http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 18.08Change: -0.03
R/$ = 16.15Change: 0.00
Au 1191.46 $/ozChange: -2.54
Pt 927.50 $/ozChange: 2.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 21, 2011

Sasol confident about advancing growth opportunities

Back
Construction|Africa|CoAL|Design|Engineering|Flow|Gas|Mining|Oil-and-gas|Petrochemicals|Petroleum|PROJECT|Resources|SECURITY|Solar|Technology|transport|Africa|Energy|Flow|Oil And Gas|Power|Operations
Construction|Africa|CoAL|Design|Engineering|Flow|Gas|Mining|Oil-and-gas|Petrochemicals|Petroleum|PROJECT|Resources|SECURITY|Solar|Technology|transport|Africa|Energy|Flow|Oil And Gas|Power|Operations
construction|africa-company|coal|design|engineering|flow-company|gas|mining|oilandgas|petrochemicals|petroleum|project|resources|security|solar|technology|transport|africa|energy|flow-industry-term|oil-and-gas|power|operations
© Reuse this



International investment research firm Zacks states that, given petrochemicals group Sasol’s strong balance sheet and net cash positive status, the company will be able to pursue an aggressive coal-to-liquids and gas-to-liquids (GTL) growth programme.

This is in agreement with Sasol CFO Christine Ramon’s statement during the group’s 2011 full-year results presentation in September that Sasol’s strong balance sheet would position the company well to fund its growth opportunities.

In the financial year ended June 30, the group posted earnings attributable to shareholders of R19.8-billion, a 24.5% increase on its earnings of R15.9-billion the year before.

Further, it reported a low balance sheet gearing of 1.3% for the 2011 financial year, compared with 1% in the 2010 financial year, owing to improved cash flow generation.

The group generated R38.6-billion in cash from its operations, a 41% increase on the R27.3-billion generated in 2010.

Sasol expects to maintain this low gear- ing in the short term, but says its gearing will return to within the group’s targeted range of between 20% and 40% in the medium term, as its large capital-intensive growth programme and gas acquisition strategy gain momentum.

The group plans to grow its synthetic fuel output to between 7.2-million tons and 7.3-million tons a year in 2012.

Sasol already produces synthetic fuels (synfuels) at its joint venture Oryx GTL plant, in Qatar, but plans to continue expanding its GTL operations.

In line with this, the group signed an investment agreement with oil and gas companies Uzbekneftegaz and Petronas, on September 19, to open the way for the front-end engineering and design feed of a 1.4-million-ton-a-year GTL project in Uzbekistan.

The deal offers the GTL project investment protection and fiscal benefits.

It was signed by Uzbekistan’s Foreign Economic Relations, Investment and Trade Minister, following a meeting between President Islam Karimov and Sasol CEO David Constable.

The feed phase of the GTL project is expected to start before the end of this year.

Should an investment decision be made, the plant could be operational in the second half of the decade and would harness Uzbekistan’s abundant natural gas resources to produce transport fuels that the country currently imported.

Uzbekneftegaz, which has a 44.5% interest in the project, would supply gas from the already developed Shurtan group of gasfields and has also signed an offtake agreement for the bulk of the production. Sasol also holds a 44.5% interest, while Petronas has an 11% interest.

Petronas president Dato’ Shamsul Azhar Abbas expressed the Malaysian group’s support for the partnership.

The signing followed on Sasol’s announcement that it was moving ahead with a feasibility study for a 48 000 bl/d to 96 000 bl/d GTL facility in the US state of Louisiana.

The feasibility study, which was announced jointly by Louisiana Governor Bobby Jindal and Sasol new business development MD Ernst Oberholster, will take 18 months to complete and will evaluate the viability of a GTL venture in Calcasieu Parish, Louisiana.

Should it proceed, Sasol would apply its GTL technology to convert Louisiana’s abundant natural gas resources into fuel to be consumed in the US, which is keen to reduce its dependence on foreign oil.

Meanwhile, Sasol continues to make progress on a GTL project in Canada.

It is advancing a feasibility study for the GTL facility, which could be built in either Alberta or British Columbia, in western Canada, following its recent R14.2-billion acquisition of 50% of Talisman Energy’s Farrel Creek, as well as half of Talisman’s Cypress A shale gas assets, in the Montney basin, of British Columbia.

The South African company has pro- duced more than 1.6-billion barrels of liquid fuels and chemicals, primarily from coal, over the past 60 years, but is focusing on producing more synfuels from gas.

Climate Change

Sasol agrees that climate change presents a risk to the world at large, to South Africa and to the local and international business community, and reports that it is committed to engaging with the South African government in its development of a national policy to mitigate climate change.

