Sasol is in negotiations with the Malaysian fuel company, Petronas, regarding a joint venture. If successful, it would create the biggest liquid fuels business in South Africa.

Sasol is in negotiations with the Malaysian fuel company, Petronas, regarding a joint venture. If successful, it would create the biggest liquid fuels business in South Africa.

After recently concluding a black empowerment deal with fuel retailer Exel, Sasol now seems intent to acquire Engen's petrol stations, analysts told at the weekend.


The deal would boost Sasol's presence in the fuel retailing sector to about a third of the market, allowing it to grow substantially in the service station arena without the need to build more petrol stations or to acquire them.

The deal between Sasol and Engen might also involve a refinery and marketing partnership agreement. According to a article, Petronas would remain supporting the country through investment if the deal is finalised.

Both Sasol and Engen have extensive investments in liquid fuels in South Africa. The Engen refinery in Durban has a capacity of about 150 000 barrels of oil a day and Sasol's Natref refinery in Gauteng has a capacity of about 100 000 barrels.

Sasol is also capable of producing 150 000 barrels a day of synfuels from its coal-to-fuel operations.

Engen possesses a sturdy 28 percent share of the retail market while Sasol's refining operations supply 40 per cent of the local market, primarily in Gauteng. The deal would boost Sasol's presence in the fuel retailing sector to about third in the market.

With the introduction of the new energy charter at the end of last year, Sasol was able to move into the arena of retailing. And with the partnership established between Sasol and Exel, the duo are already planning to have 300 service stations running by the end of 2004. Exel owns just under 200 of its own service stations.

The acquisition of Engen's refining and petrol station interests would cost Sasol about R6,3 billion.

Original article from Car