<<< back to article list

More uses for NG: Talisman's JV with Sasol at Farrell Creek

Blog by Kevin Kurjata | January 18th, 2011

Talisman's recent announcement of a $1.05 billion Joint Venture in the Farrell Creek region north of Hudson's Hope, with Sasol of South Africa, could expand the marketplace for natural gas produced out of our region.

Sasol is expecting that profits will increasingly be derived from the production of transportation fuel processed from natural gas as feedstock. The corporation has a long history of deriving fuel using coal as a feed-stock, but sees no viable long-term future with coal-supplied GTL.

Sasol and Royal Dutch Shell, both now having significant stakes in the Montney gas build-out, are the only 2 firms world-wide with the technology to currently deliver Gas-to-Liquids ("GTL") transportation fuel, cost competitively.

A facility for producing GTL looks pretty much like any other refinery, at least to our "untrained eyes": lots of pipes, steam, gauges, tanks, etc.. 

    Sasol GTL refinery

Sasol's GTL brochure is informative: GTL fuel reduces emissions and is especially attractive in large emerging-nation cities where pollution is a significant health issue. Both firms are gearing up to increase their ability to supply diesel fuel to transit systems and commercial vehicles around the world.

GTL profits improve with lower natural gas prices, so Talisman (by way of their Joint Venture with Sasol) and Shell hedge their operations on the downside of natural gas pricing with the GTL technology.  

It turns out that Shell is collaborating extensively with Talisman in the Groundbirch area ...

We live in interesting times, as South Peace Action is moved forward by cutting-edge corporations with global reach working in our backyards.

... Good for jobs and real estate values in Dawson Creek!