Sasol steps back from $15 billion gas-to-liquids project
Walking away from the project, which would have been the biggest investment abroad by a South African company, underscores the headwinds the industry is facing in a volatile market with generally depressed prices.
"While our current GTL assets are generating good returns and cash flows, the value proposition for Sasol to build new GTL projects is uneconomic against a volatile external environment and structural shift to a low oil price environment," the company said in a statement.
The company had previously delayed its final investment decision on the project because of low oil and gas prices.
Sasol will also divest from its Canadian shale gas assets which hit its 2016 earnings with a 9.9 billion rand ($715 million) impairment. ■