Sasol Gas-to-Liquids Facility Converting Eagle Ford Gas?

Sasol announced a feasibility study on a gas-to-liquids facility in Calcasieu Parish, La, on September 13, 2011. The company will spend the next 18 months determining the the economic viability of the plant. The plant will add jobs in Louisiana, but don’t plan on it converting much Louisiana onshore gas. The Haynesville is further downstream in terms of pipeline flows, so the plant will process gas sourced from offshore fields and you guessed it – Texas. More specifically, South Texas.

The project will be a win for the Eagle Ford as it will increase demand in the supply region. With natural gas prices below $4 and oil prices about $80, there is a lot of room for an economic margin. That’s 20 times the value of natural gas for a barrel of oil, which is only 6 times the energy.

South African energy and chemicals group Sasol today announced that it has chosen the southwestern region of the State of Louisiana as the site for a planned gas-to-liquids (GTL) facility. The project is slated to be the first plant in the U.S. to produce GTL transportation fuels and other products.

In a press conference today with Louisiana Governor Bobby Jindal, Sasol Managing Director: New Business Development Ernst Oberholster said, “We believe Sasol’s proprietary GTL technology can help unlock the potential of Louisiana’s clean and abundant natural gas resources and contribute to an affordable, reliable and high quality fuel supply for the United States.”

“GTL fuels are an important part of the energy mix because they can advance energy independence in a way that is both cost-efficient and environmentally friendly”, said Oberholster. In addition, unlike other proposed alternatives to conventional petroleum-based fuels, GTL fuel is used in existing vehicles and fuel delivery infrastructure without modifications.

Read the full news release at 

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Kenneth E. DuBose

Kenneth E. DuBose

Kenneth DuBose is the past President of Cheyenne Minerals Inc., an independent oil and gas operator. He began his energy industry career with ARCO Oil & Gas. Mr. DuBose then directed development of natural gas storage projects with Tejas Power Corp. He was a founding member of U.S. Minerals, (acquired by Torch Energy in 1999) a provider of internet based education for America’s mineral owners. Mr. DuBose holds a BS in Petroleum Engineering from Mississippi State University. He has served on various industry steering committees, non-profit boards, and is an active member of the Society of Petroleum Engineers, the National Association of Royalty Owners, the American Association of Professional Landmen, as well as being a Registered Investment Advisor. He writes on topics of oil and gas investing, wealth management and personal finance, having appeared in the Wall Street Journal, Kiplinger’s, Kiplinger’s Personal Finance, Houston Business Journal, Financial Advisor and various radio and TV outlets.

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