first quarter 2013 · includes plants in houston, texas and oil city, pennsylvania. the merisol...

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first quarter 2013 projects update community meetings habitat for humanity partnership product spotlight sasol volunteers at big brothers big sisters bowl for kids’ sake

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Page 1: first quarter 2013 · includes plants in Houston, Texas and Oil City, Pennsylvania. The Merisol Company, previously a joint venture established in 1997 between Sasol and Merichem,

first quarter 2013

projects updatecommunity meetingshabitat for humanity partnershipproduct spotlight

sasol volunteers at big brothers big sisters bowl for kids’ sake

Page 2: first quarter 2013 · includes plants in Houston, Texas and Oil City, Pennsylvania. The Merisol Company, previously a joint venture established in 1997 between Sasol and Merichem,

projects updateBelow are frequently asked questions and answers about Sasol’s projects.

Q. What does LCCP stand for?A. LCCP stands for Lake Charles Chemical Projects. These set of projects have also been called the Ethane Cracker Projects or the Lake Charles Cracker Projects. However, it has been determined that these projects, which include seven units are much broader than one ethane cracker and as such the project is now being referred to as the Lake Charles Chemical Projects.

Q. What happens during the front-end engineering anddesign phase of Sasol projects?A. Front-end engineering and design (FEED) is when the engineering work is undertaken to further define the project scope, schedule and cost. During FEED, the company must also provide details related to the business case, the financing strategy and the project execution strategy. Following the completion of this phase of the project, the information will be provided to the board of directions and a Final Investment Decision (FID) will be made.

Q. Where in the planning stages are the GTL and LCCP projects?A. FEED is progressing well. Sasol has commenced with the ordering of the long-lead items for the LCCP and the land required for both the Chemicals and GTL facilities has been purchased or contracted to purchase. Sasol is assessing ways in which to manage and mitigate potential risks associated with the execution of two such megaprojects. The FEED process will also consider the further phasing of the two projects.

Q. When does Sasol anticipate making a final investmentdecision?A. A final investment decision is typically made toward the end of FEED. It is currently envisioned that FEED for the LCCP will be completed in 2014. The investment decision for GTL will follow 18 to 24 months thereafter.

Q: What activities are currently taking place in thecommunity to support these FEED activities?A: While the majority of work for the engineering is taking place in Houston, there is a good bit of activity in Southwest Louisiana as well. Recently we had a low-flying helicopter in the area getting data to determine land elevations and other topographical information. Surveyors will soon begin gathering information to determine what the best routes will be to bring heavy equipment and vessels into the new facility. As the projects progress, there will be more activity and more interactions with the community.

Q: What is Sasol doing to keep the lines of communicationsopen with area residents?A: Our Community Advisory Panel has been studying the projects in numerous meetings over the past year. The panel is a group of interested citizens from Westlake, Mossville, Sulphur and Lake Charles who meet with management monthly to discuss issues of mutual interest. In addition to discussing the projects with the panel members to keep them informed, the panel has been working with Sasol to suggest additional communications activities. Those activities include community meetings, newsletters, phone calls, website updates, jobs fairs, advertising, block walks and more. We will be reaching out to our employees, service providers and neighbors throughout the duration of the project to keep everyone informed.

Q: What is the GO group and how are they working tocoordinate the projects in Southwest Louisiana?A: GO stands for Growth & Opportunity. The GO group includeselected representatives from the Calcasieu Parish Police Jury, the school board and cities in the parish. It is supported by economic development entities’ and the companies who are bringing these mega projects to Southwest Louisiana - including Sasol. This group is working to coordinate the impacts from all the projects and to coordinate the governing entitie’s responses to these impacts. The group has 10 sub-committees addressing issues such as housing, transportation, infrastructure, small business and education. We’ll be hearing more about the GO group as the committees complete their formation and start to work.

Q: What is Sasol doing with everything left on the propertiesthat it has purchased for the projects?A: Although Sasol has bought many properties with buildings and equipment, the company is only interested in the land. Therefore, Sasol has encouraged the owners to remove everything of value from the property before the company assumes ownership. In some cases, items of value have remained on the land and in those cases, Sasol works with Habitat for Humanity to salvage the materials and use them to support their efforts to provide housing for those in need. More information about this partnership with Habitat is provided in this newsletter.

Q: When will hiring begin for the projects?A: Hiring has already begun for the engineering phase. Please check our website at www.sasolnorthamerica.com - click on the “Career Opportunities” link for open positions. Also, if you’re interested in a future position with Sasol, please follow the directions and “create a profile” in our system. Most of the positions currently being filled are for the FEED work. However, in 2014 the construction will begin and many of those positions will be filled through the employment office and with contract companies. Be sure to keep your application up to date with the Calcasieu Business and Career Solution Center at 2424 Third Street in Lake Charles.

Q. What is the status of the ECHO Project?A: The project is progressing well. ECHO is the project nameused for the construction of the tetramerization process, which will be called the “co-monomers” unit upon completion. Thirty-six new jobs have been created at the facility to support the operations of this new unit. Training is currently ongoing for the new operations staff. Many thanks to the hundreds of construction and Sasol personnel who have worked on this first-of-a-kind process, which is expected to start up toward the end of this calendar year.

A large vessel is being transported on Houston River Road for the ECHO project currently under construction.

