SASOL
SASOL
2018 Starts Brightly for the Energy Innovators PRODUCTION: Timothy Reeder
An international integrated chemicals and energy company, Sasol leverages technologies and the expertise of its 30,000 people to produce a range of high-value product streams which include liquid fuels, chemicals and low-carbon electricity. The start of 2018 has seen a continuation of its spirit of endeavour and innovation to secure some superb results already.
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Formed in 1950 in Sasolburg, Sasol has long been considered a pioneer of oil-from-coal technology, and is widely recognised as responsible for shifting the petroleum paradigm on a global scale. Sasol has used the combined weight of its knowledge and experience to become one of the most highly regarded manufacturers of industrial chemicals worldwide, largely thanks to its ability to leverage technologies and by effectively employing the expertise of its staff currently working across 33 countries. By combining this talent with its technological advantage, Sasol has been a leader in innovation for over six decades now.
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In order to continue to deliver longterm shareholder value sustainably, Sasol has had to be especially sensitive to changing market needs and stakeholder expectations, and as such invest heavily into the development and updating of its methods, facilities and products to ensure progress. As a result, Sasol is frequently spoken of as one of the country’s largest investors in capital projects, skills development and technological research and development. What drives Sasol is a recognition of the growing need for countries to secure their supply of energy and chemicals, and for many, specifically those with abundant hydrocarbons, incountry conversion of these resources
into liquid fuels and chemicals goes a long way toward boosting national economies. With concerns around energy and fuel more pressing now than ever, it has been a frenetic start to 2018 for Sasol, with its spirit of enterprise and innovation burning as bright as ever at the dawn of a new year. Paris-based Air Liquide is a giant in its own right, the multinational world leader in gases, technologies and services for industry and health and present in 80 countries, with approximately 65,000 employees serving its more than three million customers and patients. In South Africa, Air Liquide production facilities are situated in the three main industrial hubs, namely in Gauteng, KwaZulu-
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INDUSTRY FOCUS: ENERGY
Natal, Eastern and Western Cape with over 20 national branches strategically located to serve its customers. The inauguration by the French company of the world’s largest oxygen production unit at the beginning of the year represented the continuation of a strong partnership with Sasol, with investment to the tune of around €200 million paving the way for the construction of an Air Separation Unit (ASU) in Secunda, where the world’s only commercial coal-based synthetic fuels manufacturing facility is operated to produce synthesis gas through coal gasification and natural gas reforming. The ASU has a total production capacity of 5,000 tonnes of oxygen per day - equivalent to 5,800 tonnes per day at sea level. Part of this project’s significance is in its representing the first ASU that Sasol has chosen to outsource to a specialist of industrial gas production at the Secunda site, where Secunda Synfuels Operations receives coal from five mines in Mpumalanga. This only serves to underline the importance of the long-term relationship between the two parties. The start-up of the
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air separation unit, which supplies Sasol with large quantities of oxygen used for the production of fuels and chemicals, represents a new milestone in the partnership between Air Liquide and Sasol and brings the number of ASUs delivered by Air Liquide over the last 40 years to 17. The new ASU has been completed to schedule in under three years from design to commissioning, and also provides Air Liquide with a new source of liquid gases to allow it to supply the growing industrial gas market in South Africa. François Jackow, a member of the Air Liquide Group’s Executive Committee supervising Middle East and Africa, commented on the importance of the successful start-up. “We are proud to be consolidating a strategic partnership built on trust and long-term commitment with Sasol. This project illustrates Air Liquide’s capability to manage very large innovative projects. This new unit sees, for the first time, Sasol outsource its oxygen needs at its Secunda site, confirming our leadership in oxygen production technology as well as our commitment to contribute to
South Africa’s economic and social development.” In addition, Bernard Klingenberg, Sasol’s Executive Vice President, Operations, underscored the strength in unity the partnership offers. “The successful start-up of this world class ASU unit cements Sasol’s long-standing strategic partnership with Air Liquide, bringing first rate oxygen supply expertise and long-term reliability to our Secunda operations. Furthermore, this important milestone ensures that our integrated Southern African value chain provides a robust platform for Sasol’s long-term growth and sustained contributions to the country’s economy.” Sasol’s own economic outlook is also looking stronger than ever, as it indicated at the end of January that its second-half results would be positively affected should the recent rise in oil prices to levels approaching $70/bbl be sustained for the remainder of its financial year. “We have seen a steady increase in most commodity chemical prices,” Sasol remarked, “and despite the volatile macro-economic environment, average margins for most of our specialty chemicals products increased over the first six months ended December 31, 2017.” It is such results that have prompted David Shapiro of Sasfin to label Sasol, “the big star in miners,” at the beginning of this year. “Investors are getting excited about their Louisiana project,” he continued, referring to the world-scale petrochemical complex near to Sasol’s existing site in Southwest Louisiana. The $8.9 billion project will roughly triple the company’s chemical production capacity in the U.S. and enable it to build on its strong positions in robust and growing global chemicals markets. “I think with both the oil price and chemical prices going up, people are turning their attention back to Sasol,” he concluded.
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AFRICA
THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS
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February 2018
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