South African petrochemicals giant Sasol said on Wednesday it would sell its indirect interest in the Escravos gas-to-liquids (EGTL) plant in Nigeria to Chevron for an undisclosed sum.
The Escravos site is located about 100km south-east of the Nigerian capital Lagos. The plant receives gas from Chevron-operated Escravos Gas Plant (EGP).
The GTL plant converts natural gas into premium environmentally friendly fuel, diesel and GTL naphtha products. Europe is the primary market for all fuel products from the Nigerian plant, although some products are sold in the USA.
In a document cited by the Orient Energy Review on Sasol’s website read, “Sasol and Chevron have signed an agreement that will result in Sasol selling its indirect beneficial interest in the Escravos GTL (EGTL) plant in Nigeria to Chevron.
“The transaction will release Sasol from associated company guarantees and other obligations. Sasol will continue to support Chevron in the performance of the EGTL plant through ongoing catalyst supply, technology and technical support.”
The world’s top manufacturer of motor fuel from coal said it would continue to support Chevron in the performance of the EGTL plant through ongoing catalyst supply, technology and technical assistance.
The company said other sale processes, including its interests in the Republic of Mozambique Pipeline Investment Company pipeline and Central Termica de Ressano Garcia gas-fired power plant in Mozambique, are well underway.
Sasol had in March accelerated its asset disposal programme and said that it could sell up to $2 billion of its shares to ensure that it can pay its debt following a slump in oil prices and fears over the coronavirus outbreak.
The Escravos GTL project converts more than 325 million cubic feet of natural gas a day to GTL diesel and GTL naphtha. The GTL plant is located adjacent to the CNL Escravos Gas Plant – phase I (EGP-1).
Also, the plant processes about 150 million cubic feet of gas each day and produces LPG for sales to international markets and pipeline quality gas for domestic uses.
Sasol is a recognised leader in state-of-the-art Fischer-Tropsch technology and has been actively involved in developing technology for more than 50 years. The Isocracking process is used to upgrade waxy syncrude to yield a lighter premium-grade fuel which contains no sulphur or aromatics.
It develops and commercialises technologies; build and operate world-scale facilities to produce a range of high-value product stream, including liquid fuels, chemicals and low-carbon electricity.