Profile: Sasol Ltd (SSL)
2 Oct 2015
Sasol Limited (Sasol), incorporated on June 16, 1979, is a South Africa-based international integrated energy and chemicals company. The Company develops and commercializes technologies, builds and operates facilities to produce a range of product streams, including liquid fuels, high-value chemicals and low-carbon electricity. The Company’s operations are organized into three focused business clusters: South African Energy Cluster; International Energy Cluster and Chemical Cluster. The South African Energy Cluster is involved in coal mining, gas production, synfuels manufacturing and oil refining. The International Energy Cluster manages the Company’s oil and gas business outside South Africa. The Chemical Cluster is involved in making polymers, solvents, olefins and surfactants and other chemicals.
South African Energy Cluster
The South African Energy Cluster, under its Sasol Mining operations, mine approximately 41,5 million tons (Mt) of coal per year, mostly for gasification feedstock and utilities coal for its complexes in Secunda and Sasolburg, in South Africa, and export approximately 2,9 Mt of coal annually. Sasol Mining accounted for 1% of its total external segmental turnover in 2014. The Cluster’s gas operation, under Sasol Gas, distributes and markets Mozambican-produced natural gas and Secunda-produced methane-rich gas to customers in the Gauteng, Mpumalanga, KwaZulu-Natal, Free State and North-West provinces of South Africa. Sasol Gas also has a 50% interest in Republic of Mozambique Pipeline Investments Company (Pty) Ltd (Rompco), a company which owns, operates and maintains the 865 km cross-border pipeline that transmits natural gas from the Temane central processing facility in Mozambique to the gas network in South Africa. Sasol Gas accounted for 2% of its total external segmental turnover in 2014. The Cluster through is Sasol Synfules operation, operate the coal-based synfuels manufacturing facility at Secunda. It produces synthesis gas through coal gasification and natural gas reforming, using its technology to convert synthesis gas into synthetic fuel components, chemical feedstock and pipeline gas. The Cluster sells fuel components and heavy fuel oils to Sasol Oil, and methane-rich gas to Sasol Gas. Chemical feedstocks are sold to the chemical divisions of Sasol. Sasol Synfuels accounted for less than 1% of its total external segmental turnover in 2014. The Cluster’s Sasol Oil operations markets fuels blended at Secunda and fuels refined through its 63.64% interest in the Sasolburg Natref refinery. It also market lubricants blended at Engen, Sasol Oil and the Agip (ESA) facility in Durban, in which it owns a 40% stake. Products include petrol, diesel, jet fuel, illuminating paraffin, liquid petroleum gas (LPG), fuel oils, bitumen, motor and industrial lubricants and sulphur. The Cluster has 293 Sasol branded service stations, including seven Sasol branded integrated energy centres, and 87 Exel branded service stations in South Africa. Fuel is exported by way of third parties to several Southern African Development Community (SADC) countries. Sasol Oil accounted for 40% of its total external segmental turnover in 2014. The Other segment includes capitalized costs associated with a pre-feasibility study for the expansion of its synthetic fuels capacity in South Africa. Based on the reprioritization of the Cluster’s capital projects, it has decided to put this project on hold.
International Energy Cluster
The International Energy Cluster consists of Sasol Synfuels International (SSI) and Sasol Petroleum International (SPI). The SSI develops, implements and manages international business ventures based on Sasol's GTL technology, marketing and support subsidiary. SSI primarily focuses on securing opportunities to advance Sasol's GTL strategy. SSI is currently involved in two GTL production facilities in Qatar and Nigeria, and is in front end engineering and design (FEED) for the US GTL project and extended FEED in Uzbekistan. SSI accounted for less than 1% of its total external segmental turnover in 2014. The SPI manages the group's natural oil and gas exploration and production interests in West and Southern Africa, Canada and Australia. It operates production facilities in Mozambique, and has non-operating interests in producing assets in Canada and Gabon. SPI accounted for 1% of its total external segmental turnover in 2014.
The Cluster’s polymer operations under, Sasol Polymers, operate plants at Sasolburg and Secunda in South Africa and supply ethylene, propylene, polyethylene, polypropylene, polyvinyl chloride, chlor-alkali chemicals and mining reagents to domestic and international customers. It also has joint venture monomer and polymer interests in Malaysia and marketing facilities in China. Sasol Polymers accounted for 10% of its total external segmental turnover in 2014. The Cluster’s Sasol Solvents operate plants in South Africa and supply a diverse range of solvents (ketones and alcohols), acrylates and associated products. The Company has a maleic anhydride investment in joint venture with Huntsman Corporation, in Germany. Sasol Solvents accounted for 8% of its total external segmental turnover in 2014. The Cluster’s Sasol Olefins & Surfactants operate plants in Germany, Italy, the US, the Slovak Republic and China and supply surfactants, linear alkylbenzene, surfactant intermediates, n-paraffins, n-olefins, C6-C22 alcohols, co-monomers, ethylene and other organic intermediates to customers around the world as well as specialty aluminas, silica aluminas and hydrotalcites. Sasol Olefins & Surfactants accounted for 28% of its total external segmental turnover in 2014. The Cluster’s Other chemical businesses are involved in a number of other activities in the chemicals industry, both in South Africa and internationally, which, among others, include production and marketing of other chemical products, like waxes, fertilisers and mining explosive products. These activities accounted for 10% of its total external segmental turnover in 2014.
The Company competes with ExxonMobil, Shell Chemicals, BP Chemicals, Chevron Phillips, Ineos, the Dow Chemical Company, Celanese, Eastman, Sabic Innovative Plastics, Lanxess, Nippon Steel Chemicals, Rutgers Chemicals, Deza, Honshu Chemical, Konan Chemical, Atul Chemicals, Mitsui Chemicals and C-Chem.
1 Sturdee Avenue, Rosebank
Company Web Links
- UPDATE 2-S.Africa's Sasol looks to gas as oil price languishes
- CORRECTED-South Africa's Sasol says FY earnings fall, impacted by low oil prices
- UPDATE 2-Lower currency, higher sales volumes to prop up Sasol's 2015 earnings
- South Africa's Sasol flags lower FY earnings on softer oil price
- Exxon, Eni, Sasol bid for Mozambique's unexplored fossil fuel bounty