A new era for Sasol
A new era for Sasol
Briefing the Portfolio Committee on Trade and Industry on Beneficiation
2 September 2014
A new era for Sasol 2
Presentation overview
1. Sasol today
2. Our beneficiation process, our products and downstream input
3. Sasol strategy - strongly aligned with the National Development Plan
4. Lessons learnt
Sasol forecourt, Secunda Lake Charles, Louisiana
A new era for Sasol
A new era for Sasol
Sasol today
A new era for Sasol 4
Our global presence
Where we operate
This map is a broad indication of Sasol’s global presence and of its continuing operations, but is not location-specific.
Sasol has a presence in 37 countries across the world comprising a combination of exploration,
development, production, marketing and sales operations
A new era for Sasol 5
A product of South Africa’s success
• An integrated energy and chemical company, with 64 years
experience in coal-to-liquids (CTL) and gas-to-liquids (GTL)
technology
• Global leader in GTL and CTL - world’s largest producer of
synthetic fuels
• Strong intellectual property portfolio (490 registered patent
families)
• Nurture and grow strategy - maintaining and enhancing SA
business and exploring growth opportunities in Africa
• Proudly flying the South African flag as we pursue growth
opportunities in the region and abroad
34 000 directly employed
R800m invested in
infrastructure
Listed on JSE (SOL)
and NYSE (SSL)
R95bn spent in South Africa
over last 5 years
SA capital spend – R19,8bn
(59%)**
* *For year ended 30 June 2013
A new era for Sasol
A new era for Sasol
Our beneficiation process, our products and downstream input
A new era for Sasol 7
Explosives
Fertilisers
Innovative technology and an integrated value chain
– delivering real value through beneficiation
A proprietary version of Sasol’s low temperature
Fischer-Tropsch (FT) process using an advanced
cobalt catalyst, converts synthesis gas into waxes
and related petrochemical streams for producing and
marketing waxes and diesel.
The proprietary Sasol Advanced SyntholTM
Reactor (SAS) at the heart of the high
temperature version of Sasol’s FT process used
at Secunda, produces a synthetic form of crude
oil and chemical feedstock.
Lower-carbon electricity allows us to
cumulatively generate up to 69% of
our total internal electricity
requirements in South Africa.
1 2 3
Ex
plo
rati
on
an
d p
rod
uc
tio
n
Ma
rke
tin
g o
f p
rod
uc
ts
Coal-to-liquids (CTL) process
2
gasification
Co
al
Syngas syncrude
SASTM reactor
High temperature
Cru
de
oil
Gas engine
power plant 3 Our products
Fuel products:
GTL diesel
GTL naphtha
GTL kerosene
LPG
Chemical products:
Olefins
Polymers
Solvents
Surfactants
Co-monomers
Ammonia
Methanol
Crude tar acids
Sulphur
Fuel products:
Petrol
Diesel
Liquid Petroleum Gas
(LPG)
Illuminating paraffin
Bitumen
Fuel oil
Refine
and blend
Chemical
processes
Recovery and
beneficiation
Refine
and blend
Fuel
components
Chemical
components
Co-products
Fuel
components
Electricity
Gas-to-liquids (GTL) process
1
reforming
Na
tura
l g
as
Syngas
syn
cru
de
wax
Sasol SPDTM
process
Low temperature
A new era for Sasol 8
Over the last 64 years we have delivered real
value through beneficiation
Our technology innnovation allowing us to reach new frontiers
Sasol Secunda
1950
Sasol is formed
to commercialise
coal-to-liquids
(CTL) technology
in South Africa
Completion of Sasol Two &
Three Synfuels and
Chemicals complex in
Secunda
2007
First international
GTL plant, Oryx,
starts production
in Qatar
2012
Sasolburg Gas
Engine Power
Plant online
Mozambique gas
engine power plant
- CTRG
1980
2014
A new era for Sasol 9
Beneficiation resources into liquid fuels
3.5m tons of
chemicals
1000 MW of
electricity taking
pressure off the
national grid
8 billion litres
of liquid fuels results
in savings in foreign
exchange
Contributing to energy and supply security
• Supply more than 25% of South Africa’s liquid fuels from synthetic fuels
• Savings in foreign exchange generated from import replacement (petrol and
diesel)
• Being the first company in the world to get approval for fully synthetic jet fuel from
Secunda as a commercial jet fuel
• Sasol undertaking the first flight ever on synthetic jet fuel
A new era for Sasol 10
Today, our fuels, chemicals and related products benefit
millions of people in South Africa and around the world
• hot-melt adhesives
• laundry detergents
• chip coatings
• printing inks
• household and industrial paints
• mobile phone circuit boards
A new era for Sasol 11
An important input into the downstream sectors
Our chemicals and related products
• Bottles, domestic disinfectants, footwear and packaging. Polymers
• Aerosols, agricultural chemicals, cosmetics, fragrances, mining chemicals, packaging, paint and adhesives, pharmaceuticals, polishes, printing and plastics.
Solvents
• Detergents, cleaners, oil and gas recovery, paint and coatings, leather and metal processing, personal care products, lubricants, catalysts, high-performance abrasives and polymer additives.
