Chevron, Sasol, set to commission $10 bn Escravos GTL plant in Nigeria
The long-delayed Escravos gas to liquids (GTL) project in Nigeria – which had been hoping to begin operations before the end of 2013 – is now expected to start up by mid 2014.
The construction has been completed and the plant is now in the commissioning phase, according to Sasol Chief Executive Officer (CEO) David Constable in a statement about upcoming project milestones in the 2014 calendar year.
“In Nigeria, the Escravos GTL project is in start-up phase. Beneficial operation for the first train is expected before the end of June,” Constable said during a March 10, 2014 presentation he made on Sasol Limited financial results, for the six months ended 31 December 2013.
The Escravos GTL project has been severally delayed and capital expenditure on it is approaching $10 billion, according to Chevron, one of the shareholders.
This compares with the $1.2 billion that was spent on the Oryx GTL project in Qatar, a similar project in terms of technology and capacity, which was inaugurated in 2006.
The Slurry Phase Distillate technology developed by Sasol and utilised at the Oryx project will also be in use at the Escravos project.
The Escravos GTL project will produce diesel, kerosene, naphtha and LPG – with the diesel and kerosene providing the nation with premium transportation fuels: diesel for road vehicles and kerosene to produce jet fuel for aviation.
The products are expected to offset some oil product imports.
The business rationale behind the GTL project is based on the wide differential between gas and liquids (crude oil) pricing, which Sasol believes will persist over the long-term.
The Escravos project is a 33,000-barrel-per-day gas-to-liquids project designed to process 325 million cubic feet per day of natural gas from the Escravos Gas Plant (EGP) expansion.
The project is being developed by Chevron Nigeria Limited (75 percent stake) and the Nigerian National Petroleum Corporation (NNPC) (15 percent) and Sasol (10 percent) with plans to expand the EGTL capacity to 120,000 b/d within 10 years.
The construction has been completed and the plant is now in the commissioning phase, according to Sasol Chief Executive Officer (CEO) David Constable in a statement about upcoming project milestones in the 2014 calendar year.
“In Nigeria, the Escravos GTL project is in start-up phase. Beneficial operation for the first train is expected before the end of June,” Constable said during a March 10, 2014 presentation he made on Sasol Limited financial results, for the six months ended 31 December 2013.
The Escravos GTL project has been severally delayed and capital expenditure on it is approaching $10 billion, according to Chevron, one of the shareholders.
This compares with the $1.2 billion that was spent on the Oryx GTL project in Qatar, a similar project in terms of technology and capacity, which was inaugurated in 2006.
The Slurry Phase Distillate technology developed by Sasol and utilised at the Oryx project will also be in use at the Escravos project.
The Escravos GTL project will produce diesel, kerosene, naphtha and LPG – with the diesel and kerosene providing the nation with premium transportation fuels: diesel for road vehicles and kerosene to produce jet fuel for aviation.
The products are expected to offset some oil product imports.
The business rationale behind the GTL project is based on the wide differential between gas and liquids (crude oil) pricing, which Sasol believes will persist over the long-term.
The Escravos project is a 33,000-barrel-per-day gas-to-liquids project designed to process 325 million cubic feet per day of natural gas from the Escravos Gas Plant (EGP) expansion.
The project is being developed by Chevron Nigeria Limited (75 percent stake) and the Nigerian National Petroleum Corporation (NNPC) (15 percent) and Sasol (10 percent) with plans to expand the EGTL capacity to 120,000 b/d within 10 years.
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