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No Topic on SASOL?
Posted on 1/28/15 at 8:57 pm
Posted on 1/28/15 at 8:57 pm
Looked back a few pages but they are putting their $14B gas-to-liquids plant on hold. This combined with Shell/Motiva cancelling their ~$15B expansion in Convent.
Bad news keeps rolling in for LA from the low gas prices.
Bad news keeps rolling in for LA from the low gas prices.
3
Posted on 1/28/15 at 9:21 pm to MikeD
quote:
This combined with Shell/Motiva cancelling their ~$15B expansion in Convent.
This was cancelled well before gas prices got low
Posted on 1/28/15 at 9:27 pm to MikeD
Yeah, but isn't the several $billion first phase project for Sasol still a go?
Posted on 1/28/15 at 9:30 pm to notiger1997
quote:
Yeah, but isn't the several $billion first phase project for Sasol still a go?
Yes the ethylene crackers
Posted on 1/28/15 at 9:55 pm to MNCscripper
quote:
This was cancelled well before gas prices got low
Quite possibly their analysts were smarter than SASOL's.
"citing the potential cost and uncertainty about future crude and natural gas prices."
LINK
Posted on 1/28/15 at 9:58 pm to MNCscripper
quote:
Yes the ethylene crackers
Correct, which was about 35% of the total project.
Posted on 1/28/15 at 10:04 pm to MikeD
My understanding was the cracker was the only thing that was definitely coming... and the GTL plant was still in the study phase. So... I don't think this really hurts at all.
Posted on 1/29/15 at 5:52 am to MikeD
Why would GTL export terminals be upset about lower gas prices?
Posted on 1/29/15 at 6:16 am to TheHiddenFlask
Right, this is due to lower oil prices.
Posted on 1/29/15 at 10:03 am to RedStickBR
quote:
due to lower oil prices.
probably also due to dropping LNG prices in Asia reducing the advantage of exporting cheap gas from here
This post was edited on 1/29/15 at 10:04 am
Posted on 1/29/15 at 10:24 am to 90proofprofessional
I believe the delay is associated with the GTL project, as Flask mentioned. With the drop in oil prices, it's not as economic anymore to convert natural gas into gasoline. This isn't an LNG export project, to my understanding.
Posted on 1/29/15 at 2:15 pm to RedStickBR
had been under the assumption that GTL produced LNG. 
had to do some looking up
had to do some looking up
Posted on 1/29/15 at 5:56 pm to 90proofprofessional
Heard several New Orleans real estate moguls bought up a lot of land in anticipation of this project. Going to lose their asses on it now.
Posted on 1/29/15 at 10:07 pm to RedStickBR
quote:
I believe the delay is associated with the GTL project, as Flask mentioned. With the drop in oil prices, it's not as economic anymore to convert natural gas into gasoline. This isn't an LNG export project, to my understanding.
Yeah, this project getting cancelled is basically based off of gasoline prices being low, and the spread between natural gas and oil not being high enough to make it worthwhile.
Though, if this was truly a 5-10 year project then 2 years of low oil prices shouldn't be enough to off set the project.
Do they both know something is up with long term oil/natural gas pricing??
Posted on 1/30/15 at 6:41 am to MikeD
You've got the crude oil futures curve still showing $50s on the bid all the way out to 2023. While we all know how wrong futures can be, I also don't think SASOL wants to be in the business of trying to outsmart the market. They've got to adjust based on current information. Do we have any idea what their breakeven Oil-NG spread might be?
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