Page 3: first quarter 2013 · includes plants in Houston, Texas and Oil City, Pennsylvania. The Merisol Company, previously a joint venture established in 1997 between Sasol and Merichem,

As part of Sasol’s property purchase activities to support the proposed new facilities, the company has acquired a number of houses, sheds, equipment and home building materials. Although landowners have been encouraged to remove all items of value from the purchased properties, some have remained. To ensure

best use of these items, Sasol has partnered with Habitat for Humanity to salvage materials which they can sell to the public at reduced prices through their Restore Store located at 3551 Avenue C in Lake Charles. Habitat has even been able to sell shrubs and other vegetation through this partnership. To help with this salvage effort, Habitat needs volunteers. If you can help, please contact Tony Miller with Habitat at 337-496-8698.

sasol continues growth in the USIn addition to the large projects planned in the United States, Sasol has also recently expanded its presence through acquisitions.

This past December, Sasol acquired full share ownership of Merisol, which includes plants in Houston, Texas and Oil City, Pennsylvania. The Merisol Company, previously a joint venture

established in 1997 between Sasol and Merichem, is now a full subsidiary of the Sasol group. Merisol products are used as starting materials in a wide array of chemical intermediates and finished products including Resins, Wire Enamel Solvents and Antioxidants.

On March 1, Sasol purchased a Fischer-Tropsch Pilot Plant in Tulsa Oklahoma from Syntroleum Corporation. The facility had been leased to Sasol since 2008. This two-barrel per day pilot scale facility converts natural gas into liquid products utilizing a Fischer-Tropsch conversion process. The pilot plant will support Sasol’s Research and Development activities as well as providing for additional training opportunities. Millennium park

Sasol management meets monthly with community members from the area to discuss issues of mutual interest. This forum is called the Sasol Community Advisory Panel (CAP). For the past six months, meetings of the CAP have focused on topics related to the Sasol’s proposed projects. In March, the group discussed communications plans and offered numerous suggestions to management to enhance our outreach efforts.

Community meetings will soon be scheduled for our near neighbors in the Mossville and Westlake communities. These meetings will be open to the public and will provide opportunities for dialogue. The first set of meetings is expected to take place during the third calendar quarter of this year with more to follow. Notices of these meetings will be made through the local media and by mail to our neighbors.

In addition to Sasol sponsored meetings, fairs and events, we will continue to participate in community meetings and activities to which we are invited. If your group would like to request a presentation, please call our community information line at 337-494-5301.

upcoming community meetings

millennium parkSasol and its employees were proud to support construction of the new Millennium Park, which recently reopened in Lake Charles in time for Spring break. As a major sponsor of the park, Sasol was invite to participate in the grand opening and ribbon cutting on March 23. Kathy Pettit represented Sasol at the open ceremonies.Millennium Park is a premier playground destination in Southwest Louisiana. It includes a water play area, picnic area, covered pavilion, sand pit, secure fencing and local-themed playground structures such as the “Cajun Cabin,” a “Pirate Ship,” and “Hazel the Steamer.”Many thanks to all the Sasol Volunteers who helped build the park. It is sure to be enjoyed for many generations to come.

Page 4: first quarter 2013 · includes plants in Houston, Texas and Oil City, Pennsylvania. The Merisol Company, previously a joint venture established in 1997 between Sasol and Merichem,

partner in education updatesWestlakeVolunteers are needed to join our Lunch Buddy Program through Big Brothers Big Sisters! Be a Lunch Buddy to a student at one of our Partner in Education schools, either Western Heights or Westwood. Volunteers meet twice a month with their Lunch Buddy during the student’s lunch hour for the duration of one school year. If you are interested in joining or want to learn more about the program, contact Tracy Cudd for Western Heights or Carla Meyer for Westwood. Kids who feel better about themselves do better in school, so share a smile and a laugh over lunch and be a part of something big!

HoustonAs part of our partnership with Emerson Elementary, the group is planning a tour of LCCC. Please contact Mark Volz for more information.

Please submit comments - or story suggestions to Nancy Tower or Crystal Briscoe c/o Sasol, 2201 Old Spanish Trail, Westlake, LA 70669 or call (337) 494-5811.

• Agriculture chemicals• Aluminum Rolling• Building and Construction• Chemical feedstock• Cholorparffins

• Household Pesticides• Lubricants• Metal Processing• Oil Field Chemicals• Textile Industry

product spotlightThe LCCC Normal Paraffin Unit manufactures LINPAR®1416V Paraffin. Sasol n-paraffin products are known for low toxicity and high purity.

Consumers insist on LINPAR®1416V Paraffin in applications where low odor and water white appearance are critical. LINPAR®1416V conforms to Kosher and FDA guidelines for indirect food contact. Casual consumers come across LINPAR®1416V Paraffin as liquid candles at their favorite restaurants. Other LINPAR®1416V Paraffin market niches include:

united wayThanks to all of the Sasol employees for contributing to United Way. Sasol was recently recognized at the annual United Way banquet and received the following awards: Corporate Cornerstone, President’s Award and Taking the Lead in Leadership Giving.

Steve Hookanson (SHEQ– LCCC) and Nancy Tower (HR – LCCC) present a donation to Denise Durel, the president/CEO of United Way of SWLA.

sasol receives silver award recognitionSasol was recognized as the Silver Award winner in Business Facilities’ 2012 Economic Development Deal of the Year competition due to our recent projects announcement. Projects nominated for this distinction submitted an Economic Impact Analysis for the project and a narrative detailing how the project came together. The judging panel, including industry experts and leading site selection consultants, evaluated creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.