SASOL IN CANADA better together we deliver

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SASOL IN CANADA better together we deliver
SASOL IN CANADA
better together…
we deliver
SASOL IN CANADA better together we deliver
ABOUT SASOL
Headquartered in Johannesburg, South Africa,
Sasol is an international integrated energy and
chemical company that harnesses its proven
alternative fuel technology to provide
sustainable energy solutions to the world.
By combining the talent of its people and its
technological advantage, Sasol has been a
pioneer in innovation for over six decades.
SASOL IN CANADA better together we deliver
Better together… we deliver.

ENERGY                                                CHEMICALS
Sasol is active in global oil and gas                 Sasol is a world leader in the
exploration and production. Sasol’s                   commercial production of liquid
energy business focuses on the                        fuels and chemicals from coal and
manufacturing, refining and marketing                 natural gas. Sasol markets a range of
of automotive and industrial fuels.                   products in more than 100 countries.

Products                                              Products
• Gasoline                • Liquefied petroleum gas   • Polymers         • Waxes
• Diesel                  • Pipeline gas              • Solvents         • Ammonia fertilizers
• Jet fuel                • Naphtha                   • Surfactants      • Explosives
• Fuel oil                • Lubricants                • Aluminas         • Phenolics
• Illuminating paraffin   • Greases
SASOL IN CANADA better together we deliver
Better together… we deliver.                                                                             Sasol in Canada – Better together… we deliver.                         Our Global Presence

                                                                                                                                                          In North America
                                                                                                                                                          in particular, Sasol
                                                                                                                                                          is well-positioned

OUR GLOBAL PRESENCE
                                                                                                                                                          to capitalize on low
                                                                                                                                                          feedstock prices to meet
                                                                                                                                                          demand for high quality
                                                                                                                                                          fuels and chemicals.
While remaining committed to its home-base of South Africa, Sasol is
expanding internationally. Sasol’s focus is creating value sustainably
and we are proud to take this company to new frontiers.
Sasol mines coal in South Africa and produces natural gas and condensate in Mozambique, oil in
Gabon, shale gas in Canada.

In a world seeking energy security and cleaner energy alternatives, Sasol benefits national economies
by enabling in-country conversion of resources into valued-added liquid fuels and chemicals.

In North America in particular, Sasol is well-positioned to capitalize on low feedstock prices to meet
demand for high quality fuels and chemicals.

                                                                                                                                                                                                 5
SASOL IN CANADA better together we deliver
Better together… we deliver.

                                                                                                      Our Shared Values

            OUR VISION AND VALUES
                                                                                                      Our shared values define what we stand for as an organization
                                                                                                      and establish expectations about how employees of Sasol
                                                                                                      work with and treat each other, our customers, shareholders,
                                                                                                      suppliers, partners and the communities we serve.
            Our Common Vision
            To grow profitably, sustainably and inclusively, while delivering value to stakeholders   Sasol has six shared values:
            through technology and the talent of our people in the energy and chemical markets        • Safety                         • Accountability
            in Southern Africa and worldwide.                                                           We are committed to zero         We take ownership of our
                                                                                                        harm and all that we do,         behaviour and responsibility
            Our Common Objective                                                                        we do safely.                    to perform both individually
                                                                                                                                         and in teams.
            To be strong and sustainably profitable, we have to know what we are working              • People
            towards and what is expected of us as individuals, as teams and as an organization.         We create a caring,         •    Stakeholder focus
            We are better together, one team – One Sasol.                                               engaged and enabled work         We serve our stakeholders
                                                                                                        environment that recognizes      through quality products,
                                                                                                        both individual and team         service solutions and
            Our Common Goal                             Our Definition of Victory                       contributions in pursuit of      value creation.
                                                                                                        high performance.           •    Excellence in all we do
            To make Sasol a great company               To grow shareholder value sustainably.
            that delivers long-term value to                                                          • Integrity                        We deliver what we
            its shareholders and employees,                                                             We act consistently on a set     promise and add value
            a company that has a positive                                                               of values, ethical standards     beyond expectations.
            association for all stakeholders.                                                           and principles.
SASOL IN CANADA better together we deliver
Better together… we deliver.

