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Strategies & Market Trends : SASOL LTD. (SASOY) -- Ignore unavailable to you. Want to Upgrade?

To: IPOJunkie who wrote (14)	5/15/1998 7:15:00 PM
From: John M	Read Replies (1) \| Respond to of 27

Here is some more good stuff I received from SASOL by E-mail. It appears that they will use their cobalt catalyst instead of iron in Nigeria and Quatar. "Dear Mr. John I am responding to your e-mail dated 23 April. Most of the questions you have asked form part of a detailed feasibility study and the answers vary from case to case. I note that you are considering a 2 000 bbl/day plant. In our experience, the minimum economic size is a 10 000 bbl/day plant. And, in fact, we prefer to work with plants of the capacity of at least 20 000 bbl/day, such as the projects planned for Qatar and Nigeria. At this capacity, due to economy of scale, the cost works out to be in the order of $25 000 / bpd. Sasol has a continual R&D program which is working on improvements to the process which will bring the capital cost down. However, I do not see that in the foreseeable future it will be possible to build a 2000 bbl/day plant for $20 000 / bpd. The operating cost is a direct operating cost and the $5/bbl includes costs such as catalyst, labour and maintenance. It does not include financing costs, depreciation, owner's costs, etc. Generally we've been looking at a product slate of diesel and naphtha with about 20% naphtha and 80% diesel. If a kerosene cut is also required then the quantity produced would depend on the specification required. Sasol has developed a cobalt catalyst for the Fischer-Tropsch step in the process. This catalyst will be used for all of our international applications of our process. Sasol is still relatively new in the international arena. As part of our globalisation strategy, for the first few projects we are taking the stance that we prefer to be a partner in viable ventures. However, this may change in the future. I trust that I have supplied you with sufficient information for your current evaluations. If you have any further questions, please feel free to contact me. Yours sincerely Belinda Lutz Senior Business Analyst Sasol Synfuels International e-mail: synfuels.technology@sasol.com fax: +27 11 441-4316"

To: IPOJunkie who wrote (14)	5/16/1998 3:33:00 PM
From: John M	Read Replies (1) \| Respond to of 27

IPO, Sorry for not getting back sooner. Cobalt catalysts are poisened by H2S and or sulfur compounds. There are many ways to remove these compounds from the feed stream before they become syngas and feed the FT reactor. The most notable application is for refinery bottoms. The bottoms (such as petroleum coke or asphalt) contain up to 5% sulfur by wieght. In a steam reforming process to gasify the material, H2S is made from reaction of sulfur and hydrogen. H2S is removed in an amine/claus plant (technology been around for many years and is perfected). The H2S is converted to sulfur in this process and tankered off for sale. The remaining syngas is free of impurities and ready for FT. There are other ways to form the H2S as well and to remove them. Really not an issue. Both iron and colbalt FT systems require that the sulfur be removed before the FT reactor. There is really no difference. JCM