Mossgas, the South African state-owned gas-to-liquids producer, has awarded the engineering, procurement and construction contract for its new R135-million low aromatics distillate plant to Foster Wheeler South Africa. The plant, which will be built on Mossgas’ existing premises at Mossel Bay, will produce 70,000 tons of environmentally friendly low aromatic diesel and kerosene per annum for the export market.
Work on the project, which is scheduled to go into production in October 2002, began in April. The Institut Francais du Petrole is the process licensor for the project.
The project will consist of a low aromatic distillate production facility and new tanks at the Mossgas refinery as well as at Mossgas’ Voorbaai tank farm. A 2-kilometer subsea pipeline from the tank farm will transport products to the company’s existing conventional buoy mooring for loading into tank ships.
The products are synthesized from a range of olefins and are essentially odorless, colorless, smokeless and sulfur-free.
The low aromatic products are expected to command substantial premiums over the local fuel price of diesel and kerosene. The American and European markets for drilling fluids, solvents, specialty chemicals and indoor heating and lighting will be targeted initially.
The project is expected to earn South Africa foreign exchange of up to US$30 million per year. It will also double Mossgas’ present export revenue to more than R500 million per year at current exchange rates.
Mossgas already exports 120,000 tons of anhydrous alcohols annually to markets in Europe, the East and the Americas. The alcohols are used in solvent blends, paint thinner formulations, de-icing and windscreen wash applications in sub-zero temperature conditions and as a carrier in the printing ink industry.
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