CANADIAN NATURAL GAS ASSETS                                                                                                                           Sasol’s Canada shale gas assets:
Sasol Canada holds a 50 per cent working interest in two natural gas                                                                  Cypress A       • Partnership with Progress Energy
                                                                                                                                                      • 112,000 net acres of land
assets in the Montney shale basin in northeast British Columbia.                                                                                      • 20 tcf of resource potential
In partnership with Progress Energy, the Montney assets consist of 112,000 acres of land
                                                                                                                                                      • All year access and
with approximately 20 trillion cubic feet of resource potential. Further to the initial $2 billion                                                      excellent infrastructure
acquisition investment in the Farrell Creek and Cypress A assets, Sasol will continue to invest                            British                    • Opportunities to expand into
annually in developing the resource to increase production and provide feedstock opportunities                             Columbia                     liquids-rich development areas
for future downstream aspirations.                                                                                                                    • Upstream assets allow for robust
                                                                                                                                      Farrell Creek     integrated economics for GTL and
In recent years, significant advancements have been made in the exploitation of natural gas from
                                                                                                                                                        chemicals in North America
shale formations. The rapid increase in shale gas reserves and production has been described as a
game changer for the entire North American natural gas business and the Montney basin is one of
the most competitive plays on the continent.

                                                                                                     Sasol/Progress Land        Montney Basin
SASOL IN CANADA better together we deliver
Responsible Operations
                                                                                      Progress Energy is Sasol’s partner and the operator of the Farrell Creek
                                                                                      and Cypress A shale gas assets in the Montney. Sasol supports Progress
                                                                                      Energy’s responsible environmental stewardship practices.
                                                 Sasol’s Canada shale gas assets:
                                 Cypress A       • Partnership with Progress Energy   The practice of fracking is strictly regulated by the Canadian authorities
                                                 • 112,000 net acres of land          and Progress Energy was a leader and an active participant in the
                                                                                      development of the Canadian Association of Petroleum Producers
                                                 • 20 tcf of resource potential
                                                                                      Hydraulic Fracturing Principles.
                                                 • All year access and
                                                   excellent infrastructure
                                                 • Opportunities to expand into
                                                                                      CAPP’s Guiding Principles for Hydraulic Fracturing
                      British
                      Columbia                     liquids-rich development areas     1. We will safeguard the quality and quantity of regional surface and
                                                 • Upstream assets allow for robust      groundwater resources, through sound wellbore construction
                                                   integrated economics for GTL and      practices, sourcing fresh water alternatives where appropriate, and
                                 Farrell Creek                                           recycling water for reuse as much as practical.
                                                   chemicals in North America
                                                                                      2. We will measure and disclose water use with the goal of continuing to
                                                                                         reduce our effect on the environment.
                                                                                      3. We will support the development of fracturing fluid additives with the
                                                                                         least environmental risks.
                                                                                      4. We will support the disclosure of fracturing fluid additives.
                                                                                      5. We will continue to advance, collaborate on and communicate
                                                                                         technologies and best practices that reduce the potential
Sasol/Progress Land        Montney Basin                                                 environmental risks of hydraulic fracturing.
SASOL IN CANADA better together we deliver
Better together… we deliver.

FAST FACTS
                                                           UPSTREAM AND
Natural gas is plentiful and is                            DOWNSTREAM INTEGRATION
considered to be the cleanest and                          Sasol’s stake in the Montney demonstrates our long-term
most efficient of the three major                          commitment in Canada and supports our downstream aspirations
fossil fuels:                                              for North America.

• It emits 40% less carbon dioxide than coal               The shale gas boom in North America presents a viable growth opportunity for Sasol. With the
  for the same energy produced                             de-linking of oil and gas prices and the abundance of natural gas at relatively low prices in the
                                                           region, Sasol is well positioned to convert the low-priced gas into high-value transport fuels.
• It is more fleixble and cleaner burning than coal
                                                           Our gas-to-liquids (GTL) value proposition benefits from increased gas volumes at a discount
• It can be used in conjunction with a renewable source,   to an equivalent oil price and our chemical growth aspirations benefit from the availability of
  such as wind or sola power, to provide a constant        advantaged ethane feedstock.
  supply to the grid
                                                           International growth of GTL technology is a cornerstone of Sasol’s strategic agenda. In addition
                                                           to its facility currently operating in Qatar, Sasol is progressing GTL projects in Nigeria, the
                                                           United States, Canada and Uzbekistan.
Better together… we deliver.                                                                                                       Better together… we deliver.
                                                                                                    Better together… we deliver.

