gtl – a real gas commercialisation option – a... · gtl – a real gas commercialisation option...

GTL – a real gas commercialisation optiong pGas to Liquids Conference 2012 – London, UK

5 October 2012

Sasol - an integrated technology-driven company

GTL: a compelling value proposition

GTL: a new commercial reality

GTL: a bright future…

2Copyright @ 2012, Sasol New Business Development - CONFIDENTIAL

forward-looking statements

Sasol may, in this document, make certain statements that are not historical facts and relate to analysesand other information which are based on forecasts of future results and estimates of amounts not yetdeterminable. These statements may also relate to our future prospects, developments and businessstrategies. Examples of such forward-looking statements include, but are not limited to, statementsregarding exchange rate fluctuations, volume growth, increases in market share, total shareholder returnand 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-lookingstatements, 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 risksthat the predictions, forecasts, projections and other forward-looking statements will not be achieved. If oneor more of these risks materialise, or should underlying assumptions prove incorrect, our actual results maydiffer materially from those anticipated. You should understand that a number of important factors couldcause actual results to differ materially from the plans, objectives, expectations, estimates and intentionsexpressed in such forward-looking statements. These factors are discussed more fully in our most recentannual report under the Securities Exchange Act of 1934 on Form 20-F filed on 7 October 2011 and in otherfilings with the United States Securities and Exchange Commission. The list of factors discussed therein isnot exhaustive; when relying on forward-looking statements to make investment decisions, you shouldcarefully consider both these factors and other uncertainties and events. Forward-looking statements applyonly as of the date on which they are made, and we do not undertake any obligation to update or revise anyof them, whether as a result of new information, future events or otherwise.


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 ● Turnover (US$20.3bn)1

● Market cap (US$33 4bn)2

company

● Pioneer in gas-to-liquids (GTL) and coal-to-liquids

(CTL) t h l

● Market cap (US$33.4bn)2

● Listed on JSE (SOL) andNYSE (SSL)(CTL) technology

● 60 years experience in CTL, GTL and related

technologies

NYSE (SSL)

● Exploration, development, production, marketing and technologies

● In-house technology development capacity (~255

engineering and science PhDs)

p , gsales operations in more than 35 countries

● Strong intellectual property portfolio (490 registered

patent families)

● ~34 000 employees worldwide


Notes1 For year ending 30 June 2011 2 Market capitalisation at 31 December 2011

our integrated business model

Crude oil – open market purchases

Fuel components

Refining and blendingp g

Exploration and production of

Syngas productionGTL/CTL

technology (LT or HT)

Co-products Recovery and beneficiation

production of feedstock• Coal• Gas• Oil

production Marketingof

products

Chemical feedstock

Chemical workup

Chemical feedstock – third party producer


New Energy New Energy

ConfidentialCopyright @ 2012, Sasol New Business Development

aligning the GTL planets

GTL


the GTL process

Reforming1

Product work-up

GTLproducts

3

Gasrecovery

GTLsynthesis

work-up products

2

recoveryand

clean-up

synthesis


a pathway for gas into the transportation sector

Gas 23,8% Household and other

Hydro

Nuclear

6,6%

5,5% Electricity

Coal 29,4% Industry

Oil 34,7% Transportation

10

Source: EIA, BP Statistical Review of World Energy 2010, New Scientist-world energy use

Copyright @ 2012, Sasol New Business Development - CONFIDENTIAL

value adding expansion potential

Diesel and Kerosene

Naphtha and LPG

GTLNaphtha and LPG

Paraffin Cuts

Wax Products

Base Oils

AmmoniaGas

R f i

Urea

Base Oils

ReformingMethanol Methanol and

Methanol to Olefins

Polyethylene

Met

hane

Ethane, LPG and Condensate

Gas Separation Cracker

Polypropylene

Solvents

M Ethylene

PropyleneCondensate

Other

GTL FT based Other

Natural gas

Gas field

11

GTL value adds value adds


continuously improving technology

C tCurrent design

Reactor capacity increasingCatalyst being improved

100 bbl/d 2 500 bbl/d 16 000 bbl/d 24 000 bbl/d 30 000+ bbl/d

Sasolburg Qatar Nigeria

1980s 1990s 2000s 2010s 2020s

Sasolburg Qatar Nigeria


commercial scale operational learning


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/keroseneconventional diesel/kerosene

• Compatible with existing engine technology and distribution infrastructure

cleanclear

product

• Enables development of new generation internal combustion engine technologies with improved engine efficiency and furtherimproved engine efficiency and further reduction of tailpipe emissions

