Foster Wheeler awarded contract by Sasol to conduct feasibility study for gas-to-liquids facility in Canada

23-Jun-11

A subsidiary of Foster Wheeler AG’s Global Engineering and Construction Group has been awarded a contract by Sasol to perform the technical portion of a feasibility study for a planned gas-to-liquids facility in Canada, on behalf of the Sasol/Talisman Energy partnership. The technical portion of the feasibility study is expected to be completed during Q4-2011. The facility would convert shale gas to GTL naphtha, diesel and liquefied petroleum gas using Sasol's GTL technology. The Foster Wheeler contract value for this project was not disclosed and will be included in the company's second-quarter 2011 bookings. As well as the technical work on the feasibility study, Foster Wheeler will also develop a cost estimate to allow the partners in the joint venture (Sasol and Talisman Energy) to assess the economic viability of the planned facility, with a decision expected in the second half of 2012. "There is strong interest in examining potential monetization alternatives for the significant North American shale gas resources, including conversion into liquid transportation products to take advantage of the price dislocation between gas and oil products," said Umberto della Sala, Interim Chief Executive Officer, Foster Wheeler AG. "Foster Wheeler has led the way in developing complete GTL solutions through our Business Solutions Group. We will combine our very deep understanding of Sasol's GTL technology, our proven track record in GTL, and our cost estimating and project execution expertise derived from designing and building projects around the world, to assist in delivering the next generation of GTL solutions."