Sasol, Shenhua target liquid fuel production by 2016

South Africas Sasol and Chinas Shenhua Group have publicly revived discussions of their planned joint coal-to-liquids (CTL) venture in China, stating that they expect to produce their first transportation fuels from 2016. Sasol Chief Executive Pat Davies said that the end of 2009 would complete the two feasibility studies in northwest China in Shaanxi and NingxiaHui. A final investment decision would then be taken within two years. Both projects are targeted to produce 80,000 barrels per day (bpd) of liquid fuels. Front-end engineering and design (FEED) work was launched in 2006 and is not due to be completed until 2009. Sasol said it is in discussions with the Chinese government over pricing, with Davies reportedly happy with CTLs competitiveness at crude oil price expectations of US$80 per barrel and above. (June 16, 2008)