South African Sasol rules out LNG as possible feedstock for its operations

South Africa's synthetic fuels and chemicals producer, Sasol, has ruled out replacing natural gas with liquefied natural gas (LNG) as its feedstock in its bid to cut its carbon footprint.

News24 wrote on February 24 that although the country's second biggest emitter after state-owned power utility, Eskom, has dropped LNG as a possible alternative, it remains committed to greening its business.

Sasol gets natural gas from its fields in neighbouring Mozambique, and moves it along an 865km pipeline to South Africa for processing into diesel, petrol, liquid petroleum gas, kerosene and ammonia among other products.

It has, however, been criticised for its heavy emissions, hence its quest for a cleaner feedstock.  Also, Sasol's fields in Mozambique are set to get depleted around 2034.

"To be clear, we have not changed what we are aiming for [to reduce its greenhouse emissions by 30% by 2030], but we have optimised how we are going to get there, making sure we protect value along the way while remaining compliant with air quality legislation," Sasol CEO, Simon Baloyi told News24.

The company, listed on the NYSE and Johannesburg Stock Exchange, pledged to implement other emission reduction measures such as energy efficiency, boosting renewables usage beyond 1,200 megawatts, incorporation of biodiesel and carbon offset deals.

Meanwhile, according to News24, Sasol's revenues dropped by 10% in the half year to December 2024 as a result of a 13% decline in the average crude oil price and a 5% decline in sales volumes amid lower output and demand.  Its headline earnings slid 30%.