gas commercialisation option Gas to Liquids Conference 2012 London, UK 5 October 2012

Transcription

1 GTL a real g gas commercialisation option p Gas to Liquids Conference 2012 London, UK 5 October 2012

2 Sasol - an integrated technology-driven company GTL: a compelling value proposition GTL: a new commercial reality GTL: a bright future 2

3 forward-looking statements Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return and cost reductions. Words such as believe, anticipate, expect, intend, seek, will, plan, could, may, endeavour and project and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forwardlooking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report under the Securities Exchange Act of 1934 on Form 20-F filed on 7 October 2011 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. 3

4 Sasol - an integrated technology-driven company GTL: a compelling value proposition GTL: a new commercial reality GTL: a bright future 4

5 sasol at a glance An integrated energy and chemicals company The world s largest producer of synthetic fuels South Africa s leading energy and chemicals company Pioneer in gas-to-liquids (GTL) and coal-to-liquids (CTL) technology 60 years experience in CTL, GTL and related technologies In-house technology development capacity (~255 engineering and science PhDs) Strong intellectual property portfolio (490 registered Turnover (US$20.3bn) 1 Market cap (US$33.4bn) 2 Listed on JSE (SOL) and NYSE (SSL) Exploration, development, production, marketing and sales operations in more than 35 countries ~ employees worldwide patent families) Notes 1 For year ending 30 June Market capitalisation at 31 December

6 our integrated business model Crude oil open market purchases Fuel components Refining and blending Exploration and production of feedstock Coal Gas Oil GTL/CTL technology (LT or HT) Syngas production Co-products Recovery and beneficiation Marketing of products Chemical feedstock Chemical workup Chemical feedstock third party producer New Energy New Energy 2012, Sasol New Business Development Confidential 6

7 Sasol - an integrated technology-driven company GTL: a compelling value proposition GTL: a new commercial reality GTL: a bright future 7

8 aligning the GTL planets GTL 8

9 the GTL process 1 Reforming 3 Product work-up GTL products Gas recovery and clean-up 2 GTL synthesis 9

10 a pathway for gas into the transportation sector Gas 23,8% Household and other Hydro 6,6% Nuclear 5,5% Electricity Coal 29,4% Industry Oil 34,7% Transportation Source: EIA, BP Statistical Review of World Energy 2010, New Scientist-world energy use 10

11 value adding expansion potential Diesel and Kerosene GTL Naphtha and LPG Paraffin Cuts Wax Products Base Oils Gas Reforming Ammonia Methanol Urea Methanol and Methanol to Olefins Methane Natural gas Gas Separation Ethane, LPG and Condensate Cracker Ethylene Propylene Polyethylene Polypropylene Solvents Other Gas field GTL FT based value adds Other value adds 11

12 continuously improving technology Reactor capacity increasing Catalyst being improved Current design 100 bbl/d bbl/d bbl/d bbl/d bbl/d Sasolburg Qatar Nigeria 1980s 1990s 2000s 2010s 2020s 12

13 commercial scale operational learning 13

14 world class product Clear, clean burning diesel and kerosene High cetane number, virtually sulphur and aromatics free Convenient and easy to use Can be used pure or as blend with conventional diesel/kerosene Compatible with existing engine technology and distribution infrastructure Enables development of new generation internal combustion engine technologies with improved engine efficiency and further reduction of tailpipe emissions Naphtha is an ideal cracker feedstock or diluent for oil sands clean clear product clean clear performance 14

15 demonstrated performance First passenger flights in September 2010 on fully synthetic jet fuel In 2006, a Toyota Hilux Raider, drove from Johannesburg to Qatar on pure GTL diesel The US airforce has tested GTL fuel in B-52s and B-1Bs 15

