SUCCESSFUL GAS TO POWER PLANT DEVELOPMENT CTRG, MOZAMBIQUE

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1 SUCCESSFUL GAS TO POWER PLANT DEVELOPMENT CTRG, MOZAMBIQUE Africa Utility Week Cape Town Kribs Govender Vice President Business Development Power & Gas 13 May 2015

2 Forward-looking statements 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, forward-looking 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 29 September 2014 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. 2

3 Agenda 1. Natural Gas to Electricity: Value Proposition 2. Venture Partners 3. Site Location 4. CTRG Power Plant Overview 5. Site Layout 6. Central Térmica de Ressano Garcia (CTRG) Roadmap 7. Commercial Framework 8. Adding Value to the Mozambique Economy 9. Success Factors 10. Lessons Learnt 3

4 Natural gas to electricity: value proposition Technology Well proven High combined cycle efficiency (~60%) Modular (easily scalable) Experienced equipment vendors Constructability Short construction periods (18-24 months) Standardised package Operation Dispatchable power quick ramp-up rates Load following Lower CO 2 Less than half the CO 2 emissions compared to coal fired generation 4

5 Venture partners EDM has as its mission the operation of services of production, transportation, distribution and marketing of electricity of good quality, in the interest of the public, environment and to the benefit of consumers in Mozambique and the region. Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of our more than people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities to produce a range of high-value product streams, including liquid fuels, chemicals and lowcarbon electricity. 5

6 Site location 6

7 CTRG power plant overview 11 PetaJoule (PJ) of natural gas Plant Capacity 175 MW Partnership between Electricidade de Moçambique (EDM) and Sasol All electricity produced contracted to EDM Operational since February gas engine-generator sets 7

8 Site layout Stacks Engine halls Connection to Grid Storage tanks (fire & process water) 8

9 Start of a successful project Key contracts signed in December 2012 and January 2013 Concession Contract with Mozambican Government Shareholders Agreement with EDM Site construction activities commenced in January 2013 Sasol provided bridge funding 9

10 CTRG roadmap August 2012 November 2012 December 2012 January 2013 ESIA approved Soil turning & announcement Final Investment Decision Construction Programme Commences Breaking new ground October 2013 December 2014 February 2015 Engines arrival Installation & Commissioning Start of Operations 10

11 Commercial framework Project Funding Sponsors (Equity, Shareholders Agreements, Company incorporation) Concession agreement Capital structure and project concession Gas Sales Agreement Gas Transport Agreement Gas engine power plant CTRG Power Purchase Agreement Key Supply and Offtake arrangements Operations & Maintenance Agreement EPC Contract EIA, Permits, Licensing Other project contracts and security Connection, Use of system agreements General Agreements and support Consultants and Advisors 11

12 Adding value to the Mozambican economy Improve access to electricity for Mozambicans with the new 175 MW capacity In excess of 500 temporary job opportunities created during the construction phase 50 permanent employment opportunities created in operational phase Local businesses supporting the operations 12

13 Success factors Public-Private Partnership Contracting Approach Local/Expat mix Local community engaged Intensive training programme 13

14 Lessons learnt Subcontractor management Site workforce expectations Early supervisory mobilisation Engagement process with government authorities 14

15 THANK YOU Kribs Govender Vice President Business Development: Power & Gas 15