Olefins and Surfactants
• Adhesives, bitumen modification, construction board, cosmetics, packaging, pharmaceuticals, polymer processing and rubber, candles. Wax
• Customers in Southern and Central Africa. Nitro
Organics Wax Inorganics
A new era for Sasol 12
Downstream support
• Sasol Polymers Technical Centre • Technical support
• Market development support
• Facilitating new businesses
• Sasol Fuels Testing Facility • State of the art facility
• One of only a few in the world and the only in Southern Africa
Technical support to downstream sectors
A new era for Sasol
A new era for Sasol
Our successful beneficiation initiatives – allowing us to contribute to the National Development Plan
A new era for Sasol 14
Our strategy closely aligned with South African
government’s strategic imperatives
Supporting the country’s long-term objectives
NDP imperatives
1. Job creation
2. Infrastructure
3. Environmental sustainability
4. Intra-regional trade in Southern Africa
5. Beneficiation of mineral resources and
driving opportunities that improve balance
of payments
Sasol strategy
Investing in our South African business
to create and retain jobs
Investing in community infrastructure in
and around our facilities
Developing low-carbon power generation
options focused on natural gas
Investing across the region, particularly
in Mozambique
Applying technology innovation to
beneficiate low value feedstock
A new era for Sasol 15
NDP imperative
# 1 Job creation
Investing in our South African business to create and retain jobs
• 34 000 employed directly
• 11 500 people indirectly employed through our retail network of 373 Sasol service
stations across South Africa
• 15 000 additional employment opportunities created each year on annual maintenance
shutdowns at our Synfuels plant in Secunda
• 20 000 temporary employment opportunities created between February 2009 and June
2014, during the construction periods of our various mega-projects in Sasolburg
Sasol Convenience Centre Sasol Secunda Gas-to-power plant, Sasolburg
A new era for Sasol 16
NDP imperative
# 2 Infrastructure
R800m being invested in infrastructure in and around our communities
Govan Mbeki, Mpumalanga
• Purchasing of sewer trucks for Charl Cilliers
• Construction of Leandra fire station and provision of basic equipment
• Construction of a multi-purpose centre in Charl Cilliers and Lebohang storm water drains
• Construction of eMbalenhle foot bridges and installation of public lights
• Upgrading of eMbalenhle Extension 25 sewage plant
• Upgrading of eMzinoni and eMbalenhle stadiums
• Osizweni skills and youth development Centre
Metsimaholo, Free State
• Upgrading of Nthoroane infrastructure (roads and sewage plant)
• Upgrading of the waste water treatment plant
• Upgrading of clinic in Ngwathe (Koppies)
• Installing Themba Kubheka water connections in Deneysville
• Establishment of Sisonke bricks and block manufacturing in Sasolburg
• Boithjorisong – skills and youth development centre
• TechnoX (science exhibition for schools) and VENT (arts)
A new era for Sasol 17
NDP imperative
# 3 Environment
Growing responsibly and sustainably
R2bn spent per annum for the last 10 years in ensuring environmental sustainability
• Carbon mitigation
• More than 10mtpa mitigated through introduction of natural gas
• R1.5bn Sasolburg 140MW-capacity gas to power plant
• Environmental Sustainability
• R7,5bn to support Secunda’s environmental sustainability:
• replacement of tar tanks and separators;
• the volatile organic compound abatement project; and
• the coal tar filtration east project.
• Voluntarily committed to reducing the greenhouse gas (GHG) emissions intensity of all
our existing operations by 15% by 2020 from a 2005 baseline
A new era for Sasol 18
NDP imperative
# 4 Intra-regional trade
Investing across the region especially in Mozambique
• 2014 marks the 10th anniversary of our natural gas project in Mozambique.
• R2 billion loop line - 128km of pipeline – increasing pipeline capacity to monetise 25
MGJ/a directed to Mozambican electricity markets
• Together with our partners invested more than R21 billion in developing and producing
natural gas in Mozambique.
• Together with our partners we established a viable gas industry
• Today the industry is poised to play an increasingly important role in the domestic
energy mix and regional socio-economic development
Central Processing Facility, Mozambique Gas drilling rig, Temane - Mozambique
A new era for Sasol 19
NDP imperative
# 5 Beneficiation of mineral resources
Enhancing our existing asset base while driving growth in the region
South Africa
Botswana
Namibia
• Exploring upstream opportunities
• R1.7bn exploration programme offshore
KwaZulu-Natal and West Coast
• R13bn expansion of hard wax facilities
• R1bn ethylene purification plant
• R1bn limestone ammonium nitrate
granulation plant
• R1.5bn140MW gas-to-power plant
• R1,3bn in the C3 stabilisation project
• R14bn Secunda growth
• R14bn coal mine replacement
• US$ 246 million gas-fired electricity
generation plant Mozambique
• R2bn loop line
A new era for Sasol 20
Sasol’s commitment to South Africa remains
unequivocal
Over the last 5 years more than R95bn spent in South Africa
• Our Southern Africa 2050 strategy will ensure that we remain a leading industrial
company in the country, headquartered in Johannesburg
• Our international shale gas experience can also benefit South Africa
• We are exploring growth opportunities in the region, which will contribute to socio-
economic development
• We continue to leverage our home-grown technology • contributing to the National Development Plan
• flying the South African flag abroad
Ethylene Purification Unit 5, Sasolburg Artist's impression of Sasol’s new global headquarters, Sandton
A new era for Sasol
A new era for Sasol
Lessons learnt
A new era for Sasol 22
So what have we learnt?
• Continuous investment in R&D – leading technology
• Partnerships – government, technology companies, academic institutions
• Enabling regulatory framework
• Capital investment
• Access to feedstock – upstream (coal, gas, oil)
• Infrastructure and utilities
• Significant investment in skills development
• Energy security
• Protect balance of payments
• Job creation
A new era for Sasol
A new era for Sasol
Thank you