ROMPCO Announces R1.1 Billion Gas Compression Station Project

sasol_ceo

JOHANNESBURG, South Africa, .Sasol
(JSE: SOL ; NYSE:   SSL) iGas and Compania Mozambicana de Gasoduto, as joint
partners in the Republic of Mozambique Pipeline Investment Company
(ROMPCO), today announced construction of a R1.1 billion gas compression
station to facilitate a 20% expansion of natural gas delivery from
Mozambique to South Africa by the end of 2009.

The gas compression station will be based at Komatipoort in South
Africa and will increase gas delivery capacity from a current 120 million
gigajoules a year to about 147 million gigajoules a year. Construction will
commence by mid 2008.

Two gas-turbine driven compressor units and ancillary equipment will be
used at Komatipoort to increase gas flow rates in ROMPCO’s 865 km long
transborder pipeline that transports the natural gas from the Pande and
Temane gasfield in Mozambique to Sasol’s operations at Secunda and
Sasolburg in South Africa.

The engineering, procurement and construction management contract has
been awarded to Foster Wheeler South Africa (Pty) Ltd.

The pipeline forms part of the US1.2 billion Natural Gas venture,
inaugurated by former President Joachim Chissano of Mozambique and
President Thabo Mbeki of South Africa on 1 June 2004. It is designed to
have a capacity to transport 240 million gigajoules of gas a year.

The ROMPCO shareholding partners are the South African government
through iGas (25%); the Mozambican government though Compania Mozambicana
de Gasoduto (25%); and Sasol Gas (50%).

The project will provide short-term employment for about 450 people of
whom about 150 will be skilled artisans and 300 local workers. Preference
will be given to local and South African suppliers as far as equipment and
material sourcing is concerned.

The additional gas will be used as part of the first phase of a planned
20% expansion of Sasol Synfuel’s capacity at Secunda over the next eight
years.

Three quarters of the eventual additional Synfuels capacity will use
natural gas as feedstock with its more benign effects on the environment
and the balance will be based on fine coal reserves.

Some of the first phase additional gas is earmarked for the gas turbine
driven electricity generators recently ordered by Sasol Synfuels in
Secunda. Commissioning of both the pipeline compressor station as well as
the gas turbines is expected by late 2009.

Sasol is an integrated oil and gas company with substantial chemical
interests. Based in South Africa and operating worldwide, Sasol is listed
on the NYSE and JSE stock exchanges. We are the leading provider of liquid
fuels in South Africa and a major international producer of chemicals.
Sasol uses proprietary Fischer-Tropsch technologies for the commercial
production of synthetic fuels and chemicals from low-grade coal and natural
gas. We manufacture more than 200 fuel and chemical products that are sold
worldwide. In South Africa we also operate coal mines to provide feedstock
for our synthetic fuels plants. Sasol operates the only inland crude oil
refinery in South Africa. The group produces crude oil in offshore Gabon,
supplies Mozambican natural gas to end-user customers and petrochemical
plants in South Africa, and with partners involved in gas-to-liquids fuel
joint ventures in Qatar and Nigeria. Internet address: http://www.sasol.com
source: Sasol

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