Despite the lower-for-much-longer oil price outlook, integrated chemicals and energy company Sasol is remaining focused on executing growth projects in Southern Africa and North America as part of a dual regional strategy. In presenting 63%-lower earnings attributable to shareholders in the six months to December 31, outgoing Sasol CEO David Constable gave details of Sasol’s expansion in neighbouring Mozambique, where it had obtained Council of Ministers’ approval for a field development plan that would monetise more hydrocarbon resources in support of Southern Africa’s growth objectives. (Also watch attached Creamer Media video). “The Mozambican gas industry is playing an increasingly important role in the regional energy landscape,” Constable said at the company’s latest presentation of financial results, attended by Creamer Media’s Engineering News Online. The production agreement’s $1.4-billion first phase involved an integrated oil, liquefied petroleum gas and gas project next to the company’s existing production agreement area.
Against that background, R2.7-billion was being invested in the Loop Line 2 natural gas pipeline project to increase the capacity of the Mozambique-to-South Africa gas pipeline to 191-billion cubic feet a year from the second half of this year. In South Africa, beneficial operation was expected at the Shondoni coal project in Mpumalanga in the first half of this year and at the R13.6-billion second-phase Sasolburg wax expansion in the first half of 2017. In the United States, $3.7-billion had been invested to date in the ethane cracker and downstream derivatives complex at Lake Charles, where detailed engineering was advanced and underground civil work was nearing completion. To support the company’s response plan to the lower oil price, the decision had been taken to pace the execution of the cracker project, with the proposed schedule extension expected to optimise field efficiency still further and limit the spend rate. A phased commissioning of the cracker was expected in 2018 and full beneficial operation of the smaller derivatives units in 2019. “By optimising cash flows, we’re managing our gearing and credit rating, ensuring continued balance sheet strength, protecting our dividend policy and driving resilient earnings,” said Constable – who will be succeeded by joint CEOs Bongani Nqwababa and Stephen Cornell on July 1. The dual strategy was designed to augment Sasol’s other business activities in Eurasia, Middle East and the rest of Africa. Overall, the company was going all out to ensure that its balance sheet and earnings remained resilient at an oil price of $30/bl.
Already home to leading companies like BMW, Nedbank and SAGE VIP, the multi-billion rand Menlyn Maine green city development in Pretoria is set to get 26,500sqm of new office space in three new buildings from the end of 2015 to the end of 2016.
Menlyn Maine Investments is pioneering the Menlyn Maine development – Africa’s only green city. In the latest tranche of developments to be announced, it will invest R750 million to develop three top-class, green A-grade office buildings.
The trio of quality office buildings will all achieve at least a 4-Star Green Star SA rating from the Green Building Council of South Africa (GBCSA), in line with Menlyn Maine’s exceptional sustainability benchmarks.
Menlyn Maine is South Africa’s first green, mixed-use city. It’s more than a collection of award-winning green buildings in one place; everything between the buildings is designed to be environmentally sustainable too, from sidewalks and streets, to parks and squares. The benefits go beyond a lighter carbon footprint and lower electricity bills, to the enjoyment of a quality experience in a distinguished address of choice for working and – in soon-to-come future phases – shopping, entertainment and living, all designed to promote responsible, healthy lifestyles.
As a partner of the Clinton Climate Initiative, Menlyn Maine is one of 16 green cities being built in various countries, and the only one in Africa.
Its superb location has been a key factor in attracting top business names to Menlyn Maine.
Menlyn Maine is minutes away from the N1 motorway’s Atterbury and Garsfontein interchanges, right off the main arterial of January Masilela Road, and a mere 500 metres from the main entrance of the super-regional Menlyn Park Shopping Centre.
Its bustling location also means it benefits from exceptional transport connections. This includes access to excellent transport links, including three Gautrain bus stops, the new BRT bus system and a taxi terminus. Menlyn Maine is designed to welcome pedestrians. Fewer cars on the roads also mean lower carbon emissions. It is also surrounded by medical facilities, schools, and all the amenities that come with being in the heart of the upmarket, growing Eastern Suburbs of Pretoria.
Already under construction, the landmark 13,500sqm West Tower Office Block is at the heart of Menlyn Maine’s vibrant future retail and entertainment epicentre. This A-grade nine-storey office tower has been designed to create flexible space for corporate headquarters or a bustling multifaceted business environment. Located on the corner of Aramist Avenue and Dallas Road, it will be ready for tenant occupation in September 2016 and offer ample parking at a ratio of 4.5 bays to every 100sqm.
Opposite this iconic tower, The Indus Building will provide 9,500sqm of A-grade office space across five floors, allowing for the flexible subdivision of offices. It is set for completion in late 2016.
Like the other two new buildings it comes with naming rights for a major tenant taking up more than half of each building.
The Orion Building will be developed opposite the 3,200sqm Regus Building, which was completed in June this year. Standing in a prime position at the new gateway to Menlyn Maine from January Masilela Road, The Orion Building mirrors its neighbouring offices. The four-storey building will provide 4,500sqm of environmentally innovative and flexible lettable A-grade offices, suited to either a single or multi-tenant environment. Its development will be demand driven, with completion delivery possible as soon as late 2015.
The benefits of offices in a green city go beyond simple environmental responsibility. It also means smart building design for energy efficiency, recycling, environmentally friendly waste management and roof gardens. All this adds up to less operational costs and more savings over a company’s lease period.
* Henk Boogertman is the main architect and Linda Riley is leasing and investment advisor at Menlyn Maine.