Ikelic - Alliance Digital Repository

COAL
CORPORATIONS
SASOL MADE MAJOR MOVES INTO
CHEMICALS IN 1994
South Africa's Sasol made major advances into
world chemical markets in 1994 with chemicals
from coal. Expansions of a number of units have
taken place at the company's facilities in the last
few years, with the major focus on chemicals
rather than fuels as the final products. In 1992, a
significant rejuvenation of Sasol One provided a
substantial expansion of higher value wax, paraf
fin and ammonia production in place of synthetic
gasoline, which is no longer manufactured at that
site.
Sasol One began the production of liquid fuels
and chemicals from coal in 1955, and the Sasol
Two and Three coal liquefaction plants were
brought into operation in 1976 and 1979, respec
Coal.
mina
FIGURE 1
tively, after the oil crises of that decade. The
plants are supplied by the company's own col
lieries at Secunda and Sasolburg, which between
them produce 42 million tons per year.
Sasol manufactures and markets more than
130 non-fuel products (see Figure 1).
Sasol has been receiving
based on prevailing internal crude prices, calcu
some tariff protection
lated to give Sasol a 10 percent return on capital.
Originally, this meant that Sasol received a crude
equivalent price of $23 per barrel for synthetic
crude oil.
Oil companies have been required to buy all of
Sasol's output, in return for which Sasol agreed
not to sell its synfuels on the open market.
With a healthy cash flow, Sasol has talked of its
plans to invest over $550 million in new chemi
cals projects. These "commercially sensitive
SASOL PRODUCTION OF CHEMICAL PRODUCTS
Phenosotvan
7.\ unit
SOURCE: CHEMICAL * FMG1EEFMNG NEWS
4-16
THE SYNTHETIC FUELS REPORT, JANUARY 1995