Sasol announces a further C$1.05B shale gas acquisition in Canada
08 March 2011
South African synthetic fuels and chemicals company Sasol has signed a second agreement with Canada-based Talisman Energy to acquire a 50% stake in their Cypress A shale gas asset located in the Montney basin of British Columbia for C$1.05 billion (US$1.08 billion).
Consistent with the recent Farrell Creek shale gas acquisition, announced in December 2010, this second acquisition will see Talisman Energy retain the remaining 50% interest and continue to operate the Cypress A gas asset.
Assets included in the transaction cover more than 57,000 acres of land and represent an estimated contingent resource of 11.2 trillion cubic feet (TCF).
The Cypress A asset offers thick productive shale formations and is located in close proximity to the recently acquired Farrell Creek asset. This will allow for optimization and synergies, Sasol said. The existing and planned pipeline infrastructure in North America also allows for gas to either be sold into the regional gas market, or to a potential integrated Gas-to-Liquids (GTL) facility in Canada.
As disclosed in December 2010, in the Farrell Creek announcement, Sasol and Talisman have agreed to conduct a feasibility study on the economic viability of a facility in western Canada to convert natural gas to liquid fuels using Sasol’s GTL technology. The acquisition of the Cypress A asset, together with the Farrell Creek acquisition, will allow them to scale up such a GTL facility.
The Provincial Environment Evaluation Commission has recommended (yesterday) that the Quebec Government delays Shale Gas exploration until an in depth study on environmental, financial, health, fresh water and effects from toxic materials used has been done. This will delay Shale Gas exploration in the St-Lawrence River valley by 24 to 30 months but the Government and the majority agree that it should be done prior to further exploration.
Local Shale Gas is located under the best farm lands and under or close to 1000 towns and villages and many more residences.
Over 90% of the local population prefer to use clean Hydro Electricity instead of Shale Gas. However, most industries prefer to use lower cost gas to maximize their profits.
Posted by: HarveyD | 09 March 2011 at 07:00 AM
We could make synthetic diesel and gasoline from natural gas. There is more natural gas flared around the world than than what is used in the U.S. Turn all that into fuels and OPEC loses power.
Posted by: SJC | 12 March 2011 at 11:32 AM