South African energy and chemicals group Sasol Limited is the newest foreign entity to make a foray into Canada’s nationally treasured natural resources.
Canada’s Talisman Energy Inc. has agreed to sell 50 per cent of its Farrell Creek shale gas assets to Sasol for $1.05 billion. The Farrell Creek shale gas assets are located in the Montney basin, of British Columbia.
In return, the two Companies have agreed to conduct a feasibility study around the economic viability of a facility in western Canada to convert natural gas to liquid fuels using Sasol’s Gas to Liquids (GTL) technology.
"This is a strategic move towards unlocking some of the value of our Montney assets for us and our new partner, consistent with the strategy of de-risking and developing Talisman's very large shale opportunities in the region," said John A. Manzoni, President & CEO of Talisman.
"We believe this transaction reflects the quality and potential of our broader Montney position. We are delighted to have Sasol as a partner. They are a world-class company and their expertise will enable us to jointly explore the option of a GTL facility in western Canada."
The outlook for GTL could be very positive if North American natural gas prices continue to decouple from oil prices. The GTL process produces premium, clean liquids fuels.
"The acquisition of this high quality natural gas asset will accelerate our upstream growth while also advancing Sasol's already strong GTL value proposition," said Pat Davies, Chief Executive, Sasol.
"In partnering with a credible international shale gas operator such as Talisman, we reap the dual benefit of leveraging their experience, as we grow our own shale gas expertise.”
Talisman and Sasol have also agreed to collaborate on certain other western Canadian natural gas opportunities.
Source: Sasol, Talisman
Canada’s Talisman Energy Inc. has agreed to sell 50 per cent of its Farrell Creek shale gas assets to Sasol for $1.05 billion. The Farrell Creek shale gas assets are located in the Montney basin, of British Columbia.
In return, the two Companies have agreed to conduct a feasibility study around the economic viability of a facility in western Canada to convert natural gas to liquid fuels using Sasol’s Gas to Liquids (GTL) technology.
"This is a strategic move towards unlocking some of the value of our Montney assets for us and our new partner, consistent with the strategy of de-risking and developing Talisman's very large shale opportunities in the region," said John A. Manzoni, President & CEO of Talisman.
"We believe this transaction reflects the quality and potential of our broader Montney position. We are delighted to have Sasol as a partner. They are a world-class company and their expertise will enable us to jointly explore the option of a GTL facility in western Canada."
The outlook for GTL could be very positive if North American natural gas prices continue to decouple from oil prices. The GTL process produces premium, clean liquids fuels.
"The acquisition of this high quality natural gas asset will accelerate our upstream growth while also advancing Sasol's already strong GTL value proposition," said Pat Davies, Chief Executive, Sasol.
"In partnering with a credible international shale gas operator such as Talisman, we reap the dual benefit of leveraging their experience, as we grow our own shale gas expertise.”
Talisman and Sasol have also agreed to collaborate on certain other western Canadian natural gas opportunities.
Source: Sasol, Talisman
