South African petrochemicals com- pany Sasol expects to spend up to $14-billion on the gas-to-liquids (GTL) plant, which would be the first of its kind in the US, Sasol CEO David Constable said at Sasol’s financial results presentation, which was held in Johannesburg last month.

Sasol announced in December 2012 that it had progressed to the front-end engineering and design (FEED) phase of its GTL facility and world-scale ethane cracker, which will be based in Louisiana, in the US.

“Despite persistent turbulence in the global context, Sasol’s ability to match and, in many instances, better the performance of the past, demonstrates the resilience that has become the company’s hallmark,” Constable said, adding that the company planned to accelerate its GTL growth on a global scale.

“We are moving forward on several fronts. In Escravos, Nigeria, our third GTL plant is close to commissioning and we are concluding the FEED phase for a GTL facility, in Uzbekistan,” he explained.

The Louisiana-based GTL plant, which will be constructed in two phases, with each phase producing 48 000 bbl/d, will convert natural gas into four-million tons of fuel a year, or 96 000 bbl/d of high-quality transportation fuel.

When completed, the GTL plant will transform Louisiana’s abundant low-cost shale gas into high-performance, low- emissions diesel and other transportation fuels.

“We believe Sasol’s proprietary GTL technology can help unlock the potential of Louisiana’s clean and abundant natural gas resources and contribute to an affordable, reliable and high-quality fuel supply for the US,” said Sasol new business development MD Ernst Oberholster.

The facility’s primary product is GTL diesel, a high-quality fuel that is virtually free of sulphur and aromatics. It is a cleaner- burning, high-performance fuel, with significant emissions reduction benefits.

“GTL diesel has a low-particulate matter, a high cetane number and looks almost like water,” he said.

Louisiana governor Bobby Jindal stated last year that the GTL facility would create more than 5 000 jobs, provide another market for south-west Louisiana’s natural gas and help the US become more energy independent.

“By incorporating GTL technology into the US energy mix, states, such as Louisiana, will be able to advance the country’s energy independence through a diversification of supply,” he noted.

Unlike other proposed alternatives to conventional petroleum-based fuels, GTL diesel can be used in existing vehicles and fuel delivery infrastructure without the need for modifications.

Value-added products, including waxes, base-oils and paraffins, will also be extracted.

Focus on Southern Africa

Engineering News reported last month that Constable used the company’s recent results presentation to unveil plans for an initiative, known as Project 2050, which he said was designed to sustain and expand Sasol’s integrated value chain in Southern Africa until at least the middle of the century.

Constable also defended the group’s globalisation strategy, which came under attack recently from the South African Communist Party (SACP), which described the strategy as a disinvestment from South Africa.

SACP general secretary Blade Nzimande said last month that Sasol’s moving ahead with its US investment was in breach of a gentleman’s agreement, reached between Sasol and the National Treasury in 2007, whereby it had committed to investing in a third coal- to-liquids refinery in return for the scrapping of plans for the introduction of a windfall tax.

Following the release of strong financial results for the year to June 30, which were underpinned by record operating profits from its South African energy cluster, Constable said Sasol’s commitment to the region remained firm and that its US investment plans would not weaken that commitment.

He also argued that Sasol’s future investments in the region could well be more than the $16-billion to $21-billion planned for investment in the US between 2014 and 2020 and that accelerating GTL growth internationally was but one of five strategic drivers.

Improving and expanding its existing asset base in Southern Africa had also been identified as a key strategic priority, with several projects, collectively clustered under Project 2050, either under investigation or being implemented.

The life-extension plan will hinge materially on the securing of sufficient coal and gas feedstock to sustain the Southern African assets, but Sasol is optimistic that there is sufficient coal in the Secunda area to continue until at least 2050. The company is also hoping to introduce more gas from domestic or regional sources.

The group currently imports gas from southern Mozambique through a pipeline linked to its facilities in South Africa. However, it is unlikely to move entirely to gas, owing to the economics and logistics of its Secunda facility.

The group has approved investments of R14-billion for the development of the Impumelelo and Shondoni collieries, which will replace coal from Sasol Mining’s older mines and should begin producing in 2014 and 2015 respectively.

Constable also stressed that, in 2013, 59% of its R32.3-billion in capital investment was directed towards South African projects and that the country would continue to receive the bulk of its investment in the coming two years, as the group expects to invest R42-billion in capital projects in 2014 and R50-billion in 2015.

Automation

Process automation services and technologies company Emerson Process Management won a contract in July to automate Sasol’s integrated GTL facility.

The automation programme’s overall scope – including dozens of integrated process units and more than 100 000 measurement and control points – makes it one of the largest contracts Emerson has been awarded.

The company will provide the majority of the process automation technologies, engineering and ongoing support services for the operations under a long-term agreement.

The two companies will work closely together to chart ongoing automation activities shaped by the facili- ties’ performance.

“We were seeking a trusted partner to execute the key automation portion of this programme,” said Sasol mega projects executive Johan du Preez, adding that Emerson has the expertise, technologies and experience, particularly with regard to large, complex projects, to help Sasol improve the return on this investment for years to come.

Emerson’s automation solution for the Sasol plant is based on its PlantWeb digital plant architecture, which includes its industry- recognised control and safety systems, control valves and measurement and analytical instruments.

“We are excited to work with Sasol to bring these facilities on line. This project will tap natural gas supplies to generate high-value products and help grow the economy. We will work hard to maintain the trust that Sasol has shown in our people, processes and technologies,” Emerson Process Management president Steve Sonnenberg added.

The company plans a significant service facilities and personnel expansion with the development of a global service centre, in Gonzales, Louisiana.