'The technology works'
By: Terence Creamer
Published: 26 Oct 07 - 0:00
engineeringnews.co.za
Apart from safety, Sasol has identified the ramp-up of the Oryx gas-to-liquids (GTL) project, in Qatar, as its main priority for the short- to medium-term. The $1-billion, 34 000 bbl/d investment, which is being pursued in joint venture with Qatar Petroleum, is to
showcase the promise and potential of the group's 'breakthrough' GTL technology. However, earlier this year, the JSE- and NYSE-listed company reported that it was experiencing higher-than-anticipated production of fine material, which was
choking its filtration systems and constraining the ramp-up.
Engineering News Editor Terence Creamer spoke to Group GM Lean Strauss, who has overall responsibility for the
internationalisation of the GTL technology, about the project, and whether the setback had in any way dampened its enthusiasm, and that of its partners, for the further deployment of the technology elsewhere. Below is a transcript of the conversation.
Can the setbacks that you have had at Oryx be simply put down to teething problems, or are they more fundamental than that?
Lean Strauss: It is mostly teething problems related to the scale-up from demonstration to full-scale production. We have already demonstrated that we can implement the mitigation actions fairly quickly. The issue of the fines should be seen in context. We planned to produce fines but were surprised by its magnitude when we started up the plant. The fines production is declining rapidly from earlier peak levels but is still above desired levels.
One, now and then, still reads commentary suggesting that the problems are more fundamental. Are you satisfied that Sasol is really on top of this issue?
Lean Strauss: I can state categorically that the technology works. We are able make the final product according to planned specification and quality.
But can you take it to the nameplate of 34 000 bbl/d?
Lean Strauss: This is the current focus of the ramp-up. If you consider how long it took us to start up Sasol Two and Three, then, comparatively, we are not doing all that badly. Oryx GTL is a highly complex and technologically advanced plant. It is also the first of its kind in the world. We are making good progress in securing additional filtration capacity, which will be installed in February, and this should become operational by March 2008. Further additions to enhance capacity will be ready by mid-2008.
Until you have done that, then, you cannot really say you will be able to ramp up to nameplate capacity?
Lean Strauss: That's correct. But so far, we have run both trains individually and in October we plan to operate them in parallel, which clearly accelerates the ramp-up.
As a 'poster child' for GTL, is everyone now nervous?
Lean Strauss: We are not nervous at all. We have an excellent reputation for implanting our project successfully. I want to emphasise that we are ramping up every day and we are getting more confident as we increase production. So from a technology perspective, we are as confident as ever.
Will Oryx still be your best advert for GTL?
Lean Strauss: It will be Sasol's showcase to the world and we are geared to deliver.
Are the Qatari's supportive of that aspiration?
Lean Strauss: I must stress that Qatar Petroleum has always been extremely supportive and understanding. That is not to say that they are not pushing us hard to increase production as fast as possible.
How has the market responded to the products produced at Oryx?
Lean Strauss: We are encouraged by the market's interest in the products and premiums that we are achieving.
How significant are the market premiums?
Lean Strauss: That is commercially sensitive. While the quality of competitors' fuels has improved significantly in recent years, especially as far as sulphur reduction is concerned, the superior quality of our GTL fuel still commands a premium.
If you did it all again, would there be any differences in your approach?
Lean Strauss: I think we would have been less bold on providing specific time- frames. We have to give ourselves time to ramp up production for large and complex projects. A ramp-up, from start-up to full production of 12 to 18 months is not uncommon in projects of this scale and complexity.
Postscript: In an interview with the Financial Times in early October, Sasol CE Pat Davies said Oryx should fully meet its capacity of 34 000 bbl/d by July next year
Edited by: Creamer Media Reporter |
