MONETISING AFRICA'S GAS - Presentation by Senior Vice President: Energy - Thabiet Booley - Africa Oil & Power
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MONETISING AFRICA’S GAS
Presentation by Senior Vice President: Energy – Thabiet Booley
Africa Oil and Power Conference
October 2019
Forward-looking statements
Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts
of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business
strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth,
increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous
Improvement (CI) initiative and business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”,
“endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements, 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 risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks
materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a
number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in
such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other
filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking
statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements
apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new
information, future events or otherwise.
2
2
Agenda
1 Sasol Overview
2 Fundamentals of the gas industry and options to monetise gas
3 Lessons from the Southern African sub regional gas industry
4 Concluding remarks – what next for Southern Africa for gas
3
3
Sasol at a glance
Pioneered gas monetisation in Southern Africa in collaboration with the Mozambican and South African government
An integrated chemicals and energy One of the world’s largest producers of A proudly South African company,
company synthetic fuels expanding internationally
In excess of 7 million tons of petrochemical
Monetised Mozambican gas through
products sold per annum to more than
development of a regional gas market
8 000 customers across 130 countries
Turnover Operating profit Market capitalisation Listed on the Johannesburg
Stock Exchange (JSE) and the New York
R181,5 billion* R30,5 billion* R313 billion*
Stock Exchange (NYSE)
* Financial year ended 30 June 2018
4
4
Our global presence
We have exploration, development, marketing and sales operations in 31 countries around the world
Map is an indication of Sasol’s global
presence as at 31 December 2018
5
5
One of the key fundamentals of the industry is scale
Complex logistics and
transportation
Low energy density, simple
molecule
Cleanest hydrocarbon fuel
Processing require significant
capital
Scale of resource is key to overcome the fundamental obstacles to gas monetisation
6
6
The development of gas resources needs to be considered in the context of the
value chain
UPSTREAM Natural gas discovery (associated or non associated)
GAS TRANSPORTATION / MIDSTREAM Scale / distance
dependent
PIPELINE AND/ LNG
OR
GAS CONSUMPTION / DOWNSTREAM
Industrial Commercial Residential
• Gas to Power • Transportation • Heating
• Gas to Chemicals • Spatial heating • Cooking
• Gas to Liquids • Cooking
Gas consumption sectors should deliver scale and economic benefit to overcome monetization challenges
7
7
The success story - Pande and Temane fields developed due to the collaboration
between Sasol and the Governments of Mozambique and South Africa
Pande and Temane - Mozambique
34°15'0"E 34°30'0"E 34°45'0"E 35°0'0"E 35°15'0"E 35°30'0"E
Mozambique South Africa
>300%
¯
Legend
ª Wells
Growth
21°0'0"S
Fields_JUN2018
ENH
21°0'0"S
PPA
NS-1
ª PT5_C_EPCC_Block_MAR2018
PPA consumption
MAM-1
ª Royalty gas to Maputo
ENH: Vilanculos reticulation
2015:
21°15'0"S
ªPN-1ª
P-10
6 MGJ/a
P-19
Sasol
21°15'0"S
MUD-1
ª ª
P-20
ª
ªª P-26 ª P-14 ª ª
P-5
AD-1
ª
P-12
ª ª P-9ª P-6P-21
P-16 P-8
ª ª ªª ª
P-4
ª P-22ª P-1 ª P-7
P-17 ª
ª
Pande Secunda
P-2ª
ªP-11 GN-2
ª
ª ª ª
LAM-1
ª P-3
ª
P-24
ª P-13
ª Royalty 2004:
COR-1
ª
gas
The Southern Africa sub region has had a number of gas discoveries
around South Africa
15°0'0"E 16°0'0"E
21°0'0"E 22°0'0"E
¯ ¯
34°0'0"S
34°0'0"S
Block 2714B Block 2715B B
B Wells_SEPT2019 George
28°0'0"S
28°0'0"S
Legend
