Sasol Limited · JSE:SOL
Sasol — Deutsche Bank Oil & Gas Conference 2003
20 slides from Sasol's conference presentation, Sep 23, 2003
Slide 1: Gas to Liquids – Global Prospects
Gas to Liquids – Global Prospects Pat Davies, Executive Director, Sasol Limited Deutsche Bank Oil & Gas Conference September 23, 2003
Slide 2: Gas-to-liquids (GTL) is the chemical conversion of natural gas
Gas-to-liquids (GTL) is the chemical conversion of natural gas GTL Fuel (diesel) 75% natural gas GTL plant GTL Naphtha 25% 10 mcf 1 barrel 1 bcf/d 100 000 bbl/day Over a 30 year lifespan 1 tcf reserve 10 000 bbl/day … into easily transportable & marketable liquid fuels
Slide 3: GTL is a growing global industry
GTL is a growing global industry The production “push” The customer “pull” Consumer country’s Producer country’s market pull due to business drivers energy efficiency & push growth environmental regulations Monetizing Natural Gas / Answering public concern about Diversify energy products environment
Slide 4: Huge uncommitted gas reserves …
Huge uncommitted gas reserves … 600 tcf 300 tcf 160 tcf 816 tcf 100 tcf 124 tcf 30 tcf 70 tcf 35 tcf Total uncommitted gas reserves equivalent to 2000 Tcf ~ 360 billion boe
Slide 5: What are the natural gas monetization alternatives?
What are the natural gas monetization alternatives? Pipelines Mature technology Fixed supply chain LNG Specialised logistics Supplies energy market Chemicals Small markets Gas to liquids Large transport fuel market Unconstrained supply chain Nascent industry … huge growth potential for GTL industry
Slide 6: GTL’s Value Proposition to host countries is to…
GTL’s Value Proposition to host countries is to… Provide them with strategic alternative to monetise natural gas resources Reduce flaring Diversify their market risks Transfer skills and create employment opportunities Implement projects based on 50 year’s experience Enable the development of petroc
Slide 7: GTL diesel specifications exceed all WWFC category standards, except density
GTL diesel specifications exceed all WWFC category 4 standards, except density aromatics (%) 35 current 2005 Europe current 2007 USA 20 GTL diesel 10 world-wide fuel charter <1 sulphur <5 50 350 500 1000+ (ppm) cetane :70
Slide 8: High quality of GTL Fuel provides opportunities for blend-upgrading
High quality of GTL Fuel provides opportunities for blend-upgrading refinery reconfiguration GTL Fuel fuel quality new specs diesel off-spec or stranded streams
Slide 9: Emissions reductions provides the driver for niche markets
Emissions reductions provides the driver for niche markets GTL Fuel 30% fuel quality emissions highly polluted urban diesel environments urban fleets underground applications hospitals …and opportunities for engine optimisation & redesign
Slide 10: Well positioned to meet trends …
Well positioned to meet trends … GTL Reformed Diesel Diesel CI Current Diesel Energy Efficiency Fuel Economy Reformed Gasoline LPG SI Current Gasoline CNG Conventional Alternative Urban Air Quality Benefits … greater efficiency and lower emissions
Slide 11: Global research resources utilized by Sasol for product testing …
Global research resources utilized by Sasol for product testing … Test and evaluation partners research institutes test organizations engine manufacturers government agencies industry organizations universities … a wealth of expertise
Slide 12: GTL players
GTL players 200000 Gas to Liquid s 160000 bbl/day 120000 Coal to Gas to Liquids 80000 40000 0 Sasol * Shell ExxonMobil Syntroleum GTL fuel production (BPD) * Plus Licensees
Slide 13: Like other capital intensive processes, GTL costs will decrease with experience
Like other capital intensive processes, GTL costs will decrease with experience Typical … LNG Cost Improvement 100% * Tre nd Sasol's GTL capital costs Specific Capital 35,000 Cost $/tpa LNG Capital ($/bpd) -20% -33% -50% 30,000 0% 1969 1978 1985 1990 1993 1995 25,000 Royal Dutch / Shell Group of Com
Slide 14: ORYX GTL leads the race
ORYX GTL leads the race EPC contract ($675m) awarded to Technip-Coflexip in January 2003 Sasol 49%, Qatar Petroleum 51% Cost at $950m, ready for start up end 2005 Capacity 33 000 bbl/day, two trains January 2003 : signing of the EPC contract
Slide 15: ORYX GTL is the first Project Financed GTL venture world wide
ORYX GTL is the first Project Financed GTL venture world wide Close scrutiny by lenders and their technical advisors Project finance package of $700m closed in January 2003 Fifteen lead arrangers, syndicated to six more banks Keen interest rates Banker close to the deal said: “Banks see GTL as a str
Slide 16: Opportunities in Qatar
Opportunities in Qatar Sasol and Qatar Petroleum are evaluating expansion options for ORYX GTL In addition, large scale integrated upstream- downstream opportunity being evaluated, through Sasol Chevron Qatari Energy Minister Abdullah al-Attiyah “Qatar will be the GTL capital of the World.”
Slide 17: Several other GTL opportunities are being advanced
Several other GTL opportunities are being advanced Escravos GTL in Nigeria Developed by Chevron Nigeria Limited, NNPC and Sasol Chevron Capacity 34 000 bpd from two trains Will use gas that is currently being flared EPC contract award planned in 2Q 2004 Australia – North West Shelf & nearby gas fiel
Slide 18: EGTL Site : March 2003
EGTL Site : March 2003 Last 8m sand layer on primary site
Slide 19: Conclusion
Conclusion GTL is an exciting new industry Technology improvements are reducing costs Enables gas-rich countries to strategically diversify their gas monetisation options Driven by increased global demand for clean fuels
Slide 20: Forward-looking statements
Forward-looking statements Sasol has made certain forward-looking statements in this presentation relating to future results of operations, plans, objectives or goals, future competition in local and international markets, existing or anticipated investments, future development in legal or regulator