16 environmental credibility Emissions performance of GTL diesel GTL benefit Carbon monoxide Hydrocarbons NOx Particulates Refinery diesel GTL diesel Local air quality benefits: High cetane number and very low levels es of sup sulphur u and aromatics a ensure a more efficient and cleanerburning combustion environment Comparable CO 2 budget: Greenhouse gas (GHG) impact, measured on a life cycle basis, is lower than that of conventional diesel fuel, according to a recent peer-reviewed study published in Environmental Science and Technology. 16

17 Sasol - an integrated technology-driven company GTL: a compelling value proposition GTL: a new commercial reality GTL: a bright future 17

18 60 years of operating experience in South Africa More than 1.6 billion barrels of high quality fuels from coal and gas 18

19 up and running in Qatar ORYX GTL Operating since 2007 Joint venture (Qatar Petroleum 51% and Sasol 49%) Design capacity = bbl/d Product slate = ultra-low sulphur diesel, naphtha and dlpg Stable operation at 80-90% capacity utilisation Achieving i 105% capacity utilisation World class safety Highly profitable venture with handsome returns to shareholders 19

20 not far behind Escravos GTL, Nigeria Under construction (completion expected in 2013) Sasol, Chevron Nigeria Limited and Nigerian National Petroleum Company Design capacity = bbl/d Product slate = ultra-low sulphur diesel, naphtha and LPG ORYX GTL design Sasol technology and cobalt catalyst employed 20

21 OLTIN YO L GTL, Uzbekistan Uzbekneftegaz, Sasol and PETRONAS established a joint venture December 2009 Executing joint FEED study Targeting nominal plant capacity of bbl/d Product slate target GTL diesel, GTL kerosene and GTL naphtha 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 21

22 developing opportunities elsewhere on the global stage New focus on North America GTL project under development (FEED phase) GTL project under development (Feasibility phase) Sasol affiliated plant operating or under construction 22

23 a new natural gas outlook for North America shale gas has added 70 to 100 years resource life based on current US production Gas volume (tcf) Haynesvillee Horn Eagle Cotton Marcellus Montney River Ford Valley Woodfordd Barnett Granite Wash Jonah Deep Bossier Fayettevillee Natural Buttes Piceancee Bossie Colony Wash r source: IHS CERA

24 robust feed and product drivers for GTL Crude oil prices expressed as a multiple of natural gas prices y hub iple of henry mbtu/bbl) oil as a multi s prices (mm WTI crude o gas High demand for transportation fuels and wide differential between gas and oil prices Forecast* * Source: EIA 24

25 sasol shale gas and GTL project in Canada TLM land Sasol/TLM land Basin Major pipeline Alberta Montney partnership Farrell Creek and Cypress A One of the most prolific shale plays in North America All year access and excellent infrastructure Feasibility study underway (target completion in the summer) British Colombia Source: Talisman

26 USA GTL - a first of a kind in North America Sasol commenced with feasibility study to evaluate viability of GTL plant in Southwest Louisiana. Unlocking abundant natural gas resources and contributing to local economy with affordable, reliable and high quality fuel supply. Early in 2011, Sasol also commenced studies on ethylene cracker and derivatives project. Location is Sasol s existing Lake Charles Chemical Complex A value adding option to unlock natural gas resources Currently world s first commercial ethylene Currently world s first commercial ethylene tetramerisation unit under construction at same site 26

27 Sasol - an integrated technology-driven company GTL: a compelling value proposition GTL: a new commercial reality GTL: a bright future 27

28 GTL the planets aligned Leading edge, commercial technology that can be implemented immediately Energy diversity and security Integrated value chain opportunities and synergies (upstream and chemicals) Flexibility in transportation t ti fuels industry Fungible products that do not rely on complex contractual chains Commercial alternative to conventional production of diesel and jet fuel Superior quality fuels to meet stringent specifications (Euro 5) Environmental footprint on par with modern, efficient petroleum refining, with scope to further improve 28

29 Thank You Jennifer Zeiss, General Manager, Sasol New Business Development