• Naphtha is an ideal cracker feedstock or dil t f il d

cleanclear

f


diluent for oil sands performance

demonstrated performance

First passenger flights in September 2010 on fully synthetic jet fuel

The US airforce has tested GTL fuel in B-52s and B-1BsIn 2006 a Toyota Hilux Raider drove from


In 2006, a Toyota Hilux Raider, drove from Johannesburg to Qatar on pure GTL diesel

environmental credibility

Emissions performance of GTL dieselEmissions performance of GTL diesel

50

75

100GTLbenefit

Local air quality benefits: High cetane number and very low levels of sulphur and aromatics

0

25

Carbon monoxide

Hydrocarbons NOx Particulates

e e s o su p u a d a o a csensure a more efficient and cleaner-burning combustion environment

Refinery diesel GTL diesel

Comparable CO2 budget:Greenhouse gas (GHG) impact, measured on a life cycle basis, is lower than that g ( ) p yof conventional diesel fuel, according to a recent peer-reviewed study published in Environmental Science and Technology.


60 years of operating experience in South Africa

18

More than 1.6 billion barrels of high quality fuels from coal and gas


up and running in Qatar… ORYX GTL

• Operating since 2007Operating since 2007

• Joint venture (Qatar Petroleum 51% and Sasol 49%)

• Design capacity = 32 400 bbl/d

• Product slate = ultra-low sulphur diesel, naphtha d LPGand LPG

• Stable operation at 80-90% capacity utilisation

A hi i 105% it tili ti• Achieving 105% capacity utilisation

• World class safety

19

Highly profitable venture with handsome returns to shareholders


not far behind… Escravos GTL, Nigeria

• Under construction (completion expectedUnder construction (completion expected in 2013)

• Sasol, Chevron Nigeria Limited and Nigerian National Petroleum Company

• Design capacity = 33 200 bbl/dg p y

• Product slate = ultra-low sulphur diesel, naphtha and LPG

• ORYX GTL design

• Sasol technology and cobalt catalyst employedemployed


OLTIN YO’L GTL, Uzbekistan

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

• E ti j i t FEED t d• Executing joint FEED study

• Targeting nominal plant capacity of 38 000 bbl/d38 000 bbl/d

• Product slate target – GTL diesel, GTL kerosene and GTL naphthakerosene 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

developing opportunities elsewhere on the global stage…

New focus on North America

GTL project under development (Feasibility phase)GTL project under development (FEED phase)


p j p ( y p )Sasol affiliated plant operating or under construction

a new natural gas outlook for North America

800

600

700

800

shale gas has added 70 to 100 years resource life based on current US

400

500

me

(tcf)

production

200

300

Gas

vol

um

0

100

e s y r d y d tt h h r e s e r h

Hay

nesv

ille

Mar

cellu

s

Mon

tney

Hor

n R

ive

Eag

le F

ord

Cot

ton

Valle

y

Woo

dfor

d

Bar

net

Gra

nite

Was

h

Jona

h

Dee

p B

ossi

e

Faye

ttevi

lle

Nat

ural

But

tes

Pic

eanc

e

Bos

sie

Col

ony

Was

h

23

G N

source: IHS CERA 2010Copyright @ 2012, Sasol New Business Development - CONFIDENTIAL

robust feed and product drivers for GTL

Crude oil prices expressed as a multiple of natural gas prices

28

yhu

b High demand for transportation fuels and id diff ti l b t

16

20

24

iple

of h

enry

mB

tu/b

bl)

wide differential between gas and oil prices Forecast*

8

12

16

oil a

s a

mul

tis

pric

es (m

m

0

4

8

WTI

cru

de o

gas

01992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2027

24

* Source: EIA


sasol shale gas and GTL project in Canada

• Montney partnership

Farrell Creek and Cypress A

TLM land

BasinSasol/TLM land

• One of the most prolific shale plays in North America

• All year access and excellent infrastructureAlberta

Major pipeline

• All year access and excellent infrastructure

• Feasibility study underway

(target completion in the summer)

Alberta

(target completion in the summer)

BritishSource: Talisman 2011

BritishColombia


USA GTL - a first of a kind in North America

S l d ith f ibilit t d t• 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

• Currently world’s first commercial ethyleneA value adding option to l k t l • Currently world’s first commercial ethylene

tetramerisation unit under construction at same site

unlock natural gas resources


GTL – the planets aligned

• Leading edge, commercial technology that can b i l d i di l

p g

be implemented immediately

• Energy diversity and security

• Integrated value chain opportunities and synergies (upstream and chemicals)

Fl ibilit i t t ti f l i d t• Flexibility in transportation fuels industry• Fungible products that do not rely on

complex contractual chains• Commercial alternative to conventionalCommercial 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


improve

Thank You

Jennifer Zeiss, General Manager , Sasol New Business Development ([email protected])

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