Sasol agreed to sell the world’s largest oxygen production site in Secunda to Air Liquide in France for around 8.5 billion rand, as it has assets to pay debts and a bonding issue.
Read: Sasol’s debt reduction program is on the way
Sasol, the world’s largest manufacturer of coal-based engine fuels, said Wednesday that it had reached an agreement to sell the 16 air separation units, which have a capacity of 42,000 tons consistent with the day and produce oxygen for their fuel and chemical production processes. like gas.
The move is part of Sasol’s preference to sell its assets amid the coronavirus crisis and falling oil prices, which have left the company, which already suffers with a massive chemical allocation in the United States, potentially facing a $2 billion rights problem.
Air Liquide, a commercial fuel company that has been in operation since 1979 and already owns and operates some other air separation unit, has announced that it will launch a multi-year facility modernization plan.
“(The transaction) will allow Air Liquide and Sasol to continue with their core business, combining operational power and reducing CO2 emissions,” said Benoit Potier, President and CEO of Air Liquide, which will supply fuel to Sasol if the transaction materializes on the front lines.
Sasol added that corporations aim to negotiate final deals until mid-August, and the deal is expected to close in fiscal year 2021.
This is an initiative for Sasol and South Africa. It will also inspire Air Liquide to invest more and expand in South Africa. It’s a win-win deal!
That’s wonderful news. However, how much will you charge Sasol in the long run for not having your own oxygen supply, which is for your fuel carbon operations?
You win and you lose.
Much less. Air Liquide will take care of the maintenance and maintenance of oxygen trains. In addition, I am sure they will have an agreement on the fence that would allow sasol to pay for the oxygen used and have to buy it on site.
What trains? Oxygen plants are found in Sasol’s facilities and oxygen is the vital element of reactors. This isn’t smart for Sasol.
Very intelligent movement. Also, don’t be surprised if Sasol meets the CO2 criteria without those air separation sets. Secunda’s air separation equipment consumes as much electrical energy as Bloemfontein.
I Air Luquide built this plant for Sasol about twenty or thirty years ago.
Two concrete examples … First, promoting “crown jewels” is a survival tactic of last resort, not necessarily a strategic decision. Secondly, as one of the world’s largest participants in carbon emissions, is Secunda a commercial that can be saved … a time bomb in my opinion?
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