Sasol Ltd. is opposing a authorized bid by South Africa’s state-owned logistics firm to claw again virtually 816 million rand ($44 million) in oil pipeline tariffs, including to different circumstances towards the gas and chemical maker that threaten its greatest operations.
The corporate mentioned final week in its earnings presentation that South Africa’s “unsure regulatory setting” is one in all Sasol’s persistent near-term challenges.
Within the newest dispute, Transnet SOC Ltd. is suing Sasol and TotalEnergies SE for companies associated to the usage of its pipeline to move crude oil to their collectively owned Natref refinery in Sasolburg within the Free State province from the port metropolis of Durban, in line with a replica of court docket paperwork seen by Bloomberg.
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The newest developments within the case had been first reported by Enterprise Day newspaper. Disputes over the price of utilizing the road have been ongoing for a decade, with South Africa’s highest court docket ruling on it final 12 months.
“The matter is presently topic to court docket processes and Transnet will make any detailed statements as soon as these have been concluded,” a Transnet spokesperson mentioned in a response to questions. Along with the funds sought from Sasol, Transnet seeks 462 million rand in pipeline charges from TotalEnergies, which didn’t instantly reply to an emailed request for remark.
The case provides to others towards Sasol that would have greater penalties. The corporate final month failed in its bid to have its Secunda petrochemical advanced, the world’s greatest single-site supply of greenhouse gases in addition to host of different pollution, exempted from limits to be imposed in 2025. It has since appealed the choice.
Emissions Case
The potential lack of its attraction over sulfur dioxide isn’t factored into the 35 billion rand writedown that it took on Secunda in its newest annual outcomes. The corporate is “assured that we are going to get it over the road” and win the case, Sasol Chief Government Officer Fleetwood Grobler mentioned in an Aug. 23 interview. “But when the license is revoked due to that, I imagine that could be a extreme influence after which a phased shutdown would be the outcome.”
Sasol can also be dealing with a criticism for alleged extreme pricing of pure gasoline it produces from fields in Mozambique and transports to its personal operations and personal prospects in South Africa by pipeline. The Competitors Fee in July referred the declare towards the corporate’s gasoline unit to the Competitors Tribunal for prosecution.
“Sasol Gasoline is evaluating and contemplating the referral by the fee, and Sasol Gasoline will sooner or later reply as acceptable,” the corporate mentioned in an emailed response to questions on Monday.
“These issues have fashioned a part of ongoing enterprise for Sasol,” it mentioned of the a number of fits. “We function in a extremely regulated business throughout our worth chain and the authorized processes underway are a mirrored image of our enterprise exercise on this setting.”
