## sasol gas 

Sasol Gas markets and distributes natural gas from Mozambique and methane-rich gas produced by Sasol Synfuels at Secunda. It delivers gas through a 2 118 kilometre pipeline network to approximately 550 industrial and commercial customers in the Gauteng, Free State, Mpumalanga and KwaZulu-Natal Provinces. 

## Facilitating sustainable growth 

Sasol Gas continued to perform well during the year, improving its safety performance and pipeline integrity, while upgrading its assets and investing in employees to facilitate sustainable growth. In line with the Sasol group shared value of continuous improvement, we reduced our cash fixed costs and enhanced customer service. 

Although Sasol Gas’s carbon footprint is small, we believe it is still necessary to reduce our environmental impact. As far as possible, we use car pools when we attend offsite meetings and management recently decided to purchase only diesel-engine vehicles and to phase out petrol vehicles. 

## Complying with all applicable laws 

Sasol Gas is proactively involved in ensuring compliance with applicable legislation. We continue to train our employees in this regard, particularly in those laws and regulations related to piped gas, corporate governance and safety, health and the environment. 

Two other matters which are receiving attention include our own as well as our customers’ compliance with new regulations on the installation and safe use of gas (the so-called pressure 

equipment regulations), and the development of the regulatory framework for future regulated piped gas tariffs and pricing, in conjunction with the National Energy Regulator of South Africa (NERSA). 

Our technical department is advising customers on the first legislative change, while the regulatory pricing framework being developed by NERSA is anticipated to take full effect in South Africa in 2014. 

## Sustaining profi tability 

A tentative upturn in economic activity in the 2010 financial year helped Sasol Gas increase sales to 123,7 million gigajoules (M GJ) from 122,2 M GJ in 2009. Despite lower sales prices, these higher volumes, along with encouraging cost savings, saw Sasol Gas reporting an operating profi t of R2 479 million for 2010 compared with R2 424 million a year earlier. 

## Preparing for expansion 

During the year, we completed the construction of a new compressor station at Komatipoort, close to the South African and Mozambican border. The new station, which increases by around a fi fth the capacity for natural gas deliveries along the 865 kilometre pipeline, achieved beneficial operation shortly after the end of the financial year. This means it is ready 

to deliver 20% more natural gas from Mozambique and will thus ensure a sustainable future supply. This will supply customer needs as the South African economy recovers from recession, Sasol Synfuels’ gas-fired power project is ramped up and fuels production capacity at Secunda is expanded. 

## Renewing our safety focus 

Sasol Gas is pleased to report an improvement in its safety record in the year, with a RCR of 0,38, down from 0,83 in 2009. This was achieved through a revised safety improvement plan and continuous work to increase safety awareness among employees and service providers. Every year, Sasol Gas employees clock up some 2,5 million kilometres travelling along our 2 118 kilometre pipeline network to carry out maintenance and inspection work. Motor vehicle accidents remained a signifi cant contributor to our injury rate, and more will be done to prevent these. 

## Maintaining our assets 

In 2010, we continued with the in-line inspection of our transmission lines in the inland network around Gauteng. The results so far confirm that our pipelines – many of which were installed in the 1970s – are still in excellent condition and remain fit for service under current 