The national policy is aimed at ensuring a coordinated, coherent, efficient and effective response to this challenge, without prejudicing the country’s growth and development goals and the competitiveness of key industries within the South African economy.

The group states that it is a significant contributor to the South African economy and that it plays a key role in ensuring energy security for the country; however, Sasol also recognises that it is a large emitter of greenhouse gases (GHGs) and has made changes to its business operating methods to move to a lower carbon economy.

Through investments in energy effi- ciency and in finding and using natural gas from Mozambique, Sasol reduced its yearly GHG emission levels by ten-million tons between 2004 and 2011, which is a reduction of 12%.

Meanwhile, Sasol New Energy has undertaken studies related to various clean energy and low carbon electricity initiatives, including the generation of electricity from natural gas in both South Africa and Mozambique, as well as the establishment of concentrating solar power facilities to produce electricity in South Africa.

Sasol New Energy obtained approval from the Sasol board to construct a 140 MW electricity generation plant in Sasolburg, South Africa. The plant will use natural gas as its feedstock.

In July 2010, the company also concluded an agreement with Gassnova, a Norwegian State-owned enterprise, to enable Sasol to participate in the European CO2 Technology Centre, in Norway. Construction is progressing and the facility is scheduled for start-up in the latter half of 2012.

Competition Law Compliance

Meanwhile, Sasol reports that it continues to evaluate and enhance its compliance programmes and controls, in general, and its competition law compliance programmes and controls, in particular.

As a consequence of these compliance programmes and controls, including monitoring and review activities, the company has also adopted appropriate remedial and mitigating steps, where necessary or advisable, lodged leniency applications and made disclosures on material findings as and when appropriate.

It notes that these compliance activities have already revealed competition law contraventions or potential contraventions in respect of which, the company reports, it has taken or will take appropriate remedial or mitigating steps, including lodging leniency applications.

Sasol initiated a global competition law compliance drive in 2008 after it was fined R3.7-billion by the European antitrust watchdog for anticompetitive behaviour by Sasol Wax in the European paraffin wax industry.

Sasol’s penalties for breaching competition laws since 2008 amounted to R4.06-billion, by March 2011, not including possible fines arising from unfinished competition probes.

Increased investigations of competi- tion breaches by the South African authorities followed, leading to Sasol’s decision to cooperate with the authorities under their policy of corporate leniency.

It has since paid R250-million to conclude charges involving Sasol Nitro and R112-million regarding breaches by Sasol Polymers, which Sasol says are technical in nature.

South Africa’s Competition Commission is conducting investigations into the South African piped gas, coal mining, petroleum, fertilisers and polymers indus- tries. Sasol reports that it continues to interact and cooperate with the commission, as well as in the areas that are subject to the commission’s investigations.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Sasol and Synfuels News
PRACTICAL DEVELOPMENT Sasol Techno X seeks to expose the many facets of technology, encouraging leader to explore a range of disciplines and career choices
International integrated energy and chemicals company Sasol hosted yet another successful Techno X exhibition which took place from August 3 and 7 in Secunda, Mpumalanga attracting almost 22 000 people including thousands of learners from various schools in all the...
PROMISING TECHNOLOGY Ford’s project will test the first-ever cars to run on environment-friendly dimethyl ether and oxymethylene ether
Automotive manufacturer Ford Motor Company is spearheading a €3.5-million research project to investigate the use of alternative fuels that could offer customers the power and performance of modern internal combustion engines, with enhanced fuel efficiency and...
CONSERVATION IMPERATIVE Sasol still plans to deliver remaining cash conservation benefits of between R30-billion and R50-billion over the following 24 months
The extensive business performance enhancement programme (BPEP), implemented in 2012 by integrated chemicals and energy company Sasol, has resulted in cost savings of R2.5-billion during 2015 – ahead of the group’s R1.5-billion financial-year target. Moreover, the...
More
 
 
Latest News
Despite a number of African countries being buffeted by falling commodity prices and fluctuating currencies in 2015, the latest Nielsen Consumer Confidence Index results have provided relatively stable overviews of East, West and South Africa, with Nigeria positioned...
South African REIT Association chairperson Laurence Rapp
The South African Real Estate Investment Trust (SA Reit) Association has published a best-practice guide book – Best Practice Recommendations (BPR) – in an effort to make the financial reporting of South African real estate investment trusts (REITs) clearer and more...
Former Prasa CEO Lucky Montana
Former Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana on Monday vehemently denied corruption allegations leveled against him in court papers filed by his former employer. The court papers show Montana allegedly profited from a relationship with...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149