1000
Block 9 (Mossel Bay
B B
Bathymetry
B Wells_SEPT2019
Contract_Blocks Valid_Contract_Blocks_Wgs84_MAR2015
Kudu field - Namibia Block 2814A Fields_SEPT2019
Field Reservoirs_SEPT2019
GTL) – South Africa SOUTH AFRICA
Mossel Bay
B
2814/07 2ST1 2814/07 2 Block 2814A
B
B
100
NAMIBIA B
Kudu 2
B
Kudu III B
B Kudu 3 Kudu 8 B
B
B B B B
Kudu 7 Kudu
B F-E Prospect Area
B
Kudu 4 B B
B
Kudu 5 B INDIAN OCEAN
Blocks 2815, 2915
E-P Prospect Area
B E-AG 1 F-AH (Mossel Bay)
B
B E-AG Prospect Area B B B B
E-M Mining Lease BB B B B
B B B B B B B B F-A Mining Lease B B
BB B B B E-S (SCG) B
E-C 1 B BB BB E-H B B B B
B BB
B BB F-AR (Mossel Bay) B B
B E-BF Mining Lease B E-E 1 F-AR (Mossel Bay) BB B B
Discovered
B E-M
2815/15 1 BB F-BE
Discovered in
E-BF B
B B E-W Prospect Area B B BB
B B
BB BB B
35°0'0"S
35°0'0"S
B BB
E-W 1
F-AD (Mossel Bay) B
B
B
B B
B B BB B
B B
F-A (Mossel Bay) B
A-O 1 B B
B B 200
F-O (Ikhwezi)
B
in 1974
Block 2814A E-CN Prospect Area
1980
B E-BA (SCG) B B E-CA (SCG) B
29°0'0"S
29°0'0"S
B B B
E-AA/2 Prospect Area BB B B B
Sable/E-CE Gas B
B South Coast Gas/1 E-BH 1 B B
B B
B B B B
E-CE Mining lease B B B Oryx E-AA (SCG) B South Coast Gas/2 B B
B B
B B BB BBB B B F-O Mining Lease
BBB B B B
BB B B B B B
E-AD (SCG)
(1st discovery)
B B B B B
B Oribi B BB B E-AO 2
E-CC Prospect Area E-BB (SCG)
B B
B
B B B B
B E-AA/1 Prospect Area
B
500
B E-G 1 E-CR 1
1 to 1,5 Tcf
B B B
B B E-CB Prospect Area BB
B E-AJ 1
B B B
B 0
B E-BK 1
100
0
9954 10 B
E-CB 1
E-BL 1
B
A-F 1
B B
B E-D 1 B
recoverable
B
SOUTH AFRICA
Two main
NAMIBIA BW B B
B B
E-DQ 1 (Boomslang) B 0
B B B 200
B E-DS 1 B
Block 1 E-DC Prospect Area B
B
B
B
F-Q Prospect Area Block 11B/12B
fields with
BOTSWANA
20 NAMIBIA
KUDU 0
FIELD SOUTH Cairn (Block 1) 1
AFRICA B
B
Key issues:
Brulpadda 1
B
multiple small
SOUTH AFRICA
B
Blocks 2913A, 2914B 0 5 10 20 30 40 50 B
0 5 10 20 30 40 50
GCS_WGS_1984
WKID: 4326 Authority: EPSG
Kilometers BREDASDORP
discoveries
BASIN FIELDS Kilometers
15°0'0"E 16°0'0"E 21°0'0"E 22°0'0"E
● Dry gas – no value add options
● Complex geology Developed for gas to liquids plant in Mossel Bay,
● Scale appropriate to gas to power, but dependent on electricity leveraging existing FT technology in country
market development in the area
Key issues:
● Declining resource base
9
9
The Rovuma Basin discoveries can potentially provide a
new source of supply to Southern Africa
Discovered in 2011 (1st discovery)
100 tcf + with upside
Multiple LNG train development potential
Key issues:
● Dry gas
● Lack of infrastructure
● Distance to sustainable market
● Scale of capital investment
CHALLENGE:
How can we leverage the Rovuma discovery into the regional
economy to grow the gas industry sustainably?
10
10Concluding remarks
Gas is a low energy molecule which results in:
● Complex logistics and transportation
● Processing require significant capital
There are successful models in Southern Africa from where we can extract key lessons, and cooperation between the private
sector and host governments is a key enabler
● Mozambique – Pande and Temane
● South Africa – Mossel Bay
The Rovuma Basin is a potential source of gas for Southern Africa, but the challenge will be how to leverage the Rovuma
discovery into the regional economy to grow the gas industry sustainably. Key success factors to ensure:
● Cooperation between host governments and private sector
● Linking the resource to an anchor off-take market is critical
● Involving players with technical capability and experience in managing gas value chains
● Involving players with ability to raise capital
Sasol is committed to work collaboratively with all stakeholders to sustainably grow the gas industry in Southern Africa
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11THANK YOU Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without Sasol Limited’s written permission. Any unauthorised reproduction of this work will constitute a copyright infringement and render the doer liable under both civil and criminal law. Sasol is a registered trademark.
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