UPSTREAM AND
DOWNSTREAM INTEGRATION
Sasol’s stake in the Montney demonstrates our long-term
commitment in Canada and supports our downstream aspirations
for North America.
The shale gas boom in North America presents a viable growth opportunity for Sasol. With the
de-linking of oil and gas prices and the abundance of natural gas at relatively low prices in the
region, Sasol is well positioned to convert the low-priced gas into high-value transport fuels.

Our gas-to-liquids (GTL) value proposition benefits from increased gas volumes at a discount
to an equivalent oil price and our chemical growth aspirations benefit from the availability of
advantaged ethane feedstock.

International growth of GTL technology is a cornerstone of Sasol’s strategic agenda. In addition
to its facility currently operating in Qatar, Sasol is progressing GTL projects in Nigeria, the
United States, Canada and Uzbekistan.
GAS-TO-LIQUIDS
(GTL) TECHNOLOGY
Gas-to-Liquids (GTL) technology is a proven
alternative solution with potential to convert
Canada’s clean, abundant natural gas resources
into high-quality, high-value energy and
chemical products in a cost-efficient and
environmentally conscious way. With more than
60 years of experience, Sasol is a world leader in
GTL technology.
Better together… we deliver.

                                   Natural gas reforming
GTL Production                                                                                      • Through a catalytic chemical process, hydrogen and
                                   • Syn-gas for the GTL production process can be produced
Process                              from natural gas through various technologies that               carbon monoxide – under heat and pressure and with the
                                     require mostly steam and air or oxygen.                          aid of cobalt or iron-based catalysts – to yield
Natural gas is a predominantly                                                                        linear hydrocarbons, oxygenated hydrocarbons and
                                   • During the reforming process, the hydrocarbon molecules          reaction water.
methane mixture of                   in the natural gas are broken down and stripped of their
hydrocarbons and other gases.        hydrogen atoms.                                                • Hydrocarbons from the slurry phase synthesis reactor are
In the GTL production process,                                                                        cooled successively to produce liquid products that are
raw natural gas is purified        • The carbon atoms together with oxygen (introduced                recovered for final processing.
to remove primarily sulphur          as steam, air, or concentrated oxygen) form carbon
and other unsaturated low            monoxyde molecules.
level contaminants. The GTL        • The resulting gas, called synthesis gas or syn-gas, consists
                                                                                                    Product upgrade
conversion process then consists     of hydrogen, carbon monoxide and carbon dioxide. It is         • The liquid hydrocarbon products require mild
of three main steps.                 then ready for Sasol’s Proprietary Conversion Process.           hydroprocessing, normally a combination of hydrotreating
                                                                                                      and hydrocorrection to convert the higher molecular
• Natural gas reforming                                                                               weight molecules to naphtha, diesel and liquefied
                                   Sasol’s proprietary conversion process
• Sasol’s proprietary                                                                                 petroleum gas (LPG).
  conversion process               • The syn-gas is sent to a slurry phase synthesis reactor.
                                                                                                    • Due to the combination of these unique petrochemical
• Product upgrade                  • The temperature, pressure and catalyst (cobalt or iron)          processes, the resulting diesel contains virtually no
                                     determine whether a light or waxy synfuel is produced.           aromatics and sulphur and burns more clearly than
                                                                                                      petroleum derived fuels.
Better together… we deliver.

Our GTL technology
The Sasol process entails three steps:

• Reforming natural gas with oxygen
  and steam over a nickel catalyst to
  produce syngas.
• Converting syngas into long-chain
  waxy hydrocarbons in a Sasol Slurry
  Phase Distillate™ Fischer-Tropsch
  (FT) reactor.
• Selectively cracking the waxy
  hydrocarbons to produce GTL diesel,
  GTL kerosene, GTL naphtha and LPG.
Better together… we deliver.

CANADA GTL PROJECT
A gas-to-liquids (GTL) facility is the first
choice for monetizing Canada’s natural                              FAST FACTS
gas resources, launching a new industry
for Canada and creating local employment                            The Canada GTL Project will benefit the local economy
                                                                    both during construction and once fully operational.
opportunities.
                                                                    Construction
Sasol has evaluated the opportunity to build Canada’s first         • Will contribute $11.6 billion to Alberta’s GDP.
GTL facility in Alberta’s Industrial Heartland, an area that is     • Onsite workforce will average 1,500 persons, peaking
becoming a globally significant hydrocarbon processing hub.           to approximately 3,000 in 2019 and 2023.
Sasol is excited about the opportunity to bring GTL technology
                                                                    Operational
to a dynamic business community with a highly educated and
capable local workforce.                                            • Will contribute $550 million annually to Alberta’s GDP.
                                                                    • 890 full-time high-skill jobs when fully operational.
In its first phase, the GTL facility would likely use 500 million
                                                                    Taxes
cubic feet of natural gas to create 48,000 barrels per day
(nominal capacity) of diesel, naphtha and liquefied petroleum       • $49 million annually in municipal taxes.
gas. A possible second phase of development would double            • $5.48 billion in provincial taxes during life of the Project.
the total daily production capacity.                                • $8.23 billion in federal taxes during life of the Project.
Better together… we deliver.                                                                                                                                                                              Better together… we deliver.

