Natref to spend R600m

Sasol holds a 63.64% stake in Natref and French petroleum group Total holds the remaining 36.36% interest.

The 236-ton reactor would allow Natref to remove six times more sulphur from diesel in compliance with new regulations that require a lower-sulphur diesel from January 2006, Sasol said.

Sasol and Total are committed to producing cleaner liquid fuels and the new reactor was part of a programme to reduce atmospheric pollution at all of Sasol's operations worldwide, Sasol Chief Executive Pieter Cox said in a statement.

The new reactor would give Natref the capacity to reduce its current sulphur dioxide emissions by about 40%, Cox added.

The new reactor will produce low sulphur diesels, which would significantly reduce sulphur dioxide emissions from vehicles, and this in turn would result in improved ambient air quality, Cox stated.

Sulphur pollution results in respiratory problems for humans and when it gets into the atmosphere it results in 'acid rain'.

'Acid rain' is caused by sulphur from impurities in fossil fuels and nitrogen from the air combining with oxygen to form sulphur dioxide and nitrogen dioxide.

These diffuse into the atmosphere and react with water to form sulphuric and nitric acids, which are soluble and fall with the rain.

Independent air emission studies conducted prior to approval of the project indicated that estimated sulphur dioxide emissions from diesel driven vehicles in the Vaal Triangle alone amount to slightly less than two tons per day, Sasol said.

This figure was conservatively expected to reduce to about 0.5 tons per day, once the diesel fuel specifications are implemented, the group added.

The additional de-sulphurisation capacity would enable Natref to produce diesel that contains 500 parts per million (ppm) sulphur, which was significantly lower than the existing sulphur specification in diesel of 3,000 ppm.

Natref, South Africa's only inland crude oil refinery, produces and refines heavy crude oil into petrol, diesel and other white products such as commercial propane, jet fuel, different grades of bitumen and fuel oils.

The plant refines up to 107,000 barrels per day of fuel.