Sasol clarifies report on ULSD market intentions

Diesel Fuel News, July 22, 2002

Sasol Oil's managing director Hannes Botha told Diesel Fuel News last week that contrary to a recent Reuters report, the company hasn't actually decided whether to retail its near-zero-sulfur Fischer-Tropsch (FT) fuels in 2004 when its fuel supply agreements with other South African refiners expire.

Currently, Sasol isn't allowed to operate a major retail fuel network, but is allowed some "blue pumps" at non-Sasol stations. Today, South Africa's average diesel fuel is around 3,000-ppm sulfur, although Sasol is making available a special 500-ppm "Turbo Diesel" through the special "blue pumps." The country's legal fuel sulfur limit falls to 500 ppm in 2006. But Botha told us that Sasol might debut an alternative near-zero-sulfur ULSD depending upon regulatory allowances, market demand, economics and ability to make the fuel widely available -- not just in the interior "Gauteng" around Johannesburg, where Sasol's FT fuel is produced. While Botha didn't mention it , it's conceivable that GTL diesel maker Mossgas could help Sasol achieve more ULSD market coverage in coastal areas through supply exchanges. Mossgas's FT fuels plant is conveniently located at Mossel Bay.