Sasol open to Indonesia coal-to-fuel talks

JOHANNESBURG – South Africa’s Sasol, the world’s top producer of synthetic fuel from coal, said the big Indonesian miner Bumi Resources was keen to talk to it about using its coal-to-liquids technology.

Red-hot oil prices are fuelling worldwide interest in alternative energy, and a Sasol spokesman said yesterday the group was receiving several inquiries about its technology. “Like many other coal-rich countries in the world, the Indonesian company has expressed interest in talking to us, obviously we will listen to them if they want to talk to us,” Johann van Rheede, Sasol’s spokesman, said.Van Rheede said Sasol was receiving enquiries from “lots of people” on its coal-to-liquids (CTL) technology and this was a natural consequence of being a leader in the CTL technology.Bumi, controlled by the family of Indonesian chief welfare minister Aburizal Bakrie, said last week it had agreed to sell two coal mines to an international investor group in a deal worth US$3,2 billion in the country’s second largest takeover.Bumi’s president director Ari Udaya has said Bumi plans to build a coal liquefaction factory to help reduce oil product use in Indonesia, which is seeking to increase the use of other sources of energy such as natural gas and coal in the face of rising crude prices and declining domestic production.Indonesia is the world’s second biggest coal exporter after Australia.Sasol has said its officials are due to visit India for talks this month with energy firms to discuss CTL ventures.The group, which also manufactures chemicals, has said it is focused on CTL opportunities in China, the US and India, which rank among the countries with the biggest reserves of coal.Sasol’s technology, which converts coal or natural gas to liquid fuel, was developed in South Africa during apartheid rule to overcome sanctions and is now seen as a means to a develop a global footprint and expand its earnings.Since it started using the technology over fifty years ago, Sasol has so far produced more than a total of 1,5 billion barrels of CTL fuel, far ahead of rivals, and it has a capacity of about 150 000 barrels per day of CTL.Sasol has said it hoped to more than double its daily output capacity in the long term, with the bulk produced offshore.- Nampa-Reuters”Like many other coal-rich countries in the world, the Indonesian company has expressed interest in talking to us, obviously we will listen to them if they want to talk to us,” Johann van Rheede, Sasol’s spokesman, said.Van Rheede said Sasol was receiving enquiries from “lots of people” on its coal-to-liquids (CTL) technology and this was a natural consequence of being a leader in the CTL technology.Bumi, controlled by the family of Indonesian chief welfare minister Aburizal Bakrie, said last week it had agreed to sell two coal mines to an international investor group in a deal worth US$3,2 billion in the country’s second largest takeover.Bumi’s president director Ari Udaya has said Bumi plans to build a coal liquefaction factory to help reduce oil product use in Indonesia, which is seeking to increase the use of other sources of energy such as natural gas and coal in the face of rising crude prices and declining domestic production.Indonesia is the world’s second biggest coal exporter after Australia.Sasol has said its officials are due to visit India for talks this month with energy firms to discuss CTL ventures.The group, which also manufactures chemicals, has said it is focused on CTL opportunities in China, the US and India, which rank among the countries with the biggest reserves of coal.Sasol’s technology, which converts coal or natural gas to liquid fuel, was developed in South Africa during apartheid rule to overcome sanctions and is now seen as a means to a develop a global footprint and expand its earnings.Since it started using the technology over fifty years ago, Sasol has so far produced more than a total of 1,5 billion barrels of CTL fuel, far ahead of rivals, and it has a capacity of about 150 000 barrels per day of CTL.Sasol has said it hoped to more than double its daily output capacity in the long term, with the bulk produced offshore.- Nampa-Reuters