South Africa's Sasol the world largest producer of fuels from coal plans to raise power generation capacity at its Secunda operation to 800 MW by 2011.

Sasol's operation in Secunda, east of Johannesburg, converts coal and natural gas into synthetic transportation fuels such as petrol, diesel and jet fuel and chemicals.

Mr Piet van Staden an executive manager at Sasol said the company was already producing 200 MW of power from open cycle gas turbines in an effort to reduce reliance of power supply by state utility Eskom.

He said that Sasol plans to capture steam from the same turbines to generate an additional 80 MW and the project would be completed by mid 2011.

The company said the total budget for the gas turbines project was ZAR 2.5 billion (USD 360.6 million). Sasol, which requires 1,500 MW per day to run all its operations, has been generating an average 500 MW. Staden also said group Sasol was considering building a 140 MW power plant in Sasolburg, southwest of Johannesburg.

Mr Piet van Staden, an executive manager at Sasol told reporters that "We are investigating a 140 MW gas fired power (plant) at Sasolburg that will be for our own use.”

The government said power supply in South Africa, which suffered a major power crisis in 2008, remains very tight, with a deterioration expected from 2011 until 2016. This has prompted several companies in South Africa, the continent's largest economy, to seek ways of producing power through co generation

(Sourced from Reuters)