By DEVON MAYLIE
JOHANNESBURG -- Sasol, the worlds largest producer of
motor fuels from coal, said Monday that as it plans significant
growth from its North American assets in the next decade it
continues to look for a buyer for its Iranian plant.
Most volume increases in the next eight years will be from
North America," Sasol CEO David Constable said. We're
exiting Iran because of sanctions...we see it getting tougher
there to do business.
Sasol, which currently still spends about two thirds of
capital in its home country South Africa, said that the company
has a series of plans in the pipeline that would place more
focus on the US and Canada in the next few years.
In light of that plan, Mr. Constable told Dow Jones
Newswires that the company has no plans to resume crude oil
imports from Iran and is progressing with the sale
of its 50% stake in a $900 million Iranian petrochemical project.
Mr. Constable said the company has a huge
strategy in North America. In Louisiana, it is looking at
building an $8 billion to $9 billion gas-to-liquids plant that
would produce 96,000 bpd of mostly diesel. It is also looking
at a 48,000 bpd plant in Alberta, Canada that would cost about
Sasol said it plans to make a decision on the Canadian plant
by the end of the year.
From 2020, Sasol said it also wants to look at Australia,
where it is currently exploring for gas assets. It could
consider building a gas-to-liquids plant there in the
For now, Mr. Constable said its growth in North America will
be new capital spent at existing sites, but that acquisitions
could come into play.
In light of the sanctions from the US and European Union against Iran, Sasol
stopped buying Iranian crude oil from Iran in January.
Sasol is sourcing more Arabian crude, Nigerian and Angolan
oil in its place. Sasol relied on Iranian oil imports for about
20% of its crude requirement, or 12,000 bpd, at its Natref refinery.
Mr. Constable said Sasol is talking to parties interested in
buying its stake in the Iranian polymer plant.
It doesn't make sense to have 3% of our operating
profit in a country with sanctions against it from the
US, he said.
Dow Jones Newswires