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Sasol gives update due to low oil price

Sasol have just stuck out an announcement, something that I guess was to be expected a little. In response to lower oil prices, the decision with regards to give the final phase of the Louisiana investment, the gas to liquids plant (and not the Ethane cracker, that part IS going ahead) has been put on the back burner. David Constable said in the release: Albeit at a much slower pace, we will continue to progress the U.S. GTL facility. This will allow us to evaluate the possibility of phasing in the project in the most pragmatic and effective manner. The Sasol share price is up over two percent, even whilst the oil price is falling, this is quite possibly a response from the market suggesting that the dividend is going to be OK, for the time being. I guess it is not great news for global expansion, it is a reminder that their prospects in the medium term are determined by energy markets.


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