20 th World Petroleum Congress

Transcription

1 20 th World Petroleum Congress Industry solutions for downstream challenges David Constable - Sasol Limited 1

2 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 2

3 Downstream challenges Drive for cleaner fuels and reduced emissions from regulators Desire for improved efficiency and performance by customers Growing expectations from shareholders and stakeholders The downstream ability to deliver technologies that offer cleaner, cost effective and more energy efficient solutions will define the 21st century... 3

4 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 4

5 Introduction to Sasol > 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) 5

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

7 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 7

8 Global GDP has recovered to above pre-crisis levels, but growth is primarily driven by developing countries 150 Historic GDP Index (including 2011 forecast) (2005 as base year) GDP index Advanced economies only likely to exceed pre-crisis GDP levels in F Emerging and developing nations GDP Advanced nations GDP World GDP Source: IMF, own calculations 8

9 Global economic recovery has been underpinned by growth in emerging markets 6 Regional and world GDP growth (% growth y/y) GDP growth (%) F Advanced nations GDP Emerging and developing nations GDP World GDP Source: IMF, own calculations 9

10 Global trends The twenty first century century of gas Emerging trends > Global energy usage is shifting from oil to gas and renewables 50 Oil Global energy fuel mix (%) > With advent of shale and other unconventional gas resources, gas could be the bridge to new energy for next ~30 years Coal > Coal maintains its share of energy supply 20 Gas 10 0 Hydro Nuclear Renewables Source: BP Statistical Review 10

11 Global trends Sasol s response De-link of oil/gas price ratio creates a window for GTL and other gas based projects Opportunity to acquire further shale gas GTL opportunities Sasol recently acquired 50% of Farrell Creek and Cypress A shale gas assets in Canada World population increases by up to 50% by mid-century increased demand for chemical products Downstream chemicals businesses Sasol studying worldscale ethane cracker opportunity in the USA Pressure of carbon intensity Focus is on low- or no-carbon electricity Accelerated exploration in southern cone of Africa - Mozambique, Botswana Sasol New Energy will be developing options and new technologies for Sasol in a carbon and water constrained world 11

12 Sasol s response The role of chemicals > 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 12

13 Sasol s response Ethylene tetramerisation 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 metric tons per year of combined 1-octene/1-hexene > Sasol currently supplies 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 13

14 Artist s impression of Sasol tetramerisation plant 14

15 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 15

16 Sasol New Energy Exploring new energy options and technologies > 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 16

17 Open cycle gas turbine Secunda, South Africa 17

18 ORYX GTL, Sasol s GTL flagship In operation and highly successful > Joint venture between Qatar Petroleum (51%) and Sasol (49%) > bbl/d design capacity, producing ultra-low sulphur diesel, naphtha and LPG > Stable operation (80-90% capacity utilisation) > Instantaneous production record of 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 18

19 ORYX GTL 19

20 Uzbekistan GTL Karshi, Uzbekistan > 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 20

21 Sasol major acquisitions Canada shale gas > 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 Montney Basin, British Colombia > Sasol/Talisman partnership on total net acres land circa 20 tcf of contingent resource > The feasibility study of a bbl/d facility in Canada has commenced 21

22 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 22

23 Mozambique natural gas project 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 23

24 Positive impact of natural gas operations in Mozambique > 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 needsdriven social and medical projects 24

25 Contents Downstream challenges Introduction to Sasol Global trends and Sasol s response The GTL and New Energy model value adding to gas Partnership delivering value Qatar, Canada and Mozambique ORYX GTL a perfect platform for growth 25

26 ORYX GTL Helping Qatar realise its vision to be the gas capital of the world > 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 26

27 ORYX GTL is what success looks like 27

28 Thank you 28