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South African liquefied coal producer to invest in China

(Xinhua)
Updated: 2006-10-27 08:43

BEIJING - South African petrochemicals giant Sasol Ltd will invest in two liquefied coal projects in China by cooperating with Chinese enterprises, according to the Sasol general manager.

The two projects, one in Yulin city of West China's Shaanxi Province and one in northwestern Ningxia Hui Autonomous region, will each produce 3.6 million tons of petroleum a year, said Andre De Ruyter.

Sasol signed an agreement on feasibility research into the two projects this June with Shen Hua Group Corporation Limited, China's largest coal producer.

According to De Ruyter, Sasol will hold a 50-percent stake in each project. The total investment in the two projects will be 10 billion to 14 billion US dollars and construction could begin in 2013.

Some local enterprises or partners in the marketing or refining sector may also invest in the two projects, he said.

De Ruyter said that Sasol has further expansion plans in China but he refused to disclose the details.