Sasol US Mega Projects Investor Presentation 19 September 2013 better together we deliver
what will we cover today Overview of the Sasol Group North American Operations Our North American projects Competitive advantage Execution plan Closing remarks strictly confidential - not for further dissemination better…
Sasol at a glance An integrated energy and chemicals company The worlds largest producer of synthetic fuels South Africas leading energy and chemicals company Turnover (20.5bn in FY13) Pioneer in gas-to-liquids (GTL) and…
expanding globally our vision is to grow profitable sustainably and inclusively, while delivering value to shareholders through technology and the talent of our people in the energy and chemical markets in Southern Africa and…
Sasol North America Lake Charles Chemical Complex strictly confidential - not for further dissemination better together we deliver 6
Sasol North America our history Originated in 1961 as the Petrochemical Division of Conoco, later renamed Conoco Chemicals Acquired by Du Pont in 1982 MBO formed Vista Chemical in 1984 Acquired by RWE-DEA in 1991 PVC…
an advantaged site with access to major highway, rail and port infrastructure Sasol North America strictly confidential - not for further dissemination better together we deliver 8
a thriving downstream and petrochemicals hub Entergy NISCO Sasol Georgia Gulf City of Westlake North America MG Industries Air Products Phillips 66 EXCEL Refinery Paralubes ARCH BioLab City of Sulphur City of Lake Charles…
north american operations our priorities Safety and Environmental Excellence Reliability and Plant Operations Cost/Profitability Improvement Focus strictly confidential - not for further dissemination better together we…
striving for zero harm Recordable Case Rate* 4th Quartile 3rd Quartile 2nd Quartile 1st Quartile -- * 12 month rolling average strictly confidential - not for further dissemination better together we deliver 11
continuous improvement proven track record 20 % reduction Fiscal Year 3% Inflation Base strictly confidential - not for further dissemination better together we deliver 12
achieving operational excellence in North America Global Economic Hurricane Downturn Rita Annual production FY 93/94 FY 95/96 FY 97/98 FY 99/00 FY 01/02 FY 03/04 FY 05/06 FY 07/08 FY 09/10 FY 11/12 FY13/14B steadily higher…
the opportunity for Sasol strictly confidential - not for further dissemination better together we deliver 15
one of the largest foreign direct investment manufacturing projects in the US Approval for front-end engineering and design (FEED) for our world-scale ethane cracker complex and GTL project in December 2012 GTL FID 18-24 months after…
gas-to-liquids in a nutshell a commercially proven technology Product work-up GTL products Diesel: 75% Naphtha: 20% Natural gas Reforming GTL synthesis LPG: 5% as feedstock 10 mcf 1 barrel of product 1 bcf/d 100 000…
not only shale gas, but also shale ethane has changed North American energy and chemical markets estimates vary from 40-100 years of supply History 2009 Projections US dry gas (trillion cubic feet per year) 30 1% 25 Net…
the US GTL opportunity is advantaged by favorable oil/gas price ratios Crude oil (Brent) prices expressed as a multiple of natural gas prices (Henry Hub) 40 More than 400 tcf of gas in the US can be commercially produced…
GTL value addition a Sasol wholly owned facility with a nameplate capacity of 4 million tons per annum wax products debottleneck in reactor wax wax Hamburg, LPG Germany oxygen extraction phase 1 fuels natural gas syngas…
ethane associated with gas leads to global leadership position for US crackers Source: CMAI Long term defensible position - bottom 30% of supply curve on a cash cost basis strictly confidential - not for further dissemination…
LCCP: world scale cracker and derivatives plants backward-integrated growth for Sasol into a well-established and uniquely diversified market To HDPE (with INEOS) strictly confidential - not for further dissemination better…
execution is critical strictly confidential - not for further dissemination better together we deliver 23
proactive actions to address execution challenges Mitigation Utilization of Recent mega-project Integrated project management team standard experience in the Gulf Leverage local mega-project expertise and designs where Coast…
mitigating execution risks and applying best practices mega project experience Actively recruiting local, experienced people for Sasol North America Experienced IPMT* Experienced international Sasol and Sasol North America…
hands-on management structure for basic development of LCCP packages Integrated Project Management Team (IPMT) Sasol + Worley Parsons + others Main FEED Contractor - Fluor Manages all Engineering Contractors (ECs), develops Basic…
using world-class technology and engineering partners Facility Licensor Engineering Partner Ethane Cracker LLDPE LDPE EO / MEG HDPE (through JV) strictly confidential - not for further dissemination better together…
modularization mitigates shortage of skills ethane cracker project modularization study (feasibility) strictly confidential - not for further dissemination better together we deliver 28
favorable location enables modularization Potential MATERIALS Module LABOR Laydown HEAVY HAUL EVERGREEN RD Area RAILROAD MATERIAL OFF-LOADING FACILITY SULPHUR ROAD I-10 strictly confidential - not for further…
revisiting our investment considerations robust project economics remain cornerstone of our investment decisions Prioritised portfolio Financing Maintaining gearing target Good market appetite for Sasol debt robust project…
strong investment case sustainable value creation strictly confidential - not for further dissemination better together we deliver 31
Loading...
