in the US. Sasol added in its
gas (LPG). Gas supply comes from the offshore statement this week it had sold a 51% stake in an
OML 90 block, operated by Chevron and Nige- explosives joint venture to its partner Enaex. The
rian National Petroleum Corp. (NNPC). pair formed the venture last year.
The GTL project has a chequered past of cost There were reports in May that Sasol was
overruns and delays, with its eventual expense negotiating the sale of its fuel retail operations to
reaching $10bn – four times more than the origi- South Africa’s state-owned Central Energy Fund
nal budget. Chevron currently operates the plant (CEF), but the companies have denied this. ™

Week 26 02•July•2020 www. NEWSBASE .com P15