Sasol Announces Final Investment Decision on World-Scale Ethane Cracker and Derivatives Complex in Louisiana

PR58385

JOHANNESBURG, South Africa and LAKE CHARLES, Louisiana, Oct. 28 /PRN=KYODO JBN/ --

    Today, Sasol Limited (JSE: SOL; NYSE: SSL) announced the final approval of

an US$8.1 billion ethane cracker and derivatives complex at its existing site

in Lake Charles, Louisiana.

    "Sasol's decision to move forward with this project is a defining moment in

our company's history, and an important milestone in the execution of our

growth strategy," said David Constable, President and Chief Executive Officer,

Sasol Limited. "Once commissioned, this world-scale petrochemicals complex will

roughly triple our chemical production capacity in the United States, enabling

Sasol to further strengthen its position in a growing global chemicals market.

The U.S. Gulf Coast's robust infrastructure for transporting and storing

abundant, low-cost ethane was a key driver in our decision to invest in

America."

    At the heart of the project is an ethane cracker that will produce 1.5

million tons of ethylene annually, benefitting from significant economies of

scale. The complex also includes six chemical manufacturing plants.

Approximately 90 percent of the cracker's ethylene output will be converted

into a diverse slate of commodity and high-margin specialty chemicals for

markets in which Sasol has a strong position, underpinned by collaborative

customer relationships.

    "In spite of a largely volatile macroeconomic outlook, we are confident

that we will deliver this project successfully, by drawing on our experience of

executing world-scale fuel and chemical facilities, and enlisting the best

employees and industry partners," said Constable. "The Sasol team and our

contractors have strong track records in project management, engineering,

fabrication and construction of similar large-scale petrochemical complexes,

with deep expertise along the U.S. Gulf Coast."

    Sasol has selected Fluor Technip Integrated, a joint venture of two

world-class firms, as the primary engineering, procurement, and construction

management contractor for this project. Sasol's project management team is also

supported by WorleyParsons, who bring with them significant mega-project

experience.

    An additional US$800 million will be invested in infrastructure and utility

improvements, as well as land acquisition, to establish the Lake Charles

location as an integrated, multi-asset site that will enable growth for decades

to come.

    Sasol is well-advanced in raising the funds required for construction and

will utilise a variety of international U.S. dollar-based sources. Site

preparation is underway, and the company expects that the facility will achieve

beneficial operation in 2018.

    "The economic benefits of this project will extend to all of our

shareholders, 67 percent of whom are located in South Africa, and will also

enable us to pursue further growth opportunities in Southern Africa," said

Constable. "In addition, this project will deliver significant benefits to the

State of Louisiana and the United States. More specifically, it will enhance

local investment and job creation in the surrounding communities, while

strengthening downstream manufacturing and increasing exports."

    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 and cost reductions. Words such as "believe",

"anticipate", "expect", "intend", "seek", "will", "plan", "could", "may",

"endeavour" 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 under the Securities Exchange Act of 1934 on Form 20-F filed on 29

September 2014 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.

    About Sasol:

    Committed to excellence in all that we do, Sasol is an international

integrated energy and chemical company that leverages the talent and expertise

of our more than 33 000 people working in 37 countries. We develop and

commercialise technologies, and build and operate world-scale facilities to

produce a range of product streams, including liquid fuels, high-value

chemicals and low-carbon electricity.

    While remaining committed to our home-base of South Africa, Sasol is

expanding internationally based on a unique value proposition.

    Issued by:

    In the United States:

    Russell Johnson, Director, Public Affairs

    Direct telephone +1 (281) 588-3027

    media@us.sasol.com

    In South Africa:

    Alex Anderson, Head | Group Media Relations

    Direct telephone +27 (11) 441 3295; Mobile +27 (0) 71 600 9605;

    alex.anderson@sasol.com

    SOURCE: Sasol Limited