https://www.engineeringnews.co.za
Africa|Business|Efficiency|Gas|Petrochemicals|Service|Operations
Africa|Business|Efficiency|Gas|Petrochemicals|Service|Operations
africa|business|efficiency|gas|petrochemicals|service|operations

Sasol, Air Liquide enter into sales agreement for ASU business

10th September 2020

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

Petrochemicals giant Sasol South Africa has announced that it and Air Liquide have concluded negotiations for the proposed R8.5-billion sale of Sasol’s air separation units (ASUs) at the company’s operations in Secunda and the parties have now entered into a sale of business agreement.

Sasol has 16 ASUs on site and related assets with a combined capacity of up to 42 000 t/d of oxygen. The units provide oxygen for Sasol’s fuels and chemical production processes in Secunda. The ASUs also produce various other gases used at Secunda, and rare gases are sold externally.

Air Liquide already owns and operates a seventeenth ASU unit, while the other units will be taken over no earlier than December 1.

The employees related to the ASUs will be transferred to Air Liquide as part of the agreement.

Air Liquide will continue to supply various gases to Sasol’s operations under a long-term gas supply agreement, with an initial term of 15 years.

Sasol says Air Liquide’s expertise will allow, in coordination with Sasol, a targeted reduction in greenhouse gas emissions associated with oxygen production over time.

In addition to the sale agreement and the gas supply agreement, Sasol and Air Liquide also entered into various ancillary service and lease agreements, which will enable Sasol to sell key utilities to Air Liquide to enable continuous gas production.

The sale of the ASUs forms part of Sasol’s divestment programme announced in March. The company determined that selling the ASUs is an opportunity to deliver upfront cash proceeds, while contributing to improved efficiency and decarbonisation at the Secunda site.

Sasol would have spent between R8-billion and R12-billion over the next 15 years to sustain reliable ASU operations and to decarbonise.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.077 0.132s - 144pq - 2rq
Subscribe Now