PHOTO: Ethylene Purification Unit – Sasol Polymers’ R1.9-bn investment in the EPU5 plant, together with a new compressor unit in Secunda, will enable it to produce an additional 47 000 tons of polyethylene annually

SASOL unveiled its new EPU5 ethylene purification unit – a R1.9-billion venture which will enable it produce an additional 47,000 tons of polyethylene a year – at Sasolburg in January.

The EPU5 plant has been in operation since mid-October and is expected to reach its nameplate capacity by 2017.

Located at the Sasol Polymers Plant in Sasolburg, the R1.9-billion ethylene purification unit aims to address the growing demand for polyethylene. The plant will also ensure better use of Sasol’s existing downstream polyethylene facilities.

“Through the installation of the new ethylene splitter, considerable production capacity has been freed up to produce more ethylene. In so doing, our investment in EPU5, together with a new compressor unit in Secunda, will provide the South African plastics manufacturing industry with an additional 47 000 tons of polyethylene annually,” said Sasol Limited chief executive officer David Constable.

EPU5 is already in operation phase. Half of the additional 47 000 tons of polyethylene will be reached within the next six months, while the plant is expected to reach full capacity by 2017.

“The South African plastics industry is a significant contributor to the national economy. Local demand for polyethylene polymers continues to grow at a rate of 4 to 5% annually. With a rise in new plant capacities and the need to be globally competitive, we recognised the necessity to expand both polymer and ethylene production,” said Marinus Sieberhagen, managing director of Sasol Polymers.

The impetus for the major project came about as a result of the inability of the previous venture, ‘Project Turbo,’ to produce the required quantities of ethylene.

Ethylene is produced at Sasol’s coal-to-liquids plant at Secunda in Mpumalanga, 170kms to the east, and piped over via three lines to Sasolburg.

The plant was also designed to reduce hydrocarbon flaring, which reduces the carbon footprint of Sasol’s total ethylene production capacity in South Africa.

Local engineering and construction service providers were sub-contracted to execute significant portions of the work. This amounted to approximately 4,6 million man hours worked and resulted in all-important knowledge transfer and skills development in construction and advanced welding techniques.

“At the height of construction, we were able to create 1000 construction jobs, predominately sourced from the local community in Sasolburg. For us at Sasol, this project not only illustrates our unwavering focus on unlocking the full potential of our chemical assets, but it also demonstrates our commitment to our customers to ensure improved supply, and our belief in, and support for, the communities in which we live and work,” said Constable.

 

Creating an advantage for manufacturers

Dr Rob Davies, the Minister of Trade and Industry, said the government wanted to see Sasol “emerging as a South African champion”.

“We need to see investment flowing into the productive sectors of the economy, particularly the manufacturing sector. We need to move towards industrial development and diversification,” said Davies, adding that it was necessary to create competitive advantages for manufacturers. Since manufacturers no longer enjoyed the advantage of cheap electrical energy, which was the case before the 1990s, the DTI was looking at possibilities. He suggested that the region’s mineral resources offered potential, by making these available to manufacturers at a price advantage for manufacturers.

The government has spent a massive amount, in the region of R3-trillion, over the past 20 years since 1994, on infrastructure development and was intent on continuing on this course.

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