industry solutions for downstream challenges · 2 contents downstream challenges introduction to...

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David Constable - Sasol Limited

20th World Petroleum CongressIndustry solutions for downstream challenges

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Contents

Downstream challenges

Introduction to Sasol

Global trends and Sasol’s response

The GTL and New Energy model

Partnership delivering value – the Mozambique gas project

ORYX GTL – a perfect platform for growth

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Drive for cleaner fuelsand reduced emissionsfrom regulators


Desire for improvedefficiency and performance by customers

Growing expectationsfrom shareholdersand stakeholders

The downstream ability to deliver technologies that offer cleaner, cost effective and more energy efficient solutions will define the 21st century...

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> Sasol is an integrated energy and chemicals company

> The world’s largest producer of synthetic fuels

> World leader in gas-to-liquids (GTL) and coal-to-liquids (CTL) technology

> 60 years’ experience in CTL, GTL and related technology

> Operating and technical expertise

> Strong intellectual property portfolio (372 registered patent families)


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GTL/CTL technology (LT or HT)

Fuel components

Co-products

Chemical feedstock

Refining and blending

Chemical workup

Recovery and beneficiation

Exploration and production of feedstock• Coal• Gas• Oil

Crude oil – open market purchases

Chemical feedstock – third party producer

New Energy New Energy

Syngas production Marketing

of products

Our integrated business model

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Global GDP has recovered to above pre-crisis levels,but growth is primarily driven by developing countries

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110

130

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2005 2006 2007 2008 2009 2010 2011F

GD

P in

dex

Historic GDP Index (including 2011 forecast) (2005 as base year)

Emerging and developing nations GDP Advanced nations GDP World GDP

Advanced economies only likely to exceed pre-crisis GDP levels in 2011

Source: IMF, own calculations

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Global economic recovery has been underpinnedby growth in emerging markets

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0

3

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2005 2006 2007 2008 2009 2010 2011F

GD

P gr

owth

(%)

Regional and world GDP growth (% growth y/y)

Advanced nations GDP Emerging and developing nations GDP World GDP

Source: IMF, own calculations

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Emerging trends

> Global energy usage is shifting from oil to gas and renewables

> With advent of shale and other unconventional gas resources, gas could be the bridge to new energy for next ~30 years

> Coal maintains its share of energy supply

Global trendsThe twenty first century – ‘century of gas’

Source: BP Statistical Review

Global energy fuel mix (%)50

40

30

20

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1970 1990 2010 2030

Oil

Coal

Gas

HydroNuclear

Renewables

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Global trendsSasol’s response

De-link of oil/gas price ratio creates a window for GTL and other gas based projects

World population increases by up to 50% by mid-century –increased demand for chemical products

Pressure of carbon intensity

• Downstream chemicals businesses

Sasol New Energy will be developing options and new technologies for Sasol in a carbon and water constrained world

• Opportunity to acquirefurther shale gas

• GTL opportunities

Sasol recently acquired 50% of Farrell Creek and Cypress A shale gas assets in Canada

• Focus is on low- orno-carbon electricity

• Accelerated exploration in southern cone of Africa- Mozambique, Botswana

Sasol studying world-scale ethane cracker opportunity in the USA

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> In 2011 chemicals generated one third of group operating profit

> Chemicals provide a balance to Sasol’s GTL portfolio, and are less dependent on oil/gas ratio

> Optimising integration opportunities spreads risk and maximises value

> Some Sasol chemical businesses have established competitive market positions

> Selected chemicals are forecasted to grow at 1,2 – 1,5 times GDP

> Our chemicals businesses benefit from the group’s innovation

Sasol’s responseThe role of chemicals

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Sasol patented and commercialised the selective production of 1-octene in 2010

> Next generation tetramerisation technology already in progress

> Construction underway of state-of-the art tetramerisation unit in Louisiana, USA

- An ideal site – ethylene feedstock sourced directly from our existing ethane cracker

- Anticipated production of 100 000 metric tons per year of combined 1-octene/1-hexene

> Sasol currently supplies 350 000 tons of co-monomers per year – a quarter of the world’s requirements

> New unit will significantly increase product yield to support expected customer demand

Sasol’s response Ethylene tetramerisation

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Artist’s impression of Sasol tetramerisation plant

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> Electricity generated from two 100 MW open-cycle gas turbines at Sasol Synfuels, Secunda, being sold to Eskom (commissioned 2010)

> New R1,8bn Sasolburg power project (140MW) in execution – operational in 2013

> Increases self generated power capacity to 60% by 2013

> Reduces CO₂ emissions by ~1Mt/a

> Progressing on a gas-to-power opportunity in Mozambique

> Other renewable energy and low-carbon electricity initiatives, including concentrated solar power and biofuels under investigation

Sasol New EnergyExploring new energy options and technologies

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Open cycle gas turbine Secunda, South Africa

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In operation and highly successful

> Joint venture between Qatar Petroleum (51%) and Sasol (49%)

> 32 400 bbl/d design capacity, producing ultra-low sulphur diesel, naphtha and LPG

> Stable operation (80 - 90% capacity utilisation)

> Instantaneous production record of 36 860 bbl/d achieved

> Production to be increased by 10% through de-bottlenecking

> Investigating the possibility of an expansion

> Highly profitable venture with handsome returns to shareholders

ORYX GTL, Sasol’s GTL flagship

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ORYX GTL

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> Uzbekneftegaz, Sasol and PETRONAS established a joint venture – December 2009

> Executing joint FEED study

> Targeting nominal plant capacity of 1,4 million tons per annum

> Product slate target – GTL diesel, GTL kerosene and GTL naphtha

> The plant will be located near the town of Karshi in the southern part of Uzbekistan

> Gas feedstock from adjacent Shurtan Gas Chemical Complex

Uzbekistan GTL Karshi, Uzbekistan

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> Sasol recently acquired 50% of Farrell Creek and Cypress A in the Montney Basin

> One of the most prolific shale plays in North America

> All year access and excellent infrastructure

> Sasol/Talisman partnership on 108 000 total net acres land –circa 20 tcf of contingent resource

> The feasibility study of a 96 000 bbl/d facility in Canada has commenced

Sasol major acquisitionsCanada – shale gas

Montney Basin, British Colombia

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A pioneering project in partnership between Sasol and the Mozambique and South African governments

> Sasol 70% (Operator), Companhia Moçambicana Hidrocarbonetos 25%, International Finance Corporation 5%, in natural gas central processing facility

> 50% Sasol and 25% each with two governments in an 865 km pipeline from Temane in Mozambique to Secunda in South Africa

> On stream 2004

> Currently produces ~300 MMscf/d

Mozambique natural gas project

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> Sasol’s operation has become a catalyst for social development

> US$13 million spent on social projects in Mozambique

> 60% of employees in Mozambique are local

> 205 contracts valued at US$64 million awarded to local service providers in 2011

> Close dialogue with local communities assists in implementation of needs-driven social and medical projects

Positive impact of natural gas operations in Mozambique

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Contents




The GTL and New Energy model – value adding to gas

Partnership delivering value – Qatar, Canada and Mozambique


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> Attracted the global financial community to invest in first-of-a-kind technology

> Qatar via ORYX GTL used advanced chemical engineering to diversify product slate

> ORYX GTL has been producing for over four years

> A clear example of how the downstream industry can monetise a national asset

ORYX GTL Helping Qatar realise its vision to be the ‘gas capital of the world’

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ORYX GTL is what success looks like

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Thank you

industry solutions for downstream challenges · 2 contents downstream challenges introduction to...

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