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Tata, Sasol JV to invest $10 bn in India project

Tata, Sasol JV to invest $10 bn in India project
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First Published: Fri, Jun 04 2010. 05 01 PM IST
Updated: Fri, Jun 04 2010. 05 01 PM IST
New Delhi: A joint venture between Tata Group and South Africa’s Sasol plans to invest $10 billion in a coal-to-liquid project in Orissa by 2018, Sasol’s India president said.
Production of fuel from the Orissa coal block will begin in 2018 and will be ramped up to 80,000 barrels per day of oil product within a year, Sasol’s Mark Schnell said.
The project is in its early stages and investment will be equally divided between the two partners, he said. While the joint venture had initially estimated spending of $10 billion, actual investment may be lower than that.
The total capital investment will be made for acquisition of mines, land and setting up the plant and logistics.
The production could be 75% ultra clean diesel and 25% chemical naphtha. Some amount of urea, ammonia and jet fuel may also be produced, he said.
“Our initial focus will be on the domestic market. A sizeable quantity of clean diesel will be produced,” Schnell told reporters.
“India is long in diesel, the market will decide on what fuel,” he said.
He said the life of the field is 25 to 30 years. The block is expected to have 1.5 billion tonnes of geological reserves and at a peak rate the joint venture expects to produce 20 million tonnes a year of coal, in order to produce about 80,000 barrels per day of liquid oil product.
India has the world’s fourth largest coal reserves and it imports about two-thirds of its crude oil requirements.
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First Published: Fri, Jun 04 2010. 05 01 PM IST
More Topics: Tata Group | Sasol | JV | Mining | Coal |