GTL BENEFITS AND
                                                                                                                                                                                               A
                                                                                                            Clean, High-Quality Transportation Fuel
                                                                                                            The liquid fuels produced through Sasol’s GTL process are high-performance,

THE ENVIRONMENT                                                                                             low-emission products. Capable of use in existing diesel engines independently
                                                                                                            or as a premium blend stock, GTL diesel can achieve particulate reduction of up
                                                                                                            to 40%, delivering significant air quality advantages.
Sasol is committed to eliminating or minimizing any negative impacts of                                     • GTL diesel is superior in quality to conventional refinery diesel
our operations and products on the environment.                                                               produced from crude oil.
                                                                                                            • GTL fuel’s high-performance properties enable the development and use of         B
                                                                                                              advanced exhaust systems and engines.
GTL Facility Environmental Assessment
                                                                                                            • GTL diesel has a high cetane number, which results in cleaner, more
Sophisticated Life Cycle Assessment (LCA) techniques have shown that the greenhouse gas (GHG)                 complete combustion and improves cold start properties and reduces
impact of a gas-to-liquids (GTL) facility is equivalent to that of a modern, efficient petroleum refinery     noise and engine wear.
using best available technology. The majority of production scenarios studied indicate a neutral to
                                                                                                            • GTL diesel is virtually free of sulphur and aromatic compounds.
positive GHG performance for GTL.
                                                                                                            • GTL diesel meets the world’s most stringent air quality standards.
Due to its high energy demand, a GTL plant is a point-source GHG emitter, but this is offset by the         • Unlike oil refining, GTL diesel is produced without heavy residual fuel
environmental benefits of its products. GTL technology is in an early stage of development and the            and petroleum coke.
GHG emissions may improve as the technology matures. Compared to refineries, GTL emissions are                                                                                                 A. GTL diesel
concentrated in only a few sources and there is potential to significantly reduce the GHG profile of the    • Similar beneficial characteristics are shared by the other higher cetane fuels
                                                                                                                                                                                               B. The oil from a Toyota fueled by
GTL production phase by capturing the carbon dioxide-rich stream.                                             derived from the GTL process.                                                       GTL diesel (left) compared to
                                                                                                                                                                                                  the oil from a Toyota running on
                                                                                                                                                                                                  normal diesel (right)
Better together… we deliver.                                                                                                 Better together… we deliver.

COMMUNITY
Our community affairs program seeks to promote people-centred,
needs-driven sustainable development of communities.
Our key priorities are focused on the following five areas:            Our community engagement principles are centred on:

• Education with the emphasis on improving school-based                • Community involvement and ownership
  education in science, technology and literacy; facilitating access   • Strengthening community leadership
  to higher education; enabling quality higher education; and
  developing critical and scarce work skills.                          • Targeted impacts-driven interventions
• Job creation, focusing on the sustainable creation                   • Addressing key community priorities
  of employment.                                                       • Strategic research informed interventions
• Health and welfare, with a priority emphasis on addressing           • Monitoring and evaluation
  key social challenges.
                                                                       • Building capacity through partnership
• Arts, culture and sport development with a focus on local
  talent development.
• Environment, by pro-actively engaging communities to reduce
  their impact on the natural environment.

                                                                                                                                                     22
As global energy consumption
continues to grow, traditional energy
sources will need to be used more
efficiently and alternative fuels must
be further developed. Sasol believes
North America will be a key player
in shaping the future of the global
energy landscape and its investments
in Canada are of strategic long-term
importance to the company.
www.sasol.com l www.sasolcanada.com
Headquartered in Johannesburg, South Africa, Sasol has
operations in 37 countries and employs 34,000 people.
Sasol’s shares are listed on the Dow Jones Sustainability
World Index (DJSI), New York Stock Exchange (NYSE:SSL)
and the Johannesburg Stock Exchange (JSE:SOL).
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