From Creamer Media in Johannesburg, this is the Real Economy Report. In the largest single investment made by a local industrial gas company in the past decade, gas provider Air Products South Africa recently celebrated the launch of its new R800-million air separation unit, or ASU, at the company’s Vanderbijlpark facility, in Gauteng. Engineering News Online’s Natalie Greve has the story.

Natalie Greve:
Construction of the ASU, dubbed the G-Plant, was driven by intensifying demand for industrial gases by energy group Sasol, and represented an expansion of Air Products’ existing long-term supply contract with the petrochemicals giant’s subsidiary, Infrachem.

The new plant would supply the Sasol One Site Expansion Programme, in nearby Sasolburg, with pipeline gaseous oxygen and nitrogen in response to increased feedstock requirements, which would see the energy company receiving up to 80% of the plant’s production capacity of over 2 500 t/d.

While Sasol would remain the anchor customer of G-Plant in terms of a long-term “over-the-fence” supply contract, the balance of the gaseous and liquid product – comprising gaseous oxygen, nitrogen and argon – would service other markets, including Air Products’ other pipeline networks, as well as bulk and packaged gas customers.

G-Plant is the sixth ASU plant to be commissioned at the Vanderbijlpark site and the fifteenth to be commissioned nationally by the industrial gas provider, as MD Mike Hellyar explains.

Air Products MD Mike Hellyar

Natalie Greve:
Sasol Infrachem MD Louis Fourie added that the commissioning of the G-Plant not only provided the energy group with long-term security of supply, but also enabled it to diversify its sources to include both on-site and off-site sources of gas.

Sasol Infrachem MD Louis Fourie

Natalie Greve:
Described by Air Products as a “significant addition” to what was already the largest dedicated industrial gases manufacturing facility in South Africa, the three-year construction of the unit formed part of an overall long-term capital investment pipeline by the company of just under R2-billion.

Air Products had commissioned eight ASUs in the past ten years, with two currently under construction, including its new plant in the Coega Industrial Development Zone – the first of its kind in the region.

Also speaking at the launch, Trade and Industry deputy director-general Garth Strachan lauded the company’s project development agenda, adding that construction of the Coega-based and Vanderbijlpark-based facilities contributed towards the country’s industrialisation ambitions.

Trade and Industry deputy director-general Garth Strachan

Shannon de Ryhove:
Other news making headlines this week: BMW’s new technology helps you stay connected; and, health and safety group EHS Support homes in on African oil and gas prospects.

BMW South Africa has launched a new suite of technology that promises its customers improved and wider in-car connectivity, starting in July.

Video courtesy of BMW South Africa

International environment, health and safety solutions specialist EHS Support has entered into a definitive agreement with local consulting company Prime Africa Consultants to develop a footprint in South Africa, and ultimately Africa, for its US and Australian oil and gas clients.

EHS Support chief technical officer and VP Nigel Goulding

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.