Current Edition >> Archives Section >> Leading Stories >> October 2004
It has been announced that petrochemicals group Sasol, which has practically started from scratch on the Free State highveld half a century ago, plans to invest a record amount of R15 billion in capital projects in its 2005 financial year. Of this, about 70% will be invested in Southern Africa, which means that the company will remain the sub-continent's largest investor in fixed infrastructure.
Sasol will spend between R6 billion and R7 billion on Project Turbo in the 2005 financial year, a mega-initiative to comply with cleaner fuels legislation scheduled for implementation in South Africa in 2006. Besides enabling the company to produce lead-free fuel as required, the project will also boost the production of chemicals, as it will allow Sasol to yield an additional 450 000 t/y of polymers.
Some of the other projects to be undertaken, include the completion of the group's conversion of its facilities to use natural gas as a feedstock, which will cost about R600 million. Sasol will also spend a significant amount in the 2005 financial year on bringing its third octane plant online by 2006.
The money to be invested abroad will mainly go towards financing projects in the Middle East, where the group is partnering petrochemical companies in Qatar and Iran to establish new multimillion-dollar plants. These projects comprise the $900 million Oryx gas-to-liquids plant in Qatar, as well as the Arya Sasol Polymers plant in Iran, in which Sasol is investing $470 million.
Sasol CEO Pieter Cox said that 2004 has been a momentous year for the group, with milestones including the arrival of natural gas in South Africa, the establishment of a liquid fuels business with Exel Petroleum and the creation of a Sasol-branded retail network. In addition, the group announced its anticipated joint venture between its liquid fuels business and fuels retailer Engen.
In another development, the group aims to enter into a memorandum of understanding with China before the end of the year to conduct a pre-feasibility study into the expanding its coal-to-liquids technology.
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