Sasol pulls plug on plant
Johannesburg - Petrochemicals giant Sasol [JSE:SOL] on Tuesday confirmed that it would not continue with a coal-to-liquids (CTL) project in Indonesia.
The group said that it would instead turn its focus to gas-to-liquids opportunities.
In December 2009 Sasol signed a memorandum of understanding with the government of Indonesia which allowed for a study into the viability of a CTL project in Indonesia using Sasol's proprietary technology.
On Tuesday Sasol said that it would not pursue CTL projects beyond existing ones in India and China, which are at advanced stages.
"Sasol hopes to continue its partnership with the Indonesian government and to progress discussions on potential GTL opportunities in Indonesia," it said.
While there had speculation that the project would cost billions of dollars, Sasol said that it was not even in pre-feasibility and no figure had yet been put to it.